With thousands of public servants losing their jobs, and with more redundancies looming, people have been left feeling fretful, frustrated and fearful for their future. And workplace morale – what’s that? Sarah Lang takes an in-depth look at the mood in our capital during the ongoing public sector job losses.
Liz*, a 34-year-old who works at an important government ministry, has been dashing into the toilets to cry at least once a day, hoping no one notices. That’s because she will be made redundant in July, alongside more than 300 others at her ministry. “I feel gutted and overwhelmed,” Liz says.
‘It feels like we’re in a game of musical chairs where only the strongest – or the best arse-kissers – will get a seat.’
Going, going gone are thousands of public-servant jobs (we’ll get into the nitty-gritty of the tally later). That’s because Minister of Finance Nicola Willis asked government ministries and departments to cut expenditure by 6.5% or by 7.5% in order to save $1.5 billion annually, in order to help fund the National Party’s ‘Back Pocket Boost’ tax plan.
Liz is gutted. “Devastated, really. I studied hard for an undergraduate degree then a Master’s to train for this job. I love my job, I’m really good at my job and now, wham, my job is gone?”
The news has been a huge blow to her self-esteem. “I used to think I was valued, and now I feel devalued. It’s like, is it just me who thought I was doing important work? Why keep others but not me? It’s hard not to take it personally.”
She’s looking for jobs every day, but finding hardly any advertised. After all, ex- (or soon-to-be-ex) public servants are swamping the market. “And my job is pretty niche so my skills aren’t as transferable as some other people’s.”
Liz has felt anxious every day since she learned about the job cuts, and moreso since she found out her fate. Her eczema has flared up. She hasn’t been sleeping well.
She’ll get six months’ pay from the redundancy, but that won’t last long. “We bought a house a few years ago, and I need to work to help pay the mortgage.” Her husband, who works in retail, can’t pay it on his own. Given he’s working, she’s unlikely to qualify for a benefit.
“So will we need to move to Australia? We can’t afford to retrain. Someone suggested I go to law school but that would take four years with no income!” They’re putting off having children until they have some financial security. “I hope my fertility window doesn’t close in the meantime.”
“I’m actually very angry. The government is doing all this, without seeming to give a shit, to pay for tax cuts for people who are already doing okay. It’s like, hold on, people need tax cuts more than people need jobs? I feel like the government has its priorities upside down. There’s such a big human toll.”
‘Workplace morale’
How are people who are still working – for now – coping in their workplaces? What’s the mood around the watercooler? People offered some adjectives. Silent. Tense. Uneasy. Uncertain. Grim. Disillusioned. Despairing. Rumour-mill. Anxious. Apprehensive. Awks as fuck. “It’s a weird silence, like you can hear a pin drop.” “Everyone’s pretending they’re ok, but they’re clearly not.” “Each person is in at least two of the five stages of grief: denial, anger, bargaining, depression, and acceptance.” “There’s a constant tension and apprehension as we wait to hear who will be made redundant.”
‘…Don’t give the minister advice they won’t like. Don’t challenge the senior leaders.’
45-year-old Jacqui*, a public servant of 20 years, has yet to learn her fate. “It feels like we’re in a game of musical chairs where only the strongest – or the best arse-kissers – will get a seat. People who are usually quiet achievers are in the unnatural position having to ‘self-promote’. People who usually challenge ideas are in the unnatural position of having to push them back down.
“Every visible achievement and every little mistake are high stakes. There isn’t time to get sick, or for your kids to get sick. Union numbers are growing and gallows humour abounds. The solidarity feels precious and fragile. No one knows if it will crack when the me-or-them decisions come. So don’t give the minister advice they won’t like. Don’t challenge the senior leaders. Don’t help your colleagues unless someone important is watching. It’s not safe.”
People Over Profits: The Protests Have Started
On Saturday June 9th, 1000-plus people gathered at Pukeahu National War Memorial Park in Wellington, for a ‘People Over Profits: Stop The Cuts!’ rally led by the PSA, and ActionStation (a crowdfunded, community campaigning organisation). The rally was primarily focused on public-sector job cuts, but also protested government cuts to community services.
People of all ages marched from there to Te Papa, behind a large sign that said ‘Stop The Cuts’. Other signs included: “The public service saves lives”. “Save our services.” “No cuts to public service to give the rich a tax cut.” “People over profits.” “Kindness or cruelty? Stop cuts.”
Speakers fervently addressed the crowd over the loudspeaker, saying: “This protest is symptomatic of immense frustration in our country. The government has things completely backward and everyone here can see it.” “You work in the public service because you care and you want to help make people’s lives better.” “What will happen to the important work you’ve been doing?” “There is stress and emotional stress not just for public servants but for their families.” “Jobs are threatened and lost and there is frustration, anger, grief and sometimes hopelessness.”
The Job Losses: By The Numbers
According to Radio New Zealand, as of 5 June, 5754 public-sector roles had already gone or were set to go, based on statements from the ministries and the Public Services Association (PSA), a union that represents public servants. This doesn’t include contractors who have had their contracts suddenly ended, meaning the total number is likely higher.
The article lists the department and agencies where jobs have gone or are set to go (including vacant roles not being filled); this includes 712 at the Ministry For Social Development, 580 at the Department of Internal Affairs, 447 at Oranga Tamariki, 391 at the Ministry for Primary Industries, 341 at the Ministry of Business, Innovation and Employment, 303 at the Ministry for the Environment, 159 at Kāinga Ora, 124 at the Department of Conservation, and 123 at the Ministry of Health.
RNZ is updating the tally of job losses as they come in, based on statements from the ministries and the PSA. As of Monday 17 June, the tally was 6135. (RNZ notes that not all cuts are the result of government savings requirements – some are projects no longer going ahead under the coalition government, and others are vacancies no longer being filled.)
The office of Nicola Willis, the Minister of Finance, disputes the number of job losses. On 28 May, Willis said the baseline savings exercise would remove 2250 public-sector roles, plus 1150 current vacancies would no longer be filled, plus an additional 500 roles would be removed due to other savings exercises (noting that this is subject to ongoing consultation processes).
That adds up to 3900 jobs. Her office says it assumes that some media outlets have reached their own totals “by including roles removed by savings programmes started under the previous government and in Crown entities like ACC which were not and never have been part of the savings exercise, as just two examples”.
The Budget
The NZ Herald reports that, as announced at Budget 2024, “the Government had a target of finding savings of $1.5b across the public sector, something documents state has been achieved”.
Announcing the Budget, Nicola Willis – Minister of Finance, Minister for Social Investment, and Minister for the Public Service – didn’t rule out further changes to the public sector, as reported by Newshub. Minister for Regulation David Seymour had previously indicated that the number could be up to 7500.
PSA national secretary Duane Leo said this about the Budget. “This is a dark day for public services and the dedicated public service workers who do so much to support communities and businesses up and down the motu…. This is the wrong choice. The Government is simply taking the oil out of the engine of the public service and still expects it to do the same job.”
So, Who’s Being Booted?
When it comes to jobs lost and lives upended, the government prefers to call this a “baseline savings exercise” and cutting “back-office expenditure”, accompanied by cliched phrases like “tightening belts”. These faceless phrases try to draw attention away from the humans involved.
Come on, let’s call it what it is: public servants are getting the boot to help pay for the National Party’s very expensive ‘Back Pocket Boost’ tax plan. (And it is nowhere near enough to pay for those tax cuts.)
The government ministries and departments were given a 6.5% target to reduce spending, or 7.5% if their FTE staff numbers had grown by more than 50% since 2017. How they did this was over to them, but they had to do it quickly.
Reducing the wage bill seemed the swiftest, most obvious solution. Calling for voluntary redundancies, and not filling vacancies, was another way of moving quickly. It’s unclear to what extent these organisations looked to shave expenditure in other areas before the avalanche of redundancies. And the senior public servants implementing these cuts are, of course, unlikely to make themselves redundant.
The PSA has taken legal action via the Employment Relations Authority against the Ministry of Education, which is making 775 staff redundant. “The ministry is not complying with the collective agreement requirement that it must do everything it can to find other roles for staff it is laying off,” says PSA national secretary Duane Leo.
What’s The Plan B For All Those People?
Look, it’s one thing to give thousands of people the boot. It’s another thing to do all this without addressing what happens to them next. Aside from redundancy payments (which won’t last long given the cost-of-living crisis), does the government have any kind of plan for these ex-public servants? Or is it leaving it to the market to reabsorb them into the economy? I asked this of Minister of Finance Nicola Willis. Her response included this:
“The previous government massively increased expenditure and the number of public servants, without improving outcomes for New Zealanders. In just over six years, more than 18,500 roles have been added to the public service – an increase of 39%. We knew that the recent increase in the number of back office public service roles was unaffordable and needed to be reined in. These are tough decisions and I feel for anyone losing their job, but the Government simply had to reduce public spending because it was living beyond its means.”
“Our ongoing savings and efficiency drive will continue to put downward pressure on the size of the workforce which is likely to see a further reduction in FTEs.” Downward pressure means fewer jobs. “We are confident that public servants’ skills and experience will be sought after in the private sector. Just this week I heard from a private-sector employer who appreciated the freeing up of talented people in the Wellington labour market.”
“We have a plan to rebuild the economy, which will ultimately create more job opportunities and lead to higher incomes.”
So what is the job outlook for former public servants? Released on May 23, a Seek NZ Employment Report shows that, nationally, total job ads were down 30% in the year to April 2024, with Wellington job ads down 44%. Meanwhile, as reported in the NZ Herald, Trade Me data shows that specifically central-government job listings are down 77% year-on-year to March 2024, and down 34% for the quarter up until March.
How Will This Impact NZ?
Various people I spoke to were fine with the idea of government departments and agencies making better-considered efficiencies over a longer time period, with savings based on work priorities. But they aren’t happy with the ‘slash-and-burn’ approach, and not just because of their own lives and livelihoods. It’s also about safety, risks, and outcomes. Does anyone really, truly think these hasty job losses won’t negatively impact public-sector work? Even if a 6.5% cut was warranted, the current approach doesn’t seem like it will achieve the ‘right’ 6.5%.
Nicky* says people she worked closely with lost their jobs. “I’m angry about some redundancies that feel short-sighted and unfair. Also, the ‘light, positive, motivational’ tone of communications from senior management has been jarring, given the pain being caused. And the smarmy bowing down to ministers and their shit takes.”
“Our union reps have been great. The union [PSA] has urged us to beware of taking on extra hours because of increased workload [due to others’ job losses]. It’s helpful to have union support for that, although lots of us feel we can’t push back too much. We’ve been told there will be more staff cuts to come, with no guarantees for anyone.”
James*, a public servant who has worked in five government agencies, and survived several restructures – and expects to survive this one – spoke to me anonymously. “This government wants to achieve what they outlined in the election campaign – and the way in which they’re doing it is unpalatable and a bitter pill for public servants to swallow.”
“People who work with or for a government show up to help support government programmes and policies and help make people’s lives better. The machinery of government is essential not only to provide a basic minimum level of security but also quality of life. And it’s essential to meet international obligations both with trade and climate policies.”
“Is the future structure with far fewer key roles going to actually be workable? You don’t want to put too much pressure on individuals, but when you’ve only got one person in a position, whereas previously there was a team of three or four, there’s a danger in that.”
The Rise Of Burn-Out
37-year-old Kate*, a public servant for 10 years, jumped before she was pushed. “I took voluntary redundancy a week ago. I’m now looking for another job.” But jobs are scarce. “So I’m considering going contracting for the first time, which is scary.”
‘Public servants greet each other on the street with ‘have you still got a job?’. ‘For now’ is the response.’
“But I’m glad I left for many reasons. One was definitely the impact on my mental health. We’d been in six months of the ‘change process’, with the final changes happening before 1 July. But it was clear there would be even more ‘changes’ after that. The mood is bad all through town.”
“Public servants greet each other on the street with ‘have you still got a job?’. ‘For now’ is the response. Because no one is certain. I ran into a friend who was joking about ‘marking myself safe on Facebook from the great public service-cull of 2024’, but then she looked around and said ‘touch wood’.”
Expect cafes, shops, and other small businesses in the government precinct around Lambton Quay to struggle further. The streets are already looking emptier, and good luck finding someone who’s smiling.
“Management is talking a lot about prioritising work, as a way to try to get ministers to see what won’t get done if there are job cuts, but ministers don’t care, and then prioritisation isn’t happening. People are getting burnt out trying to prove they should be the one to keep a job, in a highly competitive, desperate environment. Mostly it feels really horrible, as though public servants are having to prove that they’re servants in a highly expendable way.”
“I think the worst of it is the way it’s played out in the media. No one’s really defended the important, essential work the public service does to hold ministers accountable. People love to go on about bureaucracy, but public servants are the ones who know about proper democratic process and how to make sure it’s stuck to. And with such big cuts to the public service, I quake in my boots about the state of our democracy.”