Public sector cuts: Health NZ considers more redundancies in the lead-up to Christmas

Health New Zealand is setting up meetings with affected staff members. Photo / Mark Mitchell

• Health NZ staff have been called in to meetings to discuss a new proposal to disestablish more roles at the government agency.
• A senior leader has acknowledged the difficult time of year for such news, saying he didn’t feel ‘in the least bit Christmassy’ when he heard his first Christmas song on the radio.
• Health NZ recently approved more than 400 voluntary redundancy applications in a bid to rein in spending.

Further redundancies are on the cards at Health New Zealand, with an internal memo acknowledging how difficult the news is in the lead-up to Christmas through reference to a Bruce Springsteen song.

The memo to staff, seen by the Herald, was sent on Friday. It suggests change for the health agency’s Hauora Māori group with some roles set to go.

The memo states “meetings will be set up with kaimahi proposed to be significantly impacted (roles proposed to be disestablished). These are 1:1 meetings with their SLT [senior leadership team] member.”

A formal consultation is due to take place after an all-staff hui. A consultation document will be published the same day.

The memo also confirms all staff will receive letters confirming how the proposed changes will affect them.

Health NZ has set up what it calls the Te Whatu Ora Central Change Team, to front-foot the proposed cost savings.

A further memo, sent the same day, details the mood at the health agency as the festive season approaches.

Health NZ national director of public health service Dr Nick Chamberlain wrote, “I just heard my first Christmas song of the year on the radio; Bruce Springsteen’s Santa Claus Is Comin’ to Town, and like many of you, I didn’t feel in the least bit Christmassy!

“I know how incredibly difficult the last few months have been and for many, the waiting is probably worse than knowing. I am aware in detail of the impact this is having on many of you and I want to assure you that if I and my leadership team could have done anything to speed this up, we would have,” he told staff.

Chamberlain confirmed the agency had been approved for its “reset proposal” on the National Public Health Service as of Friday last week.

He also applauded staff for attending “all the various kaimahi support sessions” that had been put on.

“With only 33 days until we’re hopefully all relaxing somewhere, we still have to take each day at a time! We remember, too, that for some people Christmas is not always a wonderful day for a range of reasons, so we keep them in mind as we head towards the end of the year,” Chamberlain wrote.

The importance of staff wellbeing has been highlighted throughout the year as public sector agencies cut jobs to save money.

Chamberlain ended the memo with a karakia, roughly translating to “be strong, be brave and determined, stand firm in all situations,” a message he described as “appropriate” for the week.

More than 650 roles have been disestablished at Health NZ this year, with the government department recently approving more than 400 voluntary redundancy applications.

The voluntary redundancy scheme was put in place in August.

Health NZ chief executive Margie Apa said the agency needed to work on being more efficient with a greater focus on frontline healthcare.

In August, Apa warned several initiatives would “not resolve this financial issue”.

Health NZ is aiming to save $1.4 billion, with commissioner Professor Lester Levy at the helm.

Staff have also been informed of an expectation that everyone take annual leave from December 23 to January 12. Contractors are also not required to work during this time.

Health NZ has been contacted for comment.

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.