Pacific / Cook Islands

Tourism operators in Cook Islands unhappy with employment law changes

14:15 pm on 30 June 2023

Photo: 123RF

Businesses in the Cook Islands are concerned new immigration rules recently introduced will make it hard to retain foreign workers.

The new regulations, agreed by Cabinet in April, under the requirements for international workers says: "Unless the applicant has special skills or is entitled to more favourable treatment under an international agreement (e.g. PACER Plus) a stay as an international worker cannot extend for a period of more than six years without a one-year break".

It adds: "at least 1 month out of every 36-month permit must have been spent offshore".

The policy has resulted in the Cook Islands Chamber of Commerce and the Cook Island Tourism Industry Council preparing a submission to ask for some of the regulations to change.

Council president Liana Scott said the new rules would provide serious challenges and disrupt business operations.

"And also the unnecessary duplication of costs and finding temporary or replacement staff," said Scott, who is also the owner of the Muri Beach Club Hotel in Rarotonga.

"We have a depleting population, there's more Cook Islanders living in Auckland alone than the whole of the Cook Islands.

"In order for us and our economy to prosper, we need the staff to be able to deliver on the services we promise."

Easy to move to Australia or New Zealand

Scott said the hospitality industry was "crying out for workers" and the pathway for foreign workers in the Cook Islands to move to New Zealand or Australia was becoming easier.

"What are we doing as a nation to try and get foreign workers wanting to establish themselves in our communities and in our workforce?"

The policy changes would also negatively affect the public sector that needed healthcare workers and teachers, she said.

According to Scott, foreign workers felt nervous about the new regulations but also about speaking out, out of fear of being targeted.

"No one's really had an opportunity to get their head around the implications of it. It's been quite sudden."

Scott said in earlier consultation meetings by immigration, the rationale behind the requirement for workers to leave was so foreign workers could ensure they have a continued connection to home.

However, Scott said foreign workers came from countries where "they can barely find a job in" or they "don't pay enough for the family to survive".

"They'll just go off to the next country or destination that can employ them.

"We just felt that rationale didn't make sense."

Liana Scott Photo: Supplied

'Increase may deter talented individuals'

In a statement, the Cook Islands-Fijian organisation, Friends of Fiji expressed concerns about the fee increase on foreign workers.

"This increase may deter talented individuals from considering opportunities in the Cook Islands, ultimately reducing the pool of skilled workers available to the country," the group stated.

"If neighbouring countries offer similar opportunities with lower fees, the fee increase may discourage foreign workers from choosing the Cook Islands as their preferred destination."

Work permits were previously $500 per annum and are now $960 for three years - a saving of $540 if a worker resides for three years.

"It sounds like we're getting a bargain," Scott said, "[but] I think the reality is in this day and age that's not going to come to fruition and most will leave in a year or two, unless there is some pathway to residency that will attract people to want to come and live here."

In a statement earlier this month, acting principal immigration officer Chere Arthur apologised for an earlier notice on the new regulations that caused confusion amongst the community.

"We are prioritising support for current permit holders to successfully migrate to the most appropriate permit under the new regime - working closely with employers and their migrant employees," Arthur said.

"Within our resource constraints, much planning and preparation has gone into the transition management for the Immigration Regulations 2023.

"We anticipate it may take up to 12-18 months to fully migrate all current permit holders to the new regime."