Buzz

In my last article, I sent out a warning to those operators that make up NZ’s RSE Scheme. I concluded by writing this:

Call me psychic but the unions will be next to speak. That will be their tactic. They will convince the RSE workers that they must join the union to survive against the evil employer. It will happen, and they have about 14 months of this sympathetic Government to push it through.

And so it happened!

Pacific Island Recognised Seasonal Employers (RSE) workers are being neglected, mistreated and exploited in New Zealand, according to a submission reviewed by a Parliament select committee. 

In the submission made by the Amalgamated Workers Union of New Zealand (AWUNZ), a ni-Vanuatu RSE worker stationed in Otago complained of overcrowded backpacker-like accommodation conditions where workers were only allowed three-minute showers. 

No, I am not psychic but I have witnessed the same tactic used by the unions over in Australia. This is from the ABC in January 2021.

The Australian Workers Union (AWU) has accused employers of exploiting Pacific seasonal workers by overcharging them for the cost of driving them to and from farms where they pick fruit. [around $80/wk]

abc.net.au/radio-australia/programs/pacificbeat/seasonal-workers-charged-unfairly-for-transport-to-farms/13072286

That was one of many articles that appeared over the period 2019-2021 where the unions (and community groups) pushed for fair rates. But, more importantly for them, the unions want membership above all else. The two main unions representing seasonal workers in Australia went from near zero income from them to millions within a few months. Hence the next narrative here.

He said workers were scared to join unions and he suspected many who did join were then blacklisted. …”There have been a lot of threats that we won’t be allowed to return to New Zealand if we join a union. There’s a real fear for the boys …. since 2018, there have been 20 to 40 boys who joined and they never returned.” 

In reality that is fairly rare. I dare say the 20-40 were just useless workers. 20-40 over 4-5 years is nowhere close to the 10% average attrition rate. But it fits the political narrative well. In Australia, the unions are powerful and have the protection of the law. On the other hand, New Zealand unions involved in the horticulture sector tend to be more rational and accommodating – acting more as true mediators and ‘helicopter advisors’, although, like a shark smelling a drop of blood from 1 km away, perhaps they will turn quickly from placid to frenzied in an effort to increase membership share and money.

There are a number of RSE workers who are union members and they generally are happy with what the RSE scheme offers. The important thing to note is that the program is hugely successful and a model of how best to make it work.  There is a network of support staff from MBIE, Immigration and DPI that monitor things closely. Any hint of exploitive practice gets seen to quickly. But another thing is that the RSE workers are paid a living wage of $22.10 per hour and pay flat tax rate of 10.5%. They enjoy holiday pay and earn penal rates on public holidays. A vast majority love their work, the RSE employers and staff love them, and they come back year on year. But not, according to some.

The submission has struck a chord with the Green Party, which released a press statement calling on the Government to reconsider a recent immigration reset, to be more inclusive of Pacific Island migrants. 

“The RSE scheme needs an overhaul,” said Green Party MP Ricardo Menendez March, who was part of the parliamentary committee that reviewed the submission. 

“We need far better conditions for RSE workers. We don’t want to hear stories of overcrowded accommodations and not being afforded the same rights New Zealand citizen workers.” 

Yep! El Woko Loco wants an immigration reset! (Don’t mention the Mexican/Texan border).  Sure!  We don’t want to hear stories of overcrowding either. And that is why there is an actual limit on how many per room. This is set by the authorities at 4.5 m2  per bed. So a standard 3.5 x 3.5m bedroom can accommodate 2 beds. It doesn’t take much to enforce that.

More than 7000 Pacific Island seasonal workers are estimated to be in New Zealand, harvesting and pruning fruits in orchards throughout the country as part of the Recognised Seasonal Employers scheme, which has been hailed as a success by many for helping to alleviate the poverty of countries like Tonga where nearly a quarter of adults survive on less than $22 a day. 

$22 a day in Tonga vs $22.10 an hour in New Zealand.  Hmmm, exploitation has its costs! Oh, and by the way, that assumes they are paid by the hour and not piece rates. The typical earning of an RSE worker on piece rate is closer to $28 per hour and recently I heard of some currently earning over $40/hr. There is such a disconnect between reality and what Michelle Johnson from the AWUNZ says next.

But many critics look down on the system as exploitative, outsourcing the poor and desperate to get cheap labour for a job that attracts few Kiwis. “So many people see this RSE scheme and think it’s fantastic. They’ll say ‘look at this beautiful village type housing’ but they’re not seeing the other side.”

I have seen the other side and it is more often than not fantastic accommodation. She really needs to get out more. But the trouble is that the union reps like this only get called to the occasional bad site and that forms their opinion on them all. But wait for it…

Johnstone said many seasonal workers were being conned..overcharging seasonal workers for rent and utilities. … are bonded and non-citizens, they cannot leave their accommodation and find other employment. [ED: Because they don’t want to!]

“They pay everything from accommodation to health insurance [mandatory visa requirement], and the costs just keep rising every year [heard of inflation and rent?]. I mean they’re supposed to be making a living here and sending money back home. [they send home about $500 per week – how many kiwis can do that?] I mean, it’s hard enough for them to survive here alone and they’re getting paid minimum wage,” Johnstone said. 

Again – THEY.ARE.PAID.THE.LIVING.WAGE. But who cares about that trivial fact eh! Because

“RSE workers need to be able to have bargaining power with their employer“

BAM! Oh, and … me too!

The stories of abuse are not unique to the AWUNZ. New Zealand’s second-largest trade union, First Union, has also expressed its concerns. “We’re still getting a lot of reports”, said Dennis Maga, its general secretary. 

Dennis MAGA – LOL! The unions want membership. There is an untapped seam of gold in them there workers. The union calculator comes out. Membership is five times less than their counterparts in Australia so they have work to do there. Interestingly an RSE worker only pays about $4 to be a union member, so pity the Kiwi union member who surely pays much more than that. 

Finally, expect to see various interest groups piping up now. I will watch with both interest and dismay. Growers, packhouse operators and vintners, ignore this at your peril. 

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