Wine firm fined $120K for exploiting workers

A Marlborough wine business and its owner have been fined more than $120,000 for exploiting “vulnerable migrant workers” and failing to pay minimum wage.

Double Seven Services ran a viticulture labour contracting firm and paid its employees based on each piece of work they completed.

During a spot visit by the labour inspector, the regulator believed some of Double Seven’s employees might not be receiving minimum wage due to the piecemeal rates they earned.

Some workers also complained they were not completing enough pieces of work each hour to be paid the minimum wage.

After identifying what it believed minimum wage and holiday pay breaches, the inspector interviewed Double Seven’s director and owner Qin Zhang and he was unable to provide an adequate response to the alleged breaches or what appeared to be false entries in company records.

An investigation report was served on Zhang but he had no further involvement with the case, which the inspector took to the Employment Relations Authority (ERA) last year.

Neither Zhang nor Double Seven appeared at the ERA meeting, which proceeded in their absence.

ERA member Peter van Keulen released his decision released just before Christmas.

Van Keulen ordered Double Seven to pay $12,675 to affected workers and said the inspector had permission to come back before the authority and seek the money from Zhang if necessary.

The ERA then considered penalties and said the maximum the company could be fined was $1.2 million. Based on the breaches, Zhang could also have been fined $590,000.

Van Keulen fined Double Seven $85,000 and Zhang $42,500.

The company was also ordered to pay costs for the ERA hearing.