Observation (CEACR) - adopted 2020, published 109th ILC session (2021)

Employment Service Convention, 1948 (No. 88) - New Zealand (Ratification: 1949)

The Committee takes note of the supplementary information provided by the Government in light of the decision adopted by the Governing Body at its 338th Session (June 2020). The Committee proceeded with the examination of the application of the Convention on the basis of the supplementary information received from the Government and the social partners, as well as on the basis of the information at its disposal in 2019.

The Committee notes the observations made by Business New Zealand (BusinessNZ) and the New Zealand Council of Trade Unions (NZCTU).

Articles 1 and 3 of the Convention. Contribution of the employment service to employment promotion. In its previous comments, the Committee requested the Government to continue to provide information on the measures taken to achieve the best possible organization of the employment market and the results of the measures implemented, including the impact of the welfare reforms on the quality of employment services and employment promotion. The Committee notes that the Government reiterates its commitment to improving well-being and living standards in the country, including through the development of an Economic Strategy and an Employment Strategy, the latter setting out the Government’s vision for the labour market and providing a roadmap for a series of action plans focused on improving employment outcomes for population groups experiencing poor labour market outcomes (Māori, Pacific people, youth and persons with disabilities). Consultations on the reform to the vocational education and welfare systems have started in 2019 and the Ministry of Sustainable Development is currently working through the May 2019 recommendations of the Welfare Expert Advisory Group on resourcing and strengthening the provision of employment support through the welfare system. The Government further points to the Social Security Amendment Act (No. 2) 2015, as well as the Social Security (Extension of Young Persons Services and Remedial Matters) Amendment Act 2016, which uses community-based providers to deliver wrap-around support to help young people into work, education or training. It also informs about the functioning of several welfare programmes including the Mana in Mahi programme targeted towards young people aged between 18 and 24 years, as well as to the NEET service that is addressed to 16- and 17-year-olds that are not in education, employment or training. The Government highlights that its priority consists in supporting people to achieve meaningful and sustainable employment, while also recognising the value of unpaid work, such as caring for children and other family members and community-based volunteering. The Committee notes that in its supplementary report, the Government refers to several measures taken to respond to the economic impact of COVID-19, including wage subsidies accessible to the majority of employers, leave support and immediate access to benefits. The Government further indicates that the Regional Skills Leadership Groups established in 2019 have been supplemented with additional interim offices to ensure that the immediate labour market and skills needs of the regions are met.

The Committee further notes that BusinessNZ observes that Work and Income, the public employment service, is perceived by many employers as providing job applicants who are less qualified and reliable than those found elsewhere and that employers choose instead to advertise their own job vacancies. BusinessNZ also voices concerns as to the employability of individuals trained solely in training institutions and lacking on-site experience, pointing to problems inherent in the proposals to reform the education and training system. In its additional observations, BusinessNZ maintains that the manner in which wage subsidies have been established does not necessarily assist smaller employers in difficult situations as a result of the pandemic. The NZCTU expresses concern that the welfare reforms are focused on reducing the number of beneficiaries and not on the quality and sustainability of employment. It considers that more emphasis should be placed on a set of active labour market employment policies. In their additional observations, the NZCTU alleges that some employers might have used benefits without complying with labour legislation. In view of the concerns raised, the Committee requests the Government to provide updated detailed information on the nature and impact of measures taken to achieve the best possible organization of the employment market, particularly in the framework of the measures taken to address and mitigate the effects of the COVID-19 pandemic. The Committee also requests the Government to provide information on any measures taken or envisaged to render the public employment service more appealing to employers in the country, so as to ensure that the employment service contributes to the fullest extent possible to the achievement and maintenance of full and productive employment.

Articles 4 and 5. Cooperation of workers’ and employers’ representatives. The Committee previously requested the Government to indicate the manner in which consultations are held with regard to the matters covered by the Convention. The Committee notes the Government’s indication that advisory committees and working groups are set up for high-level projects. It welcomes the detailed information provided on the Welfare Expert Advisory Group (WEAG) established in May 2018 to provide advice and recommendations on the future of New Zealand’s social security system in consultation with key stakeholder groups (Iwi and Māori, Pacific Peoples and persons with disabilities. The Government also refers to the consultation group for the temporary migrant worker exploitation review, composed of representatives from business, unions, migrants and international students, as well as to the New Zealand Disability Strategy Revision Reference Group, the majority of whose members are persons with disabilities. The Committee notes, however, that according to BusinessNZ, the WEAG seems to have focused more on the provision of social welfare than employment, with no direct employer input in the expert group. The NZCTU, for its part, acknowledges the establishment of the WEAG, but suggests that there are failures in implementing its recommendations. It also considers that more focus should be given to active labour market employment policies and commends the Government’s efforts to set up a tripartite working group on the Future of Work. In view of the observations of the social partners, the Committee requests the Government to provide information on the implementation of the recommendations provided by the WEAG as well as information on the manner in which the Government cooperates with workers’ and employers’ representatives in the development of the employment service policy and other matters covered by the Convention.

Article 6(b)(iv) and (c). Migrant workers. In its previous comments, the Committee requested the Government to provide information on the measures taken to facilitate any movement of workers from one country to another. The Committee notes the Government’s indication that it has developed and proposed changes to immigration settings to ensure that the immigration system supports the country’s economy and labour market, including better matching the skills needed with those available through immigration, ensuring that temporary work visas are granted for genuine regional shortages and investing in immigration compliance capability. The Government is currently considering changes to employer-assisted visas with focus on employers placing more nationals into jobs and ensuring that temporary migrant workers are not exploited in employment and have wages and working conditions consistent with national values. There is also an in-depth policy and operational review ongoing to better understand temporary migrant worker exploitation and identify impactful and enduring solutions, as well as many other initiatives related to migrant exploitation (increased immigration fees and levies, migrant sex workers research and the restoration of the right to prescribed rest and meal breaks for migrant workers through the 2018 amendment of the Employment Relations Act). The Government also informs that it has replaced the employer-assisted post-study work visa with a post-study work visa providing open work rights for international students of a certain qualification level. The Committee notes that in its supplementary report, the Government refers to the “Visitor Care Manaaki Manuhiri (Assistance for Foreign Nationals Impacted by COVID-19) Programme” that consists of in-kind assistance to migrant workers that experience serious financial hardship and are unable to meet their basic needs. Furthermore, the Government has allocated $50 million to address temporary migrant exploitation, as it is estimated that migrants are at increased risk during the pandemic. Measures include an improved system to report exploitation and an information and education action plan for migrants and employers on their rights and obligations.

The Committee notes the observations of BusinessNZ, indicating that the migrant worker situation is currently in a state of flux, with many employers unable to find the skilled or unskilled workers they need. It further suggests that while the Government’s focus on employing nationals is understandable, migrant workers are urgently needed and accessing their skills is proving difficult given the current immigration delays. BusinessNZ adds that ,while more cases of migrant exploitation are currently before the courts, the majority involve migrant exploitation by migrant employers who are unfamiliar with or reluctant to observe the country’s laws. BusinessNZ refers in its additional observations to the difficulties that employers have in finding workers in agriculture and horticulture, sectors that depend highly on immigration due to border restrictions. Taking due note of the information provided and in view of the concerns expressed by BusinessNZ, the Committee requests the Government to provide information on the impact of the immigration system reform on the movement of workers from one country to another and on the employment of migrant workers in practice particularly in the framework of the measures taken to address and mitigate the negative effects of the COVID-19 pandemic. The Government is requested to provide statistics on the employment situation of migrant workers, including those benefitting from a post-study work visa.

Finally, the Committee invites the Government to provide updated information in its next report on the impact of the global COVID-19 pandemic on the implementation of the measures taken or contemplated to give effect to the provisions of the Employment Service Convention, 1948 (No. 88).