Australia's Fair Work Ombudsman inspectors found more than 80 percent of horticulture businesses in parts of Victoria were in breach of laws to protect workers. Photo: 123rf
Government officials are assuring that there are robust systems to prevent and expose breaches of worker protections in New Zealand, as widespread breaches are revealed in Australia.
Australia's Fair Work Ombudsman inspectors found more than 80 percent of horticulture businesses in parts of Victoria were in breach of laws to protect workers, following a three-year investigation.
In New Zealand, Inland Revenue has discovered $45 million in undeclared taxes in horticulture over the past 10 months, amid a Budget-boosted crackdown on business non-compliance.
The Ministry of Business Innovation and Employment's teams inspected, audited and investigated primary sector businesses, with powers to push for infringements or prosecutions for breaches.
Its lead labour inspector of strategic alignment in managing primary industries Kevin Finnegan said while New Zealand shared similar problems, Australia had a much larger scale due to greater migration and the vast spread of horticulture.
"Very, very confident it wouldn't be at 80 percent [in New Zealand]."
Finnegan said the dairy and horticulture sectors were key areas, as well as forestry and viticulture, with migrant exploitation a main focus.
"It differs from sector to sector and region to region as well."
He said complaints of migrant exploitation were slowing, and generally, business compliance by primary industry employers had improved.
"It's fair to say that those migrant exploitation complaints have slowed down and we run something very similar in the RSE space as well."
He said officials were not afraid to use punitive powers for breaches, which usually had negative effects on the companies.
MBIE was taking cases to the Employment Relations Authority from the dairy sector, and a handful of horticultural contractors in the coming months, he said.
"But predominantly, those are bad actors who create an uneven playing field and just give themselves an advantage, which commercially they're not entitled to, and it's at the expense of people.
"Now we have a much more integrated approach to dealing with the serious end of non-compliance.
"In some sectors, you could almost call it organised crime."
He said it kept close relationships with industry groups, and often carried out a multi-agency approach to complex investigations.
"Over the years we've worked very closely with these industry bodies, whether it's HortNZ, Zespri, New Zealand Apples and Pears and they've put assurance schemes in.
"Any bad apples, excuse the pun, will actually cause more harm to the brand, and these sectors do understand that."
Industry group Horticulture New Zealand's chief executive Kate Scott said the sector was committed to protecting the rights and wellbeing of all workers.
"Our growers operate in a complex and dynamic supply chain that includes a range of partners, including contractors and service providers," Scott said.
"We work hard to ensure our growers are well-informed about their tax and employment obligations, and we continue to engage constructively with Inland Revenue and the Labour Inspectorate to lift understanding and support compliance across the sector."
She said the Recognised Seasonal Employer (RSE) scheme was "highly regulated and well managed" to ensure compliance and strong protection for workers.
"In addition, HortNZ has launched its own pilot project, Whānau Moana Nui-to see how we can recognise those employers who we know go above and beyond in their commitment to worker welfare.
"The RSE scheme has supported New Zealand growers and Pacific Island communities for nearly two decades. Our growers are proud to be part of that legacy and contribute to New Zealand and the Pacific's shared prosperity."
Finnegan also described the RSE scheme as "one of the most highly regulated" labour schemes in the world, that he too said was "well managed" due to layers of support for employees and employers.
Anyone with concerns about non-compliance were being encouraged to report it to Immigration New Zealand.
Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
