ELE group collapse: Workers forced to sleep in cars, owner pleads for payment

Some of the workers abruptly laid off before Christmas by labour hire company ELE going into receivership are sleeping in their cars, as the firm’s owner pleads for money to pay those who once worked for the business.

First Union general secretary Dennis Maga said today up to 24 ex-ELE workers on Auckland and Hamilton building sites had been forced out of rental accommodation.

All up, about 750 Filipino workers were fired from 10 building sites.

Maga said many fired staff could not afford weekly accommodation or monthly power bills, so to survive they had taken to their vehicles, having told family in the Philippines they could not send home any money. The Philippines Embassy has been “providing some financial assistance”.

Meanwhile, ELE owner Brent Mulholland this week pleaded for clients to pay money so those workers could be paid, indicating some clients were taking advantage of the situation.

All up, about 1000 people lost their jobs when on December 20, Mulholland put ELE, ELE Holdings, ELE Management, Tranzport Solutions and RISQ New Zealand into receivership.

David Webb and Rob Campbell, of Deloitte, were appointed receivers and managers but are yet to issue their first report showing what happened and how much money is owed to the business employing about 700 Filipino workers.

First Union general secretary Dennis Maga with hundreds of packages being distributed shortly before Christmas to Filipino workers laid off by labour business ELE. Now, some of those workers are sleeping in their cars, he said today. Photo / Alex Burton

“Urgent announcement: former customers of ELE group, please pay your outstanding invoices!” Mulholland pleaded on LinkedIn on the last day.

“I want to address an important matter that is impacting on former employees and their families. If you were a customer of ELE and have unpaid invoices for services already provided, I kindly request that you settle them promptly,” Mulholland wrote.

The collapse of five ELE companies left an estimated 1000 people out of work last week. Photo / Sylvie Whinray

ELE had provided services for almost a decade, but using its receivership “as an opportunity to profit at the expense of the hard-working individuals who served your business is unfair and detrimental”, Mulholland wrote.

ELE’s processes were simple: a worker was hired for a specific job, paid by ELE as their employer, and then the client would verify the hours worked.

“You were then charged accordingly, with payment expected within the agreed-upon terms. Disputes over payment have become a common tactic to avoid fulfilling financial obligations,” he complained.

Brent Mulholland is pleading with all ex-clients to pay for completed work.

While ELE had a clear dispute resolution process, Mulholland said he would not delve into that in his LinkedIn post.

“Instead, I urge you to consider the consequences of withholding payment. Choosing not to pay because of the company’s misfortune only makes it harder for the receivers to collect what is owed. Ultimately, this failure to collect impacts the very people who served your organisation. The sooner the bills are paid, the sooner our former dedicated workers can receive their rightful compensation.

“Personally, I have put everything on the line to build a great business. I have sold all my assets, including commercial property and even my family home. I am now selling my last two investment properties, which were meant to secure my children’s future,” he wrote.

Mulholland said he was doing everything he could to repay the company’s debts “because I feel a deep sense of responsibility. My family and I are currently living in a rented property with no income or job. I have made significant sacrifices to keep ELE going, but in the end, sadly, I failed”.

Therefore, he humbly requested all ex-clients to pay for work and not exploit the unfortunate situation.

Volunteers distributed food parcels in Ōnehunga on December 24 following ELE's failure, which left 750 Filipino migrant workers facing an uncertain Christmas. Photo / Alex Burton

“Let us not profit from someone else’s misfortune, especially when it directly affects the workers who served you diligently. If you have a genuine dispute, please address it urgently with the receivers. Let’s work together to find a resolution and settle your outstanding account. Your co-operation in this matter is greatly appreciated,” Mulholland wrote.

Deloitte’s first report is not due until two months after December 20. Last month’s receivership notice cited the BNZ as a lender to the ELE businesses.

A Deloitte spokeswoman said before Christmas that the receivers were reconciling the group’s financial information across its many companies, as well as that received from third parties who are owed money.

ELE worker fundraising event at Kiwi Harvest, East Tāmaki, last month after the company went into receivership.

Once compiled, this would give a clearer view of the total amount owing across the group, she said.

“We are not yet in a position to release any numbers as some of this information is sensitive to the affected stakeholders who are the priority for all updates from the receivers. Once these have been communicated, we will be able to share initial numbers, which will also be included in our publicly available report that will be filed,” the spokeswoman said.

Deloitte was working with Immigration NZ, the Ministry of Social Development, support organisations and industry participants to help secure new jobs for the affected employees.

Mulholland had been co-operating and had responded to all requests for information and assistance, she said. However, he hasn’t responded to Herald inquiries.

Migrante Aotearoa New Zealand, based in Ōnehunga, is taking accommodation offers for the workers from those who want to help.

The organisation’s email address is migranteaotearoanz@gmail.com.

Anne Gibson has been the Herald’s property editor for 23 years, has won many awards, written books and covered property extensively here and overseas.