P u b l i c ation of the Employers & Manufacturers A s s o c i a t i o n I n c
Issue 126 – June 2015 $6.30
BusinessPlus news | advice | learning | networking
Frucor earns top employer accolade
BUDGET TAX SPECIAL: A plan that’s working How to use Adwords to boost your bottom line Inside • ACC cuts–how you benefit • H&S no cause for alarm • China’s FT zones erode NZ advantage? • Winter briefing schedule – free to members
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On the cover...
The Employers and Manufacturers
Frucor Beverages NZ has just been recognised as a top employer by global HR consultancy Aon Hewitt as a top employer. CEO Mark Callaghan shows off the prize. Read more on page 25.
Association (Northern) Inc 159 Khyber Pass Rd, Grafton, Private Bag 92066, Victoria Street West, Auckland 1142 Ph: 09 367 0909 or 0800 800 362 Email: ema@ema.co.nz Website: www.ema.co.nz
CONTENTS
Chief Executive: Kim Campbell
Advocacy@WORK
Manager, Advocacy & Govt Relations: Mark Champion
20 TRAVELLING WITH A PURPOSE: Pitfalls to avoid
04 New people, the port &
Manager, Strategy & Enterprise: Mauro Barsi
05 Urgent long term plan needed for the port
Waikato Denis Quigan 07 823 9311
mob 027 203 0694
Russell Drake 07 838 0018
mob 021 686 621
Bay of Plenty
opportunities to invest, Incentives on offer
06 New ACC Financial
Responsibility and Transparency Amendment Bill welcomed
06 More targeted approach to
earthquake-prone buildings workplace health and safety changes
Rotorua / Taupo / South Waikato / Whakatane
Editor Gilbert Peterson Ph: 0274 949 629 BusinessPlus@ema.co.nz Writer Mary MacKinven mary.mackinven@ema.co.nz Designer Ripeka Mikaere
10 Parliament missing in action on RMA reform
24 milmeq: Engineering for the 25 Frucor Beverages earns
recognition as top employer
advice 08 TAX TIPS: Budget special
export 21
Most Americans believe free trade agreements (FTAs) are good for America - it’s not personal future
07 No need for alarm over
BusinessPlus
23 Opotiki report: Strong
news
mob 021 662 656
Clive Thomson 07 348 0334 mob 0274 372 808
22 member noticeboard:
Introducing Tick box… by Moca
12 in the lobby: Positive change for ACC
Terry Arnold 07 575 8401
when a country’s economy changes
telecomms
Manager EMA Learning: David Foley
A plan that’s working
China’s new free-trade zones to erode NZ advantage
features 17 Best workplaces: How
VTNZ used the IBM Kenexa Best Workplaces Survey to lift employee engagement and support its business goals
19 technology: Using Adwords to add to your bottom line, locally and for sales offshore
10 EMPLOYMENT CHAT: When
harassment charges lead to dismissal. recruiting overseas, and more on job performance
14 Hiring for attitude: Skills for the 21st century workplace
SCHEDULE 26 Winter Briefings Schedule 2015: Free to members
Advertising Sales Colin Gestro (09) 475 9313 colin@affinityads.com ISSN No. 1176-4953
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ADVOCACY@work
EMA’s team of advocates delivers your concerns as the collective voice of business in the region to Government and local bodies. Your membership of EMA gives your business that voice and adds strength to our collective representation. In addition, you benefit from the lobbying work of BusinessNZ of which EMA is the biggest shareholder.
New people, the port & telecomms Alan McDonald has commenced work at EMA as Senior Policy Analyst. Alan has a background in corporate and public affairs, and has worked with central government and with a diverse range of large corporates. Important visitors lately
EMA hosted a visit from Ms Kate Carnell, Chief Executive of ACCI (Australian Chamber of Commerce & Industry) and also Dr Mary Quinn, Chief Executive of Callaghan Innovation. EMA CEO Kim Campbell and Government Relations Manager Mark Champion also attended a briefing hosted by Labour leader Andrew Little in Wellington. Policy forum hears from the port in person
An excellent outline of the future shape of Auckland’s port was presented to EMA’s Policy Forum by its CEO Tony Gibson recently. (See also next page) Misinformation about the extensions and their need abounds. The port’s improvements over the past two years have lifted it to become the top performer in Australasia. They have seen container movements improve by 43%, 80% of truck dwell times at under 30 minutes, and container dwell times on the port down to two days for imports and 3.5 days for exports. He pointed out that while these were already world best practice for the size of the port,
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they were constantly targeting more improvements. Tony explained the key factor behind the Western Pier extension B3 (Bledisloe 3) was to facilitate additional and larger cruise ships coming to New Zealand. The need to extend Queens Wharf at some point was also necessary to cope with the longer ships ranging up to 355 metres. The loss of these ships coming to both Auckland and New Zealand as a whole was estimated at $1.8 million per stop. Future proposals for the Port of Auckland include the already approved 3rd container berth at Fergusson Wharf needed to facilitate newer container ships with sizes ranging from 8,000 to 9,000 TEU. New Zealand is never likely to see the super-sized container vessels - our volumes won’t justify them. Alternative sites for the port all come with major consenting and capital issues. In the meantime Tony explained how the port was moving to improve its logistics through hubs and more train use and how this may be further improved when direct access to the port from Grafton is made available. EMA policy is for the Council not to own assets such as the port, but in its case to take on a landlord model whereby ownership of the land is retained with port business sold. Infrastructure meets telecomms
An off the record meeting with Dr Stephen Gale, Telecommunications Commissioner, proved a unique opportunity to ask the “difficult questions.” Some of the matters raised covered:
• The status of competition between Spark, Vodafone, and Two Degrees • The next Trans Pacific Cable – the need for it and how the incumbents are affected • The most pressing current issues. • The major telecommunications issues affecting business • UFB uptake • Why NZ Broadband is expensive compared to international pricing Points included: • In 2012/13 the industry had total revenue of $5bn, with total investment approximately $1.75bn. • The increase in mobile use almost matches the reduction in fixed line use. • UFB installation, a government initiative, is targeting a reach of 75% of NZ’s population by 2020. • The RBI aims to cover 23% of NZ by 2016. • Fibre connections are expected to rise to 1.2M by 2020. By June 2015, UFB will be deployed to 23% of Auckland. Schools and hospitals are essentially now all done! • Average broadband connection speed has improved 34% in the last 12 months, with NZ currently operating at approximately the same speed as Australia, while being behind both US and UK. • There are constraints on international connectivity due to the current single cable. The Vodafone Joint Venture Investment in a trans-Tasman link is progressing, to link with the 6 international cables currently operating out of Australia which should alleviate the international connectivity issue. It is expected access will be available in 2019. • Businesses need to be aware of new trends and usages for internet communications, e.g. Uber and Airbnb (Airbnb is now bigger than any of the global hotel chains!). Advocacy@work cont. p6
ADVOCACY By Kim Campbell
Urgent long term plan needed for the port At the centre of the recent fracas over Auckland’s port extensions is the question how can the port expand? How much more harbour will it require? The port has said the latest round of extensions was the end game though the NZIER report commissioned by Auckland Council and published earlier this year, said, based on the present rate of demand, the Port will run out of container capacity by about 2035, by which time its consented footprint will be at capacity. For general cargo, including cars, the Institute cited the 2012 PWC report noting it was already full. In any case the public of Auckland is adamant the port can’t keep on growing on its present site and won’t be allowed to. But the port’s business and the need for it most certainly will keep on growing. If the port business were in private hands it wouldn’t be facing the present impasse. A private investor would have a long term plan developed and subjected to the Auckland Council consent processes; the conflict of interest the Council finds itself with would be stripped away. By target year 2035 we will need a major new port handy to Auckland ready to progressively take over the present port’s services with the scale to allow for future growth over ensuing decades and located with proximity to Auckland to make the best use of existing transport infrastructure. The existing port will no doubt remain, to cater mainly for harbour traffic and cruise ships. Where will the preferred new site be located, how will the development be funded, and the transition managed? Who should be charged with drawing up the plan? A private owner of the port business would have thought through these issues, with funding lines ready to draw upon. A private investor would have laid
to rest the myth that shipping either through Tauranga and/or Whangarei are alternatives to a large scale expansion. New Zealand Inc will require both of them, in addition to Auckland. In part the growth will result from the government goal of lifting New Zealand’s exports to 40 per cent of GDP by 2025, along with greater volumes of imports. To protect the value of the existing port asset it is vital a long term plan is developed. Every last dollar from
enormously. Labour productivity has improved to the point that effective container berth capacity has been increased by 300,000 standard twenty foot containers (TEUs) a year, equivalent to boosting annual throughput by 34%. The NZIER report notes since 2009 crane rate productivity has also been boosted equivalent to a 3.9% increase annually, well above the national average. Whereas for the last three years Auckland has had the highest labour, ship and vessel productivity rates of all ports in Australia and New Zealand, it recently added the distinction of the
“By target year 2035 we will need a major new port handy to Auckland ready to progressively take over the present port’s services with the scale to allow for future growth and located with proximity to Auckland to make the best use of existing transport infrastructure.”
it will be called on, and leveraged, to help pay for the new development. We need to start planning now because any new facility on the scale envisaged will take 10 years to identify, plan and consent before construction commences. Funding is the major part of the challenge. Fortunately the existing port’s success is demonstrating the business case. Its bankable, and needs to be since the cost all up is likely to be in excess of $5 billion in current values. But surely it isn’t the Council’s role to manage a development on this scale, let alone fund it. The port’s efficiency turnaround over the past two years helps
highest crane rate too, a measure held until recently by Tauranga. Two years ago the port was in the doldrums but its recovery has meant last year it delivered a dividend of $66 million to the Council. Instead of ongoing public resentment over the port’s current plans, a more productive approach would be to find a long term solution. There is no simple answer. But Auckland needs to grapple with the issue now because the port was the first life blood of the city and will remain a major contributing force for it and the national economy. kim.campbell@ema.co.nz BusinessPlus
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NEWS
New ACC Financial Responsibility and Transparency Amendment Bill welcomed Significant reductions to current levies and more transparency on levy setting are welcome changes; EMA has been pushing for these for some time. CEO Kim Campbell says the changes and the levy cuts brought by the ACC Financial Responsibility and Transparency Amendment Bill are well timed. (See also comments by BusinessNZ’s Phil O’Reilly on page 12) The $500 million reduction to ACC levies over two years comes at the right time following ACC’s sound financial performance and its solid footing which has the scheme now fully funded, Mr Campbell said. “We also like the fact there will be a more transparent levy-setting
framework in the future and the Minister’s assurance around more stable levies in the future. “This is something our organisation has pushed hard for in recent years as levies have varied greatly according to the financial fortunes of the ACC funding base.” The levy-setting framework is to take effect from 2016/17. In addition new, binding principles will be introduced to ensure the scheme is adequately funded to withstand economic volatilities while keeping levies as low as possible and stable over time. Where the cuts come from: • The three main accounts (Work, Earners and Motor Vehicle
Accounts), which are now fullyfunded so there is opportunity for significant cuts in levies across the board. • In addition the Minister has announced the discontinuation of the residual claims levy which paid for the costs of pre-1999 work accidents in respect to the Work Account. “We’re also pleased to see that, as a new Minister to the ACC portfolio, Minister Nikki Kaye has quickly come to terms with the issues and made such a positive step in the proposed ACC Financial Responsibility and Transparency Amendment Bill,” says Mr Campbell.
More targeted approach to earthquakeprone buildings In another policy win for our members, changes have been made to the Building (Earthquake-prone Buildings) Amendment Bill after submissions highlighted its flaws. The Bill in its initial form would ultimately have seen building owners either upgrade or demolish earthquake-prone buildings within a 20-year period, which with some exemptions, was a radical approach and one with signification implications for EMA members. EMA, along with Business NZ made a submission on the Bill’s flaws. Our main concerns were:
Advocacy@work cont. from p6 • The mobile market in NZ is competitive. As a result, there is not expected to be any greater regulation in the mobile market. • International roaming remains a problem, but it is being addressed. Australia/NZ rates have collapsed and trans Tasman roaming is now very reasonable though data caps can still be a problem for data.
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• The cost/benefit analysis did not stack up. • An inconsistent regulatory approach was taken to risk management. • Insurance markets were already re-pricing risk. • Minimal account was taken of local community preferences. • No compensation was provided for deemed “regulatory takings”. • Potentially significant impacts were left to regulations that had still to be developed. Housing Minister Nick Smith
Manufacturers ForUm talks commercialisation
Dr Peter Lee, Adjunct Professor at Auckland University’s Business School, teaches the Masters of Commercialisation and Entrepreneurship programme and is an advisor to several high growth companies in the US and NZ. He presented on “Innovation in Business” and very well received it was.
listened to these concerns and the following changes have been made: • Rather than a one-size-fits-allapproach the approach taken will be risk-based to building upgrades and demolition. • The new proposals for earthquake strengthening will almost halve overall strengthening costs while prioritising key buildings for strengthening sooner than originally proposed. The Bill has been delayed until July to allow further work to refine its implementation.
EMA is considering how it can work with Dr Lee to bring parts of his course into our Business Development suite of courses.
NEWS
No need for alarm over workplace health and safety changes
Paul Jarvie
The implications for your business from the changes coming in the Health and Safety at Work Act are not as onerous as portrayed. Despite scaremongering and misinformation in the debate over the pending Health and Safety at Work Act, Paul Jarvie, EMA Employment Relations and Safety Manager, says there is little that is ‘new’ for businesses in the proposed Act. “What is new? Well apart from different language, not a lot,” Paul said. “The EMA has been working with the Select Committee and submitting on key issues right throughout this process and the biggest shift is with directors having to exercise due diligence over their business. “The Regulations which support the Bill are a rollover of what is currently in place with a little more prescription and in some cases more depth. “We’re lobbying on behalf of our members to ensure the changes are as practical as possible.” Paul says there are a couple of issues that members may find difficult, including the Person Conducting a Business or Undertaking (PCBU) and the
employee engagement/participation requirements. “But neither of these are arduous. They just require a managed and thoughtful approach. “The Bill is about protecting workers and ensuring they all go home safe. If your record has been good for the past five years then there is little to worry about.
“However if you have had a number of events and or incidents then perhaps this Bill and its Regulations may be a useful means to move forward,” Paul said. The Bill has been returned to The Select Committee for further consideration. We will keep you up to date with any progress as it comes to hand.
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TAX TIPS Jo Doolan
A plan that’s working Budget 2015 Special: Red and green on the outside, very blue in the middle The latest budget demonstrated a sense of trusteeship on behalf of all New Zealanders; the Government is not borrowing to hand out more money than it can afford. The reality of the lolly scrambles that budgets can become is that future generations are forced to pay along with the not insubstantial interest cost. But Bill English promised no surprises in his 2015 budget then delivered a king hit with his $790 million child hardship package. This may have given the budget the appearance of being red and green but on closer examination these policies are very blue in the middle. The focus on child poverty certainly rained on both Labour and the Greens parade and left them struggling for a comeback. Yet the child hardship package comes with obligations with a strong incentive for parents to move from welfare to work. Longer term this is a great investment and will provide substantial future savings. Contrast this with the Australian Council of Social Services estimate that the latest Australian budget stripped more than A$15 billion over four years from families and lower income Australians. The accusation that Bill English misled the public by introducing two new taxes in the budget is a distraction. The user pays levy for those who travel is hardly a new tax; we do not call charges for rubbish collections and such like a tax. They are user pays charges for the cost of a service provided and will hardly impact on those who can afford to travel overseas. New property rules
The two year investment property rule makes a bright line test for the existing rules under which property gains are taxed and which have applied for decades. The logic is if you buy and sell an investment property within a two year period then your intention is not to have this property as a long term hold; rather you are deemed to have purchased the property with the intention of selling it.
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We have yet to see the fine print of the new rules and there may well be exemptions if you are forced to sell through hardship or other circumstances beyond your control. Also we do not know what will happen if you make a loss on selling a property. Regardless, the gains are taxed as revenue gains at normal income tax rates rather than under a so-called capital gains tax regime. As part of the new proposals IRD numbers will be required for both the seller and purchaser (resident and nonresident), and non-residents will be required to have a NZ bank account. A withholding tax is also outlined for non-residents selling property in NZ. We expect an issues paper in July 2015. Will these measures curb the property market in Auckland? Who knows? Clearly this is a multifaceted problem and one small part of its complex jigsaw will not change anything in isolation but may have an
Contrast this with the Australian Council of Social Services estimate that the latest Australian budget stripped more than A$15 billion over four years from families and lower income Australians.
impact if allied to measures such as addressing supply problems. Negative gearing
There is a push in Australia, which some are also advocating for New Zealand, to restrict losses from investment properties when the properties are negatively geared. The Australian Council of Social Service estimates this could save A$1b in federal revenue each year. (So an estimate for New Zealand is for savings in this area to be $150 million? – Ed). The Council considers negative gearing does not result in the building of new homes and overall does not benefit the community. Given Australia already has a capital gains tax the overall impact of taxation on property prices has to be seriously questioned. There are no plans at present to introduce restrictions to prevent losses from investment properties to be offset against other income if an investment property does not provide a positive return over a reasonable period of time. (There are grounds, under the existing tax rules, to argue you are not able to deduct investment property losses). What we do know is the IRD has $73 million over five years of additional funding to boost their audit activity and this is budgeted to give set returns to Government coffers of around $8 for every $1 of cost. IRD targeting untaxed gains
The sum is broken down into targeting complex financing transactions ($19.5m with an expected return of $313m), the hidden economy ($25m to return an expected $126m), and property compliance ($29m to return an expected $202m). The so-called complex financing
TAX TIPS Claire Dilks
transactions are a sore point as many of these are in the form of optional and mandatory convertible notes and conform with the determinations issued by the IRD and which are now being overturned by the use of the anti-avoidance rules. The tax deductions taken in New Zealand under these types of instruments are usually lower than those they would be entitled to under ordinary debt, and the tax savings are in the overseas country. What is needed is reform to ensure non-resident withholding tax is paid prior to an interest deduction being allowed in New Zealand, rather than the current headline grabbing focus which tries to tarnish corporates as tax dodgers. KiwiSaver kickstart
Plenty has been said about the loss of the $1,000 kick-start payment enrolling in KiwiSaver. This however is not predicted to change the attractiveness of KiwiSaver and
we have to remember that there are 2.5 million people already enrolled. (The predictions were there would be 750,000 people enrolled at this stage). The kick-start payments have already cost $2.5 billion of taxpayers’ money since 2007. The proposals to forgive $1.7 billion of penalties on child support debt are long overdue and should be extended to tax payments. Of the child support debt currently owed, only $700 million is actual debt, with the balance being penalties. Given that 54,000 of the 120,000 with amounts owing less than $30,000 annually it is ridiculous to consider these amounts should be recorded as likely to be paid.
are needed to bring forecasted unemployment down below 5%, and average salaries are forecast to go up by $7,000 to $63,000. A reduction of income taxes is signposted for 2017; a hint as to by how much is buried in the $2.5b reserves for new spending then compared to only $1b in 2016. The upside is New Zealand is performing better than any other developed country though the elephant in the room - the impact on New Zealand of the economic challenges faced by key trading partners China and Australia - is a huge risk for us and one we cannot afford to ignore.
ACC cuts
Joanna Doolan is a Partner with EY and Claire Dilks is a Senior Manager. The views expressed are their own and do not necessarily represent those of EY. joanna.doolan@nz.ey.com claire.dilks@nz.ey.com
The ACC levy reductions are welcome. Since 2012 ACC levies have reduced by $1.5 billion; we can expect reductions of $375 million in 2016 and another $120 million in 2017. An additional 150,000 jobs
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EMPLOYMENT CHAT
When harassment charges lead to dismissal. recruiting I’m a contractor and one of my staff, Warwick, has been working on the site of a client who phoned up the other day saying he doesn’t want him there any longer because he’s disrupting the place and reckons he’s been jeering and behaving like a bully. It wasn’t really news to me but how should I go about replacing him? – Bill.
“Unless you can persuade your client to change his mind, removing him from the site may well have implications for your employment of him.”
Dear Bill, In making your decision you need to consider two issues: what your client wants, which is to get Warwick off your client’s site, and secondly, you need to investigate these accusations. Unless you can persuade your client to change his mind, removing him from the site may well have implications for your employment of him. But as Warwick is your employee, its your responsibility to look into the allegations about his behaviour. Bullying includes intimidation, jeering at others, harassment, or any behaviour you decide is unacceptable, and it should be challenged. To do this you need to follow a fair process. The details about how to do this are in our Employer Guide on Harrassment and Bullying which is free to members on line. Following a fair process is important;
Warwick may have a different story and you need some hard facts, evidence, that will need to be weighed up before any action is taken. While you do the investigation its probably better to keep Warwick away from that site and regardless of whether your investigation finds for or against him, your client may well not want him back there. So you need to explore what options there are for him. After all he is still your employee. Check the terms of his employment agreement and feel free to call AdviceLine to explore the matter further, or call in more help from one of our employment consultants.
I have found someone overseas with the skills I need and want to bring them to New Zealand to employ them. How should I go about this? – Henry Dear Henry, You need to discuss your plan with a New Zealand licensed immigration
consultant or lawyer. They are the only people who can legally give you advice. Sometimes the process to do this can be lengthy and drawn out so you should get on with it right away. You can find information about one immigration specialist company on our website and if you contact them it should be worth your while advising them that you are EMA members. If you run into any unforeseen issues or the process seems to get stuck do let us know as EMA has direct contacts in the Immigration Department that we can put in touch with, or take up a matter with them on your behalf. Run of the mill issues for migrants are covered on the Government’s Immigration New Zealand website www.immigration.govt.nz. Remember it is an offence to employ someone not entitled to work in New Zealand – one way to check whether a person is so entitled to work here is to check them on the Immigration NZ’s online VisaView system. The sharing of this information through VisaView is authorised by law though you will have to register to use the service. You can also confirm a person’s right to work here by sighting their passport for a work visa. For these you need to check the conditions carefully especially renewal dates. When recruiting from overseas we recommend that you plan the process
Advice and Support when you need it! We’ve got a team of advisors, lawyers and consultants who’ll do more than take the case - they’ll help you build a workplace for the future.
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Free call AdviceLine, NZ 0800 300 362, AU 1800 300 362 or visit our website, www.ema.co.nz
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EMPLOYMENT CHAT
overseas, and more on job performance and make sure that new employees are legally entitled to work here.
I have performance concerns with one of my staff. They’re just not getting the job done and that means other employees are having to cover for them and sometimes do their work. Instead of going through all the rigmarole of dismissing him can I just ask him to resign? – Jill Dear Jill, You need to be very careful, Jill. Asking someone to resign would be asking for trouble. Doing that is likely to be construed in a court as ‘constructive dismissal’ and it could lead to a claim being made against you on this basis that could cost you dearly for hurt and humiliation as well as possibly thousands of dollars for lost wages. And its not a good look from the point of view of your other staff. Even taking small actions that could be considered likely to pressure someone to resign can be interpreted as constructive dismissal. You need to play it safe and act entirely in good faith. Start with a performance review of your employee’s work output and provide plenty of feedback on what is expected of the
“Asking someone to resign is asking for trouble and likely to be construed in a court as ‘constructive dismissal’ which could lead to a claim being made against you” job. Try and find out why they are not meeting your requirements. Also, have you made enough training available to them? But if there are behavioural breaches you could begin disciplinary proceedings right away. Ultimately all dismissals will involve paying out holiday pay and other benefits as listed in the employment agreement you have with the person. You can negotiate other payments as well, provided they cannot be construed as inducements to leave. You might like to call EMA’s AdviceLine to make sure the particulars are right, and download from our website the free-to-members Employer Guide on Discipline and Termination. • By the EMA communications team in consultation with EMA Advice, and based on real calls to EMA’s AdviceLine. All names are fictional. The information in this column is a
guide only and not to be used as business advice. EMA members are urged to contact AdviceLine for further specialist information on any employment related issue, or any other business issue, they may wish to raise. Calls at no cost should be to 09 367 0909 or 08000 300 362 in New Zealand and 1800 300 362 from Australia, 8 am -8pm weekdays. Or email to advice@ema.co.nz or read or download from our website www. ema.co.nz the A-Z of Employing – a manager’s guide on more than 100 employment related topics.
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BusinessPlus
11
IN THE LOBBY
Positive change for ACC Big changes to ACC are on the way, including large reductions in levies and a better levy-setting process. The ACC Minister recently agreed to these changes following advocacy over many years by EMA, BusinessNZ and others. Meanwhile, from other political quarters there are suggestions that levy reductions should be bigger still, and that we should fundamentally change the way the scheme operates, from an insurance-based scheme to a welfare (pay-as-you-go) scheme. ACC is still very much a political football. How it operates matters a lot, because everyone pays a significant amount of money every year into one or more of the ACC accounts; the work, earners, non-earners or motor vehicle accounts. It’s a fact that there has been significant over-charging in some of
those accounts over many years, and levy reductions could certainly be greater than the amounts promised by the Minister. It’s also true that motor cyclists’ significant accident costs continue to be heavily subsidised by other road users. And levies still don’t adequately reflect good safety management – companies with a good safety record shouldn’t be charged levies as high as firms that have a lot of accidents. These are some of the areas where we will continue to advocate for improvements to ACC. But the decision to cut $500 million from levies over the next two years
Parliament missing in action on RMA reform BusinessNZ says Parliament is missing another
opportunity to fix the Resource Management Act. Chief Executive Phil O’Reilly said recent
indications of ‘no change’ to sections 6 and 7 of
the Act means it is now clear that after six years
that Parliament is incapable of delivering anything
more than the lowest common denominator process
is a significant improvement. More could have been cut, but this amount is not inappropriate in terms of the continued stability of the scheme. There is a great deal of support for ACC’s insurance-based approach. The benefits are that it is a no-fault scheme (avoiding inevitable expensive litigation), and that it is separate from social welfare (avoiding inevitable escalating costs). An insurance-based scheme must be audited and signed off by actuaries. Actuarial oversight gives certainty about a scheme’s costs and sustainability. The beauty of an insurance-based
HAVE YOUR CAKE AND EAT IT TOO
changes.
“The RMA is directionless. It has been amended
so many times since its passage into law that it is now unclear what Parliament wants it to do.
“The question is not whether certain sections should
be merged or amended, but what the Act is trying to
Specialist consultancy & legal services at member rates.
achieve.
“Unsurprisingly, even the courts are confused with
recent case law contradicting earlier decisions.
“Its lack of clarity has led to poor implementation
by local government and unnecessary costs and uncertainty for the rest of us.
Our team can help you throughout the employment relationship, every step of the way.
“The need for fundamental reform of the law is
desperate.
“Business will welcome process changes to the
RMA but these alone won’t help grow investment, jobs and the economy.”
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BusinessPlus
Free call AdviceLine 0800 300 362 or visit our website www.ema.co.nz
Phil O’Reilly
scheme is that its premiums reflect risk, sending a signal to premiumpayers to change their behaviour accordingly - so it can help create safer behaviour. Using premiums as a signal to achieve better safety is a major benefit. Under a welfare (pay-as-you-go) scheme, the price signals are not so clear, as premiums get set by the government of the day rather than by actuaries, and do not reflect the actual cost of claims. The danger of a welfare approach is that it can engender a culture of carelessness, while an insurance-based scheme can better contain costs and more easily deliver a culture of safety. What ACC needs is to better reflect insurance principles. Past problems – cost blowouts, levy inflation and crosssubsidies between ACC accounts - have occurred because politicians rather than actuaries were directing
An insurancebased scheme can better contain costs and more easily deliver a culture of safety. the levy-setting process. This is why there will be support for the legislation foreshadowed by the ACC Minister recently. The ACC Financial Responsibility and Transparency Amendment Bill will require premiums to be audited by independent actuaries, with the results made public and their rationale explained. The ACC Minister will be required
to make public the reasons for accepting or rejecting the ACC Board’s recommendations on levy amounts, and actuarial analysis will also have to be published. This is a significant move towards better transparency and better management of the ACC scheme. It will pave the way for better experience-rating, so companies with a good safety record can be more accurately rewarded with lower levies. And improved overall transparency will over time help get rid of crosssubsidies between different ACC accounts. Getting ACC right has been a long process, ever since its inception in the 1970s. This latest move is a further step in the right direction. Phil O’Reilly is Chief Executive BusinessNZ www.businessnz.org.nz
BusinessPlus
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comment By Nicola Pohlen
Hire for attitude: Skills for Hiring based on a person’s attitude is a current, important theme in today’s employment market. Diverse organisations, large and small, recognise the impact of behaviours and attitudes on business culture, and subsequently on employee performance. Most of us would prefer to work with people who are enthusiastic, questioning, positive, sharing of ideas and with whom we can enjoy a laugh. So aligning an employee’s attitude with the organisation’s aspirations assists workplace teams work together effectively towards the business’s goals. And both anecdotal evidence and formal research confirm the impact that organisational culture has on profitability.
There are compelling internal and external reasons to focus on attitudinal behaviours; it is the smart way to go to: • Enhance the effectiveness of hiring decisions, and aligning with business culture • Improve staff retention and talent • Achieve recognition for developing a strong employee brand • Increase engagement, performance and profitability The contemporary employment Sample evaluation questions
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BusinessPlus
market in our small population base in New Zealand, and the rise of unusual, new specialist positions, requires our workplaces to place an emphasis on employee attitudes and behaviours, as well as on their technical skills. As the knowledge age evolves and new roles emerge to meet technical, customer and organisational needs, the selection of talent should also anticipate future role requirements, and make attitudinal evaluation critical towards long-term employee value and career fulfilment. Top 10 attitudinal traits
The cluster of employee behaviours that are most attractive to employers today are: • Business focus – understands importance of productivity and profitability • Communication – balanced, listens, provides/receives feedback • Curiosity – willingness to learn • Customer Focus – inside and outside • Flexibility – deals easily with change • Innovation - sees possibilities for solutions • Interpersonal abilities – builds relationships, relates well • Proactive approach – uses initiative • Results Orientation – keeps end goal in mind • Team style –works in collaboration
A check list for action
A number of resources are available to create relevant interview questions to assess your selected behaviours which align to your work environment. They include in-house expertise, EMA Training Courses, learning content on websites, and external consultants. Following are some general questions you might like to develop in the context of the complexity of a role in your organinsation: • Business focus • What’s happening in your business right now? • Customer focus • Who are your customers? How do you determine their needs? How do you meet their needs? • Innovation • Tell me about a problem that you solved in an unusual way? What was the outcome? Were you happy with it? • Proactive approach • In what ways have you contributed to improving process in your previous roles? • Results orientation
comment and Robyn Webb
the 21 century workplace st
•
Tell me about an important deadline and the steps you took to meet it. • Team style If I were to observe you for a month, what would I see you doing that highlighted to me you are a team player?
potential performance in the job. The following are strategies to assist in effective evaluation of a person’s suitability for your organisation: •
• • • More ideas
Some people perform better at interviews than others and this is not necessarily a total reflection of their
•
Ensure there are two interviewers (together or consecutively) to collaborate on the candidate assessment Question them on both technical and attitudinal skills when interviewing Include the attitudinal traits you are seeking when obtaining verbal references Engage an external resource with relevant skills in the interview process or on an interview panel Introduce psychometric assessment
Summary
We recommend you include both attitudinal and technical capabilities in your position descriptions and selection processes. This will contribute to your effective talent resourcing, development and succession. Engaging people to join your workplace teams who have the right attitudes and behaviours will enhance the thinking, solutions and outcomes for your 21st century New Zealand business.
Nicola Pohlen and Robyn Webb are principals of Pohlen Partners Ltd, recruitment specialists 021 735 018 n.pohlen@pohlenpartners.co.nz r.webb@pohlenpartners.co.nz www.pohlenpartners.co.nz
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NEWS
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Q&A: How VTNZ used the IBM Kenexa Best Workplaces Survey to lift employee engagement and support its business goals. VTNZ operates New Zealand’s largest vehicle safety inspection company with some 850 employees spread across 82 testing stations. Over the past nine years this EMA member company has transformed its approach to its employees and doubled revenue in the process. CEO Mike Walsh shares his take on how the company evolved to become overall winner of the IBM Kenexa 2014 Best Workplaces Awards. Tell us about the journey VTNZ has taken to become the best place to work in New Zealand.
Nine years ago I joined an organisation that wasn’t in a great place culturally. For a business that relies entirely on providing a service, there was a real lack of engagement from our staff that was being noticed by our customers. If our people didn’t feel great about the company and enjoy coming to work, I could hardly expect them to provide a great experience to our customers. Eventually, a Fair Go complaint became a trigger for fixing things. Our first step involved finding out how our employees felt about working here. At the time, we were measuring employee satisfaction, which I think offers an erroneous picture of how things actually are — because an employee could be quite satisfied turning up late, taking long breaks and not pulling their weight at work. Measuring engagement, on the other hand, tells us what we need to do to in order to really capture the hearts and minds of staff. How did VTNZ set about tackling the problem of employee engagement?
We opened up the lines of communication between staff and management. Effectively, we said “this is what we’re trying to do, and
we need your help VTNZ CEO Mike Walsh to do it”. Getting people’s buy-in was a crucial first step toward turning things around, so we did an engagement survey, and that identified some simple things we could do to improve the work environment — from ensuring Where is VTNZ at now? everyone had the right tools and uniforms that fit properly, to We’ve reached a point where all the implementing a medical scheme. fundamental, or ‘hygiene’ issues have These were relatively easy fixes been resolved, which allows us to and provided that important first focus on business challenges, which is step towards creating what I call a often a more positive and productive goodwill account with our employees. conversation. However, engagement is a journey In terms of business performance, — it’s not something you ‘do’ before our customer satisfaction is now in moving on to something else. So we the top quartile as measured by Infollowed up our surveys with focus Moment. We have a more customergroups around the country to really centric approach, staff turnover is understand the details and get the staff down to 8.5% (from 23%) and revenue has increased twofold and EBITDA involved in designing solutions. threefold. We’ve also invested heavily in training to support our station managers in becoming better leaders, Will VTNZ be participating in the as opposed to just being technically IBM Kenexa Best Workplaces great at testing vehicles. Survey again in 2015? What lessons can VTNZ offer other employers when setting out to increase employee engagement?
Spend time creating a set of company values (we call ours ‘The Pact’) laying out how you want to behave as a business. Create an environment of openness where things can be discussed freely and make engagement a leadership team priority. Ensure your leadership team is visible, role modelling your company values and connecting with employees in their workplace.
Yes we sure will. We’ve participated three years running now and we’re seeing a return rate of 97.5% on these surveys which says to us our staff support our involvement — a positive in itself. However, even if we don’t win it this time around, I wouldn’t see that as a loss. When we began this journey, we didn’t set out with awards in mind and I think you have to be careful that the focus doesn’t become the award, otherwise people fall into the trap of saying what they think we want to hear, instead of providing genuine feedback — the award is great recognition, but not the end goal. BusinessPlus
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technology
Using Adwords to add to your bottom line, locally and for sales offshore Grant Straker, CEO and founder of Straker Translations, explains how his translation company uses Google AdWords to drive their US$8 million business. Few businesses can generate enough global organic traffic without having to rely on pay-per-click (PPC) advertising. Moreover, traffic volume can change instantly based on a competitor’s online activities, or a change to a Google algorithm. The mere phrase ‘Google AdWords’ can strike fear into the heart of many an online marketer, but it doesn’t have to be that way. Like all advertising expenditure, utilising Google AdWords can be a cost effective and profitable strategy – if it’s done well. Let me explain how we use it. The translation industry is worth an estimated US$37 billion globally, with approximately 27,000 vendors around the world competing for business. Almost half of Straker’s revenue is generated from the USA and 30% out of Europe. The New Zealand and Australian translation sectors are competitive but relatively small, so our company has to export to the more mature translation markets to maximumise revenue. The Google AdWord process is simple enough. Advertisers identify the key words they want to bid on, how much they want to spend, and create word groupings. Typing in the
phrase ‘translation services’ triggers an auction from Google’s AdWords advertising pool. Google determines where your ad ranks based on your maximum bid and quality score, and the company with the best scoring combination of these two factors is placed in a higher position. Online users find the product or service they want, while advertisers connect with potential customers at prices lower than ‘traditional ‘mass media advertising campaigns. It’s easy to see what’s in it for Google – unofficial research indicates that around 97% of its revenue comes from online PPC, with the financial services industry dominating. Like all external advertising, it has to be well managed, well budgeted and, above all else, well researched. The most successful Google AdWords practitioners are a success because they spend a lot of pre-campaign time on research and constant analysis once live. Our company places great importance on Google Analytics, employing a full-time analyst and statistician whose responsibilities include modelling and manipulating data, tracking the lead, analysing what they typed in Google, customer location, conversion success, and ultimately how the average sales value per keyword. Google AdWords provides diminishing returns if a business bids too much. A common mistake is not grouping keywords accurately. Similarly, it’s possible to leverage negative keywords, so a translation provider that doesn’t
Grant Straker, chief executive officer at Straker Translations and Merryn Straker, chief operations officer at Straker Translations.
offer interpretation services can place ‘interpreter’ as a negative keyword. Businesses that are reactive study Google on an hourly basis and can allocate time within a daily framework to apply necessary changes that will succeed, as will businesses who look for competitive keyword variations, check customer terminology and bid only within targeted timeframes to maximise spend. Google AdWords can be an excellent touchstone for small businesses and start-ups because it provides smaller companies with an opportunity to test their market and gauge pricing without having to put people ‘on the ground’. It’s flexibility means businesses can easily ‘turn it off’ if it isn’t working in a market, readjust and switch back on postanalysis. The same rules apply to developing an AdWord strategy as they do to the wider business. Finally, be the customer. Straker Translations constantly asks itself which ad it would click on, and why? How does the competition stack up in comparison? Placing the most basic business principles can make PPC work for any company, and export products to places previously thought impossible. Grant Straker is CEO and founder of Straker Translations, the Hi Tech award-winning cloudenabled translation services provider. www.straker.co.nz
The Strake team at the Hi Tech Awards BusinessPlus
19
NEWS
TRAVELLING WITH A PURPOSE
By X
By David Lowe Former EMA Advocacy Manager, David Lowe, reports on his experiences in Timor-L’este where he is now located helping build an industry association under a VSA programme.
Pitfalls to avoid when a country’s economy changes Thousands of aid workers are in Timor-Leste, and governments from around the world are pumping in millions to get the planet’s youngest nation on its feet. The buzz word is capability building. Road construction skills, water treatment, quality seeds for cropping, healthcare, education, technology, business development, law and order... we are all working to make a difference. Timor-Leste’s economy at present is driven solely by Government rebuild contracts funded by oil and gas from the Timor Sea. But an increasing number of agencies are seeking to assist with Plan B, which is when the oil and gas runs out and the Government can no longer turn the wheels of the economy on its own. Private sector business is the accepted answer when that happens, but every attempt to start the necessary capability building for it is at risk of being stymied. During 25 years of war many people left their land and others moved in. Property rights became uncertain, and they still are. Any financial institution would face difficult questions if they used uncertain land titles as security for lending. There is no stock exchange or capital market. Businesses can’t obtain extra capital or credit from financial institutions except through private investors, and they are scarce. Allowing investors a say in how the business is run is a common topic of discussion, but the notion of private sector involvement is undeveloped and business owners are wary of it given the history. Bonds and other capital raising tools are beyond a fledging economy like Timor-Leste. The lack of capital and credit is a double whammy for local businesses; not only do they pose a real difficulty for local businesses seeking to grow, but overseas businesses have a huge advantage and often successfully out-bid locals on government rebuild projects. Local businesses need payments before commencing a contract, to buy equipment and pay wages, but overseas bidders obtain credit from their own
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“With real
pride I see the New Zealand Government running a workshop on company securities and offering training on how to build safe quality roads. Both are key issues for Timor-Leste.” country and paid upon completion. So it is not surprising Timor-Leste businesses get the small contracts and foreign bidders the big ones. The Government recently announced it would set up a Development Bank to bridge the gap between business and private investors. While helpful, this Development Bank has extremely limited funds and once again its perceived as the Government handing out solutions on the back of oil and gas revenues. Property rights and capital markets are essential to a market economy and need to be addressed to ensure TimorLeste’s economic wheels will engage on their own once oil and gas come to an end. But these issues are barely on the radar. Tourism is currently the grand plan B. Tourism is the new Bali, which is 90 minutes away, along with exporting their delicious coffee. Tertiary qualifications presently geared towards petroleum are now also targeting tourism. Students hoping to
become tour guides are adding English to their list of official languages Tetun and Portugese. While Timor-Leste could be added as a side trip from Bali, the real prize is for it to become a primary destination. But the only airline connecting directly to Australia (Darwin at that) charged me $400 for a 1 hour one way flight. At a stroke they made Tourism the next big thing just pie in the sky. If you have $1800 to spend on airfares from New Zealand, would enough Kiwis, honestly, choose Timor-Leste? I wouldn’t bet my country’s future on it. But signs of the changing times are all about. With real pride I see the New Zealand Government running a workshop on company securities and offering training on how to build safe quality roads. Both are key issues for Timor-Leste. Kiwis are envied by other expats here because of our Ambassador and Embassy staff. They open their doors to look after all the New Zealanders who wash up here, and anyone else as well, in true Kiwi style. They hosted a pot luck orphan’s lunch on Christmas Day and when I arrived, called to check how I was settling in. But the infamy of diplomatic swimming pools is where I had a change of heart. Though identified in New Zealand as a symbol of an exclusive high life, a swimming pool in Dili is merely a community amenity. So when the Ambassador opened his home and his swimming pool to the community, allowing us to traipse through his lounge for a swim free of the risk of crocodiles that infest some local beaches, I was proud to answer Novelle Zealande when asked Ita hosi nebee? Anyone wishing to join David in Timor-Leste check for opportunities on www.vsa.org.nz or www.etan.org.
China’s new free-trade zones to erode NZ advantage Three new free-trade zones (FTZs) are to be opened in the southern province of Guangdong (pictured), the northern port of Tianjin and the eastern province of Fujian. Photo / Getty. China announced recently it will open three new free-trade zones, consolidating the business model officially launched in Shanghai two years ago. The free-trade zones (FTZs) will be opened in Guangdong, the northern port of Tianjin and in the east in Fujian province with each to cover around 120 square kilometres. The Shanghai zone is also to quadruple in size from its present 28.78 square km, making it of a similar scale to the new FTZ’s and expected to include the financial centre Lujiazui, a manufacturing area and a high-tech base. The Chinese cabinet sees free trade zones as crucial in promoting reform, boosting trade and helping investment, the Xinhua news agency says. Beijing is also hoping the zones will push manufacturers into upgrading from the low-end manufacturing that made China an export powerhouse over the last two decades. The zones are being used as a testing ground for economic and social reforms. Commodities entering them are not subject to duty and
customs clearance as is otherwise the case. For example this has reportedly been a boon to the wine industry in China by allowing more flexibility in importing wine. All four zones will be subject to the same broad ranging “negative list” banning or restricting foreign investment in 122 business areas, already reduced from 139 areas. The new negative list announced to apply from May 8th is expected to be progressively peeled back further, and over time erode New Zealand’s first mover advantage under our FTA with China. The new Guangdong FTZ is intended to speed economic integration with Hong Kong; partly by allowing Hong Kong and Macau companies to issue yuandenominated bonds in the mainland and allow firms in the zone to sell yuan-denominated shares in Hong Kong. The Fujian zone is focused on Taiwan, and designed to become a “cooperation platform” for the “21st century maritime silk road” aimed at helping secure trade routes through economic diplomacy, according to an official statement. Companies and individuals in the
Fujian zone will be permitted to invest overseas directly “using their own financial assets”. The Tianjin FTZ is intended to help integrate the city with nearby Beijing and Hebei province. The Shanghai prototype The Shanghai freetrade zone was the first to model on Hong Kong and in a plan personally endorsed by Premier Li Keqiang. Commercial space was quickly snatched up by speculators betting on the future desirability of the zone’s preferential policies which drove up office rents in the FTZ and created a bubble in the sector requiring the Municipal Government to implement measures to rezone. According to the Shanghai Statistics Bureau, close to 10,000 businesses had registered within the FTZ by June 2014, 661 of which were foreigninvested enterprises. A Deloitte report says the new Negative List sets out the sectors in which foreign investment is either restricted or prohibited. Foreign investors engaged in activities not included on the list will enjoy the same treatment as domestic investors; it will not be necessary to obtain pre-approval for a foreign investment project or to set up a foreign-invested Cont. overleaf BusinessPlus
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Member noticeboard
Introducing Tick box… by Tick box, a new online training and induction tool, eliminates paperwork and hands-on delivery with a simple and secure system that each business can tailor to suit their needs. Tick box allows businesses to free up time in face-to-face training and induction. Karen Littlewood, a former Nike national manager, and Andrea Nilsson, who learnt web design from the experts in Los Angeles, created MOCA in 2005. MOCA, based in Tauranga, launched Tick box in 2014 to transform the delivery of training and inductions in day-to-day business. Tick box delivers: • Staff and visitor inductions • Procedure or task specific inductions • Staff training • Health and Safety awareness and compliance Here’s how: A simple power point-style format allows the user to copy and paste specific information, images, video
and audio, to create an induction or training, page by page. The Tick box is uniquely personalised to become your company’s exclusive online training and induction tool. It can assist businesses in the way in which they manage and ensure compliance with relevant laws and regulations, particularly with the new Health and Safety legislation. Karen and Andrea’s vision has
always been to build a company – not just create a job. MOCA is boutique by design and places people first and foremost. Karen and Andrea intentionally cultivated a rich culture of solid values, something they wanted to belong to, and attracted a bunch of enthusiasts. MOCA has built a solid reputation for delivering premium websites tailored to client sales, marketing and business objectives.
to investments from Hong Kong, Macau or Taiwan in Guangdong, or Fujian granted under the Mainland and Hong Kong/Macau Closer Economic Partnership Agreement or the Economic Cooperation Framework
Agreement), the provisions of that agreement will prevail. Major sectors in which restrictions have been lifted by the latest revision include:
Cont. from previous page enterprise in the FTZ. Instead, a filing (reporting) requirement will apply. If a more favorable policy is granted to foreign investors under a free trade agreement or other similar agreement (notably certain policies applicable Sectors
Subsectors where special (restrictive) measures are substantially removed
Manufacturing
Farm food processing; manufacturing of alcohol, drinks and refined tea; manufacturing of chemical raw materials and chemical products; manufacturing of pharmaceutical products (excluding traditional Chinese medicine); manufacturing of general and specialty equipment; and manufacturing of electrical machinery and materials
Construction
Construction and operation of city subways and light railways
Wholesale and retail
Wholesaling of grains and cotton; distribution of audio and video products, pesticides; chain stores retailing books, newspapers and periodicals; establishment and operation of gasoline stations; direct selling and online retailing
IT services
E-commerce business
Financial services
Insurance intermediary institutions (including insurance brokers, agents and assessment companies); securities investment consulting institutions
Real estate
Investment in luxury hotels, high-class office buildings, international conference centers; real estate development
Business services
HR agencies; overseas travel agencies
China is on track to post its slowest annual growth rate in 25 years this year and Beijing sees boosting trade and exports as the simplest and most effective way of stopping growth from falling further.
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Opotiki update
Member noticeboard
Strong opportunities to invest Incentives on offer Ōpōtiki District Council is focused on establishing a marine industry in the town with the imminent start of construction of an all-weather harbour. With the development will come opportunities to establish new businesses to service aquaculture, fishing and tourism. The council is set on building a better future for the town. In partnership with Whakatoea iwi, it has for 10 years doggedly pursued a project to reopen the harbor which will enable a $50-million per annum marine farm industry. Their efforts are about to pay off. To encourage industry and make things easier for developers, the council has cut fees and red tape. Many staff members are on hand to help, all with their feet planted firmly on the ground; Opotiki has no ivory towers. The council offers a one-on-one consent processing service along with a refreshing lack of bureaucracy. Look more closely and you’ll find low property rates and service charges combined. You’ll find low land prices, with residential sections right on the beach, fresh water resources to drive industry and a town on the cusp of an exciting new era. The rural sector – kiwifruit, dairying and forestry – underpins the local economy. Marine farming under
the biggest aquaculture permit issued in New Zealand has begun, with the building the new harbour expected to create a flurry of heavy construction activity over a five-year build period. The development will increase demand for accommodation and hospitality while the harbour development will open up further opportunities for fishing and tourism to complement the continuing success of the Motu Trails cycle way, one of New Zealand’s ‘Great Rides’. Opotiki District Council wants to help developers make the most of the opportunities it has created. It’s worth taking a closer look.
Ōpōtiki district offers a mild climate and a fantastic lifestyle beaches, bush, fishing, boating and other outdoor experiences second to none. Ōpōtiki also has great coffee and no traffic lights! 40-minutes by road from Whakatane, two hours from Tauranga, Rotorua and Gisborne, via State Highways. The completion of the Tauranga Eastern Link in 2016 will cut 20 minutes’ travel time. Whakatane, Tauranga, Rotorua and Gisborne all have regional airports. For more information contact: Justine McLeary 027 524 4563
Most Americans believe free trade agreements (FTAs) are good for America - it’s not personal The US Pew Research Centre conducted a survey in mid-May revealing broad public agreement that free trade agreements are good for the United States, reports Progressive Economics. 58% of respondents said free trade agreements with other countries have been a good thing for the United States. 33% disagreed. Overall views about whether trade agreements are good for the US are 10 percentage points higher today than in 2011 (58% now, 48% then).
Two key takeaways were: The majority of positive views toward FTAs holds across income categories. Where differences emerge across income categories is when Americans consider whether FTAs impact their personal financial situation. Most Americans recognize (and appreciate) their lives are filled with global products and services from their first sip of coffee in the morning to the energy lighting the book they read in bed at the end of the day. But the Pew numbers show that even
if they aren’t sure whether FTAs help their personal financial security, most Americans do believe FTAs offer a general benefit to the country. Also the new Pew research underscores there are only modest partisan differences over the impact of free trade agreements on the country and people’s personal finances. The debate between Democrats and Republicans in Congress may not mirror the closeness in views among Democrats and Republicans in the general public. BusinessPlus
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Member noticeboard
Engineering for the future Four years ago New Zealand’s leading design, engineering and manufacturing business merged its operations and renamed itself Milmeq. Ever since it has been scooping up national excellence, innovation and business awards, (including Supreme Business Excellence winner at the recent Westpac Business Awards Best of the Best) helping realise the company’s vision to become a world leading contracting supplier to the primary food processing industry. Chief executive Mike Lightfoot says the run of awards recognises the company’s world-class quality innovation and the attributes of his 130 plus staff. “We have always had the ethos that it is people that make the business, and it’s our people’s solution-focused, can-do approach that leads to this success; my job is just to steer the ship,” he said. “We all share common values and the same goal to develop and design the best solutions for our clients.” The majority of the Milmeq team are based at their manufacturing site in Dunedin, while business operations are run from offices in Auckland and Brisbane. The company’s strong peoplefocused philosophy dates back to 1952 in Auckland when the company was formed by Sir William Goodfellow under the name Refrigeration Engineering. The company’s early engineering innovations included the design and manufacture of evaporators for the blast freezing of meat. Then in the 1970s and 1980s the company led the sheep meat industry’s change over to processing the animals upside down. This inverted system is recognised worldwide for superior food hygiene Milmeq’s awards include:
and reductions in hard manual labour. In the mid-1990s the company’s most well-known innovation, large plate freezing technology, was developed in its newly established Brisbane based operation to fast freeze cartons, resulting in superior quality and extended shelf life of exported products. Milmeq’s chilling and freezing retention tunnels were also the first of their kind and now a global standard, while its recently developed robotic Milmeq Fully Automated Storage Transfer (MFAST) system is achieving labour savings in materials handling for manufacturing businesses. Mr Lightfoot says: “Our people engineer for the future. We aim to future proof systems for our clients to provide flexibility and equip them for the constantly changing food processing industry. “Throughout our 63 year history we have enjoyed steady growth because we have continued to look outward, diversifying our service offering and expanding our markets, but most of all we have invested in our people and that’s what makes a difference.”
Milmeq Horizontal Red Meat Plate Freezer
Milmeq have been making Horizontal Plate Freezers for over 40 years. Cartons of the same size are compressed together between horizontal plates creating rapid contact freeze and flat surfaces that deliver efficiencies in palletising and distribution. The technology also helps with energy savings, superior quality and extended shelf life.
Milmeq_MFAST
Milmeq Dairy Tunnel (Single Retention Tunnel)
The Milmeq Single Retention Tunnel can accommodate varying product types and carton sizes requiring the same chill or freeze time.
Milmeq’s Fully Automated Stock Transfer, or ‘MFAST’ developed to help manufacturing businesses achieve labour savings in materials handling. The system sorts and prioritises cartons as they enter the storage enclosure, for customising clients’ pallet requirements. Mike Lightfoot, Milmeq’s ceo is at 021 967111 mlightfoot@milmeq.com
• 2015: Winner, Excellence in Innovation, New Zealand International Business Awards • 2014: Winner, Supreme Business Excellence, Westpac Business Awards: Best of the Best • 2014: Winner, Excellence in Exporting, Westpac Business Awards: Best of the Best • 2014: Finalist, New Zealand Innovators Awards • 2011: Winner, Mechanical & Manufacturing, New Zealand Engineering Excellence Awards
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BusinessPlus
Member noticeboard
Frucor Beverages recognised as top employer A winning culture and having the majority of staff aligned with its company values has seen Frucor Beverages New Zealand recognised as an Aon Hewitt Best Employer. The annual awards, presented by human resources consultancy Aon Hewitt, acknowledge a company’s commitment to their employees by measuring workplace culture and practices. This is the fourth time Frucor New Zealand has achieved this award since 2011. The accreditation process involves three stages – an employee engagement survey, a people practices inventory and an organisational audit. Frucor New Zealand CEO Mark Callaghan says fostering an engaged workplace culture has consistently been a focus for the Frucor leadership team. “We’re passionate about what we do at Frucor. We love the drinks we make and we have even defined our purpose as ‘a Hunger for Making Drinks Better’. “Without question people come first in everything we do… We are committed to providing our people with the freedom to create, push the boundaries and ‘to go for it’,” Mark says. The results of the company’s 2015 staff engagement survey show that 89% of Frucor New Zealand’s staff are proud to be associated with the company, with 82% feeling encouraged to suggest new ideas to improve the way things are done there. It’s areas such as these as well as working with great brands, having a laugh and being part of a supportive team that Frucor’s longest serving employees say they love about working for the drinks manufacturer. Out of 702 NZ staff, 20% have worked at Frucor for more than ten years and twenty staff have reached significant milestones of more than 20 years of service. Ted Audain first started at
Frucor in the manufacturing department in 1980 and this year marks his 35th year with the company. “The environment is great to develop skills you would normally obtain by working at a number of different companies. Frucor’s values and culture support the staff to be physically and mentally safe,” Ted says.
a year, and the market leader in energy drinks in Australia and New Zealand, and the market leader in juice in New Zealand. Frucor manufactures, markets and distributes a range of fruit juices, fruit drinks, energy drinks, waters and soft drinks. Its brands include ‘V’, Mizone, H2Go, Just Juice, Fresh-Up, McCoy, Simply Squeezed, Arano, NZ Natural, G-Force,
“We’re passionate about what we do at Frucor. We love the drinks we make and we have even defined our purpose as ‘a Hunger for Making Drinks Better’” Frucor Beverages NZ CEO Mark Callaghan with the Aon Hewitt Best Employer plaque.
Frucor New Zealand, which manufactures household brands such as Just Juice, V and h2go was accredited as a Best Employer in 2015 along with 15 other companies across New Zealand and Australia. Since its beginnings in the early 1960’s as part of the New Zealand Apple & Pear Board, Frucor has evolved from a small local juice business to become a significant international beverages company, with 1000 staff and annual revenue of NZ$500 million. Frucor exports approximately NZ$250 million of beverages
Pepsi, Mountain Dew, 7Up and Frank. Energy drink ‘V’ is also distributed throughout Europe and the UK. Since 2009 Frucor has been wholly owned by leading Japanese beverage and food company Suntory Group.
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SCHEDULE
FREE for all EMA members / To register call AdviceLine on 0800 300 362 or email AdviceLine@ema.co.nz
Winter Briefings Schedule 2015 Waikato / BOP Day/Date
Time
Venue
Mon. 20th July
9.30am - 11.00am
The Junction Hotel, Function Room, 700 Pollen St
THAMES
Mon. 20th July
3.00pm - 4.30pm
Trinity Wharf, 51 Dive Crescent
TAURANGA
Tues. 21st July
9.30am - 11.00am
East Bay REAP (Upstairs), Reap House, 21 Pyne Street
WHAKATANE
Tues. 21st July
3.00pm - 4.30pm
Suncourt Hotel & Conference Centre, 14 Northcroft Street
TAUPO
Weds. 22nd July
9.30am - 11.00am
The Holiday Inn, Corner Froude & Tyron Streets
ROTORUA
Weds. 22nd July
1.30pm - 3.00pm
Central North Island Kindergarten Association, 6 Glenshea Street
PUTARURU
Weds. 22nd July
5.00pm - 6.30pm
Big Apple, 584 Main South Road
OTOROHANGA
Thurs. 23rd July
9.30am - 11.00am
Kingsgate Hotel Te Rapa, 100 Garnett Ave, Te Rapa
HAMILTON
Day/Date
Time
Venue
Thurs. 23rd July
2.30pm - 4.00pm
Bruce Pulman Park, Teamsports Centre, Walters Road
PAPAKURA
Fri. 24th July
9.30am - 11.00am
Butterfly Creek, Tom Pearce Drive
MANGERE
Mon. 27th July
9.30am - 11.00am
QBE Stadium, ASB North, Stadium Drive
ALBANY
Mon. 27th July
3.00pm - 4.30pm
Bruce Mason Centre, 1 The Promenade
TAKAPUNA
Tues. 28th July
9.30am - 11.00am
Stamford Plaza, Albert Street
AUCKLAND CITY
Tues. 28th July
2.30pm - 4.00pm
Ellerslie Event Centre, 80 Ascot Avenue
REMUERA
Weds. 29th July
2.30pm - 4.00pm
Waipuna Conference Centre, 58 Waipuna Road
MT WELLINGTON
Thurs. 30th July
9.30am - 11.00am
Counties Inn, Rata Lounge, 17 Paerata Road
PUKEKOHE
Thurs. 30th July
3.00pm - 4.30pm
Waipuna Conference Suites, 60 Highbrook Drive
EAST TAMAKI
Fri. 31st July
9.30am - 11.00am
Quality Hotel Lincoln Green, 159 Lincoln Rd
HENDERSON
Fri. 31st July
3.00pm - 4.30pm
EMA Room 2C, 159 Khyber Pass Road
GRAFTON
Mon. 3rd Aug.
7.30am - 9.00am
EMA Board Room, 159 Khyber Pass Road
GRAFTON
Mon. 3rd Aug.
11.00am - 12.30pm
Titirangi Golf Club, Links Road
NEW LYNN
Tues. 4th Aug.
2.00pm - 3.00pm
Webinar:
Auckland
Northland Day/Date
Time
Venue
Weds. 5th Aug.
3.00pm - 4.30pm
The Northerner, Corner North Road & Kohuhu Street
KAITAIA
Thurs. 6th Aug.
9:00am - 10:30am
Scenic Circle Bay of Islands, 58 Seaview Road
PAIHIA
Thurs. 6th Aug.
1:30pm - 3:00pm
Kingsgate Hotel Whangarei, 9 Riverside Drive
WHANGAREI
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BusinessPlus
Coming in July Six Sigma, Green Belt Programme Learn rigorous skills in business improvement to optimise processes in your organisation 28 July - 1 August | Auckland The 5 day Green Belt Core Skills Program provides participants with an overview of Six Sigma as well as key concepts associated with effective project teams. Green Belts receive a subset of the more comprehensive Black Belt curriculum. Green Belts learn: structured problem-solving methodology for addressing business improvement projects; intermediate-level quality tools within that methodology; how to generate bottom-line financial results.
Accident Investigation Using Root Cause Analysis Accidents will happen – learning from them creates a safer workplace. 22 July | Whangarei
Communication Skills Using the TetraMap® of Behaviour Build strong relationships and improve performance with TetraMap®. 28 July | Tauranga
19 August | Auckland
Safety Leadership Programme Learn how to lead a safety culture at work. 28 July | Auckland
Women in Management Quick tips for professional women looking to excel. This course is run through our Online Webinar system (Powerbox) and is two sessions, 1.5hrs per session. SESSION 1: 23 July | Nationwide SESSION 2: 30 July | Nationwide
The Ultimate Team Leader Excel at supervising, growing and leading your team. This programme is run over six days, 1-day a month. 14 July (Workshop 1) | Auckland
22 July (Workshop 1) | Tauranga
Great leaders understand how to adapt to different situations. They carefully select their management and communication techniques at every opportunity. These skills form the backbone of this comprehensive 6-month programme for team leaders. Participating in this series of workshops will help you succeed in your role by providing new insight into key areas such as motivation, performance management and how to analyse a variety of situations you’re likely to face in the workplace.
0947/0115