Waikato Times

Decision ‘opens floodgates’ to ban rogue operators

- Steve Kilgallon Stuff

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.

 ??  ?? Taranjeet Singh
Janda
Taranjeet Singh Janda

Newspapers in English

Newspapers from New Zealand