The Government has announced it will allow 2000 horticultural workers from the Pacific to enter New Zealand in the new year under strict conditions, in the first significant opening of the border to foreign workers since the Covid-19 pandemic hit.
Under the Registered Seasonal Employer (RSE) scheme, workers from various Pacific Island nations will be allowed in between January and March next year to help plug labour shortages in the horticultural and wine sectors.
However, employers must meet a set of strict criteria. Companies will be required to cover the cost of managed isolation, currently estimated at $4722 per person in addition to paying the workers a minimum of $22.10 an hour.
They will also be required to pay workers for a 30-hour working week while in isolation.
It is the single biggest economic-based border exception to date, second only to an exception created for critical health workers.
Agriculture Minister Damien O’Connor said the Government had listened to concerns raised by the sectors facing a labour crunch.
“We accept they need help to meet labour shortages that threaten harvests this coming season, so we are acting to allow up to 2000 experienced RSE scheme workers to come to New Zealand from certain Pacific Island countries,” O’Connor said.
“As there is limited capacity in Managed Isolation Facilities (MIQ), entry will be staggered, with workers coming in groups, starting from mid-January, to avoid peak holiday demand from New Zealanders wanting to return for Christmas,” O’Connor said.
The Government said it was working with industry representatives to determine how many workers each employer could get. Workers were expected to be moved around regions and employers with the greatest need and to meet harvest requirements that have not been otherwise filled.
The Government had already reserved spaces for the RSE workers in its isolation facilities, and there would be very limited availability for the rest of the year. The vast majority were still being used for returning New Zealanders.
“We've been working with the sector for quite a long time trying to get the balance right,” Immigration Minister Kris Faafoi told Stuff.
While acknowledging that the sector will be left “quite a bit short” of the desired number of workers, Faafoi said the process was pragmatic and the Government was still working on ways to get Kiwis into the jobs.
“I take my hat off to them, I think we’ve got quite a good balance,” Faafoi said, saying that the sector had responded well to paying workers while in isolation and agreeing to the Government’s pay rates.
Faafoi also confirmed that the Government currently had no plan for a large scale exemption for agricultural workers, but pointed to about 60 shearers that recently got exemptions to come to New Zealand. He said it was “a balance of woking with the sectors” while also managing capacity in isolation facilities.
Faafoi said the exemption would also help New Zealand’s Pacific Island neighbours whose economies have been hit hard by Covid-19, as their seasonal workers provided important remittances.
Along with changes that allowed 6000 RSE and 13,300 travellers with Working Holiday Scheme visas to remain in New Zealand, the border exceptions offered a range of help to reduce labour shortages in market gardens, orchards and vineyards, he said.
“We have also made changes to allow visitor, student and work visa holders currently in New Zealand to apply for Supplementary Seasonal Employment (SSE) visas if they have a job offer from an eligible employer or if the job is on the Ministry of Social Development list.
“To streamline the application process, the Government is removing requirements for police and medical checks for these visa applications,” Faafoi said.
The exception will only open to Pacific Nations due to New Zealand’s relationship with the pacific and the importance of remittances. Countries such as Thailand and Indonesia would not be eligible, despite legacy participation in the RSE scheme.
HortNZ chief executive Mike Chapman said the industry was appreciative and growers relieved by the decision to allow workers into the country, but noted the timing meant that spring and early summer crops had already missed out.
“Asparagus, strawberries and other vegetables – we’ll be keen on making sure there’s a package in place for [those growers] next spring. It’s been a really tough season for these people.”
The extra costs imposed on growers for MIQ and a minimum hourly rate was the “best deal on the table”, and it would be up to individual growers as to whether they would take the offer up.
“Horticulture has an enormous contribution to make to New Zealand’s economic recovery if it can pick and pack its crops when they are ready to harvest so they can be exported in top quality condition and command premium prices,” he said.
While the sector was prioritising employing New Zealanders, and more of them would be available this season, it was still facing a significant shortfall, which as yet it could not quantify.
The Government advised there would probably be only a limited number of other non-New Zealand exceptions for this period, but they would be considered if there were critical workforce gaps that could not be filled domestically.