A leading automotive industry body says the Government’s changes to key visa categories does little to address the chronic labour shortage facing the sector.
On Tuesday, immigration minister Michael Wood announced the skilled migrant visa would be resuming to help fill workforce shortages from mid-November along with parent resident visas.
But the Motor Trade Association says it doesn’t help the sector because it’s very hard for automotive roles to qualify.
Wood says the Government has been “listening closely” to the concerns of businesses who are reporting staff shortages a major concern.
Many businesses have approval to hire migrants but are finding it difficult to recruit internationally in a constrained labour market, he says.
“We are resuming the Skilled Migrant Category under the current settings to help attract more workers. The first selection will be at 160 points, and subsequent selections at an increased threshold of 180 points, to better align with the future direction of the category and our rebalance goals.
“Over 12,000 international migrants have applied for 511 different occupations across New Zealand since the Accredited Employer Work Visa opened. The Skilled Migrant Category provides a pathway for retaining the majority of these much needed skills in New Zealand permanently, strengthening our nation’s resilience to global shocks and economic security into the future,” Wood says.
“Getting the long-term settings of the category right is important for New Zealand’s future economic security, and ensuring that we can attract and retain high skilled talent.
“At the same time as resuming selections, we are commencing consultation on a proposed new system that will future proof the category and will further complement the new Green List and Highly Paid residence pathways,’ Wood says.
The previous system restricted the number applications which were progressed through a planning range which meant only 40% of Skilled Migrant Category applications were processed in 2019.
Proposed changes include removing the planning range, so that all applications that meet the criteria will be processed.
It will also include a more simplified points system and a transparent eligibility threshold and offer several ways for people to demonstrate their skill level.
The proposed changes will also see a faster route to residence for very highly skilled migrants.
Alongside the Skilled Migrant Category, there will also be reduced barriers to access the Parent Category Visa, including increasing the number of parent resident visas granted each year and reducing the income thresholds.
‘Little help’ to automotive sector
The Motor Trade Association advocacy manager Brian Anderton says the news brings “little cheer” to the automotive industry.
“We know the labour shortage is the number one issue keeping member businesses up at night.
“We simply do not have the labour market supply to meet the skills in demand. We have raised this with immigration officials, and recently with Minister Michael Wood,” Anderton says.
“Many automotive businesses are at least one staff member short and in a lot of cases, several members short.”
MTA says that the sector is doing what it can to address the shortage by hiring locally, and offering the best wages and conditions it can. Young New Zealanders are entering the industry, but not in enough numbers.
“It’s clear we still need workers from overseas to help fill the roles, support our essential industry and in fact, help the Government achieve its employment and climate change objectives,” Anderton says.
He says the announcement about reopening the skilled migrant category does little to help the sector, “because realistically, it’s very hard for automotive roles to qualify.”
That’s despite the automotive sector being a huge contributor to the economy – $3.5 billion in 2021. MTA says that contribution needs to be given appropriate weight in future immigration settings.
“Automotive workers need to be recognised as skilled, and valued as important,” Anderton adds.
“The glimmer of hope for our industry today is the promise of consultation. We hope that the Government undertakes that consultation in good faith, listens to our sector and acts decisively to smooth the pathway for overseas workers.
“A strong automotive sector is essential for this country’s health and future, and addressing the labour shortage must be a top priority.
“Certainly, we welcome to opportunity to work together with Government on this,” he says.
