WorkSafe NZ is set to slash more than 100 jobs as part of a major restructure which also sees the resignation of chief executive Phil Parkes.
The workplace health and safety regulator announced on Thursday it had opened staff consultation on its organisation change proposal.
It follows ongoing government funding discussions which saw former workplace relations and safety minister Michael Wood commission a strategic baseline review of the organisation in 2021.
The review was completed by consultants SageBush in May 2022 and found that while WorkSafe is performing its core regulatory functions, work was needed to achieve a sustainable funding model and clarity about the outcomes the organisation is delivering to New Zealanders.
WorkSafe agreed to the recommendations in the review, and says it has been working “at pace” to implement them.
It says the changes are critical to enable a clear investment case for future funding.
The change proposal aims to streamline WorkSafe’s activities to focus on “the core functions New Zealanders expect of their health and safety regulator,” it says.
It says baseline funding has been maintained since WorkSafe’s inception.
New funding includes:
- Ongoing funding of $4 million ($1m per year) over the forecast period to enable the retention of WorkSafe’s victim services and coronial services
- $7 million in a tagged contingency to support WorkSafe to manage unexpected costs arising out of the change process without further full-time equivalent reductions
- A tagged contingency to support WorkSafe with costs associated with the Whakaari litigation.
The current proposal includes a number of roles being disestablished and new roles being established.
“While the proposal is subject to change, the overall roles within WorkSafe may reduce by 100-120,” it says.
“We have recently been provided with additional ongoing funding to allow us to maintain victim services and coronial services through this change process.
“The proposed changes would still result in WorkSafe having more staff than we did prior to COVID-19.
“We have worked hard to prioritise non-personnel cost reductions over changes that directly impact our people, including by reducing current vacancies within WorkSafe,” it says.
WorkSafe adds there is no proposed impact to its frontline inspectors and investigators and it intends to grow inspector numbers over the coming years, with more inspectors planned for later this year.
“If a health and safety inspector is operating in a non-frontline role, and is impacted through the change, they will be offered redeployment to a frontline inspector role. This reflects our commitment to streamline our activities to our core functions,” it says.
CEO departs
Alongside the restructure, WorkSafe board chair Jennifer Kerr also announced the resignation of chief executive Phil Parkes.
Parkes has been a WorkSafe leader since 2015 and chief executive since 2020.
He will continue as chief executive while the organisation works through the change process and plans to finish up with WorkSafe by the end of 2023.
“Phil has been a strong voice for the need to collectively prioritise health and safety,” Kerr says.
“It has been clear to me in interactions I have had, particularly with system partners, that Phil’s commitment and passionate and articulate advocacy for health and safety is highly respected.
“Phil has been with WorkSafe for almost nine years and believes the time is right for his next chapter, and for new leadership and thinking for the organisation. I thank him for his service.”
Parkes says it’s “been a privilege to have worked with such a dedicated team who are committed to reduce work-related harm across Aotearoa”.
“Thanks to the organisations and workers who put people first, and the mahi of talented, dedicated people in WorkSafe, we’ve seen work related fatalities in Aotearoa reduce since 2013,” he says.
‘More funding needed’
NZ Council of Trade Unions says working people will bear the brunt of WorkSafe’s proposal for a “deep and wide restructuring”.
“Reducing WorkSafe’s capacity and capability is the wrong thing to be undertaking when New Zealand’s poor health and safety record is costing so many lives of working people,” NZCTU president Richard Wagstaff says.
Between June 2022 and June 2023, 71 New Zealanders died from a result of an injury at work. In addition, estimates suggest that another 750-900 workers die each year from work-related occupational diseases such as asbestosis and cancers.
“More funding is needed right now to ensure WorkSafe’s valuable mahi can continue to help ensure working New Zealanders can return home safe and healthy from work.”
Following the Pike River Mine tragedy, the Independent Taskforce on Workplace Health and Safety called for a regulator that had both the mandate and resources to be a visible and effective best practice regulator.
“Reducing WorkSafe’s capacity now risks going back to how things were in the lead up to Pike.
“These proposed cuts will only make it much harder for New Zealand to make real progress in turning around its poor health and safety record,” Wagstaff says.
