Immigration settings tightened to restrict migrant workers

AEWV constricted; Language Test, W&I referrals return; Residence reduced

Venkat Raman
Auckland, April 7, 2024

Immigration Minister Erica Stanford has just announced a series of changes to the immigration policy to stem the massive inflow of migrant workers and reduce the risk of New Zealanders going out of work.

With immediate effect, roles coming under the Accredited Employer Worker Visa (AEWV) Scheme will oblige employers to follow minimum threshold skills and experience for the posts for which work visas are sought. Applicants sought for low-skilled Level 4 and Level 5 roles must satisfy minimum English language requirements.

Most importantly, they must seek the approval of Work and Income to ensure that locals are not available for the roles they seek offshore.

Some of the other major changes include the reduction of continuous stay of these migrant workers from five to three years.

Ms Stanford also announced that she is disestablishing the Franchisee Accreditation Category but said that these businesses will be able to apply for work visas through ‘the standard, high-volume or triangular employment accreditation.’

“These steps improve the integrity of the AEWV Scheme and help to prevent migrant exploitation, following recommendations from the recent Bestwick review, which found serious issues with the AEWV processes,” she said.

The Bestwick Review

Jenn Bestwick (Board Chair at Tonkin+Taylor and Tertiary Education Commission), renowned for her role in governance was commissioned by the Public Service Commission to review the AEWV Scheme introduced by the Labour government in June 2022.

Her Report, released on February 27, 2024 said that the changes introduced by Immigration New Zealand (INZ) to reduce visa processing times and respond to the extraordinary demand from employers had reduced the number of checks.

But she said that the decision to change the settings to cater to the immediate need to access migrant workers was reasonable.

“When INZ staff did raise concerns about the risks, leadership at INZ failed to pay adequate attention. Between 27 July 2022 and 30 June 2023, the visa scheme was exposed to an increased risk of exploitation by unscrupulous agents or employers. INZ has made, and continues to make, a number of changes to improve the administration of the work visa scheme service,” she said in her Report.

Ms Stanford described the immigration settings as ‘critical for rebuilding the economy,’ and said that immediate changes to the AEWV Scheme will ensure that New Zealand attracts the requisite skills while reducing the vulnerability of migrants to exploitation.

Attracting high-skills

“The government is focused on attracting and retaining the highly skilled migrants such as secondary teachers, where there is a skill shortage. At the same time we need to ensure that New Zealanders are put to the front of the line for jobs where there are no skills shortages,” she said.

Ms Standford said that the net migration in 2023 stood at 173,000, which was unsustainable and that the changes will help New Zealand get the skills needed.

Many of the changes were introduced by the Labour government under Helen Clark. These were either abolished or modified by the John Key administration between 2008 and 2017 and further dismantled by the Labour government in 2022.

Ms Stanford agreed that many of the changes that she has now introduced are not new, ‘but rather a return to pre-pandemic settings that better balanced the needs of business with the wider interests of New Zealand.’

“The AEWV settings must facilitate the right mix of skilled temporary migrants to address genuine skill and labour shortages, support rebuilding the economy, and help manage numbers and pressures on core infrastructure, such as schools, housing, and the health system,” she said.

Ms Standford that the policy of granting work rights to dependent children on family residence visa applications is likely to be implemented in the middle of the year.

“Migrant high school leavers awaiting the outcome of a family residence application will be granted work rights later this year,” she said.

Green List Revised

The Green List, which was introduced a few years ago to identify critical areas of the economy which were dependent on the foreign workforce has also undergone a revision.

Ms Stanford said that several job descriptions will disappear from the Green List.

“The government is also not progressing with plans to add 11 roles to the Green List such as welders, fitters and turners. The Work to Residence pathway for bus and truck drivers is also closing to new applicants, as the shortages of drivers reported when this was established have been filled.

“These changes are the start of a more comprehensive work programme to create a smarter immigration system that manages net migration, responds to our changing economic context, attracts top talent, revitalises international education, is self-funding and sustainable, and better manages risk,” she said.

Additions to the Green List

Six roles, corresponding to nine ANZSCO occupations, will still be added to attract and retain the talent and skills needed.

Straight to Residence

Aviation Engineer (Avionics, Aeronautical, Aerospace Engineer), Naval Architect (aka Marine Designer), ICT Database and Systems Administrator, Mechanical Engineering Technician, Aircraft Maintenance Engineer.

Work to Residence: Corrections Officer.

Deletions from the Green List

Driller’s Assistant, Earthmoving Labourer, Earthmoving Plant Operator (General), Line Marker, Machine Operators not elsewhere classified, Mechanic’s Assistant and Road Traffic Controller.

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