Public sector cuts: Hundreds of jobs slashed from Oranga Tamariki, ACC, and MSD as final decisions are made

Final changes are coming into force in the public sector, as job cuts take shape. Photo / Mark Mitchell

A final decision has been made on the number of public sector jobs that will be cut at the Ministry for Children Oranga Tamariki, the Ministry of Social Development, and ACC. .

Oranga Tamariki chief executive Chappie Te Kani confirmed 594 roles will be disestablished and 175 new roles will be created. Oranga Tamariki will see an overall net reduction of 419 roles.

ACC confirmed a reduction of 366 roles, 85 of which are vacant.

Also today, the Ministry of Social Development confirmed it is cutting 86 more jobs - bringing the total number of jobs axed to about 700. MSD originally planned to cut a further 97 roles.

ACC chief executive Megan Main said the agency “took a whole-of-enterprise approach to the proposal, reviewing all non-client facing parts of the organisation to ... remove duplication, limit expenditure, and stop work that isn’t closely connected to improved outcomes for our kiritaki (clients)”.

Main said ACC was investing in about 250 extra frontline rehabilitation roles, with recruitment under way.

ACC said it has also created 66 new roles, separate to this, “that support the delivery of our services to New Zealanders”.

Ministry of Social Development deputy chief executive for people and capability Nadine Kilmister said: “MSD is reducing the size of its workforce to meet its fiscal sustainability commitments and ensure it is managing within its funding baseline. It is doing this through a combination of voluntary redundancies, attrition, fixed-term roles coming to an end, and the current change proposals.”

She said senior leaders went over feedback and considered a range of options before making their final decisions, and spoke with the Public Service Association (PSA) union.

The association has been consulted on the change proposals and decisions at government departments. The PSA said roles being cut at Oranga Tamariki includes those supporting residential and youth justice facilities, and roles in the agency’s Māori, partnerships and communities team.

The final confirmation sees fewer jobs lost at Oranga Tamariki than originally proposed. Under the change proposal at the agency, 632 roles were proposed to be disestablished with 185 created - an overall net loss of 447 roles.

Te Kani said he read “every single piece of feedback” to help form the agency’s final decision.

“As a result of the feedback, I have made a number of changes to the proposal document, with the number of disestablished roles being reduced from 447 to 419.

“These roles come from across the back-office structure of Oranga Tamariki and include a reduction in leadership team positions,” Te Kani said in a statement.

“I know my final decision will not magically fix the issues we face as an organisation. It will not automatically grow trust and confidence between our ministry and New Zealand. It will not be perfect. But change never is,” he said.

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PSA assistant secretary Fleur Fitzsimons suggested the job losses would have an impact on the lives of young people.

“It’s particularly disappointing that specialist Māori roles are still being removed as these people have unique skills working with whānau and are critical to the success of Oranga Tamariki.

“At a time of rising need and increasing pressure on families, the last thing the Government should be doing is making deep cuts to the very agency that supports children and young people,” she said.

Public sector agencies have been undertaking cost-saving exercises, putting thousands of roles on the line across government departments, ministries and agencies.

The children’s ministry is expected to finish its transition to its new structure by September.

ACC expects its final structure to come into force on September 12. Main said the new structure was “not just about savings”.

She added the changes will help the Crown entity’s strategy, improving its rehabilitation performance, and creating investment capacity.

“I am mindful that the new structure means significant change for some of our people. We have several support pathways available and I encourage anyone to access it should they need to at any point,” she said.

The Ministry of Social Development proposed further cuts in late May, a month after confirming that more than 200 voluntary redundancy applications were accepted.

Under the May proposal, MSD expected its headcount to reduce by 712 positions. These proposals have been consulted on and since finalised.

Azaria Howell is a Wellington-based multimedia reporter with an eye across the region. She joined NZME in 2022, and has a keen interest in city council decisions, public service agency reform, and transport.