Underpaid vineyard workers win wage battle

New Zealand Vines Ltd hires backpackers and migrant workers for Marlborough vineyards. Photo / Hawke's Bay Today

A company that paid vineyard workers as little as $2 an hour has lost a legal battle over unpaid wages.

Six workers have been awarded backpay after the Department of Labour took a case against New Zealand Vines Ltd to the Employment Relations Authority.

The case is the second time in seven months the company has been caught paying wages below the legal minimum of $12.50.

Two workers successfully argued last August they had been underpaid $2012 by NZ Vines, which hires backpackers and migrant workers for Marlborough vineyards.

Some were on a per vine rate, which under New Zealand law must at least equal minimum wage.

According to the Companies Office, the business is owned by a Blenheim resident called Tripta Tripta. She said this week she knew nothing about the case and the company was run by her partner Rajesh Luthera, also known as Rocky.

He said most cases were down to misunderstandings. Some workers had gone to the Department of Labour before he had a chance to pay them and one was the victim of a clerical error when wages were paid into the wrong account.

The majority of employees were happy, he said, but a small amount had complained because they were not fast enough to earn the equivalent of the minimum wage.

"We respect the law in New Zealand but sometimes what happens is people trying to squeeze you because of minimum wage," Luthera said.

More than 150 people worked for the company through the year and maybe five or six chose to "sit in the car" or have a "long smoko" because they were "entitled to minimum wage".

He said wages were paid according to timesheets brought in by the supervisor and a new system has been introduced since the latest authority hearing, on March 5.

Authority adjudicator James Crichton said the Department of Labour had experienced "continuing difficulty" with NZ Vines and "other employer entitities" associated with the company.

They included failure to keep proper employment records and to abide by New Zealand law.

Wine Marlborough seasonal co-ordination services manager Claire Wilson said she had had dealings with NZ Vines but refused to go into detail.

Owners of Blenheim hostels where some of the workers who won backpay stayed were not surprised by the case.

"It's nothing new but it's not doing our image any good," said one. "Often these youngsters get ripped off and they don't know the name of the company they had been working with, which makes it hard to follow up."

There are two relatively new voluntary registration schemes for contractors, both supported by industry leaders.

Wine Marlborough executive officer Gerald Hope said his organisation was fighting hard to weed out rogue operators.

"Our view is zero tolerance - if we hear of a complaint we authenticate it and forward it to the Immigration Service or Department of Labour."

New Zealand Winegrowers chief executive Philip Gregan said the majority of contractors met legal obligations and it was too early for compulsory registration.

"Give the two schemes a chance to operate first. We need to get people willingly on board."

Department of Labour spokesman Craig Smith said the organisation worked closely with businesses to ensure they were aware of legal obligations.

A spokesman for Minister of Labour Kate Wilkinson said she had requested more information about the matter.

The complaints:

* Iva Lednejova

Claimed to have worked 50.5 hours but was paid for only 20.7 hours. Luthera agreed more wages were owed and she was awarded $333.61.

Luthera said: "She was working with the wrong crew, clerical mistakes, it happens."

* Dennys Crenere da Silveira

Claimed to have worked 40 hours but was paid nothing.

Luthera claimed da Silveira had never worked for the company but the authority ruled against him and awarded $440.31.

"How am I supposed to pay someone I have never met?" said Luthera.

* Felix Neumann

Claimed to have worked 55 hours and was paid just $93. Based on the 14.2 per cent tax rate, that's less then $2 an hour. Luthera agreed with the authority more wages were owing and $512.70 was awarded.

* Philip John

Claimed to have worked 54.5 hours and received only partial payment. Luthera agreed more wages were owing and $513.72 net was awarded.

* Max Preussner and Linn Konrad

The couple claimed to have worked 47 hours and were unpaid until a lawyer got them $325.

Luthera agreed more money was owed and the couple was awarded $512.70.

Joseph.Barratt@hos.co.nz