Matt Cowley is the chief executive of the Tauranga Business Chamber. Photo / Mead Norton
Matt Cowley is the chief executive of the Tauranga Business Chamber. Photo / Mead Norton
COMMENT:
In May last year, I wrote that the Government would hamstring our economic recovery if its new migrant worker visa process became cumbersome, bureaucratic and frustrating.
Unfortunately, this appears to have come true.
It is unbelievable that, when so many employers - public and private – are facing criticalworker shortages, we've made it so difficult to get skilled workers in to help our economy and public services.
In a time when there is intense global competition for workers, we're sending the message that overseas workers shouldn't bother with New Zealand; it's too hard, and therefore they must not be welcome. When in reality, our local employers are crying out for the opposite.
Employers need to become accredited to be eligible to hire an overseas worker. They also need to apply for a job check to ensure the role they want to fill cannot be done by New Zealanders, which can take a while.
Once they're eligible, we've heard employers say it can take another 40-50 days to gain government approval.
New Zealand's worker shortage is the most common issue facing Kiwi employers. Surely there's a better way.
The shortage is being made worse by our record net migration loss. Yes, a record number of Kiwis, typically skilled and working-age, are permanently leaving our economy.
The Government says it intends to make structural changes to New Zealand's labour market, by restricting migrant workers, so the competition for the constrained supply of our workforce lifts wages overall.
Unfortunately, the intense competition for local labour, coupled with the added competition from public employers, has become a key driver for businesses to increase their prices to cover the higher wage costs.
Matt Cowley says New Zealand's worker shortage is the most common issue facing Kiwi employers. Photo / Getty Images
As a local example, the expansion of the Bay of Plenty Regional Council-operated bus services, and the establishment of council-owned rubbish collections, have created intense demand for heavy vehicle operators.
This has meant both councils and transport companies have had to increase their fees to pay for higher wages, on top of other increased costs.
With cruise ships arriving shortly, there will be even more demand for licensed passenger coach drivers. Without coach drivers, our tourism experience will be significantly impacted.
During a period of high international inflation, the Government's immigration bottleneck has only added to the home-grown inflation.
Many business owners tell us they're conscious of how their teams are covering additional roles and shifts because they cannot fill their vacant positions.
A chef is a prime example of a profession that is typically dependent on skilled migrant workers. It's now common for restaurants to limit their hours so they don't wear out their chef.
Training up local talent is a long-term solution, but it doesn't help us now. It is inappropriate to put inexperienced personnel into roles requiring experience, without proper support.
Kiwi business owners want to employ locals, but they're not here... or they're not role-ready.
Again, surely there's a better way.
Matt Cowley is the chief executive of the Tauranga Business Chamber.
