ELE group collapse: Filipino community left stunned, mass layoffs come four days before Christmas

RNZ

Members of the Filipino community are in shock after 750 construction workers were laid off following the collapse of national construction labour force business ELE.

Several workers and Union organisers met at First Union headquarters in Auckland and via Zoom this evening to discuss a plan to help those who lost their jobs four days before Christmas.

Carpenter Guillermo Fabella who lost his job said he is upset by what happened and unsure about his future.

He told the Herald he hadn’t received help after the announcement.

“I hope the union will help me, because, as an ordinary worker, it will be hard for me to find another job on my own.”

Filipino community leader Dennis Magcalas said members are figuring out how they can help those who were laid off.

“We’re working with the church to make food packages like we made during Covid - anything like rice, noodles, sugar. Basic foods.”

Mikee Santos, Union Network of Migrants coordinator, said 750 people were working at the sites when there were suddenly told of the receivership.

“They went home, shocked and shaking and wondering what to do next,” said Santos of First Union.

“Of those 750, around 500 are on temporary visas and another 250 are on residents’ visas,” he said.

More than 1000 permanent staff, casual workers and contractors have been hit by the closure of five companies in the group.

The receivers of the ELE labour hire and recruitment firm say they have had offers of help for the staff affected by its collapse.

Deloitte’s David Webb said numerous offers of help for staff had been received and some had already got new jobs.

“At this time of the year, it is especially heartening to see the outpouring of support, and it continues to drive us to assist all those affected as best as we are able.”

The receivers had been working with customers, industry groups, and government agencies to find new jobs for affected staff, he said.

However, Santos said workers cannot start immediately with the new companies as their visa conditions need to be changed.

“Employees first need to get a job offer, then it will be lodged with Immigration New Zealand to change their visa, and once they get their new visa approved, they can start work,” he said.

“These are all skilled workers and the industry needs them, but it takes sometimes one to three months to change their visa, so that period of unemployment will be difficult.”

The Philippine Embassy in New Zealand announced via a Facebook post that it had been made aware of the situation of Filipino workers affected by the filing of receivership of the ELE Group of companies.

“The Embassy is currently coordinating with the relevant authorities to determine what kind of assistance can be provided to the Filipino employees of these companies.”

ELE recruited staff in New Zealand and overseas for the building, manufacturing and healthcare sectors, and also offered refrigerated transport and freight services, through a subsidiary.

The receivers were called in by the group’s sole director, Brent Mulholland, after it failed to sell businesses or get further finance, but the extent of its debts has yet to be detailed.

One company in the group, ELE Security, escaped the receivership and was already attracting interest.

“We have also received several initial expressions of interest in ELE Security and the receivers will undertake a process to facilitate a sale to realise ELE Limited’s investment in ELE Security Limited,” Webb said.

The business provided security guards for various hospital, retail, and bank facilities.

There was no further detail about the 500 foreign construction workers brought in on temporary visas, who under the terms of their visa are tied to a specific employer unless granted a change of conditions, or allowed to get a different job.

Additional reporting by David Williams

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