The Government’s changes to the Recognised Seasonal Employer scheme will go a long way to supporting the horticulture industry to achieve its goal of doubling the farmgate value of horticultural production by 2035, says Horticulture NZ.

The Government has announced a range of policy changes to the RSE scheme including lifting the pause on accommodation cost increases and allowing a capped increase to be applied, allowing employers to average out RSE workers’ minimum 30 hours per week over four weeks and adjusting the application of the 10 per cent above the minimum wage requirement.

“We are making changes that can be delivered quickly, reduce costs and compliance for employers, and improve flexibility for RSE workers,” says Immigration Minister Erica Stanford. 

“Our Government is committed to increasing the number of RSE workers over time in line with industry demand, while balancing the availability of New Zealanders and accommodation for workers.

"That’s why the cap on the number of workers is increasing by 1,250 to 20,750 for the 2024/25 season."

HortNZ CEO Nadine Tunley. says the RSE scheme has served New Zealand growers and the Pacific well for over 17 years.

"And helped boost the economies of Pacific countries thanks to the repatriation of wages, we believe these changes make sense and strike the right balance,” says Nadine.

Other changes include employers being required to pay workers an average of 30 hours a week over four weeks.

The pause on accommodation cost increases will be lifted and the requirement to pay RSE workers 10 per cent above the minimum wage will only apply to experienced workers, recognising their productivity.

“The RSE scheme is central to our relationships in the Pacific and has delivered tremendous benefits to everyone involved,” says Foreign Affairs Minister Winston Peters. 

“New Zealand is committed to supporting Pacific priorities. That is why these changes include broader opportunities for skills development, greater flexibility in visa settings, and pay based on experience.”

“New Zealand growers will welcome the improved flexibility for RSE workers to return home in the event of family emergencies, as well as the ability to move amongst regions and employers a little more easily," says Nadine.

“The horticulture industry strongly supports hiring New Zealanders first, however, to reach our potential, we must attract and retain many more motivated and skilled people to work in horticulture, from both New Zealand as well as overseas, especially during seasonal harvest peaks. The RSE scheme will continue to play an important role in this.”

HortNZ is particularly pleased about the changes to the accommodation and remuneration requirements, says Nadine.

“These were only brought in by the previous Government as temporary measures during Covid-19 when RSE workers were able to come to New Zealand under Managed Isolation and Quarantine," says Nadine.

"This reset will be appreciated by our growers. 

“Allowing employers to average out RSE workers’ minimum 30 hours per week over four weeks will provide certainty for workers and better reflects the weather dependent nature of our industry."

Nadine says adjusting the application of the 10 per cent above the minimum wage requirement so it only applies to more experienced RSE workers also makes sense. 

“We believe in the same pay for the same jobs in horticulture," says Nadine.

"However, in addition to minimum wage, pay rates for many visa categories have been moving towards the median wage, even if the jobs are not median skills. This has created a pay disparity between New Zealand workers and migrant workers.”

The horticulture industry has long been advocating for the pause on accommodation cost increases to be lifted, as these were put in place back in 2019.

“Since then, there has been five years of considerable inflation and growers have been unable to adjust their recovery costs," says Nadine.

“The changes show this Government understands the challenges growers in the RSE scheme have been facing and these adjustments will ease the pressure.

“Our growers support ensuring all RSE workers are supported well with pastoral care when they are in New Zealand and that commitment remains as strong as ever.”

HortNZ welcomes other changes to the RSE scheme including RSE visas enabling multiple entry to New Zealand during a season, allowing RSE workers to undertake training and skills development not directly related to their role and greater flexibility for RSE workers to move between employers and regions. 

“These are welcome additions and something we understand Pacific countries have been asking for,” says Tunley.

“HortNZ has been reinforcing this in our discussions with the Government. The reciprocity element of training and skills development is essential and something our growers have a focus on.

“HortNZ will continue to work with the Government on policy around RSE workers to support our ability to harvest fruit and vegetables and also strengthen our relationships with the nine Pacific RSE countries and communities.”

Further changes are:

• Improved flexibility for RSE workers to move between employers and regions.
• Workers’ visas will be multi-entry during a season.
• RSE workers will be able to undertake training and skills development not directly related to their role.
• RSE workers will no longer have to be screened for HIV, aligning them with other temporary visa applicant requirements.
• Timor-Leste will be included in the scheme.

Most of these changes will be in place in early-September.

Further time will be needed to set up the infrastructure and processes on the ground for Timor-Leste to participate. The cap increase fulfils a commitment from the coalition agreement between National and Act.

“These changes are just the start. The next phase of our work programme will consider substantive, longer-term options to further improve the wider RSE system and worker welfare settings,” says Stanford.