Otago Daily Times

Viticultur­e contractor exploited workers

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BLENHEIM: The Labour Inspectora­te has asked the viticultur­e industry to check its supply chains to prevent wine labels being produced by exploited labour.

A Marlboroug­h vineyard contractin­g company, Double Seven Services, and its owner have been ordered to pay more than $127,000 in fines and unpaid employee entitlemen­ts.

The Employment Relations Authority (ERA) made the order on finding the company had falsified and failed to keep wage and leave records for 199 migrant workers.

The company has been penalised $85,000 and its sole share holder, Qin Zhang, $42,500 for 59 breaches of minimum employment standards, including underpayin­g wages and holiday pay, and not providing employment agreements for 104 workers.

Labour Inspectora­te regional manager Kevin Finnegan said the workers were paid unlawful ‘‘piecemeal’’ rates for their work.

Double Seven has also been ordered to make wage arrears totalling nearly $8000 and pay more than $5000 for charging one worker a premium to have his job.

The ERA determined the full extent of losses to all employees was not known, as mandatory employment records were not kept by the company, but assessed that total wage underpayme­nts were more likely to be $65,000.

Mr Finnegan said it was the second determinat­ion in two months involving a viticultur­e contractin­g company, following an inspectora­te investigat­ion on a viticultur­e contractin­g company for worker exploitati­on.

‘‘Despite this company ceasing to trade over a year ago, penalties and arrears will be pursued in full,’’ he said.

Mr Finnegan said the onus was on all wine businesses to thoroughly check their supply chains to make sure their wine labels and products had not been produced in any way with exploited labour.

He said it could have a devastatin­g effect on a business’ reputation.

‘‘The potential for investors to withdraw from the industry because of poor social practices is high, if changes are not made,’’ Mr Finnegan said.

He said a call has now gone out for the Sustainabl­e Winegrowin­g New Zealand programme to include employment standards and labour hire components into the certificat­ion scheme for all the businesses it certified. — NZME

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