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SIMILAR PROGRAMS, DIFFERENT OUTCOMES? SIMILAR PROGRAMS, DIFFERENT OUTCOMES?

SIMILAR PROGRAMS, DIFFERENT OUTCOMES? - PowerPoint Presentation

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SIMILAR PROGRAMS, DIFFERENT OUTCOMES? - PPT Presentation

The World Bank Pacific Department wwwwordbankorgpi RSE Conference July 9 th 2015 Jesse Doyle TimorLeste Papua New Guinea and Pacific Islands The World Bank Seasonal Worker Program ID: 382110

worker seasonal pacific employer seasonal worker employer pacific horticulture program workers programrecognised industry employers 000 labour rse operating environment

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Slide1

SIMILAR PROGRAMS, DIFFERENT OUTCOMES?

The World Bank Pacific Departmentwww.wordbank.org/pi

RSE ConferenceJuly 9th, 2015 Jesse DoyleTimor-Leste, Papua New Guinea and Pacific IslandsThe World BankSlide2

Seasonal

Worker Program

Recognised Seasonal Employer SchemeContribute to the economic development of Pacific Island countries and Timor-Leste; and

Allow

horticulture and viticulture businesses to supplement their NZ workforce with non-NZ citizen or resident workers when demand exceeds the available NZ workforce; and

Offer a reliable, returning workforce who have a demonstrated unmet demand for labour and a commitment to Australian jobseekers. Promote best practice in the horticulture and viticulture industries to support economic growth and productivity of the industry as a whole;

CORE ObjectivesSlide3

Seasonal

Worker Program

Recognised Seasonal Employer SchemeStand-alone initiative predominantly in response to external pressure from Pacific Island countries for seasonal work opportunities

RSE

part of a wider industry strategy to address seasonal labour issues in the horticulture and viticulture industries

Supply vs. demand drivenSlide4

Seasonal

Worker Program

Recognised Seasonal Employer SchemeLarger industry spread out over 7,686,850 km

2Relatively weak compliance on illegal workers in horticulture

Far more condensed industry spread out over

267,710 km2Strong

compliance on illegal workers in horticulture, reducing their numbers substantially since the introduction of the RSE

Operating environment Slide5

Seasonal

Worker Program

Recognised Seasonal Employer SchemeRange of employer associations in horticulture nominally involved

One employer association took lead role

Operating environment Slide6

Seasonal

Worker Program

Recognised Seasonal Employer SchemeInitiated by Government with minimal involvement from employer associations.

Initiated by Government taskforce with the strong involvement of Horticulture New Zealand in the design of the program.

↕ ↕ ↕

Operating environment Slide7

Seasonal

Worker Program

Recognised Seasonal Employer SchemeHarsher penalties for Approved Employers (A$10,000)

If any RSE worker breaches the terms and conditions of their visa, employer must pay

costs

(to a maximum of $NZ3,000) required to return them to country of residence

Operating environment Slide8

Seasonal

Worker Program

Recognised Seasonal Employer SchemeLack of cultural connection/ geographically dispersed Pacific diaspora (139,000)

Lack of recent experience recruiting Pacific labour into the horticulture industry

Strong historic connection between NZ and Pacific/ geographically concentrated and larger diaspora (230,000)Recent experience recruiting Pacific labour to work in horticulture/ viticulture

Operating environment Slide9

Seasonal

Worker Program

Recognised Seasonal Employer SchemeLittle or no direct involvement of employer associations;

Direct involvement of Horticulture NZ through dedicated RSE Officer;

Mix of labour

hire companies, contractors and employers recruiting directly;More of a focus on employers recruiting directly or through grower cooperatives;Fixed requirement for employer to pay full upfront costs, with $500 deductible from international airfare; Different methods of payment of workers’ upfront costs used in practice despite requirement to pay half workers’ airfare;

Little flexibility in the minimum

time period the worker has to be engaged; More flexibility in the time period the worker can be engaged for; Employment in horticulture spread across the length and breadth of the country;Employment in horticulture concentrated in geographic clusters;

Pilot program started with only

labour hire companies as Approved Employers; and

Grower cooperatives

took lead as approved employers, gained support of large employers; and

Pacific seasonal workers must stay with Approved Employer who has sponsored

them.

Pacific

seasonal workers permitted to move between employers based on a joint agreement to recruit (ATR).

Differences in practiceSlide10

RSE visas granted/ Annual CAPSlide11

SWP Visas granted/ Annual CAPSlide12

Tonga

Kiribati

VanuatuAustralia’s Seasonal Worker Program

Number

of workers in first two years of scheme

1321110Net income gain to country from first two years of program ($A)

343,200

28,60026,000Australian bilateral aid (2009/10)16,800,00013,000,000

45,600,000

Net

income gain as a % of bilateral aid

2.0%

0.2%

0.1%

New

Zealand’s Recognised Seasonal Employer Scheme

Number

of workers in first two years of scheme

1,971

86

3,590

Net income

gain to country from first two years of program ($A)

4,336,200

189,200

7,898,000

New Zealand bilateral

aid (2009/10)

10,3250,000

4,797,000

16,830,000

Net income gain as

a % of bilateral aid

4.2%

3.9%

46.9%

Development outcomes Slide13

The New Seasonal worker programSlide14

Changes from 1 July 2015:Program uncapped

The national cap on the number of workers participating in the SWP will be removed entirely;Expanded to the broader agriculture industry and tourismThis will incorporate the former “trial sectors” (accommodation, aquaculture, cotton and cane);More flexibility

The minimum stay requirement of 14 weeks will be removed, provided workers receive a net financial benefit of $A1,000 during their stay; The new seasonal worker program Slide15

Changes from 1 July 2015:Reforms to cost-sharing arrangements

Government will simplify cost-sharing arrangements by combining the employer’s contribution to each seasonal worker’s international and domestic airfare to a total of $500; and Further reforms to be announced by 1 July 2016The Government plans to further cut red tape to the program over the course of the next financial year.

The new seasonal worker program Slide16

Industry engagement remains the key challengeUltimately seasonal worker schemes are demand driven – what are the key lessons Australia can learn from New Zealand in this sphere?

New Zealand has set the paceBoth in terms of visas granted under the RSE and net development impacts for participating countriesHuge opportunity for Pacific Island Countries to exploit in Australia with the SWP nowAgriculture industry employs 244,720 people

Accommodation and Food Services employ 638,568 people What will it take to ensure that these potential gains are captured by Pacific Island countries? Concluding remarks Slide17

The World Bank Pacific Departmentwww.wordbank.org/pi

Thank You