Gloriavale link to honey highlights expectations of workplace fairness.
Controversy around working conditions at the religious community highlights expectations around fairness, writes
A West Coast businessman running a honey company owned by the Gloriavale Christian Community says payment of honey factory workers is none of his business.
But moves to enact antislavery legislation to prevent forced labour and worker exploitation could mean companies, especially if they are exporters, will have to take a greater interest in suppliers’ employment practices.
Major honey companies Airborne Honey and Comvita both say supermarkets and international buyers increasingly want assurances that all workers in their supply chains are properly paid, and the Institute of Directors says those in governance roles have a responsibility to make sure it happens.
That includes people like Alan and Kate Monk, directors of Lamohka Ltd, a business they sold to Gloriavale’s Forest Gold Honey two years ago in a deal allowing them to retain their directorships, and to continue marketing and distributing ma¯ nuka honey packed for the label at the community’s Haupiri factory.
The status of Gloriavale’s workforce was investigated by the Ministry of Business, Innovation and Employment (MBIE) following claims those helping run the registered charity’s businesses were overworked and handed any earnings to community leaders. The ministry is awaiting advice from Crown Law before deciding how to proceed.
Gloriavale’s Christian Church Community Trust financial statements to Charities Services since 2009 include volunteer numbers and have consistently said no one was employed in full or part-time paid work.
Alan Monk said workers at the Forest Gold factory should be paid, but it was none of his business, he did not know whether they were, and he would be uncomfortable asking Forest Gold about pay rates.
‘‘I do care, but it’s not my responsibility, it’s MBIE’s responsibility.
‘‘Every time I’ve gone out there [to the factory], people I speak to are very happy.’’
Monk later confirmed Forest Gold had told him the honey factory workers were paid, but said he did not go into whether they received at least minimum wage, which he says is up to the ministry.
‘‘I only assume that they were paid a minimum wage . . . they have to meet the requirements of the law, so they said that they did.’’
A man who answered the phone at the Forest Gold factory said ‘‘of course’’ the workers were paid, but he was ‘‘not at liberty to disclose’’ whether they received minimum wage, and the company did not respond to written questions.
Other established honey industry players say supply chain transparency is essential for export to international markets.
Comvita chief executive David Banfield says the company introduced the living wage and gender pay parity across the board last year, and ethical trading policies are now common.
‘‘You have to sign up to say you’ve got no child labour, no exploitation, no persecution, those type of clauses are pretty standard in normal trading agreements around the world.’’
Banfield says assurances around treatment of staff and contractors should also apply to smaller businesses.
‘‘At the end of the day, consumers want to know that the product that they are buying has come from organisations that have standards, and it’s way broader than minimum wage for me, it’s about hours, health and safety, it’s about general wellbeing, it’s about discrimination.’’
Institute of Directors chief executive Kirsten Patterson says businesses choosing suppliers should take into account their potential impact on brand and reputation, and they should be aware that ‘‘modern slavery’’ included situations where workers were not getting minimum employment conditions required by law.
‘‘It’s not enough for a director to say that they subcontract work out and how it gets
‘‘It’s not enough for a director to say that they subcontract work out and how it gets delivered is up to the third party.’’ Kirsten Patterson Institute of Directors chief executive
delivered is up to the third party.’’
MBIE is charged with enforcing the Minimum Wage Act, but national Labour Inspectorate manager Stu Lumsden says businesses have a role to play too, and failing to ensure contracted workers were treated fairly could damage a company’s reputation.
He adds that under the Companies Act, directors have a duty to act honestly, in the company’s best interests, with
reasonable care, and in a manner that complies with the law and the company constitution, if it has one.
Monk, who also part-owns and runs Greymouth’s Paroa Hotel, says he and wife Kate set up Lamohka because he wanted to get out of hospitality to spend more time with his family, and the aim was to ‘‘go global’’.
The couple sold Lamohka to Forest Gold because they could not afford the $20,000 annual membership of the Unique Ma¯ nuka Factor Honey Association which authenticates honey for sale and export, and Gloriavale provided that.
Monk says people give him grief about doing business with the Christian community, but it helped him get the business off the ground.
‘‘They gave us a leg up to try and get into selling ma¯ nuka honey . . . I can’t speak more highly of them, they’ve helped me so much.’’
He says under the terms of the sale agreement, they could buy the company back when it became profitable. But so far it had lost a lot of money, and had exported only about 1500 jars.
Monk argues that it is ridiculous to suggest he check that all his suppliers pay fair wages, including those associated with the hotel.
‘‘If I had to do that with every single company that I work with, I wouldn’t get anything done.’’
Patterson concedes it could be ‘‘really problematic’’ for small businesses where directors work in the business as well as holding governance positions carrying responsibility for supply chain issues.
‘‘I’m not saying it’s a legal duty from that perspective, but what we’re seeing very clearly in some export markets, there’s a requirement to do that?’’
Apiculture New Zealand represents about 2500 hobbyist and commercial beekeepers, and honey exporters.
Chief executive Karin Kos says the organisation’s code of conduct covers bee health, but not labour practices.
However, honey companies should expect contractors to follow labour laws, and some had service agreements to ensure compliance.
Kos says consumers want to know about the provenance of honey, so many small familyowned honey businesses make that a selling point.
‘‘And there’s got to be integrity around that story, that’s the bottom line I would have thought for anyone doing business.’’
Promotional material, including a YouTube video featuring the Monks and their children, described Lamohka as ‘‘owned and operated by a fourth-generation West Coast family’’.
After it was pointed out the sale to Forest Gold meant the ownership claim was incorrect, Monk said the video had been removed and would be re-edited.