Job Surgery

Newcastle Herald

Monday May 30, 2005

By IAN KIRKWOOD

HUNDREDS of Hunter health jobs could be lost or moved to the private sector as the State Government pursues health sector savings.

The Government has confirmed its intention to shift $100 million a year of the state's health budget to "front line" services by cutting "non clinical" and administrative jobs from the Department of Health's workforce of 90,000.

Doctors, nurses and "allied health" professionals are safe, but administrative positions and "back room" functions including pathology, warehousing, human resources, finance, supply and computing services are set to be rationalised or tendered to the private sector.

The Hunter New England Health Service is the biggest employer in the region, with about 14,000 employees, including more than 9000 between the coast and the Upper Hunter.

White collar jobs in the Hunter are already under pressure with the second-largest employer, Newcastle University, likely to cut 450 positions to balance its books.

Although Health Minister Morris Iemma has pledged there will be no forced redundancies as part of the health restructure, last week's budget formally raised the

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Hunter health jobs on the line in private sector push

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prospect of public servant sackings.

A spokeswoman for Mr Iemma confirmed that job cuts were on the agenda but said "the reduction of positions will not be in the vicinity of 10,000 jobs" predicted last week in the Australian Financial Review.

She declined to give an estimate of the number.

A Hunter Health spokesperson said it was "too early to comment at a local level" about jobs.

When the Hunter and New England health services were merged at the start of the year, chief executive Terry Clout said there would be management and non-clinical job cuts, "and it won't be little numbers."

On a pro-rata basis, the Hunter's share of a 10,000 job cut could be 1000.

Last Tuesday's budget said the Government was "actively pursuing greater flexibility in the management of its workforce", which "at times may involve some employees having certain skills that are surplus to current government service priorities and needs".

"The Government will seek as a first priority to retrain and redeploy such individuals.

"However, it may not prove feasible for all to be placed into permanent positions."

The Herald was unable to obtain comment from the Health Services Union.