Workers to begin picketing labour-hire companies today

For immediate release 26/07/2018

Workers to begin picketing labour-hire companies today as union calls for law change

The union representing over 2,500 labour-hire workers will begin picketing labour-hire companies from today as they call for labour-hire companies to improve business practice, and for the Government to take action to address the exploitation of labour-hire workers.

Around 30 workers from various companies will picket outside Coverstaff in South Auckland today (Thursday 26th July) on the corner of Galway Street and Neilson Street from 1pm to 1:30pm, as part of FIRST Union’s Real Work Real Jobs campaign.

FIRST Union Transport Logistics and Manufacturing Secretary, Jared Abbott, says the majority of labour-hire companies are not operating ethically, and are pushing the laws to the limits.

“They rely on the fact workers are desperate for work to avoid the risk of workers seeking legal remedies. These companies offer employment with almost no protections for workers, and almost always with contracts that do not comply with our current legislation.”

He says change is needed before more industries are affected by the weak legislation and poor business practice.

“Labour-hire agreements do not meet the requirements of the Employment Relations Act 2000. AWF is a textbook example of this, and this company is not the only one, it’s systemic.”

Mr Abbott says it’s common for large companies to use dozens or hundreds of labour-hire workers for indefinite employment.

“These workers are not covered by permanent employment despite providing fulltime work hours for years. Typically they are paid $3- $10 dollars less than the worker working alongside them.”

FIRST Union, the largest organisation advocating on behalf of labour-hire workers union is asking the government to allow workers the right to elect permanent employment with the host company where an assignment is for an indefinite period, similar to what currently exists for fixed term employees.

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What it’s like to be a labour-hire worker…

Labour-hire workers are typically some of the most vulnerable workers; mothers returning to work after having children, young people who’ve just finished secondary school, and recent migrants to New Zealand. They’re almost always on minimum wage and typically work in distribution centres, as courier drivers and for trucking companies.

Mr Abbott says labour-hire workers are more vulnerable to sexual harassment as the below distribution worker outlines;
“Me and a labour-hire worker were being sexually harassed by a manager. The labour-hire woman went home crying and never came back. I was a union member and complained to delegates, and we took action. The manager was eventually terminated but the labour-hire worker never got her job back.”
The Union is also aware of claims that some managers working for a host company have requested sexual acts in exchange for permanent employment.
It’s also common for companies to cease employment when they become aware an employee is pregnant.

He says for most labour-hire workers job security is a problem that seeps into every corner of their lives because start and end dates are not detailed in their contracts, nor is the rate of pay, type of work, or hours. If the worker wishes to terminate the work they must give notice of resignation whereas the company can effectively dismiss workers without notice.
“If they get sick, suffer a bereavement, or take leave, they often find their hours cut or completely lost. They never know if they have a job the next day, or if they’ll be able to make rent the next week, afford petrol to get to work, or afford lunch with for kids.”
A car parts distribution worker explains, “Over half the staff are labour-hire. If a manager doesn’t like someone, they just get (the company) to replace them”.

The lack of job security also means workers are too fearful to complain about anything. They do not wish to come across as ungrateful, or to give the employer a reason to cut their hours or dismiss them. Most are barely able to make ends meet, so to be terminated and face a mandatory 13-week stand down from the Jobseeker’s benefit is to greater risk for them.
A labour-hire worker for a major supermarket retailer details, “It’s difficult. There’s no stability. If we stuff up one day, you go home and you’re panicking thinking they might let me go the next day. It’s bad. It’s horrible. I just don’t understand”.
Workers are also afraid to bring up health and safety concerns, when they do, they risk being terminated as this employee details, ““I was told to wear a failed harness, that was completely unsafe, by my supervisor. They told me to suck it up and get on with it, just to wear it anyway. That it’s not likely that I am going to die if I fall. I raised a genuine concern about my safety and the manager warned me that I am an agency worker and that if I was too difficult then (they would end the contract)”.

The lack of job security causes financial hardship. Proof of fulltime permanent work is needed to rent or buy a house which labour-hire workers cannot provide. This often results in borrowing form unscrupulous lenders at much higher interest rates than banks.

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FIRST Union’s executive summary included in its submission on the Employment Relations (Triangular Employment) Amendment Bill

The core problem with the current practise of labour hire work is that the workers have limited, if any, job security.

FIRST Union believes the following four amendments will deal with the loopholes without impacting genuine labour hire situations:

1. The Bill should be extended to allow labour-hire workers to elect the host company as their employer if their employment is for an unlimited duration.

2. The union believes that when a labour hire worker commences working on a site where a collective agreement is present, the worker should be automatically covered by the terms and conditions of the most advantageous collective, which covers the work they are performing.

3. The worker should be able to automatically join the host employer as a party to the personal grievance, rather than having to apply to the Employment Relations Authority.

4. The language and definitions used in the current Bill have the potential to create confusion in certain scenarios.

We acknowledge there are limited circumstances in which labour hire arrangements are genuine and work for both parties. However, our submission will address the large majority of labour hire arrangements which are disingenuous and simply serve to replace permanent jobs with insecure jobs.

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