AEWV - Under Scrutiny

This week our new (and yes we have had a few recently) Immigration Minister has been pushed in to admitting that the Accredited Employer Work Visa scheme, needs to be reviewed. However the review is being undertaken of how INZ is delivering it, which is actually a smart move. There has been a deluge of news report of exploited migrants with 10, 20 or more Accredited Employer Work Visa holders being crammed in to tiny houses, with no work, no food and no way out. Initially our Minister (Andrew Little) claimed that there was nothing wrong with the system and exploitation happens but only at the margins, however with media pressure mounting as well as pressure coming from our industry, the migrant community and even other employers, he has had to fold.

The key here however is that the review is being undertaken on the way the policy is delivered, with INZ now coming under scrutiny by the Public Services Commission to identify where there might be some areas to improve on. The irony is that we already know what the issue is and have known for some time.

What is the problem and why is it happening?

The issue is relatively simple although it has very significant consequences for the migrants who get caught up in it. When the AEWV policy was announced, it was heralded as means to stomp out migrant exploitation by creating a system where INZ was able to monitor and regulate employers, stripping them of their ability to recruit migrants, if they were misbehaving. The problem however is that in order to monitor the employer, you have to first get them on to the scheme. So when this was rolled out and as I had predicted, INZ was always going to take a fairly light-touch approach to the process. You have to get all the lambs in the pen, before you can start cutting off their tails.

In addition to this, when the policy started, alongside our borders reopening after two and half years of closure, the built-up demand meant that there was a huge rush of employers wanting to bring skills across. The vast majority of these were legitimate, genuine and with real jobs. That surge however created massive backlogs and processing speeds were the inevitable victim. That then created a huge media problem for the former Minister (Michael Wood) who was batting away spears and arrows from employers, industry groups and his political opponents. So what to do?

In late 2022, the Minister called in the efficiency ninjas, to try and fix the issue and get the wheels moving - with any means necessary. The answer to that was a relatively uninspiring call to simply stop looking too closely at applications. If an employer declares on their form, that they are genuine, sustainable and have jobs to fill…give them accreditation. When the job checks come through, take them at face value - basically approve as much as you can, as quickly as you can, by taking as many short-cuts as you can.

They did and of course it didn’t take too long for the less than genuine employers to work this out, and climb on board. These groups realized that they could become accredited, without much scrutiny, secure job check tokens for jobs that don’t exist and then go out to the migrant market and sell the tokens. The applicant pays a fee, they secure a Work Visa and end up here, living in one house with 50 of their neighbours from back home. No job, no money and no options. I would add the caveat that whilst a lot of these applicants have been genuinely disadvantaged, there are a few who have engaged in this process, knowing there is no job and using this process as a means to gain entry in to NZ. You won’t hear to many media stories about them however.

It is so poorly managed that even employers who are being investigated for this kind of behaviour are still able to apply and secure these valuable job tokens, leading to even more exploitation. In short its a mess, but a mess created not specifically by INZ, but because of the need to look good politically.

How big is the problem and can it be fixed?

Whilst the media have locked on to this issue with vigor over the last few weeks, and it would appear on the surface that the exploitation is widespread, it does still remain relatively small in comparison to the number of Work Visas being issued. It is hard to put a specific number on it, but we know, purely based on those volumes that the overwhelming majority of employers are doing the right thing and have genuine jobs for genuine applicants.

These issues also tend to be focused on specific skill sectors and industries. The lower the level of skill involved with a job offer, the greater the degree of potential exploitation. The scammers (employers and employment agents) in these cases, tend to target lower-skilled applicants, from countries where English is either a second language or not spoken at all and areas where there are lower employment opportunities. The construction sector is also a popular choice, because it is widely know that we have had a construction boom and the jobs are easier to fabricate for the purposes of the job check.

For applicants with a good skill level, coming to NZ with a reasonable degree of English and who have access to a wider pool of information, it is much harder to dupe them and the rogue employers know this all too well.

Even if the problem remains comparatively small, it is a problem we need to fix. We will never eliminate migrant exploitation, but we can easily work to reduce it (and significantly). I spoke with very senior officials at INZ earlier this week on this very issue and there is a real willingness to clean things up - however there is also a somewhat slavish loyalty to the Minister in charge, which up until this point has been the source of the issue. INZ needs to be directed by the current Minister to apply the rules as they were written.

The actual AEWV policy itself is pretty robust and gives immigration officers latitude to question new employers seeking accreditation, to challenge the genuine nature of the job and to say no, when it needs to. The criteria for accreditation and job checks are relatively stringent, but only if the actually applied and that is the key - any instructions to take a “light touch” need to be removed and now. I am not suggesting however that they clamp down entirely but just use the discretion they have to weed out these rogue employers at the start. If they never become accredited, they will never be able to exploit anyone. As soon as that starts to happen, word will spread the problem will largely resolve it self. None of the owners of these scam companies have any interest in being interrogated by INZ.

What to look out for?

If you are making the move and wondering whether you might get caught up in all of this, the answer is, its highly unlikely - particularly if you are reading this post and doing your homework. However it does pay to have a basic understanding of what some of the risk signs are, when the offer of employment you are looking at, might not be all that real.

• Be wary of an offer that comes without an interview. If you are offered a job that you have never interviewed for, something is amiss.

• Who is making the offer? Check out your future employer, their history, what they do and how long they have been doing it for.

• Be extra cautious with triangular recruitment - this is where you are employed by Company A, who then outsources you to Companies B through to Z to do the work.

• Seek advice from someone in New Zealand who can check out whether the offer is real and your potential employer is on the level.

Again, for most people coming here with a good level of skill and experience, the chances of being exploited or ending up in that situation are very minimal and for the most part, we are welcoming in tens of thousands of very happy migrants, with real jobs and the potential to build a new life here. Unfortunately it only takes a few sour lemons to potentially spoil it for everyone else.

What happens next?

The review of the AEWV will need to be swift, because this has the potential to become a political nightmare for the Government who are already struggling to hold on to any hope of winning at the next election. My prediction is that internally INZ will be told to get back to processing applications fully and within the rules, take a closer look at everything and do what they should have been doing all along. Externally this will be painted as a “socks-up” exercise for the department, with new procedures being introduced to combat the rogue employers and I doubt any heads will roll - unfortunately the head that should roll, lost his job a couple of months back.

I don’t mind too much how it is spun by INZ or the Minister, as long as it is fixed, because these issues are not what New Zealand is about and they represent a very small group of rogue operators out to make a quick dollar, but damaging our overall migration brand.

We are always very careful to check and double check the job offers that clients bring us, not only for the risks of the employer being less than genuine but also because we want to make sure they are getting the best deal (it helps when you have some of the best employment lawyers in the country close to hand as well).

If you are considering the move and have been reading the recent stories, relating to the above, just remember that it is not the norm and there are tens of thousands of very happy migrants, living working (really working) and loving New Zealand.

Until next week.