Taxman’s hiring plans worry union

Inland Revenue is increasing its use of temp agency staff – a move that will ‘‘exploit cheap labour’’, a union says.

The government department is set to hire 500 more workers, but where those staff are being sourced from has concerned the Public Service Association (PSA), which argues they will receive inferior pay and conditions.

‘‘We are deeply opposed to the growth of a second-class workforce in the public sector, and we will do everything in our power to oppose it,’’ PSA national secretary Kerry Davies said.

The issue comes months after four workers for Madison Recruitment, a New Zealand-wide recruitment agency, filed a legal case in the Employment Court.

The workers sought a determination that Inland Revenue was their employer, not Madison. Inland Revenue, which employs about 5000 people, has been approached for comment.

The department previously declined to comment on the matter because it was before the courts, and in an August statement said ‘‘these workers are employees of Madison Recruitment’’.

The parties involved in the legal dispute have been asked to file a statement of claim.

Earlier this month, Inland Revenue was criticised over its long wait times for answering calls, with staffing numbers cited as a major factor. Staffing was so low that nearly 700,000 people – representing 40 per cent of total calls – were disconnected before they even entered the calling queue.

Davies questioned why the department would hire almost 500 workers through temp agencies rather than train permanent staff.

Madison staff had previously been hired on 90-day trials, paid less than the living wage, and had not been entitled to meal allowances or overtime, which showed Inland Revenue wanted to ‘‘exploit cheap labour’’, she said.