Bottle store employees not paid minimum wage, holiday pay

Thursday, 13 June 2019

Grafton liquor store owned by Shalini Limited sole director and shareholder is Venu Mohan Reddy Beerapu.The company has been ordered to pay $200,000 for failing to pay minimum wages and holiday pay for migrant workers.

A business that operated liquor stores and a dairy in Auckland has been ordered to pay almost $200,000 in penalties and unpaid wages.

The Employment Relations Authority has ordered Shalini Limited to pay $96,542 in minimum wage and holiday pay arrears to seven migrant workers.

Shalini has also been ordered to pay $100,000 in penalties after a 2017 investigation by the Labour Inspectorate.

The investigation related to seven retail assistants working in Lifeline Dairy, Grafton Liquor Spot and Bottle-O in Parakai.

Venu Mohan Reddy Beerapu is Shalini Limited's sole director and shareholder.

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Investigators found the employees consistently worked long hours and did not receive their minimum wage and holiday pay entitlements, including not being paid correctly for work on public holidays.

This was the second time Shalini had been investigated for labour breaches.

Shalini's sole director and shareholder is Venu Mohan Reddy Beerapu, Companies Office records show. Its registered address is in Epsom.

He was known as Mr Reddy, the Employment Relations Authority decision said.

It said there was clearly an inequality of power. All of the workers concerned were migrants, and four were dependent on visas tied to Shalini.

'These workers were in a particularly vulnerable position not only because their employment was linked to their work visas with Shalini but also because they were unfamiliar with New Zealand laws and regulations. In addition, two of the employees were renting accommodation from Mr Reddy that heightened their vulnerability,' the determination said.

Affadavits filed on behalf of one employee detailed how they had complained about their hours and pay, but 'I felt that I couldn't do much about this as I was only allowed to work for Shalini Ltd if I wanted to stay in New Zealand'.

Stuart Lumsden, the national manager of the Labour Inspectorate, said the Shalini case was the latest in a long line of investigations involving liquor stores.

Since 2012, more than 60 investigations into liquor retail businesses have been completed by the Inspectorate, including those trading under large franchise brands.

'We are deeply concerned about the trend of local liquor shops breaching employment standards, seemingly with no regard for the law,' Lumsden said.

'Many are part of recognised brands which appear to have no effective measures in place to provide assurance that legal requirements are being met.'

Lumsden said he questioned how people who exploited workers could be meet the necessary character requirements to hold a liquor licence.

'Franchise owners and associations need to take steps to ensure businesses trading under their brand are applying lawful and ethical practices,' he said.

'If they don't, one non-compliant business can create a bad name for the whole franchise. Owners should be very clear about what and who they are branded with.'

The Inspectorate was currently investigating 12 liquor stores trading under the Bottle-O franchise.