MBIE investigates exploitation of tourist workers

Cashmanager | 8 years ago

The Ministry of Business, Innovation and Employment is launching an investigation into work-for-board schemes.

The practice is widespread in backpacker hostels and accommodation, and is spreading into other accommodation providers.

MBIE is concerned that businesses are falling foul of the Employment Act and that tourists are being exploited for free labour.

 

Two organisations which facilitate this practice are HelpX and Willing Worfers on Organic Farms (WWOOF).

Stuff.co.nz reports that while WWOOFers are intended to work four-to-six hours a day on farms or lifestyle blocks, the term is used widely by travel websites to advertise volunteer jobs in places like motels and boarding houses. 

WWOOF New Zealand had 2000 registered hosts and more than 9000 visitors had been involved in the scheme.

From Stuff – “Phil Leslie manages the new $8 million 300-bed All Stars Inn where Arcos works. It has 13 paid staff and between two and 12 "WWOOFers."

Asked if he could run the business without the input of "volunteers" Leslie said "not effectively, no".

"It's not just me, 90 per cent of the industry does exactly what we do."”

Despite referring to volunteers as “WWOOFers”, the All Stars Inn is not registered as a host on the WWOOF NZ website.

 

Other accommodation providers also said they couldn’t afford to pay the people engaged in work-for-accommodation at their businesses.

Companies who conduct the practice said they could not run without this kind of free labour, either due to the cost of wages, or because locals were unwilling to work there. 

 

An MBIE spokesman said there were reports of backpackers working eight hours a day, or doing work on farms or vineyards without adequate training or safety equipment. 

It was estimated that the numbers of exploited travellers could run into the thousands.

 

The IRD confirmed that employers who offered food and accommodation in exchange for labour needed to pay PAYE and file a GST return based on the value of the benefit provided.

There was further concern that the exploitation of tourist workers was giving some businesses an unfair competitive advantage.

 

The investigation will hinge on the definition of voluntary work versus employment.