Unions said the proposal 'makes no sense'
The Accident Compensation Commission (ACC) is proposing the reduction of 390 roles, or 10% of its total workforce, in a move slammed by unions in New Zealand.
ACC chief executive Megan Main said the roles to be disestablished are in areas that "sit outside our client-facing teams that work directly with New Zealanders," The New Zealand Herald reported.
Main further clarified that 81 roles are vacant, which reduces the layoffs to 309 roles or nine per cent of its total workforce.
The chief executive said they are working as hard as they can to provide certainty for their people as soon as possible.
"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," she said as quoted by the New Zealand Herald.
Cost-cutting measure
The proposal comes as New Zealand's ministries and agencies are carrying out widespread job cuts as part of the government's cost-cutting measure.
The ACC is not among the agencies asked to cut costs, according to the New Zealand Herald, but Main said the proposal supported the government's measures and sets up ACC for the future.
Also under the proposal is a move to invest in 65 new roles in the ACC, with the agency's board also endorsing a plan to reinvest some of the proposed savings in about 250 client-facing roles.
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"The exact nature of these roles is yet to be finalised," Main said.
Final decisions on the changes are set in June, with the proposed changes to undergo a consultation process first.
Unions condemn job cuts
The Public Service Association (PSA) said the proposal "makes no sense" especially at a time when the country's population is growing.
"This is just more dumb stuff forced on ACC by the government's spending cuts. We will all pay the price for years to come with more accidents, injuries and harm," said Fleur Fitzsimons, Assistant Secretary for the Public Service Association Te Pūkenga Here Tikanga Mahi, Aotearoa, in a statement.
The PSA also slammed the move cut 29 dedicated injury prevention jobs in the proposal.
"This is an absolutely vital area dealing with workplace safety, prevention of sexual violence, and road safety," Fitzsimons said.
"This work is all about ensuring accidents and injuries don't happen in the first place. A government so focused on reducing costs and 'better outcomes' should be investing more in these areas, not less."