Smiths City case triggers hundreds of complaints on unpaid work

Workplace Relations Minister Iain Lees-Galloway is concerned businesses believe they can still get away with practices ...
DAVID UNWIN/STUFF

Workplace Relations Minister Iain Lees-Galloway is concerned businesses believe they can still get away with practices like unpaid meetings.

A union representing retail workers has been inundated with hundreds of complaints after the Smiths City Employment Court decision.

Last Friday, it was revealed the court had ordered the national retailer to backpay staff on or near the minimum wage for six years' worth of unpaid morning meetings.

The company, which has more than 30 stores and 400 staff nationwide, has held the 15-minute unpaid meetings for sales staff for at least the past 15 years.

Compaints are flooding in after an Employment Court decision forcing retailer Smiths City to backpay staff for unpaid ...
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Compaints are flooding in after an Employment Court decision forcing retailer Smiths City to backpay staff for unpaid meetings.

First Union on Monday released a survey calling for members, and now non-members, to report similar instances where they had been asked to participate in unpaid pre-work meetings.

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"Once we have enough results to ascertain the magnitude of the problem, we will be pursuing the employers involved," retail, finance and commerce secretary Tali Williams said.

The Labour Inspectorate has also set up a system to categorise complaints on the issue, and is calling on employees who may have missed out on minimum entitlements to speak up.

National manager Stu Lumsden said the businesses that would need to backpay staff were those that failed to comply with the Minimum Wage Act by getting staff on or near the minimum wage to engage in unpaid work.

"This is simply about these businesses complying with their obligations – as the vast majority of New Zealand businesses do – and paying their staff at least the minimum wage for every hour worked."

Lumsden told RNZ some small business may go under as a result of having to backpay staff

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Since the Smiths City decision was reported on Friday, complaints have been made against a number of big box retail chains allegedly engaged in similar behaviour.

Have you had a similar experience? If so, email oliver.lewis@stuff.co.nz

Williams said it was too soon to have a clear picture of which companies were the worst culprits, but the survey had already confirmed the issue was especially prevalent in retail.

"It's snowballing into a complex picture that includes supermarkets to fashion retailers," she said.

The most common complaints involve employers expecting staff to get to work early to set up and open shop, and stay behind after their shift ends to cash up and clean up.

"The Employment Court ruling has set a precedent and reminded employers where the line is; if they ask staff to attend meetings or perform work duties and do not pay staff for their time it is illegal, and they will be hearing from us," Williams said.

The Labour Inspectorate planned to engage with business leaders and industry groups about the issue in the coming weeks.

Workplace Relations Minister Iain Lees-Galloway said he was concerned businesses believed they could still get away with practices like unpaid meetings.

"Unfortunately, these practices appear more widespread than we'd like," he said.

Employees who believe their minimum standards have been breached are asked to contact the inspectorate on 0800 20 90 20.

 - Stuff

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