2 May 2024
Hon. Erica Stanford
Minister of Immigration
Parliament Buildings
Wellington
E.Stanford@ministers.govt.nz
Tēnā koe e te Minita,
Hospitality sector priorities for the immigration portfolio
Further to my previous letter setting out the hospitality sector’s priorities for the incoming Government, I am writing to brief you on our priorities as they relate particularly to your immigration portfolio.
Immigration is by far the most pressing issue raised by our members, and I have been concerned about the lack of consultation with industry on our immigration policy settings. The announcement made last month on changes to the Accredited Employer Work Visa (AEWV) scheme came with no consultation with the hospitality industry, and appears to be a continuance of the trend toward a generalised, one-size-fits-all approach to achieving what are ultimately commendable goals for our immigration system.
While the hospitality sector has specific priorities, we acknowledge the economic and infrastructure impacts of record net-migration and would welcome the opportunity to work with the Government in developing unique approaches to addressing these challenges. The priorities in this list are not exhaustive, and the Restaurant Association remains ready to develop further programmes of work in partnership with the Government to address challenges in the immigration system as they arise.
Migrant worker exploitation
To address migrant worker exploitation within the hospitality industry, the Restaurant Association created HospoCred, an industry accreditation programme for hospitality that sets a platform for standards within the hospitality industry, promoting employers committed to fair and ethical employment and business practices. This initiative is a collective force to prevent worker exploitation, and not only safeguards workers but also strengthens our industry’s reputation and contribution to the economy. We have been approached by several industry bodies who have sought to replicate this initiative for their sectors, because of the way it is designed and the results it is delivering, and we believe that government investment in industry-led initiatives like this will help to address migrant worker exploitation.
As you will no doubt be aware, one of the key challenges for exploited migrant workers is bonding to a single employer. Exploitation often occurs when this happens, where workers are unable to escape their exploitative employment arrangements. Our members have reported workers approaching them seeking help to leave their exploitative employment arrangement, and we at the Restaurant Association are always ready to help with facilitating this. However, to say that the answer is to fill out more paperwork to apply for another visa (whether a variation of conditions or a Migrant Exploitation Protection Work Visa) puts a layer of bureaucracy in the way of what should be the most important goal – enabling these workers to leave an exploitative environment as quickly as possible.
Accredited Employer Work Visa
The cost and processing times of working through this process are completely out of kilter with what can realistically be considered reasonable. Restaurant Association members have raised the overall cost and processing times of the scheme as significant barriers, with some opting to let their accreditation expire due to these barriers.
Our members have noted that the cost of applying for a work visa for a chef in 2009 was approximately $120, increasing to $200 in 2010. Compared to the current cost of the AEWV scheme, an almost 900% increase in visa application and processing fees is unsustainable – our members have reported paying $740 at stage one, $610 at stage two and $740 at stage three for a total cost of $2,090 for a single application. This does not take into account the cost of becoming an accredited employer, nor the costs associated with job checks and proving that a role cannot be filled by the domestic market.
Exploitation often occurs when the exorbitant cost of a visa is used as a weapon against workers by unscrupulous employers, and the cost hikes associated with the current scheme only add to the risk of this occurring more often. We recognise the Accredited Employer Work Visa was implemented with what were seen as protections against migrant worker exploitation, however making it nearly impossible to apply for a visa by increasing the cost of doing so is not the way to achieve better protections for migrant workers.
Further, the changes to the length of AEWV’s are significantly impacting both employers and workers in our sector. These retrospective changes mean that many staff who came to New Zealand expecting to be able to work and live here for five years, and employers who paid thousands of dollars in visa fees expecting to have those staff in their businesses for that time, are now at a loss both personally and financially.
Definition of low and unskilled migrants
New Zealand’s immigration system needs to recognise that an individual can still be highly qualified and skilled without a doctoral degree. Immigration and education policies are regularly treated as separate topics, however a common issue in our industry is the inability of the government to determine a visa applicant’s level of skill and often making incorrect assumptions based on formal qualifications.
This strict interpretation of the rules without any knowledge of the context of our industry has led to both a shortage of appropriately skilled staff and a bottleneck in visa processing, which must be addressed. A priority for the Restaurant Association is the development of frameworks against which overseas registrations, certifications and training can be measured against domestic qualifications and standards.
English language requirement
Much like the median wage requirement is an inadequate proxy for skill, we submit that an English language requirement is an inadequate proxy for real action on migrant worker exploitation. We recognise that for many industries, language and culture of origin is not an integral part of a migrant worker’s job. In the food and beverage sector, however, cultural identity and competency is a crucial part of the broader hospitality experience. Authentic Thai, Indian and Middle Eastern cuisine, for example, is most often prepared by those who have limited formal training and whose training has taken place in the home or through on-the-job training in their country of origin.
We submit that this requirement is an unnecessary restriction while there are a myriad of other actions that Immigration New Zealand can take to ensure those with limited English language competence are properly protected from exploitation. For example, it is already a requirement for accredited employers to provide the employee with specific work-related settlement information and support, and this could (and should) include information on worker’s rights and how to seek support in the appropriate language. Exploitation occurs when workers do not know their rights, and we believe providing them with the appropriate information in the appropriate language is a key tool to preventing exploitation.
Acknowledging that the English language requirement introduced to the AEWV scheme is set at IELTS Band 4, we submit that, given the description of language competence at Band 4 is that of a limited nature, the actions above should be introduced irrespective of whether the requirement is removed.
Seasonal work and working holiday visas
It is important to note that the hospitality industry will always be reliant on some level of a short-term, temporary workforce that is filled through the immigration system. The seasonal and events-based fluctuations in demand for workers in our industry are a perfect fit to support our immigration system in places like the Working Holiday Visa scheme, as well as supporting the broader tourism ecosystem when marketing New Zealand as a place to visit.
Currently, agreements with 20 countries1 restrict travellers with a working holiday visa to working for an individual employer for no longer than three months. For any business, but especially hospitality businesses, three months is just enough time to onboard and train a new staff member on the systems and procedures that are unique to their workplace. Where staff are then required to move on after three months, both the employee and employer find themselves in a constant cycle of training and recruitment. Extending the maximum period to at least six months will help to ease recruitment and training costs and pressures on our businesses, while also providing security for those employees on a working holiday visa to know they aren’t required to constantly look for other work.
As an Association, we are progressing the industry-led work necessary to ensure the long-term sustainability of the hospitality industry. What we need from the Government to ensure this is achieved is short-term support to address our immediate pressures, and partnership to accelerate the long-term goals we are determined to achieve.
The Restaurant Association’s Immigration and Workplace Relations Industry Advisory Group meets quarterly to identify the challenges for hospitality in our immigration system, and develop solutions to these challenges – including the ongoing development of our industry accreditation scheme HospoCred. A key priority for this advisory group is the balancing of the Government’s objectives for immigration policy with the needs of businesses and employers in our sector, and I would be happy to facilitate an opportunity for you to meet with the group and hear from hospitality business owners first-hand how they see a future immigration system working for New Zealand.
I trust this briefing on the hospitality industry’s priorities for immigration is helpful, and would appreciate an opportunity to meet with you to discuss these priorities and how the Restaurant Association can work with you to support the ongoing work of improving our immigration system. My team is able to assist with scheduling a meeting at a time and location that is most convenient for you – I am often in Wellington and able to visit you at Parliament, or would love to host you at our head office in Auckland.
Please do not hesitate to contact me directly if I can be of any assistance in the meantime, and I look forward to hearing from you soon.
Ngā mihi nui,
1 Brazil, Croatia, Denmark, Estonia, Hungary, Hong Kong, Israel, Latvia, Luxembourg, Malta, Mexico, Peru, Philippines, Poland, Portugal, Slovenia, Taiwan, Thailand, Turkey and Vietnam
Marisa Bidois
Chief Executive
Restaurant Association of New Zealand