Fire and Emergency New Zealand (FENZ) is warning of very high to extreme wildfire danger across parts of the country as a heat wave sets in, prompting fresh risk considerations for insurers already watching an ongoing pay and staffing dispute with career firefighters.
Multiple districts face spike in fire danger
On Jan. 10, FENZ said updated forecasting showed Mid-South Canterbury and Otago joining a band of regions expected to face extreme fire risk conditions over the coming weekend. Deputy chief executive prevention Nick Pyatt said the at-risk areas included Northland, Tairāwhiti, Hawke’s Bay, Wairarapa, Marlborough, Canterbury, Mid-South Canterbury, and Otago. The risk profile is being driven by a combination of high temperatures, strong westerly winds, and very low humidity. In this environment, relatively minor ignition sources can escalate quickly. “97% of wildfires in Aotearoa New Zealand are started by people. This means the public has a significant role to play in how the next few days go,” Pyatt said.
FENZ is asking people to avoid lighting fires and to delay any spark- or heat-producing work near vegetation, including activities such as grinding, cutting, or using machinery in dry grass and scrub. “Under these extreme conditions, one spark can start a fire that will spread rapidly, be extremely difficult to control, and potentially cause significant damage,” Pyatt said. He also asked landowners and residents who have burned vegetation in recent weeks to re-check those sites. “Do not leave it to chance. If you’re not sure, apply plenty of water to the area. Reignition of old burns is a common cause of wildfires and is preventable,” he said. FENZ expects fire danger to remain very high in Southern Hawke’s Bay and Wairarapa in the coming weeks because of ongoing strong north-westerly winds and little forecast rain.
Strike activity overlaps with peak summer risk
The fire weather alert follows an hour-long strike on Jan. 9 by members of the New Zealand Professional Firefighters Union (NZPFU), the eighth in a series of one-hour stoppages linked to stalled bargaining over the union’s collective agreement. In an update on the Jan. 9 action, FENZ said it received 22 incident calls between 12pm and 1pm, of which 12 were in areas affected by the strike. Five related to fire alarms that did not result in a fire, while three calls from the public reporting possible fires also did not involve actual fire events. One request for assistance from police did not require FENZ attendance. FENZ also recorded a small shed fire that was put out by the owner before volunteer crews arrived to confirm it was extinguished, and a burn pile that FENZ said was being safely managed by the landowner.
The same period included a significant fire at a commercial premises in Pakuranga. FENZ said it was first notified at around 12:07pm. Deputy national commander Megan Stiffler said the location meant it took about 30 minutes for the nearest volunteer crews to reach the scene. “The nearest paid firefighter station is Mount Wellington. Following the one-hour strike, they arrived on scene within four minutes,” Stiffler said. She said the incident underscored FENZ’s request that industrial action be paused while the parties are in facilitation with the Employment Relations Authority (ERA). “This is exactly why we have repeatedly asked the NZPFU to call off these strikes while we are in the process of facilitation with the Employment Relations Authority,” she said.
Referring to public commentary by the union about the incident, Stiffler said: “As a career firefighter, I am appalled to see the NZPFU use someone’s tragedy as a punch line.” She said FENZ had previously sought “to establish a process to which we can call on paid firefighters for more serious incidents” and that this had been rejected by the union. “The NZPFU is the one gambling with the public’s safety,” Stiffler added. Stiffler also acknowledged the contribution of volunteers and control staff during the strike hour. “I want to thank our 11,800 volunteers across the country, and their employers, for supporting them to respond over today’s strike hour,” she said, also thanking operational commanders and communication centre managers. FENZ has again called on the NZPFU to halt further one-hour strikes scheduled for noon on Jan. 16 and 23.
Union disputes FENZ position on funding and conditions
The NZPFU has challenged FENZ’s public account of both the bargaining process and the organisation’s resourcing. National secretary Wattie Watson has told union members that the NZPFU will participate in facilitation “in good faith, as we have all bargaining,” but alleges that FENZ “continues to put false information in the public arena” and has said the union will “use this opportunity to expose any such dishonesty before the authority member.” Watson has pointed to “distrust and the plummeting morale in the workplace” and has argued that pay outcomes by themselves will not resolve broader issues affecting relationships and culture within FENZ.
The ERA referred the dispute to facilitation on Dec. 5, with initial sessions on Dec. 9 and 10 and further meetings planned. The scope of the dispute includes remuneration, staffing, equipment, and wider workplace settings. Before facilitation began, FENZ’s last public offer was a 6.2% pay increase over three years for paid firefighters. The agency said this would increase average senior firefighter base salaries from about $80,700–$87,400 to $85,800–$92,900, excluding overtime and allowances, with overtime and other allowances currently averaging $38,800 annually. FENZ has characterised the package as “fair, sustainable, and reasonable, and in line with other settlements across the public service,” and has outlined spending on fleet, station infrastructure, and training. It has said more than 90% of its $857.9 million operating budget for 2025/26 is allocated to frontline operations and supporting roles.
Funding model and levy settings in focus for insurers
For insurers, brokers, and risk managers, the convergence of heightened wildfire danger, constrained availability of paid crews during strike windows, and uncertainty over the eventual settlement raises both near-term and structural questions. FENZ is largely funded through insurance-based levies, with about 95% of its operating income collected via charges on home, contents, and motor policies, and the balance from government and other sources. The organisation reports around 14,900 personnel, a fleet of roughly 1,300 appliances, close to 600 stations, and approximately 89,000 incident responses a year. Any settlement that leads to a sustained lift in operating costs – through higher pay, altered rosters, increased staffing, or further fleet and station investment – has the potential, over time, to put upward pressure on the fire and emergency levies embedded in property and motor premiums.
In the shorter term, with FENZ signalling extreme fire conditions in several districts and industrial action still on the calendar, insurers may look to:
For New Zealand’s insurance sector, the combination of climate-related hazard exposure and the stability and funding of levy-funded emergency services remains a key factor in pricing, underwriting, and portfolio risk management as the summer progresses.
Insurance Business NZ
