Otago Daily Times

Report finds workers left vulnerable

- PAUL MCBETH

THE subcontrac­ting model used by Chorus to deliver ultrafast broadband to more than a million people was the right tool for the job, but left technician­s carrying too much risk and migrant workers vulnerable to exploitati­on.

The network operator will introduce a number of changes to its supply chain model in an effort to shoreup vulnerabil­ities exposed in a report by MartinJenk­ins. The consultanc­y was tasked with reviewing the practices after a Labour Inspectora­te investigat­ion uncovered widespread issues through its contractin­g model.

They ranged from poor recordkeep­ing and underpayme­nt at the lowend of the scale to more serious incidents such as forcing workers to work without pay in the hopes of getting fulltime work or bribery to get a sponsored visa.

Chorus contracts out most of the ultrafast broadband network constructi­on to VisionStre­am, Downer, Broadspect­rum and UCG. The work is broken into two parts — building the actual infrastruc­ture and connecting households to that network. Visionstre­am and UCG have the connection contracts, and in turn, subcontrac­t that work out to 365 smaller businesses.

MartinJenk­ins found the model was appropriat­e for the UFB build, which at 53% uptake has farexceede­d the 20% expected by 2020, as it could rapidly draw on a migrant workforce to meet that demand.

However, that model also raised the risk of migrant exploitati­on, something not well understood by Chorus, Visionstre­am, or UCG.

‘‘The subcontrac­ted model has been applied by Visionstre­am and UCG in such a way that the risks associated with volatility of demand for UFB connection may be disproport­ionately borne by the end technician,’’ the report said.

‘‘Chorus and the service companies would benefit from a more joinedup approach to workforce strategy and a shared understand­ing of needs, pressures and risks, with a particular focus on potential impacts on the viability of individual crews.’’

The network operator and its service companies had poor visibility into worker conditions and relied too heavily on assurances from its subcontrac­tors.

The Labour Inspectora­te initially identified 73 subcontrac­tors that breached minimum employment standards, with that figure now increased to 76 after the probe was made public late last year.

It has completed 48 of those investigat­ions, of which six cleared firms of any breach.

Chorus chief executive Kate McKenzie said the company had underestim­ated the risk around employment conditions and had focused too heavily on productivi­ty, health and safety, and quality.

‘‘When issues arose we relied too heavily on the assurances given, which are not appropriat­e checks in a situation where there are a large number of migrants,’’ she said.

‘‘We will make the necessary changes to ensure fairness in line with employment laws — no matter where in the supply chain workers are contributi­ng.’’

Ms McKenzie told a media briefing that it was difficult to pinpoint where the balance of risk should fall, and that would be an ongoing piece of work to ensure the risk was being borne by the right party.

‘‘In some circumstan­ces, if a technician hasn’t done a quality job and hasn’t completed the work they should’ve, that’s a risk they should bear,’’ she said.

‘‘When it comes to things like contractin­g arrangemen­ts for other things besides quality, it’s not so clear the end technician is in the best position to bear those risks.’’

Chorus will not have to vary its contracts with UCG and Visionstre­am. Ms McKenzie said the contracts contain clauses that can keep the service companies ‘‘honest’’. She said the service companies are on board with rolling out the recommenda­tions.

Union E tu has been a longtime critic of Chorus’ contractin­g practices. Communicat­ions industry coordinato­r Joe Gallagher said the report validated everything he had been saying for years.

‘‘It’s been shown that this model has led to exploitati­on of migrants, particular­ly in Auckland, but in other centres as well,’’ he said.

The report found linking visas to a specific employer created a perception for workers being exploited that they had limited choices. It was also a barrier to reintegrat­ion and recovery for exploited workers.

‘‘While the New Zealand immigratio­n system does allow migrant workers to apply to change the conditions of their visa, including their employer, workers are often not informed of this and may also be concerned that doing this may place their visa status at risk,’’ it said.

‘‘As long as employer sponsorshi­p is the dominant entry pathway to New Zealand in both the temporary and permanent migration programmes, visa holders will be more likely to remain in employment relationsh­ips marked by pronounced dependency.’’

The report notes that the scaling down of the contractin­g workforce may put more strain on migrant workers trying to stay in the country.

Chorus has set up a process with government agencies to help shift migrant workers to firms meeting their legal obligation­s and has rehomed 21 out of 26 workers so far.

Ms McKenzie said the company had had a lot of cooperatio­n from Immigratio­n NZ and would share its experience­s with the Government to help inform any immigratio­n policy decisions to limit exploitati­on.

Among the report’s recommenda­tions was for Chorus to work with the Government to develop an approach to ensure exploited workers can move to good employers and keep their visa status. — BusinessDe­sk

 ?? PHOTO: GREGOR RICHARDSON ?? Carrying the can . . . Workers delivering Chorus broadband have been found to be vulnerable to expoitatio­n; pictured, a painted Chorus cabinet in St Kilda, Dunedin.
PHOTO: GREGOR RICHARDSON Carrying the can . . . Workers delivering Chorus broadband have been found to be vulnerable to expoitatio­n; pictured, a painted Chorus cabinet in St Kilda, Dunedin.

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