Decision ‘opens floodgates’ to ban rogue operators
A Tokoroa bottle store exposed by
for its owners’ long history of alleged exploitation of migrant workers must now close within 30 days – a final ruling that one expert says could ‘‘open the floodgates’’ to shut down other rogue operators.
The Labour Inspectorate has used the ruling to warn liquor franchises – singling out two major chains, Thirsty Liquor and Brews – that it was time to improve, or face the consequences.
The Alcohol Regulatory and Licensing Authority (ARLA) has this week turned down an appeal by Two Brothers Ltd, which runs Tokoroa’s Thirsty Liquor store, backing an original decision by the South Waikato District Council’s liquor licensing committee to deny them a new licence.
The ARLA decision was the final stop for brothers Taranjeet and Jaspreet Singh Janda, who must now lock the doors on their store by May 13.
Stuff’s reporting, which included exposing how three former employees in the brothers’ liquor empire claimed they were owed over $400,000 in lost wages and were paid as little as $8 an hour for working weeks of up to 90 hours, was cited in evidence at the original hearing.
Previous case law had been understood to say that employee exploitation was not a crucial factor in deciding whether store operators were ‘suitable’ to hold licences. This new decision is important because it sets a precedent that can be used in multiple cases.
All bottle stores must renew their licences every three years, creating opportunities to challenge those licences for the police, the Medical Officer of Health and licensing inspectors, who have to report on all liquor applications, but also MBIE and community activists.
Lawyer Grant Hewison, who has appeared at many liquor licensing hearings and represents Auckland alcohol pressure group Communities Against Alcohol Harm (CAAH), said it was a ‘‘very significant decision’’ that would be used to challenge not just licence renewals, but also to cancel existing licences.
‘‘Licensees who have breached employment obligations . . . should be on notice that it’s likely the agencies will be proactive in challenging licences who have . . . exploited workers, and they might be wise to consider their future in the industry,’’ Hewison said.
Hewison said CAAH and some trade unions would also be likely to use the new ruling to mount opposition to rogue operators. Significantly, the Labour Inspectorate – which investigates claims of employee exploitation – said it would start compiling evidence and supplying it to the three reporting agencies.
‘‘As these stores come up for renewal we will be looking to see if we have any history and should be looking more closely at them,’’ said national manager Stu Lumsden. The Inspectorate was pleased with the decision. It had advocated for a change in interpretation of the law for some years, he said.