A Japanese fishing company found to have underpaid staff in New Zealand waters has not yet owned up to its “clear exploitation”, say inspectors.
Watarai Company Ltd was found to have made serious employment breaches after an investigation by the Labour Inspectorate. It has been ordered to pay about $180,000 in unpaid wages and fines for its treatment of 18 Indonesian workers in NZ waters.
That includes $97,715.87 for minimum wage entitlements, a $80,000 penalty and $2071.56 for the Labour Inspector’s costs incurred pursuing the case, according to documents from the Employment Relations Authority.
Labour Inspectorate fishing industry lead Jeanie Borsboom said Watarai had refused service of all documents relating to the investigation.
That was unusual behaviour from a fishing company that had been investigated for employment law breaches.
“They need to put right what the authorities found that they’ve got wrong,” she told Stuff. “Those fishermen worked for half the minimum wage that they were entitled to, in no-one’s view is that okay.
“If they want to maintain a reputation, not just in New Zealand but in fishing globally, they need to engage the system and pay their arrears.”
The Labour inspectorate was looking at “all options” to make them comply with the ERA ruling. Borsboom declined to comment on specific methods.
The company hadn’t shown any interest in returning to NZ waters, she said.
Watarai was chartered by NZ Japan Tuna Company between May 1 and June 23, 2015.
Requests for comment from Watarai were unsuccessful.
Borsboom said the wages the crew received aboard the Koshin Maru 7 did not match the wages they were entitled to.
Their actual wages were calculated based on notes provided by a MPI observer on board the ship, as well as an analysis of work patterns.
“While the registration and chartering arrangements met New Zealand legislation requirements, the investigation uncovered clear exploitation of 18 Indonesian crew,” Borsboom said in a media release.
“It is very disappointing to see New Zealand operations which do not meet minimum labour standards in such a significant manner and put at risk a hard won reputation for sustainability in our fishery.
“This is particularly notable when it’s estimated the catch sale price of stock caught by the Koshin Maru 7 was at least $2,500,000,” she continued.
“There is no justification for underpaying employees under New Zealand employment law and we do not tolerate exploitation of any worker in New Zealand territories.
“This result sends a clear and strong message that the fishing industry needs to provide assurances this conduct will not happen in New Zealand waters again,” Borsboom said.
This is the second time in less than a year that a Japanese-owned boat chartered by NZ Japan Tuna Company has been penalised by the ERA.
Last July, Japanese fishing company Ikeda Suisan Company was found to have only paid 16 Indonesian crew members for half the hours they worked. The company was made to pay a $40,000 penalty and arrears of $82,252. That relates to an incident that occurred in 2015 as well.
The Labour Inspectorate has issued seven improvement notices since it started cracking down on the fishing industry in 2015. Those notices have forced companies to pay $727,937.04.
While she would not be drawn on specifics, Borsboom said there were “several” other investigations under way into the fishing industry.
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