More job cuts for public service as Government axe keeps swinging
Friday, 7 June 2024
After the public service was rocked by months of proposals and uncertainty, ministries are finally reaching decisions for how they plan to pay for their cost cuts, with final decisions beginning to roll in.
While departments such as Ministry for Primary Industries and the Ministry for Culture and Heritage have made their final call on cost-cutting head counts, a raft of proposals are streaming in post-Budget.
That includes Waka Kotahi, Stats NZ, and the Ministry of Justice ‒ which internal documents show had held or not filled frontline vacancies to meet a staff number cap.
Last week’s Budget confirmed a cut to the public service’s books by the expected $1.5 billion. Some ministries coughed up more, pulling in an additional $1b a year to add to the money pool.
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The Ministry of Justice told staff on Thursday it was proposing to cut 123 jobs. Overall 178 would be disestablished, of which 67 are vacant, and another 55 would be created. That would mean an 11% reduction in the workforce.
The proposal includes disestablishing four frontline administrative roles. Three of those are vacant.
The Post has seen part of the Ministry of Justice’s internal consultation document which states that to try and reach a cap on the number of staff in order to reduce costs, “we have held, or not filled, frontline and back office vacancies over recent months”.
In a media release about the proposal, Secretary for Justice Andrew Kibblewhite said while cost savings had been necessary, it has been “a difficult and uncertain time for staff across the ministry and wider public service”.
He said the reduction was “almost exclusively involving staff carrying out National Office functions”.
That included corporate services, policy, legal and strategy functions and operational support.
Public Service Association national secretary Duane Leo said the changes proposed “will slow decision-making, and bottlenecks will grow as teams consolidate and managers become responsible for more and more”.
Waka Kotahi – New Zealand Transport agency confirmed in May that 109 roles had already been disestablished.
NZTA group general manager (transport services) Caz Jackson confirmed consultation had begun on Thursday with staff in its Te Toki – Transport Services group. The proposal includes disestablishing 106 roles, which includes 54 vacancies. It also includes creating 46 new jobs.
Over at StatsNZ, chief executive Mark Sowden said 84 of the 124 people who applied for voluntary redundancy had been accepted.
“These roles will be disestablished. The majority of these roles were from within technology, operations, commercial and collections, and insights and statistics.”
The Post looked at the proposals, the decisions, the savings and the staff involved in some of the biggest cuts to the public service, as the clock starts ticking for those with jobs on the line.
Timelines are speeding up for agencies, with departments such as the Ministry of Health meeting with staff affected by its proposal next week. All staff will be told of its decision on June 13.
It has proposed disestablishing 271 jobs, and creating 137 new roles. The new structure is expected to be in place in September.
The Ministry of Education has one remaining decision document to be released. As of May 21, it was understood more than 500 roles were confirmed to be disestablished, including more than 200 vacancies. Final decisions are expected to be published in July.
The Ministry of Business, Innovation and Employment has had a number of restructures underway with job cuts proposed.
This year, 346 full time roles have been disestablished within MBIE, which includes 94.6 vacancies, 160 voluntary redundancies, 5 jobs transferred to Regulation Ministry and 87 from government work programmes ending.
It expects the majority of changes to be implemented by July.
The stock-take
Ministry for Primary Industries
Savings target: $63.2m ‒ Actual savings: $75.9m. Extra savings: $41.1m
Proposal: A 9% workforce cut, 384 roles
391 roles (65 where people left or early redundancy, 193 are vacant positions, 133 current positions)
Changes from July 1.
Ministry for the Environment
Savings target: $49.1m – Actual savings: $49.1mm. Extra savings: $44.4m
Consultation until June 26, decisions from July 5 to August 30, implementation to November 1
303 fewer fulltime roles by mid-2025 (ending 150 fixed term contracts by November, 102 current roles, and 45 voluntary redundancies)
Disestablishing about 200 vacant positions
Ministry of Justice
Savings target: $80.8m ‒ Actual savings: $47.8m
178 roles disestablished (67 vacancies, 55 new roles)
11% of national office functions disestablished
Decisions expected August
Oranga Tamariki
Savings target: $95.9m – Actual savings: $79.9m (money stays within organisation)
632 jobs disestablished (70 vacancies, 185 new jobs created)
9% of net workforce reduced
Decisions expected end of June
Ministry of Business, Innovation and Employment
Savings target: $233.9m ‒ Actual savings: $231.5m. Extra savings: $254.2m
MBIE has had a number of restructures underway with job cuts proposed
This year, 346 fulltime roles have been disestablished (94.6 vacancies, 160 voluntary redundancies, 5 jobs transferred to Regulation Ministry, 87 from government work programmes ending).
Majority of changes implemented by July
Ministry of Education
Savings target: $73.6m – Actual savings: $107.2m and $7.2m in tertiary education. Extra savings: $275m (money stays within organisation)
Proposed as of May 2: Reduction of 755 positions (316 vacant). Proposed as of April 17: overall reduction of 565 positions (225 vacant)
As of May 21, it is understood more than 500 roles confirmed to be disestablished, (more than 200 vacant)
One remaining decision document to be released
Decisions published and final numbers expected July
Ministry of Health
Savings target: $12.6m ‒ Actual savings: $12.6m. Extra savings: 37.9m (money retained within health)
271 positions disestablished (137 new jobs created)
Meetings with staff affected on June 11 and 12 on final decisions
Final decisions told to staff 11am, June 13
New organisation structure expected from September 2
Ministry of Social Development
Savings target: $119.4m – Actual savings: $107m. Extra savings: $84.8m
Reduce by 712 roles (218 accepted voluntary redundancy, 70 current roles, 27 vacancies, 56 fixed-term contracts ending in June and 341 roles that went due to attrition, sinking lid and fixed-terms ending since December)
Consultation with staff closes June 11
Manatū Taonga - Ministry for Culture and Heritage
Decided
Savings target: $37.5m. Actual savings: $19.6m
Changes from July 2024 mean a 17.6% reduction since June 2023
35 roles disestablished/fixed-term roles ending (28 are vacancies, and 22 new roles created)