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
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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.
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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