Farmers to pay more for essential staff when the borders open

Sunday, 13 February 2022

Immigration Minister Kris Faafoi says the Government has taken steps to support the primary sector and its workforce requirements since the beginning of the Covid-19 pandemic. (File photo)

Farmers, desperate for staff, will end up paying essential workers up to $40 an hour when the borders re-open.

The border opens to vaccinated skilled workers on March 13, but they must be earning one and a half times the median wage.

Federated Farmers national intensive winter grazing spokesperson Jason Herrick said the requirement would push wages up from $27 an hour for foreign staff now, to $40 an hour.

“It’s just another attack on farmers and the primary sector,'' Herrick said.

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Southland Federated Farmers sharemilker chairman Jason Herrick talks about employment in Southland's rural sector. [File video]

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“Don’t get me wrong, it’s great that they are opening the border finally to let these workers in, we need in excess of about 4000 of them. But I'm afraid farmers may have to choose to carry on under-staffed through another calving and another winter rather than to pay those wages, and that’s a real concern for their mental health.’’

While farmers were being paid a bit more for some of their products they were also incurring huge increases in costs, and they could not afford to pay someone $40 an hour, Herrick said.

“… and what do they do when their other workers want that wage matched?

Agriculture Minister Damien O’Connor and Immigration Minister Kris Faafoi were asked about the pay jump and what impact that might have on the primary industries.

O’Connor deferred to Faafoi to answer the questions, and he referred them to the Ministry of Business, Innovation and Employment.

Faafoi, when asked why he would not answer questions given he is the Immigration Minister, replied: “The Government has taken steps to support the primary sector and its workforce requirements since the beginning of the Covid pandemic and since border measures were put in place to keep New Zealand safe. This includes visas extensions and more than 8000 border exceptions for the primary sector.’’

Where sectors have needed skilled migrant labour, the Government had put in place settings exceptions under conditions reflective of the labour skills concerned, such as median wage requirements, he said.

“The Government has put the 1.5 times the median wage requirement in as a control on flows while Covid-related public health measures are still in place; as the border still has restrictions attached to it.

“In July, that 1.5 times the median wage requirement will lower to workers earning at least the median wage when the Accredited Employer Work Visa scheme comes in.'’

Further advice on workforce class exceptions and additions to government approved lists are being prepared for Border Ministers to take decisions on shortly to ensure seasonal workers, critical workers who don’t meet the 1.5 times the median wage test, and other priority travellers could continue to come to New Zealand until the border was fully re-opened, he said.