Photo Source: Laura James
Health New Zealand has reversed its decision to remove Milo from staff rooms, following a swift outcry from healthcare workers and the Public Service Association (PSA) union.
The cost-cutting measure, intended to save $3 million annually, was met with immediate criticism from staff, prompting Health NZ Commissioner Dr. Lester Levy to intervene and halt the policy.
A Financially Driven Proposal
Health New Zealand Commissioner Dr. Lester Levy, alongside acting Chief Executive Dale Bramley, issued a directive on Wednesday afternoon to ensure that Milo would remain available in staff rooms across the country. Dr. Levy explained that as soon as he became aware of the proposal to replace Milo with a cheaper alternative, he took immediate action.
“Upon learning about the suggestion to switch to a different drink to save money, I made the decision to halt the move and communicated to all staff that the current arrangement would remain in place,” he said.
Dr. Levy further emphasised the importance of maintaining the popular beverage for frontline workers, stating, “I know how much Milo is valued by our staff, and it’s important that it continues to be available to them.” He confirmed that alongside Milo, other hot drink options—tea, coffee, hot chocolate, and sugar—would remain available for staff, as part of the decision to preserve staff well-being.
Union and Public Pushback
The Public Service Association (PSA), which represents thousands of healthcare workers, quickly opposed Health New Zealand’s decision to remove Milo from staff rooms. The union highlighted that small gestures, like providing Milo, play a key role in boosting staff morale.
Dr. Deborah Powell, Executive Director of the Resident Doctors Association, expressed surprise at the level of involvement from Dr. Levy but noted that the reversal had brought relief to many workers. “From nurses to doctors to support staff, the consensus was clear: this felt like another sign that the system doesn’t respect us,” Powell said.
She added that some nurses had shared how Milo was not just a personal comfort but something they could offer to patients as well. “In packed clinics where patients are waiting for hours, offering something like Milo is one of the few ways to show care,” Powell explained.
Powell also pointed out that in some healthcare workers’ contracts, the provision of hot drinks—including Milo—was part of their agreed terms. “For some, this isn’t a convenience; it’s a right that’s been agreed upon,” Powell emphasised.
Commissioner Steps In
Faced with mounting criticism, Dr. Lester Levy stepped in to reverse the decision. He issued a directive ensuring that Milo—and other hot drink options—would remain available to all staff. “As soon as I was informed about the proposal, I acted immediately to stop it,” Dr. Levy wrote in a communication to staff.
In his statement, Dr. Levy stressed that while cost-saving measures were necessary, they should not come at the expense of staff morale. “We understand the financial challenges ahead, but we also recognise that supporting our staff—particularly in times of stress—is essential to maintaining a productive and engaged workforce.”
Reactions and Implications
The decision to reinstate Milo in staff rooms was widely welcomed by healthcare workers, who saw it as a sign that their concerns had been heard. “It might seem like a small thing, but it feels like a win,” one nurse said. “It’s not just about Milo; it’s about feeling respected for the hard work we do.”
Union leaders also hailed the reversal as a victory for staff, with one PSA representative noting, “This shows that when staff speak up, their voices are heard. Even small changes can send a powerful message and help lift morale.”
Health New Zealand’s recent policy shift has triggered a wider debate about the organisation’s approach to cost management and employee relations. Following the reversal of the Milo decision, union leaders and healthcare workers are calling for a more inclusive decision-making process that prioritises staff input.
“It’s about making sure staff feel they are part of the conversation,” Dr. Deborah Powell said. “When that’s not the case, it creates a divide.”