Source: PSA
The PSA has settled litigation over the planned restructure of two key teams at Health NZ with an agreement to significantly amend planned cuts to roles and structures.
The settlement relates to proposed restructures of the Data and Digital and Pacific Health teams at Health New Zealand Te Whatu Ora which were subject to litigation before the Employment Relations Authority set down for 22 April 2025.
“We’re pleased the PSA’s legal action has resulted in a reversal of the some of the planned deep and damaging cuts, but we remain concerned that the cuts across the health system have already gone too far and too wide,” said Fleur Fitzsimons, National Secretary for the Public Service Association for Te Pūkenga Here Tikanga Mahi.
“This is ultimately all about patient care. Both teams play critical roles in ensuring the health system delivers for patients and communities and supports clinicians to do their job, so it was important changes were made.
“But it shouldn’t have taken legal action for Health NZ Te Whatu Ora to listen to what health workers were telling it about the risks to patient care and community health.”
Data and Digital staff ensure clinicians can access patient records 24/7, maintain ageing legacy systems, and are integrating new nationwide IT systems. Health NZ had been planning to almost halve the workforce including not filling hundreds of vacant roles.
“Our legal action has resulted in 175 roles being added back into these teams and for contractor roles to be available to employees and could mean that no staff are forced to be made redundant. This is positive as these people have skills our health system desperately needs.
“We reached a settlement because Health NZ was shedding too many highly skilled IT workers through early exit allowed under the restructure. We had to stop the bleed as these workers were critical to ensuring patient care was not put at risk from IT systems failing.
“While the settlement is welcome, the PSA is disappointed the Privacy Commissioner has refused to investigate cuts to Data and Digital given the risks to sensitive patient information and our concerns remain.”
For Pacific Health, a smaller reduction in the full-time workforce has been agreed with a net 22 roles going compared to 50 in the original proposal though many of the people affected will have priority for similar roles within Heath New Zealand. This is not ideal, but the unions feedback was taken on board including retaining regional partnerships and protecting some crucial administration roles. In addition, some workers, previously facing redundancy, will be redeployed elsewhere in the health system so they can carry on their important work.
“Today’s settlement underscores the value of a union taking on an employer which is following the Government’s direction to cut the health system regardless of the consequences.
“There are still other teams that are subject to restructuring – Health NZ is still under instruction from the Government to cut spending and the PSA is seeking legal advice about filing litigation against these proposals too.
“These constant cuts are not a recipe for a health system that properly delivers the timely and effective health care New Zealanders expect and the PSA will be strongly resisting all further cuts.”
Background on litigation
The PSA filed legal proceedings in the Employment Relations Authority in February because several proposed restructures breached the Code of Good Faith for the public health sector, the Employment Relations Act 2000, collective agreements and Te Mauri o Rongo – NZ Health Charter.
Last month the PSA agreed a settlement with Health NZ stopping the restructuring of the National Public Health Service and two directorates in the Planning Funding and Outcomes business unit – Data and Analytics and Community Mental Health Funding and Investment
Litigation remains in place for two other business units of Planning Funding and Outcomes – Procurement and Supply Chain and Systems Improvement and Innovation.
