Carpenter Guillermo Fabello at the First Union meeting for those laid off from recruitment business ELE. Photo / Sylvie Whinray
Carpenter Guillermo Fabello at the First Union meeting for those laid off from recruitment business ELE. Photo / Sylvie Whinray
ELE, which employed more than 1000 people fired on Wednesday, asked some staff to take pay cuts or redundancy just before receivers were appointed, a union leader said today.
“Some of them were really scared because they feared losing their jobs and maybe being unable to stay inNew Zealand,” said Dennis Maga, general secretary of First Union whose members are some of the 1000+ workers left shocked after what happened this week.
Robert Reid, Dennis Maga and Mikee Santos at December 21 meeting for migrant workers laid off by ELE. Photo / Sylvie Whinray
Even before Wednesday’s shock receivership, the company was consulting with workers about a pay cut, Maga said.
Some hire workers, earning $35/hour, were asked if they agreed to taking $32/hour or face redundancy, he said.
Workers for the company founded by Brent Mulholland were told the offer came because ELE was facing a downturn due to lower demand from clients, Maga said.
Because the company had a diminishing number of contracts and fewer clients, it was concerned about whether it could maintain staff numbers, he said.
“Last Wednesday, we heard some of our members had been offered a pay cut proposal and the redundancy proposals. We told them this did not comply with the law,” Maga said.
Brent Mulholland.
Nothing was put in writing and it was only a verbal offer made earlier this month.
Just under 30 people joined last night’s meeting at First Union’s offices in Onehunga to discuss the workers’ plight.
These were ‘house leaders’ - those who head groups living in homes in Auckland where the Filipino workers live around New Zealand.
Other house leaders joined online from the Philippines, Maga said.
Just as the union was preparing its legal response to the pay cut and redundancy proposal, Deloitte was appointed receiver and manager, Maga said.
“We had to limit the number, otherwise we wouldn’t have been able to answer all the questions. The house leaders relayed the information to those they live with.
“We brought in immigration consultants and a legal expert to answer questions. We found out yesterday these workers were expecting a salary this week which they haven’t received. ELE has also encouraged them to apply for leave over Christmas and New Year.
“People asked if they were still expecting payment for their annual leave. The short answer is no. The company is under receivership so no payments will be made to staff,” he said.
Left to right: Mikee Santos, Dennis Maga and Robert Reid of First Union at Thursday night's meeting, taking to members online. Photo / Sylvie Whinray
The company was due to release money for salaries and annual leave and Maga said that might have prompted the receivership decision.
Few details have been released by Deloitte so far.
Rob Campbell, a joint receiver, wrote: “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.”
But Maga stressed that ELE was a good employer and even in a tough industry, its workers earned more than at many other labour hire businesses.
ELE was a labour hire and recruitment business, now in receivership with Deloitte as its managers.
“They paid much better compared to their competitors. We were surprised with this proposal two weeks ago. They were a leading labour hire company. So we’re surprised about the pay cut and redundancy plan, then what happened on Wednesday this week.”
The union hopes to discuss claims for workers’ pay with Deloitte, he said.
Around 750 Filipino workers were employed in the construction sector under labour hire and in the offices in administration and marketing for the same business.
Deloitte is now producing an initial report.
That will show debts, how much is owed to creditors, list preferential claims including unpaid wages and amounts owed to Inland Revenue, the names and addresses of creditors and the events leading up to the appointment of the receiver.
No date has yet been given for when that initial report will be issued.
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.
