The New Zealand Defence Force has confirmed it will invite expressions of interest in voluntary redundancy from its civilian workforce.
A process has begun at NZDF to "rapidly reprioritise" its budget as it works to keep ships, aircraft, equipment and personnel ready to respond where needed.
The NZDF said cost of operating has grown across the board, which has caused a "largely uncontrollable budget shortfall" of more than $130 million, the force said in a statement.
"While the NZDF has identified spending that can be reduced, it still has to find around $30 million more to remain within budget.
"Alongside voluntary redundancy options, the NZDF will also consider other cost saving measures which could include managing leave liability down, restricting civilian recruitment to essential positions only, converting contractors to employees where it financially makes sense, and disestablishing some vacant positions."
In addition, there will be "no funding" for remuneration increases for staff, or health practitioners.
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"There will also be no base salary increases for the uniformed workforce. However, the Budget in May did provide $163 million of additional funding to improve the remuneration of uniformed personnel through increases in Military Factor pay and allowances.
"The NZDF is currently engaged in bargaining with two unions and will be in bargaining with the third union later in 2024."
It said it has met with all the unions, which represented about a third of the civilian staff, to ensure they had a full understanding of the NZDF’s position.
The NZDF will "continue to engage with the unions and employees" who are members of the unions in accordance with the collective agreements and other legal obligations, the statement said.
"The NZDF acknowledges that this is difficult news for staff. It is committed to providing support, answering questions from staff and hearing concerns as the processes are worked through."
