ELE Group collapse: Concerns hundreds more workers at risk

By earthnews
11 months Ago

ELE Group collapse: Concerns hundreds more workers at risk

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By John Weekes of

An ELE worker fundraising event at Kiwi Harvest in Auckland’s East Tāmaki included donations and support from the labour hire sector and community groups.
Photo: NZME / Sylvie Whinray

Groups assisting hundreds of laid-off ELE workers say the crisis should prompt a review of how companies can recruit vast numbers of people without guaranteeing work.

Alvin Casaje from Filipino migrant workers organisation Migrante Aotearoa New Zealand said unions were in talks with Deloitte to claim for unpaid wages and other entitlements.

He said many more people nationwide could suffer the same fate as those who abruptly lost their jobs when five ELE companies went into receivership.

He said laid-off workers desperate for jobs needed to exercise some caution and not rush into signing new contracts without checking pay and conditions.

Casaje understood some other companies were pressuring the former ELE workers to sign new contracts.

Mikee Santos from Union Network of Migrants (Unemig) and First Union said the ELE collapse must spark a review.

“This massive case should prompt the Government to review the employment practices of labour hire companies that are allowed to recruit hundreds, if not thousands of migrant workers to work in New Zealand but cannot guarantee work.”

He said hundreds of migrant workers in the construction industry were either unemployed or underemployed.

Carpenter Guillermo Fabello is among the hundreds of people laid off just before Christmas.
Photo: NZME / Sylvie Whinray

“Hundreds more fear they will suffer the fate of ELE workers.”

ELE recruited staff in New Zealand and overseas for the building, manufacturing and healthcare sectors, and also offered refrigerated transport and freight services through a subsidiary.

Donations in more towns

Santos said more than 100 food packs would be distributed for workers in Auckland today at 120 Church St in Ōnehunga and other food packs would be distributed in Wellington, Tauranga and Blenheim.

Community groups, other labour hire companies, churches and individuals have donated in recent days to food banks but there seemed to be recognition that ongoing support would be needed.

Santo said in the new year, Migrante Aotearoa volunteers, First Union and Unemig would support more displaced ELE workers with final pay and other entitlements.

The groups also intended to help with access to financial aid, preparing CVs, visa queries, reviewing new job contracts, helping with food security and attending to people’s holistic wellbeing.

The groups said donations could be made to Banyuhay Aotearoa with BNZ account number 02-0528-0575777-001, and Migrante Aotearoa New Zealand at Kiwibank account 38-9015-0783387-01.

Affected workers can email aewvworkerresponse@mbie.Govt.Nz for help with immigration issues.

ELE Holdings, ELE Management, ELE Limited, Tranzport Solutions and RISQ New Zealand all went into receivership five days before Christmas.

Receivers at Deloitte previously said ELE Security was still trading.

* This story was first published by the New Zealand Herald.