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Union member? Collective agreements, redeployment and public-sector job cuts

8 minute readRedundancy

In short

If a collective agreement covers you, check its restructuring or redundancy clause first. It often sets consultation steps, redeployment, and a severance formula that's better than the legal minimum, and your union is entitled to be consulted. Public-sector agreements commonly include redeployment and severance rules. Tell your union organiser the day you hear about a proposal.

Find your agreement and your union

  • Look for 'restructuring', 'redundancy', 'surplus staff', 'redeployment' and 'severance' in the collective agreement. Many include a formula (weeks per year of service) and limits on what the employer can do.
  • If you're not sure which union covers your work, NZCTU (Te Kauae Kaimahi) can point you to the right one: (04) 385 1334 per Community Law.
  • Even if you're not a member, joining a union now can get you help at once (check what's covered for existing disputes before relying on it).
  • Workplace change processes must involve unions: Employment NZ says employers should check which affected employees are union members and consult the union alongside them.

What a union can do for you

  • Read the proposal and spot weaknesses in the business case.
  • Negotiate alternatives, voluntary redundancy and severance.
  • Represent you at meetings, in mediation and at the Authority, usually at no extra cost.
  • Enforce the consultation steps in the agreement. For example, the PSA reported in July 2024 that the Authority found the Ministry of Education hadn't complied with its collective agreement's change process, because it treated the PSA mainly as a channel for information rather than engaging with it.

Public-sector cuts: what's usually different

In May 2026 the PSA publicly criticised planned government agency cuts and job losses, so many public servants face this. The typical features are set out in collective agreements, not in the Employment Relations Act, so read yours. Many include:

FeatureWhat to look for
RedeploymentA period when you're considered first for vacancies across the agency, often with training support.
Comparable role offersSection 88 of the Public Service Act 2020 says a public service employee given notice of redundancy isn't entitled to a redundancy payment if, before employment ends, they are offered and accept another State services position starting straight after, on terms no less favourable and with continuous service. Declining an offer is not the same as accepting one, but check your agreement and ask your union before deciding.
Severance formulaWeeks per year of service with a cap, sometimes with extra for older staff.
Voluntary optionsEarly retirement, leave without pay, retraining, or reduced hours.
Notice and garden leaveOften longer than the statutory minimum.
Union consultationA duty to consult the union before the employer finalises a proposal.
  1. Tell your union organiser immediately and send them the proposal.
  2. Check redeployment lists and apply for internal vacancies, even if you doubt you'll be matched.
  3. Ask for a written statement of your entitlements, with the calculation, before you decide.
  4. Don't accept or reject a role offer without checking what it means for severance.
  5. Ask about career transition support, such as outplacement and paid time to job-hunt.

After the job goes

  • Large public-sector severance can delay Jobseeker Support. Use the stand-down guide and tool before you apply.
  • Many roles are being cut at once. Find other former colleagues, check the sector networks, and also consider NGOs, local government and the private sector.
  • Consider whether your skills move to private roles. Our find-work guide covers translating public-sector language for private-sector CVs.
  • Look after yourself: restructures can be harsh on whole teams. See the wellbeing guide.

Sources

General information only. Confirm with the agency for your situation. Spotted something out of date? Email help@unemployed.nz.