Investigations are underway into allegations of migrant exploitation at a now insolvent Auckland labour-hire company.
A group of nine former workers — now living in shipping containers at a Takanini property — allege they were underpaid long before Stone Paving & Concrete Finishing Limited went under. As they struggled to obtain new visas, and new work, they have little money to pay for a rental.
One of the Filipino workers, Christian Ragis, says the containers, offered free of charge by a local landscaper, were a step up from sleeping in their cars.
He told 1News, translated from Filipino, it had been “really difficult” because his family in the Philippines were also worrying about him, and whether they have enough food. He says his other colleagues have young children.
One colleague Justin Aspa, said they had few options — with no work and no money. Many of them said they sold land, put security against their homes, and borrowed to fund the approximately $10,000 in visa and relocation costs the company asked for.
Owner of the company denies workers’ claims
Company owner Mel Escobar told 1News he denied all the allegations. He said he’d been honest with the men about the economic challenges but they chose to come. He said work dried up throughout the year, and he was also owed money by others too, making it difficult for him to manage the business.
He said the $10,000 fee the workers paid was for recruiters and any funds he received paid for the men’s flights, which he couldn’t afford to do himself.
He referred all further questions to the liquidator, Pritesh Patel.
Patel’s initial report showed the company went into liquidation in early November with an estimated debt of $101,392. The liquidator expected that — as the workers claims were assessed — the debt could grow to in excess of $350,000.
He said his initial assessment of the company’s books showed cheques and payments began bouncing around 18 months ago — months before many of the workers 1News spoke with had arrived.
Patel says he was looking into their claims — but it was too early to make any conclusions.
“I wouldn’t quantify it as mismanagement at this point in time. I would say that it’s a [result] of the owner expecting that the market would pick up.”
MBIE confirms investigation
Ministry of Business, Innovation and Employment Deputy chief operating officer Jeannie Melville confirmed the department was also investigating the complaints — but said the ministry couldn’t comment further on the specifics while that was underway.
But she said, since the company was given accreditation, the settings have been tightened to minimise the risk of more workers arriving to find themselves out of work and struggling to find a new visa in the economic downturn.
“This company was accredited at the very beginning of our accreditation scheme… and we’re making a lot of additional checks to put some scrutiny over those this that were raised back last year in terms of migrant exploitation, and making sure particularly with employer accreditation, that we’re scrutinising financial documents and making sure that employers have the ability to pay.”
But migrant advocates have raised concerns that some of the changes, in particular the shorter time-frame around “exploitation” visas — where workers dissatisfied conditions or pay could move to another accredited employer — was making it even harder for workers.
First Union organiser Mikee Santos said workers should be entitled to more support as there aren’t the same rights for them as for local workers when they lost their jobs.
Minister says migrants can request priority
In a statement, Immigration Minister Erica Stanford said the six-month limit on the exploitation visa balances a migrant’s ability to find new work, without prolonging financially difficult situation.
“Where a person on an [exploitation] visa has secured a job offer with a new accredited employer and are concerned their new visa will not be processed before they visa expires, they can request that Immigration NZ prioritise their application.”
So far, only Christian Ragis had managed to find a new job, but it was still unclear whether he’d be able to transition onto a longer-term work visa.
But without it, he was worried whether he’ll be able to pay his own debts — or even his flight home.
