Last week, Te Pukenga chief executive Peter Winder announced a forecast $63 million deficit for the mega polytechnic — which will see all the country’s industry training organisations and institutes of technology and polytechnics merged.
Mr Winder has signalled it would need to slash about $35m from its budget for 2023, with $10m in savings from work-based learning and $25m across former polytechnics.
After that announcement, Invercargill MP and National’s Tertiary Education spokeswoman Penny Simmonds — who was SIT’s chief executive for 22 years — said job losses were on the cards at the institution.
"I already know that there’s very little left in the system at SIT, with cost reductions and a freeze on employment already ordered by Te Pukenga earlier this year, leaving staff cuts as the likely option."
Tertiary Education Union (TEU) Otago/Southland organiser Daniel Benson-Guiu said the situation was frustrating for staff as they had been initially promised their roles would be valued and their work would be supported.
Now, days before the merger, they have been told that more cuts were on the horizon and things could change for them, he said.
"It feels like empty promises after empty promises and they continue to sort of . . .[give] false hope around what Te Pukenga represents. The reality being it is actually more of a project cut cost instead of a project to improve the vocational education."
He approached SIT’s executive team to understand the situation, but could not discuss the matter yet, he said.
However, he believed they would reluctant "to get rid of staff" because the numbers were already quite tight there.
"The sentiment at SIT is of anger, frustration but also uncertainty."
SIT acting chief executive Daryl Haggerty said no reviews had been confirmed or initiated as yet and there was no predetermination in terms of the outcomes.
However, he acknowledged that any time a budget revision was requested it created uncertainty for staff. Mr Haggerty guaranteed the institution’s team would be working hard to have the best possible outcomes.
"We will make sure any change is based on sound information and practice, and I am anticipating much of the change will be in non-staffing costs."
TEU will be hosting a stop work meeting on Tuesday at SIT where its 150 members will discuss the matter.
