As reported, the diocese has proposed a restructure of the CSO's leadership and teams. It would keep all education roles within a distinct unit and transfer non-education roles to the relevant area within broader diocesan teams.

Independent Education Union of Australia NSW/ACT branch Newcastle organiser Therese Fitzgibbon said members were concerned about the "nonsensical" proposal to transfer psychologists, counsellors and student support unit staff to CatholicCare, the diocese's social services agency.

She said it was unclear what location these roughly 50 staff members - currently based in schools - would work from, if their role descriptions would broaden, and if they would be as readily available to schools.

"The psychologists and counsellors that work in schools are very much educationally focused and they are a critical part of school wellbeing," she said.

"Any concerns that have been raised by schools in relation to an absence of support stem from a lack of numbers of psychologists, it does not stem from the structure... that group of members are critical to education and should be located in the proposed new education unit, not CatholicCare.

"The nature of their work is different, the conditions under which they work is different and their role is very different from what a psychologist may provide to, say, a child living in out of home care."

Ms Fitzgibbon said it was "critical" too that student support unit staff, who help children with additional needs, "link in to schools and are an integral and central part of schools".

She said there was a question mark over industrial agreements.

"If the CSO ceases to exist what does that mean for their employment coverage? We know the psychologists working in CatholicCare have very different salaries and conditions to those working in schools."

She said the union was also concerned about financial implications.

"If you have a psychologist working in a school they are paid out of education funding," she said. "If that person ceases to be employed under education funding but becomes an employee of the diocese does that mean that the diocese then charges the schools for the use of that psychologist at market rates?"

The diocese was contacted for comment. A spokesperson for the diocese said last week that it was in a period of consultation.

The IEU will meet with principals on Monday.

"If the proposal does involve removing psychologists and counsellors from schools it is at a dire risk to student wellbeing," Ms Fitzgibbon said.

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