By Gill Bonnett, Immigration Reporter, rnz.co.nz and is republished with permission
- RSE workers’ costs should be more fairly shared with employers and government, report finds
- Policy being reviewed by MBIE, including workers’ shared accommodation
- Concerns over ‘blacklisting’ of workers who raise grievances
An international report into New Zealand’s seasonal worker scheme says reform is needed to bring down migrants’ costs, and protect them from abuse.
The government says its own review of the Recognised Seasonal Employer (RSE) programme will consider the report’s recommendations, as well as the views of employers and Pacific partners.
The International Labour Organization (ILO) report calls on the government and employers to cut migration costs to shoulder a more equitable share of costs including transport, accommodation and set-up costs.
More than 20,000 workers arrive each year from the Pacific, filling jobs in horticulture and viticulture such as fruit-picking.
The ILO report recommended workers be allowed to change their Recognised Seasonal Employer (RSE) more easily and have free access to healthcare.
In particular, it highlighted that workers who raised issues were “vulnerable to blacklisting” when it came time for possible re-hiring for another season. It pointed to a previous study which found RSE workers were unlikely to make formal complaints, due to fears of being perceived as troublemakers and out of cultural respect for authority.
RSE workers who were dismissed from employment lost their right to remain in New Zealand, and the report-writers found no information on being able to change employers in material provided to RSE workers.
The Ministry of Business, Innovation and Employment (MBIE) said that transfers to new employers were possible on a case-by-case basis – if requested by an employer, the labour inspectorate, an engagement partner, or a Pacific liaison officer.
The report questioned how accessible and effective those channels were for workers wanting to report exploitation or other grievances.
Following the release of the previous ILO report four years ago, Australia had adopted a recommendation to disincentivise employers from deducting unreasonable amounts from workers. It now had a minimum take-home salary of AU$200 per week.
The latest report recommended New Zealand should adopt the same policy and also noted labour hire companies were not subject to a general licensing requirement.
It called for a review of the participation of women and other underrepresented groups in both work schemes.
“Further strengthening these schemes in line with international labour standards will help ensure their long-term success and benefit workers, employers and countries of origin and destination alike,” said ILO Pacific office director Martin Wandera.
An unconnected surveyconducted by MBIE and representing a quarter of RSE employers suggested many went beyond their legal and pastoral obligations to help staff. Of the employers who responded to the survey, more than half had helped fund or organise full or partial containers sent back to workers’ home countries.
Supplies included building materials, tools, water tanks, solar panels, generators, school supplies and household goods – and assistance in the wake of disasters was also common.
Accommodation
The ILO report found protections already in place in New Zealand included a ban on charging recruitment fees. But it said many workers were in debt when they arrived – to employers, as well as banks, governments and family back home – because of travel and documentation costs.
“MBIE undertakes direct monitoring of employer deductions, though the details of what is considered ‘reasonable’ could not be found in the documents made available for this review,” it said.
Employers often provided accommodation to their workers, and a new framework set out the basic standards, as well as how much they could charge for better lodging.
The government said in January it was allowing higher rent caps – inflation-increased each year – to encourage employers to invest in better-quality accommodation.
Weekly caps from $150 to $211 had been introduced this month – the maximum rental charge depended on the accommodation quality and features, such as the number of people sharing a bedroom, the age of the building and bathroom proximity.
But in an update last month, INZ said employers would be given a transitional period of up to two years if they were currently charging a higher amount than they would be able to under the new methodology.
“Employers will only be able to recover the actual cost of providing accommodation, and all charges must be reasonable,” it said. “Employers must still comply with employment law, including the Minimum Wage Act and the Wages Protection Act, and employers remain responsible for ensuring accommodation deductions are lawful.”
RSE review
The government-set cap on RSE worker numbers had risen from 5000 when the scheme started in 2007 to 20,750 last year.
Most came from 13 Pacific countries, although latest (pre-pandemic) figures show employers also recruited other nationalities, such as Filipinos and Malaysians.
In 2022, the-then Equal Employment Opportunities Commissioner Karanina Sumeo said she witnessed slavery-like conditions and said the RSE scheme was being run in a way that allowed modern slavery to take place.
In 2024, the government removed the requirement that RSE workers be paid 10 percent above minimum wage.
They now had to have worked at least two seasons before the additional 10 percent was applied. However, the average number of seasons worked was below three, according to research by the Development Policy Centre’s Charlotte Bedford, who said New Zealand was languishing behind Australia in worker protections and wages for RSE workers.
MBIE said its review was considering the ILO’s report and recommendations, as well as input from employers and Pacific nations to ensure that the RSE scheme continued to benefit workers, their source countries and the horticulture and viticulture sectors.
“The scope of this review is broad, spanning employer and compliance settings, labour market settings and the visa itself,” said its policy manager Sam Foley. “Accommodation quality standards are being considered in the policy review which is currently underway.”
