Health New Zealand stops restructuring in three areas

Health New Zealand says it has stopped planned restructuring in three areas after cost savings were achieved.

Health New Zealand interim chief human resources officer Fiona McCarthy said in a statement that change processes would stop for the National Public Health Service and the data analytics and community mental health divisions of the Planning, Funding and Outcomes Group.

She said it followed voluntary redundancies, early exit processes and improved efficiency.

As a result the Public Service Association will drop legal proceedings over the restructure at two of those groups.

The union filed legal proceedings with the Employment Relations Authority last month saying "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".

In a statement PSA national secretary Fleur Fitzsimons said although they were pleased the restructuring had been halted, there was still a loss of expertise due to failure to fill vacancies and because people chose to take "early exists" when the announcement was made.

"The settlement means the proposed restructures are withdrawn and the current structures remain in place. Staff who are still employed and have agreed early exits can withdraw from that agreement if they choose to.

"We remain steadfast in our opposition to the damaging cuts that have happened and remain underway and the steps the Government is taking to privatise our public health system."

Restructure continues in other areas at Health NZ.