The NZDF is likely to cut jobs and halt pay rises and work programmes. File photo. Photo: NZDF / Provided
A Defence Forces employee says proposed cuts to its civilian workforce to plug a $30m budget hole are “a real kick in the gut”.
The New Zealand Defence Force (NZDF) has confirmed it is likely to cut jobs and halt pay rises and work programmes in the face of a “largely unmanageable” budget deficit that initially ballooned to more than $130 million.
In an email sent to all staff on Wednesday, NZDF management invited its civilian staff, who were set to bear the brunt of the organisation’s fiscal problems, to express their interest in voluntary withdrawal.
If you are affected by the NZDF cuts, please contact us: news@rnz.co.nz
Defence Force Chief of Staff Air Marshal Tony Davies told staff they had to re-prioritise their budget to ensure “ships, aircraft, equipment and personnel are ready to respond wherever they are needed”.
“The international security environment means that it is essential that we continue to carry out our core military activities.”
He said that while it had found savings within its operating budgets, it still faced a $30 million deficit.
“We have made the difficult decision not to increase the Regular Force, which means that while we will continue to recruit and train, we are not looking to increase the total number of uniformed personnel next year.”
For this reason, the likely outcome was a reduction in its civilian workforce.
It was also revealed that there will be no salary increases for civilian staff or health professionals.
According to its 2023 annual report, the NZDF employs a total of 3,067 civilian personnel.
‘Incredibly dependent on civilians’
An army official told RNZ on condition of anonymity that the immediate reaction “within my sphere of influence is of great concern”.
“I am currently working the equivalent of three full-time jobs.
“Obviously, I’m not the only one in this situation, but particularly lately we’ve been incredibly reliant on civilians to maintain even something resembling a basic capability, taking on tasks that go far beyond their job descriptions.”
The officer said they had not spoken to any civilian staff, but believed the move would be “a real kick in the stomach for them.”
They also feared that cuts to military operations would be “devastating to any form of response, whether domestic or international.”
“We are already operating with the smell of an oily rag.”
Ahead of the May Budget, NZDF leaders warned MPs that the government’s sweeping cuts to the public sector would impact its key frontline services after being asked to find 6.5 per cent savings.
In Davies’ email, he said rising costs within the military space (underlined by claims that munitions costs had risen 600 per cent since 2020) had hit the sector hard.
Fuel costs per litre have almost doubled over the same period, Davies said.
“This issue is for the NZDF to resolve and we are in for a tough few months.”
Base salary increases for uniformed personnel were also suspended.
The government will inject $571 million into defense spending to better pay the military and improve defense equipment and infrastructure.
An NZDF spokesman said the Budget, which allocated a total of $571 million to the Defence Force, included $163 million in additional funding to improve the pay and benefits of uniformed military personnel.
“The NZDF recognises that this is difficult news for staff.
“He is committed to providing support, answering staff questions and listening to concerns as the processes unfold.”
Elsewhere, the NZDF was considering other cost-saving measures, including reducing liability for leave, restricting civilian recruitment to essential positions only, converting contractors to employees where it makes financial sense, and eliminating some vacant positions.
The developments also come amid ongoing pay negotiations between NZDF leaders and two unions, with talks with a third union due in the coming months.
“The NZDF has met with all unions, which represent approximately one third of civilian staff, to ensure they fully understand the NZDF’s position.
“We will continue to cooperate with unions and employees who are members of unions in accordance with collective agreements and other legal obligations.”
NZDF leaders will hold a “town hall style meeting” for staff at their Defence House headquarters in Wellington on Thursday.
Visits to camps and bases will be made in the coming weeks.
Defence Minister Judith Collins said in a statement that the cuts were an operational matter and it would not be appropriate for her to comment.
“The men and women of the NZDF do a great job protecting New Zealand and its interests, but these are tough economic times and everyone is asked to review everything to ensure all funds are used in the best way,” he said.
“The frontline is the priority and I am confident that the NZDF leadership will guide its people through what I know will be a challenging process.”
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