The Canterbury District Health Board (DHB) is privatising a service for mental health patients, resulting in the loss of about 20 jobs.
The DHB last week told work assessment and rehabilitation staff and patients the service would close early next year and a private provider found to deliver a similar service, the National Union of Public Employment convenor Paul Shennan said.
"The problem with this is that this group are at the high and complex end and it is not even known whether a private provider exists that will have the ability, expertise or will be funded sufficiently to deliver such a service," he said.
"It does seem premature to announce this closure when a competent provider may not even exist."
The staff carried out jobs including assessing patients, planning treatment and helping their transition to discharge.
They ran activities such as art, gardening and woodwork and for some of the patients were a big part of their social contact, Mr Shennan said.
"The news to contract out this service is unsettling and concerning to the consumers their families and of course to he staff who have had their positions disestablished."
The staff were due to break for Christmas shortly and were expected to only return to their jobs for a short time in January, before the service was closed, he said.
The DHB could not be reached for comment.
NZPA