Chorus subcontractors under cloud

WELLINGTON: A union for migrant workers says Chorus subcontractors have been taking their employees’ cash for promises of visas.

An investigation by the Labour Inspectorate found 73 subcontractors working on Chorus’s ultrafast broadband network in Auckland failed to keep employment records, pay the minimum wage and provide employment agreements.

The investigation only confirmed what First Union’s general secretary Dennis Maga said he already knew — that Chorus subcontractors had been exploiting migrant workers for years.

He said workers were in a vulnerable position because they were desperate to get work visas but they were too scared to confront their employers about their unfair and illegal treatment.

‘‘They’ve been receiving promises from some of the subcontractors that if they ever accept the working arrangement such as cashing out some money from their salary and giving it back to the employer then they’ll be able to receive a sponsorship and extend their work visa in New Zealand,’’ Mr Maga said.

The investigation has so far focused only on Auckland, and there are several more phases before it will be completed, but Mr Maga believes the problem is nationwide.

He says the Government needed to toughen up on all subcontractors.

Last year the Government announced it would double the number of labour inspectors by 2020 in a bid to catch dodgy employers but Workplace Relations Minister Iain Lees Galloway said more needs to be done.

‘‘The Government can actually achieve a lot through its procurement practices.

‘‘What this also demonstrates is that a government that doesn’t have its eye on the ball can miss some really outrageous exploitation of workers in New Zealand and we have to bring that sort of thing to an end,’’ he said.

Mr Lees Galloway said immigrant workers had been let down by the governmentled ultra fast broadband project, which started in Auckland in 2011.

But he said Chorus also had to be held to account.

‘‘Principal contractors like Chorus must pay much closer attention to what’s going on in their supply chains,’’ Mr Lees Galloway said.

Chorus has launched its own independent review into the inspectorate’s claims and has asked former deputy state services commissioner Doug Martin to lead it.

Chorus chief executive

Kate McKenzie said the company was prepared to take responsibility for the problem.

‘‘Obviously nobody wants to preside over an environment where there are allegations of workers being mistreated.

Chorus held talks with the Labour Inspectorate yesterday.