what you need to do about bullies and why newsletters/business plus/2012... · and why •...

Issue 93 - June 2012Publ icat ion of the Employers & Manufacturers Associat ion Inc

Business Plusn e w s , a d v i c e , l e a r n i n g a n d n e t w o r k i n g

In this issue:

Austerity vs growth? (and other issues NZ shares with the world)

New technologyboosts markets for fruit

What you need to do about bullies and why

• Secondments - What you need to know• Secret ballots for strikes now law• More on workplace literacy• The future for India• Drug testing at work

New plan proposed for tax on SME’s!

Contents 1

Our Vision. Your Success

Business Plus is published by : The Employers and Manufacturers Association (Northern) Inc

159 Khyber Pass Rd, Grafton, Private Bag 92066, Victoria Street West, Auckland 1142Ph: 09 367 0909 or 0800 800 362 Email: [email protected] Website: www.ema.co.nz

Chief Executive: Kim CampbellAdvocacy Manager: Bruce GoldsworthyManager, Employment: David LoweManager EMA Learning: David FoleyManager EMA Membership & Marketing: Mauro Barsi

Whangarei Louise Morrison 09 459 1501 mob 027 6870604

WaikatoDenis Quigan 07 823 9311 mob 027 203 0694 Russell Drake 07 853 0018 mob 021 686 621 Max McGowan 09 570 1289 mob 027 241 4608

Erin Burke, Senior Solicitor, EMA Legal 07 859 3375 mob 027 459 3375

Bay of PlentyTerry Arnold 07 575 8401 mob 021 662 656 Patrick Brus 07 542 2295 mob 021 758 714

Rotorua / Taupo / South Waikato / WhakataneClive Thomson 07 348 0334 mob 0274 372 808

Business Plus

Editor Gilbert Peterson Ph: 09 367 0916 [email protected]

Writer Mary MacKinven [email protected]

Published by Mediaweb

Project Manager Anthony Stead 021 215 9632

Advertising Sales Colin Gestro (09) 444 9158 [email protected]

ISSN No. 1176-4953

04 Business Mentors raises registration fee, winter diesel alert and building business in the Bay

05 Secret ballots for strikes becomes law

07 Ill-health impacts on business weighed up

19 India destined to lead ocean region

21 Proud Moments: - In praise of solar power

- Air NZ wins energy savings award

- Record earnings for Comvita

23 Kiwi avocado company campaigns to ‘buy local’

02 EMA: Advocacy at work

03 Austerity versus growth, and all the other issues we share with the world With EMA CEO Kim Campbell

12 Accountants think outside the square on tax from Phil O’Reilly CEO BusinessNZ

18 EMA lobs big hit at ETS

06 Backroom bullies: Who are they and what should we do about it?

08 Drug testing at work. Tea breaks dragging on? ...and how do I extend a fixed-term contract? Employment Chat.

10 What to watch out for when seconding staff

24 WiNtEr BriEfiNgS

Fressure Foods chief executive Graeme Laurence says new technology gives New Zealand avocadoes a long shelf life and there’s no longer any need to import the fruit.For the full story go to page 23

On the cover...

Learning

News

Advocacy

Advice 21

17

0223

14 Workplace literacy: help at hand

15 Get the best from your ICT supplier

17 Are your staff harder on notebooks than a 5 year old?

2225

Business Plus – Exclusive news, advice, learning and networking

Advocacy2

Dame Rosanne spoke at the EMA May Policy Forum about her interest in business

from an early age. She stressed she was a great advocate for equal

opportunities and equal pay but with little time for those proposing quotas based on gender or comparisons made under the guise of pay equity.

Dame Rosanne suggested there are major issues not raised in the general gender debate, eg, far too few male teachers. In Australia 52%

of university lecturers are women, and it is pointless comparing pay rates between industry sectors where there is no relevant activity, skill or location to compare.

She said it is important women achieved by merit not by quota, emphasising that women need to want to pursue a career, and for a variety of reasons that may not be as strong for all women as it is for men.

Dame Rosanne said New Zealanders should take more pride in what we all have achieved.

Bill English, Finance Minister The minister spoke at EMA’s Post Budget briefing over morning

tea in Auckland on May 30th.He said the government’s focus was to build stability in the

business environment in these uncertain times, predicting another 10 to 15 years of periodic global crisis. The international outlook won’t settle down, he said.

“New Zealand is not doing austerity,” Mr English said. “We are running a steady path back to surplus” pointing out the government is also committed to a $20-30bn stimulus programme in Christchurch. He was at pains to note the government’s accounts

“are the most transparent in the world.”

Debt will stop rising when it gets to about $70bn – it’s $50bn at present. The Budget signalled $4.5bn of new spending initiatives of which $3.5bn is funded

from re-directed items –“stuff that doesn’t work.”

The good news is New Zealanders have got the message – we’re saving more – “people save when they need to; it’s driven by fear” - but while getting back to surplus is important, economic growth is more important.

The Budget assumes 2% GDP growth this year rising to 3.5% next year, on par with Australia and ahead of the UK, US, Japan and Canada. Ambitious?

Dame Roseanne Meo

Finance Minister Bill English explains more of the Budget to an EMA audience on May 30th

EMA: Advocacy at work

Business’ views on legislation

EMA lodged submissions during May at hearings at Tauranga, Hamilton and

Rotorua city councils on their Long Term Plans.

EMA executive Peter Atkinson said the Rotorua City Council Draft Long Term Plan (2012 -2022) was commendable for proposing a low rates increase (2.9%) and for its strong emphasis on increasing efficiency. But in adopting ‘capital value’ and charging a business differential of 220%, business was scheduled to pay 28% of total revenue from rates, up from an already high 22%.

In our submission to the Hamilton City

Council Draft Long Term Plan EMA welcomed the intention to reduce rates rises for the next 10 years and to “get serious about cutting costs”. But further action is needed, eg to charge for waste-water disposal by volume and remove rating differentials.

For the Tauranga City Council’s draft Long Term Plan we said the planned rates increase of 4.6% will be tough for business, but we applaud Tauranga’s efforts to keep rates increases down to the level of inflation plus 2%, even though this is still too high.

We also made submissions at hearings on the Consumer Law Reform Bill

saying the consolidation of law was expected to reduce compliance and generally align with Australia. But EMA challenged the inclusion of telemarketers and the potential for trades people to be included as uninvited direct sellers.

In our submission on the Natural Products Bill. Wwe

said no one wanted to see false claims being made for ‘natural’ ingredients but the Bill imposes heavy compliance costs and penalties, doesn’t align with overseas law and establishes an overly powerful regulating authority. It also overlaps confusingly with existing New Zealand law.

A personal view - Dame Rosanne Meo

EMA invites many Cabinet Ministers, other MPs, prominent CEOs and government officials to visit and discuss the hot topics of the day. We also host many influential visitors from overseas including politicians and trade delegations. Some of our meetings over the past month included:

Peter Atkinson


3 Advocacy

I was privileged to attend the

OECD Annual Forum in Paris

on 23 May this year with Phil

O’Reilly of BusinessNZ as the

timing came at the end of my

holiday in Europe.

The programme of speakers included a who’s who of finance ministers, trade

ministers, deputy prime ministers, reserve bank chairmen and the like and though the financial crisis in Europe tended to dominate people’s thinking, the topics of the day could have been an agenda for New Zealand.

The universal issues, and it seems surprising they are universal, are youth unemployment currently running at almost 24% practically everywhere; the challenge of dealing with austerity and growth; diversity in the workplace; and balancing the requirements of growth with the sustainability agenda.

So here are some take homes for us in New Zealand.

Austerity versus growth There is general agreement that

austerity on its own will not solve the European crisis. Regardless of what happens to Greece and perhaps Spain, strategies must be found to make the weaker economies more competitive.The consensus is that this will be by the balancing of skills and investing substantially in innovation. (Europe is moving to a service based economy and this is already proving disruptive to a very large percentage of the population).

Sustainability and the Green agendaThe handbrake on building a truly

green agenda is the $US1 trillion of subsidies going to the fossil fuel industry, and though everyone agrees this is taking

place, it seems beyond the wit of man to do anything about it.

Opportunities abound for the creation of jobs in green technology; New Zealand certainly has many opportunities in this market.

There is absolutely no discussion on carbon taxes, the Kyoto Protocol or post Durban treaties on carbon technology. It would be fair to say carbon taxing while not a dead duck, is very much on ice.

Diversity in the workplaceIt may be surprising that, after Finland

and Norway (which has introduced quotas for boardroom gender equality), Turkey is third in the world on this issue, which has been brought about principally by succession planning in family businesses which tend to dominate the stock exchange. In Turkey 75% of the women have no paid jobs, so it is surprising that 52% of businesses on the stock exchange have women on their boards.

Most OECD countries are staying away from quotas, but are enshrining in law the requirement for qualified gender equality strategies and reporting.

The principle factors working against achieving better figures in gender equality, regardless of how much we try, is what is called pipeline leakage. This is the phenomenon where high potential individuals make good progress early in their careers but are then lost to the executive workplace for a variety of reasons not limited to, but including child bearing years, lack of training intensity, workplace inflexibility and simple lack of peer group pressure, role models and burnout.

The universal drivers, at least in the OECD, are state supplied childcare, workplace flexibility including universal

part time work, and educational reorientation which encourages girls at the high school stage to move out from familiar stereotypes and take up careers in engineering and sciences.

(An excellent report on workplace and gender diversity was published by BIAC - the OECD’s Business Advisory

Council - and we have a copy on file for members who wish to read it.)

There is no doubt we need to make significant progress to address skills shortages and the productivity improvements that New Zealand needs to make. Simply put, New Zealand will not make the required economic progress without succeeding in our aspirations for diversity. It’s a business imperative, not really a social engineering or political issue.

Finally, what is the outlook for Europe and what are the implications for New Zealand?

Uncertainty and fear coupled with shrinking balancesheets means Europe is in for a long period of recession regardless of whether Greece leaves the Eurozone, which though unlikely in any event, there will be considerable hardship in their future.

The measured budget that the National government recently published is on the right track. We must head towards a balanced budget to give bankers the confidence to continue lending to us, since we are still one of the most indebted nations in the world when taking private debt into account.

Investment in innovation and skills building,with the government becoming more efficient and business friendly are rightly the government’s first priorities, and its up to private sector businesses to take such opportunities as they can find to create jobs.

2012 is going to be another tough year.

Austerity versus growth, and other issues we share with the world

Kim Campbell

By Kim Campbell, Chief Executive, EMA

4


News

Business Mentors NZ has increased its one-off $100 registration fee

to $150 from 1st June to cope with the financial implications of its loss of charitable status.

The Charities Commission deregistered the not-for- profit organisation on the basis its main benefactors are individual business owners, and that the community gets no measureable benefit.

This is perplexing in the extreme

as Business Mentors is a proven generator of employment and growth vital to our communities and the nation’s well being.

With more than over 1800 volunteer mentors, Business Mentors New Zealand helps on average 4,300 business clients a year and has assisted more than over 60,000 businesses since its inception in 1991.

Although Business Mentors New Zealand receives an annual grant from

NZTE for its work in New Zealand, it could not continue without the support of its 85 private- sector business sponsors.

The registration fee, which has remained unchanged since October 2007, entitles business owners to all Business Mentors’ services for up to two years, including mentoring sessions with an experienced business person and access to a wealth of information and resources.

All diesel contains paraffin wax, which is normal, and is normally dissolved

in the fuel. But when diesel is cooled suf-ficiently the wax starts to crystallise out, i.e. solidify.

Since diesel-powered equipment is used at low temperatures in winter, the diesel wax can form and plug fuel filters/lines and cause engines to lose power and stop and/or cause engine-starting difficulties.

To ensure diesel-powered equipment works reliably all year round, the oil industry adjusts the composition of diesel so that it is appropriate for the season; the use of ’summer‘ grade diesel in winter can lead to blockages in the

fuel line/ fuel filter and associated problems. It is therefore important to run down supply of summer-grade diesel completely before converting the storage tank to winter-grade product.

Winter diesel supplied by Chevron varies by timing and region as follows: • Northland/ Auckland – available from

mid-April and suitable for use down to -6°C

• Rest of North Island & Nelson - available from May and suitable for use down to -9°C

• Canterbury & South Canterbury – available from mid-April and suitable for use down to -9°C

• Otago & Southland – available from mid-April and suitable for use down to -15°C.The blending of regular kerosene into

diesel before waxing occurs can allow the fuel to be used for extreme cold weather conditions but the use of high kerosene percentages can impact on fuel system durability, especially in high-pressure, common-rail engines.

Business Mentors raises registration fee after loss of charitable status

Winter diesel alert

Building business in the Bay

Last month EMA participated in the Bay of Plenty’s Business Summit 2012

on topic of ‘Shaping Our Future.’ About 250 business and civic leaders attended.

The Summit was to highlight the region’s competitive advantages and launch ‘The Tauranga Business Case’ business attraction campaign.

The campaign has put up billboards in strategic locations in Auckland and Wellington to lure businesses to the Bay.

Priority One chief executive Andrew Coker said the day-long summit generated significant thought, discussion and optimism.

Key messages to emerge included:• Business columnist Rod Oram said the

region was strongly positioned to out-perform the rest of New Zealand economically.

• Effective engagement with Tauranga Moana iwi offered step-change economic growth opportunities.

• An increasing emphasis is going on the role of science and technology in growing the region’s economy.

• Similarly, the growth of tertiary education and research is recognised as a critical success factor for our future prosperity.

• The region is keen to develop a strategic and positive vision for the future.

Billboards like this are drumming up investment in the Bay of Plenty.

5


News

Secret ballots for strikes becomes law

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Parliament recently passed the

Employment Relations (Secret

Ballot for Strikes) Amendment Act

2012.

The amendment to the Employment Relations Act 2000 requires unions to

hold a secret ballot vote of their members to approve a strike before undertaking any strike action.

The requirement for a secret ballot will come into force on 14 May 2013, one year after the date of Royal assent. Unions must to amend their rules to contain a provision relating to the process for holding a secret ballot as soon as is reasonably practicable and no later than two years from the day after the Royal assent.

A number of unions already hold secret

ballots prior to any strike action, however in future, before a lawful strike can go ahead all unions will have to conduct a secret ballot.

In practice what does the new law mean

and how will it operate? In the event of a proposed strike the

union must hold, in accordance with its rules, a secret ballot of its members who are employed by the employer and who would become a party to the strike. In order for a legal strike to proceed, the result of the

secret ballot must be in favour of the strike.The question to be voted on is “whether

the member of the union is in favour of the strike.” The result of the secret ballot is determined by a simple majority of the union members entitled to vote and who do vote.

After the secret ballot is taken the union must notify its result to its members.

The secret ballot requirement does not apply to a strike that is lawful on the grounds of safety or health. Under the Employment Relations Act 2000, participating in a strike is lawful if the

employees who strike have reasonable grounds for believing it is justified on the grounds of safety or health.

EMA supports the new law and would expect unions to update their rules as soon as possible and follow the secret ballot requirement.

“...The secret ballot requirement does not apply to a strike that is

lawful on the grounds of safety or health.


Advice6 By Erin Burke, Senior solicitor, EMA Legal

Backroom bullies: Who are they and what should we do about it?

In a research study published in

2010, 17.8% of New Zealand

employees claimed to have been

the victims of bullying in the

workplace. The international range

in this study was between 5% and

20%, indicating New Zealand

had one of the highest rates in the

world.

Dealing with bullies in the workplace is a complex and delicate problem, but

one that employers would be unwise to throw into the ‘too hard basket’. Failure to investigate or take action when allega-tions of workplace bullying arise has seen some employers on the proverbial hiding to nothing if the victim raises a personal grievance and proceeds to the Employ-ment Relations Authority (‘ERA’).

An employer’s legal obligation to address bullying allegations arises under the Health and Safety in Employment Act 1992 where stress is identified as a workplace hazard, and stress is a likely outcome for a bullying victim. If complaints are ignored, the employer fails to take all practicable

steps to ensure a safe workplace environment.

However, investigating bullying can be problematic. Victims may lay a complaint but be reluctant to have their name disclosed for fear of increased retaliation. One of

the principles of natural justice is that the accused gets all the information relevant to the allegations including who has made the complaint and when the alleged incidences occurred.

Even where a victim is prepared to disclose their name, it can be difficult to get

concrete evidence. An effective bullying strategy is to isolate their victim even further by being particularly nice to those around them. This ensures that the victim’s isolation is more keenly felt while conveniently providing the bully with numerous witnesses who, if interviewed, vouch for the bully

as a ‘stand-up’ person. There may further be a sense of relief for those around the victim that they are not targeted, but may become so if they say anything unfavourable.

Though there is no legal definition of what constitutes bullying, the relevant ERA cases to date indicate that the conduct complained of needs to be repeated (not a one-off event) and includes any action intended to cause fear and distress such as threats or action designed to gain power and dominance over another.

Employers should always investigate allegations in a procedurally fair manner and inform the complainant of the outcome and any action that will be taken. Erin Burke is based in Hamilton. She has also lectured in employment law at the Department of Law, University of Waikato. [email protected]

(first published in the Waikato Times, 17/3/2012)

Erin Burke

“...conduct complained of needs to be repeated and includes any action intended to cause fear and distress such as threats or action designed to gain power and dominance over

another.

Waikato businesses are being invited to take part in the first New

Zealand programme developed to reduce their energy costs while earning an independently certified environmental warranty.

EMA Waikato’s Eco Smart Business programme is a simple low cost response to the global trend for businesses to show their customers they can be good for the environment, said EMA Waikato chairman Jack Ninnes.

“Thanks to funding provided by four Waikato local authorities* the programme

won’t cost Waikato businesses the earth to help save the earth,” Mr Ninnes said.

“Business won’t find a more cost effective way to get accredited and stand out from the crowd in their customers’ minds. Some other environmental schemes are horrendously expensive.”

*The programme is offered with a significant subsidy thanks to EMA’s partnership with the Energy Efficiency and Conservation Authority (EECA) along with the Waikato Regional Council, Waikato District council, Waipa District Council and Hamilton City Council.

• Central and local government agencies are moving to require potential suppliers to verify their environmental performance.

• Accreditation to an environmental management system can save your company money and add to bottom line profit.

• Verifiable environmental claims give companies a stand-out marketing advantage.• 80% of the 150 companies to complete

EMA’s Eco Smart Business programme have achieved cost savings.

Waikato businesses offered Eco Smart to save money and earn environmental certification

7


News

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A recent survey of nearly 2000

New Zealanders in full-time

employment found employees with

health insurance took on average

2.2 fewer days off work for medical

reasons each year than those

without health insurance.

The survey was conducted by TNS on behalf of Southern Cross Health Society.

Of those surveyed, half had health insurance either partly or fully subsidised by their employer.

“What the results show is that health insurance can be a very business-savvy way to maintain productivity,” said Southern Cross Health Society Chief Executive Peter Tynan.

“The gains from those two fewer days off alone could cover the entire cost of an

annual health insurance policy, depending on the salary of the employee and the plan chosen,” Mr Tynan said.

For a 35-year-old employee on an annual salary of $65,000, 2.2 days absence equates to approximately $550 in salary costs. The cost of an annual Southern Cross Wellbeing 1 policy for that employee is around $470*.

“Indirect costs of sick leave also include productivity losses, temporary staff hire, client inconvenience and project delays – much of which is not fully accounted for,” Tynan said.

“Having staff off sick can also put stress on other employees who have to make up for being a team-mate down.

The survey also highlighted the role of health insurance as a recruitment and retention tool.

Almost half of all full-time employees said a subsidised health insurance scheme was a key factor they looked for when assessing potential employers. Subsidised health insurance rated above car parks, the corporate reputation of the company and recommendations from friends or family.

Retaining skilled, experienced and knowledgeable people is also very important, Tynan said.

“Maintaining or improving productivity is crucial for any businesses success. Staff output, retaining good employees and attracting the best people are all vital parts of this equation.”

*Premium pricing is based on no excess, receiving the Healthy Lifestyle Reward and a direct debit discount as at February 2012.

Ill-health impacts on business weighed up

Peter Tynan

8


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Try i t for f ree

Q. I was told by an excellent employee at her exit interview that her manager was always stoned, often smelled of marijuana and generally provided poor guidance. Is that enough evidence to confront him? – Caleb

Dear CalebYes it is, if you trust the departing employee’s comments. Presumably you have other concerns about your manager and they could be a good catalyst to start a conversation with him.

That’s apart from the fact he would be breaking the law to have marijuana in his possession…and if any was found in your workplace you could also be culpable.

The fact that a reliable employee mentioned this on her exit suggests the manager is creating problems, maybe more so than is evident on the surface.

So it’s time to dig deeper, for sure. You may need to refer him to counselling and/or instigate disciplinary procedures.

Maybe you should check if the use of drugs is a wider problem in your company. You could include a drug policy in your new and renewed employment agreements. For information on this see EMA’s ‘A-Z of Employing’ on Drug Testing or attend our half-day course “Drugs and Alcohol

in the Workplace”, next on July 19 in Auckland.

Q. Lunch and morning tea breaks – always dragging on, bugs the heck out of me. What can I do? I seriously think it’s affecting our productivity. – Steve

Dear SteveFirst know that the minimum time

allowed under the law is for two, 10-minute paid breaks for full-time workers, and a 30-minute unpaid break (for lunch or the middle of the eight hours). Your employment agreements can include more than this if desired, and we have sample clauses on them that you can put into your agreements (but of course any time you change an agreement, both parties must sign it again).

I’d suggest you study and record the times that people spend on breaks rather than make assumptions. Maybe not everyone is at fault. Maybe the breaks are critical to building morale and a team spirit, which are good for productivity too.

Leading by example is important so managers can’t be seen to flout the rules while people with less responsibility are being told off.

It’s wise to make sure staff know the requirements and thank those who observe them.

You have every right to enforce this through a memo/email to all staff, by a mention at the staff meeting or one-on-one to the offenders if there are only a few. Explain the extent of the problem and why it matters, not just to you but the company overall, rather than risk sounding like a killjoy.

Call us to check the details for part-time time workers, people doing overtime and mothers breastfeeding. Or go to ema.co.nz under ‘A-Z of Employing’ for the manager’s guide on Breaks.

Q. I have about 20 staff on fixed terms doing projects and want to extend some when they come to an end. Can I? – John

Dear JohnYes a fixed term can be extended

so long as the reason for the position being for a fixed term is still valid, and the details are put in writing.

You must of course have genuine reason for the position to be a fixed term, whether it is an extension of a current fixed term, or for a new one for another reason. You will need to check the terms of the agreements of those you no longer require to ensure you are satisfied their specific fixed term has come to an end.

A fixed term cannot be used to test

Drug testing at work. Tea breaks dragging on?

9


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...and how do I extend a fixed-term contract?

a person’s suitability for a job, and if you re-hire someone after terminating a fixed term you cannot include a trial employment period, as they have previously been employed by you.

Someone employed on a fixed term is a temporary employee, not a casual worker; and they are an employee, not a contractor. So they are to be accorded minimum conditions as for your permanent/full time employees, albeit for the shorter period of time (however many days, months or years the term is for).

You can require them to work certain hours, at a certain location or premises, etc and in return you provide the resources, space to work, holiday-pay, breaks and so on as you give to all your employees. Whether you add benefits such as health insurance or bonuses for their term of work is over to you.

Check out our ‘A-Z of Employing’ guide called Fixed Term Employment. This is different from hiring someone as a contractor. A contractor who you pay to do a job, works fairly independently. They can be required to use their own tools and resources and usually work at premises other than yours. Also, they do not accrue leave entitlements that other employees are eligible for.

The employment features that tend to indicate a contract for service are: • The contractor determines how the

service is to be performed. • The contractor may sub-contract

the work to another contractor, or require one of their own employees to perform the work.

• The contractor is able to perform services for more than one business.

• The services the contractor provides are specialised, and historically they have been independent of other businesses.

• Payment is requested by invoice and required at agreed intervals, or at the completion of the service.

• The contractor pays his or her own ACC levy and is responsible for income tax liability including GST.

Note: This list is not exhaustive and cannot solely be used to determine the matter. See our ‘A-Z of Employing’ guide called Contracts for Services.You should include provisions in a fixed-term agreement to ensure you are covered in case the fixed term ends early for some reason. A contractors contract will usually contain a notice period applicable to both parties. Call us to discuss your particular situation. By the EMA Advocacy team in consultation with EMA Advice, and based on real calls to EMA’s AdviceLine.

The information in this article is a guide only and is not to be used as business advice without further consultation. Start with our AdviceLine team at phone 0800 800 362 (within New Zealand) 1800 300 362 (from Australia) or 09-367 0909 8am-8pm weekdays. Alternatively, email [email protected], and read or download information such as the A-Z of Employing – a manager’s guide on more than 100 specific topics, at www.ema.co.nz


Advice10 By Carla Pallant LLB and Ashleigh Nelson LLB, EMA AdviceLine: Employment Advisors

What to watch out for when seconding staff Organisations frequently transfer

staff away from their current place

of employment so they can up-

skill other employees, lend a hand

to a client or supplier, or transfer

staff elsewhere due to a reduced

workload.

There’s no doubt seconding staff to another employer can have positive

outcomes, for the employer and employee alike.

But secondments bring with them several common issues; this article is to identify some of them and offer suggestions how they can be managed.

But first a definition: the term “secondment” refers to the temporary transfer of an employee to other employment or to another position and it covers a wide variety of scenarios.

Secondments can include an employee remaining at the same location with the same employer but transferred to a different position. Or where the employee is with the same employer but transferred to a different location.

Commonly, secondments place an employee in a different company entirely and that company could be either inside or outside New Zealand.

Given the transfer is temporary, the employment relationship and contractual links between the employee and the primary employer are maintained during a secondment. As such, where an employee is seconded to a separate company, quite often the employer will invoice the company for the employee’s work.

The employer remains responsible for the employee, and this can become problematic, especially when the employee is seconded to a separate company or in a different country, where issues can arise around the lack of control over the employee’s employment through reduced access, monitoring and communication with the employee.

The most common issues for employers to manage when seconding an employee to a different company or country include:• Observing public holidays; • Discipline and performance

management, and• Personal grievances

Public holidaysTake the example of employee from

an Auckland company who is seconded to a separate Christchurch company. The secondment period includes Auckland Anniversary Day which is not a public holiday in Christchurch, and the employee is expected to work that day. Does the employee receive the public holiday entitlement despite being in Christchurch? What do they get paid on Canterbury Anniversary Day? What if the employee is in Auckland for the Auckland Anniversary Day then in Christchurch for Canterbury Anniversary Day? Does the employee get paid for working two public holidays?

The Holidays Act 2003 (“the Act”) states that an employee gets paid time and a half and an alternative holiday when an employee works on a day that is otherwise a working day. There is no requirement under the legislation for the employee to be employed usually in the region in order to receive the holiday.

Under section 44B of the Act an employer and employee can agree to transfer a public holiday to a different identifiable day. In the above scenario the employee’s Auckland Anniversary Day could be transferred to the Canterbury Anniversary Day.

The public holiday transfer provision could also be useful if an employee does work related travel on a public holiday. The use of this provision would ensure the employee receives their public holiday, and the employer could forget about grappling with whether or not an employee is “working” when they are travelling.

Finally, section 44B could also be useful if an employee is working overseas when a public holiday occurs in New Zealand. For example, should an employee be seconded to Australia for three months the employer and employee could agree to observe Waitangi Day on Australia Day. The employee could be paid as usual on 6 February then receive a paid day off for the day not worked on Australia Day.

Best practice would be to agree to such an arrangement prior to the secondment to avoid any confusion.

Discipline and performance managementIf an employee needed to be disciplined

or performance managed the authority to reprimand them could be delegated to the separate company.

But, if during the secondment to another company or country, the employee’s employment was terminated, any potential personal grievance claims could be targeted at the primary employer, despite their possible lack of control.

One way to reduce complications associated with disciplinary and performance management processes is to ensure the lines of communication and contact are maintained between the primary employer and employee. Also, the primary employer can ensure their policies and procedures are adhered to by remaining responsible for performance management

Carla Pallant Ashleigh Nelson

“Commonly, secondments place an employee in a different company entirely and that company could be either inside or outside New

Zealand.”


11 Advice

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and discipline. This may mean the primary employer must pay for a manager to go to the seconded employee’s workplace to conduct the relevant process, or else provide adequate technology to enable the process to be conducted remotely.

Where an employee is seconded to a company overseas there may also be concerns about the correct application of New Zealand law. The drafting of the agreement for the secondment and the commercial agreement between the interacting companies becomes very important in this respect. Through careful and skilled drafting it is possible to assert New Zealand law is to govern the contract, and also that the New Zealand Courts are to have jurisdiction to hear any employment disputes.

Personal GrievancesA final issue of note that is particularly

relevant to employers receiving a seconded employee was highlighted in the McDonald v Ontrack Infrastructure Limited case. In that case the employee who was employed by Allied Workforce Limited accepted a work placement with Ontrack. When the placement came to an end, the employee claimed he was unjustifiably dismissed by Ontrack whereas Ontrack claimed that it was Allied, and not them, that were the employee’s employer. The

Employment Court accepted it would be possible to create an employment relationship between an employee and a third party company if contract law and also section 6 of the Employment Relations Act 2000 were satified.

As such, an employee on a secondment may be able to argue that an employment relationship was formed between themselves and the company they were seconded to. If the relationship then came to an end, the company who the employee was seconded to may be on the receiving end of a personal grievance.

Consequently, when considering the secondment of employees, it is important to skillfully draft the secondment agreement, and also carefully manage the relationship.

“...One way to reduce complications is to ensure the

lines of communication and contact are maintained between the

primary employer and employee.”

1. Clifford v Retokil Ltd [1995] 1 ERNZ 407 at 4252. McDonald v Ontrack Infrastructure Limited and Anor [2010]

NZEMPC 132

12


Accountants thinking outside the square on tax

Phil O’Reilly

We are a nation of small

businesses and we need more

of our small businesses to grow

and become big ones- bigger

businesses mean more profits

and more jobs.

The environment in which a business operates can affect its ability to grow.

It needs to be as business-friendly with as little red tape as possible.

One opportunity to help small businesses grow would be to reduce the cost of complying with regulation.

Reducing compliance costs is an opportunity going begging.

Research over several years by BusinessNZ and KPMG shows 94% of New Zealand firms face compliance costs more than $3,000 per employee per year.

Those 94% are small businesses – with fewer than 10 employees. They are much worse hit by compliance costs than large businesses, where compliance costs are by comparison about $1,000 per employee per year.

Our problem is that small businesses bear a disproportionate compliance burden. A large part of that is tax compliance.

While there have been improvements in the tax structure overall, it can still be very time consuming for a small business to do their tax returns.

In a refreshing move, accountants have come up with some ideas to address the problem.

The NZ Institute of Chartered Accountants and Tax Management NZ are proposing a ‘rule of one’ – a system where no more than one hour, one return and one payment every month

would be needed for income tax and GST compliance.

Here is what they are suggesting: two optional pathways – a ‘small business’ tax pathway and a ‘micro business’ pathway.

The small business model, for firms with gross turnover less than $600,000,would require

a two-monthly tax return for both GST and income tax, to be taxed as if the business were a sole trader. Rather than an accrual system, it would be on a cash payments basis, with no annual income tax return, no year-end stock takes, and no provisional, fringe benefit or entertainment tax. This pathway would not require financial reports to be prepared for income tax compliance (businesses might still want to prepare financial statements for creditors, potential purchasers and the like, but they would not be needed for tax purposes).

13


By Business NZ’s CEO Phil O’Reilly

This two-monthly system would give business owners a frequent, regular snapshot of their cash flow - useful management information.

By paying tax at personal marginal rates, business profits could be distributed tax-free to the business owners. Using personal marginal tax rates would mean income tax was treated like a final tax when it is paid, so there would be no requirement to comply with dividend rules, and it would make provisional tax unnecessary.

As income tax and GST basically attempt to measure the same thing (they deduct outgoings from incomings to arrive at a net taxable amount), for GST it would make sense for small businesses to have an income tax system that operates on the same platform as the GST rules. After all, why have two sets of rules to measure the same thing?

This small business model would basically allow businesses to leverage off the simplicity of the GST system.

The other model proposed by the accountants’ groups – the micro business model - would be for very small businesses: those not registered for GST, with turnover less than $60,000 per year, and without employees. It could also be used by employed people who undertake private work outside their hours of employment.

The accountants propose that micro enterprises could be taxed at 7% for

those trading in goods and at 14% for all other trade, with tax payments made monthly or at any time. The 7 or 14% would include ACC payments,

and income for the purposes of child support, student loans and Working for Families tax credits would be set at 50% of gross income.

Paying a flat rate of tax to meet obligations for income tax and ACC and with no requirement for provisional tax would be significantly easier than current requirements.

This micro model would require no annual filing of returns. It would neither rely on nor disclose business profitability. As with the small business pathway, financial reports would not have to be prepared for income tax compliance.

As a business grows it could move

from the micro to the small business model.

The micro business pathway would allow those currently earning cash under the table to be able to move to this system with no questions asked.

It would be a no-grief way for such people to get out from the black economy and it would improve tax administration in this area.

Both the small and micro business models would be optional. Those who wished to work out their actual taxable income in the conventional way could continue to do so.

This proposal by the NZ Institute of Chartered Accountants and Tax Management NZ is extremely interesting. They have taken a fresh

look at the problem of tax compliance and come up with suggestions that could reduce the time and stress burden on small businesses. The suggestions are on ‘Time is money - tax simplification for small business’on www.nzica.co.nz.

For Government, the proposal would strike a good balance between minimising compliance costs and maximising revenue collection. For small business, the time saving would be significant. It would be good to hear what they think about the idea.

Phil O’Reilly is Chief Executive of BusinessNZwww.businessnz.org.nz

“...it would be on a cash payments basis, with no annual income tax return, no year-end stock takes,

and no provisional, fringe benefit or entertainment tax.”

In 2011 EMA members pumped 1.8 million litres of EMA discounted fuel into their company vehicles collectively saving themselves over $100,000!With the new Caltex Starcard fuel offer now available you can add a further 25% savings on your fleet fuel costs and together with the 30 day interest free credit on account that adds up to great value for any business!

Its simple to sign up, just go to the EMA homepage and type in the search term Starcard to start saving on your fuel costs today!The offer is now 5.2 cents/litre off the pump price on regular, premium and diesel fuel at the petrol station AND/OR 10.35 cents/litre off diesel at a dedicated diesel stop including GST.

EMA Starcard rebates rise to 5.2 cents/litre!Caltex have increased their fuel offer to EMA members by 25% - starting now!


14

If your business struggles to get

employees to correctly complete

health and safety forms, shift

handover notes or quality control

documents then its likely your

employees will benefit from

literacy and numeracy skills

training.

Or how about your employee training not getting the results hoped for?

Or prompt reporting on production line and otherissues?

Low workforce literacy, numeracy and communication skills affect many businesses in many ways.

In fact about half of adults aged 16-65 years have gaps in the literacy and numeracy skills that they need to fully contribute to their jobs.

Factors such as poor employee engagement or ineffective training can be blamed instead.

But help is at hand. Government subsidises the training needed to build your employees’ skills and it’s tailored to meet your business goals.

EMA have run seminars for members to highlight how businesses can access this training, with presentations from managers withfirst-hand experience of workplace literacy training and its positive impacts.

Karl Pointon, HR Manager at Tasti Products recently told an EMA seminar that workforce literacy came to the fore

when it noticed employees failing to fully complete compliance documents, follow written instructions and correctly weigh ingredients.

“The penny dropped when I noticed many participants were confused during in-house quality training designed to rectify these problems,” Karl said.

When 29 employees attended an hour of workplace literacy and numeracy

training each week for 12 monthsTasti Products quickly found significant improvements in documentation, completed accurately, with reduced wastage and lower employee turnover.

Mr Pointon says improving employees’ literacy skills has enabled the company to give some employees more responsibility, helping them to advance their careers and improve job satisfaction.

Nick Miles from Workbase explained

how their small-group literacy, numeracy and communication training programmes are run in the workplace at times convenient to the business. The programmes are delivered over an extended period, which gives participants time to fully develop and retain essential

skills such as improved communication, enhanced writing skills, improved reading skills, improved numeracy skills and problem solving.

Mike Burgess of EMA says: “Literacy and numeracy issues can be hard to identify because most adults can read and write but many have gaps in the skills needed for lean manufacturing, quality or productivity improvements.

“Helping employees to improve their literacy, numeracy and communication skills inevitably has positive flow-on effects for improved employee engagement, increased business profitability and fewer workplace accidents,” he says. To find out more about upcoming workplace literacy seminars at the EMA contact [email protected], or to check whether your busi-ness is eligible for a workplace literacy government subsidy by contacting Nick Miles at Workbase on (09) 361 3800 or [email protected]

The next Workplace Literacy event will be at Conference Room, Rainbows End, Manukau, Wednesday 13 June 2012.

Workplace literacy: help at hand

By Mike Burgess

Pupils from Rangitoto College visited EMA in Auckland on Workchoice Day on May 15 to learn what we do, careers, and how EMA supports business. In Hamilton 25 business mentors took part in an information day for the Smart Waikato YES (Young

Enterprise Scheme) programme for secondary students sponsored by EMA Waikato.EMA Waikato executive committee member Rob Pascoe was a judge in the students’ Dragons Den-style presentation of business ideas.

Students from Rangitoto College work on a business knowledge quiz in the EMA boardroom on Workchoice Day

Connecting with schools

“When 29 employees attended an hour of workplace literacy training

each week for 12 months Tasti Products quickly found significant

improvements, with reduced wastage and lower employee

turnover.”

Mike Burgess

Learning


15 Learning

If you want to reduce your

ICT spend while increasing or

maintaining service quality you

may need to do some groundwork

before your current contract

expires. Here are some quick tips

to help you get the best from your

next ICT contract negotiation.

Price versus Cost. Not every cheap car is a bargain. A purchaser acting in haste will have the term of the con-tract to regret buying on price alone. Quantity vs Quality. Analysing the ICT requirements of your business often comes down to understanding more than just raw numbers. Iden-tifying the needs of each stakeholder group is equally important.

For example if your sales manager’s success is dependent on being able to access product and stock information while travelling locally and/or overseas, or the marketing department needs fast broadband services to upload and download big graphical images, this needs to be reflected in your brief.

Neither of these stakeholders will be impressed that your current communications provider has a ‘free’ offer on standard mobile phones this quarter, or that you can save 20% on last year’s toll charges. Each stakeholder has an important voice in the process. How you measure and proportion their needs is vital to a successful buying decision.

Partnership vs Friendship. It is not a partnership when your supplier charges over the odds and delivers lax service, regardless of whether they took you and your partner to see the Jersey Boys last week. Your supplier should al-ways be looking for ways to make doing business easier and more cost effective.

Abdicate or Outsource. Sometimes, with the pressure of time and limited in-house expertise, it feels easier to just re-sign with your existing supplier, or to abdicate the selection process to an outside expert. Both approaches are flawed.

In a recent case a TUMG client saved $600,000 on their communications contract, despite re-signing with their established supplier at the end of the process. They did this by involving an expert vendor selection consulting firm and engaging actively in the selection

process as the project owner and stakeholder representative. TUMG did the hard yards on analysis and process management; the project owner kept the company’s interest firmly centre-stage.

Openness vs Secrecy. How can your existing supplier, or new entrants, know what you want and how you will measure their bid’s effectiveness unless you tell them? Sharing at least some of your measures and impressions during the bid process can have a dramatic effect on the quality of the supplier offers.

Keeping secret how you measure bids and choose your successful bidder creates misunderstanding, confusion and distrust. It also lowers the standard of offers you can expect to receive.

Do’s and Don’tsDO - test the market regularly to ensure

you are getting the right response to your business requirements. DON’T - change suppliers so often that you lose the benefit of their knowledge and experience of working with your company DO - prepare for complex bids by evalu-ating and measuring your stakeholders’ needsDON’T - just hand bids over to the technical or accounting staff DO - use an experienced vendor selec-tion specialist to support the bid process and provide you with the qualitative and quantitative measures to support your decisionDON’T - lose sight of your role in the decision process. At the end of the day the vendor selection company will head off to another job and it’s you who will live with the contract you sign.DO - make both suppliers and vendor selection consultants accountable. Vendor selection charges should come with a performance element wherever possible. Your success should be pivotal to the fees a consultant charges. Equally the final vendor contract should include a clause that allows for regular performance re-views in case the promised benefits aren’t being delivered upon.DO - prepare for contract renewals well in advance of the renewal date.DON’T - procrastinate. In the case of data and telecommunications, as in many other complex fields, prices and services can change dramatically over the term of a contract. Allowing a contract to roll over because you did not plan for renewal can cost your company a great deal of money and reduce competitive advan-tage – especially if your competitors pick up on the latest advances in product and service offerings. David Spratt is ICT Associate at Total Utilities Management Group With 30 years fulfilling senior management roles in the IT and telecommunications sec-tors. Contact David on 021 5749141 or go to www.tumg.co.nz

Get the best from your ICT supplier

By David Spratt

“...Sharing at least some of your measures and impressions during

the bid process can have a dramatic effect on the quality of the supplier

offers.”

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17 Technology

Probably the best test of the

resilience of technology equipment

is to put it in the hands of young

children who haven’t yet come

to terms with ‘handle with care’.

Chances are it won’t last long. The

same can be said for many workers

using expensive notebooks - what

happens in the field can be just as

demanding.

So it could be relevant for many busi-nesses to review the benefits of choos-

ing ruggedised equipment over the standard variety when looking to make your team mobile.

Notebooks have a hard enough time in the office as routine victims of coffee spills and food avalanches. Examine your own keyboard closely - see what I mean?

The perils worsen in the relatively benign environments encountered by salespeople - a notebook endures baking in a hot car, morning coffee spills, accidental drops dashing from vehicle to client, and many other knocks and jolts.

Spending a little extra on ruggedised

equipment can mean reduced costs in the long run, often without compromising performance.

Indeed farmers, forestry workers, power linesmen, mining prospectors and others take their technology with them - the case for purpose-designed, rugged computing becomes

even stronger. The good news is there are plenty of

choices. Options range from the Panasonic Toughbook with semi and business for the travelling sales team through to full and ultra rugged.

Full-rugged devices feature magnesium cases, can withstand temperatures of -20C to +60C and are at home in dusty or wet conditions. Ultra-rugged devices dispense with the keyboard, considered a weak-point for water or foreign object ingress. Just the latest touchscreen technology.

These machines are waterproof, shockproof and compact. They go just about anywhere, and can be used by anyone, even the kids.

A recent IDC study found 19.6% of notebooks used in US businesses break or require repair at some point. Human error and carelessness are responsible for most damage with 72% of respondents saying they dropped their laptops, 66% spilling liquid on them and 55% saying their machines fell off a desk.

Ruggedised products aren’t ideal for every scenario but where conditions dictate your staff are

going to be harder on their IT equipment than a five year old, it’s best to choose tough solutions for tough workplaces.

Check out toughbook.co.nz for more information.

By Andrew Charlesworth

Are your staff harder on notebooks than a 5 year old?

Andrew Charlesworth

EMA was able to offer members reduced price tickets to hear Steve Wozniak,

co-founder of Apple Corporation in Auckland talking about the Apple start- up and lessons learned.

The opportunity saw him realise an ambition from school days. As a 10 year old he said he wanted to be a teacher, like his own teacher who gave him straight A’s and made him feel good.

Steve said he built his early computational machines by figuring it out, noting that high-powered machines don’t solve problems; the human brain does that as it develops algorithms. What people often call innovative,

he said, was really doing things over and over trying to get better at it.

Other quotable quotes were: “Truth is the apex of all good in my philosophy” (and engineers its prophet). In similar vein to Ernest Rutherford’s “we didn’t have any money so we had to think,” Wozniak said “you do some of your best thinking when you can’t afford much, so I was always trying to do it for less.”

“Sometimes when things are impossible you can do them anyway and sometimes not” and “assume there is a better way.” “Write the book, don’t just read it.” And “I want a Watson on my wristwatch.”

Ana Krpo, a team leader with the Auckland Council, and Eta Lilic, Health & Safety and Wellness Manager for the Bank of NZ ‘close and personal’ with Steve Wozniak. They were two guests of Southern Cross at EMA’s hosted table to hear the Apple co-founder last month.

Woz wisdom


Advocacy18

The postal market in New Zealand is declining irreversibly with mail volumes falling from 1.1 billion 10 years ago to 829 million now, due to substitution by digital transfer, Peter Fa’afiu from NZ Post told EMA staffers in an informal briefing in May.Volumes are expected to drop further to 600 million by 2018, 40% dow n, he said. Every developed country is

facing the same sort of decline.While parcel volumes are forecast to increase in New Zealand by 33% in the next five years, total mail volumes are forecast to fall by 26% as the 7 million rise in parcel numbers will be less than the lost revenue from the overall fall. Parcels make up just 2.6% of NZ Post’s total mail volumes.NZ Post expects its postal services business to start losing money from

2015 if nothing is done, by $10 million in the first year then to over $20 million the next.Big mail senders - power companies, banks and government - are aggressively moving to online diversion of their bill invoices and communication. Three out of four people say they post less mail or none at all compared to 10 years ago.

NZ Post calls time on shrinking mail

EMA says there should be no

further changes to the Emissions

Trading Scheme until at least

2017 when a statutory review of it

is required.

EMA sent its comprehensive submission in May to the Ministry for the

Environment on its document “Updating the New Zealand Emissions Trading Scheme.”

EMA supports an amendment this year to address two technical anomalies but otherwise opposes any further change because of the following overwhelming number of reasons:1. The sole purpose of the ETS is so New

Zealand can meet its international obligations under the Kyoto Protocol and the UNFCCC Framework Convention which expire at the year’s end. Other relevant obligations have been effectively postponed until 2020 and in any case need to be clarified and that won’t happen until 2016.

2. We need to keep in step with Australia so it would be fool hardy to legislate now - there’s no way we can predict what Australia will do after 2015. In fact our present law is based on an Australian model that in the end failed to be introduced and no one wants a repeat of that embarrassment.

3. Any economic benefit to New Zealand from the ETS depends on deep and liquid global carbon markets which were expected by 2012 but have not eventuated.

4. Further economic modelling is required to identify any cost benefit that might occur if the ETS burden on our economy was to be now doubled.

5. The Government made many undertakings that change would not proceedunless other countries, particularly our major trading partners, “make progress”. We know they haven’t.

6. The Ministry’s paper proposes to cap the number of NZUs issued

(allocated to non-forestsectors and auctioned) and a limit on the number of international units to be surrendered. Hence the Minister will determine supply levels and therefore the future pricing of NZUs, which abolishes a free market for them and which is a retrograde step.

7. Given the delicate state of economic recovery, and the Government’s stated growth priorities, imposing more avoidable and “excessive” costs is unacceptable.

8. Its very likely under the proposals that any possible incentive for industry to reduce its emissions will vanish.

9. Auctioning powers will convert the Government role from regulator to beneficiary with the ETS becoming an energy tax, rising from $6 to $25 per tonne, and a very inefficient and regressive tax especially on fixed income households and exporters.

EMA said it fully supports the detailed submission of Business New Zealand.

EMA lobs big hit at ETS

The way that we ‘buy’ and ‘sell’ in New Zealand is set to radically change. Join us and hear the Minister of Consumer Affairs, the Hon. Simon Bridges, present his analysis of the proposed consumer law changes and what they will mean for how you do business.

Come and engage in the discussion, ask the hard questions and find out what the future looks like.

For more information, and to book your place visitwww.ema.co.nz

Major consumer law changes – New ways to buy, sell & stop loan-sharking.

Join EMA and Simon Bridges for lunch in the Waikato

19


The Indian Ocean region will

be home to 3.9 billion people

by 2050, and is already ripe for

greatly expanded trade with New

Zealand, said the Rt Hon Ranil

Wickremesinghe in his address to

a business audience last month.

Mr Wickremesinghe is presently leader of the Opposition in the Sri

Lankan Parliament and a former Prime Minister (1993-94 and again in 2001-04).

He said the history of the region was to a large extent influenced by the silk route of the sea which until the end of the 17th Century made the Indian Ocean the richest region of the world.

MrWickremesinghe said by 2050 India will be the third largest economy in the world as well as the fastest growing large economy. The key to India’s success will partly be due to its demography. By 2050 it will be the most populous nation on earth.

“Demography is playing a key role in the shift of global economic power. The ageing population in many developed industrial countries and the consequent reduction of the workforces will also

reduce growth by mid century.”

“In addition to India, Pakistan’s population will increase 350 million, Indonesia to over 300 million, Bangladesh 250 million, Uganda, Ethiopia, Yemen and Iran each to over 100 million.”

The numbers mean more mouths to feed and more people with more money – average per capita incomes in the region are expected to rise from US$750 to US$2000 over this time.

At present the region has 65% of the oil production, and 40% of the world’s off shore oil production comes from the Indian Ocean which also accounts for 35% of natural gas.

The crucial sea lane connecting Europe and America with East Asia already carry half the world’s containers, a third of the world’s cargo, and two thirds of its oil shipments.

An objective of US defense strategy is to control eight choke points in the region’s sea lanes; US strategy seeks to control these, and the US Government therefore plans for a navy of 300 ships by 2047. The key to this strategy is the US involvement in long term strategic

partnership with India. 90% of India’s trade by volume is sea borne. India plans for a Navy the third largest in the world.

Chinese strategy is to utilize soft diplomacy (via aid “considered an advantage by many”) both

to safeguard its maritime shipping in the Indian Ocean as well as to obtain minerals. China is also building many roads in the region. China is an appealing investment partner - it does not insist on as many conditions as the west or Japan, mostly just requiring the use of Chinese labour on infrastructure projects.

Their aid to this region before 2005 was less than a billion dollars. “Today in my own country, Sri Lanka, China is the biggest aid donor, a story is repeated in many parts of the region.

“But India is in the best position to coordinate the region’s development and trade, for two reasons: it is best to address the status of China in the Indian Ocean; and to establish [the facilities for] the development of long-term finance for the region.

“India has the advantage of its diaspora in many countries, and in the latter half of this century, India will lead the region.”

India destined to lead region

Rt Hon Ranil Wickremesinghe

Living the dream: Export Award finalistsSchool kids won’t dream of careers in temperature and humidity control, shipping, logistics, or making snack foods, but they might if they knew where it could take them.

Auckland companies supplying precisely these products and services were named finalists in the Air New Zealand Cargo Export New Zealand Auckland Awards 2012 recently.

The winners will be announced at a gala dinner on June 22nd. Visit www.hookedonexport.co.nz Westpac Exporter of the Year (total sales over $35million)• Jack Links NZ Ltd

• GMP Pharmaceuticals Ltd• Temperzone Ltd

QBE Insurance Exporter of the Year (total sales under $35million)• Patton Ltd• Canary Enterprises Ltd• Temprecord International Ltd

TNT Express Emerging Exporter• NZ New Milk Ltd• Madeblunt Ltd• World Wide Access Ltd• Brolly Sheets Ltd

Endace Hi-Tech Exporter of the Year• Xlerate Technologies Ltd

• Orion Health Ltd• Compac Sorting Equipment Ltd

Baldwins Intellectual Property Best Use of Commercialisation of Innovation• Straker Interactive Ltd• enlight photo Ltd• ENSID Technologies Ltd

BDO Deal of the Year• EasiYo Products Ltd• Compac Sorting Equipment Ltd• Superyacht Interiors NZ Ltd

Supreme AwardThe winner is chosen by the judges from the winners of each category.


EMA MEMBER PROUD MOMENTS NOTICEBOARD 21

Not to be outdone by last month’s Business Plus cover story on S.A F.E Ltd installing the country’s biggest photo-voltaic panel system, Hamilton’s YWCA wants fellow EMA members to know it has extended its own solar roofing trial to save power costs, partly thanks to a prize won from EMA last year.The not-for-profit YWCA won an energy assessment worth $3,000 from Enercon NZ, sponsored by Meridian and EMA.

The YWCA owns and manages six buildings on its site, including a 70-room hostel and commercial “meals on wheels” kitchen – with no government funding.

The YWCA asked Enercon to focus its assessment on potential energy management opportunities created during a re-roofing of a three-storey hostel. Six months and lots of rainwater

bucket-loads later, work has started, including the additions of solar panels, says YWCA manager Anne Bennett.

The energy assessment also reviewed a two-year-old energy assessment prepared when the YWCA considered joining the CarboNZero programme. A heritage-listed building was already fitted with rainwater-harvesting toilets and three solar hot water panels as a test for extending the system to other buildings.

The YWCA is very grateful to generous funders the Lion Foundation, WEL Energy Trust and the D.V. Bryant Trust Board. Added bonuses were Hamilton City Council charging no fee for consent to install solar panels,

and building advisors’ assistance.Anne says the YWCA expects to

reduce costs: domestic hot water constitutes 37% of the total energy used on site, with power and gas comprising 8% of total operating expenses.

In praise of solar power

The winner of the Supreme Award at the 2012 EECA Awards was Air New Zealand.

The airline saved more than $540 million in fuel costs alone since 2005, and strengthened its competitive position, and took the lead in reducing greenhouse gas emissions in global aviation.

The EECA Awards celebrate organisations and individuals who have demonstrated excellence and innovation in energy efficiency or renewable energy.

Funding from EECA helps EMA offer members the subsidised Eco Smart Business programme of environmental management and accreditation, run in Auckland and Hamilton.

For information on this programme, please contact Peter Atkinson at [email protected] or visit www.ema.co.nz and look under ‘Sustainable Business Programmes’.

Comvita, the world’s biggest harvester and marketer of manuka honey has reported record earnings for the year to March, with net profit of $8.2 million, up from $503,000 in 2011.

Sales for the year rose to $96m from $82m. Earnings before interest, tax, depreciation and amortisation (ebitda) jumped 145 per cent to $15.5m from $6.3m.

Comvita said it was reaping the rewards of a growth strategy built on product innovation, an enhanced supply chain, control of channels to market and investment in R&D.

CEO Brett Hewlett said all its markets performed well with the most notable positive sales trends in its largest markets of Australia, New Zealand (both up 13 per cent) and Asia (up 31 per cent).

“We are no longer dependent on intermediaries in Australia and now deal directly with our retail customers,” Hewlett said.

In Hong Kong, where it has 54 retail outlets, the company saw significant same-store sales growth.

Record earnings for Comvita

Air NZ wins energy savings award

YWCA Hamilton staff Riikka Anderson, hostel coordina-tor (l) and Anne Bennett, manager.

Out & About

1

1 | Gavin Frost [BECA], Beppie Holm [BOP Polytechnic] & Fraser Vickers [BECA] 2 | Linda McWilliam [Heilala Vanilla] 3 | Marc-Antoine Simard [Powersmart Solar] & Reuben Woods [Wood The Creative Agency] 4 | Craig Nees [International Merchants] 5 | Tracey Gordon & Greg Jarvis [Bluelab Corporation], Nick Chan [ANZ], Michelle McCarthy [Priority One] & Ben Hoskin [National Bank] 6 | Cate Hlavac [NZ Trade & Enterprise] & Jeremy Doherty [Doherty Engineered Attachments] 7 | Glenn Perry [Clearcut Communications] & Kay Rogers [United Travel Corporate] 8 | Mark Whitworth [Port of Tauranga] 9 | Michelle Harper, Karl Patterson & Ellie Hemmings [Family Design Company] 10 | Mike Basset-Smith [Powersmart Solar] & Scott McKenzie [BNZ Partners] 11 | Kelly Morgan [Te Awanui Huka Pak]

Celebration of � nalists in the BNZ Bay of Plenty ExportNZ Awards 2012

Finalists announced in the Air New Zealand Cargo ExportNZ Auckland Awards 2012

21 2 3

5

8 9 10

4

6

1 | Rich Henry [ENSID Technologies], Alison MacKenzie [Baldwins Intellectual Property], Grant Straker [Straker Translations] & Cecilia Wong [Enlight Photo] 2 | Chris Mills [Superyacht Interiors NZ], Nathan Soich [Compac Sorting Equipment], Paul O’Brien [EasiYo Products] & Andrew Bathgate [BDO] 3 | Derek Bartosh [Canary Enterprises] 4 | Jo Martin [TNT Express], Paul Grey [World Wide Access], Glenn Hawes [Brolly Sheets], & Scott Kington [Madeblunt] 5 | Maurice Crosby [Jack Links NZ], Minesh Patel [GMP Pharmaceuticals], Les Kendall [Temperzone] 6 | Barry Squires [Westpac] & Hugh Cronwright [Export Associates] 7 | Derek Bartosh [Canary Enterprises], Sandy Keenan [Temprecord International], David Spurway [NZ New Milk] & Trevor Farrell [Westpac]

1

4

2 3

5 6

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Pukekohe-based avocado

company Fressure Foods’

has targeted the billion-dollar

food service market with a

goal to switching New Zealand

consumers from buying imported

to locally grown produce.

Fressure Foods is mainly a grower-owned organisation that has devel-

oped food processing technology that extends the shelf life of avocados, similar to that used by overseas growers but without the use of any chemicals or ad-ditives.

The Ultra High Pressure (UHP) processing technology, also known as cold pasteurisation, uses pressures of up to 87,000 psi to shock and kill bacteria in food products.

Graeme Laurence says: “We’re able to increase the shelf life of avocado spreads and guacamole to 60 days.

“UHP is also an environmentally friendly process and does not affect the texture, flavour, consistency or nutrients in the fruit.”

He says the quantity of imported produce – around 200 tonnes a year

worth around $1 million - is no longer necessary and is negatively impacting local growers.

He is encouraging Kiwi food trade companies to source locally produced avocados wherever possible to support local farmers and to manage growing consumer demand for avocados.

A number of local, quick-service restaurants have already embraced the strategy, using only New Zealand grown avocados in their burritos and burgers.

Avocado Industry Council chief executive Jen Scoular says the introduction of UHP technology adds value for New Zealand avocado growers by making a high-value product from process grade fruit.

The Fressure Food application of UHP technology supports our industry goals to maximise the value returned to New Zealand avocado growers, she said.

Laurence says the introduction of UHP has already had a huge impact on their business, allowing for the production of

new avocado-based products and creating 40 jobs at their plant in Pukekohe.

“The technology has enabled us to produce both guacamole and avocado spread products which we distribute in New Zealand and export to countries such as Australia, Japan, Hong Kong, Korea and Singapore.”

UHP is a food safety intervention technology to provide safe and extended shelf life products. It is recognised by the US Food and Drug and Administration (FDA), the United States Department of Agriculture (USDA) and other international food safety agencies.

Kiwi avocado company campaigning to ‘buy local’

EMA MEMBER PROFILE NOTICEBOARD 23 By Mary MacKinven

Auckland-headquartered technology group COGITA has sold its Australian and New Zealand enterprise resource planning (ERP) business to US global company Epicor Software Corporation. The sale will keep almost all COGITA people.COGITA Executive Director Ms Margaret Brown, an EMA board member, and company founder Uluomatootua Aiono (her husband) will continue developing their

other businesses including cloud computing company 2Onions Ltd plus TOC and online marketing company ViAGO Ltd.The acquisition makes Epicor one of the largest enterprise software companies in Australia and New Zealand. It develops software solutions for manufacturing, distribution, retail and services organizations with fiscal year 2011 annual sales of more than US$845 million.

US company buys Kiwi technology group

Out & About

1

1 | Gavin Frost [BECA], Beppie Holm [BOP Polytechnic] & Fraser Vickers [BECA] 2 | Linda McWilliam [Heilala Vanilla] 3 | Marc-Antoine Simard [Powersmart Solar] & Reuben Woods [Wood The Creative Agency] 4 | Craig Nees [International Merchants] 5 | Tracey Gordon & Greg Jarvis [Bluelab Corporation], Nick Chan [ANZ], Michelle McCarthy [Priority One] & Ben Hoskin [National Bank] 6 | Cate Hlavac [NZ Trade & Enterprise] & Jeremy Doherty [Doherty Engineered Attachments] 7 | Glenn Perry [Clearcut Communications] & Kay Rogers [United Travel Corporate] 8 | Mark Whitworth [Port of Tauranga] 9 | Michelle Harper, Karl Patterson & Ellie Hemmings [Family Design Company] 10 | Mike Basset-Smith [Powersmart Solar] & Scott McKenzie [BNZ Partners] 11 | Kelly Morgan [Te Awanui Huka Pak]

Celebration of � nalists in the BNZ Bay of Plenty ExportNZ Awards 2012

Finalists announced in the Air New Zealand Cargo ExportNZ Auckland Awards 2012

21 2 3

5

8 9 10

4

6

1 | Rich Henry [ENSID Technologies], Alison MacKenzie [Baldwins Intellectual Property], Grant Straker [Straker Translations] & Cecilia Wong [Enlight Photo] 2 | Chris Mills [Superyacht Interiors NZ], Nathan Soich [Compac Sorting Equipment], Paul O’Brien [EasiYo Products] & Andrew Bathgate [BDO] 3 | Derek Bartosh [Canary Enterprises] 4 | Jo Martin [TNT Express], Paul Grey [World Wide Access], Glenn Hawes [Brolly Sheets], & Scott Kington [Madeblunt] 5 | Maurice Crosby [Jack Links NZ], Minesh Patel [GMP Pharmaceuticals], Les Kendall [Temperzone] 6 | Barry Squires [Westpac] & Hugh Cronwright [Export Associates] 7 | Derek Bartosh [Canary Enterprises], Sandy Keenan [Temprecord International], David Spurway [NZ New Milk] & Trevor Farrell [Westpac]

1

4

2 3

5 6

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COGITA owner directors Ulu Aiono and Margaret Brown

24


Waikato / BOP Mon. 18th June 9.30am - 11.00am Thames War Memorial Civic Centre, 200 Mary Street, THAMESMon. 18th June 3.00pm - 4.30pm Sebel Trinity Wharf, 51 Dive Crescent, TAURANGAMon. 18th June 5:00pm - 6:00pm Sebel Trinity Wharf, 51 Dive Crescent, ( Executive Briefing) TAURANGATues. 19th June 9.30am - 11.00am East Bay REAP (Upstairs), Reap House, 21 Pyne Street, WHAKATANETues. 19th June 3.00pm - 4.30pm Huka Falls Resort, Huka Falls Road, TAUPOWeds. 20th June 9.30am -11.00am The Holiday Inn, Rotorua, cnr Froude & Tyron Streets, ROTORUAWeds. 20th June 1.30pm - 3.00pm Central North Island Kindergarten Association, 6 Glenshea Street, PUTARURUWeds. 20th June 5.00pm - 6.30pm St Johns Hall, 11 Kakamutu Road, OTOROHANGAThurs. 21st June 8.00am - 9.00am Kingsgate Hotel Te Rapa, 100 Garnett Ave, Te Rapa, (Executive Briefing) HAMILTONThurs. 21st June 9.30am -11.00am Kingsgate Hotel Te Rapa, 100 Garnett Ave, Te Rapa, HAMILTON

Auckland Thurs. 21st June 2:30pm - 4:00pm Bruce Pullman Park, Teamsports Centre, Walters Road, PAPAKURAMon. 25th June 8.00am - 9.00am Crowne Plaza, Hobson Room, 128 Albert Street, (Executive Briefing) AUCKLAND CITY Mon. 25th June 9.30am-11.00am Crowne Plaza, Ballroom, 128 Albert Street, AUCKLAND CITYMon. 25th June 3.00pm - 4.30pm Bruce Mason Centre, 1 The Promenade, TAKAPUNATues. 26th June 9.30am - 11.00am The Trusts Function Centre, 65-67 Central Park Drive, HENDERSONTues. 26th June 2.00pm - 3.30pm Waipuna Conference Centre, 58 Waipuna Road, MT WELLINGTONTues. 26th June 4.00pm - 5.30pm Waipuna Conference Centre, 58 Waipuna Road, MT WELLINGTONWeds. 27th June 9:30am - 11.00am Counties Inn, Rata Lounge, 17 Paerata Road, PUKEKOHEWeds. 27th June 3.00pm - 4.30pm Greyhound Function Centre, Manukau Sportsbowl, Te Irirangi Drive, MANUKAUThurs. 28th June 9.30am - 11.00am Titirangi Golf Club, Links Road, NEW LYNNThurs. 28th June 2.00pm - 3.30pm Ellerslie Events Centre, 80 Ascot Road, GREENLANE EASTThurs. 28th June 4.00pm - 5.00pm Ellerslie Events Centre, 80 Ascot Road, (Executvie Briefing) GREENLANE EASTFri. 29th June 8:00am - 9:00am Harbour Function Centre, ASB 3, Gate A, Carpark A, Stadium Drive, ALBANY Fri. 29th June 9.30am - 11.00am Harbour Function Cntr, ASB , Gate A, Carpark A, Stadium Dr, (Exec Briefing) ALBANY Fri. 29th June 3.00pm - 4.30pm EMA Board Room, 159 Khyber Pass Road, GRAFTONMon. 2nd July 7.30am - 9.00am EMA Board Room, 159 Khyber Pass Road, GRAFTONMon. 2nd July 11.00am - 12.30pm Butterfly Creek, Tom Pearce Drive, MANGEREMon. 2nd July 2.30pm - 3.30pm Webinar Northland Weds. 4th July 3.00pm - 4.30pm The Northerner, Corner North Road & Kohuhu Street, KAITAIAThurs. 5th July 9.00am - 10.30am Scenic Circle Bay of Islands, Seaview Road, PAIHIAThurs. 5th July 1:30pm - 3:00pm Kingsgate Hotel Whangarei, 9 Riverside Drive, WHANGAREI

Winter Briefings Schedule - 2012 FREE for all EMA membersEMA To register: Call AdviceLine on 0800 800 362; or email [email protected]

EMA Alert

www.ema.co.nz | [email protected]

JUN

E

JULY

Foundations for E ective Supervision 2– Maximising Others

Examine and experiment with ways to pass on your skills to others through training, improving working relationships, reviewing and managing performance, and con� dently managing con� ict.

EMA, AucklandContact Deborah Law-Carruthers

2-4

Auckland Plan Forum

Hear from Mayor Len Brown about how the strategic Auckland Plan will encourage economic growth and industry development within urban boundaries.

Plus, hear from Council executives’ in their areas of transport, infrastructure, � nance and economic development.

8.15am – 12.00pm | NZICA, AucklandContact Karen Joe

21Occupational Safety & HealthBlock 1

Massey University Paper 114.271 This programme provides an introduction to the principles of occupational safety and health and their application to workplaces in New Zealand.

EMA, AucklandContact Kevin Chambers

20-22Block 1 of 3

Motivating Individuals & Teams

Can one individual directly motivate another, or do we motivate ourselves? Can a leader in� uence the surroundings to create a motivating atmosphere? This workshop explores what motivation truly is

and how it works.

EMA, AucklandContact Deborah Law-Carruthers

4

Conference ContactsKaren Joe | 09 367 0959 | [email protected]

Training ContactsLotta Bryant | 07 839 2710 | [email protected]

Kevin Chambers | 09 367 0958 | [email protected]

Craig Garner | 09 367 0907 | [email protected]

Deborah Law-Carruthers | 09 367 0947 | [email protected]

Did you know, EMA Tailored Training can deliver all these workshops fully customised to re� ect

your workplace... at your workplace?

Contact Rhonda [email protected]

Mobile 021 664 321

Consultative SellingTo further develop your sales skills, this workshop looks at the interaction between the Salesperson and the Customer, the skills required to uncover the need behind the need and develop solutions to meet those needs.

HamiltonContact Deborah Law-Carruthers

16

National Certi� cate in Adult Education Level 5In this course you will learn how to facilitate and evaluate interactive learning sessions for individuals and groups and how to design, evaluate and moderate assessment materials following moderation administration practices.


11-13

International Trade Documentation & ProceduresThis workshop will give you a comprehensive understanding of the minimum requirements for documentation so that your goods are not left unattended on the wharf or con� scated due to not having the right documents.

TaurangaContact Lotta Bryant

17 Engaging Contractors from an OSH Perspective

Clarify your liability in relation to the labour and services you purchase and identify the Occupational Health and Safety aspects when engaging contractors.

EMA, AucklandContact Craig Garner

20

occupational safety and health and their application to workplaces in New Zealand.

individuals and groups

evaluate and moderate

following moderation

Kevin Chambers

To further develop your sales skills, this workshop looks at

behind the need and develop solutions to meet those needs.

an OSH Perspective

relation to the labour and services you purchase and identify the Occupational

National Certi� cate in Business (First Line Management) Level 4

Discover how your company is put together from the development of its mission, vision, values and organisational goals to recruitment and sta� selection, developing sta� teamwork and team building.


30-31Block 1 of 4

Discover how your company is put together from the development

www.meridian.co.nz * Distribution and lines company charges and any applicable regulatory or Governmental levies (including the EC Levy) and taxes are not fixed, and changes in these will be passed on. Early termination fees may apply

Email: [email protected] Fax: 0800 496 222 or Call: 0800 496 777

To get fixed with Meridian or to find out more about our Partner Premium Pack:

Steve got

fixedAnd he’s happy he did. Steve fixed his energy prices when he

signed up for the Meridian Partner Premium Pack and selected the Fixed Energy Plan option. He now has price certainty and peace of mind that his energy prices will remain the same for

the next two years*. For Steve’s business, this means more cost stability and greater control for his budget planning.

Sign up for the Partner Premium Pack and if you’re an EMA member like Steve, then you’ll also receive a 12% prompt

payment discount off your total energy bill. That’s 2% more than the standard discount. (The prompt payment discount

applies if you pay in full and by the due date.)

Switching over to Meridian is quick and easy – no application fees and no interruptions to your business.

what you need to do about bullies and why newsletters/business plus/2012... · and why •...

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