Record complaints against employers as migrant worker numbers plummet in New Zealand

Complaints of exploitation, unfair treatment soar across country: report

Record complaints against employers as migrant worker numbers plummet in New Zealand

New Zealand is seeing a dramatic drop in the number of new migrant workers while simultaneously facing a record surge in complaints against employers.

According to data reported by Radio New Zealand (RNZ), more than 550 complaints were lodged last month alone, bringing the total number of complaints since the country's borders reopened to 4,300.

Immigration New Zealand (INZ) and the Labour Inspectorate are investigating complaints related to worker exploitation, trafficking, and modern slavery. These investigations follow concerns about workers being forced to pay premiums for jobs or being involved in illegal schemes.

Calls for policy change, migrant support

Advocates for migrant workers are demanding a stronger response to the growing issue of exploitation. Cam Bower, a former INZ serious offences investigator, now works with a charity aimed at breaking the cycle of abuse.

"Many people think of it as, 'it's just under the table payments' or that it's not that serious. These are really serious criminal offences," Bower told RNZ. He called for industry-wide efforts to make the supply chain safer, explaining that many workers become victims while only a few criminals profit significantly from their misery.

Migrants who file complaints about lost wages or unfair dismissals often find themselves re-victimized when companies shut down and fail to pay ordered compensation. Bower added, "All we're doing is allowing these guys to then go operate another business and exploit migrants again."

INZ steps up enforcement, but challenges remain

INZ has been actively investigating cases of abuse, with 271 investigations currently underway, said the RNZ report. The agency has revoked the accreditation of 500 employers, with another 130 suspensions, as part of its efforts to address the growing number of complaints. The agency aims to audit around 16% of accredited employers annually, but the sheer volume of complaints suggests that the problem is extensive.

INZ visa director Sarah Clifford noted, "Since 1 January 2024, MBIE has received 2361 allegations related to accredited employers." She added that INZ is not always able to collect detailed data on the individuals who file these complaints, which complicates the investigation process.

Despite efforts to hold employers accountable through warnings, suspensions, and prosecutions, INZ officials acknowledge that they lack the power to recover financial premiums paid by migrants to secure jobs. INZ’s investigations manager, Jason Perry, told RNZ that while the agency can prosecute employers involved in such practices, it is often difficult to provide restitution to the victims.

Visa numbers decline amid tightened policies

At the same time, New Zealand has seen a steep decline in the number of migrant workers entering the country. In July, fewer than 850 overseas workers arrived on accredited employer work visas, a sharp drop from 4,000 per month at the peak, said INZ.

The decline follows policy changes implemented in April, which introduced stricter requirements for work visas, including English language proficiency and higher skill thresholds.

Clifford explained that these changes are designed to ensure that migrant workers are only brought in when local workers are unavailable.

"Employers must engage with Work and Income before approval to bring in migrants will be granted for low-skilled roles," she said. Additionally, the maximum continuous stay for most visa holders has been reduced from five years to three years, further contributing to the decline in new arrivals.