Job cuts at Ministry of Health?
The Ministry of Health has confirmed it needs to propose job cuts to meet the Government’s cost saving targets.
Staff were updated on the ministry’s work to find its 6.5% savings, and how it could affect the workforce at a meeting on Friday morning.
A spokesperson said staff were told the ministry would need to propose job losses.
Other, non personnel savings had been found over the past few weeks, as well as removing many vacant roles late last year. There is also a recruitment freeze in place.
“However, these savings are not enough to ensure we meet our expected budget next year and staff were told on Friday the Ministry would need to propose some job losses,” the spokesperson said.
It was too early to signal the size or scale, and no voluntary redundancies had been offered at this stage.
“Work is still under way to determine which work programmes will be affected. There will be robust consultation with staff before any final decisions are made.”
There were 730 Ministry of Health staff in 2023, according to the Public Service Commission.
Stuff reported in February staff were warned to expect cuts to jobs and work programmes. Director-General of Health Diana Sarfati emailed all staff saying she expected the ministry’s budget to be “significantly reduced“next year, referring to the instructions from Treasury to reduce spending by 6.5%.
“This will mean fewer positions in the Ministry and while we will look to remove vacancies first, there are likely to be some job losses,” she wrote.
At the time, asked what he would be looking for in cost savings, Health Minister Shane Reti said, “we're looking for those roles in back office that might not be clearly aligned with the Government’s objectives”.
Savings at the ministry were expected to be filtered through to frontline services at Health NZ – Te Whatu Ora, which runs the country’s hospitals. Health NZ does not have a cost saving target.
“The savings in health will stay in health. How that will be best reprioritised is what we're ... figuring out now.”
Many public service agencies are edging towards job cuts, as cost saving plans are finalised before the May Budget.
Oranga Tamariki chief executive Chappie Te Kani told staff earlier this month further changes were needed to meet its 6.5% savings target – which could include a reduction in staff numbers.
Stuff later revealed Te Kani was having to pay for work flights around the country out of his own pocket, in order to talk to staff in person about cost saving proposals and changes.
Meanwhile, the Ministry of Social Development (MSD), which employs about 9000 people, has turned off the plunger coffee supply, estimating savings of $70,000 a year.
MSD was also considering voluntary redundancies and taking a “careful approach to vacancies”, Nadine Kilmister, deputy chief executive, people and capability, said.
Ministry of Housing and Urban Development staff have been told there may be redundancies over the coming months, and the Department of Internal Affairs confirmed there would be “organisational change” affecting positions and staff.