The boon and bane of labour mobility

By The Editorial Board 25 July 2024, 10:00AM

Money earned from the Recognised Seasonal Employment(RSE) or the Pacific Australia Labour Mobility(PALM) has been a boon for many families in Samoa. At the same time, a bane to the economy as this has led to a labour shortage.

Prime Minister Fiame Naomi Mata'afa is right to take a cautious approach when presented with a new opportunity to export workers to another country. Japan’s ageing population and low birth rates have created the need for foreign workers.

Like Australia and New Zealand, Japan too is looking at the Pacific. Theoretically, this allows Japan much-needed labour. At the same time, Japan’s interest in the Pacific intensifies by building closer bonds with sovereign nations. It comes across as favouring the Pacific by allowing them to earn remittance.

The problem with this is that countries with small populations, like us, bear the opportunity cost in losing labour that has kept the local economy afloat. Teachers, nurses, hospitality staff, civil servants and even those working for businesses, are the ones who take up the chance.

Villages are lacking the manpower to sustain agriculture and fisheries. On Apolima, a programme to eradicate rats was asked to be stopped because the young men from the village were abroad for work.

It is only fair that people take the chance to work abroad. They want a better and secure future for their family and themselves. Even if people are just making ends meet, everyone wants to be in a position where finance is not a burden. And given the customary financial obligations, most people never think twice.

"We [currently] have issues with labour mobility in general," Fiame told the Samoa Observer. She noted that extensions to seasonal work agreements with Australia and New Zealand have not always been accompanied by adequate consultations.

"The thing is with the New Zealand and Australia labour mobility agreement, it was supposed to be seasonal. But as we've seen, they sort of made extensions without really having proper consultations on it.

"Of course, we would support any opportunities for our people to earn money, but there is also that part of losing human resources."

This was also why the government requested Australia not to include Samoans in the Pacific Engagement Visa scheme.

The government is concerned that the loss of labour constantly hampered the economy. Overseas workers have been brought in to fill the shortage created by those leaving for seasonal work in Australia and New Zealand. They had to be, otherwise the businesses were looking at closure. That is a fact that most business owners in Samoa would tell you.

In August last year, Prime Minister Fiame Naomi Mata'afa again raised deep concerns about the exodus of workers to Australia and New Zealand, arguing that countries like hers should not be seen merely as "outposts" which "grow" labourers for developed nations.

Prime Minister Fiame acknowledged labour schemes had been an invaluable source of income for Samoa during the pandemic, but said more problems had cropped up as they "broadened" beyond unskilled farm work to take in professions like aged care and hospitality.

"When we're feeling the impact of losing our human resources through these various labour schemes, we really do have to look at how we respond," she had said.

Samoa is not the only nation to feel the labour drain, the PALM scheme has left Vanuatu without skilled people. Businesses on that island are looking elsewhere as well to fill the shortage.

Similarly, in the Cook Islands, Fiji and Tonga, overseas workers are looked at filling certain fields. This problem will continue to persist until the Pacific island nations are developed and start boasting healthy economies that offer the best possible lifestyle with good education and better health care.

A solution could be creating a European Union-style common market in the region, allowing the free movement of goods and people across Australia, New Zealand and Pacific Island nations. However, for this to happen, Australia and New Zealand need to consider an open visa system for all Pacific island nations, something the two big brothers are not ready to do.

Migrant workers contribute to growth and development in their countries of destination, while countries of origin greatly benefit from their remittances and the skills acquired during their migration experience.

It does leave a gap in their country of origin. In Samoa, most industries employ overseas workers, the fishing industry, the hospitality sector, health, education and even the civil service. Why, because there is a shortage of labour in the country?

For Samoa, the solution lies in increasing the quality of life. Exports need to grow, agriculture and fisheries need to thrive, tourism needs to grow, education and health need to improve, and the government has to invest and stop relying on aid, then perhaps some can be persuaded to stay back in the motherland, otherwise the preference will always be to go abroad.

By The Editorial Board 25 July 2024, 10:00AM
Samoa Observer

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