The Ministry of Business, Innovation and Employment (MBIE) is proposing significant changes to its Tenancy Bond Services team as part of an automation-driven modernisation programme, with 28 permanent roles set to be disestablished and two new permanent roles created, resulting in a net reduction of 26 positions.
Twelve fixed-term roles have already ended, with two new fixed-term roles planned.
The Tenancy Bond Modernisation Programme aims to transition more than 500,000 tenancy bond transactions each year from a manual, paper-based process to a self-service digital system intended for landlords, property managers, and tenants.
Consultation with affected staff is currently underway, with final decisions expected to be announced on 14 May. Most roles are scheduled to conclude by early July, with the remaining positions expected to end by October.
The impacted staff include tenancy bond officers as well as operations and administration employees, some of whom have worked in Tenancy Bond Services for decades.
Fleur Fitzsimons, National Secretary for the Public Service Association Te Pūkenga Here Tikanga Mahi, said staff had been assured at the beginning of the automation project that their jobs were secure.
“These workers were told point blank when the automation project began that their jobs were safe. They kept the service running while the new system was being built around them, and now they’re being thrown on the scrap heap of unemployment when they have more to give. It’s a betrayal.”
“How can you get buy-in for automation projects from workers critical to any digital transformation when they are treated this way?”
“This is not how you treat people who have given decades of dedicated service. They cooperated with this project in good faith because they were told their jobs were secure. MBIE has broken that promise.”
The PSA said the transition period is expected to last around three months, with approximately five staff remaining to support the changeover. It raised concerns about whether this timeframe is sufficient to transfer existing operational knowledge.
“There are already long wait times for tenants and landlords dealing with bonds. MBIE’s own documents admit they expect a spike of more than 20% in calls and enquiries when the new system goes live. How will there be enough staff to handle that when the people who know the system have been shown the door?
“Staff have serious concerns the automation is not ready. Pushing ahead regardless, while planning to sack the very people who could keep things running, is reckless.
“Staff also worry that some communities facing barriers to digital access will be disadvantaged by a fully automated system.
“The PSA does not stand in the way of progress, but we won’t stand by while workers are misled. These people deserve better. They deserve the jobs they were promised, or at the very least genuine redeployment pathways, not empty words and a march to the exit,” Fitzsimons said.
Fitzsimons said the union supports modernisation in principle but is calling for MBIE to honour commitments made to staff, extend the transition period, and provide redeployment opportunities for affected workers.