It comes after Otago Polytechnic confirmed last week it would reduce the Capable NZ department from 30 fulltime equivalents (FTEs) to nine FTES and a new management position.
The polytechnic has argued this was in response to a declining roll and changed priorities since the creation of Te Pukenga, but staff have distributed a newsletter outlining a range of concerns with the action.
"Despite assurances made publicly and in communications to students, the process has not upheld the standards of transparency, good faith or evidence-based decision-making expected within the tertiary sector," the letter said.
It also accused Otago Polytechnic of making key staffing decisions using outdated or partial data, "with no provision for month-on-month recruitment trends or acknowledgement of Capable NZ’s rolling intake model".
Capable NZ allows students to apply and start any time and complete the required work from anywhere in New Zealand.
At its peak, it had more than 500 students across the country, but the polytechnic estimates it now serves about 270 students.
But the staff newsletter said its most recent numbers were misleading.
"Enrolments in May alone — 28 new ākonga [students] — were not included in the rationale for staff reductions.
"Forward planning for ākonga support across the rest of 2025 appears absent, creating risk to learner wellbeing and educational continuity."
The staff newsletter said the decision-making process had left both staff and students uncertain, "despite public claims of continuity and stability".
"Staff maintain that a pause is needed to re-evaluate the evidence base, ensure transparent modelling and honour the ethical duty of care to learners.
"Without such steps, Capable NZ staff and their union representatives might be prepared to escalate the matter through legal and public channels, including an application to the Employment Tribunal."
In response, Otago Polytechnic deputy executive director Mark Cartwright said the process followed for the review of Capable NZ was "consistent with all review and restructuring decisions we have followed for other formal reviews over the last two years".
"Student numbers vary considerably during the process of application, enrolment and acceptance, therefore they are not definitive to rely on for budgetary purposes.
"All our reviews look at trends from previous years as well as current enrolled learner numbers.
"Otago Polytechnic notes that in order to maintain a fair and balanced review process, formal planning for ākonga support could not be pre-empted."
He said the polytechnic engaged with staff and the relevant union throughout this process, "resulting in several member-initiated extensions to allow additional time for submissions, along with a delay in the final decision outcomes being communicated".
"The feedback received through the consultation period was carefully considered by the review team."
Vocational Education Minister Penny Simmonds has been leading the break-up of mega-polytechnic Te Pukenga, and is due to make an announcement next month as to which polytechnics become totally autonomous next year.
Otago Polytechnic has frequently said it wants to return to being autonomous.
Over the past year, it has made cuts to several courses in an effort to remain financially sustainable.
