25 Mar 2023

Underpayment leaves lasting trauma of Woop victims

8:59 pm on 25 March 2023
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Photo: 123rf

Interns underpaid by an Auckland food bag company say they've been left with questions after an Employment Relations Authority ruling.

Woop has been fined $39,000 for underpaying interns during work experience five years ago.

The issue was brought to light after interns who had come from overseas complained about their internship agreements, which stipulated they were to be contracted for 40 hours a week.

Woop, founded by French foodie Thomas Dietz, paid the interns for 20 hours of work.

By providing financial support to the interns, Woop created a situation that breached New Zealand employment legislation more than 20 times.

Under Authority member Rachel Larmer, the Authority heard testimony last year from the Labour Inspectorate as well as Woop founder Dietz.

The Labour Inspectorate also said the agreements did not meet employment standards.

Woop's counsel Peter Kiely argued the inspectorate had failed to sufficiently investigate the complaints it had originally received.

The argument was also made that breaches in employee entitlement were negligent rather than deliberate.

Woop was found in breach of the Employment Relations Act, Holidays Act 2003, and the Minimum Wage Act 1983.

Intern says ruling bittersweet

But the interns affected by Woop's employment breaches said the determination was bittersweet.

Kenza Zohair and Alix Maréchal were part of the internship programme back in 2018.

They said that despite finally reaching its conclusion, the ordeal has left them with more questions than answers.

"It's still not clear why we were not able to testify and give our version of the facts, we don't even know if the [Authority] read our statements," said Zohair.

Maréchal said with the proceedings over, now was the time to tell their side of the story, something they had been cautious to do before a determination was made.

She believed Woop was not acting in good faith.

The interns maintained that the supposed benefits Woop argued they provided their interns, which included free meals and trips, were not as the company said.

Instead they said the company had them doing the same physical, "mind-numbing" tasks repeatedly.

Maréchal said the experience has had lasting trauma on her.

"Every time I have something to do with Woop [...] I find that my body is shaking, I'm calm and I know what I want to say, but my body is traumatised," she said.

Zohair was pleased that there was finally a confirmation that the company had breached the law.

"I want to make sure people know it had long lasting effects on us," she said.

In a statement to RNZ, Woop said they accept the findings of the Authority, calling the issue "unintended".

The authority ruled $13,000 of the overall penalty was to be paid to the Labour Inspectorate who would distribute the funds to affected interns, as well as $26,000 to the Crown.

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