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PNG Seasonal Worker Scheme

Presentation

By

PNGSW Coordination Office

1ST QUARTER PLLSMA & ANNUAL PROVINCIAL ADMINISTRATORS’ CONSULTATIVE CONFERENCE,

GOROKA, BIRD OF PARADISE HOTEL, 21 MARCH 2011

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Background

1. 2008, Australian Labour Government announced Australia’s Pacific Seasonal Worker Pilot Scheme (PSWPS)

2. PNG asked Australia to be included in Australia’s PSWPS

3. 2008 PNG/Australia Ministerial Forum – PNG/Australia Joint Working Group established to develop a framework document

4. August 2008, Prime Minister, Hon Kevin Rudd agreed to include PNG with Vanuatu, Kiribati & Tonga in Niue

5. 2009, PNGSW Taskforce established by NEC, chaired by DFAT to prepare PNG to participate in PSWPS

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Memorandum of Understanding & Facilitative Arrangements (MOU&FA)

1. 2008 - 2009, PNG/Australia Working Group meet at least four times between Canberra & Port Moresby to negotiate the MOU&FA text

2. July 2009, PNG/Australia working Group concluded the MOU&FA

3. July 2010, PNG approved the MOU&FA for signing

4. July 2010, PNG/Australia sign the MOU&FA in Alotau

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PNG Labour Sending Arrangements

1. Importance of Seasonal Worker Export for PNG Acquire employment skills, work ethics, savings by workers Reduce urban drift in PNG Promote reinvestment of worker remittance into productive

areas in districts of workers Promote horticulture in districts of worker origin through

collaboration with Australian horticulture sector Ensuring equity of spread of benefits from the 4 regions Vision 2050 (Pilar No. 4 – wealth generating activities for PNG)

2. Policy Considerations: Est. 31 percent of people aged 15 or over have no cash income

earning activity Est. 50,000 young people leave school each year – formal

sector absorb only a small proportion Population growth rate is high and predicted to double by 2026

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PNGSW Taskforce is encouraged with the priority given by DLIR to NED

1. PNG generally has been a labour receiving rather than sending country since independence

2. There is demand for seasonal workers in Australia and New Zealand (horticulture & viticulture sectors) – World Bank

3. There is no dependable central labour supply data - anecdotal evidence suggest high levels of unemployment and underemployment, esp. in the districts (rural areas)

4. PNGSW Taskforce note the significant progress made by DLIR to establish the Labour Market Information Management System – Labour Export System

5. DLIR may commission a study to establish linkages with Australian Regulation and key institution in Australia

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Institutional coordination mechanism for PNG

1. DFAT is the lead coordination department in collaboration with the Department of Labour & Industrial Relations (DLIR)

2. PNG SW Ministerial Oversight Committee Chaired by Minister for Foreign Affairs, Trade & Immigration, Hon. Don Polye MP

3. PNG Seasonal Worker Taskforce Chaired by Deputy Secretary (Operations), DFAT, Mr. Alexis Maino

4. PNG SW Coordination Offices in Port Moresby & Sydney, Australia is co-jointly managed by DFAT and DLIR

5. Department of Community for Development & DPGLLG will co-jointly prepare and assist Post-return workers to reinvest repatriated funds at their respective home Districts

5. District coordination involving stakeholders, communities, NGOs

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PNGSW Coordination Office Responsibilities

1. Market research and marketing2. Developing program awareness and advertising3. Developing work-ready pool4. Liaison with interested employers in Australia5. Liaison with Australian Government6. Worker selection7. Assist pre-departure paper work and clearance8. Pre-departure orientation9. Pastoral care and protection of workers rights10. Post-return worker assistance11. Data management, analysis and reporting12. Strategic planning and management

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Expected division of responsibilities between Departments & Agencies

1. Government relations (bilateral), marketing, pastoral care: MFATI, DFAT and DLIR

2. Worker protection, employment contract verification, labour laws, recruitment management and labour data: DL&IR & State Solicitor’s Office (DJAG)

3. Provincial and District level institutional relations and selection system, post-return worker assistance: DCD, DP&LFA, DALS, Nat. Fisheries Authority, Dept. Of Commence & Industry, Police, Health, Education, etc

4. Public awareness design, Pre-departure orientation design and delivery: All Agencies (State Media Units)

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Overview of Australia’s Pacific Seasonal Worker Pilot Scheme

1. PSWPS is for 3 years involving 2,500 visas and so far Australia has issued 120 visas since 2009

2. New Zealand’s RSE has been a successful scheme with more than 8,000 seasonal workers annually from Vanuatu, Kiribati, Solomon, Tonga, etc

3. November 2008 - Australia signs MOU&FA with Tonga, Vanuatu & Kiribati in Canberra, whilst PNG/Australia signed MOU&FA in July 2010, Alotau PNG

4. Evaluation in July 2010 conducted without PNG’s participation

5. PNG’s participation is absolutely necessary for PNG workers to be evaluated for work post PSWPS

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NEC Decision No. 81/2009 28 May 2009

1. May 2009, PNG Government approved PNG’s participation in the Australia’s PSWPS and New Zealand’s Recognised Seasonal Employer Scheme (RSE)

2. Approved K5.8 million funding to be managed thru a Trust Account - PF(M) Act 1995

3. Direct Dept Finance, Treasury and DNPDD to integrate annual funding for PNG seasonal worker program as an recurrent activity – budget appropriation

4. Establish Coordination Offices in Port Moresby and Sydney and transfer to DLIR (after the pilot period)

5. Establish PNG labour sending arrangement in collaboration with DLIR

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NEC Decision No. 146/20106 July 2010

1. approved MOU&FA and authorised MFATI to sign

2. endorsed the Trust Instrument for Minister for Treasury & Finance to sign and direct release of K5.8 million as approved in NEC Decision No. 81/2009

3. Directed the Heads of DP&LGA and DCD to co-jointly establish Inter-Agency Working Group to assist and guide post-return workers to reinvest (repatriated funds) in productive activities in their home Districts

4. IAWG program Heads to report progress to NEC

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Key activities endorsed in NEC in its Decision No. 146 of 2010

Priority Tasks for 2011 – NEC Decision No. 146/2010Outcome Activity Responsibility

Funding of K5.8 million Signing of Trust Instrument; Establishment of Trust Account; and Mobilizing Funds and Integration into

annual budget appropriations

Minister for Finance & Treasury, DF, DT, DNPDD, DFAT

Establishment of PNG Seasonal Worker Coordination Offices

Establish a fully operational office in Port Moresby and Sydney

DLIR, DFAT and

Department of Treasury

PNG Workers to participate in the New Zealand RSE

Funding to prepare and Market PNG workers under RSE

MFATI and DFAT

Establish Taskforce for Return Workers

Draft a Terms of Reference; Cost Projections for NEC approval; and Integrated District Development Plan

involving return workers

DLIR and DFAT

World Bank Report and International Organization for Migration (IOM)

Institutional Strengthening Project, Capacity Building Project and Technical

Assistance

DFAT, DLIR and DNPDD

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PNGSW Trust Account and release of funding critical for PNG to success as labour sending country

1. Establishment of Trust Account remains critical

2. Hon. Peter O’Neill, MP approved K2 million out of K5.8 million in October 2010

3. Follow up lead to approval of K1 million on Thursday 24/02/2011 and Cash Warrant received on Monday 28/02/2011

4. K1 million will be posted under Item 135, DFAT

5. Coordination Office noted its appreciate Secretary and Top Management for the funding arrangement between it and DFAT

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Proposal from MADEC – an Approved Australian Employer received by PNG

1. Propose to select and recruit 10 out of 20 PNG seasonal workers

2. Region: Swan Hill, Robinvale in Victoria, Australia for a period of four (4) months work – pruning almond trees

3. Timeline: Selection concluded by 20 April 2011

4. Pre-departure Orientation Seminar: PNGSWT, DEEWR, Aus-AID and MADEC from 2nd to 6th May 2011

5. Return to PNG: Mid-September 2011 & assisted by IAWG to reinvest repatriated funds in wealth generated activities

6. PNG worker will be paid minimum AU$19.00 per hr @ 48 hrs per week (average) for 4 months ONLY.

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Australia proposes changes to MOU&FA to enable PNG to participate

1. Pursuant to Clause 13 of MOU&FA, the Secretary DFAT can respond on behalf of PNG – PNG Dip. Note delivered to AHC

2. The changes are as follows: PNG worker guarantee 30 hrs per week for 6 months PNG worker guarantee 35 hrs per week for 5 months PNG worker guarantee 38 hrs per week for 4 months International fares reduced from 50/50 to 45/55 to be paid

by employer and deduct from worker (45 percent) AU$100 for internal transfer (airport to accommodation)

and deduct from worker’s earning later

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PNG Legal Framework and Regulation

1. MOU&FA between PNG and Australia

2. NEC Decision No. 81/2009 authorise PNG to negotiate a similar MOUFA with New Zealand

3. Employment Placement Services Act, 1966 (Chapter 172) and other enabling legislation need urgent review by DLIR

4. PNGSW Taskforce sought World Bank & International Organization for Migration (IOM) to assist PNG (National Employment Division) with its institutional strengthening and capacity building Technical Support & funding

5. Holiday Worker Scheme and Student Holiday Scheme need to be concluded soon with Australia & New Zealand by DFAT

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DLIR to take ownership of World Bank Report, May 2010

1. World Bank Report – “Assessment of Papua New Guinea’s Institutional Capacity for Labor Export” May 2010.

2. World Bank seeks to assist PNG develop its labour export institutional capacity

3. Other UN Systems such as International Organisation for Migration (IOM), Aus-AID, NZAID, etc may assist PNG if World Bank take the lead and PNG shows real commitment

4. NEC Policy Paper is being prepared by PNGSW CO for consideration by DILR & DFAT thru the Taskforce

5. DLIR take ownership of labour export program – broader Labour Mobility Policy Program (PNGSW Taskforce has limited role)

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PNG seasonal worker eligibility, screening and selection criteria

The eligibility criteria are:-

1. minimum Grade 10 - 12, preferably with an appropriate vocational training certificate and farm experience

2. have a working knowledge of English language

3. be of good health (fit for work) and good character (no criminal conviction);

4. be unemployed at the material time

5. be within the age bracket from 21 to 45 years

6. Marital status: married (spouse consent required)

7. commitment to return to PNG with a goal for family and re-investment of earnings

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PNG seasonal worker eligibility, screening and selection criteria

The eligibility criteria continue:-

7. be a citizen and is a resident in Papua New Guinea (Community Screening & Assessment).

8. Commitment to return to PNG after work in Australia

9 Medical check & clearance (TB, Diabetes, HIV/AIDS, etc) require hospitalisation in Australia

10. Zero tolerance - false information and declaration

11. Entitled to return upon invitation from the AAE

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Selection and Recruitment Process

1. AAEs provide a list of worker specification to PNGSW Taskforce (Coordination Office - NED)

2. PNGSWT identify suitable workers from the “work-ready pool” for AAEs

3. AAEs select the suitable worker – letter of invitation sent to prospective worker

4. Worker accept and sign the invitation letter

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PNG Sending Arrangements1. One week pre-departure orientation seminar (visa

processing & Chest X-Ray, radiologist report from designated panel appointed by AHC)

2. PNGSW Coordination Office, DL&IR, DFAT, DEEWR & AAEs coordinate successful workers to Australia.

3. The workers are received & placed in farms by AAEs & PNG officials in Australia.

4. DLIR & DFAT may be involved further to escort workers (receiving and pastoral care arrangements in Australia)

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Pre-departure Orientation Seminar

1. Australian working and living conditions, including health, climate, clothing, footwear and the role of the Workplace Ombudsman;

2. cost involved in the pilot scheme (travel, accommodation, health insurance, living expenses etc);

3. deductions that can be lawfully made from their earnings;

4. taxation, workers compensation, health insurance and superannuation arrangements in Australia;

5. accommodation arrangements in their selected regions;

6. expectation and work ethics required by AAEs;

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Pre-departure Orientation Seminar1. financial literacy, banking and remittance arrangements;

2. personal viability, health, HIV/AIDS, safety, etc

3. zero tolerance on alcohol, drugs and ant-social behaviour;

4. on return arrangements, savings habits, district business plan, importance of reinvestment of earnings into productive activities;

5. responsibilities as an ambassador of PNG, the State, their immediate community, their family and the future of PNG’s participate in PSWPS;

6. right to go back as a return worker on invitation by AAEs;

7. visa conditions – what they mean and implications if breached;

8. other materials deemed appropriate, including emergency contact details.

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Australia – Receiving Arrangements

1. On-arrival orientation briefing provided by AAEs with local government, unions, community groups and PNG Labour Liaison Officer

2. Australian Workplace Ombudsman ensure that PNG Workers are not exploited by AAEs

3. PNG workers will be protected by the Australian workplace laws & will enjoy same terms & conditions of employment whilst working in Australia

4. PNGSW Labour Officer will also provide support to workers (pastoral care) and assist AAEs with return arrangements

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On-arrival Orientation Briefing (Australia)

1. Regional & local Information and how the Pastoral Care will function

2. Contacts for assistance

3. Australian conditions, rights & responsibilities, including union membership

4. Financial literacy, banking and remittances arrangements

5. Accommodation arrangements (change accommodation)

6. Transport arrangements to and from workplace

7. On site “on-job training” & employment orientation

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Pastoral Care for workers in Australia

Approved Australian Employers is responsible

1. Australian work standard, include access to Union

membership

2. Terms and conditions under Australian Industrial Instrument (minimum)

3. Guarantee work for average of 30 hrs work per week up to six months (refer to amendments to 2011 MOU&FA )

4. Compensation Insurance

5. Workers earnings is taxed – Australian taxation laws

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Pastoral Care for workers in Australia

Approved Australian Employers is responsible

1. Workers safety and health workplace – Australian Occupational Health and Safety laws

2. Worker health insurance and pharmacy

3. International airfares 45/55 paid by AAE and deducted 45% from worker earnings

4. AU$100 deduct from worker for transportation from arrival to accommodation

5. Compulsory superannuation for worker

6. Accommodation (fair & reasonable)

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PNG – Return Workers Arrangements

1. PNG worker prepare to return to Papua New Guinea after the agreed visa period

2. AAE assist workers to prepare and submit tax return

3. AAE assist worker to obtain a refund of superannuation contributions-including information on tax withheld from superannuation that can be reclaimed by worker.

4. The RWs will be received in Port Moresby (Jackson's Airport)

5. The RWs will undergo a week on-return debriefing and prepare RWs to reinvest remitted funds on wealth generating activities

6. The DCD and the DPLGA will manage and facilitate the RWs back to their home districts and families

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Seasonal worker scheme Remittance can reduce poverty

1. World Bank Study-World Banks Global Economic Prospects 2006 indicates that international migration and remittances both have strong impact in poverty reduction;

2. In 2005 remittances received by developing countries totaled US$ 167 billion. The world wide remittance was at US$ 232 billion in 2003

3. The 08th Pacific Economic Study published by Aus-AID in March 2008 states that “Remittances are becoming increasingly important to the Pacific. Since 2000, remittances have grown on an average 36 per cent per year to reach US$425 million in 2005”.

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Prospective cost to Worker

No. Cost Item Total

1 Work Clothes & footwear K424.00

2 Medical & Radiologist Clearance K470.00

3 Airfares (Air Niugini & Pacific Blue) POM-BNE-POM

K903.50 to K1,008.46

4 Australian Visa (AU$250) K600.00

5 PNG Passport

(Renewal K50.00)

K100.00

6 Police Clearance Report K10.00

Total K

Conclusion PNG Government at the highest Executive level want to make the

Seasonal Worker Pilot Scheme a success

PNG seasonal worker program is consistent with PNG Vision 2050, MTDS, MDG to assist and guide Papua New Guinean’s into wealth generation activities, targeting 85 percent of our poor rural people

The PNGSW Taskforce, DFAT, DLIR & the Coordination Offices are keen and willing to make it a success

Given the time, motion and resource limitations, we need all of your support and involvement as a program partner.

Together, we can deliver and sustain a robust PNG Labour Export and Marketing System (e.g. domestic extraction industry (LNG & mining) and RSE, HWS & PSWPS)

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THE END

Thank you and if you allow, I could take a question.