ILO Calls for Urgent Reforms to Pacific Labour Migration Schemes to Boost Worker Rights

The International Labour Organization (ILO) has urged sweeping reforms to labour migration programmes in the Pacific, calling for lower migration costs, greater job mobility, and improved access to healthcare to ensure fairer and more sustainable outcomes for migrant workers.

In a new report examining two of the region's flagship schemes—Australia's Pacific Australia Labour Mobility (PALM) programme and New Zealand's Recognised Seasonal Employer (RSE) scheme—the ILO highlights both the economic success of these initiatives and the pressing need to align them more closely with international labour and human rights standards.

A Vital Economic Lifeline—But Gaps Remain

The PALM and RSE schemes have become critical pillars of the Pacific economy, enabling thousands of workers to access overseas employment while helping Australia and New Zealand address labour shortages in sectors such as agriculture, hospitality, and care services.

Remittances from these workers are a major driver of economic resilience in Pacific Island nations. In some countries, remittances account for over 20–40% of GDP, supporting households, education, and local businesses.

The ILO report acknowledges these benefits, noting that the schemes have:

• Created stable employment opportunities for Pacific workers

• Strengthened regional economic integration

• Supported post-pandemic recovery and climate resilience

"Temporary labour migration has delivered real gains for Pacific workers, their families and economies across the region," said Martin Wandera, Director of the ILO's Country Office for the Pacific.

Hidden Costs Leaving Workers in Debt

Despite formal bans on recruitment fees, the report identifies high upfront migration costs as a major concern. Workers often bear expenses related to:

• Air travel and visa processing

• Documentation and medical checks

• Pre-departure requirements

These costs can leave many migrants starting their jobs already in debt, reducing their financial gains and increasing vulnerability to exploitation.

The ILO calls for a comprehensive review of migration-related expenses and recommends a more equitable cost-sharing model between employers, governments, and workers.

Limited Job Mobility Weakens Worker Protection

Another critical issue is the restriction on workers changing employers, which can limit bargaining power and expose migrants to poor working conditions.

Under current arrangements, workers often face administrative hurdles or risk losing their visa status if they attempt to switch employers.

The report recommends:

• Introducing simple and accessible mechanisms for job mobility

• Reducing administrative barriers

• Strengthening oversight to prevent exploitation

Experts note that increased mobility is key to creating fairer labour markets and improving working conditions.

Expanding Access to Healthcare and Benefits

The ILO also highlights gaps in access to essential services, particularly healthcare. It recommends:

• Ensuring migrant workers have equal access to healthcare as nationals

• Simplifying access to superannuation benefits in Australia when workers return home

These measures would improve both worker welfare and long-term financial security.

Women and Underrepresented Groups Still Face Barriers

While participation in migration schemes has grown, the report points to persistent gender gaps and inclusion challenges.

Women and other underrepresented groups often face:

• Limited access to recruitment pathways

• Higher risks of discrimination

• Additional social and economic barriers

The ILO calls for a review of participation rates and targeted strategies to improve inclusion, ensuring migration opportunities are more equitable.

Aligning with Global Labour Standards

The report emphasizes that strengthening these schemes is essential to ensuring they meet internationally recognized principles of:

• Decent work

• Fair recruitment

• Non-discrimination

• Worker protection and rights

"Further strengthening these schemes in line with international labour standards will help ensure their long-term success," Wandera said.

A Path Toward Sustainable Migration Systems

The findings form part of the ILO's broader efforts to promote fair and effective labour migration governance, particularly in regions vulnerable to economic shocks and climate change.

The report was developed under the project "Labour Mobility for Sustainable Development and Climate Resilience in the Pacific", supported by the Migration Multi-Partner Trust Fund and aligned with the Global Compact for Migration.

Balancing Opportunity and Protection

As demand for migrant labour continues to grow globally, the Pacific schemes are increasingly seen as a model for managed, circular migration. However, the ILO warns that their long-term success depends on addressing current gaps.

By reducing financial burdens, enhancing worker rights, and expanding inclusion, policymakers can ensure that labour migration remains a win-win solution—benefiting workers, employers, and economies across the region.