31 Jul 2019

Former staff say Welhaus building firm owes them thousands

6:51 pm on 31 July 2019

Former employees of a Canterbury-based building company say they are owed thousands of dollars in wages.

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Photo: RNZ/ Simon Rogers

Welhaus Limited and its sister company Welstruct build pre-engineered, panelised homes and are owned by businessman Dan Tremewan.

Former staff member Kerry Oberholzer, said she was forced to quit after going more than eight weeks without pay.

She said her pay stopped around late February.

Ms Oberholzer said the missed payments then progressively became worse from March.

"First of all it was a cash flow issue and then he [Mr Tremewan] started using the excuse, 'well we're going to change the pay frequency from fortnightly to monthly' ... but then last month it was already a month and then I never got anything," she said.

When Ms Oberholzer brought it up with Mr Tremewan, she said she was told she should not get upset in the office.

Ms Oberholzer was not alone in not being paid this year.

Anna McCarthy quit her job as a builder's apprentice at Welstruct, after going five weeks without pay.

Anna McCarthy

Anna McCarthy Photo: RNZ / Simon Rogers

Like Ms Oberholzer, Ms McCarthy had high hopes when she first started.

"I was keen to give it a try and try a building apprenticeship ... I gave it a try, did 10 hours a week for the first about four weeks and then sort of decided that it was something that I was kind of passionate about. I enjoyed it quite a bit so I signed a full time contract and became a builder's apprentice," Ms McCarthy said.

Ms McCarthy said she started part time because she was a victim of an assault in 2017, and was getting back on her feet.

But around March, she too started missing pay.

She said she too was told by Mr Tremewan that it was due to unforeseen circumstances.

Ms McCarthy said it got to the point where she just couldn't handle it anymore.

She said she tried hard to get back on her feet after the assault, but the weeks of borrowing money to stay afloat took a toll.

"Like for me to finally feel like I was getting my head sorted and get my feet and get everything right and ready then for it to all come crashing down, it just felt like it was all for nothing. Like there was no point trying anymore," Ms McCarthy said.

"I'd given it a try ... there was no point. It became very difficult. And if I didn't have such good friends I don't think I would be here right now. And that's hard for me to say."

It is the same story for Dom Vitkus, who was a carpenter for Welstruct earlier this year.

He said during his first month in March, things sailed smoothly.

But then, things started going downhill.

"So I kept asking... because if you don't ask you're not going to get... and you don't really need to ask for payments usually because it's part of the contract. So there were quite a few times, and not just me, my colleagues as well, we would get a couple of hundred bucks transferred to last us for gas," he said.

Mr Vitkus quit two weeks ago after seven weeks without pay.

He has since been paid most of his wages, but he says he is still owed one week's pay.

But it's not just employees that have been owed money.

Emails obtained by Checkpoint showed that door installation business J & G Doors, who subcontracted for Welhaus, were owed just under $22,000 for services completed in October.

J & G Doors general manager Andy Butler confirmed to Checkpoint last week that the money was still outstanding.

After a number of interview requests about the allegations of payment issues, Mr Tremewan finally agreed to talk to Checkpoint today.

He acknowledged that Welhaus had been behind in paying staff but blamed it on clients not paying Welhaus.

"Welhaus Christchurch hit some problems because it was not paid. Then that had a flow on effect. Yes the company has an obligation to pay its staff and my view is that is the first and foremost obligation. But the best way... what's great for the individual is not necessarily great for everyone as a whole," he said.

Mr Tremewan said the construction industry was prone to not being able to pay staff because of the difficulties in getting clients to pay up.

"You know, you have your two big clients and ... any two big clients you're working for any given month or two not pay, that has a huge effect," he said.

Mr Tremewan added that according to his records, three of the four employees who contacted Checkpoint had been paid in full and there was a genuine dispute in relation to what is owed to the fourth employee.