The Press

Alleged exploitati­on of backpacker labour under investigat­ion

- AMANDA CROPP Does this story affect you? Contact Amanda.Cropp@fairfaxmed­ia.co.nz

The Government has launched a national investigat­ion into board-for-wages deals to test whether they contravene the Employment Act. The practice is widespread in the backpacker market, and is spreading to other accommodat­ion providers.

Labour Inspectora­te southern regional manager Stuart Lumsden said his office had received about a dozen complaints since February about exploitati­on of tourists through abuse of Willing Workers On Organic Farms (WWOOFers), a genuine volunteer scheme with a cultural exchange element to it.

‘‘There’s nothing organic about a motel . . Unfortunat­ely some people seem to be using it as a cheap labour source.’’

WWOOFers work four to six hours a day on farms or lifestyle blocks in return for full board.

WWOOF New Zealand has more than 2000 registered hosts and some 9000 visitors a year take part in the scheme, many of them from Europe.

Administra­tor Katrina Millener said they were upset that travel websites sites used WWOOFing to describe any job where payment was in the form of accommodat­ion, meals, free wi-fi and use of laundry facilities.

‘‘If it’s a job that somebody could be employed to do, then it’s not WWOOFing.’’

Last week backpacker­board.co.nz advertised 17 unpaid jobs in hostels and motels, some seeking people prepared to stay at least a couple of weeks.

The HelpX website lists hundreds of volunteer jobs all over the country. In Kaikoura alone it had 15 tourism businesses looking for wage-free workers, mostly for housekeepi­ng work, but duties at one B&B included picking up horse poo.

Argentinia­n tourist Maria Arcos is more than happy to stretch her travel budget by cleaning backpacker hostels in return for free accommodat­ion.

The 3.5 hours a day she spends housekeepi­ng at a backpacker­s in central Christchur­ch covers a dorm bed that would normally cost $33, and allows her time to explore the city.

Phil Leslie manages the new $8 million 300-bed All Stars Inn where Arcos works. It has 13 paid staff and between two and 12 ‘‘WWOOFers.’’

Asked if he could run the business without the input of ‘‘volunteers’’ Leslie said ‘‘not effectivel­y, no. . . .

‘‘It’s not just me, 90 per cent of the industry does exactly what we do.’’

He said Arcos’ remunerati­on was the equivalent of the minimum wage after tax. After talking to The Press he said he had adjusted the roster so volunteers worked five days a week, rather than six, to take into account the minimum adult wage increasing to $15.25 per hour in April.

Kaikoura motel owner Terry Thompson said for the past 18 years he had set aside one of his five motel units for volunteer workers. ‘‘Most of them stay for a week, but we like them to stay for a month so we can train them. I couldn’t afford to pay them, we’re not big enough.’’

Lumsden said ‘‘voluntary’’ work became ‘‘employment’’ when people had no choice over what hours they worked and what duties they performed.

Overseas workers were less likely to be aware of their rights and entitlemen­ts to minimum wage and holiday pay, and it was possible the numbers of young travellers being exploited ran into the thousands.

‘‘[Tourism accommodat­ion businesses] turn around and say, it’s the only way we can get anyone because the locals won’t work here, we don’t accept that.

‘‘Businesses who exploit migrant workers gain an unfair commercial advantage over their competitor­s, which impacts New Zealand’s economy.’’

Punakaiki Tavern owner Ian Ryder is glad to hear that MBIE is taking action because he spent months complainin­g to government agencies such as Inland Revenue (IRD) over unfair competitio­n from other tourism businesses using unpaid workers. ‘‘It’s morally wrong.’’

IRD confirmed that employers who offered accommodat­ion and food in exchange for labour must pay PAYE and do a GST return based on the value of the benefit provided.

Tourism Industry Aotearoa chief executive Chris Roberts said TIA did not encourage use of volunteers, but it was a common feature of the backpacker market globally and it appeared to be becoming more common here.

 ?? PHOTO: ALDEN WILLIAMS/FAIRFAX NZ ?? Argentinia­n tourist Maria Arcos has worked in several New Zealand backpacker hostels in return for free accommodat­ion.
PHOTO: ALDEN WILLIAMS/FAIRFAX NZ Argentinia­n tourist Maria Arcos has worked in several New Zealand backpacker hostels in return for free accommodat­ion.

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