8:43 am today

Union launches legal action against Health NZ to try to halt job cuts

8:43 am today
Composite of an empty hospital bed, the Beehive and a gold coin.

Thousands of jobs are set to be axed at Health NZ. Photo: Unsplash / RNZ

A union representing 25,000 Health NZ workers has launched legal action to try to halt sweeping job cuts at the agency.

The PSA filed proceedings with the Employment Relations Authority against Health NZ, on 12 February, seeking an urgent hearing to try to immediately stop any dismissals.

Thousands of jobs are being axed at the health agency, with many positions already gone or left unfilled.

The legal action focuses on plans to cut about 1100 roles in the data and digital directorate, which would almost half that service, as well as cuts to the National Public Health Service and the Pacific directorate.

The PSA said the plan was rushed, full of inaccuracies and breached collective agreements and other laws.

Acting National Secretary Fleur Fitzsimons said Health NZ had not taken into account the consequences for patient safety in its proposal.

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PSA's Fleur Fitzsimons. Photo: RNZ / Samuel Rillstone

"This litigation aims to stop it in its tracks because the changes are dangerous they impact on all New Zealanders"

Health workers were worried about more than their own jobs, she said.

"They know it will impact on them and their families but they are also deeply worried about the impact it will have on all New Zealanders. This is a radical dismantling of New Zealand's public health system," she said.

Patients lives were at stake, she said.

The PSA's members included mental health nurses, physiotherapists and other allied health workers, public health and policy experts, and administrative staff.

Health NZ interim chief HR officer Fiona McCarthy said the agency was going through a "reset" to strengthen the frontline and provide quality, compassionate and affordable healthcare at the right time and place.

"We started a consultation process with impacted staff in December 2024 and throughout the process we have been focussed on transparency both with our staff and unions."

No decisions had been made on final structures. she said, and the agency was considering staff feedback.

"While we are aware of the action taken by the PSA it would be inappropriate to comment further as this is an ongoing legal matter."

National had campaigned on slashing "back-office expenditure" across 24 public agencies, as part of its "Back Pocket Boost" tax plan. Willis asked public service departments to identify savings options of either 6.5 or 7.5 percent.

At Budget 2024, the government said it had met its baseline savings target of $1.5 billion average operating savings per year.

Public Service Commission workforce statistics showed a 34 percent increase in headcount from June 2017 to June 2024. The workforce had been increasing about 5 percent a year from 2017 to 2022, but growth slowed in the year from June 2023 to 0.7 percent.

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