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3 Mar 2024

NZ: Migrants left homeless after major labour supplier co. ELE Group goes into receivership; receivers say report not expected for 'some weeks still'

Hundreds of migrant workers were left without jobs in New Zealand when a major labour hire and recruitment firm, ELE Group, went into receivership just before Christmas 2023. Many were left homeless as they waited for a report into what they might be owed financially.

In comments to 1news a spokesperson for Deloitte acknowledged the struggle but said an investigative report would still be some weeks away from publication. He said the receivers were working hard to connect workers with new employers but a representative for Migrante Canterbury said a challenge had been having visa changes approved.

In January 2024, Rappler released an article outlining the impact of the case on Filipino workers. The article alleges between 500 - 700 Filipino workers lost their jobs after ELE Group went under receivership.

The article also emphasises how generally workers employed by labour suppliers such as ELE Group experience job insecurity and instability, due to the fact these companies contract labour to other companies. This means the workers are often contracted for short periods, meaning they are left with little security of tenure or the benefits regular workers are entitled to.

Rappler notes that some of the workers have not yet received their final pay since the company went under receivership because ELE's clients have not yet sent their pay due to the holiday period.

In March, it was reported ELE had been financially struggling halfway through 2023, when it lodged a request for additional funding to Deloitte, the network that represents it. Deloitte’s report revealed that ELE owes creditors a total of NZD12.3 million. Yet, allegedly despite this, ELE stepped up recruitment of Filipino migrants. Further, it was reported that Deloitte relayed to ex-ELE workers the computations of their final pay last month and Migrante Aotearoa expects distribution of payments by March.

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