PSA mulls more legal action over government job cuts after victory

The public service union is considering further legal action against government job cuts after recently winning its dispute with the Department for Education.

The Employment Relations Authority (ERA) has criticised the department’s approach to cutting more than 700 jobs as part of the government’s cost-cutting plans.

1News spoke to Aleeta Hau, one of those who was told their jobs at the Ministry of Education would be cut.

Hau said of the day she heard about the cuts: “It didn’t hit me until it was released.”

“Then I went through all these emotions. The first was that I was so ashamed because people could see what was proposed for my role.

“And I’ve been there for over 19 years. This is my seventh restructuring and the worst I’ve ever felt.”

She opted for voluntary redundancy and recently testified before the Public Service Union (PSA) when it took the ministry to the ERA.

“The ministry’s approach was not representative of taking care of your people, putting your people first,” she said.

The ERA ruled that the ministry had acted unlawfully and had not fully consulted with the PSA, which was in breach of a provision in the collective labour agreement.

“This decision means you can’t ignore the rights of public servants, you can’t trample on union agreements and you have to implement change in the right way,” said Richard Wagstaff, president of the New Zealand Council of Trade Unions.

“And I think this decision will force governments and employers to rethink their strategy.”

The PSA plans to explore possible legal action against half a dozen other agencies.

“We have similar clauses in place with other government agencies and we will review them very carefully and understand the implications of this decision for those agencies and their members,” said Fluer Fitzsimons, PSA deputy secretary.

The Public Service Commission told 1News it was aware of a very small number of agencies with a similar clause, but could not identify any with the exact same clause.

“I think some top executives, before we see legal action, will take a long hard look at their processes and the way their managers are running those processes to determine whether they are adhering to the CBA,” said Yvonne Oldfield, a lecturer in employment law.

Simon Schofield, a legal expert at the University of Auckland, said he “almost certainly” expected the ERA ruling to lead to further legal action against public service cuts.

“That’s just the reality of the drivers of these cost cutting: jobs are being lost. The PSA is trying to protect its members… And they should take advantage of that.”

He said the new government’s expectations that public services will quickly reduce costs meant “employers are under a lot of pressure at this time to make rash decisions to ensure they save costs”.

“But the problem is that they really need to step back and look at the terms of the collective agreements to make sure they’re crossing their T’s and dotting their I’s. And the Department of Education here has failed to live up to the terms of the collective agreement.”

The dismissal process at the Ministry of Education has now been suspended and both parties are expected to negotiate and find a solution.

The ministry has 28 days to appeal the decision.