From: Vicky Holmes
Sent: Wednesday, February 28, 2024 10:04:44 AM
To: [email address] <[email address]>
Subject: Urgent: No surprises update on people leader meeting this morning
Kia ora Abbey
As discussed, later this morning (11am) People Leaders are going to be informed about the next
steps ACC is taking to reduce cost and increase efficency. Then, a wider message will be sent by
Megan to all staff at 3pm. This messaging will make it clear that there will be an impact to
headcount:
While no decisions have been made, I want to let you know that because people are one of our
largest investments, it’s likely we’ll need to consider options for reducing our headcount. No
decisions have been made and any options that may affect our people would be subject to a
good faith consultation process.
I expect this message may result in interest publicly. The media team has been informed, and we
will support your office if questions come your way.
Ngā mihi
Vicky
Vicky Holmes, (She/Her)
Manager, Ministerial Services 00510469, ACC
9(2)(a)
Ministerial Services-0682 / Wellington - Justice Centre
ACC / 19 Aitken Street, Wellington, 6011
PO Box 242 / Wellington 6140 / New Zealand
ACC Website | ACC Newsroom | Facebook | Instagram | LinkedIn | YouTube | Twitter
From: Megan Main <[email address]>
Sent: Wednesday, February 28, 2024 6:54 AM
To: DL-MGMT-ACC Executive <[email address]>
Subject: For Exec - email to People Leaders post our hui
Kia ora koutou
Below is the final version of an email that I will send out at 3pm tomorrow at 11:30am to People
Leaders post our 1130am hui and then to all staff at 3pm. Michael will send a similar note to
unions after he meets with the PSA at 3.30pm.
The content of the email will form the basis of the talking points for the hui, with time for Q&A.
Thanks to Michael, Lisa and the Internal Comms & Engagement team for pulling this together
last night.
All Staff Communication [FINAL]: To be sent from me on 28 February, 3pm
Kia ora koutou
As you might know, the Government has set a clear direction for public sector organisations to
embed a culture of expenditure restraint and fiscal discipline. ACC is a Crown Entity and we’re
very much part of the wider public sector. This means we need to do our part to respond.
We've been considering what the Government’s direction means for ACC and importantly, how
we use this moment to take us toward the aspiration of our strategy - Huakina te Rā.
What we also know is that despite the best efforts of all of us, ACC’s rehabilitation performance
continues to be challenging. Our clients are taking longer to recover, which in turn is placing the
Scheme under increasing pressure. This is one of the reasons we established the Rehabilitation
Improvement Group (RIG) last year – to help us understand how to make our rehabilitation
system work better for our clients and all of us.
There’s promise on the horizon as we get underway implementing findings from RIG and our
recent review of health commissioning. These initiatives will make a real difference for our
clients, our people, and the long-term sustainability of the Scheme. That said, it’s going to take a
while for the work to have real impacts and between now and then, it’s important we have the
resources available to invest in these initiatives to ensure they succeed.
What’s the plan?
In the short term, our plan is to focus on becoming more efficient by finding opportunities to
remove duplication, limit expenditure and stop work that isn’t closely connected to improved
outcomes for our clients.
Our initial target for this work is a saving of 6.5% of our operational costs over the next financial
year (July 1, 2024 – June 30, 2025). You might notice that this is similar to targets set by
Government for other public sector agencies. While ACC hasn’t been given a specific target,
there’s a very clear expectation that we’ll make material cost savings.
Our objective isn’t just to save money though. It’s about how we direct our efforts towards
working smarter to help our clients get better faster, how we make work easier for our people,
and how we create the room to enable us to invest in the things that can have real impact for
the Scheme and for New Zealand.
What happens next?
We’ve already made good progress and we’ve identified considerable savings opportunities.
That said, there’s still more to do to realise the savings we need, to position ourselves for the
future.
While no decisions have been made, I want to let you know that because people are one of our
largest investments, it’s likely we’ll need to consider options for reducing our headcount. No
decisions have been made and any options that may affect our people would be subject to a
good faith consultation process.
We don't have further information to share at this stage but can commit to keeping you updated as we know more.
Supporting our people through change We’ve developed some initial Q&A and we’ll keep adding to them as more information becomes
available and as additional questions are raised. You can find these below and when we have
more to share, we’ll make it available via Te Pātaka and let you know where to find it.
As we navigate this period together, we need to take care of ourselves and each other. We have
several support pathways available, and you can find information here.
Thank you for your ongoing commitment to ACC. We’ll talk again soon but, in the meantime, if
you have questions, please reach out to your leader.
Ngā mihi nui
Megan
Megan Main, (She/Her)
Chief Executive Officer, ACC
Chief Executive 0900 / Wellington - Justice Centre
ACC / 19 Aitken Street, Wellington, 6011
PO Box 242 / Wellington 6140 / New Zealand / www.acc.co.nz
ACC cares about the environment – please don’t print this email unless it is really necessary. Thank
you.
Questions and Answers
Why do we need to find cost savings?
As a Crown Entity, ACC is part of the wider public sector and needs to respond to the direction
from Government for all public service organisations to become as efficient and effective as
possible. There’s also an expectation from Government that we’ll find material cost savings while
ensuring we continue to make a difference to New Zealanders.
What’s just as important is how we make sure we’re able to invest in key initiatives that will
deliver better outcomes for our clients while helping to ensure the Scheme remains financially
sustainable.
Will there be redundancies?
To achieve the savings we’ve committed to, we need to explore all opportunities. Because
people are one of our largest investments, this includes looking at options for reducing our
headcount. What’s important right now is that no decisions have been made and any options
that may affect our people would be subject to a good faith consultation process.
When will we find out more?
We’ll work hard to keep you updated as we have information to share.
From: Vicky Holmes
Sent: Wednesday, February 28, 2024 1:46 PM
To: [email address]
Subject: Re: URGENT: data, media lines for the office
Importance: High
Hi Abbey
ACC has been working closely with MBIE and Treasury to meet the Government’s fiscal objectives. Due to ACC’s status as a
Crown Entity, decisions around structure and headcount at ACC are an operational decision for ACC’s Board.
The information I have immediately to hand is relatively old, but we’re working hard to provide up to date info.
How has the headcount at ACC changed from now, since 2017?
The following table shows the change in headcount from 2018/19 to 2022/23, with a split between frontline and back office
staff.
What areas/business units at ACC have had the most growth, headcount wise?
We will need more time to provide a further breakdown of the specific areas/business units that have had the most growth.
What are the current vacancy rates for FTE?
ACC is advertising to fill approximately 150 front line rolls. I’ll confirm the actual number of vacancies ASAP.
How many contractors/consultants are in employment at ACC?
The table below provides the count of contractors, consultants and providers of professional services engaged and the total
spend on those services for the 2022/23 financial year.
Contractors
Consultants
Professional Services
Total
($)
Number
($)
Number
($)
Number
($)
34,724,150
303
12,087,630
69
1,689,950
40
48,501,730
I’ll get you updated info asap.
Are there likely to be impacts on clients, or services?
ACC is mindful of ensuring this process does not affect our ability to deliver our core services of injury prevention and
supporting New Zealanders if they’ve had an accident. We are actively recruiting for a number of frontline roles, which will
continue.
What will be done to support ACC’s people?
Today’s session with people leaders was to ensure clear communication with staff about what is being considered. Some initial
Q&A have been considered and these will be continually updated as more information becomes available. Staff will also have
support from their leaders and externally through the Employee Assistance Programme
Ngā mihi
Vicky
Vicky Holmes, (She/Her)
Manager Ministerial Services 00510469, ACC
9(2)(a)
ACC Website | ACC Newsroom | Facebook | Instagram | LinkedIn | YouTube | Twitter
From: Abbey Mennie <[email address]>
Sent: Wednesday, February 28, 2024 12:25 PM
To: Vicky Holmes <[email address]>; Jason Hope <[email address]>
Cc: Marvin France <[email address]>; Michelle Brooker <[email address]>
Subject: URGENT: data, media lines for the office
Kia ora koutou,
Following the office being made aware about the stirrings of a restructure, are you able to please provide information/answers
about the following matters ASAP? While I absolutely appreciate that getting information together like this takes time, we
need this
immediately (i.e., within an hour) so the Min can be prepped before he goes to the House.
How has the headcount at ACC changed from now, since 2017?
What areas/business units at ACC have had the most growth, headcount wise?
What are the current vacancy rates for FTE?
How many contractors/consultants are in employment at ACC?
Are there likely to be impacts on clients, or services?
What will be done to support ACC’s people?
For media:
Reactive lines for if the Min or other Mins are approached about this
Lines about the process – i.e., where things are at, how it’s likely to look over the next few weeks, months etc
Ab
Abbey Mennie
Private Secretary (ACC) | Office of Hon Matt Doocey
Minister for ACC, Minister for Mental Health, Minister for Tourism and Hospitality, Minister for Youth, Associate Minister of
Health, Associate Minister of Transport
M: 9(2)(a)
Email: abbey [email address] Website: www.Beehive govt.nz
Private Bag 18041, Parliament Buildings, Wellington 6160, New Zealand
From:
Marvin France
To:
Abbey Mennie; Vicky Holmes; Jason Hope
Cc:
Michelle Brooker
Subject:
RE: URGENT: data, media lines for the office
Date:
Wednesday, 28 February 2024 2:05:53 pm
Attachments:
Reactive messages - Cost savings.docx
Kia ora Abbey,
Please see reactive media messages as per the below request. FYI there’s nothing further we can say re timeframes at this
stage.
Happy to discuss further.
Thanks,
Marvin
From: Abbey Mennie <[email address]>
Sent: Wednesday, February 28, 2024 12:25 PM
To: Vicky Holmes <[email address]>; Jason Hope <[email address]>
Cc: Marvin France <[email address]>; Michelle Brooker <[email address]>
Subject: URGENT: data, media lines for the office
You don't often get email from [email address]. Learn why this is important
Kia ora koutou,
Following the office being made aware about the stirrings of a restructure, are you able to please provide information/answers
about the following matters ASAP? While I absolutely appreciate that getting information together like this takes time, we
need this
immediately (i.e., within an hour) so the Min can be prepped before he goes to the House.
How has the headcount at ACC changed from now, since 2017?
What areas/business units at ACC have had the most growth, headcount wise?
What are the current vacancy rates for FTE?
How many contractors/consultants are in employment at ACC?
Are there likely to be impacts on clients, or services?
What will be done to support ACC’s people?
For media:
Reactive lines for if the Min or other Mins are approached about this
Lines about the process – i.e., where things are at, how it’s likely to look over the next few weeks, months etc
Ab
Abbey Mennie
Private Secretary (ACC) | Office of Hon Matt Doocey
Minister for ACC, Minister for Mental Health, Minister for Tourism and Hospitality, Minister for Youth, Associate Minister of
Health, Associate Minister of Transport
M: 9(2)(a)
Email: abbey [email address] Website: www.Beehive govt.nz
Private Bag 18041, Parliament Buildings, Wellington 6160, New Zealand
ACC Cost Savings – Reac�ve Media Messages
• ACC is commited to opera�ng efficiently and effec�vely, while con�nuing to make a posi�ve
difference for New Zealanders.
• While most of ACC’s funding comes from the levies and our Investment Fund, this is s�ll
public money. As part of the wider public sector, ACC is commited to suppor�ng the
Government’s priori�es and savings targets.
• ACC hasn’t been given a specific target by the Government. However, there’s a clear
expecta�on that it will make material cost savings. ACC has set a savings goal of 6.5% of our
opera�onal costs over the next financial year (July 1, 2024 – June 30, 2025), in line with
targets set for other public sector agencies.
• ACC plans to focus on becoming more efficient by finding opportuni�es to remove
duplica�on, limit expenditure and stop work that isn’t closely connected to improved
outcomes for clients.
• It is too soon to say how this may impact ACC’s workforce, although headcount reduc�ons
may be necessary given that people are one of its largest investments.
• No decisions have been made and any op�ons that may affect ACC’s people would be
subject to a good faith consulta�on process.
• ACC is commited to ensuring this process does not nega�vely impact its ability to deliver its
core services of injury preven�on and suppor�ng New Zealanders if they’ve had an accident.
ACC is currently recrui�ng for a number of frontline roles, which will con�nue as planned.
From:
Marvin France
To:
Nicky Grant
Cc:
[email address]; Vicky Holmes; Michelle Brooker
Subject:
RE: Ministry reductions / redundancies
Date:
Thursday, 29 February 2024 5:32:51 pm
Hi Nicky,
Please see below our response to Stuff, on a no surprises basis.
Let me know if you have any questions, otherwise I’ll see you tomorrow.
Thanks,
Marvin
Kia ora9(2)(a) ,
Thanks for your query. The following comments can be attributed to ACC chief executive Megan
Main
: As part of the wider public sector, ACC is committed to supporting the Government’s priorities
and savings targets while continuing to make a positive difference for New Zealanders. ACC has set a savings goal of 6.5% of our operational costs over the next financial year (July 1,
2024 – June 30, 2025), in line with targets set for other public sector agencies. Our plan is to focus on becoming more efficient by finding opportunities to remove duplication,
limit expenditure and stop work that isn’t closely connected to improved outcomes for our
clients. It is too soon to say how this may impact our people, although reducing our overall workforce
may be one of the necessary options given that people are one of our largest investments. We have outlined our savings target with our people and we’re committed to being transparent
throughout this process. It’s important to note that no decisions have been made and any options
that may affect our people would be subject to a good faith consultation process. Ends If you are not happy with this response, you have the right to make a complaint to the
Ombudsman. Information about how to do this is available at www.ombudsman.parliament.nz
or by phoning 0800 802 602.
From: Marvin France
Sent: Thursday, February 29, 2024 11:43 AM
To: Nicky Grant <[email address]>
Cc: [email address]; Vicky Holmes <[email address]>; Michelle
Brooker <[email address]>
The informat on contained in this e-mail message and any accompanying files is or may be confidential. If you are not the intended recipient,
any use, dissemination, reliance, forwarding, printing or copying of this e-mail or any attached files is unauthorised. This e-mail is subject to
copyright. No part of it should be reproduced, adapted or commun cated w thout the wr tten consent of the copyright owner. If you have
received this e-mail in error please advise the sender immediately by return e-mail or telephone and delete all copies. Stuff does not guarantee
the accuracy or completeness of any informat on contained in this e-mail or attached files. Internet commun cations are not secure, therefore
Stuff does not accept legal responsibility for the contents of this message or attached files.
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NZME Ltd / NZME Holdings Ltd / NZME Publishing Ltd / NZME Radio Ltd / NZME Educational
Media Ltd
______________________________________________________________________
Media enquiry
Date
1 March 2023
Reporter
9(2)(a)
From
Newstalk ZB
Contact
9(2)(a)
Timeframe 1 March 2023
Request
Kia Ora,
9(2)(a)
I was hoping to grab a statement on the cost-cutting measures announced for ACC -
just around the cost-cutting target percentage, what these measures may look like
- real y just what you're able to say.
We'd use this for our hourly bul etins today.
Kind regards,
Data
reference
N/A
9(2)(a)
Response
Kia ora
Thanks for your query. The fol owing comments can be attributed to ACC chief executive Megan
Main
:
As part of the wider public sector, ACC is committed to supporting the Government’s priorities and
savings targets while continuing to make a positive difference for New Zealanders.
ACC has set a savings goal of 6.5% of our operational costs over the next financial year (July 1,
2024 – June 30, 2025), in line with targets set for other public sector agencies.
Our plan is to focus on becoming more efficient by finding opportunities to remove duplication,
limit expenditure and stop work that isn’t closely connected to improved outcomes for our
clients.
It is too soon to say how this may impact our people, although reducing our overall workforce
may be one of the necessary options given that people are one of our largest investments.
We have outlined our savings target with our people and we’re committed to being transparent
throughout this process. It’s important to note that no decisions have been made and any options
that may affect our people would be subject to a good faith consultation process.
Ends
If you are not happy with this response, you have the right to make a complaint to the
Ombudsman. Information about how to do this is available at www.ombudsman.parliament.nz or
by phoning 0800 802 602.
Who
involved
From: Vicky Holmes <[email address]>
Sent: Thursday, March 7, 2024 4:12 PM
To: [email address] <[email address]>;
[email address] <[email address]>;
[email address] <[email address]>
Cc: Marvin France <[email address]>; Jason Hope <[email address]>
Subject: No surprises update: Communication going to all staff today
Hi Abbey, Josef and Nicky
Later this afternoon, ACC staff will receive the below update on the plan for the financial year
ahead.
In line with the update last week, no decisions have been made. However, as you’d expect, staff
are keen to understand the timeframes that the Executive team are working to, particularly for
any options that may involve proposals to reduce headcount.
The email, which will go to all staff, will advise that if options that include proposed headcount
reductions proceed, consultation will occur in May. Decisions would then be made in June after
careful consideration of feedback.
The communications make it clear that the options being explored do not involve any proposals
to reduce the current headcount of our client-facing teams in Service Delivery. ACC is continuing
to prioritise recruitment into these teams.
The full email is below. Please have a read and let me know if you have any further questions.
Ngā mihi
Vicky
Vicky Holmes, (She/Her)
Manager Ministerial Services 00510469, ACC
9(2)(a)
ACC Website | ACC Newsroom | Facebook | Instagram | LinkedIn | YouTube | Twitter
All Staff Communication from Megan Main for Issue 7 March 2024 – DRAFT FOR REVIEW
Proposed Subject Header: Further Update on our Planning for the Financial Year Ahead
FY24/25
Kia ora koutou
Last week I shared with you the commitment ACC has made to do our part to respond to the
Government’s clear direction for efficiency and effectiveness from the public service. I also said
that we would use this moment to take us toward the aspiration of our strategy – Huakina te Rā.
While we’re still early in the work, we made the decision to let you know that we’re starting to
identify and explore options to help us achieve a savings target of 6.5% on our operational costs
over the next financial year; enable us to help our clients get better faster; make work easier for
our people; and create headroom to invest in the initiatives that have a positive impact for the
Scheme and for New Zealand.
As I said last week, we need to consider a range of options for achieving these objectives. It’s
likely that these options include reducing headcount.
Engaging you early was the right thing to do. What this means though is that we don’t yet have
answers to all of the questions that might be front of mind. We’re committed to providing you
with as much information as soon as we can.
One of the questions I know some of you have is about the timeframe we’re working to,
particularly for any options that may involve proposals to reduce our headcount. If we proceed
with options that include proposed headcount reductions, we’ll undertake consultation on those
in May. Decisions would then be made in June after careful consideration of feedback.
Importantly, I want to be clear that the options we’re exploring do not involve any proposals to
reduce the current headcount of our client-facing teams in Service Delivery. We’re continuing to
prioritise recruitment into these teams.
We’ll continue to keep you informed as there’s more to share. In the meantime, we’ve set up an
Information Hub on Te Pātaka and we’ll build on this over the coming weeks.
Finally, it’s important that we take care of ourselves and each other. We have several support
pathways available and you can find them here.
Thank you for all that you do for ACC. If you have any questions, please reach out to your leader.
Ngā mihi nui
Megan
Excerpt: Weekly Report to the Minister for ACC For the period from 8 to 14 March 2024
1. SCHEME POLICY (MBIE)
1.1 None.
2. OPERATIONS (ACC)
2.1 ACC cost savings in the 2024/25 financial year
In the weekly report on 8 February, ACC advised that it has begun work to embed a culture of fiscal
discipline across the public sector.
Work is underway to understand and quantify potential cost savings in order to deliver a reduction in
ACC’s proposed budget for the 2024/25 financial year. In addition, some additional internal controls
have been introduced around how vacancies are managed and fil ed.
ACC has started to identify and explore options to achieve a savings target of 6.5% on operational
costs in the 2024/25 financial year. It is likely that these options include reducing headcount.
The options do not involve any proposals to reduce the current headcount of our client-facing teams
in Service Delivery. We’re continuing to prioritise recruitment into these teams.
3
