Callaghan Debacle: 176 Science Workers Left Hanging As Govt Botches Its Own Policy – PSA

Eighteen months after announcing it would disestablish Callaghan Innovation, the Government has failed to pass the legislation needed to do it – leaving 176 workers with no idea what their future holds.

Then Science Minister Shane Reti stated in writing that Callaghan Innovation would be wound up by 30 June 2026. That deadline is fast approaching yet not a single piece of legislation has been introduced to Parliament.

A Budget allocation of $28 million to keep the agency running for another year is the only concrete outcome of 18 months of planning.

“This is a fiasco of the Government’s own making,” says PSA National Secretary Fleur Fitzsimons.

“It announced the closure of Callaghan Innovation without a clear plan for where many staff would go, without legislation to make it happen, and without any apparent understanding of what it would take.

“It has disestablished over 100 roles in that time, an appalling loss of expertise, and devastating for the workers who were made redundant. But eighteen months on, the lack of a final plan for closure means the remaining 176 workers are in limbo still. It’s disgraceful.”

A total of 80 of the remaining staff were told transfers to other agencies – including the Bioeconomy Science Institute, Earth Sciences NZ, MBIE, and the new Advanced Technology Institute – would proceed on 1 July 2026. Those transfers are now delayed indefinitely, with no legislation in sight and no date confirmed.

A further 96 staff have no confirmation on a transfer to another agency and could face redundancy, but with no certainty at this stage on what is coming next for them. Some have been waiting 18 months to find out if they still have a job.

“Some are waiting to transfer. Some are waiting for a redundancy. Some have no idea at all what happens to them. Every single one of them has been left in this position by a government that failed to do the work before making the announcement.

“The Government loves to talk about reforming the public sector and cutting 8,700 jobs. But it can’t manage the disestablishment of a single agency with 18 months’ notice. What does that tell you about its ability to deliver anything?”

The PSA is calling on the Government to urgently provide Callaghan Innovation staff with clear timelines and certainty about their employment.

“These are skilled science workers and researchers who have given years of service. They deserve better than this shambles. The longer this drags on, the more of them will vote with their feet and leave for countries that actually value what they do.”

The Public Service Association Te Pūkenga Here Tikanga Mahi is Aotearoa New Zealand’s largest trade union, representing and supporting more than 95,000 workers across central government, state-owned enterprises, local councils, health boards and community groups.