Alberta Health Services says it plans to save $66 million by not filling 660 current vacancies.

Alberta Health Services president Stephen Duckett spoke to the Alberta Association of Municipal Districts and Counties on Tuesday. (CBC)"We're able to run the system right now without that staff, and so what we're saying is that these can be savings," said Stephen Duckett. the president and CEO of the provincial health authority said Tuesday.

Another 550 employees have been identified for early retirement through the recently announced voluntary exit program.

The health authority will not make any projections on whether layoffs will be needed until after the voluntary retirements are made final and the vacant positions are cut.

The president of the United Nurses of Alberta said the union is not recommending employees take the offer, unless they were already planning to retire.

"We seriously disagree with Alberta Health Services, in terms of their approach to the workforce," Heather Smith said.

"The voluntary exit is happening at a time when we believe there should be recruitment and retention initiatives, not incentives to have fewer employees, fewer health-care workers, than we currently have."

The move to get rid of staff flies in the face of an advertising campaign earlier this year that tried to entice retired nurses to return to work, Smith said.

"What we have had since that time is not just a squealing of the brakes, but a very abrupt reversal in the approach to health human resources and planning," Smith said.

"And as I said, we've gone from 'We want you to stay,' to 'Please go away.'"

The announcement is the latest in a number of measures taken by Alberta Health Services to try to reduce a projected $1.3 billion deficit.

Cuts in facilities management, procurement and administration are expected to save $227 million this year and $660 million in the 2010-2011 fiscal year. None of the cuts have affected clinical areas so far, Duckett said.