The recent changes to the Recognised Seasonal Employer (RSE) policy by the New Zealand coalition government garnered significant attention at this year’s annual RSE conference. The event saw participation from RSE employers, industry representatives, government officials, Pacific nations’ representatives, and other important stakeholders.
RSE employers expressed optimism regarding the updated policies, which aim to decrease their participation costs, a goal that has been heavily advocated by employers and industry bodies. After 17 years of operation, the RSE scheme continues to be primarily utilized by small producers, with 62 percent of the 179 active employers in 2024 hiring fewer than 50 workers, and half of those employing less than 20.
For many smaller producers, rising employment costs and diminishing profit margins, particularly in the aftermath of the pandemic, have made participation in the RSE potentially unsustainable. Conversely, the three significant policy changes — eliminating the requirement for employers to pay RSE workers 10 percent above the minimum wage, removing the guaranteed payment for 30 hours of work weekly, and lifting the freeze on worker accommodation charges — have not been as welcomed by Pacific nations.
Effective September, the 10 percent pay above minimum wage will now only apply to RSE workers who are in their third season or beyond. This adjustment aims to acknowledge the skills and experience of returning workers, a recognition sought by Pacific nations. However, concerns arise from implementing a blanket wage increase based solely on the number of seasons worked.
Data from 2007 to 2024 indicates that many Pacific workers do not return for an average of three seasons; workers from Vanuatu average three seasons, while Samoa and Tonga average slightly below that. Other Pacific nations show even lower return rates, with Asian workers generally averaging more than three seasons.
Moreover, tying wage increases to the number of seasons worked could incentivize workers to return to New Zealand solely for financial gain, regardless of their productivity or the impact on their families at home. Additionally, this method fails to accurately recognize individual skills, as there may be second-season workers who are more skilled than some returning workers.
Employers have historically had the discretion to reward skills and experience through various incentives, including higher wages or other benefits. The previous requirement for RSE employers to guarantee payment for 30 hours of work per week was initially established to support workers during the pandemic; however, under the new policy, employers now need to average this guarantee over four weeks, ensuring a total of at least 120 hours of pay.
National MP Catherine Wedd stated during the conference that this change was meant to enhance New Zealand’s competitiveness against Australia, a position that raises questions regarding the rationale behind weakening worker protections to achieve that goal. New Zealand had previously differentiated its RSE scheme from Australia’s Pacific Australia Labour Mobility (PALM) scheme by emphasizing stronger employer-employee relations and worker protections.
Currently, PALM employers are also required to guarantee 30 hours of pay but have a minimum pay threshold of A$200 per week, which safeguards workers’ wages from dropping too low after deductions. Additionally, if PALM employers cannot offer sufficient work, they are responsible for their workers’ accommodation and transport costs, which are not recoverable from the employees — a protection absent from the RSE scheme.
While some alterations to RSE settings may be necessary, especially to address rising costs for small producers, there are concerns about the lack of consultation with Pacific countries, which supply workers affected by these changes. Stakeholders from the Pacific are still expecting meaningful results from the RSE policy review that concluded in 2023, while recent changes were hurriedly enacted.
As noted by Vanuatu’s High Commissioner to New Zealand, Jimmy Nipo, effectively reaping the benefits of the RSE scheme requires balancing the interests of both New Zealand and Pacific nations, underscoring the importance of regular and transparent dialogue.