A union representing government employees says it does not see the logic in the formation of the Ministry of Business, Innovation and Employment.
The 'super ministry' will take over the functions of the ministries of Economic Development, Science and Innovation, and the departments of Labour, Building and Housing from July this year.
Economic Development Minister Stephen Joyce says there will be up to 130 job losses as a result of the merger.
Public Service Association national secretary Brenda Pilott says it has problems with the new ministry's functions.
"We stil don't understand the logic between attaching the Department of Building and Housing to this new agency.
"There are well-publicised concerns about the whole labour function - it's a department that's been a standalone department for 120 years and it's going to be moved into a business facing agency."
Ms Pilott says the union will be doing as much as it can to save jobs from being lost because of the merger.