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Home / Bay of Plenty Times

'War for talent': Australian headhunters target Bay workers amid labour crisis

Carmen Hall
By Carmen Hall
Bay of Plenty Times·
2 Jul, 2021 06:00 PM7 mins to read

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Back to the future. In 2013 Craig McCord at Tauranga Plumbing spoke about the labour skills shortage which is still continuing today. Photo / NZME

Back to the future. In 2013 Craig McCord at Tauranga Plumbing spoke about the labour skills shortage which is still continuing today. Photo / NZME

Aussie headhunters are targeting Kiwi workers amid a deepening skills crisis that is costing one Bay business hundreds of thousands of dollars.

The scenario has been described as a ''war for talent'' with higher pay and lower housing costs on the cards for those prepared to move.

1st Call Recruitment managing director Phill Van Syp. Photo / NZME
1st Call Recruitment managing director Phill Van Syp. Photo / NZME

Phil Van Syp, of 1st Call Recruitment, said opening up the transtasman bubble had created problems.

''There are headhunters from Australia racing around New Zealand trying to steal people. We had an agency ring us the other day to do a coalition.

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''They are paying a fortune; meanwhile, we can't get people.''

All its branches across New Zealand were in dire need of personnel to fill roles and the problem was industry-wide.

''All agencies are seeing a shortage of candidates and the roles are growing... it's crazy. Getting people is like trying to find a needle in a haystack.''

Van Syp said the building industry was going nuts and tradies were snapped up instantly but it also had jobs for unskilled workers with the right attitude.

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Priority One chief executive Nigel Tutt. Photo / NZME
Priority One chief executive Nigel Tutt. Photo / NZME

Priority One chief executive Nigel Tutt said he had no doubt the area would lose talent to Australia.

''With the borders shut we have little way of replacing skilled workers despite efforts to train more people here.''

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He said the region had some natural advantages in the ''war for talent but I expect it will be a tough time ahead for businesses needing staff''.

NZ Certified Builders chief executive Grant Florence. Photo / NZME
NZ Certified Builders chief executive Grant Florence. Photo / NZME

NZ Certified Builders chief executive Grant Florence said people had always been approached to work in Australia but the situation had gotten worse.

''It has become more prevalent right now, unfortunately. They are looking for the skilled people we have not got enough of which is adding to the problem.

''We are talking about all parts of the building sector from whether it's project managers, architects or skilled tradespeople so it's a real challenge.''

Tauranga Chamber of Commerce chief executive Matt Cowley. Photo / NZME
Tauranga Chamber of Commerce chief executive Matt Cowley. Photo / NZME

Tauranga Chamber of Commerce chief executive Matt Cowley said head hunting - by both domestic and international rivals - was hitting construction companies as well as the professional services sector.

''A number of business owners and executives are being dragged into operations to cover for the staff shortages.''

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Tauranga Hardware and Plumbing managing director Craig McCord said the situation had created a ''perfect storm'' with all trades struggling to keep up with demand and find skilled workers.

Tauranga Hardware and Plumbing managing director Craig McCord. Photo / File
Tauranga Hardware and Plumbing managing director Craig McCord. Photo / File

He had one van off the road and was still waiting for a new staff member from South Africa to get clearance from immigration to come to New Zealand after getting caught up in Covid red tape.

Tauranga Hardware and Plumbing had eight to 10 apprentices but other providers involved in their training were ''stretched'' which was concerning, he said.

This combined with border closure rules and a generation of not training apprentices meant the sector was facing ''tough times''.

This time last month McCord said the company was turning away significantly more work than he was comfortable with - equating to hundreds of thousands of dollars.

Brill Bricklaying Ltd Eddie owner Eddie Brill said bricklaying was a hard trade and finding workers was a struggle.

''It is physical, there is heavy lifting and we get dirty. Don't get me wrong, I have trained apprentices but they aren't lining up for jobs that's for sure - it's too easy for them to sit at home and play PlayStation.''

Regency Painters & Decorators owner Darran Richardson said he was booked through to spring and summer.

Decorating did not appeal to a lot of young people, he said.

''It's not very glamorous work and you get messy.''

BCITO chief executive Toby Beaglehole. Photo / Supplied
BCITO chief executive Toby Beaglehole. Photo / Supplied

BCITO chief executive Toby Beaglehole said nationally about 66,000 people were needed to fill gaps in the vertical construction section, which included building and sub-trades.

The data came off modelling from the Workforce Information Platform (WIP) that estimated another 28 per cent of workers were needed to add to the 232,000 strong workforce.

Meanwhile, brick and block laying was one of the trades with the most critical shortages nationwide - it needed 6250 people, including 250 in the Bay of Plenty.

Painters and decorators were the most in need in the Bay of Plenty with another 550 required - nationwide it was 18,600.

Beaglehole said BCITO was about to hit its own milestone to help the shortage.

''We're on the verge of hitting an all-time high of 20,000 apprentices – and it's clear there's continued and increasing demand for a whole lot more.''

Master Plumbers, Gasfitters & Drainlayers NZ chief executive Greg Wallace said the industry was in crisis and customers would pay the price.

He said the construction industry was booming alongside home renovations that had put a strain on tradies. The plumbers, gasfitters and drainlaying sector alone needed about 3000 more qualified tradespeople.

Increased freight costs on imported goods had also driven up prices further, he said.

''We can't keep up with the current workload let alone the future workload so that means some jobs are pushed aside because the tradespeople are just so busy.''

Tauranga Master Builders Rik Flowerday said some products had 20-week shipping delays while local timber mills were struggling to cope.

Other costs continued to climb alongside fierce competition for qualified staff and poaching.

Chrissie Aratema, who works at NZME, said her daughter has waited months for someone to repair a leak in the roof of her Rotorua rental property.

She said it had been a struggle to get someone to take a look at the job, give a quote and tell them exactly what was wrong.

''How are you supposed to know what needs to be done and how much it's going to cost?''

Ministry of Social Development Bay of Plenty regional commissioner Mike Bryant. Photo / File
Ministry of Social Development Bay of Plenty regional commissioner Mike Bryant. Photo / File

Ministry of Social Development regional commissioner Mike Bryant said the number of people receiving Jobseeker Support in the Bay of Plenty was falling.

Jobseekers were finding opportunities in a variety of industries including hospitality, roofing, construction, administration, kiwifruit and forestry.

There are also multiple apprenticeship opportunities, he said.

Data from the ministry shows there were 10,182 work-ready job seekers in the Bay of Plenty in the first quarter of 2021 to March compared to 11,466 in the last quarter of 2020.


What is WIP?
* The Workforce Information Platform is a forecasting tool that displays national and regional gaps and surpluses within the construction and infrastructure labour market.
* Work on this tool has been led by BCITO.
* The tool will rely on a mix of historical data relating to supply and demand, forecast demand data based on identified significant construction and infrastructure projects, and economic forecasting models.

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