The Accident Compensation Corporation (ACC) has suspended its plan to increase in-office workdays for staff, following legal action initiated by the Public Service Association (PSA). The ACC has commenced a consultation process with employees regarding proposed changes to its flexible working arrangements.
ACC had intended to require its workforce to be present in the office at least three days each week starting Dec. 1, up from the current two-day minimum. This announcement led the PSA to file a case with the Employment Relations Authority (ERA), contending that ACC had not adequately engaged with staff before implementing the new policy.
In response, ACC has informed employees that the proposed changes are on hold and that a two-week consultation period will commence. Fleur Fitzsimons, national secretary for the PSA, welcomed the move: “This is the right call in response to the PSA’s recent litigation. We’re pleased ACC has acknowledged that workers deserve a genuine opportunity to have their say on changes that affect their working lives.”
Fitzsimons highlighted the significance of flexible work for many employees, particularly those with caregiving responsibilities or health concerns. She added: “The original decision upset many workers, particularly some who had made decisions to join ACC based on its approach to working flexibly. That’s why the PSA lodged action with the Employment Relations Authority to force ACC to pause the new policy and talk to workers.” The PSA has stated that it expects ACC to consider staff feedback and retain existing flexible work policies. Legal proceedings with the ERA continue during the consultation period.
This development follows the release of an independent review into ACC’s workplace culture, commissioned by the board and conducted by Pip Muir of Simpson Grierson and Doug Craig of RDC Group. The review, which gathered feedback from hundreds of staff members, aimed to assess whether ACC’s policies and practices are appropriate for the workplace.
The findings indicate that employees continue to focus on ACC’s organisational objectives, but there is uncertainty about the organisation’s strategic direction. The report also identified challenges related to ACC’s hierarchical structure and the complexities associated with remote and hybrid work arrangements. Staff experiences varied, with some describing supportive environments and others noting that outcomes often depend on individual managers and that inappropriate behaviour is not always addressed.
The review did not find the culture to be toxic but noted it is not uniformly positive. Issues cited include inconsistent leadership, gaps in accountability, and a lack of trust in the internal complaints process. Additional areas for improvement were identified in human resources policies, diversity, and recruitment methods.
ACC’s dual identity as both a public sector agency and insurer was highlighted as a complicating factor. The review also found that policies on inappropriate conduct, including bullying and harassment, are incomplete and that reporting mechanisms require strengthening.
ACC stated it has begun work on several recommendations and is developing an action plan to address the review’s findings. The executive team said it will prioritise measures related to workplace culture and staff safety.
In a separate announcement, ACC has named Dr. Debbie Holdsworth as its new chief clinical officer, effective Dec. 15. Holdsworth has worked in both the public and private health sectors, most recently as director funding, community, and mental health at Health New Zealand | Te Whatu Ora. She is also the president-elect of the Royal Australasian College of Medical Administrators.
Holdsworth holds medical and health management qualifications from the University of Auckland. Her appointment is expected to enhance ACC’s clinical leadership as the organisation addresses ongoing workplace and operational priorities.
