The Dunedin City Council says it hopes to save up to $500,000 annually by contracting out water and wastewater pipe maintenance.
The council says about 30 staff will be affected by the changes, but most could be transferred to a contractor with the same employment conditions.
An Amalgamated Workers Union official, Stephen Scandrett, says outsourcing always has the potential for workers to be disadvantaged and the union will work with the council to help those affected.
The council says it will still have full control over the water network and hopes the move will save it between $350,000 and $500,000 a year.
