Significant number of jobs on the line at ACC

A significant number of jobs are understood to be on the line at ACC.
A significant number of jobs are understood to be on the line at ACC. Photo credit: RNZ

ACC is proposing to cut nearly 400 roles as part of cost saving measures.

It is proposing a reduction of 390 roles, of which 81 are vacant, in areas that sit outside the client-facing teams.

This equates to a proposed 9 percent reduction of its total workforce.

"We're also proposing to invest in 65 new roles that support the delivery of our services to New Zealanders, and our Board has also endorsed a plan to reinvest some of the proposed savings in approximately 250 additional client-facing roles. The exact nature of these roles is yet to be finalised," said ACC chief executive Megan Main.

The organisation was not given a specific savings target from the government, but was asked to "deliver material savings", so decided to cut operational costs by 6.5 percent over the next financial year.

While its funding comes from levies and earnings from its Investment Fund, that is still public money and the organisation must play its part to make savings, chief executive Megan Main told RNZ last month.

"Our objective isn't just to save money, we want to make sure we are directing our efforts towards working smarter to help our kiritaki (clients) get better faster," she said.

"We also want to ensure we can invest in the things that will have the greatest impact for the Scheme and for New Zealand."

It was focusing on becoming more efficient by removing duplication, limiting expenditure and stopping work that's not closely connected to improving client outcomes, Main said.

Client-facing teams were not affected, she said.

"We are committed to ensuring this process does not negatively impact our ability to deliver our core services of injury prevention and supporting people if they've had an accident."

A public announcement of the proposed cuts is expected at 3pm this afternoon.

DOC Cuts

It comes as the Department of Conservation is proposing to halve its workforce on the Chatham Islands.

DOC has proposed to cut year-round staff on the islands from 11 to five, and merge the office with the Wairarapa district.

DOC deputy director-general regional operations Henry Weston said budget savings were not a factor in the change.

He said staff feedback had indicated the islands' remote location, about 800km east from mainland New Zealand, had created challenges which were having a negative impact on their wellbeing.

But the Public Service Association said the proposal risked impacting front-line conservation efforts.

The proposal is out for consultation with staff, with a final decision due by the end of the month.

RNZ