A union is up in arms about privatisation at one of the nation's tertiary providers.

Up to 300 jobs could be axed at Auckland's Unitec over the next three years.

MORE: Unitec could cut 300 jobs

Under the proposal 90 current jobs will be disestablished in coming months, as the tertiary institute contracts out some of its student services to global private company Concentrix.

However there would be about 50 new roles available.

Tertiary Education Union branch president Sid Aksoy said the proposal privatises large parts of the polytechnic.

He believes staff and students will suffer first, but as with the recent Serco prison debacle, taxpayers could be impacted too.

Sid Aksoy said over the next few years 200 to 300 jobs could go "so there is a bit of a squeeze going on, and that squeeze will be on different levels. There will obviously be academic staff members affected from that."

He thinks it's the direct result of government underfunding, and said staff are in shock at the magnitude of the proposal.

"Privatisation doesn't work, and you should really not experiment with students."

The union is meeting weekly with management over the changes.

It is also holding departmental meetings with all its members over the next few weeks to seek their views.

However, Unitec Chief Executive Rick Ede said they're definitely not privatising Unitec.

"We're simply using a service provider to provide services, as we do in other areas supporting our students."

"Privatisation is completely the wrong word to use here."