logo
Southland dairy farmer who exploited workers cops further fine

Southland dairy farmer who exploited workers cops further fine

Dairy farmer Reza Abdul-Jabbar. Photo: RNZ
A Southland dairy farmer who ripped off his workers has been penalised a further $15,000 for obstructing the employment authority's investigation.
Reza Abdul-Jabbar and his company Rural Practice Ltd was last year fined $215,000 after the Employment Relations Authority found he had breached multiple employment standards.
He was under-paying his three immigrant farm workers and ''invented'' pay records in an attempt to hide it from authorities.
Each employee had two versions of their contract and differing payslips so Immigration New Zealand (INZ) would not detect the underpayments.
Abdul-Jabbar argued no further penalties should be imposed and that he did not have the money to pay a fine.
But the authority said the information about his financial position was "incomplete".
Abdul-Jabbar claimed he owned nothing in his name, despite records showing he was a shareholder in companies that owned $2 million of property.
The Labour Inspectorate said the breaches were "persistent, systemic and deliberate" and the ERA agreed.
During the inspectorate's initial investigation Abdul-Jabbar claimed one of the workers owed $5,000 for recruitment costs paid by RPL to an agent in Indonesia on his behalf, and that the worker had agreed for this amount to be deducted from his wages.
However, he was unable to produce a receipt which led the Employment Relations Authority to determine 'it more likely than not this material does not exist.'
In imposing the $15,000 penalty, the ERA noted: 'The nature of RPL and Mr Abdul-Jabbar's conduct in obstructing the ERA's investigation was serious and sustained.
"The obstruction was not mere inadvertence or negligence.'
Abdul-Jabbar also appeared in the Environment Court at Invercargill last November where he was fined $71,500 on four charges laid under the Resource Management Act.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

New Zealand needs a cultural shift in infrastructure planning
New Zealand needs a cultural shift in infrastructure planning

NZ Herald

time2 days ago

  • NZ Herald

New Zealand needs a cultural shift in infrastructure planning

A sober reminder of the scale of our challenge came in June with the release of the draft National Infrastructure Plan from the New Zealand Infrastructure Commission Te Waihanga. The plan lays bare a troubling paradox; between 2010 and 2019, New Zealand's investment in infrastructure represented the highest proportion of GDP among OECD nations, yet we ranked near the bottom of the OECD for return on that investment. In short, we're not getting bang for our buck and we need to do much better. Part of that comes down to how hard it is to build things here. Over recent years, the time and cost of securing planning approvals, designations and resource consents has risen significantly. We often hear frustration about the layers of complexity, duplicated processes and the inability to get timely decisions. Unfortunately, the consequences are felt by everyone stuck in traffic or using our deteriorating public assets. The good news is that change is under way. Infrastructure New Zealand policy director Michelle McCormick. This year alone, we've seen a steady stream of initiatives to modernise the infrastructure system. The Government has begun reshaping the regulatory landscape with a major legislative reform programme. We have seen commencement of the new Fast-track Approvals legislation, which should help accelerate some critical projects by aligning all consents and other regulatory approvals via a one-stop-shop. A new National Policy Statement for Infrastructure will, for the first time, provide consistent national direction for how infrastructure is planned and delivered, alongside other important resource considerations. This will mean a more consistent approach and treatment of critical infrastructure, especially for national network operators such as NZ Transport Agency Waka Kotahi (NZTA), KiwiRail and Transpower, or other infrastructure owners and operators who currently need to convince 67 different councils of the need for asset development and standard maintenance activities. Phase two of the reform to the Resource Management Act (RMA) includes long-overdue updates to 14 existing and seven new national direction instruments. Infrastructure-related settings changes include telecommunications, renewable electricity generation, electricity transmission standards and the going-for-housing-growth package. These may sound like technical changes, but they matter. They help create certainty and reduce unnecessary duplication and overly bureaucratic approval processes. They also speed up decision-making, all while ensuring environmental standards are maintained. A cultural shift is also needed. For too long, our infrastructure system has been set up to say 'no' by adding hurdles and rarely removing them. The Resource Management Act has spawned 30 years of complex rules and fragmented planning across the country. While the current amendments and new and updated National Direction instruments will help, what is needed is a new planning and environmental management system that enables good projects to proceed, with appropriate safeguards. Getting to 'yes, with conditions' must become the norm. That won't happen overnight. Improving the rules is just one piece of the puzzle. We also need high-quality, timely environmental monitoring so decisions are based on reliable data. Reform of the Environmental Reporting Act is on the table and it's vital that this leads to better, more transparent information to support infrastructure decision-making. Importantly, the Government is also looking at ways to align regional spatial planning, improve housing development processes and introduce nationally standardised zones. This will help reduce the endless local variations that currently make infrastructure delivery so complicated and costly. As the Minister for Infrastructure has pointed out, 'across New Zealand, there are 1175 different kinds of zones. In the entirety of Japan, which uses standardised zoning, there are 13 zones'. New Zealand is special but I don't think we are that special. Simplifying the field, removing unnecessary over-complication and making the rules clearer for everyone can ease the way for infrastructure development and address at least one of the causes of our high project costs. The avalanche of legislative change is progressing. Work on the replacement RMA in the form of two new acts is well under way but is unlikely to be completed this parliamentary term. These changes will lay the building blocks for a better system, but installing a new regime that has cross-party support is critical. Our system settings must keep improving, the reforms we make must be implemented properly and we must hold on to the momentum for change. These are complex shifts and signal a new maturity in how we think about infrastructure; not as stand-alone projects solving isolated problems, but as part of our broad economic and social fabric. The reality is that system reforms don't get people excited like seeing shovels in the ground, but in many ways, they are even more essential. The way we regulate, plan, consent and deliver infrastructure in New Zealand is riddled with complexity, delay and cost. This doesn't just hurt the Government and our local councils, it harms every New Zealander getting to work, waiting for a hospital bed or learning in a substandard classroom. Many of today's changes won't be visible to the public immediately, but they are essential if we want to lift our performance, attract investment and deliver the infrastructure New Zealanders require over the long term. Infrastructure New Zealand is an advertising sponsor of the Herald's Infrastructure report.

Company, owner fined $15k for obstructing investigation
Company, owner fined $15k for obstructing investigation

Otago Daily Times

time6 days ago

  • Otago Daily Times

Company, owner fined $15k for obstructing investigation

A Southland dairy business and its owner — who have paid over $116,000 in arrears owed to three employees and were last year ordered to pay penalties of $215,000 by the Employment Relations Authority (ERA) for minimum employment standards breaches relating to those arrears — have been penalised a further $15,000 for obstructing the ERA's investigation. The company, Rural Practice Ltd (RPL) was ordered to pay a penalty of $10,000 and its owner Reza Abdul-Jabbar ordered to pay a penalty of $5000. Labour Inspectorate head of compliance and enforcement Joanne Hacking said the latest penalties imposed on RPL and its owner demonstrated the importance of co-operating and complying with the authority and its processes. Mr Abdul-Jabbar is a religious leader in his community and served as a religious adviser and mentor for at least one of the three Indonesian workers he was found to have exploited when the ERA penalised him and his business last year. Both the business and Mr Abdul-Jabbar were found to have breached minimum employment standards by not paying the workers the minimum wage, not paying certain holiday and leave pay appropriately, unlawfully deducting money from their wages, forcing the workers to pay premiums, and not keeping accurate wage and time records. During the initial Labour Inspectorate investigation into the exploitation of the workers, RPL and Mr Abdul-Jabbar claimed one of the workers owed $5000 for recruitment costs paid by RPL to an agent in Indonesia on his behalf, and that the worker had agreed for this amount to be deducted from his wages. However, the worker denied he had hired a recruitment agent and said he had not seen the invoice provided by RPL and Mr Abdul-Jabbar until the labour inspector showed it to him. During its investigation, the ERA asked to see evidence that RPL had paid the invoice and RPL, through Mr Abdul-Jabbar, subsequently provided a photograph of a receipt. But when asked for the original of the receipt, Mr Abdul-Jabbar provided a similar, but different, document without any accompanying explanation. This led the ERA to launch an own-motion inquiry into whether it had been obstructed. Chief of the ERA Andrew Dallas, who ruled on the obstruction case, found none of the "reasonably available and objectively verifiable, corroborative material, has ever been provided". He also found "it more likely than not this material does not exist". The actions of RPL and Mr Abdul-Jabbar had made the ERA's investigation process significantly more difficult for both the ERA and the labour inspector. Mr Dallas found an obstruction had occurred due to "the ongoing failure to provide evidence to corroborate the authenticity of two receipts — both materially different but said to be 'original"'. "The nature of RPL and Mr Abdul-Jabbar's conduct in obstructing the ERA's investigation was serious and sustained. The obstruction was not mere inadvertence or negligence," the ERA said. In a previous determination relating to this case, the employer had tried to mislead or deceive Immigration New Zealand and the Labour Inspectorate by providing them materially different versions of the same documents (IEAs and pay slips) and it was deeply concerning to see this type of behaviour impact the authority's process as well, Ms Hacking said. "This case underscores the critical importance of honesty and transparency in proceedings before the ERA, which relies on the integrity of the evidence presented to it." — Allied Media

Migrant exploiter probe obstruction: Dairy farmer Reza Abdul-Jabbar and business face $15k fine
Migrant exploiter probe obstruction: Dairy farmer Reza Abdul-Jabbar and business face $15k fine

NZ Herald

time7 days ago

  • NZ Herald

Migrant exploiter probe obstruction: Dairy farmer Reza Abdul-Jabbar and business face $15k fine

He was previously an imam at a mosque in Invercargill. Abdul-Jabbar, a community and religious leader who acted as a spiritual advisor and mentor for at least one of the Indonesian workers he exploited, was found to have breached minimum employment standards. Photo / Brett Phibbs He and his business did not pay the workers a minimum wage, did not pay for certain holidays and leave appropriately, unlawfully deducted money from wages, forced the workers to pay premiums and did not keep accurate wage and time records, the Employment Relations Authority (ERA) said. The obstruction arose when the Labour Inspectorate heard Abdul-Jabbar and RPL claim one of his workers owed $5000 for recruitment costs. It was claimed RPL had paid an agent in Indonesia on the worker's behalf and that the worker had agreed for the amount to be deducted from his wages. The worker denied hiring a recruitment agent and said he had not seen the invoice provided by RPL and Abdul-Jabbar until the Labour Inspectorate showed it to him. Abdul-Jabbar and his business did not pay workers a minimum wage, did not pay for certain holidays and leave appropriately, unlawfully deducted money from wages, forced workers to pay premiums and did not keep accurate wage and time records, the ERA says. Photo / Brett Phibbs The ERA asked for evidence that RPL had paid the invoice. Abdul-Jabbar then showed a photograph of a receipt. The ERA asked for the original receipt, and Abdul-Jabbar then provided a similar, but different document without any other explanation. The ERA then launched an own-motion inquiry into whether it had been obstructed. Andrew Dallas, chief of the ERA, said the document 'more likely than not ... does not exist'. Dallas said none of the 'reasonably available, and objectively verifiable, corroborative material, has ever been provided'. He ruled on the obstruction case, and found it had occurred due to 'the ongoing failure to provide evidence to corroborate the authenticity of two receipts - both materially but said to be 'original'.' The ERA called Abdul-Jabbar and RPL's obstruction 'serious and sustained - not mere inadvertence or negligence'. Labour Inspectorate head of compliance and enforcement Joanne Hacking said the ERA had already found in a previous determination that Abdul-Jabbar and RPL had tried to mislead or deceive Immigration New Zealand and the inspectorate. 'This case underscores the critical importance of honesty and transparency in proceedings before the ERA, which relies on the integrity of the evidence presented to it,' Hacking said. 'The Labour Inspectorate is pleased the ERA took the matter seriously, conducted a thorough inquiry and took decisive action to uphold the integrity of its processes. This sends a strong and clear message that deliberate attempts to frustrate ERA investigations are not tolerated.' Raphael Franks is an Auckland-based reporter who covers business, breaking news and local stories from Tāmaki Makaurau. He joined the Herald as a Te Rito cadet in 2022. Sign up to The Daily H, a free newsletter curated by our editors and delivered straight to your inbox every weekday.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store