Migrant workers brought in by labour hire companies face job losses

A Filipino migrant worker says he is worried about how he will survive after being told he has lost his job. Photo / Sylvie Whinray

More than a thousand workers recruited by labour hire companies from overseas are now facing redundancies, the union for migrant workers says.

Workers recruited from the Philippines have been urged to accept leave with no pay until the job market improves.

Companies who brought workers into New Zealand, and are now in the process of discussing redundancies, include Extrastaff, Adecco and AIS Global.

First Union general secretary Dennis Maga said those now facing joblessness numbered “more than a thousand” and many distraught workers had contacted the union.

“Labour hire companies have been aggressively and unscrupulously recruiting workers from overseas since 2020 without understanding the local job market,” Maga claims.

“These workers from the Philippines came prepared to stay for five years and are at a loss how to explain this to their families back home.”

Some workers recruited from the Philippines by labour hire companies have been without a job since they arrived. Photo / Sylvie Whinray

One worker from Extrastaff told the Herald he was among a group of about 100 who arrived in April, and he had been “jobless since arrival”.

“They told us New Zealand was rebuilding after Covid and there was plenty of work in construction, but it was all a lie,” said the worker, who did not want to be named.

He had borrowed about $14,000 from lenders in Manila to pay for his passage here, and with no income most of that money is now gone.

“The company is now wanting to send us all home, but with that sort of debt hanging over my head I cannot go home,” he said.

As he had not been allocated any work, he was considered “yet to be employed” and therefore had not received any pay from the company, he said.

A worker from AIS Global group is worried about having signed a furlough agreement which puts him on leave without pay until the market improves. Photo / Sylvie Whinray

A worker with AIS Global Group for more than a year claimed he had felt pressure to sign a “furlough” arrangement.

This means he remains an employee of the company on indefinite leave without pay.

“I am worried this could be in breach of my immigration work visa rules, and I could be deported if I am caught staying here without working for AIS,” he said.

“I have rent to pay and I need to send money home for my family.”

The construction industry has seen a sharp downturn resulting in migrant workers layoffs. Photo / Jason Dorday

A spokesman for Extrastaff said the economic climate in New Zealand was challenging and demand for workers in construction has declined.

“The slowdown has been very quick, taking many in the sector by surprise,” he said.

“We have spoken with our commercial clients ... they don’t think there will be any significant change in how much labour they need in the short or medium term.”

He said the company was engaging with staff on a change proposal, some of whom are Filipino workers here on temporary work visas.

“Under the proposal, Extrastaff has offered to pay for their return home, and to pay them a small monthly allowance. We have also undertaken to bring them back here should conditions in the construction sector improve, and demand for workers increase,” he said.

Labour hire companies say there is a lack of prospective construction work. Photo / Jason Dorday

The spokesman said final decisions have yet to be made.

“We are in the unfortunate situation of needing to take these decisions,” he said.

“We have engaged with First Union and the Filipino Labour Attache throughout the process.”

In a letter to employees, Adecco country manager Ashley Alcock said “current workflows have been insufficient to sustain our carpenter, welder, steel fixer and builder labourer workforce with full-time work”.

He told the Herald this was a difficult and challenging time, and the company was supporting those impacted.

Dennis Maga, General Secretary of First Union. Photo / Alex Burton

“A number of construction projects we anticipated to commence, have not,” Alcock said.

“We are now in the very early stages of considering what impact the ongoing economic challenges may have on our business and its operation.”

Adecco was considering voluntary redundancies before a possible business-wide structural change.

“It is our hope that we achieve the required employee reductions through this voluntary process, and no further actions will be required,” he said.

Mike Milligan, director of AIS Global said one of its business units had been impacted by the construction industry downturn.

Staff had been urged to use up their annual leave entitlement, and when then is exhausted to then sign a furlough - or no pay leave - agreement.

“Currently we have eight staff without a site assignment, four of whom have been provided return flights to their country of origin at AIS’ cost to spend time with family as we work to secure new assignments,” Milligan said.

He said the company had engaged a third-party employment consultancy to provide specialist advice about the furlough arrangements.

Immigration lawyer Maricel Weischede. Photo / Michael Craig

Immigration and employment law specialist Maricel Weischede said the wave of redundancies affecting migrant workers highlighted a critical need for government intervention.

Weischede said a six-month open work visa should be granted to migrants affected to allow them to secure new employment and continue to support themselves.

“Such a policy would not only offer immediate relief to the workers but also provide employers with the necessary time to work on their accreditation and obtain approval for job checks,” she said.

“This approach would create a more humane and practical solution, avoiding the abrupt disruption of lives when workers are forced to leave the country on short notice.”