First Union’s transport logistics and manufacturing division is calling on government to regulate the ‘wild west’ labour hire industry.
It wants a licensing system after NewsHub revealed that Work and Income New Zealand has, according to one person, “coerced” unemployed workers to sign unlawful employment contracts with labour hire firms.
“The industry is flooded with employment agreements that don’t comply with New Zealand law,” says FIRST Union’s transport logistics and manufacturing secretary Jared Abbott. “It’s systemic.”
He says that working people who are on temporary contracts are treated like second-class citizens. “In our work we’re coming across more and more labour hire companies that aren’t paying holiday pay, that refuse to guarantee minimum hours, and that treat permanent workers like casuals.”
Employers and Manufacturers Association chief executive Kim Campbell believes that this initiative comes from overseas as “in New Zealand there’s not much mischief”.
He emphasises that labour hire has a legitimate place in New Zealand as it enables temporary workers and the unemployed to find jobs.
“Actually, I think First Union is confusing permanent and casual jobs and I suspect that it’s not coercion but tough love that’s going on – that is making it possible for people to work,” he says.
“The labour hire system isn’t broken. It works well.”
He highlights that in the event that an employer is not following due protocol, the labour inspectorate will take over. “Therefore there is no need for licensing!”
Licensing for labour-hire operators has recently been introduced in Victoria and South Australia following similar concerns raised across the ditch.
The First Union represents approximately 200 labour hire workers in the industry.
