The 239 reported claims of underpayment in the Bay of Plenty's horticultural industry in the last five years is relatively low says the CEO of New Zealand Kiwifruit Growers Incorporated.

Mike Chapman says although underpaying any worker is unacceptable, given there are 20,000 people employed in the kiwifruit industry the total 239 Bay claims in five years is 'relatively low”.

There have been 239 reported claims of underpayment in the Bay of Plenty horticultural industry in the last five years.

The Labour Group of the new Ministry of Business, Innovation and Employment reports its inspectors have investigated a total of 239 complaints of underpayment from Bay of Plenty horticultural workers since 2007, with seven cases resulting in enforcement action against employers.

Mike says it never makes sense at any level for employers to underpay staff.

'If you want good work done on your orchard it is important to pay people appropriately for a proper job which means paying above the minimum wage.”

While underpayment is not acceptable, the figures must be viewed against the 9800 full time equivalent horticultural workers and additional 8600 casual workers, which equate to a total of 20,000 workers.

NZKGI isn't directly involved in employment of staff, but it has standard employment contracts, approved by the ministry, available to growers and contractors that sets out the minimum wage and employment conditions.

The Ministry reports the majority of non-compliance by employers related to holiday pay with 177 cases investigated. Forty-one of the 239 cases related to the minimum wage and eight to the Wages Protection Act of 1983.

The ministry advises some investigations may lead to the identification of a wider range of non-compliance issues affecting more than just the complainant, the total of 239 should not be confused with the number of complainants.

As a result of its investigations the ministry took one employer to the Employment Relations Authority to seek outstanding holiday pay in June 2010.

Legislative changes in May last year have given labour inspectors greater powers, which mean they don't have to take an employer to the authority.

Under the new rules, the ministry obliged an employer to enter into an enforceable undertaking to pay arrears of annual holidays payment and minimum wage payments to two employees. The employer also agreed to keep compliant wage and time records and provide written employment agreements.

In another case an employer has been required to review workers who have worked public holidays in the previous six years and to pay any arrears owing.

Four other employers have also been required to review wage and holiday payments of past and present employees and pay any arrears owing.