Labour practices in New Zealand’s primary industries are under renewed focus after Australia’s Fair Work Ombudsman found major compliance failures in its horticulture sector.
More than 80% of audited businesses in parts of Victoria were found to be in breach of worker protection laws. New Zealand authorities have responded by affirming the strength of local oversight systems.
Labour Inspector Expresses Confidence in Compliance Standards
Kevin Finnegan, the Ministry of Business, Innovation and Employment’s (MBIE) Lead Labour Inspector, expressed strong confidence in New Zealand’s compliance compared to recent figures from Australia.
“Very, very confident it wouldn’t be at 80% in New Zealand,” he said.
MBIE continues to carry out inspections, audits, and prosecutions across horticulture, dairy, forestry, and viticulture.
Authorities Target Tax and Labour Breaches Through Enforcement
New Zealand’s Inland Revenue has reported $45 million in undeclared tax from horticultural businesses within 10 months. The figure reflects intensified monitoring of compliance in the primary sector.
MBIE is taking enforcement action in parallel, with cases against dairy and horticulture contractors proceeding to the Employment Relations Authority.
“But predominantly, those are bad actors who create an uneven playing field and just give themselves an advantage, which commercially they’re not entitled to, and it’s at the expense of people,” said Kevin Finnegan.
“In some sectors, you could almost call it organised crime.”
MBIE Strengthens Industry Collaboration to Support Compliance
Government enforcement efforts are being supported by industry partnerships. MBIE is working closely with HortNZ, Zespri, and New Zealand Apples and Pears to encourage compliance and safeguard the sector’s reputation.
“Any bad apples, excuse the pun, will actually cause more harm to the brand, and these sectors do understand that,” Finnegan noted.
Kate Scott, CEO of Horticulture New Zealand, reinforced the sector’s commitment to standards. “Our growers operate in a complex and dynamic supply chain that includes a range of partners, including contractors and service providers,” she said.
“We work hard to ensure our growers are well-informed about their tax and employment obligations, and we continue to engage constructively with Inland Revenue and the Labour Inspectorate to lift understanding and support compliance across the sector.”
Officials and Industry Leaders Endorse RSE Scheme as Best Practice
The Recognised Seasonal Employer (RSE) scheme continues to receive strong support from both regulators and horticultural leaders.
“The RSE scheme has supported New Zealand growers and Pacific Island communities for nearly two decades,” said Scott. “Our growers are proud to be part of that legacy and contribute to New Zealand and the Pacific’s shared prosperity.”
Finnegan added that the programme is “one of the most highly regulated” and “well managed” globally. HortNZ has launched “Whānau Moana Nui,” a pilot to recognise high-performing employers in the scheme.
MBIE Encourages Public to Report Non-Compliance
Public reporting plays a key role in identifying breaches, Finnegan said. “Anyone with concerns about non-compliance was encouraged to report it to Immigration New Zealand.”
Joint efforts between agencies and the private sector aim to preserve fairness in the labour market.