There were tears of relief - mingled with frustration - among staff at the National Public Health Service today at the news Health NZ had abandoned plans for further job cuts and restructuring.
Health NZ said it had agreed with the Public Service Association (PSA) to stop planned "change proposals" in public health and two divisions of planning and funding after "cost savings were achieved".
In an email to staff, interim chief human resources officer Fiona McCarthy apologised for the "increased level of anxiety" created by the change processes.
"We would also like to acknowledge the time and effort you put into providing feedback on these proposals and wish to assure you that has not gone to waste.
"We have reviewed all your feedback and taken this on board."
Public health staff question the cost of aborted restructure
A senior clinician at the National Public Health Service said staff were "absolutely exhausted" after the dragged out restructuring process, which started more than four months ago.
"[We've had] teams in tears of relief mixed with those of frustration for the immense impact this has taken on them.
"The loss of experienced staff and extra money being spent on payouts and contractors to fill these positions short term is heartbreaking."
Timaru-based health promotion adviser Janet Quigley, a PSA delegate, said the news was a huge relief, but the months of uncertainty had been damaging.
"We had our letters back in November saying our jobs had been disestablished, so it's been a really long, slow process for everybody.
"I work in a small town where the freezing works has closed, and the council has just laid off 50 people, so there's no jobs.
"So, for people who have to look for work and are still in the prime of their lives, it's been really difficult for them."
Some key staff had already left the service, said Quigley, who worked in health for more than 40 years.
"One of our concerns as a union is that our members are going to be asked to take on extra work that was done by people who shouldn't have been let go."
In some cases, people who had accepted voluntary redundancy were then found to be doing essential roles (including health protection), which had to be subsequently recruited to, she said.
Discussion with union 'constructive' - Health NZ
Health NZ and the PSA recently had mediation in response to the union's legal challenge against aspects of the "change proposals" in the Employment Court.
McCarthy told staff while the parties "weren't able to resolve the issues" during mediation, they had continued to have "constructive and collaborative discussions about a way forward".
As a result:
• Health NZ aborts restructuring of the National Public Health Service and two divisions of Planning and Funding Office (Data & Analytics, and Community & Mental Health Services), current structures remain
• PSA has withdrawn legal proceeding relating to those areas - but other actions continue
• Health NZ said since proposals were first put forward, cost savings had been achieved through "operational efficiencies, voluntary redundancy and "early exit processes"
• Vacant positions will be advertised and recruited to "as normal"
Where an individual had agreed to an early exit or requested one but had yet to leave Health NZ and wanted to "reconsider this arrangement", they could contact their boss and such cases would be reviewed "on a case-by-case basis, Health NZ said.
A full hearing was set to take place in the Employment Relations Authority on 22 and 23 April over other proposed restructuring at Pacific, Data and Digital, Planning & Funding and Procurement & Supply Chain - unless Health NZ came to a further agreement with the PSA.
"For all other business functions, we continue to consider feedback and draft decision documents and work through our approval processes. Health NZ can't yet be definitive on when final decisions will be released, however, we hope to provide a further update in early to mid-April.
"We will also be releasing in the next week or so a number of new consultations in People & Culture, Communications & Engagement and Infrastructure & Investment."
In December, then chief executive Margie Apa announced Health NZ would be extending its cost-cutting measures to mid-2027.
At the same time, it revised down its expected deficit for 2024-25 to $1.1 billion, from the $1.7b forecast several months previously.
Health cuts down to funding shortfall - union
The PSA filed legal proceedings last month with the Employment Relations Authority on the grounds that the 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.
PSA National Secretary Fleur Fitzsimons said jobs had been saved as a result of the legal challenge.
"It's appropriate that the restructure has been stopped but critical expertise has been lost, and we need much greater funding for our health system."
