News

Hundreds More Jobs Set To Go At Health New Zealand

Written by Phil Pennington/RNZ | Dec 12, 2024 12:14:39 AM

Hundreds more jobs are poised to go at Health New Zealand under proposals to be laid out to staff on Friday.

The two units facing the latest cuts are the 1000-strong procurement supply unit and 500-strong planning, funding and outcomes unit.

It is understood Health NZ will propose to disestablish hundreds of jobs in procurement, as well as from within the three parts of planning.

 

"I acknowledge a large number of positions and vacancies are proposed to be removed," chief executive Margie Apa told staff.

Another email on Thursday referred to staff whose jobs would be "significantly impacted".

"We knew this was coming," one staffer told RNZ.

Health NZ told RNZ on Thursday afternoon that it told staff last week about further consultation this week on positions in some of its national level groups.

"This followed conversations with staff and unions and supports our commitment to approach change collaboratively and transparently," it said in a statement.

"We will not be commenting further until we have spoken with potentially impacted staff."

However, it was expected more exact numbers and restructure details will be clearer after the executive meets staff on Friday.

"Our priority has consistently been to approach change collaboratively and with transparency," Apa said in an email last Friday, seen by RNZ.

"There is a lot to be considered, and we are listening to our staff and unions."

Health NZ has embarked on a series of job cuts. Photo: RNZ

Over a thousand data and digital positions already face the chop under an earlier proposal, as well as hundreds in Public Health, Hauora Māori services and Pacific Health.

This comes as Health NZ struggles to rein in a $140m-plus monthly deficit by deploying a mass "reset" designed under Commissioner Lester Levy and Apa.

"I am committed to keeping you up to date as we go through the change required to ensure we live within our budget and move resources and decision making closer to local communities." Apa said.

These proposals would be the last ones issued before Christmas, she said.

A consultation period on Friday's proposals would be open till January 31.

"It is an unsettling time for our staff as we work to reset," Apa said.

HNZ has extended the consult period for the earlier proposed cuts, to January 31 for data and digital, and to January 17 for Hauora Māori and Pacific servies.

A process to invite expressions of interest in clinical leadership roles would not start till after January 13.

The PSA union has been approached for comment.

The cuts are reported to come from a specific unit within the government agency.

The job losses come as Health NZ faces a $1.1 billion loss in the current financial year.

Another restructure unexpected - senior manager

Consultation documents leaked to RNZ show 400 roles are set to go at the National Public Health Service - although staff will be able to re-apply for a smaller number of new jobs being created.

The service, which covers health promotion, screening, immunisation, infectious disease control and other functions, has had its annual budget slashed by $32.5m, to just over $387.2m.

The proposal is to reduce the number of fulltime staff from 1196.1 to 1141.4, a net loss of just under 55.

There are 399 roles in line to be disestablished, a further 482.6 will be "impacted" (with a change of job title, manager or responsibilities) while 277 new roles will be created.

That is set to save $4m per year.

Other savings are to come from:

  • Reducing project spend by $15.6m
  • Reducing non-employee costs by $8.6m
  • Reducing contracted provider spend by approx $7m

Dr Nick Chamberlain Photo: Stuff / Denise Piper

In his message to staff, national director Dr Nick Chamberlain said they had not anticipated another restructuring so soon after the complete redesign of the National Public Health Service in 2023.

"The leadership team and I are very aware that many of you are only just beginning to feel settled in your new structures - and we are still in the process of 730+ new staff joining us from Hospital and Specialist Services, because of the Public Health Nursing and related roles decision.

"However, with this challenge come opportunities and we know we didn't get everything right with our decisions in 2023."

The reset of Health New Zealand was "a very challenging time for us all", he continued.

"But once our organisation is back on track, we need to be ready to build back up and make an even stronger case to rebalance healthcare spending from clinical treatments and interventions to prevention and wellbeing."

In late January and February it will be the turn of seven more teams, including infrastructure, finance and HR, to see the proposals to cut them back.

The finance team has been under huge pressure after the surprise U-turn from a big surplus, to a massive deficit, by Health NZ earlier in they year.

Meanwhile, the infrastructure team already underwent months of restructuring to centralise it, to try to fix longstanding weaknesses with prioritising, planning and delivering big hospital projects, and others critical to the running of regional hospitals, such as to upgrade electrical, fire and medical gas systems.

The other four teams scheduled to receive job-disestablishing proposals issued from late January are communications, risk, government services, and services in the chief executive's office.

Sign up for Ngā Pitopito