Forum builds momentum for RSE

The Department of Labour hosted a two-day forum in February to review the first 12 months of the Recognised Seasonal Employer (RSE) policy.

Representatives from the horticulture and viticulture industries, employers and workers, government officials and delegates from Kiribati, Samoa, Tonga, Tuvalu and Vanuatu attended a Department of Labour forum in Wellington on February 11-12 titled Getting the best out of RSE. Representatives from the World Bank also attended.

Discussion centred on what areas of the policy have been successful and what areas need further development to ensure ongoing success. “The forum provided the opportunity for all parties affected by the policy to air their views on how it has gone in the first 10 months,” says Kerupi Tavita, the Department of Labour’s Group Manager Service International. “There were a number of issues identified, but the overwhelming feeling is one of strong support for the policy and a genuine determination by all to make sure it carries on well into the future. Kerupi adds his Department will take the information gathered and develop a way ahead for the policy, working out ways to make the process simpler and ensure it remains a win-win situation for all parties.

“We have seen significant successes from the policy, from employers who have been able to meet their seasonal labour needs for the first time in many years, to workers who have been able to earn enough money to build new houses in their home countries and improve their standard of living,” he says. “This is a policy that has so much scope to provide significant benefits to New Zealand industry and the development of Pacific nations. Once we iron out the wrinkles this policy will be one all New Zealanders can be proud of.”

The event was followed by the World Bank forum: Labour Mobility in Distant Lands which concluded on 14 February.

Mary Anne Thompson and Tofilau Kerupi Tavita from Dept of Labour

FORUM FINDINGS
The forum involved free and frank discussion on a number of issues relating to the RSE policy. It identified what has been working well and areas where the current policy can be improved.

SUCCESSES
All five of the “Kick Start States” (Kiribati, Samoa, Tonga, Tuvalu and Vanuatu) have been engaged in the scheme and have workers currently working in New Zealand. At the end of the first 12 months of the RSE policy it is estimated almost 5000 Pacific workers will have been engaged under the scheme.

Robust communication methods are in place between New Zealand and Pacific Islands Governments, employers and industry representatives. Travel solutions – Employers recruiting from Tuvalu and Kiribati pay half of the return airfare from Fiji.

Plans to set up regional Transitional RSE Co-ordinators are underway. RSE is providing a reliable workforce: Feedback from early adopters of RSE’s indicate that while initial investment and costs are high to source workers under RSE, they have experienced less stress and visible outputs in having a reliable workforce.

ISSUES & LONG TERM PLANNING
Pastoral care – need identified for funding pastoral care for workers while in New Zealand. Employers need to provide full information to workers about deductions and what actual take-home pay is likely to be before workers arrive in New Zealand to help manage expectation.

There is documented evidence that the worker shortage will continue. Proposal raised for a five-year planning cycle to allow a more considered approach to sourcing labour from the Pacific. Policy flexibility – need identified to review the current policy and identify where more flexibility can be injected to allow a greater utility for both workers and employers. Communications – need identified to raise the profile of the RSE policy to raise participation levels from both Pacific states and employers.

Jerf Van Beek, Peter Silcock from Horticulture NZ with Dr Janjula Luthria, Senior Regional Economist for World Bank's Pacific Islands Operation

FORUM PURPOSE
The February forum followed up on discussions held with Pacific states and industry in December 2006. The first forum commenced discussions on arrangements for implementing the Recognised Seasonal Employer policy. Discussions centred on how each kick start Pacific state could establish a work-ready pool of workers from which New Zealand can recruit. It also provided an opportunity for horticulture and viticulture employers to talk with Pacific states about things that are important to their needs and to also link with other supporters of the scheme such as the World Bank and the Council of Trade Unions. The second forum examined the progress and implementation of the outcomes from the fi rst Forum, lessons that have been learned and ways forward for the ongoing improvement and success of the RSE policy.

Hon. Shane Jones, Associate Minister of ImmigrationRSE POLICY
The RSE policy is the New Zealand government’s response to the seasonal labour needs of the horticulture and viticulture industry. It is designed to ensure New Zealanders get first opportunities at jobs and contains strong incentives for employers to train and up-skill the domestic workforce.

If there are no New Zealanders available to do the job, employers can apply to the Department of Labour to recruit workers from Pacific states. The Pacific has been prioritised due to New Zealand’s special relationship with the region and its commitment to its economic development and stability. Pacific workers will be able to return to New Zealand year after year and continue to increase both their skills and the productivity or our horticulture and viticulture industries.



INAUGURAL RSE WORKERS RETURN TO TONGA

The first 20 RSE Tonga workers departed New Zealand in February having earned on average a total of $13,700 over seven months with Blenheim contractor Vinepower.

Vinepower paid out close to $290,000 to the group of twenty from Kolovai and Lapaha, with the average person earning $16.00 an hour based on a 30-hour week. The Tongan workers agility and strength has impressed a number of Vinepower’s clients, says Director Jono Bushell. “We have found they have great stamina. We have had multiple requests from posting contractors we supply workers to for us to bring in workers for them next summer,” says Bushell. “Overall, Vinepower has had a positive experience with RSE. There is certainly room for improvement, but the policy has the potential to resolve labour shortage issues.”

VINEPOWER SUMMARY OF FIGURES

• All of the 20 workers returned home – with most of them expressing an interest in returning for a second season.
• In total, Vinepower paid out in salaries nearly $290,000 dollars between the two villages – Lapaha and Kolovai
• Based on a 30 hour week: The average hourly rate was between $NZD16-17
• The lowest earning worker earned $13.88 per hour, grossed just over $11,000, and worked a total of 936 hours over the seven month period
• The highest earning worker earned $20.15 per hour, grossed just over $16,000, and worked a total of 1360 hours over the seven month period
• Anecdotally – the group estimate they remitted back home to family somewhere between $3k-$7k each.

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