1300-plus Govt roles on the line

Ministry warns of more cuts to come in race to save cash

more than 1300 jobs are set to be cut from government departments so far as officials scramble to find $1.5 billion in savings across the public service.

The Ministry of Business, Innovation and Employment (MBIE) has confirmed it alone has removed 286 fulltime equivalent roles (FTEs) in the past few months and has not ruled out more cuts.

The ministry is looking at 7.5 per cent cost savings, in response to a directive from the Government.

The Herald has previously reported that the agency has been looking to cut spending by about $412.5 million.

MBIE had confirmed 111 people were approved for voluntary redundancy in mid-March, with the Herald revealing the ministry had extended its voluntary redundancy timeframe by one week, the day after applications were due to end.

MBIE yesterday said 286 FTEs, including the 111 voluntary redundancies, have been removed from the ministry’s systems in the three months since the end of December.

A statement from MBIE deputy secretary of corporate services, finance and enablement Richard Griffiths said the removal of 87 of these roles was due to stop-work notices, disestablishment and repeal of legislation.

Griffiths said formal change processes were under way “that propose further FTE reductions” in a number of teams, including the Digital Data and Insights Group, Te Whakatairanga Service Delivery Group and the Employment Services and Engagement and Experience branches.

The proposals are subject to a formal consultation process, and the plans are considered “active change processes”.

Following confirmation 111 people were accepted for the ministry’s first voluntary redundancy scheme, MBIE put a second scheme in place.

Not all who applied for voluntary redundancy were approved.

Decisions on the second round of voluntary redundancies are expected next week.

Griffiths added further formal change processes are “likely” as the ministry works to streamline its operations and seeks further efficiencies.

“MBIE is taking a measured approach to workforce reduction across our organisation. Retention of the appropriate levels of specialised skills and capability will enable us to continue to deliver to the scale and breadth of the Government’s work programmes and maintain service delivery to New Zealanders.”

During the election campaign, the Act Party wanted to issue “stop-work notices” to MBIE staff and halve the ministry’s headcount, even conducting a press conference outside the ministry’s Wellington office.

The confirmation of role reductions at MBIE, with more jobs potentially on the line, comes after a big week for public sector agencies, with the looming axe appearing clearer by the day as the clock ticks down to May 30 — Budget Day.

The Herald has previously reported internal communications from the ministry, with its corporate services and finance group told commentary about job cuts can be “unsettling” for workers.

MBIE had earlier been considering roles that were under recruitment and would only replace people who were seen as “business-critical” who leave the ministry.

MBIE’s deputy secretary of building, resources and markets Paul Stocks acknowledged workers had been feeling “tired and also worried” about how workloads will be managed with fewer people.

Earlier this week, cost-saving proposals were announced at the Ministry for the Environment, Callaghan Innovation and Crown researcher Niwa.

Also yesterday, the Department of Conservation (DoC) joined the growing list of public service agencies confirming slashes to spending and potentially showing employees the door.

DoC has been directed to find 6.5 per cent savings from its budget.

In a statement to NZME, DoC confirmed it has been “identifying areas where we could cut back” and is in a consultation process with its people.

“We have tried to find options that would have the least impact overall on people and on conservation outcomes.”

The department confirmed proposals include a reduction of 130 roles overall. The Public Service Association (PSA), a union representing public servants, announced DoC was proposing to slash 270 jobs and create 140 — 101 jobs proposed to be cut are currently vacant.

The PSA suggests DoC needs to find another $7.2m to meet cost pressures.

National secretary Duane Leo suggested the cuts would leave a “damaging legacy for years to come”, as the department could lose experienced people, alongside environmental protection and economic gains from the tourism industry.