Alleged exploitation of backpacker labour under investigation
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.