BusinessNZ head Katherine Rich says some employers are having to pay over and above local workers to do the same job. Photo: Supplied
Removing the median wage requirement from the Accredited Employer Work Visa (AEWV) will make it much easier and affordable for businesses to fill skilled and unskilled roles, say employers.
Immigration Minister Erica Stanford yesterday revealed the changes, which will take effect from March.
BusinessNZ chief executive Katherine Rich said the vast majority of businesses used immigration responsibly and as a last resort to source skills that were not available in New Zealand.
She said it was not a matter of being free to import cheap labour, as most of the jobs available required some level of skill and experience.
But she said paying migrants a median wage - which was higher than the wage paid for New Zealanders - was a cost barrier that was not only inflationary, but made businesses uncompetitive.
"In some cases employers were having to pay over and above local workers to do the same job, which you can imagine creates some friction as well as inflation."
Retail NZ chief executive Carolyn Young said retailers also had limited labour pools to draw on and sometimes needed migrants to fill minimum wage jobs, when there were no New Zealanders available to take those jobs.
"The need to pay median wage has been a barrier to using migrants to fill these roles," Young said.
Rich said the changes to the AEWV were a step in the right direction, but more work was needed to make the immigration system fit for purpose.
"We foresee that demand for immigration will pick up again and businesses need to be able to rely on an immigration system that does not have unnecessary barriers and bureaucracy, and is timely and efficient."
Employers and Manufacturers Association senior policy advisor Joanna Hall said the removal of the median wage requirement was timely for employers needing to remain competitive.
"We'd like to see an AEWV system that is well designed for all users and doesn't impose undue compliance processes and costs onto employers."
Hall said further changes were needed to enhance New Zealand's international attractiveness as a country that welcomed talented and qualified migrants.
"These changes are positive steps, and we look forward to further moves by the government to help employers secure the skilled migrants that will increase the country's economic wellbeing," she said.
Hospitality NZ chief executive Steve Armitage said the industry had long advocated for the removal of the median wage requirements, "as it was an arbitrary benchmark equating pay rates with skills that are needed".
He said removing the 21-day advertising obligations would also ease the potential for processing delays, particularly over busy trading periods, such as summer.
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