29 January 2015
MBIE takes enforcement action against Opotiki kiwifruit industry employers
Enforcement action has been taken against eight employers in the Kiwifruit sector in the Opotiki area of the Bay of
Plenty following an operation carried out last year by the Ministry of Business, Innovation and Employment (MBIE).
The Ministry’s Labour Inspectorate and Immigration New Zealand, together with Inland Revenue visited 29 businesses
including orchards, pack houses and administrative offices to check their compliance with employment, immigration and
tax laws.
Labour Inspectorate Regional Manager Natalie Gardiner says MBIE issued eight Improvement Notices for 22 minimum
employment standard breaches. These include breaches of the Employment Relations Act 2000, the Holidays Act 2003, the
Minimum Wage Act 1983 and the Wages Protection Act 1983. Seven of eight Improvement Notices have now been complied with.
One is still being assessed for compliance by the Inspector. There were no illegal migrant workers located.
“The level of non-compliance identified during this operation was disappointing but consistent with the information and
complaints we had been receiving prior to our operation, particularly over a lack of time and wage recording which is
required by law,” Mrs Gardiner says.
“These systemic failings appear to be the result of a lack of understanding of the importance of accurate record
keeping, not only to meet legal requirements but also so employers can confirm they are providing their workers with
their minimum employment entitlements. This failure was a major contributor to non-compliance.
“The Ministry takes these employment law breaches very seriously and is working proactively to crackdown on such
activity through joint compliance operations targeting sectors and at risk workers across New Zealand.
“We will not hesitate to take action for breaches of employment law. Breaches will be subject to compliance action and
potentially penalties of up to $10,000 for individuals and $20,000 for companies. The Ministry encourages anyone in this
situation, or who knows of anyone in this situation, to call its contact centre on 0800 20 90 20 where their concerns
will be handled in a safe environment,” Mrs Gardiner says.
An Enforceable Undertaking is a voluntary commitment by the employer to address the breaches within a certain timeframe.
If that doesn’t happen, the Employment Relations Authority (ERA) can issue a compliance order and if that is not
followed, then an order for penalties. If for instance money owed to workers is not paid, the breach may go straight to
the District Court for civil debt enforcement proceedings.
An Improvement Notice describes the employment law breach, the date and steps by which the employer must comply. If the
employer fails to do so, the labour inspector may seek enforcement through a compliance order from the ERA. If the
employer still does not comply, the labour inspector may seek penalties via the ERA.
ENDS