Chorus blacklists sub-contracting companies after scathing report into migrant exploitation

Tuesday, 8 October 2019

Subcontractors hired by Chorus have been found to have committed multiple breaches of employment law.

Chorus has blacklisted 38 sub-contracting companies in an effort to stamp out migrant exploitation among its suppliers.

The sub-contractors were involved in rolling out Chorus' ultrafast broadband network nationwide.

The move is one of more than 30 actions taken by the company after an independent review by professional services firm MartinJenkins, published in April.

Of the 357 sub-contracting companies rolling out its audited by Chorus since the release of the report, 236 were found to be compliant and a further 104 were taking steps to improve their employment practices.

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Chorus chief executive Kate MacKenzie says the company will keep the supply chain under constant review.

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The report found Chorus had failed to sufficiently oversee the subcontracting model of Visionstream and UCG, whose own practices were 'not sophisticated enough' to protect those workers from exploitation.

In 2018, the Labour Inspectorate identified labour law breaches at 76 of the 365 mostly small subcontracting firms after a series of sweeps in Auckland.

Chorus chief executive Kate McKenzie said on Tuesday that while there was still more work to do, the changes would make a 'meaningful difference to the people working on our behalf'.

Breaches of employment law by sub-contracted businesses were are 'absolutely unacceptable, so we remain open to further reforms if they are proven necessary', McKenzie said

Chorus has blacklisted 38 sub-contractors in the aftermath of the review into labour practices.

Chorus has introduced a mandatory code of practice for suppliers and a portal that provides workers with information about their rights and where to get help.

McKenzie said the company was winding down the network roll-out and many of the workers on temporary visas would be required to apply for new visas or go home.

In April, Chorus admitted more than 100 firms involved in the network roll-out may have breached labour laws.

More than half of the 1600 workers hooking up homes to the network were migrants on temporary work visas, and that more than 70 per cent had English as a second language.

In 2018, the Labour Inspectorate identified labour law breaches at 76 of the 365 mostly small subcontracting firms that are connecting homes to Chorus' UFB network, after a series of sweeps in Auckland.

MartinJenkins' report said Chorus had since found a further 33 companies involved in possible breaches and was sharing the results of its investigations with the inspectorate.

The allegations included workers being underpaid, as well as a 'small number' of more serious allegations of workers being asked to work for free in return for the prospect of paid work, to pay cash back to their employer, and to pay bribes for sponsored work visas.

Evidence was presented to the Chorus' board three years ago that 'with hindsight' should have the alerted it to the risks, according to the report's author, former States Service deputy commissioner Doug Martin.

Migrant workers were afraid of reporting abuses because they were worried it could affect their right to work in New Zealand, Martin suggested.