Business Failures Are Leaving Workers in the Lurch – It’s Time for Change

In recent months, we’ve seen a troubling pattern emerge across New Zealand’s freight and logistics sector: business failures are increasingly leaving employees in the lurch — unpaid, unsupported, and in some cases, facing precarious immigration situations. These aren’t isolated incidents. They are symptoms of a larger, systemic issue, and unless something changes, we risk not only the wellbeing of our workforce but the reputation and stability of our entire industry.

National Road Carriers (NRC) is actively engaging with key agencies — including Immigration New Zealand — to help freight operators, particularly those new to New Zealand, understand their obligations. Good decision-making at the outset is critical. That’s why we offer tools such as the NRC Cost Model — a practical resource designed to help new operators understand the true cost of doing business in this country. It enables them to make informed decisions, avoid over-leveraging, and reduce the temptation to cut corners or turn to cheap labour as a stopgap.

Experience tells us what happens when corners are cut. Labour standards slip. Rules are ignored. Non-compliance issues mount. And, too often, workers — many of them migrants — pay the price.

In extreme cases, we’ve seen behaviour that borders on modern slavery: employees misled, overworked, and left without pay when a business folds. This is unacceptable. If a business fails and leaves its workers in the cold through unethical practices, there must be consequences. At the very least, we must treat such behaviour as not just non-compliant, but potentially criminal. Workers deserve better, and the vast majority of ethical operators in our sector agree.

Part of the challenge is that the regulatory environment our industry operates in is fragmented and overly complex. From vehicle compliance and WorkSafe requirements to immigration rules and employment law, the system is riddled with isolated silos of regulation — each operating independently, with little coordination. New operators, particularly those unfamiliar with the New Zealand context, can easily get overwhelmed or misinformed.

Is it time, then, for the Ministry of Transport to take the lead in creating a more unified regulatory framework — one that brings together the patchwork of requirements currently sitting across multiple agencies? We believe so. A more cohesive system would not only be easier to navigate, it would also lift the baseline of compliance across the board, making it harder for bad actors to fly under the radar.

Of course, enforcement is only part of the solution. We also need a clearer path to doing things right from day one. That means better best-practice guides, industry-led education, and stronger ties to training providers. NRC is already working to support this — but Government support and coordination would strengthen the effort considerably. For instance, ensuring that every operator entering the market is aware of tools like the NRC Cost Model, and that they understand their obligations under immigration and employment law, should be part of a broader, integrated induction process for new businesses.

Freight is the lifeblood of the New Zealand economy, and operators — large and small — are the people keeping that lifeblood flowing. We must not let the system fail the people doing the work. When businesses collapse and workers are left behind, it damages not just individuals but the credibility of the entire supply chain. We have an opportunity now to build a more responsible, transparent, and sustainable industry.

NRC is committed to doing our part — working with members, training organisations, and Government agencies to build an industry we can all be proud of. But we can’t do it alone. We need more cohesive policy. We need stronger guidance and clearer expectations. And we need the Government to play an active role in setting new operators up for success — not just through enforcement, but through education, collaboration, and support.

Let’s stop leaving workers behind. Let’s build something better — together.

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