The former owner of the Coin Saver chain in Whangārei has gone on trial facing multiple charges over the alleged exploitation of migrant workers, including claims they were forced to work up to 100 hours a week, lived in storerooms and were threatened with deportation if they complained.
According to a report by the New Zealand Herald, Snehal Suresh Patel and his company, Osh Enterprises, are standing trial in the Whangārei District Court. The company faces 15 charges relating to the exploitation of migrant workers, while Patel also faces an additional charge of blackmail.
In opening submissions on Monday, Crown prosecutor Danette Cole, appearing for the Ministry of Business, Innovation and Employment (MBIE), alleged Patel underpaid several workers by more than $1 million over a seven-year period, housed them in poor conditions and secretly recorded two employees before allegedly attempting to use the footage to silence them.
The court heard the workers had travelled to New Zealand on student visas or were seeking work sponsorship to remain in the country.
“To remain in New Zealand, the complainants required a path to residency. Mr Patel offered them assistance with obtaining residency by offering them employment with Osh Enterprises,” Cole said, as quoted by the New Zealand Herald.
According to the Crown, workers who accepted employment were promised accommodation but were not informed about the hours they would be expected to work.
“The court will also hear that the complainants did not have any family or close friends residing in New Zealand. This made it difficult for them to speak to anyone about their employment conditions,” Cole said, the New Zealand Herald has reported.
The prosecution alleges some workers were housed in store stockrooms, sleeping on mattresses with only basic cooking and bathroom facilities, while another employee later had to share the same space.
One worker allegedly received no wages during his first three weeks because Patel told him he was “in training”.
The court heard employees regularly worked from 8 am to 8 pm, seven days a week, before helping construct new stores until 2 am without pay. The Crown alleged Patel warned workers he would cancel their visas if they refused, as reported by the New Zealand Herald.
According to the prosecution, many employees worked up to 100 hours each week but were only paid for 40 or 60 hours, with no overtime. They also allegedly worked public holidays without receiving the legally required holiday rates, while accurate timesheets were not maintained, the New Zealand Herald has reported.
MBIE alleges Osh Enterprises owes workers a combined $994,465 in unpaid wages and a further $301,649 in outstanding holiday pay, the New Zealand Herald has reported.
The investigation began after a concerned acquaintance contacted the Labour Department about the employees' working hours.
The Crown told the court workers were reluctant to cooperate because they believed they were being monitored through CCTV and audio recording systems installed in the stores.
When Patel became aware of the investigation, he allegedly instructed staff not to speak with Labour Inspectors without him present.
“During this meeting, Mr Patel advised the complainants that if the Labour Inspectorate phoned again, they were not to speak to them without him being present. He stated that he needed to be present to hear what his employees said. The Crown says that by doing this, Mr Patel hindered his employees from disclosing the true nature of their employment conditions,” Cole said, as quoted by the New Zealand Herald.
The court also heard employees were allegedly instructed to submit false timesheets to make it appear they had received time off.
After the workers left the business, Patel allegedly believed one former employee had alerted authorities and threatened to release intimate recordings involving that person to members of the Indian community, the New Zealand Herald has reported.
The trial is continuing.
ISSUE
Leave a Comment