Action on broadband claims expands
More action is being taken against subcontracting firms accused of breaching employment law and exploiting migrants while building Chorus’ ultrafast broadband network.
Labour Inspectorate spokesman Michael Docherty said it had lodged a claim with the Employment Relations Authority against a third subcontracting firm, 3ML, and had issued infringement and improvement notices to a further
15 firms since its crackdown began in December.
A total of 13 UFB subcontracting firms have now received infringement notices for breaches of employment record-keeping obligations. These carry a fine of
$1000 per breach, up to a maximum of $20,000 in any threemonth period.
Another 21 subcontracting firms have been issued with ‘‘improvement notices’’ and two more have been issued with ‘‘enforceable undertakings’’ requiring them to enter into a formal agreement to ‘‘improve and rectify compliance breaches’’.
Docherty said action was likely against ‘‘all 72’’ subcontracting firms that it identified breaching employment law during a series of visits by the department, Immigration NZ and Inland Revenue in June.
The breaches it uncovered included failure to maintain employment records and failure to pay the minimum wage.
The enforcement action has encouraged Australian-listed law firm Shine Lawyers to seek support from fibre installers for a class action lawsuit against Chorus’ main contractor, Australian-owned Visionstream, and contracting companies working for Visionstream.
The E tu¯ union has thrown its weight behind the lawsuit. It believes about 3500 workers involved in building Chorus’ UFB network could have a claim to back pay, holiday pay and sick pay.