The Commissioner of Labour Mobility, Murielle Metsan Meltenoven, has shared deep insights into the impact of the Pacific Labour Mobility Schemes on Vanuatu during a special edition of VBTC’s Stret Tok program, acknowledging both the economic benefits and growing social concerns surrounding the initiative.

1. Economic Contribution of Labour Mobility Schemes

Commissioner Meltenoven confirmed that Vanuatu remains one of the top labour-sending countries in the region, with around 12,000 ni-Vanuatu workers currently engaged in Australia’s PALM and New Zealand’s RSE programs. She stated that the inflow of remittances has significantly boosted the country’s GDP, while communities benefit from skills development, entrepreneurship, and financial support for families, education, and housing.

However, she emphasized that while the scheme began with the intent of creating more opportunities, it now presents increasing challenges. These include labour shortages in key domestic sectors and rising social issues such as family separation and broken relationships. The government, she said, is actively reviewing and reforming legislation and policies to manage these negative impacts while sustaining the program’s benefits.

2. Domestic Labour Shortages and Workforce Strategy

To better understand the impact of overseas labour participation, the Labour Department has secured funding to conduct Vanuatu’s first-ever comprehensive labour force survey in 2025. The aim is to assess participation rates, graduate reintegration, and job creation in the domestic market.

Meltenoven noted that natural disasters, such as the recent earthquake, severely disrupt local employment, affecting over 880 jobs according to a joint survey by the government and the Vanuatu Chamber of Commerce and Industry (VCCI). These disruptions have further exposed the fragility of Vanuatu’s domestic job market.

To tackle this, the government plans to launch an Apprenticeship Scheme. This initiative, endorsed by the Council of Ministers, aims to help fresh graduates and job seekers gain hands-on experience before formally entering the workforce. The scheme will be implemented in partnership with institutions like Vanuatu Institute of Technology (VIT).

3. Comparing Income and Job Incentives: Abroad vs. Home

The Commissioner acknowledged that higher wages and better benefits overseas are key reasons why many ni-Vanuatu opt for seasonal work abroad. While public servants receive structured salary packages and allowances, workers in the private sector often depend on individual company policies. With the minimum wage still under 300VT per hour, and no national provisions for cost-of-living, housing, or child allowances, many citizens are pushed toward overseas employment for better financial stability.

4. Managing Labour Market Balance

Meltenoven said balancing the intake of foreign workers and the return of ni-Vanuatu labourers is a growing priority. Currently, foreign nationals enter under the Labour Work Permit Act, which includes a Reserved Occupations List to protect local jobs. However, due to skills shortages in technical sectors, many positions are filled by foreigners.

She emphasized the importance of ensuring returning graduates and skilled workers are absorbed into the workforce, mainly through initiatives like the Apprenticeship Scheme. Additionally, the Human Resource Development Plan aims to align scholarship programs with national employment priorities to ensure returning students find work locally.

5. Legal Protections for Workers in RSE & PALM

Labour mobility workers are protected under bilateral agreements and Memoranda of Understanding (MOUs) signed between Vanuatu and receiving governments like Australia and New Zealand. These documents ensure that ni-Vanuatu workers receive the same employment rights as local citizens in those countries, including fair pay and proper working conditions.

6. Addressing Exploitation and Contract Violations

Commissioner Meltenoven did not shy away from acknowledging exploitation issues such as wage theft, over-deductions, and poor accommodation. She assured that the Labour Department works closely with relevant Australian and New Zealand authorities to address such violations under the legal frameworks of those countries.

“We don’t deny these issues. When evidence is available, we take action. In fact, we have already blacklisted several employers who were found exploiting our workers,” she said. Meltenoven reaffirmed that the department remains committed to protecting workers’ rights and improving the system through dialogue and enforcement.

The Commissioner concluded by affirming that while labour mobility continues to offer immense benefits to Vanuatu, policy innovation and coordinated oversight are crucial to ensure its sustainability and fairness for all involved.