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Otago Daily Times
18-07-2025
- Business
- Otago Daily Times
Polytech merger leaves MP baffled
Penny Simmonds had already seen Otago Polytechnic plans to erase a $10 million shortfall before placing it in a "federation" of underperforming institutions. The savings would bring the polytechnic back into surplus, which would be necessary for it to stand alone. Slashing courses has already saved it $4m and it is targeting another $6m of savings by the end of the year, documents leaked to the Otago Daily Times reveal. The documents showed the latest Otago Polytechnic "Road Map to Viability" had targeted savings of $10.5m to bring it back into surplus by December. Published in May, the documents said the polytechnic had already made savings of $4m, meaning it needed to find about $6m in savings over the next six months. The road map document said the savings so far had been achieved through several measures, including cutting 21 "non-performing programmes", drastically downscaling the Capable NZ programme, reviewing its Cromwell campus operations, selling buildings and capping staff numbers. Ms Simmonds, as vocational education minister, announced the breakup of mega-polytechnic Te Pukenga on Monday. Otago Polytechnic was named as one of the 10 regional polytechs (ITPs) to be returned to regional control, but it will not fully stand alone and instead be part of a "federation model" alongside the Open Polytechnic and Universal College of Learning (Ucol). Green Party MP Francisco Hernandez said he could not understand why Otago Polytechnic needed to be part of the federation. "It's baffling they've been forcibly merged with the federation when they had a pretty plausible pathway to autonomy. "Rather than going ahead with their agenda of disruption, forced cuts and forced mergers, the government must invest in Otago Polytechnic so that learners can get the education they deserve." The document also trumpeted Otago Polytechnic's past successes, and said pre-Te Pūkenga, the Dunedin campus added more than $967m to the city's economy from 2017-21. Te Pukenga brought together the country's 16 ITPs five years ago. Tertiary Education Union general secretary Daniel Benson-Guiu said he had been asking for these reports "for months". "We're asking Otago Polytechnic to open up the books — show us what your budget is, show us who has told Otago what it needs to save, and why." Instead of cuts, Otago Polytechnic should focus on reconnecting with the community, he said. Otago Polytechnic executive director Megan Potiki has called for a meeting with Ms Simmonds about the situation. "There has been very little direct guidance from the minister to Otago Polytechnic about requirements for a pathway to full autonomy," Dr Potiki said. "On Wednesday, we reached out to the minister, seeking an urgent meeting to explain the decision, and requesting details around the specific criteria and processes for exiting the federation and regaining true independent status. "We are still waiting on a response," Dr Potiki said. She said all ITPs were told that if they were not financially viable, being included in a federation model was a possibility. "However, we have never had any indication from the Tertiary Education Commission or the minister that Otago Polytechnic was at risk of not reaching the targets set for our financial viability." Ms Simmonds said she had seen the document, as well as information from the TEC and Te Pūkenga. "Supporting Otago Polytechnic to achieve a surplus is critical. "I have met Dr Megan Pōtiki a number of times and with the support of a soon-to-appointed establishment advisory group, I am sure Otago Polytechnic will continue to progress along their financial viability pathway. "At that stage, they would not require the support of the federation if they did not wish to use it."
Otago Daily Times
03-07-2025
- Business
- Otago Daily Times
Polytech course cuts tip of iceberg: staff
The Otago Polytechnic has signalled it wishes to discontinue a trio of smaller courses, but staff say these cuts are the tip of the iceberg. In a statement released by deputy executive directors for academic delivery Chris Williamson and for industry training Mark Cartwright, the institution said it proposed changes to three of its programmes — two run out of the Central Otago campus and one run out of the Dunedin campus. They were the New Zealand certificate in outdoor and adventure education (multi-skilled — level 4), Otago Secondary Tertiary College (OSTC) certificate in cookery (level 3) and New Zealand certificate in plumbing, gasfitting and drainlaying (level 3). "Otago Polytechnic is in a situation where we need to ensure the financial viability of our organisation to be able to stand alone, so we can contribute to a strong and sustainable vocational education system," they said. "We are expecting government announcements in July with more details on the future of the sector, including funding, and which ITPs can be established independently from next year." Over the past year, Otago Polytechnic has gone through several waves of restructures in a bid to remain financially sustainable and autonomous. It cut nine programmes late last year, and is in the process of drastically downscaling Capable NZ, which was once the most popular course at the polytechnic. They also expect to sell the Cromwell campus soon. "We are considering leasing out the commercial kitchen while a sale is finalised, and we've been unable to identify suitable alternative premises for delivering this programme in the future," the polytechnic said in regards to the certificate in cookery (level 3) course. Tertiary Education Union organiser Gail Arthur said it felt like a second wave after last year's "big bang" of course cuts. "It feels like the tip of the iceberg. "Because all of these have to be done individually, the effect is cumulative." Ms Arthur said part of the issue appeared to be the lack of marketing of courses since the creation of mega-polytechnic Te Pukenga, which is now in the process of being broken up. "Te Pūkenga disestablished their national marketing team some time ago — last year, I think. "They've since stepped that up again under the individual divisions, but it's almost too little too late. "So, all of the staff have raised that. They're actually teachers, but they've been doing their own marketing — they've been doing Facebook and they've been out there at industry shows. "They've been going out touting for business. We would argue that's not their core mahi." Otago Polytechnic executive director Dr Megan Potiki said while it was focused on achieving financial viability with the aim of standing alone, these evaluation processes would continue irrespective of the government's decision, which was expected this month. "They are ongoing business practices that support the longer-term sustainability of Otago Polytechnic."
Otago Daily Times
23-06-2025
- Business
- Otago Daily Times
Legal action against polytech over job cuts on cards
Two leaked letters show the Tertiary Education Union is gearing up for legal action against Otago Polytechnic over accusations it bungled the slashing of jobs from a groundbreaking department. It comes after the polytechnic confirmed this month it was slashing staff its Capable New Zealand multi-disciplinary programme from 30 fulltime equivalents to nine fulltime equivalents and one managerial position. Capable New Zealand was once the polytechnic's biggest school with over 500 students, but had since dwindled in recent years to about 270 students presently enrolled. The Otago Daily Times has obtained two letters from the union addressed to Otago Polytechnic executive director Dr Megan Pōtiki. The first letter called for a pause of the restructuring process. ''The premise of the consultation — the regional viability report and the student numbers — require further scrutiny. ''It appears that the basis for which a surplus staff has been determined is unreliable, consequently the number of surplus staff in the decision document are also unreliable. ''The decision cannot proceed on this basis. As such, we request a pause on the current process as a matter of good faith.'' While requesting a pause, the first letter also said the union ''reserve our legal rights, should Te Pukenga Otago Division continue on its current course''. ''We would also expect that the workloads for staff who would remain once a determination is made are equitable, reasonable and safe as per the collective agreement.'' The second letter, sent last week, argued Otago Polytechnic had breached good faith in the process by failing to honour the pause, while the staff ratio rationale they used for the restructure was ''unsatisfactory''. ''They appear flawed, the ratios have been changing, and the proposed staffing numbers may not be consistent with workload policies and procedures for staff at Capable NZ. ''The employer needs to establish that there is a requirement yet, following consultation Otago cannot establish a requirement to reduce staff, or if so by how many. Proceeding on this basis is a breach of the collective agreement.'' The second letter said before proceeding any further, Otago Polytechnic ''must provide correct information, give staff the opportunity to comment on it, and establish what requirement to reduce staff may exist''. Dr Pōtiki said yesterday Otago Polytechnic had not received notification of any legal action. ''We are continuing to work with the relevant union [TEU] regarding the next steps of implementation of the outcomes advised. ''The feedback received through the consultation period was carefully considered by the review team, and resulted in several changes being made to the final outcome to reflect staff concerns about the future structure of Capable NZ. ''Otago Polytechnic is continuing to work with staff and students to ensure a smooth transition and minimal disruption to studies.''
Otago Daily Times
16-06-2025
- Politics
- Otago Daily Times
Claim govt setting up polytechs to fail
The government has been accused of setting up polytechnics to fail after the revelation that almost one in 10 jobs have been cut in the past year. Papers released under the Official Information Act showed staff figures at Te Pukenga dropped from 10,480 in 2023 to 9625 in 2024, a cut of about 8%. While the data did not break down into individual units, the information comes as Otago Polytechnic looks to slim down, announcing changes to the Capable NZ programme last week, and cutting nine courses before last Christmas. Te Pukenga was formed in 2020 by bringing together the country's 16 institutes of technology and polytechnics (ITPs). Green MP Francisco Hernandez said the staff cuts had been demoralising. "The damage of the government's destructive reforms to Te Pūkenga and their underfunding of our tertiary sector are being felt right across the country, with nearly one in 10 jobs being lost at Te Pūkenga. "These cuts will not just hurt staff and students but also the regional communities that depend on Te Pūkenga to deliver skills, jobs and training to our regions." He said communities were already feeling the impacts. Recent reports of cuts to Capable NZ were on top of cuts already made to courses such as the horticulture, health and English language programmes. "Instead of forcing critical polytechs to cut staff and programmes to stay afloat under the government's new model, the government needs to recognise the valuable work that polytechs and universities do and give them the resourcing and support they need to succeed." The government introduced legislation breaking up Te Pukenga last month, but it is not yet known which polytechnics would stand alone and which would be absorbed into the federation model. Vocational Education Minister Penny Simmonds said the government asked the Tertiary Education Commission to work with Te Pūkenga to support polytechnics in reviewing their operations — an exercise that "really should have taken place when Te Pūkenga was established", she said. "While the operational decisions are made by the institutions themselves, I believe it's appropriate that each polytechnic is taking the steps needed to ensure their long-term viability. "These decisions are never easy, but they are necessary to build a more stable and sustainable vocational education system." Asked about the potential loss of institutional memory at the polytechnics, Ms Simmonds conceded it could be an issue. "We need to ensure that as we transition into a new system, we retain the best of what our institutions and people have built over time. "That's why we are taking a measured approach to reform — ensuring there is continuity, while also creating a system that is better aligned with the needs of learners, employers, and regional economies." Tertiary Education Union assistant general secretary Daniel Benson-Guiu said the "real concern" was that nothing had been formally established to replace Te Pukenga. Several "strategic" courses had already faced cuts, he said. "We would like to see a vocational education system that can cater for all of the communities. "With these cuts, the government is setting itself up to fail." Ms Simmonds said the reforms to the system would make it more efficient. "It will be up to each polytechnic to manage its workforce in a way that reflects its financial situation, enrolment patterns, and local training needs. "Under the new system, I expect institutions to be more accountable and better equipped to make prudent, forward-looking staffing and operational choices."
Otago Daily Times
06-06-2025
- Business
- Otago Daily Times
Capable NZ set to lose 20 jobs
Otago Polytechnic staff are feeling "like stunned mullets" after the institution cut 20 jobs from a ground-breaking department. Staff were informed of the decision on Thursday to cut the Capable NZ department from about 30FTEs to nine FTES and an additional head of college role, after a proposal was put forward in March. Despite staff fighting for more jobs to be kept, management at Otago Polytechnic agreed on a rate of job cuts very similar to the March proposal. A staff member, who did not wish to be named, said people were "like stunned mullets" when they heard the news. "We expected a bit of pain, but nothing of this level. "The staff will try to teach the material to a gold-standard level, but it becomes increasingly difficult with far less staff support." Capable NZ allows students to apply and start any time and complete the required work from anywhere in New Zealand. Qualifications earned through Capable NZ have the same value as those earned through normal Otago Polytechnic programmes, or other tertiary institutions. Capable NZ had at its height more than 500 students. This had dropped to about 270 last year. The polytechnic blamed the ongoing effects of Covid-19 and the fact it was a politically fraught environment. Otago Polytechnic deputy executive director Mark Cartwright said "despite the change in structure, it's important to emphasise there will be no cuts to existing programmes". "We believe Capable NZ provides an important and meaningful service to our community and are committed to its continued delivery. "The purpose of the change is to ensure we are operating in a financially sustainable way. "We will move the Capable NZ department and all of its programmes to sit under Te Maru Pumanawa (TMP), our College of Creative Practice and Enterprise." Former Otago Polytechnic chief executive Phil Ker said this week's announcement of cutbacks to Capable NZ, "represents a real vote of no confidence" in the department. He said many of the problems could be traced back to the merging of the country's 16 Institutes of Technology and Polytechnics (ITPs) into the mega-polytechnic Te Pukenga. "At the advent of Te Pukenga, Capable NZ was the largest school at Otago Polytechnic, with nationwide coverage and offering highly innovative and unique programmes. That was why it had so many staff. "So, clearly it's fallen on hard times. What I am aware of is that there was considerable neglect on the marketing and promotion front across many aspects of Te Pukenga. "I've got no doubts that Capable NZ would have suffered from that." Mr Ker said despite these barriers, he was confident Capable NZ could rise again if managed properly. "The Capable NZ approach, which is at the undergraduate level, is still highly innovative in a global context, let alone in a New Zealand context. "It offers access to degree-level qualifications for people in work. That is as cost-effective as you can get. "So it seems to me that any downturn could easily be counteracted by a well-planned and well-focused marketing and recruitment programme." Staff told the Otago Daily Times they were worried about the bulk of the programme's institutional memory disappearing. Tertiary Education Union assistant secretary Daniel Benson-Guiu said Capable NZ was unique to Otago Polytechnic in that it was neither an "on campus" course or a "work-based learning" course. "People flocked to it outside of the polytechnic's catchment area," Mr Benson-Guiu said. "A programme like this allows the polytechnic to have a more national focus, which is what's needed to ensure student numbers remain good." Vocational Education Minister Penny Simmonds is due to make an announcement next month about which polytechnics will become autonomous and which ones remain in a "federation" model. Otago Polytechnic has frequently expressed a desire to become autonomous again. Mr Cartwright said Otago Polytechnic needed to "ensure the financial viability of our organisation to be able to stand alone". Asked about Mr Ker's comments about the job cuts being a "vote of no confidence" in Capable NZ, Mr Cartwright said "this difficult decision is in no way a reflection of the amazing work the team does, or the unique products they offer". "It is the result of steadily declining enrolments. The changes will ensure we are able to continue to provide these products and services in a financially viable way."
