Exploitation of migrants is deeply concerning and tarnishes our reputation

Arena Williams (Te Aitanga-a-Māhaki, Ngāi Tahu, Ngāi Tūhoe) is the Labour MP for the Auckland electorate of Manurewa. She is a lawyer and mother of two. Stuart Smith is the National MP for the South Island electorate of Kaikōura. He is a former grape grower, winemaker and inducted as a Fellow of the New Zealand Winegrowers Board for services to the wine industry.

OPINION: Paying huge sums for accredited work visas, migrant workers are arriving in New Zealand expecting to be paid well above minimum wage, only to find there’s no job for them – leaving them destitute, with huge debts at home. Why does Parliament allow this to happen?

An MP from each side of the House gives their views.

Stuart Smith, National MP Kaikōura

Allegations of exploitation among international migrants arriving in New Zealand through the Accredited Employer Work Visa scheme are deeply concerning and have the potential to tarnish our reputation.

The Accredited Employer Work Visa scheme was introduced by this Government and was part of their immigration ‘re-balance’ following the lockdowns. However, it was clearly poorly thought out and has at least in part led to the alleged exploitation issues over the last 6 months.

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New Zealand has had major workforce challenges over the last three years, and all sectors are affected. Some businesses are forced to reduce hours due to workforce pressures. But staff shortages go much wider with core public services like transport and healthcare struggling due to the shortage of frontline staff.

Businesses have been critical of the Accredited Employer Work Visa scheme, particularly the wage obligations. Businesses are required to pay these overseas workers the median wage or more – which is currently $29.66 per hour, which is $6 more per hour than the minimum wage. This is simply unaffordable for a lot of small businesses, that are combating high-interest rates and inflation at 6 per cent.

Most cafés and other hospitality venues are already under financial pressure due to increased costs. Being forced to pay migrant workers almost $30 per hour, maybe the final straw for some.

We must find a way to balance visas so that migrant workers are respected and not left with no work but also not make it impossible for employers to use the programme because of unrealistically high pay rates.

For employers in New Zealand, the Accredited Employer Work Visa costs $740 for a standard accreditation and $610 for a job check. In tough economic times like these, we must make it easier to get workers into the country and get our economy moving forward again.

It is also crucial that migrant workers are employed under the conditions they were promised, they have often invested significant amounts of money, time and effort to get here. Any business or corporation found exploiting workers must face the appropriate consequences.

Arena Williams, Labour MP Manurewa

New Zealand has long been reliant on workers from other countries bringing their skills and talents to support our businesses.

The challenge is always to ensure overseas workers and local businesses benefit equally from the arrangement.

It is extremely distressing and unacceptable to hear of situations where a migrant worker comes to New Zealand and is a victim of exploitation.

While it is up to the Ministry of Business, Innovation, and Employment (MBIE) to investigate any reported instances of migrant worker exploitation, this is an area which needs ongoing vigilance.

While there is no silver bullet, the changes this Government have made go a long way to addressing this issue. We continue work to ensure that our employment and immigration systems work well to protect the conditions of every employee in New Zealand, including migrant workers.

In June, we passed the Worker Protection Bill which brings in new infringement offences and provides tools for Immigration NZ to target breaches at the lower level.

This is important, because lower-level breaches often lead to more serious exploitation. It also means those convicted of migrant exploitation will be disqualified from managing or directing companies in New Zealand, helping prevent people from using corporate structures to exploit migrants.

This bill introduced the final changes from a 2020 review which looked at how we could reduce exploitation of temporary migrant workers. The changes were accompanied by $50 million in funding over four years from 2020 to 2024, to help ensure that MBIE are better resourced to respond to reports of exploitation and take action.

Other initiatives include new, dedicated reporting tools to make it easier to report migrant worker exploitation, as well as the Migrant Exploitation Protection Visa, which supports migrants to leave exploitative situations quickly and remain lawfully in New Zealand. These initiatives have seen significant uptake since launch, and are supporting migrants to report and leave exploitative workplace situations.

In June, we also announced an extension to the Accredited Employer Work Visa (AEWV) from three to five years, to align with the introduction of a five-year maximum continuous stay on an AEWV for those not on a pathway to residence. Providing a five-year maximum continuous stay means people who don’t qualify for a pathway to residence will have clarity about how long they can work and stay in New Zealand and provides longer term certainty for business.

MBIE encourages anyone who sees cases of migrant worker exploitation to report them. Where a case is reported, it will investigate, support the worker involved and, if appropriate, will hold that employer to account. This kind of behaviour is completely unacceptable, and employers who behave in this way face potentially losing their accreditation and their ability to recruit migrant workers.