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Ministry of Social Development to cut 97 roles, over 700 jobs affected

News • 27th May 2024 • 3 Min Read

Ministry of Social Development to cut 97 roles, over 700 jobs affected

Talent Management#HRTech#Layoffs#HRCommunity

Author: Samriddhi Srivastava Samriddhi Srivastava
943 Reads
The reduction of 97 roles at MSD and significant layoffs at DOC highlight the urgent need for ethical and effective public service management amid financial constraints. As New Zealand faces an ageing population and a slowing economy, robust and well-supported public services are crucial.

The Ministry of Social Development (MSD) in New Zealand is set to propose cutting 97 additional roles, bringing the total job losses within the organization to over 700. This latest proposal is part of a larger restructuring effort, anticipated to affect 330 positions, resulting in a net reduction of 97 roles, according to the Public Service Association (PSA).

The PSA reported that the roles to be cut will come primarily from MSD's Strategy and Insights team and the digital transformation project Te Pae Tawhiti. These cuts add to the previous job losses, which included 218 voluntary redundancies, the termination of 56 fixed-term positions, and a decision not to fill 341 vacant roles, as reported by Stuff.

Duane Leo, National Secretary for the PSA Te Pūkenga Here Tikanga Mahi, has voiced strong concerns about the proposed cuts, highlighting the negative impact they will have on the quality of service MSD provides to New Zealanders. "Right now, need is rising as the economy slows, and as our population grows and ages. This is the time to invest more in systems and workers at MSD, not less," Leo said in a statement.

The proposed reductions particularly target the Strategy and Insights team, which plays a crucial role in evaluating MSD’s performance and ensuring the effective delivery of support services. Leo emphasised the importance of this team in maintaining the quality of MSD's services. "The team is all about ensuring MSD is doing a good job supporting people. We've seen similar cuts elsewhere like Oranga Tamariki and Waka Kotahi, which shows how poorly thought through these cuts are," Leo remarked.

The job cuts at MSD are part of a broader government initiative to reduce costs across various departments and agencies. The Department of Conservation (DOC) is also facing significant reductions, with plans to lay off 124 employees as part of its restructuring strategy. The DOC intends to disestablish 257 roles, of which 114 are currently vacant, and create 133 new positions.

Leo warned that the cuts at DOC would undermine its essential work in protecting New Zealand's natural habitats and conservation estate, which are vital to the country's national identity and tourism industry. "The overall cuts to the Department of Conservation will impact its valuable work as an agency which safeguards our national identity and the conservation estate, the jewel in our tourism crown," he said. He also noted that the layoffs would inevitably increase workloads for the remaining DOC staff.

The proposed cuts at both MSD and DOC highlight a growing concern among public service workers and their unions about the government's cost-cutting measures. These measures have also affected other organizations, including Oranga Tamariki and WorkSafe, raising questions about the long-term impact on public services and the well-being of New Zealand's citizens.

Leo stressed the broader implications for the community, especially Iwi Māori, who act as kaitiaki (guardians) of natural spaces. "These cuts should be a huge concern to New Zealanders who support the protection and preservation of our unique natural habitats. Even more so to Iwi Māori as kaitiaki of our natural spaces," Leo stated.

As the proposed cuts move forward, there will likely be continued debate and discussion among government officials, public service workers, and community leaders. The need for a balanced approach that addresses budgetary constraints while ensuring the effective delivery of essential services remains a critical issue.

The PSA and other unions are expected to advocate strongly against the proposed job cuts, seeking to protect their members' roles and the quality of public services. In the coming weeks, meetings and negotiations will likely intensify as stakeholders attempt to navigate these challenging decisions.

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