Tuesday, 18 October 2022 11:55

New median wage set to hit farmers in the pocket

Written by  Jessica Marshall
The Government is raising the wage threshold for migrant workers and some farmers are unhappy. The Government is raising the wage threshold for migrant workers and some farmers are unhappy.

Moves by the Government to raise the wage threshold for migrant workers have some farmers up in arms.

Last week, Immigration Minister Michael Wood announced that a new median wage of $29.66 per hour would be adopted into the immigration system from 27 February next year.

“The Government is focused on moving New Zealand to a higher wage economy, increasing the skill level of migrant workers, and encouraging employers to offer competitive wages and improve career pathways for New Zealanders,” Wood said.

“Updating the median wage thresholds regularly is necessary to ensure the Government is delivering on its immigration rebalance goals and that existing policy settings are maintained in line with market changes.”

However, Federated Farmers immigration spokesperson Richard McIntyre says the decision will hit everyone in the wallet.

He says the majority of new migrant farm staff are now being employed on the Accredited Employer Work Visa, which has an hourly rate of pay requirement tied to the median wage.

“Farmers are faced with paying almost $30 an hour for international staff needed to perform the basic tasks on farm,” McIntyre says.

He says all industries are struggling to find New Zealanders willing and able to do the job, but farm employers in rural areas have it tougher.

“Farmers need people in gumboots on the ground to put cups on cows and drive tractors so that they are able to focus on the more technical and management roles on farms.”

McIntyre says Federated Farmers has been working in partnership with the Ministry of Social Development to deliver the ‘Get Kiwis on Farm programme’.

He says the programme means new workers get an industry standard employment contract and the correct gear so they can work safely and comfortably on farm.

“But it’s still not enough when there are thousands of agriculture work vacancies.

“Our concern is that never-ending wage increases will add additional costs not just to farm employers but also the downstream and upstream industries that service agriculture and businesses in the wider economy, driving up input costs and reinforcing a wage-price spiral that will drive inflation even higher,” McIntyre says.

The current wage threshold will be in place until the new median wage is incorporated in February 2023.

More like this

Rural backlash over plan to cut police staffing

Federated Farmers North Canterbury president Bex Green says two public meetings held this week should have made it loud and clear that rural families and businesses are concerned about proposed staffing changes at NZ Police.

Editorial: Getting RMA settings right

OPINION: The Government has been seeking industry feedback on its proposed amendments to a range of Resource Management Act (RMA) national direction instruments.

Featured

$10,500 for future ag leaders

The future of New Zealand’s agricultural sector grew a little brighter, with the South Island Agricultural Field Days (SIAFD) now accepting applications for its scholarships through Lincoln University, offering $10,500 to up to six exceptional students who are poised to become the next leaders in the primary industries.

Editorial: We are Trumped

OPINION: Nothing it seems can be done in the short term to get Donald Trump to change his mind about removing the unfair 15% tariffs that he’s imposed on New Zealand exports to the US.

National

Machinery & Products

» Latest Print Issues Online

Milking It

Fatberg

OPINION: Sydney has a $12 million milk disposal problem.

Synlait snag

OPINION: Canterbury milk processor Synlait's recovery seems to have hit another snag.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter