Sunwin Technologies, a former Chorus subcontractor, ordered to pay more than $50,000 by Employment Relations Authority

The subcontractor had used unpaid volunteers to carry out fibre installation work. Photo / 123RF

A former Chorus subcontractor has been forced to pay more than $50,000 in penalties and wage arrears following a Labour inspectorate investigation.

Sunwin Technologies had been using unpaid volunteers to carry out fibre installation work, sparking the investigation in December 2017.

The ruling follows a $73,000 fine for another Chorus subcontractor, Clearvision, in May.

Chorus has now blacklisted a total of 38 subcontractors who were caught up in a sweeping Labour Inspectorate and Immigration NZ investigation late last year, which found 70 of 72 companies investigated were "systematically" breaching labour laws.

Sunwin and Clearvision are among those who were blacklisted.

Sunwin's two directors and shareholders, Ramesh Kumar Koney and Phani Kumar Chevendra, used six unpaid volunteers for six weeks work in 2017.

The Employment Relations Authority also found it had not paid the migrant workers minimum wage or holiday pay - and failed to keep employment records.

Sunwin Technologies created the volunteer programme hoping to develop new fibre technicians, the ERA report said.

"The intention was to provide interested people looking for work in the fibre installation industry with an opportunity to help expand their skills to make them employable.

"Sunwin intended and did offer volunteers paid employment after they had gained experience and if they were interested in pursuing a career in the industry."

The organisation told the ERA it believed the volunteer programme was legal and it determined Sunwin was not out to undermine workers' rights.

Sunwin Technologies was no longer operating as a business and both former directors told the ERA they had no intention to hire employees in the future.

In total, the organisation was ordered to pay $53,447 in penalties and wage arrears.

Each director, Koney and Chevendra, was ordered to pay $7527 in penalties to the ERA, meanwhile, Sunwin Technologies was ordered to pay $19,698.

The organisation was also ordered to pay $18,697.86 as arrears of wages to the Labour Inspector.