The Country
  • The Country home
  • Latest news
  • Audio & podcasts
  • Opinion
  • Dairy farming
  • Sheep & beef farming
  • Rural business
  • Rural technology
  • Rural life
  • Listen on iHeart radio

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • Coast & Country News
  • Opinion
  • Dairy farming
  • Sheep & beef farming
  • Horticulture
  • Animal health
  • Rural business
  • Rural technology
  • Rural life

Media

  • Podcasts
  • Video

Weather

  • Kaitaia
  • Whāngarei
  • Dargaville
  • Auckland
  • Thames
  • Tauranga
  • Hamilton
  • Whakatāne
  • Rotorua
  • Tokoroa
  • Te Kuiti
  • Taumurunui
  • Taupō
  • Gisborne
  • New Plymouth
  • Napier
  • Hastings
  • Dannevirke
  • Whanganui
  • Palmerston North
  • Levin
  • Paraparaumu
  • Masterton
  • Wellington
  • Motueka
  • Nelson
  • Blenheim
  • Westport
  • Reefton
  • Kaikōura
  • Greymouth
  • Hokitika
  • Christchurch
  • Ashburton
  • Timaru
  • Wānaka
  • Oamaru
  • Queenstown
  • Dunedin
  • Gore
  • Invercargill

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / The Country

Work visa changes cuts both ways

By Brent Melville
BusinessDesk·
16 Jul, 2020 01:06 AM5 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Immigration Minister Iain Lees-Galloway. Photo / Mark Mitchell

Immigration Minister Iain Lees-Galloway. Photo / Mark Mitchell

Changes to work visas focused on getting more Kiwis into jobs are a double-edged sword, hindering recruitment while making it more difficult for business and industry to hang onto skilled, productive workers, say immigration specialists.

Immigration Minister Iain Lees-Galloway last week announced a six-month extension to temporary work visas – a move that provided employers with a measure of certainty that they would have access to workers in the short term and the ability to plan for the future.

But Immigration New Zealand also cut the 12-month lower-paid essential skills work visas in half to six months and quietly abandoned the Australian and NZ standard classification of occupations - ANZSCO - standard, reverting to a pure remuneration threshold as a condition for entry.

Yesterday, the agency added several occupations to the list of 44 skills that fall under the skills level exception test. New entrants will include aged or disabled carers, bicycle mechanics, drillers and nursing support workers and announced updated criteria for essential skills work visas,

The move towards using a median wage threshold to decide how long someone can stay on an essential skills visa was greeted positively by BusinessNZ, which had long considered ANZSCO as clumsy, reliant on interpretation by immigration officials and "not fit for purpose" by modern business standards.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

Under those occupational standards, Immigration NZ approved a total of 197,785 entries for the year to June 2020. While this was well down on the 242,366 for last year as a result of Covid-related border shutdowns, the problematic nature of the categories was reflected in the number of 'not recorded' approvals where no standard was met. That was well over half of all approvals, at 123,339 versus 162,145 in the 'non category' last year.

Rachel Simpson, manager for education, skills and immigration at BusinessNZ, said the bigger issue was in ensuring a flow of "otherwise unavailable" workers critical to supporting the economic recovery.

"We are short of a lot of the critical skills necessary to our recovery and companies which are prepared to invest need the confidence to know they can access specialist expertise from overseas."

Advertisement
Advertise with NZME.

Nor did the country need "kneejerk reactions" to protect local jobs during labour market shortages where companies could end up losing skilled workers, she said.

Sensible approach needed

"Regardless of who is in the role, whether it's a New Zealander or not, it takes a while to train and get up to speed," so access to an international pool is important, she said. "We just need a sensible approach."

Aaron Martin, principal immigration lawyer at NZ Immigration Law, said another implication of the revised entry standards was that, effective from July 27, the 'low skilled' baseline will be bumped up from $21.68 per hour under the ANZSCO skills equivalent level to $25.50 per hour.

Martin said that meant mid-skilled people eligible for a three-year visa under current rules, would be assessed as being a low skilled worker if paid below $25.50 and only able to get an 18-month visa that has to be renewed every six months, provided the labour market test was met.

"The dollar figure shouldn't be a proxy for skills as salary doesn't always reflect a person's importance to a business, their job ability, or even where they work. You might end up in the bizarre situation that someone on the West Coast, doing the same thing as a worker in Auckland, will end up on the six-month merry-go-round versus qualifying for a three-year visa, simply because of regional salary differences."

Additionally, he said employers who want to fill lower paid roles will also need a skills-match report from the Ministry of Social Development before employing a migrant worker.

"That will likely prove to be frustrating, time consuming and expensive, because it's going to lock employers into a continuous round of recruitment processes and engaging with MSD."

Intended as a deterrent

Martin said outside the hassle factor, there was also a financial implication, with people and businesses having to make repeated applications at $495 apiece.

Ultimately, he said the changes were intended to deter employers from using migrants rather than New Zealanders to fill low-skilled positions by putting applications in the "too hard" basket.

Martin said the government position presumed that employees were a "replaceable commodity," when in reality the issue was more about transferable skills. "An unemployed airline pilot isn't going to necessarily take up a job at Countdown."

Advertisement
Advertise with NZME.

"Nor does it acknowledge that increased numbers of unemployed does not correspond to increased numbers with the skills and qualifications employers need. Employers are looking for particular areas of knowledge or experience and that's not necessarily going to be readily available just because we've had an increase in unemployment."

The other issue, he said, was that Kiwis weren't compelled to take up jobs, and could go onto an unemployment benefit.

"There is no threat to a person's benefit if they don't take a job that they could readily do – so government is now denying businesses the ability to get a work visa for a valued employee, but won't compel a New Zealander to actually take the job."

Save

    Share this article

Latest from The Country

The Country

A Kiwi shearer wins the race, but the Scots claim the prize

30 Jun 02:30 AM
The Country

The Country: How farmers, growers are faring after floods

30 Jun 01:47 AM
The Country

Storm-battered regions brace for more severe weather

30 Jun 01:46 AM

Engage and explore one of the most remote places on Earth in comfort and style

sponsored
Advertisement
Advertise with NZME.

Latest from The Country

A Kiwi shearer wins the race, but the Scots claim the prize

A Kiwi shearer wins the race, but the Scots claim the prize

30 Jun 02:30 AM

Toa Henderson faced his international test match shearing debut at Lochearnhead Shears.

The Country: How farmers, growers are faring after floods

The Country: How farmers, growers are faring after floods

30 Jun 01:47 AM
Storm-battered regions brace for more severe weather

Storm-battered regions brace for more severe weather

30 Jun 01:46 AM
'Benefits are amazing': Farmers bitten by the bokashi bug

'Benefits are amazing': Farmers bitten by the bokashi bug

30 Jun 12:28 AM
There’s more to Hawai‘i than beaches and buffets – here’s how to see it differently
sponsored

There’s more to Hawai‘i than beaches and buffets – here’s how to see it differently

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP