ACC proposing 9% cut to its total workforce

ACC is proposing to cut more than 300 roles as part of costsaving measures. It is proposing a reduction of 390 roles, of which 81 are vacant, in areas that sit outside the clientfacing teams.

This equates to a proposed 9% reduction of its total workforce.

‘‘We’re also proposing to invest in 65 new roles that support the delivery of our services to New Zealanders, and our board has also endorsed a plan to reinvest some of the proposed savings in approximately 250 additional clientfacing roles. The exact nature of these roles is yet to be finalised,’’ ACC chief executive Megan Main said.

That would bring the net total of roles lost to 325.

‘‘We recognise that times of uncertainty and change can be difficult, and we have several support pathways available to our people through our Employee Assistance Programme and wellbeing resources. We’re working as hard as we can to provide certainty for all our people as soon as possible,’’ Ms Main said.

The organisation was not given a specific savings target from the government, but was asked to ‘‘deliver material savings’’, so decided to cut operational costs by 6.5% over the next financial year.

While its funding comes from levies and earnings from its Investment Fund, that is still public money and the organisation must play its part to make savings, Ms Main told RNZ last month.

‘‘Our objective isn’t just to save money, we want to make sure we are directing our efforts towards working smarter to help our kiritaki [clients] get better faster,’’ she said.

‘‘We also want to ensure we can invest in the things that will have the greatest impact for the scheme and for New Zealand.’’

It was focusing on becoming more efficient by removing duplication, limiting expenditure and stopping work that was not closely connected to improving client outcomes, she said. Clientfacing teams were not affected, she said.

‘‘We are committed to ensuring this process does not negatively impact our ability to deliver our core services of injury prevention and supporting people if they’ve had an accident.’’ An ACC employee has told RNZ the announcement was delivered via an email, including a 90page document and a prerecorded video from Ms Main.

That was ‘‘cowardly’’, they said.

‘‘We knew it was coming but [it] has been delivered as an email as opposed to a talkthrough from the senior leadership team,’’ they said.

The Public Service Association said it was alarmed by the cuts — which included 29 roles dedicated to injury prevention — at a time when the number and cost of injuries was rising.

‘‘This is an absolutely vital area dealing with workplace safety, prevention of sexual violence, and road safety,’’ PSA assistant secretary Fleur Fitzsimons said.

Ms Fitzsimons said it made no sense to cut so many jobs when the organisation was already under so much pressure to look after those who were injured.

An ACC spokesperson contacted by the Otago Daily Times said they were unable to provide a regional breakdown of proposed structural changes until final decisions had been made and an Expression of Interest process completed. As of May 1, ACC had 754 Dunedinbased fulltime staff.

Final decisions would be announced on June 26 with the new structure proposed to be in place on September 9. — RNZ