Winepress - September 2024

RSE changes fall short

NZ Ethical Employers urge long-term labour planning rather than quick fixes

TANYA POUWHARE

THE RECENT changes to the Recognised Seasonal Employer (RSE) scheme, announced by the coalition Government, have drawn mixed reactions from employers in horticulture and viticulture. While the intent to support growth in these sectors is commendable, some adjustments fall short of addressing the real challenges faced by both employers and employees. The changes, effective this month, will apply moving forward, but all existing employment agreements must be honoured as originally agreed. The decision to increase the cap on RSE workers by 1,250 bringing the total to 20,750 for the 2024/25 season is welcomed but feels insufficient. It seems more like a token gesture than a response to genuine needs of industry growth. When setting these caps it is crucial to base decisions on robust, region-specific forecasts that accurately reflect future demand. Without this careful planning the cap risks being misaligned with actual labour needs, leading to significant shortfalls during peak seasons. This issue is particularly acute in the wine industry, where there is often a disconnect between grape growers and the labour suppliers who carry out 95% of vineyard work. Without close communication about developments such as vineyard expansions or replanting, labour suppliers struggle to predict and plan for labour requirements. This lack of coordination exacerbates the challenges of meeting seasonal demand, highlighting the need for a more integrated and data-driven approach to setting RSE caps.

The government’s promise to make changes that “can be delivered quickly and improve flexibility” is appreciated. However, quick fixes often come at the cost of long-term sustainability. The RSE scheme has endured a series of “fixes” over the past several years, driven by four different immigration ministers. These changes lack a cohesive long-term strategy and have led to an inconsistent and fragmented approach, creating uncertainty for both employers and employees. A unified strategic vision is needed, one that goes beyond short-term political agendas, to ensure the RSE scheme is sustainable and fair. One significant change is the removal of the rent freeze, which had capped accommodation cost increases for RSE employees since 2022. This freeze lacked an understanding of the actual costs involved in providing

quality accommodation. It was neither fair nor transparent and stifled employers’ ability to maintain or improve worker housing. The decision to lift the freeze by $15 per week or 15% (whichever is lesser) is a step in the right direction, allowing for a more realistic approach to accommodation costs while a permanent framework is developed in consultation with employers. The increased flexibility for RSE workers to move between employers and regions is another positive change that should benefit both parties. However, the requirement to pay returning RSE employees (those in their third season and beyond) 10% above the NZ adult minimum wage, while recognising their increased productivity, fails to address the broader issue of wage equality. This policy perpetuates a two-tier employment system where migrant employees receive different benefits than Kiwis, which is inconsistent with the scheme’s “Kiwifirst” approach. Pay should be based on performance and skills relevant to the job, not on an arbitrary metric of seasons worked in New Zealand.

While unemployment among Kiwis is rising, this doesn’t directly translate to a greater willingness to work outdoors in these sectors. Ministry of Social Development pressure on employers in some regions to hire a specific number of Kiwis fails to consider individual job preferences or team fit. This approach seems more driven by KPI targets than by building a cohesive and effective workforce that genuinely supports these industries. Allowing multientry visas and opportunities for RSE workers to engage in training not directly related to their role in NZ are also progressive steps that acknowledge the importance of personal and professional development. Despite these improvements, the changes only scratch the surface of what is needed. The RSE scheme is crucial to the agricultural sector, but it must evolve to reflect the needs of the industry and the rights of the employees. Comprehensive, thoughtful reforms – rather than incremental tweaks – are required to ensure the scheme remains fit for purpose, fair, and transparent for everyone involved.

Tanya Pouwhare is Deputy Chair and Human Rights Lead for New Zealand Ethical Employers and General Manager of labour supplier Grapeworx Marlborough.