Public service cuts: Ministry of Health staff to learn jobs fate after Easter

The Ministry of Health is proposing to cut jobs by 25 per cent as part of a government directive to find savings. Photo / Mark Mitchell

Ministry of Health staff will find out after Easter whether their role is facing the chop after leaders decided an announcement between the long weekend and school holidays was the best time to confirm job losses.

In a memo to staff seen by the Herald, director general of health Dr Diana Sarfati acknowledged there was no “good time”, but Tuesday, April 3, was decided as the best time to start informing people whether they’ll still work at the ministry, or not.

All public sector agencies are scrambling to find cost savings of between 6.5 and 7.5 per cent on average, based on growth, ahead of the coalition Government’s first Budget in May.

NZME has previously reported official communications showing job cuts were “likely” at the Ministry of Health.

Yesterday, Transformation Management Office director Geoff Short confirmed aspects of the proposal to media, adding details have not been finalised.

“This is a difficult and unsettling time for Ministry of Health staff,” Short added.

Director general of health Dr Diana Sarfati. Photo / Sylvie Whinray

Widespread consultation is proposed to take place on April 4, the day after meetings with impacted staff. Consultation is set to end on April 26, with feedback collated through the next two months and final decisions announced in June.

Safarti said a clear theme following numerous discussions and briefings was that “the timing of information to staff around the Easter break needed to be considered while also getting this next phase underway as soon as possible. Hence the release of the document the week after Easter.”

She confirmed the ministry had deliberated about holding off on telling staff, but decided not to, as school holidays follow soon after.

“We know people want information as soon as possible, so we have decided not to delay in any way,” the memo said.

A Ministry of Health worker alleges she was told in a Ministry of Health meeting yesterday that 270 positions will “likely be impacted” by the proposals, some of which sit vacant. Workers were not told where those jobs would come from.

The director-general’s memo added the proposal for change would affect “just over a quarter of the ministry’s current vacant and filled positions”.

“In addition to that, there will likely be a further group of positions that are proposed to be subject to minimal change, like a reporting line change or a change to job title. The proposal will also likely create some new positions that would be available for redeployment,” Safarti added.

Hundreds of public servants were told their jobs were at risk yesterday when both the Ministry of Health and the Ministry for Primary Industries announced proposals to cut roles.

MPI is looking to disestablish 384 roles. In a statement, PSA national secretary Duane Leo said about 40 per cent of the roles being targeted at MPI were already vacant, which meant only 218 workers would be potentially affected by the proposed cuts.

The Public Service Association (PSA) says it believes the proposed job cuts at MPI are only the first round of likely further cuts, describing it as a “reckless, irresponsible gamble” by the Government which could put the country’s export earnings at risk.

Both ministries have said any job cuts would be finalised after consultation, through a process of not filling vacancies and redundancies.

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.