Six-figure pay-out following employment breaches

A Japanese fishing company must pay more than $120,000 in fines and reparations after committing a number of serious employment breaches in New Zealand waters.

Ikeda Suisan Company was fined $40,000 by the Employment Relations Authority after a Labour Inspectorate investigation uncovered unlawful working conditions aboard the Hoshin Maru 77.

The inquiry found that, in the space of just 50 days, the ship’s captains failed to record 5,200 hours of work done by the 16 Indonesian employees on board.

“These are clear breaches of the employer’s obligation to keep accurate time and wage records, and pay minimum wage for every hour worked,” said Labour Inspectorate national manager Stu Lumsden.

“What this meant in practice was that on average, these 16 Indonesian employees were only being paid for half the hours they actually worked,” he continued.

In addition to the $40,000 fine, the company also repaid $82,252 to those affected.

“While we are pleased this employer has since paid back the arrears to the workers, the exploitative nature of these breaches is disappointing,” said Lumsden.

“The Inspectorate takes these breaches very seriously as these employees were in a vulnerable position, with it being unlikely they would’ve been aware of their rights and entitlements.”

Lumsden also notes that while the 16 Indonesian employees did not receive their entitlements, these same breaches did not extend to the six Japanese officers on board.

“The Labour Inspectorate has zero tolerance for any employers who fail to meet the clear standards set out in New Zealand employment law while fishing in our exclusive economic zone,” he concluded.