Immediate past-president of the New Zealand Institute of Medical Laboratory Science Terry Taylor said it was in the worst state he had seen in a career of over 30 years, and it needed government intervention.
Apex union members employed by Awanui Labs — the health system’s Southern service provider — will cut back on services from today until December 24.
Mr Taylor estimated an overall 25% reduction, which would be enough to cause pressure without disrupting urgent work.
"No overtime is a big one with the current staff shortages across the South Island labs.
"Unfortunately it will cause disruption to GPs and primary care the most.
"[Staff] don't want to have to do this but think about those lab workers who most certainly won't have anything under their Christmas trees this year."
Union members have been pushing for better pay and conditions through various strike actions since July, when workers picketed in response to the offer of a 5% pay rise across the board.
Mr Taylor said it was a "national and political disgrace" the lowest paid frontline registered health practitioners had yet to receive a settlement, while others in the medical field had received significant pay increases. .
Without a fully resourced, funded and staffed pathology sector working behind the scenes of the health sector, efforts to improve diagnosis wait times would change very little.
Data needed to plan for a better future was lacking.
He did not know how many diagnostic tests were carried out each week, or how many staff there were, or what the entire national cost for diagnostic pathology was.
"The problem is all diagnostic laboratory stakeholders hold this information but there is no national body with the oversight of the pathology sector to collate and monitor this vital information, and provide the co-ordination to address any shortfalls or identified issues."
An example of a successful shift could be seen in the formation of the New Zealand Blood Service in 1998, he said.
There had been a complete lack of co-ordination beforehand, and now it provided control and direction across the country for transfusion and donor services.
"My challenge to the new coalition government is clear on the rapidly deteriorating situation throughout the pathology sector," Mr Taylor said.
"There needs to be ... an appropriate funding commitment that our other more prominent medical sectors are getting."
Commitment to a national pathology strategy was also needed, and an immediate assessment of capability and capacity.
Lastly, he also called for the government to form a national pathology structure.
Minister of Health Dr Shane Reti said yesterday he greatly appreciated the work of the pathology sector, which was a "crucial cog" of the healthcare system.
He did not say whether he agreed the sector was in a bad state, or whether the new government would commit to the suggested changes.
"I am expecting advice from officials on my health priorities, including issues currently affecting the funded care sector.
"The ongoing dispute between Awanui Labs and their workers, however, is a matter for the employer and workers’ representatives to address."
Awanui Labs has previously told the ODT that while business in the private sector should be profitable, it was there to meet healthcare needs, and high inflation was a challenge in meeting operational and business costs.