Underpaid workers recoup $ 35 million

At least $ 35 million has been paid in outstanding holiday pay by 25 companies and agencies after revelations of a payroll glitch in March.

But the Council of Trade Unions ( CTU) warns the figures are just the tip of the iceberg and the figure could be tens of millions more.

Information released to the CTU by the Ministry of Business, Innovation and Employment showed nearly 26,000 workers had been repaid money owed, with most receiving $ 500 or less.

Some workers had been owed up to $ 1800 in holiday pay which had been miscalculated in a payroll botchup dating back to 2012.

The companies that have now paid arrears include Datacom, Oceania Group and Stretton Clothing, according to ministry documents.

Labour Inspectorate manager George Mason wrote in response to the CTU’s Official Information Act request that a series of completed investigations had resulted in 25 businesses and agencies paying arrears.

A further 34 organisations were still being investigated including Fonterra, Auckland Council and ANZ.

The open investigation list included employers who had been brought to the Labour Inspectorate’s attention either by fitting the criteria or because a complaint had been received by the ministry.

Mason said it was important to note that breaches did not mean employers’ actions were deliberate. But even if underpayment was a mistake, the inspectorate took the breach seriously.

The CTU called the repayments “the tip of the iceberg”, saying the inspectorate was not well- resourced enough to make sure all businesses had paid workers their due.

“The information we have received also reveals ongoing investigations into a further 34 organi sations,” said CTU spokeswoman Huia Welton. “How much money is owed to these working people is unknown but it seems likely to be tens of millions.

“We believe that the problem is far bigger and that the Government has only dipped its toe in the icy water.”

The holiday pay problem was first identified at the ministry, which had paid some of its 3000 staff the wrong amount in holiday entitlements. Changes to the Holidays Act in 2003 had made payments more complicated.