Unions’ horror at decision to shut down Te Pūkenga

Friday, 8 December 2023

Three years after it’s inception Te Pūkenga has heard it will be disestablished - a decision garnering widespread criticism from the tertiary sector.

Unions have condemned the breaking up of vocational education provider Te Pūkenga as “grossly irresponsible” and “a huge step into the past” which has left the tertiary education sector in the dark.

National president of TIASA Te Hohonga, Shelley Weir, said the ramifications of the “backwards” decision are huge, wasting years of work with no costings, timeframes, or other details.

Te Pūkenga was formed in 2020 to run the country’s 16 polytechs and nine industry training organisations which around 270,000 students attend.

On Thursday, Te Pūkenga staff received a mass email from chief executive Peter Winder, confirming they had received a “letter of expectations” from the Minister for Tertiary Education and Skills, Penny Simmonds.

NZCTU President Richard Wagstaff said Minister for Tertiary Education and Skills Penny Simmonds needs to come up with a plan.

The letter confirmed plans to disestablish the centralised organisation, but noted this would require legislative change and more work would be needed before determining the future configuration of the network.

Weir hoped things wouldn’t return to the “failed former competitive model” which “brought the sector perilously close to collapse”, and was concerned for staff and students left in the dark.

NZCTU President Richard Wagstaff seconded Weir’s concerns and demanded the minister come up with a plan.

“This is another example of the new government’s absence of vision and its disregard for workforce development and workers’ wellbeing,” Wagstaff said.

Minister for Tertiary Education and Skills Penny Simmonds directed Te Pūkenga management to support staff and students “through this next phase”.

Simmonds, previously the chief executive of the Southern Institute of Technology, said Te Pūkenga management was expected to ensure staff and students were “well supported through this next phase”.

The minister said she had asked her officials for advice on ensuring financial stability, restoring regional decision making, and any other changes needed to compliment the disestablishment.

It has been a year of uncertainty for Te Pūkenga staff, with many impacted by a restructure in which 200 fulltime roles are set to be cut.

An Auckland staff member, speaking on condition of anonymity, said she “just can't see how they will get out of this” and has no clue what is next for her job.

“The whole sector is ruined”, the woman said.

Chris Hipkins said reverting to the previous model of individual polytechnics was not viablie financially.

She felt Te Pūkenga should have paused the restructure and she wanted to see accountability for progress to date.

A South Island-based staff member also speaking anonymously said their team had expected to learn the fate of their jobs in April but many were now unclear if this was the case.

The person said staff at the “stagnating” organisation had experienced “ongoing” uncertainty, but hoped the minister’s previous success in the sector would lead to 'more sensible decision making“.

Former Education Minister Chris Hipkins who oversaw Te Pūkenga's establishment said the decision was 'disappointing'.

Te Pūkenga has been beset with financial problems and resignations since it’s inception.

Vocational education was changing, with more learning on the job, he said, adding the previous model of 16 polytechnics across the country was not 'financially viable'.

Labour tertiary education spokesperson Deborah Russell said the disestablishment was “short sighted” and questioned the motivation behind the move.

“Ms Simmond’s plan needs to have a thorough cost benefit analysis applied to it. She needs to let us know the benefits of pulling apart Te Pūkenga.”

Te Pūkenga has been beset with financial problems‒ reporting an $80 million deficit last year‒ and high profile senior resignations, with five executive members leaving less than two years into their roles.

The Press contacted Otago Polytechnic, Ara Institute of Canterbury, and Tai Poutini Polytechnic for comment but was directed to Te Pūkenga in each instance.

Te Pūkenga said as a Crown Entity it was obliged to implement Government policy outlined in the minister’s Letter of Expectations, which stated a centralised organisation was no longer a priority.

“Under this direction, Te Pūkenga has halted all work on the implementation of an organizational structure supporting a nationwide network,” the organisation’s chief executive Peter Winder said.

“This morning, we advised all kaimahi (staff) this work will not be proceeding with our immediate focus on supporting them to understand what the change in direction means for them.”