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Home / Business / Companies / Airlines

750 Filipino workers fired yesterday from 10 building sites after recruiter ELE collapses

Anne Gibson
By Anne Gibson
Property Editor·NZ Herald·
21 Dec, 2023 03:29 AM4 mins to read

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ELE workers were at Auckland Airport's new transport hub: 27 were re-employed by another subcontractor on the same job, the airport explained today. Here's what the new hub is planned to look like once finished. Video / Auckland Airport

Around 750 Filipino migrant workers were on 10 New Zealand sites for failed construction recruiter ELE, a union boss said.

Mikee Santos, Union Network of Migrants’ co-ordinator, said all were fired just five days before Christmas.

Carpenter Guillermo Fabello at a meeting for migrant workers laid off by ELE. Photo / Sylvie Whinray
Carpenter Guillermo Fabello at a meeting for migrant workers laid off by ELE. Photo / Sylvie Whinray

“These 750 were working at these sites when suddenly they were told of the receivership. They went home, shocked and shaking and wondering what to do next,” said Santos of First Union.

“Of those 750, around 500 are on temporary visas and another 250 are on residents’ visas,” he said.

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Some of the 250 worked for Central Park-headquartered ELE in its administration and marketing divisions, Tagalog speakers recruiting others from the Philippines, he said.

Some workers were on Auckland Airport’s new transport hub. Others were at its new $200 million Mānawa Bay outlet centre - both giant projects aimed at transforming the precinct, he said.

But an airport spokeswoman said no workers were at the new outlet centre, only the transport hub.

“The receivership impacted 27 people working for a subcontractor at our transport hub development. Fortunately, all of these people have been re-employed by other subcontractors and remain working on-site,” she said.

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Santos said ELE workers were also laid off from the National Library site at 70 Molesworth St, Wellington.

Receivers at Deloitte in charge of ELE, founded by Brent Mulholland, said yesterday more than 1000 staff and contract workers were let go immediately.

Brent Mulholland founded recruiter ELE, which was put into receivership yesterday with 1000-plus workers laid off immediately.
Brent Mulholland founded recruiter ELE, which was put into receivership yesterday with 1000-plus workers laid off immediately.

“There are over 10 sites nationwide and the number of staff, workers and contractors is 1000-plus,” a Deloitte spokeswoman said.

Rob Campbell, a receiver, sent a letter on Wednesday which said: “We appreciate the effect this may have on your business and are also mindful of the many employees whose employment was required to be terminated.”

Santos said: “From all the blows we’ve suffered, this one cuts deep. From Auckland to Christchurch, people are affected. Christmas is just around the corner and we celebrate Christmas because we’re Catholic. We start celebrating in September,” he said.

ELE was a labour hire and recruitment business, now in receivership with Deloitte as its manager.
ELE was a labour hire and recruitment business, now in receivership with Deloitte as its manager.

The workers’ ability to stay in New Zealand was now under threat because many would find it hard to get new jobs, particularly at this time of the year, he said.

Those on resident’s visas could seek help from the Ministry of Social Development, Santos said.

“With those numbers, that’s the biggest failure in the construction sector this year by a firm employing Filipino workers. And Filipinos send their money weekly back home. It’s very hard for them to find jobs.”

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Many ex-ELE employees were First Union members, Santos said.

“We need to talk to Immigration NZ about this. Where will these people get money to pay rent? Construction shuts now and projects won’t be opening up until mid-January so workers will have to survive in the meantime.”

Dennis Maga, First Union general secretary, is concerned about those who worked for ELE until yesterday. Photo / NZME
Dennis Maga, First Union general secretary, is concerned about those who worked for ELE until yesterday. Photo / NZME

One worker in Manila for Christmas had learned from there what happened yesterday and was worried, Santos said.

Dennis Maga, First Union general secretary, called for workers affected to be absorbed by other construction firms.

But those businesses will need to have accreditation to allow them to do that, he said.

“These migrants are contributing to the New Zealand economy and should be allowed to continue working rather than being left in limbo just before the new year,” Maga said.

ELE’s receivership reflected poor labour market planning, he said.

Hugh Miller, employment group general manager at the Ministry of Social Development, expressed empathy for the hundreds of fired workers.

“We know this is a really difficult time for everyone affected. Our early response team have spoken with Deloitte about the situation and given them materials to pass on to the affected staff.

“These include contact details for a dedicated inbox where workers affected by the liquidation can reach out and discuss how we may be able to assist,” Miller said.

In 2018, ELE won the Deloitte Fast 50 fastest-growing services business Wellington-Lower North Island award.

Santos said a meeting for those affected by ELE’s receivership is planned at the First Union offices, 120 Church St, Onehunga, Auckland, at 5.30pm tonight.

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.

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