Building company L2M Construction ordered to pay migrant carpenters more than $60k

The workers came to New Zealand specifically to work for the company. Photo / Getty Images

A small building company has been ordered to pay two migrant workers more than $60,000 after underpaying them and withholding wages during Covid-19 lockdowns.

Jianghua and Jinchun Chen had travelled to New Zealand from China specifically to work for Auckland’s L2M Construction Limited, according to a decision from the Employment Relations Authority released this week, signing employment contracts in their homeland before arriving in the country on February 1, 2020.

The pair lived in accommodation provided by the company, which initially they were not required to pay rent for. They told the tribunal the property was in poor condition and other workers slept in the living room.

The owner of the business, Liua He Tau Manu, told the authority he “felt sorry” for the pair as they couldn’t speak English and most of his communication with them was via a mobile translation app.

He said he was not in a position to arrange bank accounts or IRD numbers for them.

Initially, the pair were paid less than the $25 an hour wage they had agreed. When the first Covid-19 lockdown came along, the pair did not work and were not paid.

Returning to work as carpenters post-lockdown, the pair worked 45 hours a week but were only being paid for 40.

In early 2021, the workers claimed they were each owed 139 hours of unpaid wages. Manu told them he would pay the wages in the weeks to come.

By April, both told Manu they were resigning after they had repeatedly asked for the unpaid wages but been ignored.

In July, the men lodged a personal grievance with Manu. He never responded, so they took their claim to the authority. Manu and both former workers gave evidence at the hearing.

Manu accepted he did not pay the men during the Covid-19 lockdown. Authority member Sarah Blick found both men should have been paid for the one-month period, and ordered as such.

She also ordered reimbursement of just over $4000 for both men in other unpaid wages, around $2500 each in public holiday pay, and around $5000 each in annual holiday pay.

The authority then considered punitive penalties for the breaches. The decision said the workers were vulnerable as their work visas were sponsored by the business, their accommodation was provided and their English was limited.

“The aggravating factors include the fact the applicants were migrant workers who were entitled to be treated with respect in the New Zealand workforce,” Blick wrote in her decision.

The workers did acknowledge that Manu was a “good person” who had treated them well initially. The authority noted Manu had little understanding of minimum entitlements and was remorseful.

It was heard the business employed just two staff, including Manu.

The company was fined $15,000 - $3000 of which was to be paid to both men. The men also received $10,000 each in compensation for hurt and humiliation.

In total, Jianghua Chen is to receive $30,057, while Jinchun Chen is to receive $31,772. Manu was ordered to pay the Crown $9000.