Kainga Ora Plans Job Cuts Ahead of Christmas Amid Restructuring

The New Zealand Government’s social housing agency, Kainga Ora, is preparing to reduce its workforce by cutting ten positions from its ministerial team. Staff members are expected to receive their redundancy notices in the week leading up to Christmas, specifically on or after December 17. This decision follows a significant restructuring that has already resulted in hundreds of job losses over the past 18 months as the agency aims to manage its spending more effectively.

In November, a proposal was presented to affected employees, indicating plans to reduce the Ministerial Services team from 22 to 12 roles. The reorganization entails the elimination of twelve positions while introducing two new roles. The new team structure is scheduled to take effect by the end of January 2024, further indicating a shift in the agency’s operational focus.

The Ministerial Services team handles essential democratic functions, including managing Ministerial inquiries, responding to Official Information Act requests, and addressing Parliamentary Questions. According to Matt Crockett, the chief executive of Kainga Ora, these cuts are intended to align the team with current workload demands and the agency’s broader organizational priorities.

“Our focus is on supporting people with care and respect,” Crockett stated, emphasizing the need for the agency to adapt in light of its “new, narrower focus on managing and providing social housing.” This year, Kainga Ora has undergone considerable changes to its workforce, eliminating 789 fulltime roles since June 2024 as part of its strategic refocus.

The Public Service Association Te PūKenga Here Tikanga Mahi has expressed concern over the abrupt nature of the job cuts. National secretary Fleur Fitzsimons criticized the short timeframe given to employees, allowing only nine days for feedback on the proposed changes. Fitzsimons described the timeline as “disgusting,” arguing that it undermines the rights of workers and reduces consultation to a mere formality.

The impending job losses leave staff facing an uncertain holiday season, particularly in a labor market characterized as one of the tightest in recent history. “These staff members do critical work supplying information to their Minister,” Fitzsimons noted. “They’re a vital part of how our democracy functions.”

Kainga Ora has faced scrutiny following a critical review conducted by former Prime Minister Sir Bill English. The review highlighted issues within the agency, including financial viability concerns, a lack of transparency and accountability, and insufficient understanding of tenant outcomes. As the agency navigates these challenges, the latest round of job cuts signals ongoing efforts to stabilize its operations and improve performance.