alt Hacker News>> let them hire and fire at will.
New Zealand is not silicon valley. Two things: tourism and agriculture. These are seasonal industries. New Zealand might not want to deal with thousands of companies hiring staff for only a season, or using visiting backpackers to cheaply cover jobs that should go to locals. And they probably dont want to hear about import temp labor from asia.
I remember visiting Whistler BC a few years back during the ski season. All the hotel staff seemed to be auzzi or kiwi. The actual locals couldnt find proper jobs with so many backpackers willing to live communally for a few months and then disappear. While certainly a boon for local businesses, the people who actually vote on stuff were not happy. (Canada is too big and diverse to change its labor laws for this issue. New Zealand is not.)
With NZ cost of living if you factor in higher labor costs it will make everything even more expensive relative to income. Cheap temporary labor is great not only for the companies, it's good for the consumers too, bringing prices down and availability up. The backpacker is in and out, dosen't need medical care, social security and other services.
Many of the jobs that are low paid backpacker frendly, the locals aren't to keen to do. If you don't have them there, many busineses will close down, because margins can't support 100% local staff.