Kiwifruit investigation uncovers widespread employment issues
A labour hire company owing more than $25,000 to employees is just one of many found in breach of employment law, after a labour inspectorate investigation.
The labour inspectorate found 53 per cent of labour hire contractors in the Bay of Plenty’s kiwifruit industry were failing to meet all minimum employment standards, such as providing staff with employment agreements and paying at least the minimum wage.
It uncovered 94 breaches of minimum employment standards by labour hire firms after 62 audits and almost 690 interviews with employees.
Some contractors immediately addressed the breaches, but 20 improvement notices and six orders were issued to make employers oblige their obligations.
Two contractors were issued with an infringement notice and an improvement notice for $1000 each.
‘‘There are no acceptable excuses for employers failing to meet all minimum standards or provide people with all their minimum entitlements,’’ said inspectorate regional manager Kevin Finnegan.
‘‘Almost all of the employers found in breach were using migrant labour, which is concerning because these are vulnerable people who may not fully know their rights and entitlements,’’ he said.
‘‘Significant arrears were uncovered with one employer owing more than $25,000 to their employees, and it’s likely the lack of records is disguising more widespread non-compliance with minimum wage.’’
Finnegan said that since the investigation three months ago the kiwifruit industry had taken steps to comply with employment law.
‘‘These kinds of cases have the potential to damage New Zealand’s reputation as fair and equitable, which is important with consumers increasingly demanding products are ethically sourced.’’
"These kinds of cases have the potential to damage New Zealand's reputation as fair and equitable." Kevin Finnegan, Labour Inspectorate