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Pinoy Abroad

NZ firm accused of exploiting Pinoy laborers


A recruitment firm in New Zealand has been accused of exploiting its Filipino laborers by allegedly employing coercive tactic to control their workers.

Citing a report by the news program "3rd Degree," New Zealand-based non-government organization Stand Against Slavery accused Tech5 of providing its Filipino workers with "substandard accommodation at exorbitant rates."

In a press statement, the NGO said the Filipino construction workers were charged $155 each per room "with three men to a room." It also said the firm made a verbal arrangement with the men before leaving the Philippines that they would be liable for the cost of their toolbox.

"But once in New Zealand that cost escalated to $7,700 each (now slightly reduced to $5,600 per person), and repaid at a rate of $125 per person per week for over a year," Stand Against Slavery said.

Filipino workers interviewed by "3rd Degree" said they were charged exorbitant fees for rundown housing. In a single flat, 14 workers are charged $150 each weekly to live in a six-bedroom villa, while eight others were made to live in a garage with a weekly rent of $155.

Intereset-free loans

Tech5 director John Wyatt, however, denied the accusations, saying their employees are provided "quality accommodations." He also said they had reduced the rent to $125 a week per worker.

"We're paying for gas, power, internet, Sky [cable], and then we'll put on the odd boxing match that they like and, like I said, there's no issue with the housing. I'm not quite sure why we're talking about it actually," Wyatt told TV3.

In a detailed answer, Tech5 clarified that its employees are briefed on the accomodation, tools, and transport fees they need to pay back during their time in New Zealand.

"Some workers going to other countries are forced to borrow from money lenders... if they want to take up job(s). We think that's unfair and is why we cover their costs via an interest free loan which is then paid back as a weekly deduction from their wages," Tech5 said in a letter to TV3.

But Reynaldo Lugtu, a Filipino Tech5 worker, said the contracts they reviewed in the Philippines didn't mention such fees. He said they were only informed of them in a second contract they were made to sign upon their arrival to New Zealand.

"We are all surprised, and naturally we ask each other why the contract is like that, you know, 'We don't know about here, sir.' We are afraid. That's why we can't talk much. We can say nothing, only sign. We can do nothing," TV3 quoted Lugtu as saying.

The firm said it has more or less 100 Filipino workers among its workforce.

Bonded servitude

Lawyer Paul Brown, who represents Filipino workers in Christchurch, said another point of concern with Tech5 contracts was an addendum imposing a bond of $10,000 to employees who terminate their employment before their set three years.

"I would call that an attempt at bonded servitude. That's a direct attempt to stop these guys working for someone else," he said.

Tech5 said it has never imposed the bond and has amended the cost so it "will only cover direct costs like the cost of airfares and tools that we provide to our staff."

"The bond is designed to protect us should staff leave to work for another employer, or return home, leaving us out of pocket for the costs we have incurred on their behalf," it said.

Christchurch is New Zealand's largest city in South Island. —KBK, GMA News

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