The jobs of 139 health and safety inspectors will be disestablished and staff made to reapply for the positions.
Public Services Association president Brenda Pilott said all the health and safety inspectors at the Ministry of Business, Innovation and Employment were told this week their roles would be disestablished and they would have to reapply for their positions through a rigorous process including psychometric testing.
Ms Pilott said it would result in a shortage of inspectors at the ministry as inspectors were refusing to go through the new selection process and might take redundancy or change jobs.
Labour Minister Simon Bridges declined to comment, saying it was an operational matter.
MBIE deputy chief executive, health and safety group, Lesley Haines said that from July this year there would be 158 new health and safety inspectors roles, created following a restructure.