Experiences of self-employed contractors Self-employed contractors shared many of the same experiences as employees, including discrimination and feeling undervalued. The insecurity of their employment, however, could mean they were subject to other forms of exploitation. The key themes we heard were: • lack of understanding of employment relationship status • self-employed contractors are undervalued • employers make empty promises • self-employed contractors lack protections. Lack of understanding of employment relationship status Several Pacific workers we engaged with were unclear as to whether they were employees or self-employed contractors. This was observed in the construction sector as well as among workers in horticulture. We also heard from employers of instances where they dismissed their employees and re-engaged them in essentially the same role but as self-employed contractors. This results in workers not enjoying the protections afforded to them under employment law. When someone is a contractor, it is assumed that they have equal bargaining power with the principal. This contrasts with how employment law defines the employee/employer relationship. A fundamental principle embedded into employment legislation is that an employee has less bargaining power than an employer. When a power imbalance is the starting point, protections and minimum standards for employees make sense. However, a contractor benefits from none of those protections. Everything is simply negotiable between the parties and captured in the contract. There is no minimum wage, no annual leave, no sick leave. It is assumed that the contractor will build these considerations into their charge-out rate. Many of the Pacific contractors we engaged with had no such bargaining power. They were simply told the hourly rate by the principal rather than being the 44 ones to begin the negotiation by telling the principal their rate. There was no further room for negotiation. This is a problem of which the Government is well aware, having put together a working group on the matter of vulnerable contractors. It released a report in December 2021 that included potential solutions.44 Self-employed contractors are undervalued The stories we heard are linked to specific incidents where participants felt undervalued, particularly with contracting parties not offering pay that matched their experience or level of skills. One construction worker told us he just wanted “good pay to feel [his] skills are appreciated” (S204). A hospitality worker shared their work experience not being reflected in their pay: What I found difficult was that, even though I was more experienced, I was still offered the company’s starting rate. (S653) Many self-employed contractors shared experiences of being given more responsibility but not the fair remuneration to match. One worker from the arts sector told us: The opportunities seem to be there, but they are dragged out or seen as a way to give you more responsibility but not the remuneration because they think you benefit as much if not more from the upskill. (S723) For self-employed Pacific contractors in the construction sector, training opportunities were needed but there was a lack of awareness of where to seek them from. One worker said: I am self-employed so I would need to seek these myself. I want further training but don’t know where to go. (S203) Tripartite Working Group on Better Protections for Contractors. Report to the Minister for Workplace Relations and Safety. December 22, 2021. https://www.mbie.govt.nz/dmsdocument/19779-tripartite-working-group-on-better-protections-forcontractors-december-2021-pdf. Voices of Pacific peoples 59