MBIE: Chinese KiwiRail workers not exploited

Chinese workers were not exploited or mistreated while fixing KiwiRail locomotives in New Zealand, an investigation has found.

The Ministry of Business, Innovation and Employment (MBIE) said it couldn't determine whether the workers were paid minimum wage, but it was likely New Zealand employment law did not apply to them.

The Chinese employers wouldn't provide wage records for the workers, citing privacy.

Labour MP Trevor Mallard alleged that the workers, who were removing asbestos from locomotives at KiwiRail's Hutt, Te Rapa and Picton workshops, were paid as low as $3 an hour, and were forced to live in cramped conditions.

MBIE's labour inspectorate investigated the claims and said it could not identify any welfare issues or breaches of New Zealand's minimum employment standards law.

Labour inspectorate general manager George Mason said it was more than likely New Zealand employment law would not apply to the workers, who were China-based and here only temporarily for work.

"Taking all these factors into account, the labour inspectorate has decided that no further action is warranted and the investigation is now closed," he said.

"The workers said during our investigation that they were paid for each day that they were in New Zealand. They did not work on New Zealand public holidays and when they were sick."

Mr Mason said it wasn't possible to tell whether they received the New Zealand minimum wage as employers Yongji and Dalian Locomotive -- both subsidiaries of China CNR Corporation Ltd -- didn't provide wage records on the basis of privacy.

The workers also declined to tell the labour inspector what they were paid.

The investigation found:

- Workers received regular breaks during the working day.

- They lived in accommodation that met their needs and had regular access to food.

- There was no evidence they lived in cramped conditions or had limited access to food.

- Their employer paid for their travel, insurance, accommodation and gave them a daily allowance for food and other expenses. KiwiRail provided lunch each day.

- They were paid for each day that they were in New Zealand, and didn't work on local public holidays and when they were sick.

NZME.