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RSE Impact Study:
New Zealand stream report
10 July 2019
Dr Heather Nunns, Analytic Matters
Dr Charlotte Bedford, Bedford Consulting
Emeritus Professor Richard Bedford, Bedford Consulting
2
The authors wish to thank the people in the six communities who participated in the study.
Thanks also to the Expert Panel and the Pacifica Labour and Skills team for their contributions.
Disclaimer: The data used in this report have been sourced from reliable sources which are noted in
the report. The authors accept no liability for any inaccuracies in the data. The report is based on
information available as at April 2019.
3
Abbreviations
H/V
Horticulture and viticulture
LSU
Labour Sending Unit
MBIE
Ministry of Business, Innovation and Employment
MFAT
Ministry of Foreign Affairs and Trade
MSD
Ministry of Social Development
PIC
Pacific Island country
PLS
Pacific Labour Scheme
PTP
Pacific Trades Partnership
RSE
Recognised Seasonal Employer
SWP
Seasonal Worker Program
4
5
Table of Contents
Abbreviations.................................................................................................................................... 3
Executive summary ................................................................................................................ 7
RSE Impact Study ............................................................................................................................ 13
About this document ...................................................................................................................... 14
Introduction ......................................................................................................................... 15
Pacific labour mobility .................................................................................................................... 15
Recognised Seasonal Employer scheme ......................................................................................... 15
Research approach ............................................................................................................... 19
Key aspects of the research approach ............................................................................................. 19
NZ stream research questions......................................................................................................... 21
Selection of communities ............................................................................................................... 21
Methods.......................................................................................................................................... 22
The six communities ............................................................................................................. 23
Part 1. Community impacts ................................................................................................. 26
Impacts of industry expansion, associated with RSE, on and for local communities ...................... 26
Impacts on accommodation and services ........................................................................................ 32
Impacts on medical services ............................................................................................................ 38
Impacts on policing ......................................................................................................................... 41
Social impacts on and for communities ........................................................................................... 43
Part 2. Other impacts .......................................................................................................... 47
Economic impacts of RSE for employers ......................................................................................... 47
Workplace issues for RSE workers................................................................................................... 53
Discussing and raising issues of concern ......................................................................................... 54
Skills development .......................................................................................................................... 58
Worker wellbeing issues .................................................................................................................. 59
Part 3. Implications of key findings ....................................................................................... 66
Summary of key impacts to which the RSE scheme is contributing................................................. 66
Confirming community capacity to cater for RSE workers .............................................................. 67
Implications of future industry expansion for RSE accommodation ................................................ 68
Implications of RSE as a structural necessity for the horticulture and viticulture industries ............. 69
Opportunities for occupational mobility ......................................................................................... 70
Diverse approaches to pastoral care and accommodation .............................................................. 70
RSE workers and communities ......................................................................................................... 71
More flexible visa for RSE workers ................................................................................................... 71
Conclusion ............................................................................................................................ 72
Appendix A. Use of contribution analysis .............................................................................. 73
Appendix B. NZ stream research sub-questions ..................................................................... 77
Appendix C. NZ stream sample, methods and analysis ......................................................... 79
Appendix D. Descriptions of the six communities ................................................................. 83
6
7
Executive summary
The Recognised Seasonal Employer (RSE) Impact Study has been commissioned by the Ministry of
Innovation and Employment (MBIE) and its partner agency the Ministry of Foreign Affairs and Trade
(MFAT). The study consists of four inter-related streams of work addressing the following
overarching research questions:
1. What are the social and economic impacts of the RSE scheme on, and for, communities in New
Zealand?
2. What are the social and economic impacts of the RSE scheme for PIC workers and their island-
based families?
3. What are the social and economic impacts of the RSE scheme on, and for, Pacific communities?
4. What are the implications of the study findings for the future development of the scheme?
This report, referred to as the New Zealand stream report, addresses research question one.
Questions two and three will be addressed by the Pacific stream (to be completed in December 2019)
and the RSE worker engagement study. A synthesis and analysis of the key findings from each stream
will then be undertaken (in collaboration with MBIE and MFAT) to address question four and reported
in the RSE Impact Study Synthesis report to be completed by end of March 2020.
About the RSE scheme
The tenth anniversary of the RSE scheme was celebrated in 2017. From relatively small beginnings
(involving around 3,500 Pacific workers), around 9,600 workers from nine Pacific States were
approved to arrive in New Zealand in the 12-month period 1 July 2017-30 June 2018 for RSE work. In
the ten years 2007-2017, 61,303 visas were approved for RSE workers from the Pacific who have
arrived in New Zealand. There are 165 RSE employers (as at May 2019), around 70 percent of whom
employ under 50 RSE workers each.
Discerning and assessing impact
A critical task for the impact study is to discern and assess the extent to which observed impacts are
related, directly or indirectly, to the RSE scheme. Determining whether observed impacts can be
directly attributed to RSE is impossible given the complexity of the scheme, the number of
stakeholders involved, and the Australian labour mobility arrangements operating in the same Pacific
Island countries (PICs). An analytical approach - contribution analysis – addresses the attribution
problem inherent in complex policy environments (Mayne, 2012). It provides a systematic and
rigorous approach to establish (or inversely, to discount) a plausible association between a particular
input (or group of inputs) and observed changes. It addresses cause and effect by demonstrating
contribution rather than proving causality. Contribution analysis is used in the impact study to identify
and understand the contribution of RSE to observed changes, and to identify and understand other
factors (not related to the scheme) that may be influencing observed changes.
The communities
Six communities where Pacific RSE workers reside for part of the year were examined: Blenheim,
Hastings, Kerikeri, Motueka, Roxburgh and Te Puke. Communities with the highest numbers of RSE
workers were selected (to provide clear evidence of impacts on communities, especially on services
and infrastructure), plus a couple of smaller communities where the types of impact may differ. A
variety of crops and RSE employer types were included in the sample of communities.
8
Methods
Primary and secondary data were collected about the six communities. In order to understand the
changes that have happened in the community in the last ten years and the triggers of such changes,
we gathered wide-ranging data about the community, and sought to interview informants who could
provide community-wide perspectives about economic and social changes. One hundred and thirty-
six interviews were conducted with 179 informants in the period November 2018 - April 2019.
Interview data from each community was supplemented with census data, economic activity and
labour market information, housing market data, and information from the media to provide a
comprehensive perspective. Data was coded using NVivo 10, and a systematic analytic process
conducted. Our initial contribution claims (refined in a team analysis workshop) about the impact of
RSE on the six communities were scrutinised by a panel of five labour mobility academic and
practitioner experts. The panel brought their expertise to check and further strengthen the research
team’s interpretation of the data and contributions identified.
Findings
Economic impacts on communities
Industry-wide expansion, supported by the reliability and productivity of RSE labour, is making a
direct economic contribution in the six communities examined. This expansion generates multiplier
effects as businesses that directly support H/V enterprises, such as land and land services, transport
and distribution, agricultural services and equipment, construction, and accommodation services
also expand. Expansion is generating more employment opportunities for New Zealand workers, in
permanent and seasonal jobs, as H/V enterprises shift towards year-round production, crop varieties
change, and greater volumes are produced. There have also been large-scale investments in industry
infrastructure. In Kerikeri, Hastings, Motueka and Roxburgh, RSE enterprises have made multi-
million-dollar investments in fruit processing facilities. These investments have significant flow-on
effects for the local construction industry, engineering firms and technology suppliers.
The RSE scheme has become ‘big business’ for third-party providers of accommodation (e.g.
residential landlords, motel owners) and transport. Some employers hire vans for the season for use
by their RSE workers - one employer estimated around $500,000 is spent each season on vehicle hire.
Other employers make use of third-party providers to transport workers to and from work each day
in shuttle buses and minivans.
Impacts on local accommodation
The demand for accommodation associated with gradually increasing numbers of RSE workers has
coincided with a tightening property market and decreasing housing affordability in many
communities over the last five-eight years. The RSE scheme is having its most negative impact on
the low-cost rental market in communities with insufficient accommodation on orchards and other
properties suitable for seasonal workers. In these communities, the RSE scheme creates a tipping
point - as the number of RSE workers exceeds the capacity of the low-cost housing market to
accommodate them, the scheme contributes to a shortage of properties for locals seeking low-cost
rentals. The demand for RSE worker accommodation has placed most pressure on the residential
housing markets in Hastings, Te Puke and Blenheim (although two recently completed large RSE
accommodation complexes around Blenheim, and another in the planning stage are easing demand).
9
The study has highlighted the constraints facing employers wishing to develop new seasonal worker
accommodation or convert existing buildings, such as the time and cost involved in resource
management consenting. Regulations in council district plans that relate to accommodation in rural
areas, especially those that place restrictions on use other than by seasonal workers, act as major
disincentives for RSE employers to invest in worker accommodation
Impacts on health services
The RSE scheme is having an impact on local health services in the six communities but not to the
detriment of service provision to local residents. This is largely due to changes that medical practices
have made in several communities (Kerikeri, Tauranga (for Te Puke RSE workers), Hawke’s Bay,
Blenheim) to better cater for RSE worker patients and to minimise disruption to local residents
enrolled in their practice. Informants from these practices are satisfied that these changes are
working well, which is endorsed by local pastoral care workers. In two communities (Motueka,
Roxburgh) no significant impacts were reported by medical practices.
While the impacts of RSE workers on health services at the community-level may be limited, at the
national level the RSE scheme presents some risks to New Zealand’s health system. The RSE
workforce from some countries is ageing and this, coupled with limited medical screening facilities
and requirements in most PICs, means that some workers are entering New Zealand with pre-existing
conditions that may require medical treatment in New Zealand (including hospitalisations). This topic
is being examined in MBIE’s RSE Health Review. There are also concerns at senior levels in the
Ministry of Health about the potential outbreak of communicable diseases if RSE workers are not
fully immunised or good personal hygiene is not being practiced.
Impact on policing
RSE workers are currently placing minimal pressure on local police in the six communities. Informants
from NZ Police reported RSE workers were not a major source of complaints from the public or
instigators of crimes requiring police attention. Police officers in some communities noted that other
groups of temporary residents pose more challenges for policing than RSE workers. However, if RSE
worker numbers continue to increase, the police officer responsible for RSE in some centres will
require additional resourcing.
An issue of concern is the targeting of RSE workers by criminals in some communities. This has
included burglary of workers’ accommodation (stealing electronic and other goods workers have
purchased to take home), the sale of stolen goods to workers and drug dealing. While not illegal, local
sex workers are targeting workers’ accommodation sites in some communities causing problems for
pastoral care providers.
Social impacts on and for communities
For most of the people in five of the six communities we visited, the social impact of RSE on and for
the community is minimal. The majority in the community appear to make no distinction between
RSE workers, backpackers and other migrant seasonal workers, and tourists - they are all regarded
as temporary residents in their community. Workers’ participation in the community is
predominantly via church and, to a lesser extent through sporting activities and local events (e.g. the
annual Christmas parade). Workers are an integral part of local congregations, and it is through the
church that they build some of their strongest connections with members of the local community.
There are numerous examples of NGOs and wider community efforts (e.g. in Te Puke and environs),
10
that have provided financial and other support for development initiatives for RSE workers’ villages
in the islands, especially after cyclones.
Roxburgh is distinctive from the other five communities in that it is proactively embracing RSE and
other migrant seasonal workers as part of a wide-ranging community development initiative funded
by the Department of Internal Affairs.
Impacts of RSE on communities
The findings reveal that the way the RSE scheme impacts on communities is more complex than
might be explained by obvious differences such as population size, and industry-related differences
such as the timing and nature of seasonal labour demand. There are a range of other contextual
factors that influence the nature and extent of the scheme’s impact on and for communities, such as:
what other low skill work opportunities are available for locals, the unemployment rate/potential
supply of non-RSE labour, the size and composition of the total seasonal workforce, history of use of
migrant labour, and the capacity of the low-cost rental housing market to meet residents’ demand.
This is a key finding of the study, namely, that the impacts of RSE on, and for, New Zealand
communities are contextual and nuanced.
RSE workers: a necessity for RSE employers
While the emphasis of the NZ stream was on impacts for communities, other findings have emerged.
One of these is confirmation of the importance of RSE workers for the H/V industries. Although they
are a relatively small component of the total seasonal workforce, RSE workers have become a
necessity (not just a preferred source of labour). The H/V industries are increasingly reliant on skilled
RSE labour for their ongoing expansion and ambitious export growth targets. Such expansion is
fuelling greater reliance on RSE labour.
Community capacity: a consideration for any future increase in RSE worker numbers
The research findings have implications for the H/V industries’ expectations about future increases in
the RSE worker cap. While higher RSE worker numbers will provide economic benefits to
communities via the increased production of local H/V enterprises and job creation for NZ workers,
ongoing increases in worker numbers are not feasible unless the community’s capacity to cater for
more workers is confirmed. Important dimensions of community capacity are accommodation
(discussed below), policing and health services.
Most of the six communities we visited are close to, or at capacity in their ability to accommodate
RSE workers in existing housing stock. Government has urged RSE employers to ensure that pressure
for RSE accommodation does not result in residential properties being denied to permanent
residents. Planning for expansion by RSE employers individually, and industry as a whole, must take
account of the need for additional RSE and other seasonal worker accommodation. Explicit
connections need to be made between planning for expansion and accommodation planning.
11
Acknowledging RSE impacts on communities
The RSE scheme has had important economic and social impacts on communities in New Zealand.
The most obvious direct economic impacts have been on productivity and expansion in the
horticulture and viticulture industries in the regions where the six communities are located, creating
flow-on effects into associated businesses and services that support the H/V industries and creating
new jobs for New Zealand workers. The most significant social impact has been the slow but
increasing acknowledgement that the temporary migration of thousands of seasonal workers from
several Pacific countries, many of whom return in successive seasons, is becoming a permanent
component of the residential populations of many small and medium-sized towns for much of the
year.
The economic and social impacts are not always consistent in terms of their level of intensity or
significance for the economic base, service infrastructure and social fabric of small and medium-sized
towns. But in the six communities covered in this study, they are not trivial, and they need to be taken
into consideration when assessing the contribution the RSE scheme makes to community
development in New Zealand during the second decade of its operation.
12
13
RSE Impact Study
From the outset, the Recognised Seasonal Employer (RSE) policy has recognised the need to balance
the positive impacts for New Zealand with those for individual Pacific Island countries (PICs). Over
the twelve years of the RSE scheme’s operation some unintended impacts have emerged,
predominantly for PICs. The purpose of the Impacts Study is to examine the impacts of RSE to
determine whether the RSE model as it was originally conceived is appropriate for the scheme going
forward.
1
Two areas of impact have been prioritised for the study’s focus by the research commissioners – MBIE
and its partner agency MFAT. The first is the social and economic impacts for RSE workers, their
families and communities. Concerns have been expressed by some Pacific Island governments about
the consequences for households and communities arising from the absence of family members and
productive labour for significant periods year-on-year. While some research has been done (for
example, Rohorua, H., Gibson, J., McKenzie, D. & Martinez, P.G. (2009), more in-depth information
is needed about the immediate and long-term consequences of seasonal labour migration for RSE
households and communities. The second priority area is the impacts of RSE on, and for, local New
Zealand communities. While these two impact areas were identified as being priorities for the study,
they do not preclude other impacts being examined.
The study examines four overarching research questions:
1. What are the social and economic impacts of RSE on, and for, RSE communities in New Zealand?
2. What are the social and economic impacts of RSE for PIC workers and their island-based families?
3. What are the social and economic impacts of RSE on, and for, Pacific communities?
4. What are the implications of the study findings for the future development of RSE?
The study consists of three closely linked work streams, consisting of primary and secondary
qualitative data, and secondary quantitative data as shown in Table 1. Each of the work streams will
be reported individually upon its completion. Once completed, the key findings from each stream will
be integrated, analysed and synthesised into an RSE Impact Synthesis report to be completed in early
2020. A more detailed account of the research design is provided in Appendix 1.
1
Impacts include intended and unintended, positive and negative, direct and indirect, actual and emerging/
potential.
14
Table 1. RSE Impact Study
Overarching research questions
Work streams
Timing
1. What are the social and economic impacts
of RSE on, and for, RSE communities in
New Zealand?
New Zealand stream
December 2018 - June 2019
2. What are the social and economic impacts
of RSE for PIC workers and their island-
based families?
3. What are the social and economic impacts
of RSE on, and for, Pacific communities?
Pacific stream
May - December 2019
Desk study on RSE worker
engagement
March 2018-June 2019
4. What are the implications of the study
findings for the future development of RSE?
RSE Impact Synthesis report:
analysis of the key findings
from the three studies above, in
collaboration with MBIE and
MFAT
January – March 2020
About this document
This document presents the findings of the New Zealand stream which examined the impacts of the
RSE scheme on six communities where Pacific RSE workers reside for part or all of the year: Blenheim,
Hastings, Kerikeri, Motueka, Roxburgh and Te Puke. The research findings are presented in two parts,
with the third part summarising some of the key impacts identified in the findings.
Part 1. Community impacts
• Impacts of horticulture and viticulture expansion, associated with RSE, on and for local
communities.
• Impacts on local accommodation and services.
• Social impacts on and for communities.
Part 2. Other impacts
• Economic impacts for RSE employers.
• Workplace issues for RSE workers.
• Wellbeing issues for RSE workers while they are in New Zealand.
Part 3. Summary and implications of key impacts.
15
Introduction
Pacific labour mobility
The New Zealand Government through its NZ Aid Programme is committed to sustainable economic
and social development in the Pacific, with 60 percent of aid funding currently directed at the Pacific
region.
2
In March 2018 the New Zealand Government announced Pacific Reset, a key principle of
which is that the New Zealand Government and individual Pacific governments will strive for solutions
of mutual benefit when developing domestic and foreign policy.
3
The RSE scheme is intended to be of
mutual benefit for participating Pacific countries and New Zealand.
The RSE scheme’s success in opening up short-term employment opportunities for Pacific workers
has led Pacific Island governments to seek greater access to New Zealand’s labour markets for their
unskilled and semi-skilled workers. The Arrangement on Labour Mobility between the New Zealand
Government and individual Pacific governments, signed as part of the 2017 PACER Plus negotiations,
describes New Zealand’s commitment to creating more temporary employment opportunities in
occupational areas where New Zealand faces labour and skills shortages, and to build Pacific States’
capacity to participate in such opportunities.
Pacific countries are not only looking to the RSE scheme for increased temporary employment
opportunities. The RSE scheme must be viewed within the larger context of other temporary labour
mobility opportunities involving Pacific worker movement to New Zealand (Pacific Trades
Partnership (PTP), Fisheries Pilot), Australia (Seasonal Worker Program (SWP), Pacific Labour
Scheme (PLS)), Europe and Asia (fishers and other seafarers) and the movement of labour between
PICs. In addition, there are the demands of local industry and enterprise, as well as the wide range of
services provided to populations living in the islands. The RSE and SWP schemes are drawing on the
same sources of Pacific labour. The impacts on PICs of this demand for mainly male workers from
the younger working age group (20-39 years) will be examined in this study.
Recognised Seasonal Employer scheme
RSE beginnings
During the period 2000-2004 New Zealand’s horticulture and viticulture exports increased more than
30 percent. At the same time, unemployment rates were decreasing, and the national labour market
was tightening. A labour supply shortfall was identified as a potential risk to national export earnings
and regional economic development, and as a constraint on business growth. Simultaneously, Pacific
governments were putting pressure on the New Zealand government to allow Pacific workers to have
improved short-term access to their labour markets.
4
2
New Zealand Aid Programme Strategic Plan 2015-2019. Ministry of Foreign Affairs and Trade.
3
https://www.mfat.govt.nz/en/countries-and-regions/pacific/
4
A more detailed account of the background to the RSE policy is provided by Ramasamy, S., Krishan, V.,
Bedford, C. & Bedford, R. (2008). The Recognised Seasonal Employer policy: Seeking the elusive triple wins for
development through international migration.
16
The RSE Policy, which became operational in October 2007, allows for the temporary entry of
offshore workers to work in the horticulture and viticulture (H/V) industries in New Zealand. The
scheme was intended for unskilled workers from rural, cash-poor households to pick, pack and
process harvests. Preference was given to five Pacific Island countries (PICs) - Kiribati, Samoa, Tonga,
Tuvalu, and Vanuatu (referred to as the “Kick-Start states”) - who were provided with facilitation
measures to support their participation. Four other PICs have subsequently formalised their
engagement in the scheme – Solomon Islands in 2010; Papua New Guinea in 2013, Fiji in 2014, and
Nauru in 2015.
The RSE policy has multiple aims, including to:
5
• create a sustainable seasonal labour supply.
• transform the horticulture and viticulture industries from low cost industries to industries
based on quality, productivity, and high value through improved business practices.
• protect New Zealanders’ access to seasonal employment.
• minimise immigration risk.
• contribute to New Zealand’s broad objectives in the region, specifically encouraging Pacific
economic development, regional integration, and stability.
The intended development outcomes for PICs include:
6
• [named PIC] secures a fair portion of seasonal work opportunities under the RSE Immigration
Instructions.
• [named PIC] workers are able to generate savings and relevant experience which ma y
contribute to the development of [named PIC].
• [named PIC] cooperates effectively with New Zealand to maintain the integrity of the
arrangements implemented, and
• The cost of transport does not act as a barrier for [named PIC] nationals to access
opportunities under the RSE Immigration Instructions.
The main aspects of the RSE policy are as follows.
7
• Agency to agency relationship: An Inter-Agency Understanding (IAU) between the PIC
government and the New Zealand government sets out the respective obligations of the
parties and arrangements for participation in RSE.
• Employer recognition: Employers who wish to participate in RSE must first gain recognition
by complying with good employer and other requirements. Once they have achieved RSE
status, the employer applies for an Agreement to Recruit (ATR) a specified number of RSE
workers (for a specific timeframe, location, and work activities).
• New Zealanders First principle: The number of RSE workers approved in ATR applications is
subject to the availability of suitable New Zealand workers. The total annual number of RSE
workers is determined by government (referred to as the worker cap).
5
Department of Labour (2010). Final evaluation report of the Recognised Seasonal Employer policy 2007-2009
(p.5).
6
Extracted from the Inter-Agency Understanding documents for Nauru and Papua New Guinea.
7
Department of Labour (2010, p.6).
17
• Employer driven: The selection of workers and re-employment of return workers is
determined by employers, based on their requirements. The relationship between the
employer and worker is an employment one.
• Short-term migration: Worker applicants who have an offer of employment from an RSE
employer and who meet the RSE worker criteria are granted a limited purpose entry visa for
the duration of work approved in the ATR for up to a maximum of 7 months in any 11-month
period.
8
• Circular migration: The policy provides for the return of experienced workers (who have an
offer of employment, want to return, and meet immigration requirements) in future seasons.
• Pastoral care: The RSE employer is responsible for the pastoral care of workers.
RSE ten years on
The tenth anniversary of the RSE scheme was celebrated in 2017. From relatively small beginnings
(involving around 3,500 PIC workers), around 9,600 workers from nine Pacific States were approved
to arrive in New Zealand in the 12-month period 1 July 2017-30 June 2018 for RSE work. In the ten
years 2007-2017, 61,303 visas have been approved for RSE workers from the Pacific who have arrived
in New Zealand (Table 2).
9
There are 165 RSE employers (as at May 2019) around 70 percent of whom
employ under 50 RSE workers each.
Table 2. RSE arrivals on approved visas 2007 - 2017
Pacific Island country
No. of RSE arrivals 2007-2017
Fiji
477
Kiribati
1,198
Nauru
57
Papua New Guinea
386
Samoa
11,965
Solomon Islands
4,072
Tonga
14,294
Tuvalu
682
Vanuatu
28,172
Total
61,303
Of the nine participating countries, Vanuatu, Tonga and Samoa have consistently taken the greatest
share of RSE job opportunities. Vanuatu has had twice as many RSE arrivals on approved visas as
Tonga, the second largest supplier of RSE workers. Over the years, MBIE (and its predecessor, the
Department of Labour) have made considerable efforts to encourage RSE employers to recruit
beyond these three PICs, especially from smaller countries such as Tuvalu and Kiribati that face
barriers to participation such as distance and high travel costs, and countries like the Solomon Islands
and Papua New Guinea that have few international outlets for labour migration. Only a small number
of employers have responded to such efforts. This has led to disparities in the availability of RSE work
opportunities across PICs which will be examined in this study.
8
Because of the relative isolation of their countries, and high travel costs to New Zealand, workers from Kiribati
and Tuvalu can be employed for up to 9 months within any 11-month period.
9
Some of these RSE workers will return to New Zealand numerous times. Data from MBIE covering the period
2007-17 indicates the RSE worker return rate is around 60 percent.
18
RSE stakeholders
The RSE scheme operates within a complex system of stakeholder connections within New Zealand,
between New Zealand and individual PICs, and within PICs (Figure 1). Such connections, which have
been built up over the last ten plus years, are based on personal, cooperative relationships. Many RSE
employer-PIC relationships are described as self-sustaining as a result of employers visiting the
villages where their workers live.
10
Figure 1: The RSE system
In the early days of the scheme, the primary relationship was understood as being between the RSE
employer and RSE worker. While the workers’ family and community were recognised as being part
of the RSE context, it was not until the scheme had been operating for some years that their
significance as stakeholders became better appreciated. The RSE worker’s partner, extended family,
and community members left behind assume extra responsibilities for childcare, family
management, and food production in the worker’s absence. Given the gendered nature of most RSE
work, such responsibilities fall mainly on female family members.
At the New Zealand end, the focus was initially on RSE employers and the horticulture and viticulture
industry organisations. From around 2013 onwards industry expansion began (due to guaranteed
RSE labour) with a commensurate increase in the number of RSE workers. It was only then that the
impact on, and for local communities in New Zealand began to be recognised. While on the one hand,
communities enjoy economic benefits from RSE activities, on the other hand the annual influx of
large numbers of RSE workers has placed pressure on local accommodation, health and other
services.
10
Interviews with stakeholders were undertaken as part of the scoping of the impacts study.
19
Research approach
Three key aspects of the research approach for the study are first described, as listed below. This is
followed by the research questions, a summary of the methods, and the research limitations.
1. The RSE scheme as a complex adaptive system.
2. The use of contribution analysis to examine impact.
3. Linking of the New Zealand and Pacific streams.
Key aspects of the research approach
RSE scheme as a complex adaptive system
The research approach for the study is underpinned by the conceptualisation of the RSE scheme as a
system, specifically as a complex adaptive system. Briefly what this means is:
• The system is a whole that is both greater than, and different to its parts. Understanding what
is happening in the system cannot be achieved by examining what is happening to each part
separately (e.g. government policy or compliance, RSE employers, workers and their
families), because the parts are interconnected and interdependent and the interactions of
the parts lead to evolution of the system as a whole.
11
• Changes in one part of the system lead to changes in all parts and the system itself, and these
changes occur in unpredictable ways because it is a complex system.
• Two distinctive features of systems are the concepts of feedback and equilibrium. A feedback
loop is “a circular arrangement of causally connected elements, so that each element has an
effect on the next”.
12
Feedback can be positive or negative. Negative feedback loops initiate
changes within the system that help to stabilise and maintain the system’s equilibrium. In
other words, a change in one part of the system is matched by an adjustment elsewhere in
the system to maintain a relatively stable state. Positive feedback loops, on the other hand,
enforce small changes that escalate further change, and move the system away from
equilibrium.
13
This can lead to the occurrence of tipping points, where forces within the
system reach a critical threshold and a small change may have a large ultimate effect. Tipping
goes in one direction - it is not possible for the system to ‘go back’ after reaching a tipping
point as the state of the system changes.
14
• Originating conditions are important for the direction of system development. However,
every system carries its own contradictory pressures that might, if not checked, develop as
probable and undesirable, rather than preferable, futures.
In the context of RSE, this means the scheme as a whole behaves in a particular manner that is quite
different from, and cannot be reduced, to the behaviour of individual agents (government officials,
employers, workers etc.). The success of the scheme depends on how individuals interact, the
relationships they form, and how their interactions are organised to ensure the policy’s objectives are
11
Patton, M. (1990). Qualitative evaluation and research methods. Thousand Oaks, CA: Sage.
12
Capra (1997) cited in Walby S. (2007, p. 464). Complexity theory, systems theory, and multiple intersecting
social inequalities. Philosophy of the Social Sciences, 37(4): 449-470.
13
Midgley G. (2006). Systems thinking for evaluation. In B. Williams & I. Imam (Eds.), Systems concepts in
evaluation. An expert anthology (pp. 11-34). Point Reyes: American Evaluation Association, EdgePress.
14
Bryne D. (1998). Complexity theory and the social sciences: An introduction. London: Routledge.
20
kept in balance. The RSE scheme exists because of the interactions between different groups within
the system that work to reproduce it. As a result, while the RSE scheme has operated as a relatively
stable programme over the first ten years, it is not a static scheme. The scheme continues to evolve
and is susceptible to change.
Use of contribution analysis to examine impact
A critical task for the impact study is to discern and assess the extent to which observed impacts are
related, directly or indirectly, to the RSE scheme. Determining whether observed impacts can be
directly attributed to RSE is impossible given the complexity of the policy, the number of stakeholders
involved, the dynamic environment in which the scheme operates, and the range of Australian labour
mobility arrangements operating in the same PICs and employment opportunity space.
The attribution problem inherent in complex policy environments is widely recognised (Mayne,
2012).
15
An analytical approach - contribution analysis - addresses this challenge. Contribution
analysis provides a systematic and rigorous approach to establish (or inversely, to discount) a
plausible association between a particular input (or group of inputs) and observed changes:
“Contribution analysis provides an argument with evidence from which it is reasonable to conclude
with confidence that the intervention has made a difference and why” (Patton, 2012, p.367).
16
It
addresses cause and effect by demonstrating contribution rather than proving causality. It is well suited
for examining complicated policies: “Contribution analysis works well for understanding and
interpreting results in complex systems where a variety of factors and variables interact dynamically
within the interconnected and interdependent parts of the open system”.
17
In brief, contribution analysis examines research findings to:
• establish the existence (or not) of an association between an intervention and an observed
change(s),
• systematically discount any other plausible explanations for the observed change (e.g. about
the internal and/or external environment), and
• where an association is established, understand the nature of the contribution.
The intended end-result of this process is to establish a plausible association between an intervention
and an observed result that will withstand scrutiny and critique (or inversely, to discount such an
association) (Mayne, 1999).
18
An explanation of how contribution analysis is being used in the Impact
Study is provided in Appendix A.
Linking of the New Zealand and Pacific streams
A feature of the research design is that the New Zealand stream is linked with the Pacific stream,
thereby strengthening the study findings i.e. specific Pacific communities are targeted that have links
to specific RSE employers, and vice-versa. This required the use of an emergent research design - we
15
Mayne, J. (2012). Contribution Analysis: Coming of age? Evaluation, 18: 370-380.
16
Patton, M.Q. (2012). A utilization-focused approach to Contribution Analysis. Evaluation, 18: 384-377.
17
ibid.
18
Mayne, J. (1999). Discussion paper: Addressing attribution through Contribution Analysis - Using
performance measures sensibly. Office of the Auditor General of Canada.
21
needed to talk to RSE employers first to get a better understanding of the exact village(s) from which
they recruit workers. Only after the employer visits were completed, could the potential locations for
the Pacific fieldwork be identified (subject to the village leaders agreeing to participate).
NZ stream research questions
The overarching research question for the NZ stream, What are the social and economic impacts of
RSE on, and for, communities in New Zealand? is underpinned by 27 sub-questions listed in Appendix
B.
The following topics are out of scope of the NZ stream.
• A large scale, quantitative analysis of the economic impacts of the RSE scheme in New
Zealand’s regions.
• RSE operational requirements/processes. (MBIE has recently completed an Operational
Review of the RSE scheme).
• RSE worker pre-departure health screening. The impact of the RSE scheme on the New
Zealand health system. (These topics are being examined in the RSE Health Review
undertaken by MBIE).
• The operation and effectiveness of RSE worker pre-departure training.
• Detailed examination of the barriers for Pacific women to participate in RSE. (This is being
examined by MBIE and MFAT in the Women’s Strategy to increase opportunities for the
temporary employment of Pacific Islands women in New Zealand).
• The operation and effectiveness of Vakameasina.
19
Selection of communities
Six communities that have RSE workers residing for some or all of the year were selected for the study
in conjunction with MBIE. The selection of communities was guided by the following requirements.
• Communities with the largest numbers of RSE workers (to provide clear evidence of impacts
on communities including on services and infrastructure), plus a couple of smaller
communities where the types of impact may differ.
• Communities with different sized resident populations, from city/major town to rural
settlement.
• A variety of crops – grapes, pipfruit, kiwifruit, citrus, berries, summerfruit and vegetables.
• Different RSE employer types - direct employers, labour contractors and grower
cooperatives.
• RSE employers that recruit RSE women workers.
19
Vakameasina aims to maximise the development benefits of the RSE policy by providing RSE workers access
to skills training during their time in New Zealand that will improve their lives and that of their families at home.
The programme is funded by MFAT from the NZ Aid budget and is delivered to approximately 1,200 Pacific
workers each year by a private provider.
22
Methods
This section provides a summary of the methods used in the NZ stream (Table 3). A more detailed
account is provided in Appendix C.
Table 3. Methods and data sources
Method
Informant/data
Data details
Face to
face
interviews
Community-
based, industry,
RSE team
leaders*, and
other informants
Face to face interviews were completed in each of the six communities by
a team of three researchers, working by themselves (Te Puke, Motueka,
Blenheim) or in pairs (Hastings, Kerikeri, Roxburgh) from mid-November
2018 to beginning April 2019 using one of 12 topic guides.20 A small
number of interviews were done on the telephone after the fieldwork
visits due to an informant being unavailable when we were visiting, or to
‘back-fill’ areas of information that initial analysis identified as needing to
be strengthened.
136 interviews were completed with 179 informants over the period
November 2018 - April 2019.
* 13 RSE worker team leaders were interviewed as part of our efforts to
identify potential locations for, and interest in participating in the Pacific
stream.
Document
review
Official research
and papers
Included RSE Remittance research, RSE Employer Annual Survey 2012-
2018, Evaluation of Strengthening Pacific Partnerships and Vakameasina
2016, Vakameasina Design 2017, Pacific Women and Labour Strategy
(draft, undated), RSE Operational Review, MBIE Risk Register.
Scan of relevant
research
literature
The research literature on the NZ and Australian seasonal work schemes
was reviewed in the research scoping phase to identify impacts of labour
mobility on workers, families and communities. The review was re-
scanned to identify RSE worker experiences while working in NZ.
Media review
A review of media information relating to the RSE scheme that
appeared in community-level media in the previous five years (2013-
2019) in each of the study’s targeted communities and their wider
environs. In addition to print and electronic media, content was
retrieved from social media and blog sites.
Descriptive
statistical
analysis
Industry/regional/
other statistical
data
Sources included: research on patterns of worker engagement in RSE;
Horticulture/Viticulture industry data for regions; regional economic
activity/labour market information; census data; regional housing stats
(e.g. rent levels, housing affordability, homelessness); RSE health
insurance statistics.
The procedures used to code and analyse the data, and develop and refine contribution claims about
impact are described in Appendix C.
The NZ stream has the following limitations.
• The research design has a strong qualitative focus. Therefore, it is not possible to generalise
the findings across all New Zealand communities in the way that an experimental research
20
The twelve topic guides were developed using a matrix based on the research sub-questions. The completed
guides were reviewed by team members. An information sheet and consent form were produced for use with
informants.
23
design can do. The insights from the study’s findings will, however, have relevance for, and
be transferable to, similar contexts and conditions.
• The communities that are the focus of the study were selected purposively. They are not a
representative sample of communities that are home to the horticulture and viticulture
industries.
• RSE employers and their Pacific team leaders participating in the study are voluntary
participants who met the criteria identified by the research team in discussion with MBIE and
are therefore not a random sample.
• The researchers sought to interview a range of informants in communities who could provide
a community-wide perspective, such as local government, community leaders, church
ministers and community-based NGOs. While we did our best endeavours to include as many
informants as possible within time and cost constraints, some informants may have been
missed.
The six communities
As part of understanding the extent and nature of impact of the RSE scheme at the local level, we
developed a profile of each community from statistical data and descriptive information covering a
range of economic, social and housing dimensions. These profiles are provided in Appendix D. Some
features of the six communities relating to the RSE scheme and seasonal work are summarised in
Table 4.
24
Table 4. NZ stream communities
City/major town
Small towns
Rural settlement
Hastings
Blenheim
Motueka
Te Puke
Kerikeri
Roxburgh
Population
(2013 Census)
63,992
29,295
7,606
7,504
6,502
522
Crop types
Pipfruit, grapes,
summerfruit
Grapes
Pipfruit and kiwifruit
Kiwifruit
Kiwifruit, citrus,
avocados
Pipfruit, summerfruit
Total no. of RSE
workers in region
incl. those on joint
ventures (year ended
June 2017)
3,713
2,823
1,370
2,169
344
804
Primary source
countries of RSE
workers
Vanuatu: 26.1%
Samoa: 29.2%
Tonga: 14.8%
Other Pacific: 19.3%
Main PICs: Solomon
Is, Fiji
Vanuatu: 55.4%
Samoa: 8.1%
Tonga: 6.4%
Other Pacific: 10.5%
Main PICs: Fiji, Kiribati
Tonga: 52.3%
Samoa: 22.7%
Vanuatu: 21.8%
Other Pacific: 3.3%
Main PICs: Solomon
Is, Fiji
Vanuatu: 36.7%
Tonga: 16.7%
Samoa: 15.9%
Other Pacific: 10.4%
Main PICs: Solomon
Is, Fiji
Vanuatu: 46%
Tonga: 36.8%
Other Pacific: 6.9%
Main PICs: Kiribati,
PNG
Vanuatu: 90.4%
Samoa: 3.6%
Tonga: 2.5%
Other Pacific: 3.5%
Main PICs: Solomon Is, Fiji
Other seasonal
workers
Mix of permanent
NZers and casual
workers (NZ casuals
and backpackers).
Large RSEs,
especially, have a
good working
relationship with local
W&I and have a range
of initiatives in place
to attract NZers.
Mix of permanent NZers,
and casual workers (NZ
casuals and backpackers)
hired for summer or
winter work.
Region’s low
unemployment rate, and
negative perceptions
among locals about the
viticulture industry (low
wages) makes it difficult
to attract NZers.
Mix of permanent
NZers and casual
workers (NZ casuals
and backpackers).
Backpackers
important source of
seasonal labour
through summer
holiday period.
For growers around
Motueka it can be
difficult to find NZers
because of the small
New Zealanders
make up largest
component of
seasonal workforce,
accounting for over
55%. Backpackers are
second largest source
of labour (over 20%),
followed by RSE
workers (around
17%).
Other migrant labour
(international
New Zealand
workers are main
source of labour,
accounting for 60-
75% of total
workforce each
month, with largest
numbers of NZers
employed over peak
periods.
Working holiday
maker numbers are
very small (no more
Working holiday makers are
largest source of seasonal
labour accounting for approx.
60%.
Teviot Valley is accustomed to
a large influx of backpackers
each year, but the high rates of
freedom camping pose some
concerns among locals.
25
size of the
community, and low
regional
unemployment rate.
students or those on
work visas) make up
less than 5% of the
seasonal workforce.
than 2% of the total
workforce during
peak periods).
RSE worker
accommodation
Mix of
accommodation
types either RSE-
owned or through
third party providers.
Onsite orchard
accommodation,
private rentals,
motels, temporary
buildings
(portacoms).
New purpose-built
accommodation and
some use of private
rental houses.
Mix of
accommodation
types. Onsite orchard
accommodation,
residential rentals,
worker lodges.
Investments are
being made in new
purpose-built
accommodation.
Mix of
accommodation
types largely through
third party providers.
Onsite orchard /
packhouse
accommodation,
backpacker hostels,
holiday parks,
campgrounds.
Little investment, at
this stage, in RSE-
owned or purpose-
built accommodation.
Two RSE
accommodation
providers: Holiday
park and motor
camp.
Majority of RSE workers are
housed in onsite orchard
accommodation, small
numbers accommodated in
local backpackers or in private
rentals.
26
Part 1. Community impacts
Impacts of horticulture and viticulture industry expansion, associated with RSE, on
and for local communities
The contribution and impact of industry
expansion, associated with RSE, on and for
local communities
• Industry-wide expansion, supported by RSE
labour, is making a direct economic
contribution in the six communities
examined. This expansion generates
multiplier effects as businesses that directly
support H/V enterprises, such as land and
land services, transport and distribution,
agricultural services and equipment,
construction, and accommodation services
also expand. The H/V industries are a major
employer and a significant contributor to
regional economies, and their continual
expansion fuels further economic growth
and prosperity.
• Expansion is generating more employment
opportunities for New Zealand workers, in
permanent and seasonal jobs, as H/V
enterprises shift towards year-round
production-related activity, crop varieties
change, and greater volumes are produced.
Factors that influence the impact of industry
expansion on local communities and
economies
• Size and demographic profile of the local
community.
• Size of industry as a share of the total
regional economy (i.e. what is the relative
contribution of the H/V industries to the
regional economy, how much local
employment does it generate?).
• Type of production and length of the peak
season – does production generate spikes
and troughs in worker numbers or is there
now a year-round demand for labour?
• Scale of expansion and associated impacts on
land, housing, infrastructure and services
required to accommodate increasing worker
numbers.
• Local labour pool – availability and suitability
of local workers.
• Wage rates that industry will pay for seasonal
work.
• Availability of migrant labour.
• Competing demands for labour from other
industries with more competitive wage rates.
• Availability of local housing, services.
• Changing land use and environmental
impacts.
Findings
New Zealand’s horticulture and viticulture industries have been in growth mode since the mid- 2000s,
and have changed dramatically over the past decade, with increasing international demand for New
Zealand products and strong growth in export markets.
21
Three crops dominate the country’s
horticultural exports: kiwifruit, grapes and apples. Over the past five years there has also been
substantial growth in exports of avocados and cherries. In 2018 horticultural produce exports reached
$5.5 billion, representing an increase of more than 100 percent in the total value of New Zealand’s
horticultural exports from a decade earlier (2007; $2.7bn). More than a third (34%) of export revenue
is attributable to kiwifruit, followed closely by wine (31%), with apples accounting for 14 percent. For
kiwifruit and apples, continental Europe and Asia (especially China) are the largest export markets,
21
Horticulture New Zealand (2018a). Provincial Growth Fund Application for funding.
27
accounting for more than 50 percent of exports. For the wine sector, the USA, United Kingdom and
Australia are the primary markets.
22
Associated with strong growth in exports there has been widespread expansion of areas under
planting, a shift towards new, more productive varieties and planting systems that produce higher
yields in a shorter time frame, and reach maturity at different times.
23
The shift towards higher yield
varieties and planting systems was noted across a range of crops: apples, kiwifruit, cherries and
grapes. These changes work to extend the picking, packing and pruning seasons and, by default,
increase both the demand for labour and the length of time labour is required.
In all six communities the H/V industries are a major local employer and make a sizeable contribution
to the local economy. In the case of Te Puke, kiwifruit is the largest sector of the district’s economy,
contributing 65 percent to the district’s GDP.
24
Informants in all communities spoke of the
widespread expansion taking place and the significant multiplier effects on those businesses that
support the H/V industries, such as land and land services, transport and distribution, agricultural
services and equipment, irrigation, construction and accommodation services, as well as the flow-on
effect of greater employment opportunities for New Zealand workers.
25
RSE has become “big business” for third-party providers of accommodation and transport. A wide
range of accommodation types are used by RSEs, including holiday parks, campgrounds, backpacker
hostels, motels and private rental houses. Some employers hire vans for the season that are used by
their RSE workers; one employer estimated they spend around $500,000 each season on vehicle hire.
Other employers make use of third-party providers to transport workers to and from work each day
in shuttle buses and minivans. In some communities, such as Blenheim and Hastings, RSEs have
made significant investments in purpose-built accommodation, or redeveloped existing
accommodation for workers. There have also been large-scale investments in infrastructure. In
Kerikeri, Hastings, Motueka and Roxburgh, RSEs have made multi- million-dollar investments in fruit
processing facilities. These investments have significant flow-on effects for the local construction
industry, engineering firms and technology suppliers to name a few.
22
Horticulture New Zealand (2018b). Fresh facts 2018. Auckland: Plant & Food Research; Horticulture New
Zealand (2017). Fresh facts 2017. Auckland: Plant & Food Research.
23
New apricot and cherry plantings under a new orchard planting system have shown potential yields of up to
24 tonnes per hectare in their third and fourth year from planting, compared with average yields of 15 tonnes
per hectare from fully mature trees grown in conventional configurations (Horticulture New Zealand, 2018b, p.
15).
24
Western Bay of Plenty District Council (2016). Seasonal worker accommodation review. Retrieved from
http://www.westernbay.govt.nz/our-district/current-projects/Documents/Research%20Report%20-%203%20-
%20Seasonal%20Worker%20Accommodation%20Review%20-%20%28for%20Public%20release%29.pdf
25
Industry expansion generates backwards and forwards linkages or multipliers. Backwards linkages are flow-
ons from sectors that supply inputs into growing fruit. These sectors supply the infrastructure that is required
to support the vines, grow the fruit, deliver fruit to the packhouse and so forth. Forward linkages are flow-ons
to sectors that make use of the fruit to create additional products and value added for the regional economy.
Related sectors include other food manufacturing, supermarket and grocery retailing, food and beverage
retailing. See Scrimgeour, F., Hughes, W. & Kumar, V. (2017). The economic contribution of kiwifruit industry
expansion to the Bay of Plenty, Northland and New Zealand economics. Report for Zespri International Limited.
Hamilton: Institute for Business Research, University of Waikato.
28
RSE workers make a direct economic contribution through spending on goods and services in local
towns, but the benefits are localised. Workers spend money in major retailers such as local
supermarkets, The Warehouse, and electronics stores, and in fast food outlets and second-hand
shops. But they make minimal contributions to more specialised stores such as local cafes and bars,
restaurants, and movie theatres. RSE workers are in New Zealand to earn and save money – not to
spend. Private sector informants felt this savings focus limited workers’ direct economic impact on
the local community.
Industry informants and employers in all regions noted the RSE scheme’s critical and enabling role in
the expansion of the H/V industries due to the certainty of labour that the scheme provides. The RSE
scheme enables producers to achieve greater scale, efficiency and productivity due to: a core,
seasonal labour force over peak periods; improved quality of pick; and stabilisation of production
(crop picked and packed at optimum time). Employers in every community report growing business
confidence on the back of RSE which in turn fuels expansion. This expansion has multiplier effects on
other, related industries, which fuels further economic growth and prosperity in local communities.
RSE labour makes up a relatively small component of the total seasonal workforce in several regions
including Bay of Plenty (17%) and Central Otago (15%).
26
Nonetheless, RSE workers have become the
linchpin of the H/V industries due to their reliability, consistency and quality of work. In communities
where RSE workers can be employed in the packhouse, such as Te Puke and Motueka, the reliability
of labour for night shift work is facilitating the shift to 24/7 operations which, in turn, enables greater
volumes of fruit to be processed. One employer stated they are now packing over 40 million trays in
their packhouse, more than double the amount packed a decade ago, and this is solely down to the
use of RSE workers for night shift work. Access to labour via the RSE scheme is now considered an
essential part of the business model for large producers focusing on premium export markets, and
the guaranteed supply of labour is facilitating the shift towards year-round production-related
activity. This is an intended consequence of RSE – one of the policy’s primary aims it to “transform
the H/V industries from low-cost industries to industries based on quality, productivity and high value
through improved business practices”.
27
What may have been an unintended consequence, however, has been the scale of consolidation and
rationalisation of the H/V industries, and the resulting disappearance of smaller, family-run
operations. This has been facilitated, to varying degrees, by foreign investment that has supported
the expansion of H/V enterprises, enabling producers to acquire more land for orchard and vineyard
blocks, and make large-scale capital investments in new production facilities. With increasing foreign
investment, the ownership structure of H/V enterprises is changing. Smaller family-run operations
have restructured and merged with larger corporates, or formed consortia (e.g. Golden Bay Fruit) to
operate more effectively in the domestic and international markets. As the scale of their operations
has increased, their labour needs have also changed. Major investments in new plantings and new
processing facilities drive greater demand for labour. These labour needs cannot reliably be met by
26
Druce Consulting (2018). Central Otago labour survey horticulture and viticulture. Alexandra: Druce
Consulting; NZKGI (2018). New Zealand kiwifruit labour shortage. Tauranga: NZKGI.
27
Department of Labour (2010, p.5).
29
traditional sources such as local workers and backpackers, leading to an increasing reliance on RSE
labour.
Consolidation and rationalisation of the H/V industries was a common theme raised in the six
communities. New Zealand’s wine industry, in particular, has seen significant foreign investment
over the past decade, with large multinationals (e.g. Constellation Brands, Treasury Wine Estates)
purchasing sizeable tracts of vineyard land in Marlborough and Central Otago.
28
Informants in
Blenheim voiced some concerns about the scale of foreign investment and the flow of money out of
the region. In Central Otago, informants were more positive about foreign investment as a means of
supporting development of the local wine industry and creating employment both on the vineyard,
and in associated jobs e.g. at cellar doors and vineyard restaurants. In Kerikeri informants noted that
smaller kiwifruit growers are being squeezed out of the industry due to the high costs of licenses for
SunGold plantings ($270,000 per hectare).
As H/V enterprises expand and shift towards year-round production-related activity with new
varieties coming online, recruiting and retaining skilled New Zealand workers has become a priority.
As one informant explained, when the H/V industries were made up of a lot of small producers, they
were characterised by irregular patterns of demand for labour – it wasn’t possible for small
enterprises to offer year-round work. As the H/V industries have consolidated and grown in size, they
can now offer year-round employment. This in turn provides New Zealand workers with a regular,
secure income which is improving livelihoods. The demand for skilled labour has led to a strong push
by industry organisations to make the H/V sectors more attractive to local workers, particularly
through opportunities for training, career development and progression.
29
Nonetheless, RSEs in
Motueka, Hastings and Roxburgh noted the ongoing challenges of finding skilled, permanent staff to
perform some of the more senior, technical roles associated with development and infrastructure
work, before RSE workers arrive for the peak harvest periods.
In Kerikeri and Hastings informants described the substantial efforts that are made by some RSEs to
recruit and retain New Zealand workers, both permanent and casual staff, by offering a range of
incentives and wrap-around support services. In Motueka, views were mixed on RSEs’ engagement
with Work and Income (W&I) and their efforts to employ local workers. According to one informant,
RSEs have “become complacent” in their efforts to recruit New Zealanders because of an assumption
that RSE labour is now available “as a matter of right”. Other informants in Motueka disputed this,
arguing that RSEs work hard to maintain a good working relationship with W&I, and would employ
more locals if they were available. Similarly, in Blenheim and Roxburgh, the low unemployment rates,
at 4.2 percent and 2.5 percent respectively (December 2018), were cited as barriers to engaging more
New Zealanders.
The current phase of rapid industry expansion is affecting the size, scale and workflow for picking,
packing and pruning, and is leading to shortfalls of labour in many regions. These shortfalls are
28
https://www.stuff.co.nz/business/89182742/vineyard-land-and-forestry-plantations-attract-foreign-buyers-
in-marlborough https://www.stuff.co.nz/business/109338557/foley-family-wines-gets-oio-go-ahead-to-buy-
mt-difficulty--after-one-year
29
Horticulture New Zealand (2018a).
30
exacerbated by a tight labour market across New Zealand (with a national unemployment rate of
4.3% in December 2018)
30
that means most industries are struggling to find skilled and unskilled
labour. Official seasonal labour shortages were declared in four of the six regions in the 2017/2018
season: Bay of Plenty (kiwifruit), Hawke’s Bay (pipfruit), Tasman (pipfruit) and Central Otago
(pipfruit, grapes, cherries). In 2019, the Hawke’s Bay and Bay of Plenty have both declared official
seasonal labour shortages. The Hawke’s Bay requires an estimated 300-400 additional workers
during harvest, while the kiwifruit sector requires an extra 3,800 workers over the peak harvest
period.
31
This is a significant shortfall, and one that is expected to grow as production volumes
increase in line with the industry’s target of generating $4 billion in revenue by 2027.
32
In Central
Otago, informants said the only “saving grace” this season was the lower than expected production
volumes of cherries due to unseasonably cold, wet weather during Spring.
33
If cherries had been in
full production, informants felt the region would have declared another official labour shortage to
cover the peak period during December and January.
While the H/V industries have expanded in all six communities and their surrounding environs, the
impacts of this expansion differ. In a community such as Kerikeri that has relatively few RSEs (8),
small numbers of RSE workers (approx. 330 in 2017-18), and sustained year-round production (no
major peaks or troughs in production or worker numbers), the impacts of RSE are fairly limited. The
district’s kiwifruit industry is undergoing sustained expansion, but this has yet to place any real
demands on the community. The horticulture industry in the Far North District employs a large
number of local workers, supplemented by RSE labour, and there is minimal pressure from RSE
workers on local housing stock or services.
For other communities, such as Te Puke (and to a lesser extent Hastings), that have undergone rapid
industry expansion over the past decade, have major peaks to production and experience large
influxes of seasonal workers during harvest periods, the impacts of expansion are more mixed. While
the horticulture industry is a major contributor to the local economy, and seasonal workers make a
direct economic contribution through spending in local towns, the influx of workers places real
pressure on local housing stock, and to a lesser extent on infrastructure and services. Similarly in
Blenheim, rapid expansion of the wine industry over the past two decades has generated significant
wealth, but a lot of that wealth returns to owners and investors living outside the region. The changes
in land use that have occurred as arable farm land has been converted into vineyards, as well as the
growth in seasonal worker numbers, has led to some resistance among the local Blenheim
community towards this expansion.
Roxburgh provides a different example. Located in the Teviot Valley, with an ageing, largely
European/Pākehā population of around 520 at the time of the 2013 Census, the small, rural
30
http://webrear.mbie.govt.nz/summary/new-zealand?accessedvia=new-zealand&areatype=nz
31
https://www.immigration.govt.nz/about-us/media-centre/news-notifications/seasonal-labour-shortage-
declared-in-hawkes-bay; https://www.tvnz.co.nz/one-news/new-zealand/labour-shortage-declared-in-bay-
plenty-kiwifruit-industry-short-3800-workers
32
NZKGI (2018).
33
By the last week of December 2018, the local industry had exported only 116 tonnes of cherries, equivalent
to less than 10 percent of the volumes (1,209 tonnes) exported by the same time in December 2017 (King, D.
(2019). Drying, flying machines tackle frost in Central Otago. The Orchardist).
31
settlement of Roxburgh and the neighbouring community of Ettrick (estimated population of around
200) experience an influx of close to 1,200 seasonal workers each year. Of those, the majority (60%)
are backpackers.
34
RSE workers, numbering around 300 and mainly from Vanuatu, make up 25
percent of the seasonal workforce. The influx of 1,200 seasonal workers into Roxburgh and Ettrick,
mainly for the cherry and pipfruit harvests, almost doubles the size of the two communities’
combined population of 720 residents. According to informants in Roxburgh, however, seasonal
workers in general, and RSE workers in particular, currently place minimal pressure on the town’s
local housing stock, infrastructure or services. The vast majority of RSE workers are housed in onsite
accommodation. The town’s sole medical practice reports that it is not under major pressure from
RSE workers, and the workers make an important economic contribution to local retailers such as the
local supermarket and petrol station.
The Roxburgh community makes a concerted effort to welcome and integrate seasonal workers
(both RSE workers and backpackers) into the community through local events and other strategies
(discussed further below). In Roxburgh, more so than any other community, there is widespread
acceptance that RSE workers are an integral and essential part of the local horticulture industry.
Horticulture, along with pastoral farming, are the cornerstones of the Teviot Valley economy; the
prosperity of Roxburgh relies on the horticulture industry which is, in turn, dependent on seasonal
workers. Informants noted that local pipfruit and summerfruit producers would not be viable export
operations without RSE – it is the certainty of RSE labour that enables them to continue operating
and, in many cases, expand.
A 2018 report by the New Zealand Institute for Economic Research (NZIER) prepared for Hort NZ, NZ
Kiwifruit Growers, NZ Apple and Pears and NZ Wine forecasts continued growth across the H/V
industries over the next decade in both production and area planted.
35
In the kiwifruit industry the
shift in plantings from Haywood (green) to Zespri’s high-returning SunGold variety will drive growth
in production and associated labour demand. Strong growth is forecast for pipfruit in the Hawke’s
Bay, driven mainly by an increase in area planted. Similarly, growth in wine production is forecast to
occur in Nelson-Marlborough due to increased areas under planting. In Central Otago, significant
expansion of cherry plantings over the next four to five years (56% increase on current plantings) is
forecast with new, higher yield varieties and plantings systems driving growth in production and
demand for labour.
36
The NZIER report notes greater numbers of seasonal workers will be required year-round: pipfruit
from February to June; kiwifruit from April to May; wine from May to September; and summerfruit
from November to February.
37
The shortfall of labour across the H/V industries is expected to increase
by an extra 5,000 workers by 2024/25.
38
Horticulture and viticulture are competing with other
34
Druce Consulting (2017). Support and integration of seasonal workers in the Teviot Valley. Report to the Teviot
Valley Community Development Governance Group. Alexandra: Druce Consulting.
35
New Zealand Institute of Economic Research (NZIER) (2018). Horticulture labour supply and
demand. 2018 update. Wellington: NZIER
36
Druce (2018).
37
Druce (2018); NZIER (2018).
38
The projected shortage is not broken down into permanent and seasonal worker numbers.
32
industries such as tourism, forestry and construction for low-skilled labour. New Zealand’s ageing
population will also start to affect labour supply, especially in Nelson-Marlborough, Northland,
Hawke’s Bay and Bay of Plenty.
39
Research and development (R&D) into mechanisation of the H/V industries is underway with many
of the larger corporates investing significantly in automation. There are a range of automated
picking, packing and pruning technologies already available or in the pipeline, but it is anticipated any
real advances in automation are still 5-10 years away due in large part to the costs involved. Moreover,
automation won’t replace people, rather a different type of (more skilled) worker will be needed in
future to work in mechanised environments.
Informants in the six communities voiced concerns that expansion is taking place with relatively few
constraints and without enough consideration to future labour needs. This is particularly evident in
the viticulture industry where informants noted a disconnect between those that own the vineyards
(often with foreign investors) and those that supply the labour. In Blenheim, where contractors
provide the majority of labour, vineyard owners continue to expand on the expectation that contract
labour will always be available – and that this labour will come via the RSE scheme. Not enough
thought is being given to how workers will be accommodated, and some of the pressures that
growing numbers of workers will place on local infrastructure (e.g. roads, wastewater) and services
(e.g. medical services). Without more conscious planning around the feasibility of hectares planted,
volumes produced and the labour that will be required to service that growth, RSE employers, the
wider H/V industries, and local communities, will become increasingly reliant on the RSE scheme to
meet their labour needs. This will be evidenced by continual approaches to government to raise the
RSE cap.
40
Impacts on accommodation and services
This section examines the impacts on accommodation, medical services and policing in the six
communities.
RSE worker accommodation
The contribution and impact of RSE on local
accommodation
The demand for accommodation associated with
gradually increasing numbers of RSE workers has
coincided with a tightening property market and
decreasing housing affordability in many NZ
communities over the last 5-8 years. The RSE
scheme has its most negative impact on the low-
Factors that influence the impact of RSE on
low-cost accommodation in local housing
markets
• The seasonality of demand for worker
accommodation. In the Bay of Plenty and Central
Otago, for example, large numbers of migrant
seasonal workers enter the region for a short period
of time.
39
NZIER (2018).
40
There is an administrative limit or cap on the number of RSE workers that can be taken up in any one year.
The cap was set at 5,000 places when the scheme was introduced in 2007, increased to 8,000 in the 2009/10
financial year, and has been progressively raised since 2013/14 based on employers’ demand for labour. The
most recent change, in November 2018, increased the cap by 1,750 places to 12,850.
33
cost rental market in communities with insufficient
accommodation on orchards and other properties
suitable for seasonal workers. In those
communities, the RSE scheme creates a tipping
point; as the number of RSE workers exceeds the
capacity of the low-cost housing market to
accommodate them, the scheme contributes to a
shortage of properties for locals seeking a low-cost
rental. The demand for RSE worker accommodation
has placed most pressure on the residential
housing markets in Hastings, Te Puke and
Blenheim (although two recently completed large
RSE accommodation complexes around Blenheim,
plus another in progress are going some way to
ease demand).
The RSE scheme, and associated compliance role
of the Labour Inspectorate, has raised the standard
of seasonal worker accommodation in many
regions. The Labour Inspectorate’s increased
auditing of RSE worker accommodation, with a
focus on prescribed space requirements, is having
some unintended consequences for third party
providers that house different types of seasonal
workers (e.g. backpackers and RSE workers). The
prescribed space requirements have reduced the
numbers of residents that can be housed per room.
This may lead to higher accommodation costs for
RSE workers in future as providers seek to offset
the financial losses associated with lower
occupancy rates.
• The number of RSE workers compared with the
amount of low-cost rental housing not being
occupied by locals and other seasonal workers.
• The willingness of RSE employers to invest in the
construction of new worker accommodation or
redevelopment of existing accommodation.
• Council planning requirements and restrictions.
• The dynamics of local housing markets associated
with:
increasing demand for housing in smaller
towns as a result of housing unaffordability
for first home buyers in the main centres;
retirees moving from larger to smaller centres
to get capital gains; and increasing return
migration of New Zealanders who have been
living overseas.
the decline in social housing stock over the
last 10 years e.g. there has been a 12%
reduction in social housing stock in Hastings
during the five years 2012-2017.
rental housing affordability - rents have
steadily increased over the last five years
throughout the country.
growth of house prices in lower end of
housing market is a barrier to people moving
from renting to home ownership, placing
more pressure on the private rental market.
pressure from Airbnb on the private rental
market. Houses that used to be rentals may
now be used as Airbnb short-term stays,
putting additional pressure on the rental
market.
Findings
Annual adjustments to the RSE worker cap since 2013/14 have put greater demands on low-cost
housing in communities close to where horticulture and viticulture are growth industries. Prior to the
scheme, most growers and packhouses had never provided accommodation for their seasonal
workers. Camping grounds and caravans were the preferred options for workers who were not locals.
In addition, growers and packhouses had not employed workers for such long periods of time over
the season. It took some time before RSE employers began to consider purchasing and converting
suitable properties and building new accommodation for their RSE workers. They needed to achieve
productivity gains before investing in worker accommodation and to be assured of the scheme’s
permanence.
Some RSE employers have a policy of not owning worker accommodation but rely instead on
accommodation providers. Other employers use a combination of leased and owned
accommodation for their workers. In some regions (e.g. Tasman and Central Otago) it is common for
RSE workers to be accommodated on orchards. In others (e.g. Northland and Bay of Plenty) a mix of
camping grounds, hostels and large-scale seasonal worker lodges have provided accommodation for
seasonal workers. In Marlborough and Hastings, suburban houses and ex-motels (purchased by
RSEs) provide the bulk of the accommodation. Existing houses on orchards together with new
34
temporary buildings (e.g. portacoms) are also used in Hawke’s Bay.
41
In recent years, more RSE
employers (e.g. two RSEs in Blenheim) have constructed large-scale, purpose-built accommodation
which is often located out of town due to Council planning requirements or the unavailability of
suitably zoned land for worker complexes.
Houses in residential suburbs that are used to accommodate RSE workers are usually large (4-5
bedroom) properties which are likely to have been extended to provide additional bedrooms,
bathrooms and kitchen facilities. Providing the house meets RSE accommodation standards
(including the prescribed amount of space per resident), these properties may house large numbers
of workers.
42
Such boarding-house type arrangements may not be viewed favourably by neighbours,
as in the case of a property in a Motueka suburb housing 21 workers.
43
In recent years the Labour Inspectorate has played a more proactive role auditing RSE worker
bedroom accommodation to ensure it meets minimum space requirements (6 sq.m of floor space for
one person, 9 sq.m for two people).
44
The Labour Inspectorate’s increased compliance activity has
had some unintended consequences for third party providers that supply accommodation to
different groups (e.g. backpackers and RSE workers), particularly as the space requirements for RSE
workers may differ from local government regulations around acceptable space limits. An example
provided by a Labour Inspector is the recent construction of a new backpacker accommodation
complex that has Council approval to house up to 40 backpackers. Under the minimum space
requirements for RSE workers, however, the backpacker hostel can only house 21 RSE workers. A
second example is a large multi-style accommodation complex that offers sites for tents, multi-
person bunk rooms, new stand-alone accommodation blocks and single cabins, and is used by
different types of migrant seasonal labour (RSE workers, backpackers, international students). Until
recently, the accommodation provider could house up to 500 residents. Under the newly enforced
rules, the provider can now house a maximum of 386 residents. These reduced occupancy rates pose
difficulties for providers. Unless providers increase the weekly accommodation rates for RSE workers
to cover the reduction in resident numbers, they are losing money per bed which impacts negatively
on their businesses.
In three of the six communities examined – Hastings, Te Puke and Blenheim – RSE worker
accommodation has placed pressure on local low-cost housing supply. Some informants (especially
in Hastings) shared their frustration about the impact of migrant seasonal workers (including RSE
workers) on their local housing market. An informant stated that growers need to be educated about
their responsibilities to provide accommodation for their migrant seasonal workers: “It’s not up to
the community to accommodate their workers. It’s our job to welcome them and make them feel
part of the community”. While the demand for RSE worker accommodation is putting pressure on
local low-cost housing, a much larger group of seasonal workers (e.g. backpackers and New
41
The Hastings District Council only allows non-permanent (portable) worker accommodation to be erected on
arable land.
42
All accommodation occupied by RSE workers must be approved by MBIE’s Labour Inspectorate as meeting the
RSE worker accommodation standards.
43
https://www.stuff.co.nz/nelson-mail/news/92840291/housing-rse-workers-in-converted-homes-puts-
pressure-on-motuekas-accommodation-shortage
44
RSE worker accommodation standards. Immigration New Zealand (July, 2017).
35
Zealanders entering the region for casual work) may also be contributing. These groups are not
visible in the same way as Pacific RSE workers, which means RSE workers may be being held
responsible for a much larger problem.
The pressure is most pronounced in Hastings which is experiencing a chronic housing shortage and
high levels of homelessness. The number of people approaching the Ministry of Social Development
(MSD) with a housing need (and going onto the Housing Register) increased by 101 percent between
20 June 2017 and 30 June 2018.
45
The demand by RSE workers for housing is seen as contributing to
the shortage.
46
MSD used RSE accommodation during winter for emergency housing. People were
required to move out when RSE workers began arriving in the spring which received negative
publicity in the national media. An example of displacement of locals was provided by a Hastings
informant who had got to know her new neighbours (a family). They told her they had signed up to a
two-year lease. A little time later, the family had to move out because the landlord had broken the
lease. The informant subsequently found out that the landlord had signed a rental agreement with
an RSE employer to house some of its workers. The recently completed renovation of a large complex
(Angus Inn which is an ex- motel/hotel) by a large RSE employer which has capacity for 300 RSE
workers will help to ease the pressure of RSE on the Hastings rental market.
Similarly, Te Puke lacks suitable low-cost housing for local families and migrant seasonal workers.
The unaffordability of housing in Tauranga has led first-home buyers to look further afield to Te Puke,
Te Puna and nearby rural locations in search of affordable properties.
47
The effect on housing prices
has been significant - in February this year, the median house price in Te Puke-Maketu was $530,000,
an increase of 88 percent since 2014.
48
The demand for rental housing for locals is such that a Te Puke-
based group, Empowerment NZ, has a dedicated team looking for solutions to house the homeless.
The demand for worker accommodation is complicated by the short harvesting window for kiwifruit
before export quality is compromised.
49
A large number of migrant seasonal workers arrive in Te Puke
and its environs for a relatively short period of time and need to be housed. The impacts of
accommodation shortages are illustrated in a recent situation - a viticulture RSE labour contractor in
Blenheim on a joint venture with a kiwifruit RSE moved approximately 150 of its workers to Te Puke
for the kiwifruit harvest. More workers could have gone but there was no accommodation available
for them.
In Blenheim the majority of RSE worker beds are supplied by labour contractors, rather than wine
growers. Accommodation includes rental houses, backpackers and converted motels. Like many
centres, Blenheim has experienced housing pressures especially for low-cost housing. It is one of ten
45
https://www.msd.govt.nz/documents/about-msd-and-our-work/work-programmes/housing/
public-housing-plan/2018-public-housing-plan.pdf
46
https://www.stuff.co.nz/dominion-post/news/hawkes-bay/112622422/councils-ask-government-to-step-in-
over-hawkes-bay-housing-crisis
47
https://sunlive.co.nz/news/151123-tauranga-house-prices-plateau.html
48
https://www.stuff.co.nz/business/property/110583816/priced-out-home-buyers-who-cant-afford-
provincial-cities-are-heading-to-these-hot-spots
49
New Zealand Kiwifruit Labour Shortage. New Zealand Kiwifruit Growers Incorporated. Retrieved from
https://nzkgi.org.nz/wp-content/uploads/2018/07/NZ-Kiwifruit-Labour-Shortage-July-2018.pdf
36
centres to receive Housing First funding, a government initiative to reduce homelessness.
50
The
pressure on Blenheim’s low-cost housing market has eased in the last 12-18 months due to the
construction of two purpose-built RSE accommodation complexes housing 600 workers. A consent
application is currently with the Council for a new complex to house an additional 250 RSE workers.
The only communities in the study that are not currently experiencing housing pressure as a result of
RSE are Kerikeri and Roxburgh. In Kerikeri all RSE workers are housed in two accommodation
complexes: a holiday park in central Kerikeri, and a motor camp on the outskirts of town. In Roxburgh
the majority of RSE workers live in accommodation on orchards, in hostels or a hotel in Roxburgh.
There is only one residential property in Roxburgh housing RSE workers. Informants acknowledge
that any future growth in RSE worker numbers will cause accommodation problems. The small size
of the town and the demand from New Zealanders for holiday homes in the area means there are no
residential properties available for purchase or rental.
Rents in the private rental market have steadily increased in some regions. For example, the mean
rent for a three-bedroom house in Flaxmere East, a suburb of Hastings where many RSE workers are
housed in rental properties, increased by 23.6 percent in the five years September 2012-September
2017.
51
Such increases were also described by a landlord we interviewed who rents houses around
Hastings to RSE employers for their workers. The weekly rent of his properties has increased from
$80/worker in 2008, to $120 for the 2018/19 season. He anticipates a further increase for the 2019/20
season. The demand for private rentals has benefitted landlords, for example, two or more RSE
employers may be vying for the same rental property for their workers. Landlords gain premium rents
by housing a group of RSE workers in a property for seven-nine months, rather than renting to a
family for a year for a lesser amount. Such rent increases were also reported by the RSE team leaders
we interviewed. They are one of the major causes of complaint by workers who return for successive
seasons. This is discussed further in the section dealing with “Cost of living in New Zealand”.
At the 2018 RSE Employer Conference, the Minister of Immigration the Hon. Iain Lees-Galloway
urged employers to provide worker accommodation that does not take residential housing away
from New Zealanders. The increasing use of joint ventures among RSE employers has changed the
economics of providing accommodation for some growers – having the opportunity to have RSE
workers using accommodation for more than seven months of the year is made possible by joint
ventures and this is increasingly important in the wine and kiwifruit industries.
Interviews with RSE employers and local government officials highlighted the constraints facing
employers wishing to develop new seasonal worker accommodation or convert existing buildings.
Constraints include the time and cost involved in resource management consenting, and the lack of
availability of appropriately zoned land within walking/cycling distance of town. Requirements of
council district plans for seasonal accommodation, especially those that place restrictions on use
50
https://www.stuff.co.nz/business/property/105735200/housing-shortage-first-hurdle-as-housing-first-
moves-to-marlborough
51
A stocktake of New Zealand’s housing. February 2018. Johnson, A., Howden-Chapman, P. & Eaqub, S.
Ministry of Business, Innovation and Employment. Retrieved from https://www.beehive.govt.nz/
sites/default/files/2018-02/A%20Stocktake%20Of%20New%20Zealand%27s%20Housing.pdf
37
other than by seasonal workers, act as major disincentives for RSE employers to invest in worker
accommodation.
52
Some examples of resource planning constraints are summarised in Table 5.
Table 5. Resource planning constraints for seasonal worker accommodation
Community
Constraints
Blenheim
Marlborough District Council District Plan does not allow properties built to house seasonal
workers to be used for any other purpose. The complexity and duration of the consenting process
for purpose-built seasonal worker accommodation were noted in a 2018 report prepared for the
Marlborough District Council.53
Hastings
Hastings District Council District Plan currently does not allow the construction of permanent
accommodation on productive land. The Council is currently considering amending this to allow
worker accommodation to be built on orchards.54
Kerikeri
The Far North District Council District Plan does not allow the construction of large
accommodation complexes on land used for horticulture or horticulture processing.
Te Puke
The Te Puke Community Board has identified seasonal worker accommodation as the most
significant challenge for its community. The Board’s 20 -year plan (updated in 2016) notes its
intention to establish dialogue with Western Bay of Plenty District Council to investigate possible
consent and compliance concessions for short term RSE accommodation needs.55
A labour needs analysis commissioned by New Zealand Kiwifruit Growers in 2018 noted that
sewerage and water consent fees for seasonal accommodation can be prohibitive.56
Respondents to a seasonal accommodation survey for the Western Bay of Plenty District Council
completed in November 2016 identified the District Plan as a significant limiting factor for
employers to develop new accommodation for seasonal workers. Eight specific requirements and
restrictions of the District Plan were identified as constraints.57
Lastly, during our fieldwork we visited many RSE worker accommodation sites and observed
significant variations in quality. Some RSE workers continue to be housed in mediocre
accommodation with poor insulation and heating and relatively few amenities. For the most part,
however, the RSE scheme has had a positive impact, raising the standard of seasonal worker
accommodation. This is particularly evident in those communities where RSEs are investing in
purpose-built accommodation or redeveloping existing accommodation sites. These large-scale
capital investments have positive flow-on effects for associated industries such as construction, as
well as caretaking, cleaning and catering services that support workers during their stay. Some large
RSEs that have built or renovated large scale complexes are raising the bar on RSE worker
accommodation.
52
We did not examine the District Plans for the six communities. Consequently, there may be additional
constraints not identified in this report.
53
Housing and Business Development Capacity Assessment for Blenheim, 2018. Retrieved from
https://www.marlborough.govt.nz/repository/libraries/id:1w1mps0ir17q9sgxanf9/hierarchy/
Documents/Your%20Council/Environmental%20Policy%20and%20Plans/Nat%20Policy%20Statement%20Urba
n%20Dvpmt%20List/NPS_Urban_Development_Capacity_2018.pdf
54
https://www.stuff.co.nz/dominion-post/news/hawkes-bay/112622422/councils-ask-government-to-step-in-
over-hawkes-bay-housing-crisis
55
https://www.westernbay.govt.nz/our-district/our-community/community-lans/Pages/default.aspx
56
New Zealand Kiwifruit Labour Shortage. New Zealand Kiwifruit Growers Incorporated. Retrieved from
https://nzkgi.org.nz/wp-content/uploads/2018/07/NZ-Kiwifruit-Labour-Shortage-July-2018.pdf
57
Western Bay of Plenty District Council Seasonal Worker Accommodation Review. November 2016. Retrieved
from https://www.westernbay.govt.nz/our-district/current- projects/Documents/ Research% 20Report%20-
%203%20-%20Seasonal%20Worker%20Accommodation%20Review%20-%20(for%20Public%20release).pdf
38
Impacts on medical services
The contribution and impact of RSE on local
medical services
The RSE scheme is having an impact on local health
services in the six communities but this is not
considered to be causing major problems. This is
largely due to changes that medical practices have
made in several communities (Kerikeri, Hawke’s
Bay, Blenheim) to better cater for RSE worker
patients and to minimise disruption to local
residents enrolled in their practice. Informants from
these practices are satisfied that these changes are
working well, which is generally endorsed by local
pastoral care workers. In three communities
(Kerikeri, Motueka, Roxburgh) the number of RSE
workers in the community is smaller, with limited
impact reported on medical services.
While the demands RSE workers place on local
medical practices have not caused major problems,
at the national level the RSE scheme presents some
risks to New Zealand’s health system. Limited
medical screening in PICs, and an absence of
medical histories for RSE workers, means that an
undefined number are entering New Zealand with
pre-existing conditions, some of which may require
medical treatment in New Zealand (including
hospitalisations). This issue is being examined in
MBIE’s RSE Health Review. There are also concerns
within the Ministry of Health about the potential
outbreak of communicable diseases in the case of
RSE workers who are not fully immunised.
Factors that influence the impact of RSE on
local medical services
• The number of RSE workers living in or in the
vicinity of the community.
• The capacity of local practitioners to provide
medical/dental services for growing resident
populations, and the extent of any spare
capacity.
• RSE workers may constitute only part of an
increase in demand for medical and dental
services. Other seasonal workers and tourists
may also place pressure on local medical and
dental services e.g. tourists in Motueka.
• The responsiveness and flexibility of medical
practices to cater for RSE workers who are not
enrolled in the PHO.
Findings
MBIE is currently undertaking an RSE Health Review examining health screening capacity in Pacific States, the impacts of
RSE workers’ healthcare on New Zealand’s health services, and worker health insurance. The following findings (together
with the findings about worker health in Part 2) will contribute to this review.
In five of the six communities we visited the medical centre that caters for the majority of RSE
workers in the community (as advised by the medical centre or an RSE employer). Medical practices
visited in four communities have recognised that RSE workers are an on-going part of their local
community and have put specific arrangements in place to assist them (despite workers not already
being enrolled in the practice). Such arrangements reduce the impact of RSE workers on medical
services and minimise disruption to enrolled patients. These arrangements include:
• A designated time for RSE workers with non-urgent conditions to visit the medical centre.
This minimises workers’ time away from work.
• RSE workers with non-urgent conditions are brought into the practice in groups by the
pastoral care worker who rings in beforehand to advise the number of workers requiring
treatment. The practice then allocates a doctor or nurse for the workers at a specified time.
• The Marlborough PHO has set up a new clinic in Blenheim for RSE workers, other seasonal
workers and tourists who are not enrolled in a GP which is open 12 hours a day. The clinic has
39
taken pressure off local G.P.s and reduced the number of RSE workers presenting at the
Emergency Department after-hours.
• The strengthening of relationships between medical centres and local RSE employers, for
example, medical centre staff attending RSE employer forums.
Medical practices visited in the remaining two communities treat RSE workers as visitors or casual
patients. Residents are prioritised for treatment over RSE workers and other casual patients.
Medical practitioners interviewed in Hastings, Blenheim and Kerikeri identified a number of ways in
which medical services could be improved for RSE workers, including health promotion and accident
prevention.
• Workers should be required to bring their medical history with them to New Zealand,
especially immunisation history, and allergies to particular medicines.
58
• Health screening is provided to workers on their arrival in New Zealand to screen for pre-
existing conditions, particularly cardio-vascular conditions and diabetes. Screening would
include blood pressure, weight, and blood tests for diabetes and cholesterol.
59
• A need for improved screening in the Pacific which could be aligned to the screening done in
New Zealand.
• Education for workers about the link between poor diet and potential future health issues
e.g. diabetes, other weight-related conditions. A medical informant said that RSE workers
were more likely to listen to a medical practitioner talk about the importance of good diet for
energy and health, than they would to a pastoral care worker.
• A medical practice would like to offer clinic style, multi-disciplinary arrangements where
medical staff visit RSE workers at their worksite or accommodation. There are overseas
workplace models that could be replicated for RSE workers. The clinic could include an
occupational health nurse who would provide education to reduce the number of work-
related injuries (e.g. the importance for workers to wear the right shoes to avoid strained
ankles and falls off ladders etc.), a physiotherapist, and a nutritionist to educate workers
about eating for energy and health.
• Notification in advance of any increases in RSE worker numbers.
The Ministry of Health was interviewed about any potential population-health issues related to the
annual arrival of large numbers of RSE workers. A senior health official emphasised the importance
of preventative measures to optimise RSE worker health. Such measures will minimise health risk to
New Zealanders and reduce the possibility of workers putting pressure on New Zealand’s primary
and secondary health systems. The official stressed the importance for RSE workers to arrive in New
Zealand with up-to-date vaccinations (i.e. MMR, tetanus, whooping cough and chicken pox). If
workers arrive without these vaccinations, the Ministry strongly recommends that the RSE employer
arranges for workers to get vaccinated. Flu vaccinations are also recommended. While the timing of
58
It should be noted however that most RSE workers will not have access to written medical histories.
59
Orbit Health Insurance has teamed up with two RSE employers to do NZ-based laboratory testing of workers
for a range of conditions e.g. diabetes, anaemia, hypertension, STDs. The testing is partly subsidised by the
local District Health Board.
40
the vaccination for workers arriving late in the year or early in the new year is not optimal (as the
vaccine’s effectiveness will be waning), the Ministry advises that the vaccine will provide workers with
some coverage. The flu vaccine for the upcoming winter is usually available in mid to late March for
privately funded patients.
The Ministry official also highlighted the risks of communicable disease outbreaks (e.g. salmonella,
hepatitis) which spread quickly among people living in confined spaces such as those accommodating
RSE workers. Such an occurrence could put pressure on New Zealand’s primary and secondary health
systems. An outbreak of Varicella (chicken pox) among RSE workers in Hawke’s Bay in February 2017
was reported in the New Zealand Public Health Surveillance Report.
60
61
In March 2019, 31 cases of
H1N1 influenza were confirmed among RSE workers in the Hawke’s Bay who had recently arrived in
New Zealand. Two of these workers were hospitalised.
62
The Hawke’s Bay District Health Board has produced a “Health Toolkit for the RSE scheme” for RSE
employers and pastoral care workers.
63
The toolkit provides information on communicable diseases
and their prevention, personal hygiene, nutrition, oral health, safe sex, alcohol and drugs.
Undisclosed pre-existing medical conditions are another major concern, not only for employers but
for RSE health insurance providers. As a condition of their Limited Purpose Visa, RSE workers are
required to apply for and be approved by one of the two New Zealand health insurance providers
offering medical cover to RSE workers - Orbit Health Insurance and Southern Cross Health
Insurance.
64
(Orbit covered migrant seasonal workers prior to RSE, while Southern Cross is a newer
entrant). The application form (in English), which is filled out by the worker prior to leaving home,
requires the worker to document any pre-existing medical conditions. This raises two questions: do
workers (especially those who do not speak English) understand what the term “pre-existing
condition” refers to? If a worker is aware of an existing medical issue, how likely are they to document
this information if it could result in them being declined medical insurance and therefore make them
ineligible for a visa? The medical and financial consequences of workers’ undisclosed medical
conditions for the New Zealand health system can be very significant. There have been cases of RSE
workers returning home after a stay in a public hospital (and in debt to the district health board) due
60
ESR for the MoH. The New Zealand Public Health Surveillance Report, An outbreak of Varicella (chickenpox)
among orchard workers [Hawkes Bay] p. 6-7, June 2017. Retrieved from https://surv.esr.cri.nz/
PDF_surveillance/NZPHSR/2017/NZPHSRJune2017.pdf
61
The above paper notes that in tropical countries chickenpox is not a usual childhood infection due to its
transmission being less effective in tropical temperatures. The risk of severe disease, usually with Varicella
pneumonia, increases with age.
62
https://www.stuff.co.nz/national/health/110991662/flu-outbreak-in-hawkes-bay-fruit-fields-puts-workers-
out-of-action
63
Hawke’s Bay District Health Board, March 2016. Health Toolkit for the RSE Workers scheme. Retrieved from
https://www.hawkesbay.health.nz/assets/.../Health-Tookit-for-RSE-Workers-Scheme.pdf
64
Three levels of medical cover are offered by Orbit: level 1 - basic cover and prescriptions; level 2 - hospital
treatment; level 3: blanket cover of pre-existing conditions (including cancer, stroke, heart attack and coronary
artery disease) in addition to the $5,000 limit under the worker’s base policy. The level 3 policy introduced in
December 2016 is only available to employee groups rather than to individual workers. This means an RSE needs
to sign up all of its workers to the policy. To-date no RSEs have taken up the level 3 policy. Orbit advises that
employers argue it is not mandated by Government and it will cost workers more (c.$4/week).
41
to their insurance claim being rejected because their condition was deemed to be pre-existing.
65
This
topic is being examined in MBIE’s RSE Health Review.
In an effort to minimise the potential negative impacts of RSE workers on the public health system,
one RSE health insurance provider has undertaken various initiatives, including a pilot improved RSE
worker screening in NZ that covers a wide range of health concerns (e.g. diabetes, anaemia,
hypertension, sexually transmitted diseases) and more comprehensive insurance policies for RSE
workers that will cover them in the event of a serious illness (refer footnote 61).
Impacts on policing
The contribution and impact of RSE on local
policing
RSE workers currently place minimal pressure on
local police in the six communities. RSE workers
are not a major source of complaints from the
public or instigators of crimes requiring police
attention. NZ Police in several communities noted
that other groups of temporary residents pose
more challenges for policing than RSE workers.
If RSE worker numbers continue to increase, the
police officers responsible for RSE in some centres
will require additional resourcing.
Factors that influence the impact of RSE on
local policing
• The number of RSE workers living in the
community.
• The relationships local police have formed with
RSE employers and local industry groups.
• The targeting of RSE workers by local criminals
• The level of staffing and resources at the local
police station, and the pressures on local police
from the wider population (e.g. in communities
where local police resources are limited, RSE
workers may create an additional burden).
• RSE pastoral care provisions.
Findings
The New Zealand Police usually has a designated police officer in each community who is responsible
for RSE as part of their wider duties (other than Roxburgh which has a sole-charge officer). The main
aim of police is to keep RSE workers safe while living in New Zealand. In recent years, local criminals
have been setting their sights on RSE workers, with more illegal activity occurring towards workers.
According to one police officer: “RSE is an evolving beast - it varies from season to season. Each year
something will come out of left field. Local criminals will always see new opportunities”.
Officers make themselves available to RSE employers to talk to their workers on arrival about
potential risks, such as sale of stolen goods to workers, drug sales, theft of electronic and other goods
that workers have purchased to take home, recruiting by local gangs, and alcohol-related risks such
as theft of workers’ money when they are drunk.
66
It should be noted that all of these incidents have
actually occurred. Examples include:
• A drunk Hawke’s Bay worker was kidnapped and dumped under a bridge in Wairoa with his
wallet missing.
• A gang was recruiting RSE workers so it could establish itself in a Pacific country which
currently has no gang presence.
65
Verbal report from MBIE.
66
There is also an extensive briefing by NZ Police in the pre-departure material/video that has been prepared
for each country in the workers’ main language.
42
• A house on an isolated orchard was burgled twice within weeks – burglars returned the
second time to steal the replacement goods that workers had bought.
• Accommodation (a house and outbuildings) shared by 30 workers was burgled while they
were at work. One of the men had invited a woman back for the evening and it was suspected
the woman passed on information about the electronic gear she saw in the house.
While not illegal, local sex workers are targeting RSE worker accommodation sites. Some sex workers
may be gang-affiliated and are used to sell drugs to workers. Informants in four of the six
communities we visited raised prostitution as an issue of concern, mainly because of the challenge
this poses to pastoral care. RSEs that accommodate their workers on orchards generally prohibit
visits by strangers after a certain time. This applies in some large accommodation complexes like the
Kiwi Corral in Te Puke, for example. A large accommodation complex on State Highway One has had
to install a barrier arm at its entrance (like a military camp) as strangers (including sex workers) were
entering the site uninvited.
Police officers also talk to workers about their behaviour while in New Zealand, especially drunk
driving and inappropriate behaviour towards local women. When talking to new arrivals, police
officers make a special effort to be friendly and approachable as police are not always respected and
trusted in some Pacific countries. The proactive RSE employers will arrange for the police officer to
speak to their workers on arrival, while other RSEs will only contact the police when something has
gone wrong.
The RSE police officers in Kerikeri, Hastings and Blenheim report they have good links with local RSE
employers so that any incidents involving RSE workers can be dealt with quickly or potential risks
averted. Such incidents may include drunk driving, and alcohol-related behaviour in town. Some RSE
employers choose to deal with some of the less serious incidents themselves and do not involve local
police.
The following strategies have been put in place to minimise alcohol-related behaviour. Despite such
strategies, alcohol-related incidents (drunk driving, assaults) still occur. Tongan RSE workers, in
particular, are described by some informants as having a drinking culture.
• Pacific governments such as Samoa and Vanuatu have a no-drinking policy. Workers found
to be drinking are sent home with a penalty according to the severity of the incident.
Examples of sanctions imposed in the island countries include, the worker not being offered
a place in the scheme in future; the workers’ village not being allowed to send workers to NZ
for the following season.
• Many RSE employers/accommodation providers ban the consumption of alcohol on their
properties.
• RSE employers ensure that worker groups are led by effective team leaders to guide the
workers, particularly younger or new workers. The team leader may be a leader from the
workers’ village or island.
• RSE employers do not re-employ disruptive workers the following season.
There is variation in how RSE employers view workers’ use of kava. The consumption of kava is
prohibited on all accommodation sites in Marlborough. Some employers in other regions are more
flexible about its use, providing it does not impede workers’ productivity the following day.
43
Methamphetamine was discovered for the first time in 2018 in RSE accommodation in Kerikeri and
workers were sent home as a result. In past years there have been some serious sexual assault
incidents resulting in RSE workers being imprisoned.
During the period January 2018 – March 2019, 42 behavioural incidents involving RSE workers were
reported by RSE employers to MBIE and recorded on MBIE’s RSE Risk Register. Of these incidents:
• 22 (52%) were alcohol related.* 9 were driving under the influence (DUI), 7 of which resulted
in court cases where the worker was fined and/or disqualified from driving.
• 5 were drug-related (all marijuana).*
• 4 workers abandoned employment (INZ compliance involved).
• 4 alleged sexual assaults (3 reported to police).
• 4 car accidents. In 2 cases some workers were hospitalised.
• 2 theft. Both cases involved an RSE worker stealing from another worker.
• 1 illegal fishing.
* Some of the alcohol and drugs incidents involved multiple workers.
Police informants emphasised that RSE workers are not a major source of complaints by the public
or instigators of criminal activity requiring their attention. They noted that other groups of temporary
residents often pose more challenges for them than RSE workers. The pastoral care provisions in the
RSE scheme have helped to ensure the workers adjust to working and living in New Zealand without
requiring intervention from the police. If RSE worker numbers continue to increase, the police officers
responsible for RSE in some centres will require additional resourcing.
Social impacts on and for communities
The contribution and social impact of RSE on
and for communities
For most of the people in five of the six
communities we visited, the social impact of RSE
on and for the community is minimal and
superficial. The majority in the community appear
to make no distinction between RSE workers,
backpackers and other migrant seasonal workers,
and tourists - they are all regarded as temporary
residents in their community.
Workers’ participation in the community is
predominantly via church and, to a lesser extent
through sporting activities and local events (e.g.
annual Christmas parade). Workers are an integral
part of local congregations, and it is through the
church that they build some of their strongest
connections with members of the local community
Roxburgh is distinctive from the other five
communities in that it is proactively embracing RSE
and other migrant seasonal workers as part of a
wide-ranging community development initiative
funded by the Department of Internal Affairs.
Factors that influence the social impact of RSE
on and for communities
Beyond churches, marae and NGOs, the amount
and nature of interaction between the community
and RSE workers is influenced by the following.
• The number of RSE workers relative to the
size of the local population - smaller
communities may feel overwhelmed by large
numbers of RSE workers.
• The extent to which seasonal work is part of
the fabric of the community and residents are
accustomed to seasonal workers coming and
going.
• The attitude of the local community towards
the local horticulture/viticulture industry (and
therefore to its seasonal workers).
• The extent to which community members are
open and receptive to people from other
cultures living in their community.
• Language barriers.
44
Findings
Communities view RSE workers as being regular, temporary residents. Locals (particularly those in
predominantly palagi communities) have become familiar with seeing Pacific peoples on the streets
and in the supermarket. Workers’ arrival at the start of the harvest is now recognised as a regular
annual event and some informants told us they look forward to seeing RSE workers in their
community again. The ways in which informants describe their community’s interface with RSE
workers living among them can be summarised in three ways: anonymous presence, friendly faces,
personal relationships.
Anonymous presence
This is the case for the
majority of locals
Community members see workers driving on the road and in public places such as the
supermarket and other shops, waiting at the doctor’s surgery, using the money machine,
swimming or fishing at the river, or hanging around in town on a rainy day.
Friendly faces
Some locals
Community members experience something of workers’ cultures e.g. workers singing at the
local church, market and retirement villages/rest homes, participating in the Christmas
parade, performing in multi-cultural and other community events. Such performances are
well received by community members.
Personal relationships
A small number of locals
Community members have relationships with workers though marae-based, church and
NGO activities, local sports teams, and working alongside RSE workers in the workplace.
Except for pockets in the community such as churches, marae and NGOs, the communities in the
study (other than Roxburgh) can be said to acknowledge, rather than actively engage with RSE
workers who have lived among them for lengthy periods during the last 12 years. There appears to
be general acceptance that RSE workers are needed to undertake seasonal work that many New
Zealanders are unwilling to do.
Many informants we interviewed across the six communities described RSE workers as enriching
their community. An informant who lives next door to a house owned by an RSE employer
commented: The RSE workers bring a new cultural dimension to the community, providing the
community is open to Pacific cultures. The Pacific workers are generally happy people - they sing and
laugh a lot. They have a positive impact on the neighbours around them. We’re always hearing happy
sounds coming from the house. You don’t hear singing and laughter coming from other neighbours.
Some informants expressed concern that RSE workers are isolated, particularly those living in houses
in residential suburbs which lack space to socialise with other workers, especially during wet weather.
Workers end up hanging around in town in groups which may disturb some locals simply because the
men (and it usually is groups of men) are dark skinned and dressed in dark clothing. These informants
want more organised activities for workers and facilities with pool tables and other leisure activities.
Churches have been, and continue to be, hospitable towards and supportive of RSE workers living in
their community. Some provide transport for workers to attend church, while others reimburse the
petrol costs of workers living far from town. Workers may confide in church leaders about home-
related concerns (e.g. homesickness, worry about spouse) or work-related issues (e.g. insufficient
work and earnings at the beginning of the season to cover rent and living costs). Church leaders have
acted as advocates for workers (when asked by workers), particularly in the early years of RSE when
some worker accommodation was overcrowded and/or substandard. Congregations provide workers
with warm clothing, bedding, bicycles and other equipment they need while in New Zealand, plus
45
contribute goods to fill containers for workers to ship home. There are many examples of churches
providing tangible assistance to workers’ villages, particularly after disasters. Churches have also
assisted workers financially whose accommodation has been burgled, losing electrical and other
goods purchased to take home. For their part, RSE workers provide an enthusiastic presence and
joyful singing which the rest of the congregation enjoy. A frequent observation is that Pacific peoples
are happy people: “The RSE workers bring life and colour to the church and to Te Puke generally. People
look forward to the return of the seasonal workers each year. Most people love it when the ni-Vans and
others are in town”.
Local marae have welcomed RSE workers into the area and involved workers in marae activities.
Groups in communities have identified, funded and delivered specific projects in workers’ villages.
For example, members of the Te Puke community took on the task of restoring the potable water
supply for residents on Tanna Island after Cyclone Pam in 2015.
67
The community-wide effort
included the Tauranga Rotary Club that funded five large water storage tanks.
68
The “Fruit of the
Pacific” is a New Zealand-based charitable trust started by a former pastoral care provider in Te
Puke.
69
The trust works with ni-Van workers to develop skills and community development projects
e.g. the building of a cyclone-resistant eco-house; setting up of a mobile saw-mill.
The way Roxburgh is responding to seasonal workers is significantly different to the other five
communities. The Teviot Valley Community Board has been granted community development
funding of $240,000 by the Department of Internal Affairs for a project consisting of five work
streams, including one titled “Seasonal Worker Integration” which aims to make seasonal workers
feel welcome in the community.
70
An informant explained that the town’s prosperity relies on
horticulture which in turn relies on seasonal workers: “Roxburgh is in competition with the rest of New
Zealand for RSE workers. So it’s important that Roxburgh is an attractive place for them to want to come
and work. This is about survival of a small community. We have to open out our arms, not just for RSE
workers but also for working holiday makers”. To-date, the funding has enabled (among other things)
the development of a community hub on Roxburgh’s main street with free Wi-fi and “Cherry Chaos”,
an annual event based around fun activities involving cherries (including a food fight).
71
The aim of
Cherry Chaos is to build connections between seasonal workers and the locals. Another work stream
titled “Heritage” will depict RSE workers and working holidaymakers in a visual history of the
community. An informant explained how RSE workers are becoming part of the fabric of Teviot
Valley: “Every year the RSE workers are with us, they are building a history with us.”
Our interviews with some informants in Hastings revealed criticisms about the RSE scheme. The
following are identified as contributing to this response.
67
This was a joint initiative organised by OAC Ministries (a Christian faith-based group), Fruit of the Pacific and
the Te Puke Baptist Church. Retrieved from https://givealittle.co.nz/cause/
watertanks4tanna
68
https://taurangatepaparotary.club/stories/water-storage-for-tanna
69
https://www.fruitofthepacific.org/
70
The Teviot Valley ward encompasses urban and rural communities. The main urban towns are Roxburgh and
Millers Flat. The ward includes the settlements of Ettrick and Lake Roxburgh Village.
71
https://www.centralotagonz.com/community-development/inspiring-communities/cherry-chaos
46
• The perception that RSE workers are taking jobs away from locals who are unemployed or
under-employed, especially young people.
72
While it is acknowledged that RSE workers are
needed for the peak picking period of two-three months, people question why they are
working in NZ for longer periods.
• The disparity in the employment conditions of RSE workers and NZ workers is a cause of
contention i.e. RSE workers are guaranteed 30 hours work per week, are given
accommodation, pastoral care, and transport to and from work. RSE workers also have
consistency of employment that locals do not have.
• When allocating work, RSE employers are seen to prioritise RSE workers over local workers.
For example, RSE workers start work at the beginning of the season before local workers.
Locals are the first to be put off at low points during the season and at the end of the season.
• Some RSE employers are perceived as having more loyalty to their RSE workers than they do
to their local seasonal workers. An informant with a relative who is an orchard worker said
this creates tension between locals and RSE workers which has resulted in fights in the
workplace.
• Housing RSE workers in residential properties is putting pressure on low-cost housing in
Hastings. Workers are living in properties that would otherwise house local families.
In the early years of the RSE scheme, some local Pacific communities were seen as a negative
influence on RSE workers as they encouraged workers to change employers seeking better wages,
move around New Zealand or overstay their visa. This has abated over time as a result of work done
with Pacific communities informing them about RSE visa conditions and the penalties for workers
who remain in New Zealand unlawfully. Some palagi informants expressed concern about local
Pacific churches putting pressure on RSE workers to contribute financially to the church and
expectations that workers will commit considerable time to church activities.
72
While the unemployment rate in Hastings has declined recently (4.8% of the labour force in Hastings was
unemployed in the year to December 2018), Hawke’s Bay has the second highest rate of youth unemployment
in New Zealand. 17.8% of 15 to 24-year-olds were not in employment, education, or training (NEET) in Hawke's
Bay in the year to December 2018 (17.6% in Hastings), compared to 11.9% for all New Zealand.
47
Part 2. Other impacts
While the primary focus of the NZ stream was the impact of RSE on communities, additional data
was gathered about the following topics:
• Economic impacts of RSE for employers.
• Workplace issues for RSE workers.
• RSE worker wellbeing issues.
Economic impacts of RSE for employers
The contribution and economic impacts of
RSE on employers
• Due to their reliability, quality and
consistency, RSE workers have become a
necessity for employers – not just a preferred
source of labour. Access to labour via the RSE
scheme is now considered an essential part
of the business model for large export
producers, and employers are expanding and
making large-scale capital investments on the
assumption that RSE labour will continue to
be available.
• There is evidence of a positive feedback loop
whereby RSE labour facilitates the expansion
of H/V enterprises, and this expansion, in
turn, requires more RSE labour to pick, pack
and prune greater volumes of fruit. This
positive feedback loop fuels greater reliance
on RSE labour, evidenced by industry’s
continual requests to government to raise the
RSE national cap.
Factors that influence the economic impacts of
RSE on employers
• Size and type of the H/V enterprise.
• Number of RSE workers, and the relative size
of the RSE workforce to the H/V enterprise’s
overall seasonal workforce.
• RSE worker return rate.
• Use of joint ventures (workers via joint
ventures provide additional labour and can
extend the periods RSEs have access to
labour).
• Local labour pool – availability and suitability
of local workers.
Findings
Productivity gains
Participation in the RSE scheme provides a number of key benefits for employers: certainty of labour
at peak times during the season; improved quality of pick and stabilisation of production as crops are
picked and packed at the optimum time for export; and overall productivity gains that come from
regular attendance at work and employees’ experience at completing the tasks at hand.
73
According
to an industry informant, “when you talk to RSEs, the thing they talk most about is their RSE workers’
level of productivity. RSEs would need to employ 25 percent more New Zealand workers to achieve this
same level of productivity.”
73
The greater productivity of RSE workers, compared to other types of seasonal workers (e.g. NZ casuals, W&I
clients, backpackers) is reflected in higher wage rates for RSE workers. A recent survey commissioned by NZAPI
(2018) which contains earnings data for key tasks performed in the pipfruit industry (picking, pruning, thinning,
packing and maintenance jobs) shows RSE workers have higher weighted average hourly earnings for picking,
thinning and pruning – all tasks paid on piece rates (per bin filled, or per tree/vine thinned or pruned) –
compared to other worker groups.
48
The annual RSE Employer Survey asks respondents about the impacts of RSE on their business.
74
As
Table 6 shows, over the past six seasons more than 90 percent of RSEs who had workers in the last
12 months agreed that participation in the RSE scheme, or having access to RSE workers (e.g. via
contractors and labour cooperatives) had resulted in a more stable, productive seasonal workforce.
Table 6. Impacts of RSE on the business
All RSEs who had workers in last 12 months75
2012
2014
2015
2016
2017
2018
Base =
137
132
138
92
77
112
%
%
%
%
%
%
Better quality and productive workers
96
97
95
97
100
99
More stable seasonal workforce
94
97
93
97
99
97
Ability to employ more NZers
-
65
66
84
83
78
Source: RSE Employer Survey
RSEs reported an associated benefit of being able to employ more New Zealand workers for
permanent and casual roles, in addition to their RSE workforce. The percentage of respondents that
reported employing more New Zealanders has also increased over time. In 2014, 65 percent of survey
respondents felt participation in the RSE had enabled them to employ more local workers. By 2018
this had increased to 78 percent. RSEs in several regions commented, however, on the difficulties of
finding skilled New Zealanders to fill permanent, technical roles. The limited numbers of school and
tertiary graduates entering the H/V industries is a constraint,
76
as well as the low unemployment rate
in virtually all regions.
RSEs identified a number of factors that can influence the productivity of their RSE workers. These
included:
• Worker return rate - most RSEs want a high return rate because return workers are well trained
and experienced.
• Wage rates - if workers know they are well remunerated for the tasks they perform, they will
work hard.
• Workers’ health - including diet and nutrition. A healthy diet provides workers with more
energy to complete tasks on the orchard or vineyard. Improving workers’ diets to boost their
overall productivity is a key motivator behind the decision of several RSEs to provide daily
meals for their RSE workers.
• Age of workers - younger workers tend to be more difficult to manage outside of work hours
because they do not have the same level of maturity or family responsibilities (e.g. paying for
children’s education) as older workers.
• Pastoral care and workers’ living conditions - “a happy worker is a good worker”.
• Strong team leadership. Team leaders act as role models and encourage others to work hard.
Team leaders play a pivotal role both on and off the orchard/vineyard, supervising workers
while on the job, and supporting workers during their time in New Zealand.
• Suitability of the worker to the job performed.
74
Research New Zealand. Recognised Seasonal Employer Survey (annual survey 2012 - 2018). Wellington:
Research New Zealand.
75
Survey data were not available for 2013.
76
Horticulture New Zealand (2018a)
49
• The work environment at the orchard/vineyard where workers are employed. If workers are
not comfortable in their work environment this can lead to a lack of motivation and poor
performance.
• Seasonal variations can lead to reduced availability of work (and lower than expected
earnings).
Employers tend to see the greatest productivity gains (as measured by workers’ earnings on piece
rates) between seasons one and two. From season two onwards, workers’ earnings tend to increase
up to around season four or five and then plateau.
77
This is not surprising as there are limits to the
number of bins that can be picked or vines pruned within a day. Nevertheless, the quality of the work
performed may continue to increase, as workers become increasingly skilled at performing certain
tasks (e.g. selecting fruit of the optimum colour or size). Returning workers also play important
training and supervisory roles.
Expansion and investment
All RSEs involved in the study, whether direct employers, labour contractors or labour cooperatives,
reported growing business confidence and expansion on the back of RSE, either in terms of area
under planting or increasing production volumes in the packhouse. In Kerikeri, Hastings, Motueka
and Roxburgh business investment and expansion was evident in the multi-million dollar packhouse
facilities being built to support greater production volumes. Some RSEs are also making sizeable
capital investments in RSE worker accommodation as part of their expansion plans; an investment
that assumes continued access to RSE workers year after year.
The RSE Employer Survey asks a series of questions about changes to business practices and business
growth, including investments in new plant and equipment, business expansion, and expansion of
area under cultivation. Between 2012 and 2018, an increasing percentage of respondents indicated
they had invested in new plant and equipment, and expanded their businesses in the past 12 months,
up from around 25 percent in 2012 to around 50 percent in 2018 (Table 7).
Table 7. Impacts of RSE on changes to business practices
RSEs that have made changes in past 12 months
2012
2014
2015
2016
2017
2018
Base =
111
134
139
92
77
112
%
%
%
%
%
%
Investment in new plant and equipment
24
48
47
60
64
51
Expansion of business
21
38
43
59
58
45
Source: RSE Employer Survey
As shown in Table 8, there was also a clear increase in the percentage that had expanded their area
under cultivation, up from 71 percent of respondents in 2012, to 95 percent of respondents in 2018.
When asked whether participation in RSE had been a factor encouraging this expansion, around 80
percent of respondents stated that it was an influencing factor.
77
Bedford, R. & Bedford, C. (2017). RSE earnings and remittance surveys. Samoans, Tongans and ni-Vanuatu
employed in Hawke’s Bay, the Bay of Plenty and Marlborough for 18-22 weeks, 2014/15 and 2016. Report for
the Ministry of Business, Innovation and Employment.
50
Table 8. Impacts of RSE on business growth
All RSEs
2012
2014
2015
2016
2017
2018
Base =
111
134
138
82
64
83
%
%
%
%
%
%
Area under cultivation expanded since 2007
71
73
77
98
92
95
Source: RSE Employer Survey
RSE worker return rates and rotation
For many employers, a high worker return rate is important for a number of reasons: return workers
are trained, skilled and productive; return workers require less supervision; and there’s reduced staff
turnover. Contractors and labour cooperatives, especially, emphasised the importance of a high
return rate because they are contracting their workers out to others, and their clients want the surety
of well-trained workers.
Most of the RSEs estimated they had an RSE worker return rate of somewhere between 80-90
percent. Data from the RSE worker movements database, however, indicate there is more churn in
the RSE workforce than expected. Table 9 shows the percentage of workers, in each region, that were
employed for either one season, or for four seasons, over the four-year period from 2013/14 – 2016/17.
In each region around one third of workers had only been to New Zealand for one season over the
four-year period. No more that 40 percent of Pacific RSE workers had been for all four seasons.
There are some regional variations. Northland, for example, had the highest percentage (40%) of
workers that had only been to New Zealand for one season over the four-year period, and the lowest
percentage (25%) that had been for all four seasons. Central Otago was the opposite, with the lowest
percentage (26%) of workers that had been for one season, and the highest percentage (40%) that
had returned every season for four years. There were also variations between Pacific RSE workers,
and those from Asia. In Northland, Hawke’s Bay and Marlborough more than 60 percent of the Asian
RSE workers had been to New Zealand for all four seasons.
51
Table 9. Percentage of RSE workers by number of seasons, 2013/14-2016/17
Number of seasons
Northland
Bay of Plenty
Hawke's Bay
Tasman
Marlborough
Otago
Kerikeri
Te Puke
Hastings
Motueka
Blenheim
Roxburgh
One season, Pacific
41.4
35.2
32.6
33.2
34.4
25.9
One season, Asia
7.7
27.0
9.1
0.0
13.5
0.0
One season, all sources
40.1
33.5
30.1
33.2
33.9
25.9
Four seasons, Pacific
23.6
26.4
34.9
35.0
29.1
40.0
Four seasons, Asia
69.2
34.2
65.2
0.0
62.3
0.0
Four seasons, all sources
25.3
28.0
38.1
35.0
35.0
40.0
Source: RSE worker movements database
Several informants noted that turnover of their RSE workforce is essentially self-regulating; worker
rotation happens automatically from the island-end. Families decide among themselves who is going
to New Zealand – the decision doesn’t rest solely with the New Zealand employer. One RSE, for
instance, estimated that around 80 percent of their RSE workers are returnees, although not
necessarily all of those that return were working in New Zealand the previous season. Around one
third of the employer’s workforce are women, and some take a break for a year, especially if they
have struggled with work the previous season.
Data from the RSE worker movements database supports this finding. RSE workers are not coming
year after year, some are choosing to take time off. In doing so, there is a risk that the worker may
not get their position back if the job is filled by a new worker who proves to be productive. But
selective use of the RSE scheme is clearly a calculated risk that workers are taking. It is imperative
that workers continue to make these sorts of decisions because the RSE scheme does not provide
any avenue to residence in New Zealand; workers must build their long-term livelihoods in the
islands.
Some RSEs have initiated strategies to encourage worker rotation, often in collaboration with village
leaders in the Pacific communities that they recruit from. These rotation policies are an attempt to
spread opportunities to participate in RSE among families and communities, and in doing so, spread
the potential development benefits. One RSE has workers on a three-year rotation policy, and
workers must have a clear plan for the use of their RSE income over the three-year period. In the
2018/19 season, 40 percent of the employer’s workers were new recruits. From the employer’s
perspective, there are no real problems with a regular intake of new recruits. The RSE workers have
a strong system of group leadership; all new recruits are mentored by an older, return worker who
can assist with worker training and also help the new recruit adjust to life in New Zealand.
Another RSE has implemented a seven-year rotation policy. This employer is of the view that workers
need up to seven years to reach their targets for income generation and to improve livelihoods at
home. To be selected in successive seasons RSE workers must demonstrate a clear plan for
investment of their earnings. After seven years, the RSE worker is allowed to pass the employment
opportunity on to another family member. It could be argued that this approach is further embedding
52
the same families into RSE as the jobs pass from fathers/mothers to sons/daughters, rather than
spreading opportunities more widely.
Joint ventures
Associated with the increasing expansion and production of H/V enterprises, RSEs are making greater
use of joint ventures to supplement their RSE numbers, and to have access to workers for extended
periods. Table 10 shows the number and percentage of RSE workers employed in the six regions for
the year ended 30 June 2017. As can be seen in the Table, there are sizeable numbers of RSE workers
employed in more than one region. This is particularly the case for workers employed in Marlborough
(42%) and the Hawke’s Bay (35%). The country’s largest labour cooperative operates in Marlborough
and Central Otago, and shares a considerable number of their 1,000 RSE workers between the two
regions. There are also several labour contractors based in Blenheim that share workers between
Marlborough and other regions (especially Hawke’s Bay and the Bay of Plenty). In the Tasman
district, only 13 percent of workers are shared with RSEs in other regions. This may be because the
district produces both pipfruit and kiwifruit, and workers can be employed across both crops while
remaining within the region.
Table 10. Number and percentage of RSE workers employed, year ended 30 June 2017
Regions/Towns
Northland
Bay of Plenty
Hawke's Bay
Tasman
Marlborough
Otago
Kerikeri
Te Puke
Hastings
Motueka
Blenheim
Roxburgh
Just in this region
286
1744
2416
1193
1673
575
In this and other regions
58
425
1297
177
1186
299
Total RSE workers
344
2169
3713
1370
2823
804
% just in this region
83.1
80.4
65.1
87.1
58.0
71.5
% in this + other regions
16.9
19.6
34.9
12.9
42.0
28.5
Source: RSE worker movements database
An unanticipated consequence of all core sectors - kiwifruit, grapes, apples as well as avocados and
cherries - expanding at the same time, is the extension and overlap of seasons between different
crops. The lengthening picking, packing and pruning seasons, and ensuing shortfalls of labour evident
in most regions, not only place constant pressure on the RSE cap, but also on employer’s use of joint
ventures. Several employers commented that joint ventures no longer work for them because of the
overlap between crops. This seems to be an issue particularly for RSEs sharing workers between
kiwifruit and grapes. Now that the kiwifruit season is lasting longer, and grape pruning is starting
earlier, challenges arise when both employers on the joint venture want workers at the same time.
This has resulted in some RSEs shifting away from the use of joint ventures and instead seeking larger
increases in their own RSE worker numbers for future seasons.
Due to the certainty of labour provided under RSE and the quality and consistency of the work
performed, RSE workers have become a necessity for employers – not just a preferred, convenient
source of labour. Access to labour via the RSE scheme is now considered an essential part of the
business model for large export producers, and RSE workers form the core of their seasonal
workforce every year. It is this surety of labour that gives H/V enterprises the confidence to expand
and creates a positive feedback loop as increasing areas under planting require more labour to pick,
53
pack and prune greater volumes of fruit. This positive feedback loop fuels greater reliance on RSE
labour, evidenced by industry’s continual requests to government to raise the RSE national cap.
Access to workers via the RSE scheme is vital to the H/V industries’ continued expansion and keeps
both sectors on track to meet Horticulture New Zealand’s target of becoming a $10 billion industry
by 2020.
78
Workplace issues for RSE workers
This section addresses three workplace issues for RSE workers. Most of the findings discussed in this
section are derived from the interviews with NZ informants (rather than RSE team leaders). While we
did not ask questions about the following topics, NZ informants who have direct contact with RSE
workers raised their concerns with us. As these topics will be explored further in the interviews with
RSE workers at home, it is not possible to identify any impacts at this stage.
• Employment conditions
• Discussing and raising issues of concern
• Skills development.
Employment conditions
Informants’ principal concerns relate to the differences in wage rates and employment conditions
among RSE employers. Such differences are particularly pronounced for workers employed by RSE
co-operatives where rates are not standardised across all growers, and for workers employed by
labour contractors where rates can change from grower to grower. A number of informants (including
RSE employers) told us about employers that pay their return workers the minimum wage despite
their skills and years of experience. Increases in the minimum adult hourly wage (an increase of $5.70
in the 11 years 2008 - 2019) are unlikely to match the rising living costs for RSE workers while they are
in New Zealand (discussed further below).
79
Some employers recognise the extra responsibility of
team leaders and drivers by rewarding them with higher wages or have other reward systems in
place, while others have no such system.
80
Additional concerns relate to the complexity and lack of
transparency around how piece rates are calculated, rates that change throughout the season, and
employers that do not confirm what the rate will be. An informant described some Kiwifruit RSE
employers having different pay scales for New Zealand and RSE workers for the same task, for
example, NZ workers are on contract rates for pruning while RSE workers are on an hourly rate.
Mobile phones have made it easier for workers to share and compare information about employment
conditions offered by individual employers.
A second concern is the need for consistent work across the term of the contract. A ni-Vanuatu team
leader described workers as having a single-minded purpose: “Being in New Zealand is all about
78
Plant & Food Research (2016). Fresh facts 2016. Auckland: Plant & Food Research.
79
The minimum adult wage rate before tax in 2008 was $12/hour. From 1 April 2019, it is $17.70/hour before
tax. Retrieved from https://www.employment.govt.nz/hours-and-wages/pay/minimum-wage/minimum-
wage-rates/
80
Some employers reward their team leaders and top workers by paying for all or part of the worker’s share of
the airfare, and in the case of team leaders pays their accommodation for the season.
54
getting the job done, working hard and saving your money”. Insufficient work at the beginning and
end of the season, and downtimes during the season diminish worker earnings and savings.
81
This is
further compounded if the employer is unable to send workers to another employer that can provide
short-term work over the downtime. Despite having no income, workers must meet accommodation
and living costs which increases their debt at the beginning of the season or depletes their savings
during the season. A palagi church pastor described how his church has had to provide food to
workers until they started earning because their employer had brought them to New Zealand before
the season got underway. Another informant described the potential issues that may arise if workers
have no work at the end of the season: “ … it’s during this time that workers start to get into trouble.
They have time on their hands and money to burn.”
A union informant has the following concerns about RSE workers’ employment conditions arising
from its regional staff’s interaction with workers and their employers:
• Greater clarity is needed about what is acceptable worker debt loading. Around three to four
months’ earnings are required for workers to pay off their 50 percent share of the airfare and
pay rent in advance. In the meantime, families at home are not being supported financially.
(This was also raised by other informants).
• The employment contract that workers are given in the Pacific is sometimes different to the
contract they are given in NZ. (This was also raised by other informants).
• Some RSE labour hire contractors are not being transparent about pay rates which means
workers are unclear about what they are meant to be paid. (This was also raised by other
informants).
• Standard pay rates for RSE workers need to be agreed across employers. Workers can be paid
above the rate but not below.
• Sick leave provisions need to be improved. It is widely acknowledged that workers are
susceptible to getting colds or influenza upon their arrival in New Zealand. Sick leave should
be available from day one of their employment.
The union wants a quasi-fair pay agreement (FPA) for RSE employers and workers. The union has
negotiated a collective agreement with an RSE employer in Hawke’s Bay which it says could form the
basis of such an agreement.
Discussing and raising issues of concern
Employers/supervisors hold regular meetings with their RSE team leaders to discuss workers’
progress and to raise any issues of concern for the employer or workers. Team leaders may feel
inhibited about raising issues of concern about work, pastoral care or accommodation with their
employer/supervisor. Similarly, workers may be reluctant to raise issues with their team leader. The
81
RSE employers are required to pay RSE workers a minimum of 30 hours per week. Some RSE employers
apply this as 30 hours per week averaged across the entire contract i.e. there may be some weeks with no
work, and other weeks with 60 hours work.
55
interviews revealed a range of potential inhibitors for team leaders and workers to raise issues of
concern (Table 11).
Table 11. Potential inhibitors to RSE workers raising issues of concern
Inhibiting factor
Description
Examples provided by informants
Customary
practices towards
authority
Figures of authority, such as employers, are to
be respected. Raising an issue of concern is to
be critical of the employer which is a sign of
disrespect.
Shyness towards palagi (ni-Vanuatu
especially).
An accommodation provider related an incident
where an accommodation block didn’t have any
hot water. It was a couple of days before the
workers told him about the problem because
they didn’t want to cause him more work.
Workers’ hierarchical/leadership structure may
be used to influence workers.
A Liaison Officer said some workers may be
reluctant to talk to their Liaison Officer about an
issue of concern for fear of retribution from their
team leader. Internal group dynamics can have a
strong influence on whether workers feel able to
raise concerns, especially worker groups that
have been selected for RSE on the basis of family
connections.
An informant told about workers being
interested in joining a union but (according to the
informant) their team leader had been primed by
the employer and talked them out of doing so.
Unequal power
dynamics
between RSE
employer and
workers
Informants describe RSE workers as being
reluctant to raise issues of concern for fear of
being thought of as “trouble-makers” which
may result in them being sent home before the
end of their contract, not being re-employed
the following season, and potentially
disadvantaging others from their community
that may not be selected. (It was interesting to
note the number of informants who used the
word “trouble-maker”).
An informant described a group of women
workers who had been working seven days a
week for three to four weeks over the harvest
time. They had already been in NZ for six months
so by this time they were very tired. The workers
didn’t feel they could tell the employer they
needed a day off to recover for fear they would
be seen as troublemakers.
Another informant said that RSE workers
attending their church have been told that their
jobs depend on them not causing any trouble.
A further example concerns a burglary of
workers’ accommodation. The team leader did
not want the burglary to be reported to the
police to avoid attention on their employer or on
them. The team leader was very concerned that
this would be tantamount to causing trouble. For
the same reason, the team leader also declined
the church’s offer to fundraise to replace the
stolen goods.
Culturally
appropriate ways
of resolving
issues
Each Pacific culture has ways of dealing with
issues that reflect its values and customary
practices.
A ni-Vanuatu team leader explained how he
needs to use culturally appropriate ways to
resolve issues, as follows. If a problem arises, he
will try to sort it out within the group first, using
the “Vanuatu way” of solving problems which is
to talk everything through. If the issue can’t be
resolved within the group, then he will take the
matter to the employer. He described the NZ
way of handling problems as being more formal,
for example, a written warning from the
employer. The team leader said he has had to
learn to navigate between two cultures – NZ and
Vanuatu – and know when it’s best to use the
Vanuatu way or the NZ way to handle a problem.
RSE team leader
allegiance to the
employer
Some long-standing RSE team leaders are seen
by informants as being too closely aligned with
their employer and are deemed to be less likely
to raise workers’ concerns with the employer.
An RSE team leader was described as being “the
boss’s boy”.
56
Customary
gender dynamics
Customary roles for women may result in them
not feeling able or confident about raising an
issue of concern with a male supervisor or
Liaison Officer, especially if the issue is of a
sensitive nature.
An example was cited of women workers being
too embarrassed to ask a male supervisor to
leave the field go to the toilet which was some
distance from where they were working.
Maintaining the
good reputation
of their country
as RSE workers
Prior to workers leaving for NZ, Pacific officials
stress the importance for workers to maintain
the good reputation of RSE workers from their
country, so as not to jeopardise opportunities
for new workers in the future.
A group of (name of Pacific State) workers had
some concerns about their wage rates but didn’t
raise them because the employer had said he
was very happy with his (name of Pacific State)
workers and planned to recruit more. The
workers didn’t want to risk opportunities for new
recruits, so kept quiet.
We were interested to find out what formal and informal channels workers may use to seek advice
about issues of concern, other than their RSE team leader. Workers confide in people with whom they
have built a relationship and who they trust, such as Vakameasina tutors, pastoral
care/accommodation providers, and church leaders. In addition to the groups listed in Table 12, we
assume workers may also seek advice from New Zealand-based family members and the Labour
Sending Unit (LSU) at home. This topic will be explored further in the interviews with RSE workers
and LSU officials in the Pacific stream.
Table 12. Formal and informal channels for RSE workers to raise issues of concern
Informant group
Description
Positives/negatives
Pacific Liaison
Officers
The role of the Liaison Officers, funded by
Pacific governments, is to promote and place
workers from their country with RSE
employers, and to assist with effective
communication between RSE workers, their
employers, and accommodation/pastoral care
providers, as required. There are currently
four Liaison Officers: Tonga (2 - one of whom
is part funded by an RSE), Kiribati (1), Samoa
(1). The High Commissions of the Solomon
Islands, Vanuatu, Fiji and Papua New Guinea
handle liaison work for their respective RSE
workers.
Three of the Liaison Officers are employed
full-time in other jobs, which limits their
ability to visit workers.
The Liaison Officers for Kiribati, Samoa and
the Solomon Islands are women, while the
Liaison Officers for Tonga and Vanuatu are
male. Women workers may be reluctant to
raise issues with a male Liaison Officer.
Vakameasina tutors
Some Vakameasina tutors described
instances of workers seeking their advice
about a work-related issue or pastoral
care/accommodation matter. The informants
are aware that such advice-giving is outside of
their contracted role:
“We have to be very careful. We’re walking a
fine line”.
“Sometimes you feel like the meat in the
sandwich”.
There is a conflict of interest for tutors to
provide workers with advice as the
Vakameasina programme relies on RSE
employers giving permission for their
workers to access Vakameasina training.
Pastoral care
workers /
accommodation
providers
Some (but not all) pastoral care workers we
interviewed described their role as looking
out for the interests of the workers, which
may include (as required) supporting workers
with employment issues that might come up
and advocating for them if a case arose
involving an employment dispute.
There is a potential conflict of interest as
pastoral care workers and accommodation
providers may be employed by the RSE
employer.
Local churches
Churches are an independent party in the
local community. According to one
informant: “The support of local churches is
good - they are nosey on behalf of the
workers”.
Church leaders are likely to be trusted by RSE
workers. They can advise workers about the
best channels in the local community for
workers to get the advice and support they
need.
57
The church can only act on workers’ behalf if
they have workers’ permission to do so.
Community Law
Centres
Two centres reported they have been visited
by RSE workers.
Centre 1: A handful of RSE workers have
sought advice from this centre. The following
is a legal adviser’s account of a worker’s
employment situation that occurred in 2018:
A female RSE worker sought advice from the
office as she was being disciplined by her RSE
employer for buying alcohol, even though she
didn’t drink and the alcohol was for other
workers. The worker said she had been forced
by other workers to buy and pay for alcohol
for a celebration – the way she described the
situation it appeared to be a cultural norm for
her to buy the alcohol for the celebration. The
legal adviser told her she had sufficient
grounds to take a personal grievance.
However, the worker decided not to proceed
with it because it would make waves for the
other RSE workers involved. She was sent
home by the employer.
Centre 2: In the early years of the scheme,
many RSE workers visited the office but there
have been none in recent years. The office’s
contacts with local Pacific residents indicate
that some RSE workers are continuing to
have employment issues. The office is of the
view that workers have been told by
“someone” not to visit the office.
Community Law Centres are located in main
centres (Tauranga, Hastings, Blenheim,
Nelson) which may be a considerable
distance from where workers are working and
living. The offices are only open during office
hours.
RSE workers are not likely to be aware of the
Centre’s services.
Workers who do not speak English would
require translation assistance.
Unions
The Amalgamated Workers’ Union will assist
RSE workers if requested. If RSE workers
want to join the union, they pay half of the
usual union membership fee.
Employers may not want RSE workers to be
union members.
RSE workers may be reluctant to join the
union for fear of being labelled a “trouble-
maker” and not being re-employed the
following season.
Two informants shared information about RSE employers scolding workers for discussing an issue of
concern with a third party. While we have no evidence of the frequency of such behaviour by
employers, these examples illustrate the vulnerability of workers arising from the unequal power
dynamics between workers and their employer. In the first case (which occurred in 2012), workers
complained to their palagi church pastor about their crowded living conditions (workers were
sleeping in the hall, and the kitchen and bathroom facilities were inadequate for the number of
residents). After viewing the property which the pastor describes as the worst RSE accommodation
he has seen, he contacted the Labour Inspectorate. Following the Labour Inspector’s visit, the RSE
employer called the workers in and wanted to know who had complained and to whom. A second,
more recent example was when a group of workers contacted one of the Pacific Liaison Officers
about a pay issue. The workers were subsequently told by their employer not to contact the Liaison
Officer again.
58
We contacted the Human Rights Commission to find out whether it has received any complaints
relating to RSE worker welfare.
82
Since 2010, five people have contacted the Commission with
concerns about RSE workers, as follows.
• 2010: A sender alleged an orchardist was attempting to dissuade a large group of the sender’s
work colleagues (RSE workers) from moving to accommodation that was cheaper than the
small room they were renting from the orchardist.
• 2014: A caller was considering organising a community meeting to raise concerns about
employers mistreating seasonal horticultural workers (RSE workers and New Zealand
employees). The caller was also concerned that the pay rates for seasonal work are artificially
low because they are limited by the minimum wage.
• 2018: Two separate callers enquired about the human rights and welfare of RSE workers.
• 2019: A sender made an Official Information request about complaints relating to race,
colour, ethnicity or national origins within a specific region in New Zealand. The sender said
a large number of workers on the RSE scheme and other workers from overseas were working
long hours for New Zealand employers.
Skills development
One of the research questions in the Pacific stream is: To what extent, and in what ways, are skills gained through workers’
employment and living in New Zealand contributing to economic and social wellbeing of workers and their families back in the
village? To help us build up background information about Vakameasina, we interviewed Vakameasina tutors in five of the six
communities, as well as asking RSE team leaders who had attended a Vakameasina course about their experience. The
research question will be investigated in interviews with workers and village leaders in the Pacific stream.
Vakameasina aims to maximise the development benefits of the RSE policy by providing RSE workers
access to skills training during their time in New Zealand that will improve their lives and that of their
families at home.
83
The programme is funded by MFAT from the NZ Aid budget and is delivered to
approximately 1,200 Pacific workers each year by Fruition Horticulture.
84
85
In addition to covering
the core subject areas of English language, financial literacy, and drivers’ licences, MFAT’s priority
areas - nutrition, sexual health, gender equality, and domestic violence – are integrated into
Vakameasina courses.
The programme is delivered in three parts: basic/foundation courses, leadership courses, advanced
courses. Each course consists of 20 contact hours, which translates into 16 teaching contact hours.
86
82
The Commission does not have the power to investigate complaints. Instead, the Commission provides a
confidential dispute resolution service for complaints alleging unlawful discrimination under the Human Rights
Act 1993 which may include mediation. A party’s participation in the Commission’s process is voluntary. The
Human Rights Review Tribunal, an independent entity from the Commission, can make decisions similar to a
court should a complaint not be resolved in the Commission’s process.
83
Activity Design document: Vakameasina (undated). Ministry of Foreign Affairs and Trade.
84
Ministry of Foreign Affairs and Trade Annual Report 2017-2018. Retrieved from
https://www.mfat.govt.nz/assets/MFAT-Corporate-publications/MFAT-annual-report-2018/MFAT-Annual-
Report-2017-18.pdf
85
https://www.fruition.net.nz/2016/06/vakameasina-the-skills-and-knowledge-partnership/
86
The first two-hour session is used for introductions and inductions, and the last two-hour session for
graduation.
59
The courses are run in the evenings and Sunday afternoons, either at the workers’ accommodation
or at a local education/training facility. Food is always provided. Topics for non-core courses are
selected by workers and/or their employers. A wide range of courses have been delivered such as
computing, cooking skills, budgeting and saving, small business development, early childhood,
building skills, solar energy, small engine maintenance, building skills, chainsaw maintenance, first
aid, NZ Road Code (on-line).
Vakameasina uses Pathways Ararua, an online learning platform designed to assist New Zealand
adults to improve literacy and numeracy skills.
87
It relies on workers having access to computers
which is not the case for courses run in Central Otago which are spread around Alexandra, Cromwell,
Roxburgh and Ettrick. It is intended that workers will continue their learning using the Pathways
Ararua online platform when they return home. Some informants questioned the feasibility of this
idea, given internet access is variable across Pacific countries and internet data is expensive. The
platform is designed for use on a computer, which many households may not have. Workers usually
have a mobile phone, but Pathways Ararua is not designed for use on a phone.
Tutors describe Vakameasina as a three-way partnership between the RSE employer (or HR manager
in the case of larger employers), their RSE workers and Vakameasina tutors. Tutors rely on RSE
employers allowing their workers to participate in Vakameasina. While some employers are active
supporters of learning opportunities for their workers, others are described as being hard to engage.
Worker fatigue at the end of the day/a six day working week may act as a barrier to workers’
participation in Vakameasina. Two informants said the programme’s effectiveness would be
enhanced if the tutors include Pacific peoples.
Worker wellbeing issues
This section addresses four wellbeing issues for RSE workers while they are in New Zealand:
• Cost of living
• Nutrition
• Health
• Leisure and engagement with local community.
The section ends with findings about women’s participation in the scheme. As these four topics will
be explored further in the Pacific stream, it is not possible to identify any impacts at this stage.
Cost of living
The following information about the cost of living in New Zealand was gathered from interviews with 13 RSE team leaders.
Additional information will be collected from RSE workers during the Pacific stream as part of a larger discussion about the
cost for workers to participate in the scheme.
A consistent theme from the interviews with team leaders is that workers’ living costs in New Zealand
are rising more rapidly than their earnings (as is the case for many wage earners in New Zealand). As
noted above, the minimum adult hourly wage has only increased by $5.70 since 2008. Workers are at
a loss to understand why their accommodation costs increase each year, despite there being no
87
https://pathwaysawarua.com/
60
improvements to their living quarters or additional services provided. For example, the weekly rent
of a group of workers increased from $145 in 2017, to $165 in 2018. The workers expected that the
accommodation’s poor mattresses would be upgraded when the rent increased but they were not.
Another team leader said when he started as an RSE worker in 2008 his rent was $70. Now he’s paying
$120 a week. Table 13 summarises the five main items that make up workers’ living costs in New
Zealand.
Table 13. Living costs in New Zealand
Accommodation
costs
It is not possible to compare accommodation costs across employers/accommodation providers
due to regional variability in housing costs. In addition, the cost of accommodation may include
one or more of the following: power, Sky TV, Wi-Fi, a weekly room clean, a weekly sheet change,
meals, soap, shampoo, toilet paper.
Transport costs
There are significant variations in transport costs for workers, ranging from less than $10 per
week (excluding petrol) to more than $40 per week per worker.
Transport costs are higher for workers living in remoter locations for travel to the local town for
shopping or to attend church. For example, workers living in Roxburgh pay $80 each time they
want to use a (10 seater) van to travel to Alexandra to remit money via Western Union and to
shop at the Alexandra New World supermarket (which is cheaper, and has a large range of stock,
than their local supermarket).
Cost of remitting
earnings
Other than workers whose family live in a main centre which has banks and money machines,
the majority of workers use a money transfer operator like Western Union to remit money
home. Transfer fees vary depending on the amount of money being sent and the destination
country, ranging from $10 - $20 per transfer.
The nearest Western Union facility for workers living in Ettrick and Roxburgh is located in
Alexandra (involving a return trip of 65 kilometres).88
Cost of food
The cost of food is higher for people living in remoter locations such as those in Central Otago.
Medical insurance
The weekly premium is up to $17 depending on the medical insurer and level of cover.
A Pacific pastoral care provider calculates that at least 20 hours of work is required each week over a
six-month period to cover all financial costs of participating in the scheme for that duration. This
equates to between a third and a half of the actual money workers might earn. This calculation is
consistent with the findings of the Remittance Surveys of RSE workers from Tonga, Samoa and
Vanuatu employed in Hawke’s Bay, Bay of Plenty and Marlborough for 21-22 weeks in 2014/15 and
2016. The surveys found workers paid an average of $6,000 in income tax and standard deductions
(for accommodation, transport and medical insurance) over the 21-22 week period, equating to
between 30-40 percent of the workers’ gross incomes.
89
Nutrition
Other than asking RSE team leaders about the amount of their weekly spend on food, we did not
seek any information from other informants about workers’ diet. Rather, other informants raised
their concerns about worker nutrition during the interview.
90
88
The Western Union facility in Cromwell was started up by the wife of a local church pastor. It only operates
on Thursday nights.
89
Bedford, R. & Bedford, C. (2017).
90
Informants with concerns about worker nutrition included RSE employers, pastoral care providers, medical
practitioners, and Vakameasina tutors.
61
RSE workers appear to be spending minimal amounts on food (by New Zealand standards) as
illustrated by the following weekly spend of some team leaders:
91
• ni-Vanuatu female, Blenheim: $20 per week; shops and cooks with her two roommates.
• ni-Vanuatu male, Blenheim: $30 per week; shops and cooks with three others living in his
unit.
• Samoan male, Hastings: $30 per week; shops and cooks in a group of 10.
• Samoan male, Hastings: a committee of workers collects $10 from each of the 45 workers
living at the accommodation and does the shopping. Another committee does the cooking.
When the $10 is spent (it lasts 4-5 days), another $10 is collected.
• ni-Vanuatu male, Roxburgh: $35-$40 per week; shops and cooks with three other workers.
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Informants are concerned that workers are buying low cost food which they perceive will give them
energy such as white bread, instant noodles, drinks with high sugar content (e.g. energy drinks), and
cheap meat such as chicken carcasses, chicken bottoms and mutton flaps (Samoan workers).
93
Other
foods purchased include rice, tinned fish, chips and biscuits. Much of this food has low nutritional
value.
Other factors are reported as contributing to poor nutrition. Workers on piece rates may not want to
stop for a lunch break. Workers are tired when they arrive home after a long day so want a quick meal
requiring minimal effort. Many Samoan and other worker groups achieve economies of scale from
bulk buying and efficiencies from cooking in groups. This is not the case for ni-Vanuatu workers who
pastoral care workers describe as being more individualistic in how they purchase and prepare meals.
Informants described workers as eating few vegetables due to their cost and workers’ unfamiliarity
with local vegetables. Taro, one of their preferred vegetables is expensive (and not always available).
Despite some employers planting vegetable gardens for workers, the gardens may become
neglected as workers are too tired at the end of a busy week to tend them. Also, gardening is
regarded as women’s work in some Pacific states.
Recognising the impact of poor nutrition on worker health, energy levels and productivity, some RSE
employers are providing workers with an evening meal usually on weekdays (costing $8-$10 per
night). Other employers are providing up to three meals a day. This arrangement however may not
be straightforward. Some RSE workers have wanted to opt-out of catered meals, believing the cost
is too high. Consequently, employers have had to make the meal a condition of workers’
employment. Catering for workers from multiple Pacific countries can be problematic as workers like
food cooked the way they are accustomed.
91
Some pastoral care workers may organise bulk purchases of meat for workers, the cost of which may be
additional to the weekly costs listed above.
92
The researchers observed that the price of food is higher in Central Otago than in other locations.
93
We talked to the managers of the supermarkets and shops which workers use to find out about the main
foods they purchase.
62
Boils and constipation are among the conditions that workers present with at the G.P., both of which
can be triggered by a diet of simple carbohydrates.
94
Some medical professionals expressed concern
about the potential longer-term health consequences of a high sugar diet, such as diabetes and
cardiovascular risk. A health centre informant said her practice has noticed that workers who have
been coming for a greater number of seasons have decreasing health: “We are getting to a crossroads
with the health of return workers”. Another informant has observed return women workers in the
packhouse increasing in weight each season, which she attributes to them eating more to overcome
their tiredness: “We are getting to the stage where return workers are at risk of developing diabetes,
high blood pressure and gout as a result of the diet they are eating in NZ. The workers don’t make
the connection between a poor diet and these medical conditions. If they develop diabetes, they’re
not going to be able to get treatment back home – there is one dialysis machine in Samoa”.
Health
The most common medical issues of RSE workers reported by medical professionals are boils, other
skin infections, sprains and strains, back pain and repetitive strain injury. Outbreaks of colds often
occur shortly after workers arrive in New Zealand as their immune systems adjust to the colder
weather and a different living environment. Each year a small, but growing number of workers are
diagnosed with medical conditions of a more serious nature, such as cancers, stroke and
cardiovascular conditions. Sadly, each season there are a few worker deaths due to undiagnosed
cardiac conditions and late-diagnosed cancers. RSE health insurance providers also monitor a wide
range of pre-existing conditions including hypertension, gout, diabetes, gastrointestinal problems,
renal stones, arthritis and asthma.
In the early years of the RSE scheme, workers made little use of local medical services, preferring
instead to seek medical treatment at home. Over successive seasons this approach has changed.
There is now a “collective knowledge” among RSE workers (returnees as well as new recruits) about
the benefits of accessing medical treatment in New Zealand. A positive or reinforcing feedback loop
is emerging where workers have accessed local health services (doctors and dentists) and been
successfully treated, and this encourages other RSE workers to seek treatment if needed.
There may, however, be barriers to workers seeking medical treatment. Workers may not want to
take time off work to visit the G.P. Two medical centres said they see more RSE workers on rainy days
when they cannot work. Medical practitioners also describe workers delaying their visit until their
medical condition (e.g. boils) has deteriorated. Such delays complicate and lengthen treatment.
The lack of dentists in Pacific states means that many RSE workers arrive in New Zealand with
significant dental issues. An RSE employer told us that dental problems are the main health-related
issue for its workers and has organised permanent appointments each week with a local dentist to
treat workers. Accessing dental treatment for RSE workers can be problematic in smaller towns that
may lack a dentist or have a limited number of dentists for the size of the resident population. The
costs of dental treatment in New Zealand may also be prohibitive for workers.
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Poor nutrition (simple carbohydrates and foods that are high in sugars) decreases the body’s immunity to
developing boils.
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In response to the dental health issues of ni-Vanuatu RSE workers in the Bay of Plenty, Fruit of the
Pacific a non-profit organisation based in Te Puke is operating an Oral Health Awareness programme
in Vanuatu. The programme, sponsored by Colgate New Zealand, educates children how to clean
their teeth and prevent tooth decay. To-date the programme has reached over 15,000 children and
adults.
95
Worker mental health was not referred to by medical professionals but was raised by other
informants. Workers’ separation from their families for lengthy periods of time tends to be a taken
for granted aspect of participating in the scheme, despite it being the trigger for depression-related
conditions. Events such as the serious illness of a child or death of an extended family member can
be very distressing for workers whose visas generally do not allow for short visits home to attend to
family matters. A New Zealand-based Pacific informant noted that the Tongan language does not
have a word for depression.
Leisure and engagement with local community
The main leisure activities reported by team leaders are attending local churches, shopping for goods
to take home and playing sport - soccer and petanque in the case of ni-Vanuatu workers, and rugby
and volleyball in the case of Samoan, Tongan and Fijian workers. Ni-Vanuatu workers are more likely
to play soccer among themselves, while some rugby playing workers may play for local teams. Some
accommodation sites have soccer fields, petanque and volleyball courts.
The drinking of kava is another leisure activity which (as noted in the policing section) is permitted by
some RSE employers, but not those in Marlborough. Some employers allow the drinking of kava for
special occasions or if workers are not working the next day, providing its use is controlled. We heard
about an accommodation site with a kava room which is used by the workers as a group, and when
workers have visitors. According to a New Zealand-based Tongan informant: “Drinking kava is a
social thing in Tonga. The more relaxed and happy workers are, the better they will work. If you put
pressure on workers and squeeze them, that’s when there are poor outcomes.”
The team leaders we spoke with did not appear to have any expectations that they would be active
members of their local community. They said they are in New Zealand to work and earn money, not
to socialise with local residents. Informants described ni-Vanuatu workers as being more “self-
contained” compared to workers from other Pacific States.
Barriers to workers interfacing with local community are as follows.
• Workers’ accommodation may be located on orchards or other rural properties. Workers may
only come to town for shopping and to attend church. Some groups of workers run their own
church services on-site, further limiting contact with the local community.
• Much of the newer, purpose-built accommodation has its own volleyball court and
soccer/rugby field so workers remain on-site during non-work hours.
• Workers have little spare time at the height of the season when the employer may require
them to work seven-day weeks.
95
Refer https://www.fruitofthepacific.org/
64
Women RSE workers
A Strategy is currently being developed by MBIE and MFAT to “guide efforts to increase the number of opportunities for the
temporary employment of Pacific Islands women in New Zealand”. The following findings (together with findings from the
Pacific stream) will inform this work.
In 2017/18 women made up 10.4 percent (1,007) of total PIC worker arrivals (9,673). Over the four
years 2014/15 - 2017/18, the number of PIC women arriving on RSE visas has stayed roughly the same
at approximately 1,000 women, but as a percentage the participation rate has dropped as the total
number of PIC RSE arrivals has gone up. In 2014/15, the female participation rate was 13.5 percent;
12.5 percent in 2015/16; 11.3 percent in 2016/17; and 10.4 percent in 2017/18. Within the overall female
participation rate, there are variations by PIC. Kiribati (38.5%). Papua New Guinea (29.8%) and Nauru
(28.6%) have the highest female participate rates (as a percentage of the total number of RSE arrivals
from each country), while Samoa (3.5%) has the lowest. In terms of absolute numbers, the largest
numbers are recruited from Vanuatu (a total of 383 in 2017/18).
RSEs employ women workers for less physically demanding tasks such as packhouse work, picking
blueberries, picking and thinning citrus, and kiwifruit thinning. A female informant noted that women
are physically capable of doing more demanding tasks, such as winter pruning of kiwifruit (a task
which she performs). Over the years the Pacifica Labour and Skills Unit in MBIE has actively
encouraged employers with suitable work to recruit women from Kiribati and Tuvalu especially, given
the small numbers that were being recruited from these countries. In 2017/18 55 of the 134 RSEs were
employing women with three having over 100 women in their RSE workforce. However, women’s
participation in the RSE scheme is limited in some regions (e.g. Hawke’s Bay) because of restrictions
on their employment in the packhouse.
Accommodation and pastoral care providers describe women RSE workers as being easier to look
after than male workers. Unlike some of their male counterparts, women are unlikely to drink and
don’t bring visitors of the opposite sex back to their accommodation. Women workers are also
described as being more proactive about getting to church and organising religious activities at their
accommodation. However, when women workers do have concerns or issues, they are likely to be
more complicated than those experienced by males. For example, an RSE employer said that while
the rate of worker pregnancies has declined over the years (which he attributes to being proactive
about sex education and supplying free condoms), three of his company’s workers became pregnant
in 2018. He said that the women usually keep their babies which can cause problems at home if they
are already married. Some of his women workers have been disowned by their family when they
returned home with their baby. Further, a Liaison Officer describes the problems experienced by
women workers as often being hidden – women may be more reluctant to share concerns such as
separation from their spouse and children, or problems in their extended family at home.
The difficulty for women ni-Vanuatu workers to exercise independence while they are in New
Zealand has been observed by informants who have contact with ni-Vanuatu workers. Customary
gender roles are transferred to the New Zealand context. One informant summarised the gender
dynamic thus: “Ni-Vanuatu men are very hard on the women.” Other informants told of male team
leaders and workers speaking on women workers’ behalf or directing women how to spend their
earnings. Ni-Vanuatu women are described as faring better when they are living and working away
from the men.
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While endorsing the equity concept underpinning the Strategy’s aim to increase paid work
opportunities for women, three New Zealand-based Pacific informants expressed caution about the
disruption that women’s participation in RSE may cause to children’s wellbeing, and family and
village life. To this end, the Government of Tonga has a policy that strongly discourages women with
children under five years from participating in the scheme. The impacts of women’s participation in
RSE will be examined in more detail in the Pacific stream.
For those women who want an opportunity to become an RSE worker, the following New Zealand-
based factors may act as a barrier to their employment.
• There have been changes in RSE employment practices arising from the previous National
Government’s directive that Pacific RSE workers should have work available for the entire
seven-month period of the Limited Purpose Visa (or nine months for workers from Kiribati
and Tuvalu). This has had two consequences - some employers, who had women working in
the packhouse on a three-four month contract, now favour men for packhouse work because
they can stay on after the packing season and do winter pruning. It has also led to employers
making more use of joint venture arrangements with other RSEs. These developments are
reducing opportunities for women workers who may only want to work in NZ for three-four
months to minimise their absence from children and home.
• In general, RSE employers prefer male workers for the more physically demanding tasks,
such as picking apples and pruning kiwifruit.
• From an accommodation management and pastoral care point of view, it is easier for
employers to employ either women or male workers, rather than a combination of genders.
• There are expectations in some Pacific cultures about work that is suitable for women. For
example, Tongan women are not expected to do hard, physical work in the garden or
plantation (unlike women in Melanesia).
The issues discussed in this section will be examined further in the Pacific stream.
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Part 3. Implications of key findings
This section begins with a summary of the key impacts (community-related and others) to which the
RSE scheme is contributing, and then discusses some of these impacts. It should be noted that the
summary is a work in progress – findings from the NZ stream about RSE workers (e.g. cost of living
in NZ, how workers raise and resolve issues of concern, women’s participation in RSE) will be
examined further in the Pacific stream. In addition, new impacts will be identified in the Pacific
stream.
Summary of key impacts to which the RSE scheme is contributing
As noted above, this study aims to establish (or discount) the contribution of the RSE scheme to
observed impacts (rather than attempting to attribute RSE to observed impacts) using an analytical
approach called contribution analysis. The literature on contribution analysis suggests identifying the
strength or magnitude of contribution e.g. great, substantial, some, little, none. Our initial analysis
of the data revealed that we needed to adopt a more descriptive, systems-based approach to making
claims about contribution. This is because the impacts of RSE on, and for, individual communities are
influenced by a range of contextual and influencing factors as identified in the impact tables at the
beginning of the sections in Parts A and B. Therefore, when we make a claim about the contribution
of RSE to an observed impact, we need to specify the nature of the scheme’s contribution. Using a
system-lens, we have developed a typology that characterises seven types of contribution such as:
direct contribution, an enabling contribution, an inhibiting contribution (Appendix A provides the full
typology). Table 14 provides a high-level summary of the impacts that RSE is contributing to (as
identified from the NZ stream findings) and identifies how the scheme is contributing to each impact.
Positive impacts are shaded in green and negative impacts in orange. Impacts which could be positive
or negative (depending on perspective) are unshaded.
Table 14. Summary of key impacts identified from NZ stream
How RSE is contributing
to the impact
Impact
Impact
recipient(s)
Direct contribution
Definition: RSE is making an
unequivocal contribution to an
observed impact (positive or
negative).
RSE employers are making significant productivity
gains because of the reliability, quality and
consistency of RSE labour.
RSE employers.
The certainty of labour provided by the RSE scheme
gives H/V enterprises the confidence to invest and
expand.
RSE employers.
Although RSE workers are a relatively small
component of the total seasonal workforce, they have
become a necessity for RSE employers, not just a
preferred source of labour.
H/V industries.
RSE employers.
Expansion of RSE enterprises is generating more
employment opportunities for NZ workers, in
permanent and seasonal jobs, as H/V enterprises shift
towards year-round production, crop varieties
change, and greater volumes are produced.
NZ workers.
Community.
Increased numbers of RSE workers in the community
provide local criminals with a new target and
opportunities for illegal behaviour.
Local criminals.
Police.
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Enabling contribution
Definition: RSE (by itself, or in
conjunction with something else)
is enabling a positive impact.
RSE employer expansion generates multiplier effects
as businesses that directly support H/V enterprises,
such as land and land services, transport and
distribution, agricultural services and equipment,
construction, and accommodation services also
expand.
Local businesses
linked to H/V
industry.
Enabled contribution
Definition: Something else has to
be in place or happening (e.g. a
contextual factor) in order for RSE
to have a positive impact.
Strong consumer demand and high prices for NZ
exports make it economically profitable for H/V
businesses to operate and expand. Without demand
from international markets NZ’s H/V industries would
be smaller - they would be focused on the domestic
market and they would not have the same demand
for RSE labour.
RSE employers.
H/V industries.
An inhibiting
contribution/effect
Definition: RSE inhibits or gets in
the way of something else
Demand for RSE accommodation is leading to fewer
low-cost rental houses being available for permanent
residents. In some communities the scheme is placing
pressure on local housing markets which may already
have a shortage of low-cost rental housing.
Residents
seeking low-cost
rental housing.
RSE employers in expansion mode require more RSE
workers creating more demand for worker
accommodation which may in turn put more pressure
on the low-cost housing market.
Local low-cost
housing markets
A tipping point
contribution
Definition: A certain
amount/quantity of something
creates a tipping point for
something else to happen
Continued expansion of the H/V industries leads to
increasing demands for labour and official labour
shortages in several regions. These labour shortages
are of a great enough magnitude and provide enough
‘evidence’ to support industry cases to Government to
increase the RSE cap.
RSE employers.
H/V industries
A positive or reinforcing
feedback loop contribution
Definition: Something facilitates
more of the same
Expansion by RSE employers fuels greater reliance on
RSE labour.
RSE employers.
A negative or balancing
feedback loop contribution
Definition: A regulating
mechanism that results in a
reduction of a particular action.
This reduction creates stability
within the system.
The lack of seasonal worker accommodation in some
communities (e.g. Te Puke) acts as a stabilising
mechanism, limiting the pace of industry growth and
associated increases in RSE numbers.
RSE employers.
H/V industries.
The pastoral care provisions in the RSE scheme help
ensure workers adjust to working and living in New
Zealand without requiring intervention from the
police. These pastoral care provisions have an
inhibiting effect, limiting some activities (e.g. alcohol
consumption) that could lead to problems. As a
result, RSE workers place minimal pressure on local
police time and resources.
RSE workers.
Police.
Confirming community capacity to cater for RSE workers
The summaries of the six communities in Appendix D highlight the differences among them that are
more complex than those that are immediately obvious such as population size, and industry-related
differences, such as the timing and nature of seasonal labour demand. The impact tables at the
beginning of the sections in Parts 1 and 2 list the factors that influence the nature and extent of
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impact of the RSE scheme on and for a local community. This is an important finding of the study,
namely, that the impacts of RSE on, and for, individual New Zealand communities are influenced by
a range of contextual factors and are therefore variable.
This finding has implications for the H/V industries’ expectations about future increases in the RSE
worker cap. While higher RSE worker numbers will provide economic benefits to communities via the
increased production of local H/V enterprises and job creation for New Zealand workers, ongoing
increases in worker numbers are not feasible unless the community’s capacity to cater for them is
confirmed. As the findings have shown, important aspects of community capacity are
accommodation (discussed further below), policing and health services. This balancing of RSE worker
numbers with community capacity assumes greater importance in smaller communities such as
Roxburgh and Renwick (near Blenheim) where there is a risk of permanent residents feeling “crowded
out” by workers if RSE numbers increase. Communities with large influxes of seasonal workers every
year, such as Te Puke, Hastings and Blenheim, illustrate what can happen when the balance or
equilibrium is exceeded – tensions may surface within local communities where residents are
competing with RSE workers for finite resources, such as low-cost housing and local medical services.
Implications of future industry expansion for RSE accommodation
Most of the six communities we visited are close to, or at capacity in their ability to accommodate
RSE workers in existing housing stock. As noted above, Government has urged RSE employers to
ensure that RSE accommodation does not take residential properties away from permanent
residents. Planning for expansion by RSE employers individually, and industry as a whole, must take
account of the need for additional RSE accommodation. Explicit connections need to be made
between planning for expansion and accommodation planning. Making such connections is
problematic in the viticulture industry where there is fragmentation of the key drivers of production:
investors, growers and labour hire contractors. Horticulture RSE employers that have a policy of not
owning worker accommodation but rely instead on accommodation providers will need to consider
whether this business model will be able to cater for ongoing increases in worker numbers.
The construction of new worker accommodation or modification of existing properties is challenging
for employers, especially for smaller RSEs that lack access to the level of capital required. Planning
for worker accommodation needs to be given more prominence at the regional level - it requires
industry leadership, collaborative working by employers and accommodation providers, local
government participation, and innovative investment solutions. Councils have a part to play by
reviewing the current restrictive planning requirements for the location and use of seasonal worker
accommodation, and lengthy and expensive consenting processes.
As part of the Agreement to Recruit (ATR) application process that employers must go through to
hire RSE workers, INZ officials must be satisfied that employers are able to provide suitable
accommodation for the number of workers they are seeking to employ. Greater prominence could
be given to worker accommodation in RSE processes. For example, requests from Regional
Governance Groups to the National Governance Group for increased RSE numbers could be required
to specify how and where additional workers will be housed.
69
Implications of RSE as a necessity for RSE employers
While the emphasis of the NZ stream was on impacts for New Zealand communities, other findings
have emerged. One of these is confirmation of the importance of the scheme for RSE employers. The
RSE policy is acting as intended to support change and growth in the H/V industries by providing RSE
employers with a reliable, sustainable seasonal labour supply, supporting their transformation into
high value export-driven industries and, through industry expansion, generating employment
opportunities for New Zealanders.
What may have been unintended, was the speed and scale of industry expansion over the past
decade, driven by consumer demand from international markets, and the associated reliance on RSE
labour to support this growth. Although RSE workers are a relatively small component of the total
seasonal workforce in most regions, they are a necessity for RSE employers, rather than labour that
is merely preferable. Pacific RSE workers provide a temporary ‘band aid’ for a long-standing,
intractable problem, namely the lack of availability or interest of local workers to perform
horticultural work. The horticulture industry is working hard to address this issue, with a range of
initiatives to make the H/V industries more attractive to New Zealanders.
96
However, industry growth
is happening on such a large scale (especially kiwifruit in and around Te Puke) that even if the H/V
industries become more attractive employment prospects, there are not enough New Zealanders to
do the work. The H/V industries will remain reliant on the RSE scheme to meet their future labour
needs. If that specific condition is not met – if RSE labour isn’t supplied – the H/V industries cannot
function as intended.
The RSE scheme is not, however, designed or intended to become the primary model for the H/V
industries’ labour needs. It is simply one ‘lever’ or option available to growers to meet their seasonal
labour requirements. There is a risk that the scheme could generate distortion and dependence
effects,
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where employers make decisions based on the assumption that RSE labour will continue to
be available (such as expanding production in areas where little local labour is available, and avoiding
raising wages when local workers are no longer willing to do the work). There is also a potential risk
that and RSE workers, their families and communities could become dependent on the waged
employment provided by the RSE scheme rather than developing ways to build a sustainable income
at home. The PIC stream will examine this potential risk.
There is no question that RSE labour is now considered a critical component of industry development.
The findings from the NZ stream have, however, revealed employment, pastoral care and
accommodation practices that are not congruent with this notion of the criticality of RSE labour.
While we do not have evidence that the following practices are widespread across RSE employers,
we gathered reliable information indicating that they may be occurring. Interviews with RSE workers
in the Pacific stream will shed further light on such practices.
• Some return workers are being paid the minimum wage despite their experience and skills.
96
Horticulture New Zealand (2018a)
97
Martin, P (2006). Managing labour migration: Temporary worker programmes for the 21st century. Paper
presented at the International Symposium on International Migration and Development, Population Division,
Department of Economic and Social Affairs, United Nations Secretariat, Turin, 28-30 June, 2006 (p.36).
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• There are variable standards of accommodation and pastoral care being delivered (discussed
further below).
• There can be a lack of transparency about pay/piece rates.
• Workers may experience work downtimes over the season. Despite having no earnings, they
still need to pay for living costs, depleting their savings.
• The cost of workers’ rent is steadily increasing (with no improvement in standards or services
delivered) and without comparable increases in wages (or other financial rewards).
Opportunities for occupational mobility
Around eight percent of the 16,222 RSE workers who were employed between 1 July 2013 and 30
June 2017 had worked in New Zealand for at least nine consecutive seasons. Some of these regular
returnees are team leaders in the orchards and packhouses where they are employed. A change they
and their employers would like to see made to the way the current scheme works is to allow for more
occupational mobility among the RSE workforce as this workforce gains more skills in orchard and
packhouse-related work. Opportunities to take on equipment operator roles as well as managerial
responsibilities would allow for on-going skills development as well as income growth.
Interviews with team leaders in New Zealand and former RSE workers in Tonga who have decided
not to return to seasonal employment suggest that there is increasing dissatisfaction with continued
employment on contracts or hourly rates pegged to the minimum wage. They would like more
recognition of their skills and experience in the workplace, as well as their loyalty to particular
employers, in the remuneration they receive for their valuable contributions to seasonal work in the
horticulture and viticulture industries.
Diverse approaches to pastoral care and accommodation
In the course of our fieldwork we came across RSE employers that are going beyond the regulatory
requirements for RSE accommodation and pastoral care, such as sports facilities, well equipped
recreation rooms, regular meals and cleaning services. While these may be viewed as small
contributions, they signal a more diverse landscape in the areas of pastoral care and accommodation
that needs to be acknowledged. Such employers are modelling what is required for the RSE scheme
to maintain its international reputation.
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A comprehensive stock-take of accommodation provided for workers employed under the scheme,
covering all RSE employers and involving an inspection, would be useful, especially when put in the
context of rents charged.
98
An address by Dr Manjula Luthria from the World Bank at the RSE Conference 2017 informed participants that
the International Labour Organisation describes the RSE scheme as a model for other countries to follow.
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RSE workers and communities
Many informants talked about the sacrifices that workers and their families make in order for their
family member to participate in RSE. Someone who spends five to seven months of the year in a
community and returns to spend a similar period in successive years, is very different from a one-off
backpacker worker or a tourist in terms of their potential engagement with services, facilities and
people in the community. For these reasons, there is scope for communities (beyond churches, marae
and NGOs) to do more to welcome and proactively engage with the RSE workers living among them.
While RSE workers may not be inclined or have time to be active participants in their local
community, there may be interest in attending community events and participating in other leisure
activities when time allows. For example, Councils could put on an event to welcome workers at the
beginning of the season, workers could be encouraged to use local public facilities such as swimming
pools and libraries, public venues (e.g. halls) could be made available for workers living in the suburbs
to hang out on wet days. For their part, pastoral care providers could inform workers about free
community events and activities. Inter-employer sports competitions for workers could be organised
(if they are not already happening).
More flexible visa for RSE workers
RSE workers gain entry into New Zealand via an RSE Limited Purpose visa for the term of their
employment contract for periods of up to seven months (or nine months in the case of workers from
Kiribati and Tuvalu) in any 11-month period.
99
If a worker returns home during this time, they must
apply for a new visa to re-enter New Zealand. The cost and processing times involved in doing so are
significant barriers for workers who need to return home for the sickness or death of a close family
member or to attend to other urgent family matters. Given that some RSE workers are returning to
New Zealand to work year-on-year, increased flexibility is needed around visa arrangements to
facilitate workers’ movements between their home and New Zealand.
The single-entry provision of the current RSE visa could be changed into a multiple-entry visa,
allowing workers to make visits home to attend to urgent family affairs, with approval of their
employer, without having to acquire a new visa. This would be especially useful for workers who are
being encouraged to spend the full seven months (or nine months in the case of Kiribati and Tuvalu)
in New Zealand through more extensive use of joint ventures. Introducing a multi-entry visa would
reduce the financial costs of participation for RSE workers, and would be in keeping with one of the
RSE policy’s critical success outcomes – namely, to ensure Pacific workers are able to generate
money and savings that may contribute to development at home. The ability to visit their families in
the islands without having to apply for and purchase a new visa to return to New Zealand was raised
frequently by team leaders.
99
https://www.immigration.govt.nz/new-zealand-visas/apply-for-a-visa/about-visa/recognised-seasonal-
employer-limited-visa
72
Conclusion
The RSE scheme has had a number of positive economic impacts on small and medium-sized towns
in New Zealand, which are located in regions where horticulture and viticulture are prominent
industries. Communities are sharing the economic benefits of RSE employers’ increased productivity
and expansion, with new jobs being created for New Zealanders and more work available for
enterprises servicing the H/V industries. There has been a significant shift in some communities away
from concerns about groups of Pacific Islanders congregating in town, towards acceptance of them
as a regular addition to the local population especially around crop harvest time.
There have been negative impacts, especially on the supply of rental housing stock in some
communities where RSEs do not provide accommodation for their seasonal workers. There have
been pressures on local medical centres during times of the year when there are significant influxes
of temporary workers to pick and pack fruit and vegetables, or to prune trees and vines. But RSE
workers are just one dimension of the seasonal influxes of labour, and for some crops, such as
kiwifruit and grapes, just a small share of the seasonal workforce. They are also just one component
of the temporary migration flows in towns such as Kerikeri, Motueka and Blenheim which are also
destinations, or transit towns, for large numbers of tourists who also want accommodation and, at
times, medical services.
Discerning the “impact” of the RSE scheme on community services and infrastructure is not straight-
forward or consistent across communities. Impacts are mediated very much by community and
region-specific attributes of economy and society. The clearest examples of impact are the ways the
scheme has contributed to increases in productivity of H/V enterprises, and the expansion of
production in this sector of the economy.
The general conclusion that can be drawn from the New Zealand stream research is that the RSE
scheme provides a very welcome, essential stability to a critical component of the seasonal labour
force to ensure the H/V industries achieve their productivity targets, all other factors (including
weather and market prices) being equal. But there are clear signs of capacity limits in available
accommodation and, possibly, some medical services, especially for some of the pre-existing
conditions that may not have been identified in the screening of RSE workers. Looking ahead,
continued growth in the RSE scheme will benefit from more deliberate and conscious planning for
accommodation and other service provision in New Zealand’s communities located in the major
horticulture and viticulture regions.
73
Appendix A. Use of contribution analysis
This appendix explaining how contribution analysis was used in the NZ stream should be read in
conjunction with Appendix C: NZ stream methods.
Logic underpinning contribution analysis
The logic underpinning contribution analysis is summarised below. This summary outlines the
‘theory’ behind the process we used, described in the rest of this section.
The logic underpinning contribution analysis is to reduce uncertainty about the contribution an
intervention is making to observed results through an increased understanding of why results
occurred (or did not occur), and the roles played by the intervention and other influencing factors. It
is a structured analytical reasoning process, as follows.
100
i. The intervention is based on a reasoned theory of change (i.e. the assumptions about why
the intervention is expected to work are explicit and plausible).
ii. The complexity of the context within which the intervention is being implemented is
acknowledged.
iii. The intervention is confirmed as being implemented as planned.
iv. Factors unrelated to the intervention that are ‘at play’ are identified, their influence
understood, and accounted for.
v. Data relating to the intervention are analysed.
vi. An initial contribution hypothesis (or hypotheses) is developed in light of iv. and v.
vii. Data is collected about observed results.
viii. Rival explanations about why the observed results occurred are identified, and either
discounted or included in the analysis.
ix. The initial contribution hypothesis is modified (if necessary) in light of vii. and viii.
x. In light of the above analysis, it is concluded that the most likely explanation for the observed
results is that the intervention has made a contribution.* (Alternatively, it is concluded that
the intervention is not contributing to the observed results; or that further data is required to
determine contribution).
xi. The strength and nature of this contribution is identified (as appropriate), for example,
significant/adequate/minimal; direct influence/indirect influence etc.
* In summary, a contribution claim addresses the following questions:
• Has the intervention made a difference (contribution) to the observed change (impact), or
are there other factors (unrelated to the intervention) that have influenced the observed
change (impact)?
• If the intervention is deemed to have contributed to the observed change (impact):
o How much of a difference (contribution) has the intervention made?
o How/why has the intervention made this contribution?
o What other factors (if any) support this contribution?
100
Mayne, J. (2012). Contribution Analysis: Coming of age? Evaluation, 18: 370-380.
Mayne, J. (2001). Addressing attribution through Contribution Analysis - Using performance measures sensibly.
The Canadian Journal of Program Evaluation, 16: 1-24.
74
Existing RSE theory of change revised
A theory of change identifies the change(s) that an initiative or intervention is intended to bring
about. It describes the mechanisms that are designed to make such change occur, the assumptions
that underlie how and why the intended change is supposed to happen, and identifies the risks that
may impede the intended change from occurring as expected. The theory of change acts as the key
reference point for the research project. Data that are collected about observed changes are
compared to the theory of change, divergences identified, explanations sought, and the theory of
change revised.
The high-level theory of change developed for the 2010 evaluation of the RSE scheme was based on
the notion of the scheme as two interacting sub-systems: one sub-system referring to New Zealand
stakeholders (principally RSE employers, the horticulture and viticulture industries and officials in the
Department of Labour); and the second sub-system referring to PIC stakeholders (principally RSE
workers and officials in the relevant Labour Sending Units). While the principle underpinning this
theory of change is still relevant – the need to balance benefits for New Zealand with benefits for PICs
– the original theory of change fails to account for two stakeholder groups whose significance has
emerged over time, namely, RSE communities in New Zealand, and PIC workers’ families and
communities. These two stakeholder groups were included in an expanded high-level theory of
change for RSE (refer RSE Impact Study Research Plan, Appendix A).
We have chosen not to revise this expanded high-level theory of change in response to the NZ stream
findings at this stage. We are taking a whole-of-system perspective on the RSE scheme (and the
overarching research questions). Therefore, any further revision of the theory of change must also
include and account for the findings from the Pacific stream.
Identifying potential alternative explanations
Contribution analysis requires the researcher to systematically seek out and identify factors
(unrelated to the research subject) that may account for any observed change, either by being the
cause of the change or influencing it in some way.
Based on a review of literature which was conducted as part of the research scoping stage, we
identified 10 potential factors unrelated to the RSE scheme that could influence the impact of RSE at
the community level (listed in Appendix B in the Research Plan). We were unable to do more in-depth
work to understand the influence of such potential factors (as described in step iv. above) because of
tight timeframes to get into the field before the 2018-19 season reached its height in early 2019
(which was likely to affect informants’ availability). To address this, we sought out additional
potential factors (unrelated to RSE) during the fieldwork stage, as follows.
• Our interviews with people in the community (e.g. community leaders, community-based
NGOs such as multicultural centre) asked questions about social and economic changes in
their community since 2006, and their explanations for such changes.
• We asked RSE employers to identify the extent of the scheme’s contribution to observed
changes (positive or negative) in their enterprise and in their community, and other factors
that may have influenced observed change.
• We examined data about the H/V industries to understand what other factors may be
contributing to economic changes at the regional and industry levels.
75
• We developed a profile of each community using secondary economic and social data,
supplemented by information from interviews with local government officials working in
economic and community development roles, Chamber of Commerce, NGOs, church
ministers etc. (Appendix 4).
Identifying influencing factors (unrelated to the RSE scheme)
The coded data was first summarised at the community-level and a summary produced for each
community enabling an initial account of tentative changes (i.e. economic, social, accommodation,
health services, and policing) to which RSE appeared to be contributing in some way or another. This
approach enabled the communities (and changes) to be compared. The examination highlighted
contextual factors influencing the nature and extent of the scheme’s effect at the local level. For
example, if the capacity of medical services is only just adequate for permanent residents, the effects
of RSE worker demand for such services will be problematic. Taking this example further, another
influencing factor is the number of other seasonal workers and tourists in the community who may
also be seeking medical services. We did further analysis to identify contextual factors, which we refer
to as influencing factors, for each of the topics examined (economic, accommodation, medical
services, policing, social) and sought to understand the nature of their influence on RSE.
Developing contribution claims
Developing claims about the contribution of RSE to observed impacts is an emergent process. It
involved searching out additional secondary data to either confirm or refute a tentative contribution
claim. For example, analysis of the interview data revealed informants’ concerns about the pressure
the scheme is putting on low-cost housing in their community. We then sought out additional
secondary information about the housing markets in the six communities to build a more
comprehensive picture of the nature and cause of housing pressures, other than those attributed by
informants to RSE.
Testing and refining contribution claims
Contribution claims and their supporting evidence about the community-level impact of RSE on
economic, social, accommodation, health services, and policing were developed further for scrutiny
by a panel of five academic and practitioner experts in Pacific labour mobility and/or research
methodology.
101
The Expert Panel (who will also be used in the Pacific stream and the Synthesis stage
of the study) scrutinised (i) the associations between RSE and observed impacts identified by the
research team, and (ii) the evidence underpinning such associations. The panel brought their
expertise to check and further strengthen the research team’s interpretation of the data and the
contributions identified.
Understanding different types of contribution
The literature on contribution analysis describes identifying the strength or magnitude of a
contribution claim e.g. great, substantial, some, little, none. Our initial analysis of the data revealed
that we needed to adopt a more descriptive approach to contribution claims. This is because the
impacts of RSE on, and for, individual communities are nuanced and contingent. The impacts are
101
The members of the Expert Panel are Dr Rochelle Bailey, Associate Professor Sandy Morrison, Associate
Professor Robin Peace, Brendan Quirk, Dr Hala Rohorua.
76
influenced by a range of contextual/influencing factors as discussed above. Therefore, when we make
a claim about the contribution of RSE to an observed impact, we need to describe the nature of the
contribution and any influencing factors. Using a system-lens, we developed a typology of types of
contribution listed below.
A direct contribution
RSE makes an unequivocal contribution to an observed impact
which may be positive or negative.
e.g. RSE creates certainty of labour supply which boosts
productivity.
An enabling contribution
RSE (by itself, or in conjunction with something else) enables a
positive impact.
e.g. Increased productivity from a guaranteed labour supply gives
RSEs the confidence to invest in their business creating more jobs
for New Zealanders.
An enabled contribution
Something else has to be in place or happening (e.g. a
contextual/influencing factor) in order for RSE to have a positive
impact.
e.g. Strong consumer demand and high prices for NZ exports makes
it economically profitable for H/V enterprises to remain in business
and expand (without demand from international markets there’d be
no real need for RSE as H/V producers wouldn’t have a large
enough/viable market to sell their products).
An inhibiting contribution/effect
RSE inhibits or gets in the way of something else, resulting in a
negative effect/impact.
e.g. Demand by RSE workers for treatment of minor complaints
(e.g. boils and strains) at the local medical centre creates delays for
locals to get a G.P. appointment.
A tipping point contribution
A certain amount/quantity of something creates a tipping point for
something else to happen.
e.g. The number of RSE workers in a community exceeds the
capacity of the low-cost housing market to accommodate them,
contributing to a shortage of properties for locals seeking a low-cost
rental.
A positive feedback loop
contribution
Something facilitates more of the same i.e. success facilitates
further success.
e.g. In recent years RSE employers have recognised the benefits of
sharing RSE workers to increase their worker numbers and extend
the length of time they have access to workers. As a result, there has
been a significant increase in use of joint recruitment and
employment ventures in recent seasons.
A negative feedback loop
contribution
Maintains system equilibrium e.g. increasing role of the labour
inspectorate in monitoring RSE employers’ standards (especially
accommodation).
77
Appendix B. NZ stream research sub-questions
The research sub-questions for the NZ stream are shown in below. The NZ stream included interviews
with RSE team leaders. Research sub-questions relevant to these interviews are also included below
(under the heading overarching research question two).
Overarching research question one:
What are the social and economic impacts of RSE on, and for, RSE communities in New Zealand?
ECONOMIC IMPACTS
1. To what extent and in what ways has RSE impacted on RSE enterprises’ productivity and other
economic-related aspects of business?
2. What is the contribution of RSE enterprises’ spending on the local economy? (e.g. services and goods).
3. What is the contribution of RSE worker spending (e.g. accommodation, food, goods etc.) to the local
economy?
4. What, if any, are the additional economic impacts (positive and negative) of RSE for the
community/region?
IMPACTS ON INFRASTRUCTURE AND SERVICES
5. What are the effects of the annual arrival of RSE workers into the region on the affordability, availability
and suitability of low-cost housing?
6. What strategies and initiatives have been developed to mitigate adverse effects for RSE workers and
locals? How successful are they?
7. What gaps/deficiencies exist in the provision of affordable and suitable low-cost housing for RSE
workers?
8. What are the effects on local medical services of the annual arrival of RSE workers into the region?
9. What strategies and initiatives have been developed to mitigate adverse effects for local medical
services? How successful are they?
10. What gaps/deficiencies exist in the provision of medical services for RSE workers?
11. What are the effects on local policing of the annual arrival of RSE workers into the region?
12. What strategies and initiatives have been developed to mitigate adverse effects for local policing? How
successful are they?
SOCIAL IMPACTS
13. What are the social impacts for RSE enterprises from employing a workforce made up of workers from
PICs? How significant/important are these social impacts for RSE enterprises?
14. To what extent, and in what ways do RSE workers effect the social fabric/dynamics of the local
community (positive and negative effects)?
15. How do local iwi/hapu, NGOs, churches, and other local organisations support RSE workers’ welfare?
16. What gaps/deficiencies exist in the provision of support to RSE workers?
NZ-BASED PIC COMMUNITIES
17. What is the impact(s) of a large group of RSE workers of one nationality on the NZ-based PIC
community?
18. What is the impact(s) of NZ-based PIC community members on RSE workers of the same nationality?
78
Overarching research question two:
What are the social and economic impacts of RSE for PIC workers and their island-based families?
ECONOMIC IMPACTS FOR WORKERS
19. What are the impacts (actual and potential) for RSE workers as a ‘compliant’ workforce?102
20. To what extent do RSE workers raise disputed employment issues? What mechanisms/avenues do
workers use? How effective are these? What additional avenues/mechanisms are required?
21. What barriers exist for workers to raise employment issues?
22. What is industry doing to mitigate potential and actual negative impacts for workers as a ‘compliant’
workforce? What shortcomings/gaps are evident and where?
23. To what extent are the industry’s productivity gains over the period 2008-2018 reflected in RSE workers’
pay rates? Terms and conditions? Promotion/advancement opportunities?
24. What is the effect of rising accommodation and living costs on the amount of earnings that workers can
save or remit home? What trade-offs are workers prepared to tolerate?
25. To what extent, and in what ways, are skills gained through workers’ employment and living in New
Zealand contributing to economic and social impacts for workers and their families?
SOCIAL IMPACTS FOR WORKERS (NZ-end)
26. To what extent do RSE employers and pastoral care providers support workers’ wellbeing while they are
in New Zealand? (i.e. faith-based and cultural activities; maintaining contact with home; mental and
physical health)?
27. To what extent do RSE workers experience support from the local NZ community they are living in?
102
This term refers to the limitations placed on RSE workers as a result of their temporary work visa in NZ which
restricts their employment to a particular RSE employer.
79
Appendix C. NZ stream sample, methods and analysis
Community and RSE employer sample
The NZ communities and RSE employers are shown in Table 15. The PICs and specific villages where
workers live (who will be participating in the Pacific stream) are not shown in the table to ensure their
anonymity.
Table 15. Community and RSE employer sample
Community
RSE employer
Crop/employer type*
Kerikeri
Employer 1
Grower – citrus, berries
Large employer
Employs female RSE workers
Hastings
Employer 2
Grower - apples, pears, summerfruit
Mid-sized employer
Employer 3
Grower cooperative – pipfruit, summerfruit, grapes
Large employer
Employs female RSE workers
Employer 4
Labour hire - horticulture and viticulture
Large employer
Employer 5
Grower - apples
Large employer
Employs female RSE workers
Te Puke
Employer 6
Grower – kiwifruit
Small employer
Employer 7
Packhouse – kiwifruit
Large employer
Employs female RSE workers
Motueka
Employer 8
Grower – apples, kiwifruit
Large employer
Employs female RSE workers
Employer 9
Grower - apples
Mid-sized employer
Blenheim
Employer 10
Labour hire - viticulture
Large employer
Employs female RSE workers
Roxburgh
Employer 11
Grower cooperative – pipfruit, summerfruit, grapes
Large employer
Employer 12
Grower – berries
Small employer
* Small employer <50 workers; medium-sized employer 50-200 workers; large employer 200+ workers
Methods
The methods and data sources used in the NZ stream are described in Table 16.
80
Table 16. Methods and data sources
Method
Informant/data
Data details
Face to
face
interviews
Community-
based, industry,
and other
informants *
Face to face interviews were completed in each of the six communities by
a team of three researchers, working by themselves (Te Puke, Motueka,
Blenheim) or in pairs (Hastings, Kerikeri, Roxburgh) from mid-November
2018 to beginning April 2019 using one of 12 topic guides.103 A small
number of interviews were done on the telephone after the fieldwork
visits due to an informant being unavailable when we were visiting, or to
‘back-fill’ areas of information that initial analysis identified as needing to
be strengthened.
136 interviews were completed with 179 informants in the period
November 2018 - April 2019. The types and numbers of informants
interviewed in each community are shown in Table 17.
Document
review
Official research
and papers
Included RSE Remittance research, RSE Employer Annual Survey 2012-
2018, Evaluation of Strengthening Pacific Partnerships and Vakameasina
2016, Vakameasina Design 2017, Pacific Women and Labour Strategy
(draft, undated), RSE Operational Review, MBIE Risk Register.
Scan of relevant
research
literature
The research literature on the NZ and Australian seasonal work schemes
was reviewed in the research scoping phase to identify impacts of labour
mobility on workers, families and communities. The review was re-
scanned to identify RSE worker experiences while working in NZ.
Media review
A review of media information relating to the RSE scheme that
appeared in community-level media in the previous five years (2013-
2019) in each of the study’s targeted communities and their wider
environs. In addition to print and electronic media, content was
retrieved from social media and blog sites.
Descriptive
statistical
analysis
Industry/regional/
other statistical
data
Sources included: research on patterns of worker engagement in RSE;
Horticulture/Viticulture industry data for regions; regional economic
activity/labour market information; census data; regional housing stats
(e.g. rent levels, housing affordability, homelessness); RSE health
insurance statistics.
* Informants included:
• Community-based informants e.g. Chamber of Commerce, local government economic adviser/local economic
development agency, PHOs/medical centre practice managers, NZ Police, local government community development
advisers, church ministers, Pacific community leaders, Community Law Centres, NGO informants and local retailers.
• Informants involved directly in the RSE scheme: RSE employers, pastoral care providers, accommodation providers,
Regional Governance Group members, and Vakameasina tutors.
• PIC team leaders: Our reason for interviewing team leaders during the NZ stream without interpreters is that they are
recruited for their English language communication skills, along with their leadership skills. They expect to
communicate in English in the workplace and are described as likely to be affronted if a Pacific researcher translated
in the interview.
• Regionally-based government officials: Work and Income, Labour Inspectors, and RSE Relationship Managers.
103
The twelve topic guides were developed using a matrix based on the research sub-questions. The
completed guides were reviewed by team members. An information sheet and consent form were produced
for use with informants.
81
• National informants: industry stakeholders, Union official, Pacific Liaison Officers, Orbit Insurance, MBIE and officials
from the Ministries of Health, Social Development, and Primary Industries.
A coding frame was developed for a thematic analysis using a ‘top-down’ approach (i.e. based on the
research questions) and ‘bottom-up’ approach (i.e. themes emerging from the data). Coding was
done using NVivo software (NVivo 10) which provides for ‘cases’ to be established. This enables data
between informant groups and communities to be compared, and the NZ and Pacific data to be
linked and compared. The interviews were coded by two members of the team. Appendix A describes
the data analysis procedure, and process used for developing, testing and confirming contribution
claims.
82
Table 17. Number of interviews by community and informant type
Blenheim
Hastings
Kerikeri
Motueka/
Nelson
Te Puke
Roxburgh
National
informants
Total
inter-
views
Total
inform-
ants
Informant
types
No. of
inter-
views
No. of
inform-
ants
No. of
inter-
views
No. of
inform-
ants
No. of
inter-
views
No. of
inform-
ants
No. of
inter-
views
No. of
inform-
ants
No. of
inter-
views
No. of
inform-
ants
No. of
inter-
views
No. of
inform-
ants
No. of
inter-
views
No. of
inform-
ants
Community104
6
8
4
3
4
6
4
4
7
10
2
2
0
0
27
33
Economic,105
Work & Income
3
6
3
8
2
2
1
1
3
3
2
2
0
0
14*
22*
Health
1
2
2
5
1
1
1
2
1
1
1
1
2
3
9
14
Industry106
2
2
2
2
0
0
0
0
1
1
1
1
3
5
9
11
Local
government
2
2
2
4
1
1
1
1
1
1
0
0
0
0
7
9
PIC Liaison
Officers
0
0
0
0
0
0
0
0
0
0
0
0
4
4
4
4
Police
1
1
1
1
1
1
1
1
1
1
1
1
0
0
6
6
RSE employers
1
2
4
5
1
2
2
5
2
3
2
2
0
0
12
19
RSE officials107
0
0
3
3
1
1
3
4
1
1
0
0
3
3
11
12
RSE service
providers108
3
4
5
5
3
3
5
5
5
5
6
12
0
0
28
35
RSE worker
team leaders
1
2
2
2
1
1
1
2
1
2
2
3
0
0
8
13
Union
0
0
0
0
0
0
0
0
0
0
0
0
1
1
1
1
Totals
20
29
28
38
15
18
19
25
23
28
18
25
13
16
136
179
104
Includes community boards, iwi representative, church ministers/pastors, PIC community leaders, Community Law Offices, community-based NGOs, other key community
members.
105
Includes Chamber of Commerce, real estate agent, Provincial Development staff, retailers that cater for RSE workers (multiple retailers were spoken to in each community.
They are counted as one interview per community).
106
Includes Regional Governance Group chairs, national industry leaders.
107
Includes Pacific Liaison Officers, RSE Relationship Managers, Labour Inspectors.
108
Includes RSE pastoral care providers, RSE accommodation providers, transport providers, Vakameasina personnel.
83
Appendix D. Descriptions of the six communities
Kerikeri
Kerikeri, with an estimated population of 7,500 in 2018,
109
is the largest town in Northland and a key
service town, known by local residents as the “hub of the north.” Between 1996 and 2016 the Far
North District’s resident population grew by 8,000 to 62,000, with 85 percent of that growth
occurring in and around Kerikeri.
110
Residents from periphery towns come to Kerikeri for schools,
shopping, services and many for employment. As Kerikeri has grown in size, regional services have
become centralised, leading to a reduction in services available in periphery towns and placing
growing pressure on Kerikeri’s infrastructure, especially roads, parking and wastewater.
111
Kerikeri has an ageing, relatively affluent population, due in large part to continued growth in
numbers of retirees and lifestyle migrants from the Auckland region. Almost 21 percent of the Far
North District’s population is aged 65 years and over, compared to a national average of 15.3
percent.
112
The town’s relative affluence is in contrast to the surrounding area that includes some of
New Zealand’s most socioeconomically deprived towns (e.g. Kaikohe, Kawakawa and Moerewa).
113
The District has a high Maori population (approximately 44%), and Maori are projected to become
the majority ethnic group by 2033.
114
Primary production (agriculture, forestry and fishing) is the backbone of the district’s economy,
accounting for more than 14 percent of the district’s GDP in 2018.
115
Forestry is a significant
contributor to regional growth, injecting close to $380m into the Northland economy in 2017 and
accounting for 1.5 percent of all employment in Northland.
116
In the Far North District a large forestry
block owned by Ngāti Hine Forestry Trust (near Kaikohe) and the Waipapa Pine sawmill employ
substantial numbers of local workers, along with the freezing works in Moerewa. Forestry and meat
processing are important sources of employment for lower skilled workers, alongside horticulture.
Construction has been a key driver of the economy in recent years, with growth in residential and
non-residential developments.
117
Residential developments are largely driven by growing numbers of
retirees and lifestyle migrants. Kerikeri currently has four retirement villages, two of which are under
expansion, and a fifth retirement village is in the planning stages.
118
Several informants noted that
109
MBIE Regional Economic Activity Web Tool
110
Far North District Council (2018). Long-term plan 2018-28. Proposed infrastructure strategy.
https://www.fndc.govt.nz/communication/consultation/long-term-plan-2018-28/ltp-2018-documents/4.-
Proposed-Infrastructure-Strategy.pdf
111
‘Kerikeri planning not by the numbers’, The Northland Age, 21 June 2018,
https://www.pressreader.com/new-zealand/the-northland-age/20180621/281569471449508
112
MBIE Regional Economic Activity Web Tool http://webrear.mbie.govt.nz/theme/population-by-age-
group/map/timeseries/2018/far-north/65-years-and-over?accessedvia=northland&right-transform=absolute
113
Far North District Council (2018).
114
Ibid.
115
https://ecoprofile.infometrics.co.nz/Far%20North%20District/Gdp
116
NZIER (2017a). Plantation forestry statistics. Contribution of forestry to New Zealand. Wellington: NZIER.
117
Infometrics (2018). Quarterly economic monitor. Far North District, December 2018.
118
https://www.stuff.co.nz/auckland/local-news/northland/106298856/is-kerikeri-the-retirement-mecca-of-
new-zealand
84
retirees do not make a large direct contribution to the economy, but they do place pressure on the
community’s infrastructure and services. A challenge facing the district is the increasing
fragmentation of horticultural land, especially on the outskirts of Kerikeri, as a result of subdivision
into lifestyle blocks and residential housing expansion. The District Plan is currently under revision
and includes specific provisions designed to identify and protect horticultural land and prevent
further land fragmentation.
119
Tourism is another major contributor to economic growth. Kerikeri has one of the fastest growing
regional airports in the country, and large numbers of tourists drive through the town on their way to
the Bay of Islands. In 2018 the tourism industry accounted for 14.4 percent ($278.2m) of regional
GDP, and was the district’s biggest employer, employing 4,371 people.
120
The horticulture industry and RSE in Kerikeri
Horticulture plays a significant role in the local economy, contributing $30.2m to the Far North
District’s GDP in 2018.
121
Kiwifruit is Northland’s largest crop, with the region producing around 3.6m
trays of green and gold kiwifruit for export in 2017. Citrus is the region’s second largest crop with
significant volumes of lemons and mandarins, and the area has become a prime growing region for
avocados, accounting for 45 percent of New Zealand exports.
122
With an ageing, affluent local population, most people living in Kerikeri aren’t involved in seasonal
work unless they own a horticultural enterprise. The local labour pool for seasonal work in Kerikeri is
small. However, there’s a large pool of potential labour available from periphery towns with high
levels of unemployment. The Far North District’s unemployment rate was 7.4 percent in December
2018, well above the national average of 4.3 percent.
123
Work readiness, trainability and reliability
have been cited as issues to employing locals.
124
Transport, in particular, is a problem. Many locals
don’t have transport or it isn’t cost effective for them to drive when earning minimum wage, and
employers are concerned about the reliability of workers travelling from other towns.
Nonetheless, Kerikeri’s large horticulture employers make a concerted effort to recruit and retain
New Zealand workers from periphery towns (e.g. providing transport to/from work and meals for
workers). These employers work closely with Work and Income (W&I) to provide employment, and,
according to the local W&I broker this relationship has been strengthened through RSE. New Zealand
workers are employed for the packhouse and for orchard work, whereas RSE workers are employed
solely for orchard work. Data provided by W&I on RSE’s forecast employment numbers for 2019 show
New Zealand workers will make up 60-75 percent of the total workforce each month, with the largest
numbers of New Zealanders employed during the peak period of March to June. Local workers are
also employed on smaller, family-run farms that are not engaged in the RSE scheme.
119
Far North District Council (2018). Draft District Plan.
120
https://ecoprofile.infometrics.co.nz/far%20north%20district/Tourism/TourismGdp;
https://ecoprofile.infometrics.co.nz/far%20north%20district/Tourism/TourismEmployment
121
https://ecoprofile.infometrics.co.nz/Far%20North%20District/Gdp/Structure
122
https://www.northlandnz.com/business/sectors/horticulture/
123
Infometrics (2018). Quarterly economic monitor. Far North District, December 2018.
124
Ministry of Primary Industries (MPI) (2016). Mid to far north employer engagement. MPI technical paper
no. 2017/12. Report prepared for MPI by Research New Zealand. Wellington: MPI.
85
The number of RSE employers (8) in Kerikeri is small and there are relatively few RSE workers (334
workers in 2017-18). The largest number of RSE workers (49%) come from Tonga, with smaller
numbers from Vanuatu (28%), Kiribati (14%) and Fiji (4.5%). Until 2018, there was only one large RSE
in Kerikeri, Turners & Growers (T&G), that recruited the majority (77.5%) of RSE workers. The other
seven RSEs had 75 workers between them. T&G produces a range of crops in Kerikeri including citrus,
berries and, until recently, kiwifruit. Because of the range of crops produced there are no significant
peaks in production and no associated spikes in the numbers of RSE workers entering the district.
Workers are needed year-round for a range of tasks and they are a constant presence in Kerikeri.
RSE workers are accommodated at two sites: a holiday park in central Kerikeri and a motor camp on
the outskirts of town. Transport to and from work is provided, and all workers access one medical
centre. The impacts of the RSE on local housing, services and infrastructure are therefore relatively
limited.
Looking ahead
Northland’s subtropical climate and wide diversity of soil means the area has strong growth potential
for kiwifruit, especially for the SunGold variety.
125
The industry’s contribution to regional GDP is
expected to more than double from $30.6m in 2015/16 to $72m by 2030, and generate nearly 900 full-
time equivalents (FTEs).
126
Significant expansion of kiwifruit orchards is taking place on the outskirts
of Kerikeri and, linked to this, increasing consolidation and corporatisation. Smaller growers are
being squeezed out due to the high costs of licenses for SunGold plantings (currently $270,000/ha),
and they are being replaced by large-scale producers, mainly from the Bay of Plenty who are entering
the region and purchasing sizeable tracts of land. New Zealand’s largest kiwifruit producer, Seeka,
recently purchased T&G’s kiwifruit business and post-harvest facilities for $40 million, and is in the
process of building a multi-million dollar, highly automated packhouse facility to handle their
kiwifruit production in the region.
127
The area is attractive to Bay of Plenty producers because land
prices are lower, growers have access to the Kerikeri irrigation scheme,
128
and (at this stage) there is
no shortage of accommodation for seasonal workers.
Other types of horticultural production in Kerikeri are changing as well, with a reduction in plantings
of citrus, and significant expansion in berries and avocados. These changes are driven by market
demand, both domestic and international, and are driving the shift to year-round operations.
125
https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11986919
126
Scrimgeour, F., Hughes, W. & Kumar, V. (2017). The economic contribution of kiwifruit industry expansions
to the Bay of Plenty, Northland and New Zealand economies. Hamilton: Institute for Business Research,
University of Waikato.
127
Seeka is an integrated orchard management and post-harvest business that handles around 20% of NZ’s
export kiwifruit crop each season. Seeka has been operating in Northland since 2013 and has one of the largest
land holdings for producing kiwifruit and avocado orchards covering 288ha
(https://www.seeka.co.nz/SeekaNorthlandOrchardPortfolio.pdf). The $40m sale includes all of T&G’s post-
harvest facilities used for packing and storing avocados, kiwifruit and citrus, and 80ha of kiwifruit orchards
(https://www.stuff.co.nz/business/farming/103277038/turners--growers-sell-40m-kiwifruit-business-to-
seeka).
128
The Kerikeri water scheme is a community irrigation scheme developed in the 1980s that supports the long-
term viability of the region’s horticulture industry.
86
Continued expansion of kiwifruit, especially, will result in increasing demands for seasonal labour.
With a small local labour pool, more workers will need to be drawn from periphery towns and/or
businesses will require additional RSE workers. One informant noted that if a port or rail link is
developed in Whangarei, Kerikeri will see further growth in horticulture.
While the impacts of RSE workers on housing and infrastructure are negligible at this stage,
continued industry expansion may place pressure on the community in future. Housing, especially,
may come under pressure due to current restrictions on building residential units on horticultural
land. The proposed District Plan includes zoning to protect horticultural land and development, but
little thought has been given to the potential need for onsite worker accommodation. Restrictions
surrounding the use of horticultural land, and the lack of provisions for accommodation, may act as
a constraint to any significant future growth in RSE numbers.
Te Puke
The town of Te Puke, located in the Western Bay of Plenty and with an estimated population of 8,350
in 2018, is at the heart of New Zealand’s kiwifruit industry. Kiwifruit is the primary driver of the
Western Bay of Plenty District’s economy, accounting for around 65 percent of the district’s
economic output.
129
The Bay of Plenty is one of New Zealand’s main fruit producing regions, with
over 13,000ha of fruit grown. The region consists predominantly of kiwifruit (10,787ha in 2017/18) and
avocados (2,319ha in 2017/18), and has smaller plantings of citrus, berries and vegetables. In 2017/18
the Bay of Plenty produced 81 percent of New Zealand’s total kiwifruit crop and 47 percent of
avocados.
130
Both industries are supported by substantial Maori investment, and contribute
significantly to regional employment. The kiwifruit industry employed an estimated 10,762 FTEs and
contributed $867 million to regional GDP in 2015/16.
131
The avocado industry values at $152 million
(2017/18) and at peak times employs approximately 1,391 FTEs in the region.
132
New Zealand’s kiwifruit industry is undergoing rapid growth following recovery from the PSA crisis,
first discovered in November 2010.
133
This expansion is driven by high demand from export markets,
especially China. Zespri is the sole global exporter of New Zealand kiwifruit – all kiwifruit operations
must be registered with them – and the company has a target of doubling industry value from $2
billion in 2017 to $4 billion by 2027.
134
Zespri is currently releasing SunGold licenses for up to 700ha
per year based on forecasts of “extraordinary global demand”. By 2027 it is anticipated that two-
thirds of kiwifruit grown in New Zealand will be the SunGold variety.
135
SunGold is labour intensive,
with a sharp peak for picking the majority of crop within a four-week period. This is in contrast to
129
Western Bay of Plenty District Council (2016). Seasonal worker accommodation review. Retrieved from
http://www.westernbay.govt.nz/our-district/current-projects/Documents/Research%20Report%20-%203%20-
%20Seasonal%20Worker%20Accommodation%20Review%20-%20%28for%20Public%20release%29.pdf
130
Horticulture New Zealand (2018b). Submission on proposed smart growth future development strategy.
131
Scrimgeour, F., Hughes, W. & Kumar, V. (2017).
132
Horticulture New Zealand (2018b).
133
Psuedomonas syringae pv. Actinidiae (Psa) is a bacteria that can result in the death of kiwifruit vines. It was
first discovered in NZ in November 2010 and caused severe, widespread damage to the country’s kiwifruit
industry.
134
NZKGI (2018). New Zealand kiwifruit labour shortage.
135
The current split between the SunGold and Haywood (green) plantings is roughly 50/50 (NZKGI, 2018).
87
green kiwifruit that has two peaks over a longer period of 8-10 weeks.
136
The high yields and short
harvest window for SunGold is placing additional pressure on an industry that is already struggling to
meet its labour needs.
The peak kiwifruit season runs from March to October and leads to a large influx of seasonal workers
into the Bay of Plenty, particularly around Te Puke where the bulk of orchards and packhouses are
located. A key feature of the industry is the widespread use of contractors, with around 360 in
operation. Contractors provide a range of services including contract growers, labour suppliers, and
transport providers (for kiwifruit labour). All growers and packhouses registered with Zespri must
meet GLOBALGAP and GRASP regulations (which includes auditing)
137
and this includes their
contractors. Lack of compliance in the kiwifruit industry is, however, an ongoing issue. This is due, in
large part, to the number of non-RSE contractors that operate. RSEs comprise only a small group in
the industry (a total of 24 RSEs in 2017/18).
In 2017 the kiwifruit industry employed 15,678 seasonal workers (all sources) to pick and pack 123
million trays. New Zealand workers are the industry’s primary source of labour, comprising 56 percent
of the seasonal workforce. Backpackers are the second largest source of workers (22%) followed by
RSE workers (17%).
138
While RSE workers make up a small share of the total seasonal workforce, they
are considered an essential and “permanent” component of the workforce. Unlike backpackers,
many RSE workers return for multiple seasons and they provide a core of reliable, skilled workers for
picking, packing and pruning.
In contrast to other communities, such as Kerikeri and Hastings, where RSE workers are used solely
for orchard work, in Te Puke RSE workers are employed in the packhouse as well as the orchard. They
are of particular value for night shift work that enables packhouses to operate 24/7, especially as New
Zealand workers and backpackers are reluctant to commit to night shift work on a regular basis. One
RSE employer noted they were packing 21 million trays in 2007 and are now packing 41 million trays.
In her view this would be impossible without RSE workers doing night shift work. The majority (42%)
of RSE workers in the region come from Vanuatu and they are mainly men due to the physical nature
of kiwifruit pruning.
The industry’s current phase of rapid expansion is affecting the size, scale and workflow for picking,
packing and pruning and leading to substantial shortfalls in labour. Contractors are competing for
workers and offering “premium” rates for picking during harvest,
139
and for winter pruning which is
critical for the quality of the crop in the next season. An official seasonal labour shortage was declared
136
Scrimgeour, F., Hughes, W. & Kumar, V. (2017).
137
GRASP (GLOBALGAP Risk Assessment on Social Practice) is an add-on to the main certification scheme and
assesses social practices on the farm including workers’ health, safety and welfare
(https://www.globalgap.org/uk_en/for-producers/globalg.a.p.-add-on/grasp/).
138
NZKGI (2018). New Zealand kiwifruit labour shortage.
139
In 2019, pay rates for kiwifruit picking during peak harvest had increased to $23.50 an hour, up from
$21/hour in 2017 (see NZKGI (2018); https://www.stuff.co.nz/business/farming/111867770/industry-
scrabbles-to-find-fruit-pickers-offering-2350-an-hour).
88
in 2018, and again in 2019. This season the industry estimates they will have a shortage of 3,800
workers at peak harvest period.
140
Barriers to securing seasonal labour include:
141
• A low unemployment rate (4.8% in December 2018, slightly above national average of 4.3%)
• Fewer backpackers and students seeking seasonal work
• The short-term nature of work with a short peak period is a disincentive for New Zealand
workers; and
• The industry has a “bad image” with poor perceptions around pay rates and workers’ welfare
which makes it hard to attract local workers.
Unemployed youth (18-24 year olds) are a particularly difficult group to place and retain in seasonal
work. This is due to a range of factors such as: unstable living conditions, the lack of a driver’s licence
/ transport, drug and alcohol issues, and lack of motivation and incentives to work. The industry also
faces competition for lower-skilled workers from other industries such as construction, forestry and
tourism.
Expansion of the kiwifruit industry has had both positive and negative impacts on Te Puke and the
surrounding area. Positive impacts relate primarily to the multiplier effects of expansion. Migrant
seasonal workers (including RSE workers) make a direct economic contribution to the district through
the money spent on food, goods and services and so forth. According to one informant, the Te Puke
retail sector relies quite heavily on migrant workers following the development of the toll road bypass
in 2015, and there has been obvious growth in the numbers of dollar shops, second-hand businesses
and Asian and Indian food shops catering to migrants.
Development of kiwifruit orchards also has flow-on effects for those sectors that support the industry
including machinery firms, irrigation and agricultural suppliers, transport and distribution services,
and the accommodation sector. The kiwifruit industry has not made any real investments into
accommodation infrastructure; the industry relies heavily on third-party providers. This is due, in
part, to the short-term nature of seasonal work in kiwifruit and the large numbers of small contractors
operating in the industry that cannot afford the capital investment.
142
RSE workers are housed in a
range of accommodation types around the district, including backpacker hostels, holiday parks,
campgrounds and rental houses (often onsite at orchards and packhouse locations). Third-party
providers are also used for transport services, driving RSE workers to and from work each day in
shuttle buses and minivans.
Alongside the positive impacts, several negative impacts of expansion were noted. The region has a
shortage of suitable accommodation for local families and migrant workers. This is especially
problematic in the Western Bay of Plenty where the majority of orchards and packhouses are
based.
143
Industry growth is placing pressure on land, water supply and infrastructure. An additional
7,000ha of irrigatable land is required to meet Zespri’s target of $4bn by 2027, and New Zealand
140
https://www.tvnz.co.nz/one-news/new-zealand/labour-shortage-declared-in-bay-plenty-kiwifruit-industry-
short-3800-workers
141
NZKGI (2018).
142
NZKGI (2018).
143
Western Bay of Plenty District Council (2016). Seasonal worker accommodation review.
89
Kiwifruit Growers Incorporated (NZKGI) is in the process of developing a new Water Strategy for the
kiwifruit industry to ensure sustainable use of the region’s water supply.
144
The district has seen significant increases in traffic volumes associated with the freight of kiwifruit
from orchard to post-harvest facilities and on to the Port of Tauranga, and there are now more
seasonal workers on the road. Traffic volumes are also increasing due to regional urban
development.
145
In 2017 the development of a major industrial park (Rangiuru Business Park) was
announced. This will accommodate a wide range of business, including freight distribution and
storage services for Tauranga’s port, and is expected to become a key industrial hub for the region.
146
Looking ahead
As part of Zespri’s growth strategy, production volumes are set to increase from 123 million trays in
2017 to 190 million trays in 2027. To support this growth the industry needs an additional 7,000+
seasonal workers over the next 10 years.
147
Much of the future growth is expected to occur in and
around the Western Bay of Plenty, and will place additional pressure on local accommodation,
infrastructure and services.
Automation of the kiwifruit industry will play an important role in future. There is already significant
mechanisation in the packhouse, and work is underway for mechanised picking, but developments
are still more than a decade away. A recent report by NZKGI (2018) argues the shortage of labour
facing the industry has reached a critical stage and, without intervention, could severely constrain
further growth and thwart efforts to double revenues by 2027.
148
The industry will increasingly look
to the RSE scheme as a potential solution.
Hastings
Hastings city is one of two major urban areas in the Hawke’s Bay region, and the largest community
included in the RSE Impact Study, with an estimated population of 80,600 in 2018.
149
Hastings has a
relatively multicultural population with 75 percent identifying as being of European/Pakeha ethnicity,
almost 25 percent as Maori, six percent as Pacific Peoples, and more than 4 percent as Asian. The
Maori and Pacific Peoples populations are projected to increase over the next 30 years, accounting
for approximately 27 percent and 12 percent respectively of the total population by 2045.
150
Hastings is undergoing a sustained period of growth linked with the development and expansion of
the horticulture industry. Property prices in Hastings increased 10.8 percent between September
2017 and 2018, well above the national average of 4.1 percent over the same period. The district is
144
https://www.coastandcountrynews.co.nz/news/4190-water-strategy-evolving-kiwifruit.html
145
Horticulture New Zealand (2018b).
146
https://www.nzherald.co.nz/bay-of-plenty-times/news/article.cfm?c_id=1503343&objectid=11864073
147
NZKGI (2018).
148
Ibid.
149
MBIE Regional Economic Activity Web Tool http://webrear.mbie.govt.nz/summary/new-
zealand?accessedvia=hawkes-bay
150
Economic Solutions (2009). Heretaunga Plains urban development study phase 2 technical analysis.
Demographic and economic growth outlook 2015-2045.
90
also experiencing strong retail growth, with consumer spending demonstrating confidence in local
retailers and indicating a buoyant local economy.
151
Agriculture, forestry and fishing is a major driver of the regional economy, accounting for 12.1 percent
($752.1m) in 2018 (second only to manufacturing). Within that, horticulture (3.3%), sheep, beef cattle
and grain farming (3.1%) and forestry (2.3%) make significant contributions.
152
The Hawke’s Bay is
New Zealand’s largest pipfruit growing region, accounting for 66 percent of the national volume, and
many of the large corporates have their headquarters located there.
153
The Port of Napier is a major
export and transport hub for pipfruit, and in the year to September 2018 apple exports exceeded
23,000 containers (TEU) for the first time.
154
The Hawke's Bay is the country’s oldest wine region (dating back to 1851) and the second largest with
a total of 4,681ha planted in grapes. In 2018 and the region produced 41,000 tonnes, equivalent to 10
percent of the country’s total wine production.
155
Hawke’s Bay is also New Zealand’s second largest
summerfruit growing region (31%), behind Central Otago (59%).
Alongside horticulture, forestry is a key driver of regional economic growth, with a large amount of
forestry coming on stream over the past decade. In the 12 months ending September 2018, the
export of logs was up 35 percent on the previous year (2,240,000 tonnes in 2017/18). Steep growth in
exports is set to continue for the next 10 years, with volumes expected to reach approximately 3
million tonnes by 2026.
156
Tourism is also important, accounting for 5.6 percent of regional GDP in 2018 and employing 5,446
people.
157
Cruise tourism in the region is flourishing with 103,000 passengers visiting the Port of
Napier in the 2017-18 cruise season (October to April). 72 cruise ships (125,000 visitors) are expected
to visit Port Napier in 2018/19 with passengers expected to spend around $28 million. Vineyard
tourism is especially popular with cruise passengers.
158
As one informant noted, the role of the port
in economic activity is “huge for both exports and tourism”.
The horticulture industry and RSE in Hastings
Following deregulation of the pipfruit industry in 2001 (18 years ago) the pipfruit sector has gone
through a sustained period of consolidation and corporatisation as smaller family-owned enterprises
have merged with larger corporates. The area planted in pipfruit has increased from around 5,400ha
151
https://greatthingsgrowhere.co.nz/services/strong-retail-growth-continues-in-hastings-district/
152
https://ecoprofile.infometrics.co.nz/Hawke's%20Bay%20Region/Gdp/Structure
153
Horticulture New Zealand (2018a).
154
https://www.napierport.co.nz/napier-port-releases-annual-results/
155
NZ Winegrowers (2018). Annual report. Retrieved from https://www.nzwine.com/en/news-
media/statistics-reports/new-zealand-winegrowers-annual-report/
156
https://www.napierport.co.nz/napier-port-releases-annual-results/.
157
https://ecoprofile.infometrics.co.nz/Hawke's%20Bay%20Region/Tourism/TourismGdp;
https://ecoprofile.infometrics.co.nz/Hawke's%20Bay%20Region/Tourism/TourismEmployment
158
https://www.napierport.co.nz/napier-port-releases-annual-results/; https://www.nzherald.co.nz/hawkes-
bay-today/business/news/article.cfm?c_id=1503458&objectid=12146224
91
in 2010 to 7,274ha in 2019,
159
and two producers, Mr Apple and T&G, dominate the industry
accounting for approximately 55 percent of apple production.
160
Associated with the expansion has been growth in all industries that feed into horticulture including
construction (Sunfruit Group built a 12,000sqm packhouse and coolstore in 2018 for $25 million),
161
expanded transport and distribution services, irrigation, agricultural services, training (e.g. OH&S,
driving licensing and Vakameasina courses for RSE workers) and accommodation services. One RSE
estimates the company spends $500,000 per year leasing their accommodation, and another
$530,000 per year leasing vans for worker transport.
Industry expansion, in turn, is supporting greater employment of New Zealand workers. As
horticulture enterprises grow and shift towards year-round production with new varieties coming
online, recruiting and retaining skilled, productive New Zealand workers has become a priority.
Employers need permanent, local staff to do the development and infrastructure work in the
orchards and “get the fruit on the trees” (e.g. tractor driving, spraying) before RSE workers arrive for
the peak season.
The peak season for pipfruit runs for eight months from November through until June when high
numbers of seasonal workers are required for thinning, picking and packing. There are 24 RSEs
operating in the region, employing over 3,500 RSE workers in 2017/18. The largest numbers come
from Vanuatu (29%) and Samoa (27%), followed by Tonga (12.5%) with smaller numbers from Fiji,
Kiribati, Papua New Guinea, Solomon Islands and Tuvalu. Strong regional economic growth
combined with a low unemployment rate (4.6% in December 2018) means the industry is competing
with other sectors for lower-skilled workers and this has led to a shortage of labour for the past two
seasons. An official seasonal labour shortage was declared in 2018 – the first official declaration since
2010
162
– and a second labour shortage has been declared for the 2019 season. The current shortage
covered a six-week period from February to April 2019 and an additional 300-400 workers are
needed.
163
The pipfruit sector works closely with W&I to try and address their labour needs and since October
2018 W&I have placed more than 200 clients in job vacancies.
164
However the region still has an
“untapped pipeline of workers” that can be connected to employment opportunities. The percentage
of 15 to 24 year olds not in employment, education or training (NEET rate) in Hastings was 17.6
159
NZ Apples & Pears (2018). Apple & pear industry seasonal labour analysis;
https://www.baybuzz.co.nz/2010/12/18/apples-a-growing-business/
160
Mr Apple is the largest vertically integrated apple growing company in the country with 200ha of orchards
as well as packhouses and coolstores. The company employs 400 full-time staff with numbers growing to 2,200
at the peak of the season (Christina, G. (2018). Mr Apple gets smarter. The Orchardist.)
161
http://www.waterfordpress.co.nz/build/sunfruit-group/
162
https://www.msd.govt.nz/about-msd-and-our-work/newsroom/media-releases/2018/declaration-of-
seasonal-hawkes-bay-labour-shortage.html
163
https://www.immigration.govt.nz/about-us/media-centre/news-notifications/seasonal-labour-shortage-
declared-in-hawkes-bay
164
Radio NZ (2019). Govt declares Hawke’s Bay seasonal worker shortage. RNZ, 15 February 2019.
https://www.radionz.co.nz/news/national/382567/govt-declares-hawke-s-bay-seasonal-worker-shortage
92
percent in the year to December 2018, well above the national average of 11.9 percent.
165
Some of
the larger corporates, such as T&G and Bostock, have a strong philosophy of employing New
Zealander’s first and growing the local talent pool (through providing jobs, training, qualifications) to
help meet their annual labour needs.
166
W&I has a particularly good relationship with these
employers - they understand the need to provide “suitable” and “flexible” jobs that are tailored to the
often “difficult and precarious lives” of W&I clients. These employers also provide a lot of wrap-
around support, often via their RSE pastoral care staff.
W&I’s relationship with local RSEs is dynamic. In times of low unemployment W&I focuses mainly on
the large corporates where their efforts are likely to produce the best outcomes for W&I clients. In
times of higher unemployment, W&I puts effort into their relationships with all RSEs, medium to
small growers as well as contractors. Some informants voiced concern, however, that many
employers have become reliant on their RSE workers at the expense of local workers, and there’s a
perception that RSE workers are treated better than local staff. RSE workers are guaranteed 30 hours’
work a week, provided with accommodation, transport and pastoral care and they’re kept on during
down times in the season when local workers are made redundant. This has led to some negative
perceptions among the local population towards the RSE scheme.
Nonetheless, RSE workers are well accepted in the local community and their contribution to the
economic and social fabric of Hastings is recognised.
Looking ahead
Continued expansion is forecast for the Hawke’s Bay pipfruit industry in both production and hectares
planted.
167
As one industry informant stated, the industry is already “desperate for labour” and this
demand will only increase when the expanded areas come into production. Apple trees grow quickly
with some varieties harvested within three years of planting. New varieties are coming online outside
of the traditional peak periods which is smoothing out production over the year and providing more
fruit for export.
168
Automation is “in the pipeline” and there are already shifts towards mechanisation, especially among
the large corporates that consider mechanisation a vital part of their future innovation strategy. T&G,
for instance, will use mechanised picking platforms during harvest in 2019. This technology will give
T&G access to a wider range of local workers for orchard work because picking will no longer be
reliant on a worker’s fitness or strength to get up and down ladders. New orchards are also being
designed and planted for mechanised picking and pruning in future. According to an industry
informant, the major positives of automation are reliability and consistency – you can use machines
165
MBIE Regional Economic Activity Web Tool http://webrear.mbie.govt.nz/summary/new-
zealand?accessedvia=hawkes-bay
166
T&G recently won an award as one of NZ’s best primary sector employers
(https://www.beehive.govt.nz/release/awards-best-primary-sector-employers).
167
NZIER (2018).
168
For example Bostock and Mr Apple have joined forces to exclusively grow and market Posy apples for
China. The apple, which is NZ’s sweetest, is harvested early February, ahead of most other NZ varieties
(https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12212371).
93
at any time – however they won’t replace people. Rather automation will require a different type of
(more skilled) worker that can work in a mechanised environment. This has implications for the future
training requirements of both domestic and overseas workers employed in the horticulture sector.
Motueka
Motueka, with a population of 7,606 at the time of the 2013 Census, is the second largest town in the
Tasman District. Tasman District has one of the country’s most rapidly ageing populations, due to
growing numbers of retirees and older lifestyle migrants moving into the district, and younger
residents leaving Tasman for study, travel or work. In 2018, 21.6 percent of the district’s total
population (51,300) was aged 65 years and over.
169
By 2038 the numbers aged 65 years and older will
almost double, and will make up more than 35 percent of the district’s population.
170
The district’s ageing population has a number of social and economic implications. The decline in the
size of the working-age population (15-64 years) may lead to future labour market shortages across
a range of industries. The primary sector already has a relatively older workforce, with 47 percent
aged over 50, and this trend is set to continue. Tasman’s population is forecast to grow by almost
6,000 residents to reach 57,200 in 2030. This growth will require land for residential housing
developments, especially retirement villages, as well as significant investment in local infrastructure
and services including roads, water and wastewater services, and public amenities such as parks and
community centres.
171
Tasman’s economy is driven by primary production (agriculture, forestry and fishing) which
contributes over 13 percent to GDP, and is the district’s largest employer, accounting for more than
21 percent of total employment in 2018. Horticulture and fruit growing, in particular, play an
important role. In 2018 apple and pear growing provided almost 1,400 jobs, accounting for 5.9
percent of the district’s total employment. Outdoor vegetable growing (369), kiwifruit growing (320)
and grape growing (148) combined accounted for an additional 3.5 percent of total employment.
Tasman has significant forestry and logging operations as well as wood processing facilities,
contributing close to 2.5 percent to GDP in 2018, and the district has a buoyant construction industry
linked with growing residential development. Tourism is another driver of economic growth,
employing over 2,500 people and contributing 9.3 percent to the district’s GDP in 2018.
172
According
to one informant, one of the biggest changes in the district over the past decade has been the growth
in tourist numbers and the increasing flow of traffic through Motueka.
The horticulture industry and RSE in Motueka
There are around 340 horticulture and viticulture (H/V) enterprises operating in Tasman, with close
to 6,500ha of land under production or prepared for horticultural use. Pipfruit (28%), grapes (18%)
and kiwifruit (11%) are the main crops produced in the district, with smaller amounts of berries, olives
169
MBIE Regional Economic Activity Web Tool http://webrear.mbie.govt.nz/theme/population-by-age-
group/map/timeseries/2018/tasman/65-years-and-over?accessedvia=tasman&right-transform=absolute
170
Tasman District Council (2018). Tasman’s ageing population.
171
Tasman District Council (2018). Long-Term Plan 2018-2028. Volume 1.
172
Infometrics (2018). Tasman District. Annual economic profile 2018.
94
and vegetables.
173
Expansion of the horticulture industry over the past decade has increased the size
and scale of H/V enterprises as smaller operators have merged with larger corporates, leading to the
progressive disappearance of family-run farms. Industry expansion has also led to the formation of
consortia, such as the Heartland Group, to operate more effectively in both international and
domestic markets.
174
Smaller operations have had to become much more efficient enterprises,
investing in new varieties and new technologies to remain competitive.
With increasing consolidation of the industry, the ownership structure is also changing. Growing
foreign investment is supporting large-scale capital investments in new production facilities (e.g.
packhouse facilities), the development of new orchard blocks, and the acquisition of existing
orchards that are cleared and replanted in new varieties. This development is supporting significant
growth in sectors related to horticulture such as land and land services, transport and distribution,
irrigation and agricultural services.
Alongside industry expansion there has been a growing demand for labour. A survey by NZ Apples &
Pears indicated a labour shortage of more than 1,400 workers for Nelson-Tasman during the 2017-18
season, with the largest numbers required for picking (57%), thinning (24%) and pruning (13%).
175
A
seasonal labour shortage was declared in Tasman District in April 2018 – the first official declaration
since 2008 – and some Tasman growers are concerned they will face another labour shortage in
2019.
176
The District’s low unemployment rate (4.6% in December 2018),
177
coupled with strong
growth in other industries, such as construction and tourism, means horticulture growers are
competing for lower-skilled workers. As smaller family-run farms have merged with larger corporate
entities, their labour requirements have also increased and they have shifted away from a traditional
reliance on local workers, to the use of RSE labour.
In 2017-18 there were 20 RSEs and 750 RSE workers in Tasman, with the largest numbers coming
from Samoa (37%), Vanuatu (36%) and Tonga (24%) and employed for the apple harvest. Informants
held mixed views on RSEs’ engagement with W&I and their efforts to employ New Zealand workers.
According to one informant, RSEs have “become complacent” and assume they have Pacific workers
“as a matter of right now” which means they make minimal efforts to engage local workers. Other
informants held a different view, arguing that it is essential for RSEs to maintain a good relationship
with W&I, and employ local workers where possible, in order to secure their RSE numbers.
For growers located around Motueka it can be especially challenging to find local workers because of
the small size of the community, and most orchards are based away from the township, requiring a
173
Agricultural production statistics June 2017. Retrieved from https://www.stats.govt.nz/information-
releases/agricultural-production-statistics-june-2017-final
174
The Heartland Group includes orchard and packhouse operations (Vailima Orchards, Easton Orchards and
Compass Fruit Packhouse). Apples are exported internationally under the Luvya brand and domestically under
their Kiwifirst brand (http://www.luvyaapples.co.nz/).
175
NZ Apples & Pears (2018).
176
https://www.msd.govt.nz/about-msd-and-our-work/newsroom/media-releases/2018/declaration-
seasonal-tasman-labour-shortage.html; https://www.stuff.co.nz/business/farming/109791562/tasman-apple-
growers-expect-bumper-crop-hope-for-enough-workers-to-pick-them?rm=a
177
MBIE Regional Economic Activity Web Tool
http://webrear.mbie.govt.nz/summary/tasman?accessedvia=tasman
95
daily commute from potential jobseekers.
178
Finding skilled New Zealanders for permanent roles in
orchard development and maintenance work, before RSE workers arrive for the peak harvest period,
was cited as a major challenge for larger enterprises. One RSE noted that the company has been
advertising for several months for a skilled technician to work full-time in the packhouse on an annual
salary of over $80,000. The employer has not been able to fill the position.
Several informants felt the RSE makes an important contribution to the local economy in Motueka,
but the benefits are localised. Large horticultural enterprises have benefited the most as they’ve been
able to invest and expand due to the certainty of RSE labour. This is evidenced by the widespread
development of new orchard blocks (one enterprise currently has 50,000 trees under development to
meet consumer demand in overseas markets) and multi-million dollar investments in new production
facilities. Workers are generally housed in purpose built or RSE-owned accommodation, often on
orchards, and may not spend a lot of time in town.
RSE workers also contribute to the Motueka community in the context of the cultural capital they
bring, as well as their labour. Informants noted there has been a change in local attitudes towards
RSE workers over the past decade. The town’s largely Pakeha population has come to accept the
regular presence of RSE workers in town, and there are growing links between RSE employers, their
workers, and the local Maori community.
Looking ahead
Continued expansion of the horticulture industry in Tasman will bring increasing demands for labour
- both permanent staff and seasonal workers – placing additional pressure on an industry that already
suffers from labour shortages. In future, greater efficiencies are required to manage this expansion.
These may be technological developments, or changes to plant varieties, rather than increasing
numbers of workers. Some growers already make use of automated platforms for summer and winter
maintenance work, and for picking.
179
Other RSEs are experimenting with apple harvesting machines
sourced from the Northern Hemisphere, and new blocks are being planted with machine harvesting
in mind.
Increasing automation will not remove the requirements for labour, but may encourage a shift
towards more skilled workers that can handle and service machinery. The Te Tau Ihu 2077 Regional
Growth Strategy (Top of the South Development Plan) is currently in development, and horticulture
and viticulture will feature strongly in the strategy as key industries that can provide future
employment opportunities.
180
178
https://www.msd.govt.nz/about-msd-and-our-work/newsroom/media-releases/2018/declaration-
seasonal-tasman-labour-shortage.html
179
Ministry of Agriculture and Forestry (2010). Work platforms aid intensive apple orchard sustainability
(http://www.climatecloud.co.nz/CloudLibrary/cc-cs6-eru-apple-vailima-web.pdf).
180
The growth strategy is a joint project led by Wakatu Incorporation on behalf of Nelson City Council, Tasman
District Council, Marlborough District Council, the eight iwi of Te Tau Ihu and business communities.
96
Blenheim
Blenheim, with an estimated population of 31,600 in 2018, is the largest town in the Marlborough
region and widely known as the centre of New Zealand’s wine industry. The region has some
distinguishing demographic and economic characteristics, with one of the country’s most rapidly
ageing populations and one of the lowest unemployment rates.
181
More than 23 percent of the
region’s population is aged 65 years and over, compared to a national average of 15.3 percent. The
population is also largely mono-ethnic with close to 90 percent of people identifying as
European/Pakeha. At the time of the 2013 Census, fewer than one percent of New Zealand’s Maori
population lived in Marlborough.
182
Marlborough’s economy is strong, with the highest forecast employment growth rate (3.4%) in the
country, well above the national average of 2 percent. Almost 3,500 additional workers will be
required between 2017 and 2020.
183
A low unemployment rate (4.2% Dec 2018)
184
coupled with
sustained growth has led to a shortage of labour across most industries and types of jobs (permanent,
technical, seasonal, skilled, semi-skilled, unskilled). The local economy is heavily reliant on migrant
labour, but the region struggles to attract and retain migrant workers. Marlborough is in direct
competition with Nelson, Tasman and Canterbury – all of which are better known as migrant
destinations – and the region has been “dogged by a reputation for low wages”.
185
Two industries make a sizeable contribution to the regional economy: wine and aquaculture.
Aquaculture (comprising marine farming and seafood processing) is located in northern
Marlborough, and the region produces around 62 percent of New Zealand’s Greenshell mussels, 61
percent of salmon and 8 percent of oysters. In 2015, aquaculture contributed 5.7 percent ($162m) to
regional GDP, and provided employment (859 jobs) for approximately 3.7 percent of Marlborough’s
total labour force.
186
Forestry, also located in northern Marlborough, is another driver of growth as
smaller forestry blocks come on stream and commodity prices remain high.
181
Marlborough Chamber of Commerce (2017). Solving Marlborough’s demographic challenges. Blenheim:
Marlborough Chamber of Commerce.
182
MBIE Regional Economic Activity Web Tool
http://webrear.mbie.govt.nz/summary/marlborough?accessedvia=marlborough; Statistics NZ QuickStats
http://archive.stats.govt.nz/Census/2013-census/profile-and-summary-reports/quickstats-about-a-
place.aspx?request_value=14613&parent_id=14612&tabname=
183
Ministry of Business, Innovation and Employment (2018). Short-term employment forecasts 2017-2020.
Retrieved from https://www.mbie.govt.nz/business-and-employment/employment-and-skills/labour-market-
reports-data-and-analysis/labour-market-forecasting/short-term-employment-forecasts-2017-2020-february-
2018/
184
MBIE Regional Economic Activity Web Tool
http://webrear.mbie.govt.nz/summary/marlborough?accessedvia=marlborough
185
Marlborough Chamber of Commerce (2017, p.11).
186
NZIER (2015). The economic contribution of marine farming in the Marlborough region. Wellington: NZIER.
97
The region’s construction industry is buoyant with residential and non-residential developments to
accommodate the region’s growing and ageing population.
187
Significant asset development has
occurred in recent years in Blenheim with the development of recreational assets such as the stadium
and pool complex redevelopments, the ASB theatre complex and the new Blenheim library and art
centre.
Tourism is the region’s third largest industry, accounting for 8.3 percent ($207.7m) of regional GDP
and employing 3,185 people in 2018.
188
The industry suffered a downturn following the Kaikoura
earthquake in 2016, but the industry “got going again” once SH1 reopened in December 2017.
Tourism expenditure grew by 9 percent in the 2018 calendar year, more than double the national
average.
189
Wine-related tourism is integral to Marlborough. The wine tourist spends 52 percent more
and stays six days longer than the average tourist.
190
Aviation tourism is also important with the
Omaka Aviation Heritage Centre (showcasing Sir Peter Jackson’s collection) located in Blenheim.
Picton Port has become a destination for cruise ships, with bus trips departing around the region.
During the 2017/18 cruise season, 112,191 international visitors arrived on 41 cruise ships that berthed
in Picton and spent $18 million in the regional economy, up 80 percent on the previous year.
191
The viticulture industry and RSE in Marlborough
Marlborough’s wine industry (grape growing and wine manufacturing) is the backbone of the region’s
economy, accounting for 19 percent ($477m) of regional GDP in 2015, having grown 300 percent since
2000. The industry directly employed 2,350 people as wine workers in 2016, and indirectly supported
another 2,500 jobs in other sectors including land and land improvements, packaging, agricultural
support services, freight and distribution and accommodation.
192
The industry has undergone a sustained period of expansion and consolidation over the past twenty
years. The area planted in vineyards grew more than 700 percent from 2,600ha in 1997 to 22,270ha
in 2008.
193
By 2018 the total producing area had reached 26,850ha, with 69 percent of the country’s
grapevines located in the region. Marlborough accounts for 73 percent (510) of the country’s grape
growers, 20 percent (141) of wineries, and produces 75 percent (313,000 tonnes) of New Zealand’s
total wine production.
194
187
Marlborough District Council (2018). Blenheim urban area 2018. Housing and business development
capacity assessment. Retrieved from
https://www.marlborough.govt.nz/repository/libraries/id:1w1mps0ir17q9sgxanf9/hierarchy/Documents/Your
%20Council/Environmental%20Policy%20and%20Plans/Nat%20Policy%20Statement%20Urban%20Dvpmt%20L
ist/NPS_Urban_Development_Capacity_2018.pdf
188
https://ecoprofile.infometrics.co.nz/Marlborough%2bRegion/Tourism/TourismGdp;
https://ecoprofile.infometrics.co.nz/Marlborough%2bRegion/Tourism/TourismEmployment
189
https://ecoprofile.infometrics.co.nz/Marlborough+Region/QuarterlyEconomicMonitor
190
NZ Winegrowers (2018).
191
http://www.scoop.co.nz/stories/AK1808/S00516/marlborough-tops-growth-in-spend-by-cruise-visitors.htm
192
NZIER (2017b). Contribution of wine to the Marlborough economy. Retrieved from http://www.wine-
marlborough.co.nz/about-marlborough/economic-contribution-of-the-wine-sector/
193
Marlborough District Council (2015). State of the environment. Chapter 5: Land. Wine Marlborough NZ
http://www.wine-marlborough.co.nz/about-marlborough/key-statistics/
194
NZ Winegrowers (2017, 2018).
98
Large wine growers dominate the region, accounting for an estimated 73 percent of hectares in
production in 2019/20.
195
Contractors are another key feature of the industry. In 2016 there were 17
RSEs who between them serviced over 75 percent of the total vineyard area. RSEs are predominantly
labour contractors although many also offer machinery services. Alongside RSEs there are a large
number of smaller non-RSE contractors (estimated to be around 40 in 2016) that provide labour,
spraying, machine work and harvesting services.
196
Rapid expansion of the wine industry, combined with the region’s low unemployment rate,
competition for labour from other sectors (including retail and construction) and a lack of affordable
accommodation, has led to a shortage of labour for both permanent, skilled jobs (e.g. tractor, truck
and harvest drivers) and for seasonal work.
197
The winter pruning period is particularly challenging
when 55 million grapevines need to be pruned by hand. Pruning has traditionally been completed
over a three-month period between June and August, but with the shortage of labour pruning work
is now starting as early as April, well before leaf fall is completed, and finishing as late as September
well after bud burst. This is an “unplanned natural experiment” out of necessity. Grape growers are
unsure what the long-term implications will be for the vines and for the quality of grapes produced.
RSE workers are an essential component of the summer and winter workforce. In 2016/17 there were
over 2,800 RSE workers employed in Marlborough, including those entering the region on joint
ventures. Of those workers, more than half (55.4%) came from Vanuatu.
Growth of the wine industry has come at the expense of land for arable farming and led to a drop in
food production as land is converted from horticulture, dairying and sheep farming to grapes.
Changes in land use are also placing pressure on the environment. There are increasing demands for
water for irrigation and frost protection and the industry produces a significant amount of waste (e.g.
wastewater, grape marc,
198
chemically-treated irrigation posts, irrigation piping and bird netting).
The wine industry has generated a lot of wealth, but many investors are located outside of Blenheim
and a number of wineries are foreign-owned. The success of the industry has resulted in widespread
investment from overseas companies. Two of the biggest wine companies in the world, Constellation
Brands and Pernod Ricard purchased land in Marlborough between 2012 and 2016, along with
Australian-owned Treasury Wine Estates which was granted consent by the Overseas Investment
Office to purchase 560ha for an estimated $29 million in 2016.
199
195
Druce, T. & Anderson, M. (2016). Marlborough Viticulture Labour market survey. Current and future needs
of the viticulture sector. Retrieved from
https://www.marlborough.govt.nz/repository/libraries/id:1w1mps0ir17q9sgxanf9/hierarchy/Documents/Your
%20Council/Meetings/2016/Regional%20Planning%20and%20Development%202016%20List/RP%26D_Item_1
_16_June_2016-Marlborough_Viticulture_Labour_Market_Survey.pdf
196
Druce & Anderson (2016).
197
Wine Marlborough (2018). Marlborough Recruitment Survey 2018. Retrieved from http://www.wine-
marlborough.co.nz/wp-content/uploads/2018/11/Marlborough-Recruitment-Survey-Report-.pdf
198
Grape marc is the sold remains of grapes after pressing for juice. It contains the skins, pulp, seeds and stems
of the fruit. Approx. 40,000 tonnes of grape marc is produced by the Marlborough wine industry every year.
Grape marc and its leachate have the potential to cause adverse effects on the environment including soil and
groundwater contamination (Marlborough City Council, 2018).
199
https://www.stuff.co.nz/business/89182742/vineyard-land-and-forestry-plantations-attract-foreign-buyers-
in-marlborough; https://www.linz.govt.nz/overseas-investment/decision-summaries-statistics/2016-
12/201620008
99
Among the local community there is some resistance to the industry’s expansion (and its foreign-
ownership), and the associated changes in land use, the annual influx of seasonal workers, and the
pressure this influx places on local housing, infrastructure and services. Informants noted that in the
early years of RSE, the community was not particularly welcoming towards RSE workers. The town
is more receptive now as people recognise the importance of viticulture to the economy, but there is
still some resistance to the annual influx of seasonal labour.
Until recently the majority of RSE workers were accommodated in rental houses in Blenheim which
generated some pressure on the low-cost housing market. This pressure has been eased by the recent
construction of purpose-built RSE worker accommodation supplying 600 beds, and there are plans
for another accommodation complex that will provide a further 240 beds. One informant noted that
bikes are a popular purchase with workers as they are an inexpensive form of transport in an
essentially flat town, and a good way for workers to move between rental houses and vineyards that
are scattered around the district.
Looking ahead
Growth in Marlborough’s wine industry is forecast to continue, driven mainly by an increase in area
planted.
200
Mechanisation is already a feature of the wine industry with machine harvesting, thinning
and canopy management during the summer season. There is also automated technology for winter
pruning, but this is used less frequently because of the stress it places on vines and on the posts and
wires that support them. Some vineyards rotate the use of machines and people for pruning, but it is
unlikely machines will permanently replace people for pruning work. Demand for RSE labour is
forecast to increase as new vineyard plantings come into production. There are no major efforts to
recruit New Zealand workers due to the low unemployment rate, and a perception among local
residents that the viticulture industry is not an attractive employment option.
Marlborough is, however, reaching its capacity in terms of land available for planting. Approximately
5,000ha of commercially viable, productive land remains in Marlborough. Assuming continued
consumer demand from domestic and international markets, and yield growth, modelling suggests
the region may reach land capacity by 2025, and supply limits by 2028.
201
Wine technology
202
is a
growing area and, according to one informant, could be an important future direction for the
industry, as selling wine technology to overseas markets may become more lucrative than wine.
200
NZIER (2018).
201
NZ Winegrowers pers comm. March 2019.
202
Wine technology incudes winery design, winery technology, laser plumbing (cooling), tank control software
systems, vineyard technology, waste water, and frost technology.
100
Roxburgh
Roxburgh, with a population of 522 at the time of the 2013 Census, is a small town in the Teviot Valley,
Central Otago District, and the smallest community included in the RSE Impact Study. Teviot Valley
is a ribbon community located on either side of SH8, alongside the Clutha River, approximately 30
minutes south of Alexandra, two hours west of Dunedin and two hours north of Invercargill. Roxburgh
is Teviot’s main town and retail hub. The town has an ageing population, with almost 34 percent of
people aged 65 years and over at the time of the 2013 Census, more than twice the national average
of 14.3 percent. Roxburgh is also largely mono-ethnic with more than 91 percent of the local
population identify as being of European/Pākehā ethnicity.
203
Pastoral farming and horticulture are the mainstays of the economy. Pipfruit and summer fruit are
the area’s main horticultural crops, and berries are also grown commercially.
204
Tourism and retail are
becoming increasingly important to the local economy. Communities in Teviot have been revitalised
with the opening of the Clutha Gold and Roxburgh Gorge cycle trails in 2013. Both trails make a
significant contribution to the area’s economy with local businesses benefiting from the increased
profile and foot traffic. In 2015 over 14,000 trail users accessed the Roxburgh Gorge trail and almost
8,000 trail users visited the Clutha Gold trail, generating combined revenues of more than $1.25
million.
205
The success of the trails has had flow on effects; businesses including cafes and
accommodation that are busier because of the cycle trails are, in turn, attracting other visitors that
are not cycling the trails but are passing through on SH8 to/from Dunedin.
206
Teviot Valley property
prices are increasing, with growing interest in the area from buyers coming from other parts of Otago
and Southland, and new house builds are having a flow-on effect into the local construction
industry.
207
The Teviot Valley has relatively few services and social infrastructure. Roxburgh has a rest home,
medical centre and pharmacy, a community police officer, a petrol station, grocery store, theatre and
town hall. The district has one primary school and Roxburgh Area High School. Growing
centralisation of services in nearby Alexandra has resulted in the closure of some services in
Roxburgh. Most notably, there are no banking facilities or money transfer operators (MTO) in
Roxburgh for workers to send money overseas. Constraints to business development in and around
Roxburgh include shortages of skilled labour, the small size of the local market, and the time, distance
and transport costs to other markets and suppliers.
208
Central Otago’s low unemployment rate (2.5%
in December 2018),
209
coupled with the steady out-migration of Teviot’s young people for tertiary
203
2013 Census QuickStats about Roxburgh http://archive.stats.govt.nz/Census/2013-census/profile-and-
summary-reports/quickstats-about-a-
place.aspx?request_value=14992&parent_id=14990&tabname=&sc_device=pdf
204
https://www.aworldofdifference.co.nz/x,964,713,0/teviot-valley.html
205
MBIE (2016). Ngā Haerenga NZ Cycle Trail evaluation report 2016. Research and Evaluation Unit, Evidence,
Monitoring and Governance. Wellington: MBIE.
206
https://www.thenews.co.nz/news/cycle-trails-help-local-economy/
207
https://www.stuff.co.nz/business/industries/81998468/teviot-valleys-upswing-in-popularity-sees-real-
estate-rise
208
Roxburgh and Teviot Valley Community Plan (2011).
209
https://ecoprofile.infometrics.co.nz/Central%20Otago%20District/Employment/Unemployment
101
study and employment in other towns, is a challenge for those businesses seeking permanent
workers, including local horticultural enterprises.
The horticulture industry in Central Otago
Horticulture and fruit growing are an important contributor to the regional economy, contributing
4.5 percent ($48m) to regional GDP in 2018.
210
Central Otago is the country’s southernmost, and one
of the youngest, wine regions and over the last 25 years has developed an international reputation
for excellence, particularly in the production of pinot noir. Growth of the region’s viticulture industry
has been supported by foreign investment, and has had important flow-on effects – those involved
in land and land services, agricultural services, tradespeople, machinery operators, surveyors,
planners and engineers “have made a good living from the new work generated.”
211
Central Otago is
New Zealand’s third largest apple producing area with exports totally over $30 million in 2017,
212
and
is the country’s largest cherry growing region, producing 85 percent of the country’s export crop.
Cherry exports are focused on a narrow seasonal window around Chinese New Year (January-
February). Currently two-thirds of fruit produced are exported and one-third sold on the domestic
market over Christmas.
213
The region’s H/V industries are unique in their widespread use of backpackers to meet their seasonal
labour needs. Over 6,300 seasonal workers were employed across the region in 2017/18, with
backpackers accounting for 57 percent of the seasonal workforce. Local seasonal staff, students and
jobseekers were the second largest group with more than 1,180 workers (19%), followed by RSE
workers (959 workers, 15%). The horticulture and viticulture sectors also employed over 600
permanent staff, an increase of 105 permanent positions since 2014/15.
214
Despite RSE workers making up a relatively small component of the seasonal workforce, they are
considered the “backbone” of both the horticulture and viticulture sectors due to the reliability and
stability they bring to the workforce. This is in contrast to backpackers that are a fragile component
of the labour market. Backpackers are becoming increasingly “fickle” – working for shorter periods
and with a propensity to jump between horticulture and viticulture employers in search of higher
wages, whereas RSE workers provide a consistent labour supply year after year.
The H/V industries in Central Otago are highly seasonal, with significant peaks and troughs in their
demands for labour. The busiest months are November to April, with peak labour demands of 4,700
workers in January. This is the peak harvest period for cherries, and also a busy time for grape growers
with summer pruning work. Labour numbers in January are ten times that of the lowest month of
210
https://ecoprofile.infometrics.co.nz/Central%20Otago%20District/Gdp/Structure
211
Perkins, H.C., MacKay, M. and Espiner, S. (2015). Putting pinot alongside merino in Cromwell District,
Central Otago, New Zealand: Rural amenity and the making of the global countryside. Journal of Rural Studies,
39:85-98 (p.90).
212
Roxburgh and Teviot Valley Community Plan (2011).
https://www.centralotagonz.com/PicsHotel/CentralOtagoRTO/Brochure/Final%20Roxburgh%20and%20Teviot
%20Valley%20Community%20Plan%202011.pdf
213
MBIE (2018). Investment opportunities in the New Zealand cherry industry. Part of the emerging growth
opportunities, food and beverage information project. Wellington: MBIE.
214
Druce Consulting (2018). Central Otago labour survey: Horticulture and viticulture. Alexandra: Druce
Consulting)
102
June (475 workers).
215
The highly seasonal nature of the H/V industries, and the large differential
between the peaks and troughs of labour demand, presents some challenges especially around the
provision of seasonal worker accommodation.
The horticulture industry and RSE in Roxburgh
Horticulture is one of the key drivers of the local economy in Roxburgh and the surrounding Teviot
Valley. In 2017/18 there were 645 planted hectares in Teviot,
216
and 26 growers accessing seasonal
labour. Pipfruit is the dominant crop, accounting for 54 percent of the total planted hectares. Cherries
are the next largest crop (19% of planted ha) followed by apricots (17% of planted ha). Most of the
industry’s growth in recent years has been driven by cherry plantings, with a 105 percent increase in
cherry plantings from 60ha in 2014/15 to 123ha in 2017/18.
Teviot Valley’s fruit industry is heavily reliant on seasonal workers, due in large part to area’s low
unemployment rate. In 2016/17 approximately 1,180 seasonal workers were engaged in the Teviot
Valley. Of those, the majority (60%) were backpackers. The area employed 260 RSE workers (22%)
and more than 200 New Zealanders – a mix of locals and non-local workers. Most workers are
employed between February and April for the summer fruit and apple harvest and undertake roles as
fruit pickers (59%) or packers (40%). Smaller numbers are kept through winter for pruning (13%) and
other maintenance and development roles (5%).
217
Most Teviot Valley horticulture enterprises that utilise RSE workers, access their labour through
Seasonal Solutions Cooperative Limited (SSCO). For the 2018/19 season it was estimated there were
around 300 RSE workers, employed by SSCO, that were working in Roxburgh and Ettrick over the
peak cherry and apple harvest period. The vast majority of SSCO’s RSE workers employed in Teviot
are from Vanuatu, with very small numbers from Fiji and the Solomon Islands. RSE workers are
housed in onsite orchard accommodation around Roxburgh, with a small number accommodated at
the Commercial Hotel in town or living in rental properties. Local residents have raised concerns that
it is becoming more difficult to buy properties in Teviot as many are now used for seasonal worker
accommodation, however these concerns appear unfounded. A 2017 survey of horticulture
employers in Teviot found that 75 percent of seasonal workers were housed in onsite orchard
accommodation, camp grounds or backpacker hostels. Only a small percentage (13%, a total of 83
workers) were located in houses that were not onsite.
218
A greater concern relates to growing rates of freedom camping by backpackers working on local
orchards, and associated pressures on local infrastructure such as public bathrooms and rubbish
services. Freedom camping is especially problematic over the peak periods in January – February. We
were informed that when a local motor camp was up for sale for $450,000 in 2018, no growers were
215
Ibid.
216
Teviot Valley, with 645ha, has the highest number of planted hectares by sub-region in Central Otago,
ahead of Cromwell (597ha) and Alexandra (645ha) (Druce Consulting, 2018).
217
It should be noted these are seasonal roles and workers can fill more than one role. Druce Consulting
(2017). Support and integration of seasonal workers in the Teviot Valley. Report to the Teviot Valley
Community Development Governance Group. Alexandra: Druce Consulting.
218
Druce Consulting (2017).
103
interested in purchasing it for seasonal worker accommodation. This response was disappointing for
residents because of the amount of freedom camping in public places (such as local swimming spot
Pinders Pond). There are also concerns regarding the risks to the industry from freedom camping
(and the lack of sanitary facilities) and associated staff hygiene issues in the packhouse. In an export
driven market, this is a major concern because of the risks to export certification e.g. GLOBALGAP.
219
The small communities of Roxburgh and Ettrick, with a combined population of around 700 residents,
experience an influx of almost 1,200 seasonal workers each year, almost doubling the size of the
resident population. Perhaps because of the scale of the influx, the local community makes a
concerted effort to welcome and integrate seasonal workers through a range of local community
events and other strategies, such as the annual Cherry Chaos event, and the development of a
community hub in Roxburgh. In a 2017 survey of seasonal workers (backpackers and RSE workers) in
Teviot Valley, 97 percent of respondents said they would recommend the Teviot Valley as a great
place to work because of the friendly people, the work that’s available and the relaxed pace of life.
220
One of the biggest challenges for RSE workers living in Roxburgh is the limited availability of shops
and services, especially the lack of banking facilities or a MTO, such as Western Union, to send money
overseas. RSE workers have to drive to Alexandra to access banking services or Western Union. This
costs them both time and money; workers pay $80 each time they hire a 10-person van to drive to
Alexandra to send money home, or to shop at the New World supermarket. Variable mobile phone
coverage while working in Teviot and high costs associated with Wi-fi access were also raised as
issues. RSE workers spend money in the local Supervalue supermarket, and at the sole petrol station,
but beyond that their economic contribution to Roxburgh is relatively limited. Unlike backpackers,
RSE workers don’t frequent the local cafés. Due to the centralisation of many services and shops in
Alexandra, RSE workers will drive to Alexandra to make any major retail purchases, or they shop
online. Nevertheless, there is widespread acknowledgment among Roxburgh’s local residents of the
essential role RSE workers play in the local horticulture industry and the importance of horticulture
to the town’s economic prosperity.
Looking ahead
There is marked confidence in the horticulture sector in Central Otago, with fruit plantings projected
to grow by 32% (583ha) to almost 2,500ha in 2021/22. Growth will come primarily from 465ha of
planned new cherry plantings (an increase of 56% over five years) where the land has been secured,
plant stock ordered and land development is underway.
221
The majority of this planting will occur in
and around Cromwell, where land for cherries is in “hot demand” and buyers are paying as much as
$500,000 per hectare.
222
219
Ibid.
220
The survey involved 12 (80%) of the 15 employers of seasonal workers in the Teviot Valley (Druce
Consulting, 2017).
221
Druce Consulting (2018).
222
https://www.stuff.co.nz/business/farming/109721652/cherry-orchards-still-hot-property-despite-
miserable-season
104
Teviot Valley has the lowest projections for growth in Central Otago, with plans to increase plantings
by approximately 20ha (3%) up to around 665ha in 2021/22. This expansion will mainly be in cherry
plantings and some increases in pipfruit.
223
Local growers have indicated that any future expansion
plans are predicated on the continued and increasing supply of RSE labour. The industry’s growing
reliance on seasonal workers, has been identified as a “key fragility in the horticultural sector and
wider Teviot Valley business communities...If the supply of seasonal labour was to dry up, it would
have a significant [negative] economic impact on the Valley”.
224
Across the region the H/V industries are making significant investments in new technology, and this
trend is set to continue. In horticulture, the investment is primarily in automation of packhouse
facilities. The CAJ Van der Voort packhouse in Ettrick, for example, has recently been upgraded with
some of the latest in New Zealand and Dutch pipfruit sorting and packing technology, to cope with a
projected 50 percent increase in the business’s pipfruit volume over the next few years.
225
In viticulture, mechanical harvesting already takes place, with around 350ha harvested by machines
in 2017/18. This is predicted to increase to over 500ha by 2021/11.
226
Several grape growers now use
machines for leaf lucking, largely due to the difficulties of accessing seasonal labour. Leaf plucking is
performed in January, at the same time as the peak cherry harvest. According to an industry
informant, grape growers are struggling to compete with cherry orchards that pay higher wages.
Vineyards are increasingly looking to automation to reduce their reliance on labour, and future
plantings are being undertaken with automation in mind (e.g. automated tractors for spraying).
Plantings of new fruit varieties, with higher yields,
227
are expected to extend the growing season at
both ends and lengthen the harvest period. For cherry growers, this is to capture the Chinese New
Year and domestic Christmas markets.
228
As the region’s climate becomes warmer, grape growers
are experimenting with plantings at higher altitudes (pinot grapes need a cool climate) which will also
extend the season. A change from conventional styles of planting to higher density plantings, for
cherries and apples particularly, may allow faster picking and less climbing. This may lead to the use
of automated picking platforms and robotic pickers further down the track. The influence of
automated technologies will start to be felt across the region’s H/V industries in the next four to five
years.
229
223
Druce Consulting (2018).
224
Druce Consulting (2017, p.4).
225
http://www.thenews.co.nz/news/orchardist-upgrades-packhouse/
226
Druce Consulting (2018).
227
New apricot and cherry plantings under a new orchard planting system have shown potential yields of up to
24 tonnes per hectare in their third and fourth year from planting, compared with average yields of 15 tonnes
per hectare from fully mature trees grown in conventional configurations (Horticulture New Zealand, 2018).
228
https://www.stuff.co.nz/business/farming/109721652/cherry-orchards-still-hot-property-despite-
miserable-season
229
Druce Consulting (2018).
105
