Research shows benefits of overseas worker scheme

  • Nathan Guy
Immigration

New research on the Recognised Seasonal Employer (RSE) scheme shows it continues to have major benefits for workers, employers and the countries involved, says Immigration Minister Nathan Guy.

“The RSE policy was designed to help with seasonal labour shortages in the horticulture and viticulture industries, and this new research by the Department of Labour shows the scheme is working well.

“Research on earnings and return rates found that the majority of new workers will return to work another season in New Zealand, many for the same employer. 

“RSE workers are paid the same rate as New Zealand workers and have the same protections under law. Data shows that mean gross seasonal earnings are around NZ$12,700 per worker, most of whom spend between three and seven months working in New Zealand.

“The 2011 survey of RSE employers found that most have enjoyed better quality, more productive workers and a more stable workforce. Many say that RSE workers have helped their businesses to expand.

“At the same time it is providing valuable income, skills and experience that workers can take back to their home countries.

“Up to 8,000 overseas workers come to New Zealand under the RSE scheme every year. Employers have an obligation to get unemployed New Zealanders into jobs, but there are some industries that just cannot find enough workers, particularly at peak times.

“Up to 50,000 seasonal workers across New Zealand can be required at harvest time and RSE workers make up 6-7,000 of that, which equates to 10-15%.

“These reports are encouraging and the Government will continue to monitor the scheme closely,” says Mr Guy.

The two reports Return Migration and Earnings of Workers in New Zealand’s Recognised Seasonal Employer Scheme and RSE Monitoring: Key Findings from the 2011 Employers’ Survey are available at http://www.dol.govt.nz/publications/research/rse-return-workers and http://www.dol.govt.nz/publications/research/rse-employer-survey2011

For information on RSE scheme, click here.

Key findings on RSE return rates and earnings

  • In the four seasons of the RSE scheme to date, over 24,600 seasonal workers have participated. The number of individual workers is around 13,900 people, indicating that many workers are returning for another season in New Zealand.
  • Circular migration is a core feature of RSE policy and this is reflected in the worker return rates. Over half (54 percent) of all RSE workers have returned to New Zealand at least once to work in another season.
  • Surveys of RSE employers show returning workers are often seen as more productive and this is reflected in employers’ recruitment practices. Almost 90 percent of returning workers return to a job with a previous employer.
  • Since the RSE began in 2007/08 the depth of worker experience has increased. In the 2010/11 season (the fourth season), three out of five RSE workers were returning workers – only 38 percent were participating for the first time. Over 1,000 workers from the first season have participated in all four seasons to date.
  • Most RSE workers are employed between three and seven months, well above the minimum required by the policy. Analysis of RSE earnings data shows that mean gross seasonal earnings are approximately $12,700 per RSE worker. Earnings fluctuate between workers but, on average, have remained fairly consistent across the seasons to date.

Key findings from the 2011 survey of employers

  • Recognised Seasonal Employers (RSEs) continue to source seasonal workers extensively from other sources, with 93 percent employing workers from Work and Income and 99 percent sourcing seasonal workers from the local community.
  • 47 percent of RSEs would like to recruit the same group of workers for next season. Employers report that returning workers ‘hit the ground running’ and are immediately productive compared to first-time workers.
  • 77 percent of RSEs reported no difficulties in providing pastoral care for their RSE workers, and 81 percent of RSEs found pastoral care management was easier in 2011 than in the previous year.
  • Pacific RSE workers are rated higher than all other employee groups for their dependability, enthusiasm while working, and their productivity.
  • Some employers experience character issues such as altercations between workers or not fitting in, but the annual surveys indicate that the proportion experiencing these problems does not appear to be increasing.
  • Almost all RSEs (93 percent) say that the benefits of participating in the scheme outweigh the costs. Most agree that participation in the programme has resulted in better quality and more productive workers, and a more stable workforce than in previous years. Returning workers contribute to this outcome.
  • 75 percent of RSEs report having extended their area of cultivation since 2007. Of these, 77 percent say that participation in the scheme has been a factor encouraging this expansion.