New Labour Scheme Costly For Winegrowers

New Labour Scheme Costly For Central Otago Winegrowers

Members of the Central Otago Winegrowers Association (COWA) have expressed concern about the economic impact and timeframe of the Recognised Seasonal Employer (RSE) scheme coming in to effect at the end of next month (September 30).

This week was the first time the Government consulted with Central Otago Winegrowers about the implementation of the new scheme and the ceasing of seasonal work permits being issued beyond 30 September. COWA believes the costs to the average Central Otago vineyard of becoming an RSE will in many cases be prohibitive and the timeframe to do this is too short with the new season due to commence.

All vineyards in the Central Otago region employ labour on a seasonal basis dependent on the volume of crop, which is reliant on the weather conditions throughout that year. It is estimated the region will need well over 2,000 seasonal workers for the 2007/08 year on a temporary basis rather than continuous employment spread throughout the year.

Martin Anderson president of the Central Otago Winegrowers Association said the members were outraged with the lack of consultation regarding the scheme and the timing for implementation. “We are gravely concerned about the way this scheme has been foisted upon us without any prior local consultation and feel that we are being forced to adopt new legal procedures implemented as an overreaction to an employment situation outside our district,” he said.

The Central Otago wine industry is typified by a large number of small, family owned vineyards, which often lack the resources available to larger corporate style vineyards in other wine producing regions such as Martinborough, Marlborough and Hawkes Bay.

The RSE scheme has been designed by the Government solely for the horticulture and viticulture industries to ensure that New Zealanders are put first, that employers have strong incentives to train and upskill the domestic workforce and that unemployed labour is utilised first. For the Central Otago region, however, unemployment is non-existent and vineyards need to use seasonal workers and/or backpackers with work permits.

“This is the heart of the problem”, said Mr Anderson. “With full employment in the region we are unable to fill the gap by employing New Zealanders needing jobs in the area; we therefore have to source our labour force elsewhere,“ he added.

The scheme requires vineyards to meet criteria such as paying a bond of $3,000, paying half the travel costs for workers flying to New Zealand and guaranteeing pay for at last 240 hours averaging 30 hours per week.

09 August 2007

ENDS

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