The Ministry of Social Development's excess labour list contrasts starkly with the day-to-day reality hospitality employers say they face.
Hospitality employers have been voicing the plight with labour shortages for more than 18 months.
Desperate bosses have launched a petition calling for the Government to consult the industry on its proposed immigration reset that aims to focus on opening the borders to high skilled migrants, over low skilled ones as their struggle to find local replacements for skilled migrant labour continues.
The industry is even planning a two minute coordinated ‘lights out’ protest on July 6 to bring attention to the issue.
Yet, cafe workers, kitchen hands and cooks feature prominently across regions on the Ministry of Social Development’s labour oversupply list.
The oversupply and undersupply lists were introduced by the government in October as indicators of roles that had an oversupply of New Zealand job seekers.
If an employer wants to hire a migrant worker, they must ensure the role they are filling has an undersupply of local job seekers.
The lists were introduced as a temporary measure and were to be reviewed in early 2021.
When asked how these lists were created, MSD employment general manager Hugh Miller said in a statement the department used regional jobseeker data and regular engagement with employers to update the lists.
The lists are reviewed every three months.
But industry groups say in the eight months the lists have been around, neither they nor their members have been consulted.
"It's highly likely prices of baked goods will have to go up to encourage more people into the industry or to cover the cost of labour. Instead of one skilled worker, businesses will hire two lower skilled workers to get through the workload required to keep prices down." – Kevin Gilbert, Baking Industry Association
Hotel Council Aotearoa director James Doolan says his association has not been consulted and the oversupply lists do not represent reality.
“Our members have been telling us for a while now the oversupply lists don't match what's happening on the ground,” Doolan says.
"New Zealanders aren’t really applying for these hotel and restaurant jobs, even with wages increasing significantly above pre-Covid levels."
Before the lists were launched, employers looking to hire migrants had to prove they couldn’t find a suitable local candidate for their role, by listing the vacancy.
If they were unsuccessful, MSD would issue a skills match report to support a work visa application.
"We don't know how that list is created, so we're hoping to meet with them to better understand this." – Marisa Bidois, Restaurant Association
However, as of October 2020, MSD no longer issues a skills match report to support an employer’s work visa application for a migrant worker for jobs listed on the oversupply list.
If an employer is seeking a migrant worker for a role on the undersupply list, they will not need the endorsement of MSD through the skills match report when applying for the worker’s visa.
The original pre-October 2020 rules still apply for all other jobs that are not on MSD’s oversupply or undersupply lists.
The Restaurant Association's Marisa Bidois says she too has not been consulted by MSD on their oversupply list and has raised concerns with the department about how it quantifies and qualifies roles it claims have an oversupply of labour.
"There are other industries as well, who don't feel the lists represent what is happening on the ground," Bidois says. "We don't know how that list is created, so we're hoping to meet with them to better understand this."
Last month Goodness Gracious cafe owner Greg Cornes told Newsroom that of the 15 job ads he had put up over the past two months, he had heard back from only two people.
Similarly, restaurateur Krishna Botica told Newsroom she’s been forced to close one of her five restaurants on Mondays so its staff can work at her other restaurants.
Wellington hospitality worker Ella says employers have struggled to find local workers because of the low pay and difficult working conditions.
Ella took up a second job with the local DHB to give her more financial stability. "It's a convenient, flexible job. But it's not sustainable – for health reasons, social reasons, financial reasons.”
Bidois says the industry is trying to help itself through solutions such as programmes supported by MSD to hire their clients into hospitality roles and upskill and train workers already in the industry.
But it's a drop in the ocean, as the programme is currently training just 110 workers in the industry that has more than 136,000 workers.
"This is part of the solution but not the whole solution because there is a shortfall of 20,000 workers over the next few years without migrant workers," Bidois says.
Last week Immigration Minister Kris Faafoi announced working holiday visas and supplementary seasonal employment extensions to bring employers greater certainty while border restrictions remain in place.
However, the decision does not to extend the essential skills work visa again, despite increasing the duration of visas for jobs from six months to 12 months, disappointed the hospitality sector, as many of its workers are on essential skills visas.
Immigration NZ’s recent visa review didn’t go far enough, Bidois says.
“We’re in a period of severe shortage.
“The situation is beyond critical and is seriously impacting our businesses from keeping their doors open. We need something now that’s going to give businesses the skills they need to operate now, and migrants are the answer, but we’ve been hard pressed to convince the Government of this."
Baking Industry Association president Kevin Gilbert says neither the association nor its 300 members have been consulted by MSD for the over-supply/under-supply list.
But according to MSD, there is an over-supply of baking factory workers, confectionary, sugar mill and grain mill workers.
Gilbert says it's been difficult to find local workers to join the industry, which has created a shortage of skilled workers.
“Our members have been telling us for a while now the over-supply lists don't match what's happening on the ground." – James Doolan, Hotel Council Aotearoa
He says there is also a disconnect between what skill levels there are available, and what employers actually need.
Gilbert says baking has been on the skills shortage list for at least 10 years but the border closure has exacerbated this.
"I'm not sure how MSD got their data, they certainly didn't get it from us," Gilbert says.
ANZ chief economist Sharon Zollner says Covid exposed how reliant the economy has been on migrant labour and supply constraints will crimp growth more this year than a lack of demand will.
With migration severely restricted and global disruptions of imported goods very persistent, she says the economy will see inflation rise over the year ahead.
Gilbert says without migrants, businesses will be forced to either close or completely change the way they operate, through greater automation or a focus on making fewer products at premium prices.
"It's highly likely prices of baked goods will have to go up to encourage more people into the industry or to cover the cost of labour.
"Instead of one skilled worker, businesses will hire two lower skilled workers to get through the workload required to keep prices down."
