Union slams move as a 'shameful indictment of the government's reckless approach to cost-cutting'
Health New Zealand shelled out $57.9 million for the exits of nearly 2,800 health workers over the past two years, according to a new union report.
Government data obtained by the Public Service Association (PSA) revealed the total amount to cover the voluntary redundancies and early exits for non-clinical staff between 1 Novembe 2023, and 31 December 2025.
Fleur Fitzsimons, national secretary for the Public Service Association Te Pūkenga Here Tikanga Mahi, said the exits included experienced administrators, public health analysts, and IT experts.
"Bottom line, the government forced Health NZ to spend money it didn't have to axe workers it needed to keep the system functioning well for all New Zealanders," Fitzsimons said.
The impact of the departures is also felt beyond taxpayer money, according to the PSA, which represents 17,000 health workers in New Zealand.
"This is a shameful indictment of the government's reckless approach to cost-cutting coming at a time of a health funding crisis – all this has done is deepen the crisis," Fitzsimons said.
"There is a high price to pay for losing these public health workers and it will include more IT failures, longer wait times, and clinicians doing more administrative tasks."
Removing 'unnecessary bureaucracy'
The report comes as the New Zealand government shifts its focus to developing the health sector's frontline and removing "unnecessary bureaucracy."
A Letter of Expectation from Health Minister Simeon Brown in November 2025 stressed that Health NZ should shift decision-making closer to the frontline.
"I expect Health New Zealand to rapidly devolve decision-making to its four regions and 20 districts, so they can get on with what they do best – delivering healthcare to patients," Brown previously said.
"That includes removing unnecessary bureaucracy and improving recruitment timeframes for frontline clinical roles. People need a health system that is responsive, and this shift in decision-making will support faster, better outcomes for patients."
