Submission on Better Work Action Plan

September 2022

Introduction

The Restaurant Association of New Zealand welcomes the opportunity to provide feedback on He Mahere Tiaki Kaimahi – the Draft Better Work Action Plan (the Plan). 

The Restaurant Association has only recently been invited to join the ITP Leadership Group, and was not able to contribute to the development of the Plan, which reflects many of the recommendations made by the Restaurant Association almost two years ago as part of our Future of Hospitality Roadmap (the Roadmap) in 2020, shortly after the first impacts of COVID-19 were felt in New Zealand. 

The Restaurant Association shares the sentiments and goals of the Tourism ITP Leadership Group: that Tourism and Hospitality can be incredibly rewarding industries to work in; that there are things we can do to make our industries more attractive and sustainable; and that the people who work in Tourism and Hospitality are the future of our industries. These pou helped to guide the development of our Roadmap. 

The Association invested significant time, energy and resources into the development of our Roadmap, which was formally presented to Ministers, MPs, government officials and industry partners throughout late 2020/early 2021. 

Despite this plan being developed at the request of the Government, there was no commitment to move forward with those recommendations when they were first made. As such, the Association pushed ahead on its own to implement the recommendations in our roadmap, to create the necessary infrastructure to support our sector’s recovery from the pandemic – without Government assistance. 

So while it is encouraging to see action on the issues that we have been raising for over two years, the Restaurant Association is concerned to see that instead of investing in schemes – which are now already developed and in the market – to support their expansion, the proposal is instead to develop from scratch almost identical programmes to those currently deployed. 

Feedback on the Plan from Restaurant Association members reiterates a desire that the ITP not recreate the wheel with the implementation of the Better Work Action Plan. Resources and tools are important to business, but businesses rightly want to ensure that the best use is made of those already scarce resources. It is our view that a better use of the resources available to the ITP

Leadership Group would be to provide support to those organisations like ours that are already providing bespoke tools designed by and for their sector, rather than starting from scratch. 

Summary of Recommendations 

• Recommendation 1: The timing and scale of the implementation of the Better Work Action Plan should be reviewed, with the potential for phased implementation of the tirohanga hou. The governance and oversight arrangements for the rollout of the plan should also be clearly identified and explained. 
• Recommendation 2: The future role of migrant and overseas workforces needs to be acknowledged and recognised in the Plan so that special workforce needs, such as seasonal peaks and troughs, can be accommodated. 
• Recommendation 3: The educational component of the Plan should include clearer references to education and higher education as part of the overall upskilling and future-proofing of our industries. 
• Recommendation 4: A review of the relationship between Government reforms and the Plan should be undertaken, to ensure any issues or conflicts are addressed before the final Better Work Action plan is released. 
• Recommendation 5: Instead of creating a new advertising campaign, the Plan should include work to expand on already existing campaigns – an example is the Restaurant Association’s Get a #HospoLife campaign – to accomplish the objective of tirohanga hou 8. 
• Recommendation 6: The development of a Tourism and Hospitality Accord as proposed by tirohanga hou 1 should consider how it interacts with existing workforce development plans, such as the Restaurant Association’s HospoCred. 
• Recommendation 7: Where any changes under tirohanga hou 6 relate to Hospitality, should incorporate existing training and upskilling schemes such as the Restaurant Association’s HospoStart and Springboard programmes. 
• Recommendation 8: A specialised unit within MBIE, focussed on the Hospitality sector, should be established, with a corresponding Ministerial portfolio to show Government leadership and support for our recovery and ongoing sustainability.

General Comments 

Our sector, like many, is adapting to operate under the fundamental changes to Aotearoa New Zealand’s employment relations framework that are due to be implemented over the next few years. The number and scale of these changes has at times been overwhelming and at times there is an apparent misunderstanding of the needs of the Hospitality sector. 

We have seen drastic development and improvements within our sector over the past decade – and much of it has been industry-led. Despite the pandemic, wage growth in the Hospitality sector increased by more than 8% in 2022 (source, Restaurant Association 2022 Remuneration Survey), exceeding the average increase recorded across other industries over the same period. The Restaurant Association’s 2022 Hospitality Workplace Insights Report also shows that industry-led workplace practices which aim to attract the workforce we need are either already in place or are being implemented, as we collectively look to the future of Hospitality in Aotearoa. 

Feedback from Restaurant Association members has shown that, given the consistent pressure of the past two years and the many changes to come, on top of self-identified and implemented actions to improve our sector, adopting yet another large-scale change such as the Better Work Action Plan has come at the wrong time. 

As such, the Restaurant Association believes the timing and scale of the implementation of the Plan should be reviewed, with the potential for phased implementation of the tirohanga hou. The governance and oversight arrangements for the rollout of the Plan should also be clearly identified and explained. 

• Recommendation 1: The timing and scale of the implementation of the Better Work Action Plan should be reviewed, with the potential for phased implementation of the tirohanga hou. The governance and oversight arrangements for the rollout of the plan should also be clearly identified and explained. 

The biggest issue facing our sector throughout our recovery is staff and skills shortages. This has been on our radar for some time, and was one of the motivating factors behind the development of our roadmap. 

However, Government policy settings which aimed to bridge these gaps felt by many sectors across Aotearoa took a blanket approach to staff and skill shortage issues and failed to truly understand and address the niche in which Hospitality operates. 

With the work that is being done on migrant worker exploitation – the objectives of which the Restaurant Association supports – the role that migrant and overseas workforces play in the overall tourism and hospitality workforce cannot be understated or ignored, and must be recognised in the development of the Plan. 

The migrant and overseas workforces – everyone from those on working holiday visas to migrant worker visas – made up almost a quarter of the total tourism and hospitality workforce in 2019. The future role of the migrant and overseas workforces needs to be acknowledged and recognised in the Plan so that special workforce needs, such as seasonal peaks and troughs, can be accommodated. 

• Recommendation 2: The future role of migrant and overseas workforces needs to be acknowledged and recognised in the Plan so that special workforce needs, such as seasonal peaks and troughs, can be accommodated. 

Appropriate and adequate training is also an important, long-term factor to assist in bridging the skills shortage gaps across the Hospitality sector, in terms of both job readiness as well as on-the-job training and upskilling. 

Alongside this, the interface between training and skills shortages is keenly felt through the immigration system. Skills shortages are impacting all levels of work – from entry-level to experienced and highly skilled. 

The Restaurant Association believes that the educational component of the plan should include clearer references to education and higher education as part of the overall upskilling and future-proofing of our industries. 

• Recommendation 3: The educational component of the Plan should include clearer references to education and higher education as part of the overall upskilling and future-proofing of our industries. 

Amongst all of these changes, we believe there should be a review of the relationship between Government reforms (such as Fair Pay Agreements and the Income Insurance Scheme) and the draft Better Work Action Plan, to ensure any issues or conflicts are addressed before the final Better Work Action plan is released. 

• Recommendation 4: A review of the relationship between Government reforms and the Plan should be undertaken, to ensure any issues or conflicts are addressed before the final Better Work Action plan is released. 

Tirohanga Hou 8: A public campaign to showcase better work in the industry 

Get a #HospoLife 

Those of us who work in the industry know the great opportunities Hospitality can offer, both for those that enjoy life long hospo careers and for those that use it as stepping stone to other vocations. 

We support the tirohanga hou proposing a public campaign to showcase better work in the industry – in fact, we already have one in place that has been running for over a year. 

The Restaurant Association’s recruitment campaign, Get a #HospoLife, is showcasing hospitality workers and business owners to give Kiwis a better understanding of what it means to work in the industry. 

There is no reason to launch a competing public campaign on this issue, when the HospoLife Campaign already has the support and input from hospitality owners, leaders, and workers. 

Campaigns that aim for transformational change need to be guided and supported by those who understand the industry intimately. HospoLife offers government and industry representatives a unique opportunity to work together to address one of the most pressing issues facing our sector. 

We would welcome the opportunity to refine our already existing campaign to meet the needs of the ITP, to ensure both our work is not subsumed by an alternative campaign and that the best use is made of public funds which would have been invested in an alternative.

• Recommendation 5: Instead of creating a new advertising campaign, the Plan should include work to expand on already existing campaigns – such as the Restaurant Association’s Get a #HospoLife campaign – to accomplish the objective of tirohanga hou 8. 

However, we also know that addressing the perception issues our sector faces cannot be addressed simply through a positive marketing campaign – it needs to be paired with real action to raise the bar for our sector. 

Tirohanga Hou 1: Tourism and Hospitality Accord 

HospoCred 

The Restaurant Association accreditation programme, HospoCred, was launched in 2022 to create a platform for recognising those employers who meet and exceed best practice standards within the hospitality industry. 

Therefore, businesses that achieve HospoCred-itation have displayed a commitment to best practice, increasing their impact and ultimately committed to ongoing development of themselves, their business and their team. 

Ultimately, HospoCred aims to create a clearer picture for consumers, for Government, for other businesses and for current and prospective employees about what it means to be a responsible and transparent hospitality business. 

While we welcome efforts to increase transparency and awareness of employment standards within the hospitality and tourism sectors – we believe that these changes should be led by industry itself. 

In the midst of a growing labour shortage, hospitality owners find themselves increasingly time-poor and overworked, and they rely on Associations like ours for guidance on the latest employment standards and policy changes. 

Our members have shown great support for HospoCred, and many have a deep personal investment in the programme having given their time and knowledge to support its development. As such, much of the feedback received from our members on the development of a Tourism and Hospitality Accord is that of concern that their efforts will go to waste. Thus, we believe there is greater room for impact should the Government support, promote and incorporate HospoCred as a pillar that upholds and strengthens a Tourism and Hospitality accord.

Further, HospoCred has already been adopted as part of the Tāmaki Makaurau Regional Skills Leadership Group’s Regional Workforce Plan, as part of their support for the implementation of the Restaurant Association’s Future of Hospitality Roadmap. The fact that the Tāmaki Makaurau region – one of the largest employers of people in both the Hospitality and Tourism sectors – supports this roadmap is a significant vote of confidence in our plan, and one that we believe should be replicated across agencies. 

• Recommendation 6: The development of a Tourism and Hospitality Accord as proposed by tirohanga hou 1 should consider how it interacts with existing workforce development plans, such as the Restaurant Association’s HospoCred. 

Tirohanga Hou 6: Fit for purpose education and training HospoStart and Springboard 

The proof is in the pudding when it comes to the Government partnering to deliver programmes specifically tailored for the Hospitality industry – our HospoStart programme, delivered in partnership with the Ministry of Social Development, prior to the pandemic had one of the highest success rates of any MSD programme. 

HospoStart introduces job-seekers to the hospitality industry, with an overall goal of employment upon completion of the programme. To date, we have an average success rate of placing job-seekers into employment of 70%. 

Our Springboard programme, which upskills those already working in the hospitality industry with on the job professional training and development, is built on a flexible training model and was co-designed with the Ministry of Social Development to help operators bridge the skills shortage gap throughout our recovery and beyond. 

Taken together, these programmes are some of our most significant opportunities to both address the immediate worker and skills shortages we face as a sector, and build a more resilient and sustainable industry. While there is only a general tourism focus of Tirohanga Hou 6 and we support the priorities proposed to be incorporated into the ROVE work programme, any subsequent changes relating to Hospitality training should take into account these programmes which are already delivering results and consider how this practical, on-the-job training can be formally recognised through educational institutions.

• Recommendation 7: Any changes under tirohanga hou 6 that relate to Hospitality, should incorporate existing training and upskilling schemes such as the Restaurant Association’s HospoStart and Springboard programmes. 

Tourism and Hospitality 

This duplication of work is just one example of how Hospitality has been lost within the wider Tourism portfolio. This has become more frequent over the past two years, with fast-paced decision making highlighting a lack of understanding of the unique operational requirements of the hospitality industry. 

The consultation document recognises that there are a wide range of issues facing hospitality, and that the tourism and hospitality sectors share many characteristics. We know our sectors work closely – but we also know that what works for tourism will not always work for hospitality. 

Too often Hospitality is lost, confused or lumped in with Tourism when it comes to government policy making – despite our businesses requiring targeted and customised support that is appropriate to our operational needs. 

We are calling for the establishment of a specialised unit within MBIE focused on the Hospitality sector, with a corresponding Ministerial portfolio, to support our sector’s recovery from the pandemic. 

• Recommendation 8: A specialised unit within MBIE focused on the Hospitality sector should be established, with a corresponding Ministerial portfolio to show Government leadership and support for our recovery and ongoing sustainability.