The Government is issuing a new Workforce Policy Statement outlining expectations and priorities for employment relations across the Public Sector.

Minister for the Public Service Nicola Willis says the statement has a strong emphasis on fiscal sustainability and performance.

The workforce policy statement is a blueprint for how public sector agencies, including Crown entities, should approach a range of workforce matters including remuneration, negotiation of employment agreements, pay equity, diversity, data and information.

“This Government is committed to delivering better public services like health and education while ensuring government agencies spend taxpayer’s money as carefully as they would themselves,” says Willis.

“Over the past six years, there has been a sharp increase in the amount of taxpayer money spent on back-office staffing in public agencies.

“Despite these increases, actual outcomes for New Zealanders have gone backwards across key areas like health, education, and crime."

The minister says turning these trends around requires a renewed focus on fiscal responsibility and high performance across the public sector.

“That’s why the Government has set a clear expectation that future workforce costs, including collective bargaining and pay increases, are to be funded from within existing budget baselines," says Willis.

"Agencies are also expected to reduce spending on consultants and contractors, which has blown out in recent years, while keeping tighter control over workforce size.

“Among other measures to drive performance and ensure accountability, the Government has also made it clear it expects to see the pay of public sector executives and deputies linked directly to outcomes,” Nicola Willis says.

To support the Government’s goals of delivering high quality, value for money services to New Zealanders, the Workforce Policy Statement sets out four key priorities:

• Employment outcomes are fiscally sustainable and respond to the current fiscal context and any current budget advice.
• Employment conditions and remuneration settings support a high performing public sector and the delivery of effective, efficient, and responsive services.
• A diverse and inclusive public service workforce that is responsive to the needs of all New Zealanders.
• Agencies manage their workforce size and composition, including to reduce expenditure on consultants and contractors.