Inland Revenue supporting 'second-class workforce' by increasing temp agency staff

Tuesday, 28 January 2020

Inland Revenue is employing more workers through temp agencies, which has angered a union.

Inland Revenue is increasing its use of temp agency staff – a move that will 'exploit cheap labour', a union says.

The Government department is set to hire 500 more workers, but where those staff are being sourced from has concerned the Public Service Association (PSA), which argues they will receive inferior pay and conditions.

'We are deeply opposed to the growth of a second-class workforce in the public sector, and we will do everything in our power to oppose it,' PSA national secretary Kerry Davies said.

The issue comes months after four workers for Madison Recruitment – a New Zealand-wide recruitment agency – filed a legal case in the Employment Court.

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NZ Public Service Association national secretary Kerry Davies says temp staff previously employed by Inland Revenue had not received the same benefits as permanent staff.

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The workers were seeking a determination that Inland Revenue was their employer, not Madison.

Inland Revenue, which employs about 5000 people, has been approached for comment.

The department previously declined to comment on the matter because it before the courts, and in an August statement said 'these workers are employees of Madison Recruitment'.

The parties involved in the legal dispute have been asked to file a statement of claim.

Earlier this month, Inland Revenue was criticised over its long wait times for answering calls, with staffing numbers cited as a major factor.

Staffing was so low that nearly 700,000 people – equalling 40 per cent of total calls – were disconnected before they even entered the calling queue.

Davies questioned why the department would hire almost 500 staff through temp agencies to plug the gap rather than train permanent staff.

The move undermined the pay and conditions the union's members received, and was also unfair to those hired from temp agencies, she said.

Madison staff had previously been hired on 90-day trials, paid less than the living wage, and had not been entitled to meal allowances or overtime, which showed Inland Revenue wanted to 'exploit cheap labour'.

'They are hardworking, skilled and valued by their colleagues at Inland Revenue, and their terms of employment should reflect this.'