BusinessPlus May 2017

ISSUE 147 May 2017

Exporting engineers diversify Bend it, shape it, any way you want it P31

INSIDE Resource management law under pressure

P5, 9

Claims of bullying, humiliation and unfair treatment

P16

It was an accident: yeah, right

P20

The long haul to China

P29

...AND MUCH MORE

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On the cover: From left: R R Bramley’s general manager Rick Ellis, sales manager Paul Lineen and engineering manager Brooke Walker.

BusinessPlus is published by The Employers and Manufacturers Association (Northern) Inc (EMA) EMA is the major shareholder of national lobby group, BusinessNZ. BusinessPlus is attached to EMA’s fortnightly email newsletter, e-report.

Editor: Mary MacKinven T +64-9-367 0939, M +21 636 089 E mary.mackinven@ema.co.nz Designer: Ripeka Mikaere Printer: MHP Distributor: Rocket Mail Advertising sales: Colin Gestro, Affinity Ads, M + 27 256 8014 E colin@affinityads.com ISSN No. 1176-4953 EMA Head office – Auckland: 145 Khyber Pass Rd, Grafton, Auckland, NZ Private Bag 92066, Victoria St West, Auckland 1142.

P +64 9 367 0900 E ema@ema.co.nz Hamilton: EMA/ExportNZ Waikato 103 Tristram Street, Hamilton.

PO Box 490 Waikato Mail Centre, Hamilton 3240.

P +64 7 839 2713 Tauranga: ExportNZ Bay of Plenty Smart Business Centre, 65 Chapel Street, Bay Central, Tauranga, 3110.

PO Box 13202, Tauranga Central, Tauranga 3141.

P +64 7 571 0600 AdviceLine: NZ 0800 300 362 AUS 1800 300 362 E advice@ema.co.nz Phone 8am-8pm weekdays for information about employment and more, plus referrals to EMA Legal lawyers and your local EMA consultant in employment relations and/or occupational health and safety.

Visit www.ema.co.nz for owner and staff training programmes, conferences and other events, employer guides and templates, manufacturer services, media statements and submissions, export development and more EMA contacts Chief executive: Kim Campbell Membership manager: Kayne Franich External Relations manager: Val Hayes Advocacy & Industry Relations manager: Mark Champion Learning manager: David Foley Enterprises & Strategy manager: Mauro Barsi Industrial Relations & Safety manager: Paul Jarvie Finance & Technology manager: Paul Yeo Corporate & Building Services manager: Sheree Alcock ExportNZ manager: Catherine Lye

The engineering trades will know Auckland-based Bramley company as a 90-year-old supplier of robust and light machines throughout New Zealand and Australia, and in the US. Recent capital investment has expanded its machining arm to custom fabrication of highly computerised components.

Full story page 31

Contents

Exporting engineers diversify bend it, shape it, any way you want it p31

INSIDE RESoURcE maNagEmENt law UNDER pRESSURE

p5, 9

claImS of bUllyINg, hUmIlIatIoN aND UNfaIR tREatmENt

p16

It waS aN accIDENt: yEah, RIght

p20

thE loNg haUl to chINa

p29

...aND mUch moRE

“Helping business succeed”

Commentary EMA’s CEO Kim Campbell on: Case for change to build New Zealand’s prosperity The Auckland Council budget: tax, spend and no sign of savings Tackling traffic – big opportunities for business in climate change solutions BusinessNZ CEO Kirk Hope on: How to replace the Resource Management Act Stories within the story of manufacturing activity

10

Seen @ EMA events in Auckland

12

5 6 8 9

Employment Getting employment law all sorted

13

The importance of career paths that lead nowhere

14

Fringe benefit tax: are the benefits really “fringe”?

Employment Chat Q and A: Help! Claims of bullying, humiliation and unfair treatment When the union comes calling

15

Responding when an employee is too sick or injured to work

19

It was an accident. Yeah, right.

20

Taking charge of one’s own health and safety

21

Take an intern, mitigate the talent shortage

22

16 18

In Business ICT: The Internet of Things is transforming production management

23

Innovation: Cool tech keeping track of smart fridges

24

Marketing: What’s the hype with blogs in business?

25

Property: Should you stay or go? Office refurbishment in focus

26

International Trade Show time for NZ’s export community

27

Buying Brazilian

28

Navigating the long-haul China export journey

29

Member Profiles Huawei Technologies: Chinese ICT firm invests in NZ

30

Bramley: Bend it, shape it, any way you want it

31

+ Inside BusinessPlus is free to EMA members

ISSUE 147 May 2017

Training Plus insert detailing May training courses, and more BusinessPlus May 2017

3

Advocacy helping Advocacy helping business business succeed succeed

As an EMA member you are part of a 4000-plus business collective As an EMA member you are part of a 4000-plus business collective which employs more than 250,000 staff. which employs more than 250,000 staff.

This collective voice is extremely powerful. It allows the EMA Advocacy This collective voice is extremely powerful. It allows the EMA Advocacy team to exert influence on your behalf and be your voice at the table team to exert influence on your behalf and be your voice at the table to deliver a landscape which allows business to be more effective and to deliver a landscape which allows business to be more effective and successful. successful.

The The team team has has honed honed its its approach approach to to advocacy advocacy and and the the key key issues issues it it will will focus on.

This ensures the team’s efforts are used to shape the key focus on. This ensures the team’s efforts are used to shape the key decisions decisions influencing influencing your your business business environment. environment.

Advocacy’s Advocacy’s key key areas areas of of focus focus

Coping Coping with with the the challenge challenge of of growth growth and and development, development, in in particular how this relates to infrastructure development, particular how this relates to infrastructure development, transport transport and and the the resource resource management management system system

Addressing skills development, education and training Health and safety and all employment law related matters Export Export and and trade trade opportunities opportunities for for growth growth

Contact Contact us us at at myvoice@ema.co.nz myvoice@ema.co.nz or or 0800 0800 300 300 362 362 to to discuss discuss how how our our advocacy advocacy efforts efforts can can help help your your business business succeed. succeed.

CEO Commentary

By Kim Campbell

Case for change to build New Zealand’s prosperity For some time now we at EMA have been beating the drum about the need for better alignment among New Zealand’s systems for managing infrastructure planning and natural resources, and local government activity.

Our frustration with the current system is well documented. We have built a strong case for reform and in the past year we have extended this to include why the current system, and the Resource Management Act (RMA) in particular, is also failing the environment. The Local Government Act and Land Transport Management Act also conspire to make the system slow, expensive and frustrating.

The RMA is now 25 years old, and had been amended some 28 times, with yet another significant amendment enacted last month. But it is still not fixed. We do not want another round of amendments which only tinker around the edges and do not address the core issue.

We have diligently worked to broaden the debate for five years already. New Zealand is ready for this discussion, which must lead to an evidence-based solution.

The need for a cohesive strategy to drive reform of the country’s

resource management and planning systems is now vital for New Zealand’s prosperity, as evidenced in housing and infrastructure shortfalls, for example.

Leadership required We have formed a coalition with the Property Council New Zealand, Infrastructure New Zealand and the Environmental Defence Society to build a case for change on how to provide for the nation’s growth and development within acceptable environmental limits.

The Productivity Commission’s report on urban planning has made a very useful contribution to the developing debate on these issues. It addressed concerns about the RMA, and the challenges faced by towns and cities, but its terms of reference were narrow.

Our coalition believes a sound basis for reform has now been established and there has emerged a commitment amongst politicians to examine the way we should manage the environment and development, long term.

Now it is time for national leadership on this issue.

Our coalition recognises there is no quick fix as the problem is complex,

systemic and embraces many interests.

As well as improving the core laws, our coalition is looking for an improved framework to address the related components of planning, funding, governance, monitoring and enforcement.

The solution needs to have crossparty support, be independent, have integrity and deliver a result which can meet our needs now and in the future. The process to deliver this could be something along the lines of a Royal Commission, or an inquiry of a similar nature.

There are many options, but whichever method is chosen for the review process, it must have authority, be transparent and inclusive.

We have clearly identified the issue, and laid the groundwork for change.

The next step is to start the process.

Evidenced by our coalition’s recent report on the failure of the RMA to protect the environment, the time has come for all members of Parliament to stop bickering, stop tinkering and to demonstrate some mature leadership. This is a oncein-a-generation opportunity for positive change.

Kim Campbell is chief executive of the Employers and Manufacturers Association. Email kim.campbell@ema.co.nz BusinessPlus May 2017

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Commentary

By Alan mcdonald

The Auckland Council budget: tax, spend and no sign of savings Rates fund less than 50 per cent of the Auckland budget and the Council needs other tools.

The halt in lowering the rates differential that business pays is unlikely to even pay for the $7.5m proposed introduction of the Living Wage that our Councillors seem almost certain to pass to give themselves a case of the warm fuzzies at ratepayers’ expense.

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BusinessPlus May 2017

Perhaps the most disturbing aspect of the Auckland Council’s proposed budget for 2017-18 is that it illustrates the City is continuing to fall behind on meeting the infrastructure demands and costs arising from the region’s rapid growth.

There are rivers of sewage pouring into our harbours every time it rains heavily in Auckland (so just about weekly) but the $1 billion Central Interceptor pipe to separate sewage and storm water is not funded and not due to start construction until 2025.

The plan to fix our traffic congestion (the Auckland Transport Alignment Plan or ATAP) was agreed a year ago, but is $4 billion short in funding in the first 10 years of a 30-year programme. And there are no visible signs of activity since agreeing the plan.

Clumsy attempts at fundraising What’s in the Auckland budget to address those big infrastructure issues? A proposed hotel building tax that might raise $20 million plus an uncosted tax on developers and a one-year, temporary halt on reductions in the business differential that will add a paltry few million to the city coffers.

The halt in lowering the rates differential that business pays is unlikely to even pay for the $7.5m proposed introduction of the Living Wage that our Councillors seem almost certain to pass to give themselves a case of the warm fuzzies at ratepayers’ expense.

Inflation is running at just 1.5 per cent, while ratepayers are being asked for a minimum 2.5 per cent increase. And there are no signs of any attempts at cost management or creating efficiencies referenced in the budget.

However, the Mayor has, post budget, announced a close look at Council costs. Let’s hope that is a genuine attempt at cost efficiencies rather than just making up a number and cutting staff costs to fit. That approach almost inevitably ends in rehiring lost departments or bringing in contractors to cover the gaps.

The current budget solutions and the tossed out Regional Petrol Tax - something central Government has made clear for several years that it won’t support or allow – are never going to fill the funding gap for Auckland. The current Interim Transport Levy is also in this category and is due to expire next year, leaving another funding gap.

The proposed Targeted Accommodation Rate and the Targeted Rate on New Developments appear clumsy and may not have the affect desired. Both could do with further consideration and development through a working group approach, and inclusion in the Long Term Plan consultation process rather than what appears to be a knee-jerk response to a short-term issue.

The Targeted Accommodation Rate would be just another rate on building owners, some of whom would face a 200 per cent increase, and it may be the fourth or fifth rate for some of these building owners, especially those in the central city. It will raise funds from just 9 per cent of those estimated to benefit from tourism in Auckland, and is proposed at a time when there is a national conversation going on about how to better fund national and regional tourism infrastructure.

Development rate fiasco

More tools needed

The development rate is also flawed, especially as it appears possible for Council to double dip. The boundaries and definitions between the current Infrastructure Rate and the proposed development rate are ill-defined and developers could potentially pay both at the same time.

Two other clear themes are emerging around funding Auckland’s growth.

The proposed development rate also needs clarification as to how it will treat staged development, and as to what actually constitutes development. At first glance it also appears the development rate would just go into Council’s general fund instead of being applied to providing infrastructure in the area where development is occurring.

The sentiments behind the development rate are in line with current thinking in many global markets where those benefitting from new infrastructure are being asked to pay for it. The proposal also aims to discourage land banking, as developers sitting on land will potentially have to pay the targeted rate as the area around them is developed, thereby encouraging them to use their land rather than “bank” it.

Value capture is widely used to fund housing and other development in the USA and UK, but Auckland missed a real chance to apply similar value uplift rates in an around the new central rail corridor and rail stations.

But this current proposal appears unwieldy and could have done with a good dose of industry input and consultation to help make it work.

The EMA favours taking part in the national conversation ahead of any regional initiatives.

Auckland particularly, and local governments generally, need more tools to add to their mix of funding options.

Rates fund less than 50 per cent of the Auckland budget and the Council needs other tools. That could mean infrastructure bonds and a share of GST, tolls or congestion charges, greater use of public private partnerships and better use of the City’s existing balance sheet.

The latter point is something central Government expects. The massive hole in Auckland’s infrastructure financing can only be filled if central Government is willing to help both financially and through changing regulation and legislation to allow access to different funding tools.

But Government has also made it abundantly clear in every conversation that the EMA and other interest groups have around infrastructure provision, that it wants Auckland to stump up some cash.

Central Government does have the ability to pay for more Auckland infrastructure but politically, Government will not loosen its purse strings until it can say to the rest of New Zealand that Aucklanders are also paying their share. That means Auckland Council has to look at its existing assets and realise some cash, even if the amount appears to be relatively small in the grand scheme of things.

If the Council doesn’t stump up, you could read an ominous warning into the Prime Minister’s comments to a business audience a couple of weeks ago, when he noted that comparatively, Auckland’s rates are really quite low.

Alan McDonald is EMA’s policy director. Email alan.mcdonald@ema.co.nz BusinessPlus May 2017

7

Commentary

By Abbie Reynolds

Tackling traffic – big opportunities for business in climate change solutions Traffic snarl-ups already strike one in four main roads in Auckland during peak commuter periods. By 2020, Auckland Transport predicts one in three main roads will be congested if current trends in population and vehicle use continue.

The cost to our businesses, lifestyle and the environment is significant.

A major independent report identifies some pathways for New Zealand to achieve the carbon reduction targets set in the Paris Agreement in 2015. These pathways also offer solutions to Auckland’s traffic woes and bring big opportunities to business.

The Vivid Economics Report called “Net Zero in New Zealand” was commissioned by 35 New Zealand MPs. It explores several scenarios that would help New Zealand achieve the target of net zero emissions during the second half of this century.

It makes it clear that New Zealand needs to do much more than just beef up its Emissions Trading Scheme.

Scenarios to lower emissions In one scenario, 85 per cent of New Zealand’s passenger vehicle fleet would be decarbonised, with 3.5 million electric cars and light commercial vehicles on our roads by 2050. As the technology becomes better and cheaper, up to 25 per cent of the heavy vehicle transport fleet would also go electric.

Another scenario looks at the possibility of shifting freight from

road to rail, and electrifying national rail networks.

All of the scenarios call for the transition to a fully renewable energy sector, identified as cost-effective and relatively easy to do, because many of our electricity sources are already low carbon.

I’m excited about these options, because the co-benefits would be significant.

Aucklanders would see more efficient public transport and freight options, which would in turn reduce traffic and make savings in time and fuel. They would also see health benefits, as cars go electric and the streets become cleaner and quieter. New Zealand’s susceptibility to volatile international fossil fuel prices would diminish and our energy security would grow.

Technology innovation opportunities However, none of this can be achieved without the development of lowemissions technology. And that’s another aspect of this report that excites me – it starts to identify the opportunities for small, medium and large businesses to develop and innovate low-emission, hi-tech solutions. The report suggests government and research institutions partner with small, medium and large companies to find solutions.

We really need business to start exploring the potential. It’s been said that climate change could be the greatest driver of innovation since World War II. We could miss out if we don’t start planning for the

opportunities, as well as risks.

In New Zealand there are already great examples of business leaders making real investments in climate change solutions.

Christopher Luxon at Air New Zealand and Mike Bennetts at Z Energy both regularly speak about their business strategies that have climate change at the core. Z Energy has invested $26 million in the country’s first commercial-scale biodiesel plant and is rolling out more electric vehicle chargers.

Fraser Whineray at Mercury and Alistair Davis at Toyota publicly encourage their customers to use low emissions and electric vehicles.

There are a number of actions I’d suggest businesses take if they want to help ease rush-hour traffic and save time and money: • If practical, offer staff more flexible working hours or the opportunity to work remotely – less time stuck in traffic means more time at work and at home. BNZ offers its staff flexible hours when it can, because it drives a more agile and productive workforce and enables a better work-life balance.

• You could also review your delivery or freight schedule and see if the business can consolidate deliveries. OfficeMax has a Freight Carbon Emissions Calculator, which it is keen to use with its customers for more efficient delivery options. Companies like Cityhop also provide electric cars that your staff can rent using a carsharing app. The scheme would encourage staff to bike or take public transport and reduce traffic at peak times.

The Vivid Report also represents a step change in New Zealand politics.

It was commissioned by MPs from across the political spectrum, which indicates a willingness to work together on climate change, beyond the electoral cycle. I think this report starts the conversation that will help us get there.

Abbie Reynolds is executive director of the Sustainable Business Council. Visit www.sbc.org.nz 8

BusinessPlus May 2017

Commentary

By KIRK HOPE

How to replace the Resource Management Act Business has been concerned about the Resource Management Act (RMA) for a long time.

Anyone wanting to grow a business, build a building or install some infrastructure will at some stage need a consent from local government, working under the rules of the RMA. Unfortunately, those rules are not working – for communities, the environment or our development needs.

Some of our most pressing problems – housing shortages, high house prices, costly business expansion, congested roads and lack of good infrastructure – stem largely from the RMA. This is because planning regulations developed by local government under the RMA have in many cases become overly complicated and difficult, constraining business from growing.

A good example is the urban boundary around Auckland. Planners working under RMA rules have decreed development may only take place inside an artificial boundary around Auckland’s squeezed isthmus area. This has pushed up the price of houses and sections inside the boundary, making them unaffordable for many.

Another example is the kind of district plan now operating in many cities and towns that dictates what you may or may not do with your own property - rules requiring sitting rooms to face the street, fences of a certain height or approved colours for letterboxes.

The RMA does not direct planners to restrict boundaries and impose trivial conditions, but it does allow them

to do it – and that’s how we have become overregulated.

Two environments Last month the Productivity Commission said it was time to replace the Resource Management Act. The Commission has analysed the problems caused by the RMA and concluded that we could do much better.

The Commission has made recommendations for a replacement act. First, it suggests separate objectives for the natural and the built environments - a good recommendation.

The natural environment needs protection. We want planning laws to protect the water, soil, air and vegetation in the natural environment where appropriate.

The built environment, on the other hand, needs enablement. Here we want business, housing and infrastructure development to be enabled (of course within appropriate environmental standards).

Under the RMA, a big problem is the protective - not enabling – approach being applied to the built environment.

A protective approach to the built environment simply leads to more and more restrictions being placed on development, as we have seen.

A new act with separate objectives and principles for the natural and built environments would be a great improvement.

Clear wording Another significant recommendation is for clearer wording.

Many of the problems evident in cities today have arisen because of broad, unclear wording in the RMA that allows planners to regulate or overregulate as they see fit, within their own understanding of what the RMA requires.

The Productivity Commission recommends a new act should have clearly defined objectives to give planners clearer parameters to work within.

In a new act, the objectives should also be appropriately circumscribed.

Under the RMA local government has a broad mandate, for example, to enable everyone’s “social, economic, and cultural well-being and health and safety”.

More narrow objectives, focused on local government’s core responsibilities, would be welcome, especially by communities wanting better infrastructure including roads and water and sewerage connections.

These are just the basic recommendations made by the Productivity Commission for replacing the RMA. There are many others covering planning, housing, infrastructure and the environment.

It will be a significant undertaking to write a new act because of the wide range of matters involved. Other acts will need amending as part of the process, including the Local Government Act and Land Transport Act. But it is a job that is much needed and shouldn’t wait any longer.

Let’s hope Government heeds the Commission’s recommendations and moves quickly to replace the RMA.

Kirk Hope is chief executive of BusinessNZ. Visit www.businessnz.org.nz BusinessPlus May 2017

9

Commentary

By Stephen Summers

Stories within the story of manufacturing activity Our members’ survey of activity in the manufacturing sector, that creates the BNZ-BusinessNZ Performance of Manufacturing Index (PMI), is one of the quickest and easiest surveys for business to fill in. It asks just five questions requiring no research to answer – but this does not mean the results lack rich veins of information on how New Zealand’s manufacturing sector is performing.

The PMI is monthly, and therefore results are generally discussed in that way. However, other surveys that we compare the PMI with often look at annual and quarterly results. So, if we were to apply the same analysis, what would the PMI trend series look like?

So, what if the PMI is shown in quarterly average values? Figure 2 (above) shows more variance over the past four years, which in many ways is expected, given seasonal patterns and times when external economic shocks can help or hinder the sector.

Gaining momentum after slowdown

However, the trend series for each of these four years shows something different, leading to three general observations.

First, activity never really hit its mark at any stage during 2015. Sure, the results were still positive and showing expansion, but there wasn’t one quarter when manufacturers showed stronger growth.

Figure 1 (above) shows the annual average results for the PMI during the past five years. The main thing that stands out is that, overall an annual basis, the level of expansion has been both positive and consistent, with an average value of 56.0 for three of the past four years.

To provide some context, the overall average of the PMI since it began in 2002 is 53.2, while at the height of the global financial crisis it was 46.7. A score above 50 indicates the sector is in expansion; below 50 that it is in decline.

The second observation is that the improving trend of 2015 is also part of the 2016 story.

So much so, that the June 2016 quarter was the highest quarterly result since the 2004 September quarter. In short, this translates to a great, three-month period for New Zealand manufacturing.

The third area of interest involves results post the high of the June 2017 quarter. The second half of 2016 saw a slowdown in expansion, to the point where the December quarter was on par with the June 2015 quarter. Thankfully, 2017 has started off on a better footing, with the March quarter picking up to 55.6 to arrest the slide in expansion.

Looking ahead, a natural question to ask is whether 2017 will live up to recent standards, averaging out to an expansion level of 56-plus.

It might, if the fundamentals of consistent economic growth – both domestically and internationally – still hold. At least the first quarter is off to a promising start.

Stephen Summers is an economist at BusinessNZ, which is mostly owned by EMA. Email ssummers@businessnz.org.nz.

Visit www.businessnz.org.nz for more information on the PMI. 10

BusinessPlus May 2017

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Seen @ EMA events in Auckland

Bernie Fortes [Watercare]

Monique Furniss [Watercare]

Amy Wood [BEP Marine]

Andre Stuart [Watercare]

Catherine Spence [Hospice West Auckland]

Azalia Ho [Cater Holt Harvey]

Colin Butler [TCL Hunt]

Bathsheba Tofilau [Homai School]

Ashley Wallace [Southern Cross Healthcare]

David Welsh [Iplex Pipelines NZ and EMA Board] and Professor Shaun Hendy [University of Auckland]

Stephen Summers [BusinessNZ]

Mike Moore [Ross Roadmarkers]

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BusinessPlus May 2017

EMPLOYMENT

By Bernadette Emerson

Getting employment law all sorted The unpredictability of election year is set to light up the remainder of 2017 and employment law is one area likely to experience a shake-up.

An increase in union activity is on the cards, with pay equity, the living wage and job security affecting their members.

•

Penalties, remedies and exit terms – entitlements, compliance and putting your best foot forward;

At our annual Employment Relations Conference in Auckland next month you will hear directly from Andrew Little, the Labour Party Leader and Leader of the Opposition, about hot topics on the employment relations landscape of the 2020s.

Also, now more than ever, employers can no longer ignore cyber-bullying – from issues such as workplace dynamics to mental health to misconduct. Freedom of speech as an excuse can only carry you so far.

•

Dismissing fairly when dealing with injury, illness or incapacity: what to do and what to avoid;

•

Redeployment and alternative options – determining if similar, substantially different or if no options exist;

•

Termination – the tough clauses: garden leave, suspension, payment in lieu of notice and all the restraints.

Paul MacKay from BusinessNZ will talk through pay equity, discrimination and potential bias and you’ll be the first to hear how to best navigate the new rules.

Pay equity legislation is due to be unveiled within weeks. Now is the time to focus or realign your policies and practices to minimise the fall-out, from potential human rights grievance claims to losing high performers.

You will also hear from Anne-Marie McInally on how the Etū trade union sees the priorities of the New Zealand workforce and what the next 10 years of union activity may look like.

Join us at this one-and-a-half day conference to explore these and more big issues in employment law including: •

Balancing minimum wage, living wage and unconscious bias with pay equity – knowing which issue is which;

•

Essential components for effective and enforceable workplace drug and alcohol policies;

•

Dealing with the curly issues in collectives: coverage, communications and the bargaining process agreement;

Whether you lead a business employing more than 500 or fewer than 20, recent updates in employment law mean your obligations and responsibilities have taken a more serious tone. The conference will talk you through best practice in line with good faith, to ensure you aren’t caught short with outdated policies.

Bernadette Emerson is EMA’s portfolio manager – human resources and employment relations.

Email Bernadette.emerson@ema.co.nz

BusinessPlus May 2017

13

EMPLOYMENT

By Ben Ridler

The importance of career paths that lead nowhere You’ve probably heard the cliche that goes, “People get promoted to their highest level of incompetence.”

We say it as a joke when we meet a manager who doesn’t know what they’re doing. But people really do get promoted into positions they shouldn’t have, and believe it or not, it’s almost always because of the executive’s best intentions. You can solve this problem, or prevent it, with one tweak.

To give that to you, here’s a classic story about a trucking company in North America back in the 1970s.

Their drivers had two metrics. The first was on-time delivery. This was a long-haul trucking company, and a lot of these trucks met ships at port or they carried fresh food, and so being on time was a huge benefit.

The second metric was for safety. I’m sure a lot of readers would prefer for them to put that one first, but it was second.

It was a good company. They rewarded their drivers when they hit their targets. That’s where things started to go wrong. There was one driver who drove an insane number of miles – to the moon and back, I think they said – and never had a single accident. Extraordinary by any measure, and the company was grateful.

As you can imagine today, this was a catastrophe for everyone involved.

First of all, the driver loved driving.

Just looking at his metrics, he was clearly born to drive. And he didn’t want a desk job. He didn’t ask for it, even after years of service. But since the executives promoted him into it, he felt obligated to take it.

You see the problem. Management wanted to show him respect.

They wanted to express gratitude.

They wanted to reward him. But this promotion didn’t work for anyone. Sadly, the driver was too embarrassed to be “demoted” back to driving, so he ended up retiring early. The executives could have gotten several more years of perfect performance, but instead they lost him altogether.

Fast forward to the software companies near our San Francisco office. They’ve clearly learned this lesson. And they’ve solved the problem the 1970s executives didn’t.

Poor execution Here are three things the trucking executives missed: •

Best intentions So a bunch of executives in the office decided to promote this driver. He would oversee training, and he would have a nice, comfortable desk job so he wouldn’t have to drive his truck anymore.

Ben Ridler is founder and CEO of RESULTS.com 14

BusinessPlus May 2017

First, the driver never asked for a desk job. This is huge. The correct career path for any employee is the one they ask for.

If someone tells you “I want to do x,” then put them on a path to do x. If they drive to the moon and back with a smile on their face and no advancement requests, then smile with them. Either way, they’re completely bought-in, which is really what you want.

•

Second, the executives failed to come up with a win-win from the driver’s point of view. They thought only about themselves: “Imagine if this guy was a trainer!

He could clone himself! We’d make even more money!” But the exact opposite happened.

•

Third, the executives assumed that the only way this driver could become more valuable was to become an executive. That’s pure ego and has nothing to do with engaging a team or building a company.

Modern management I’m certain that the main thing that stopped the trucking executives from getting it right was money. They wanted to pay the driver what he was worth. But in order to do that, they believed, they had to promote him into the office.

Software companies don’t believe that. Brilliant programmers can earn as much as they’re worth.

And here’s the real insight: programmers routinely earn more than their managers do. In fact, a manager’s direct report might have a significantly higher income than they do. It’s not a problem. Corporate cultures don’t collapse. In fact, they thrive.

That’s the importance of career paths that lead nowhere. If someone wants to dig in and become excellent at something, let them know that their career – and their income – can continue to advance, even if their title does not.

employment

By David Shannon

Fringe benefit tax: are the benefits really “fringe”?

The Fringe Benefit Tax (FBT) has been a feature of New Zealand business for 32 years so perhaps it is time to consider what impact it has had.

In the early 1980s the recruitment of senior executives heated up, with remuneration offerings becoming increasingly large and complex. Aided and encouraged by recruitment consultants, employers offered more and more complex “remuneration packages”, which included a variety of components beyond the historical “base pay.”

Additional “benefits” such as professional and club memberships, health and wellbeing provisions, travel and entertainment costs, superannuation and insurances, telecommunications, education subsidies and vehicles became common in the remuneration package. These benefits could add considerably to the “total value” of the executive’s remuneration.

It was inevitable that Treasury would note the considerable value of these added benefits, which was not taxed like base pay and therefore created a considerable “tax free” advantage to these executives.

To address this discrepancy, government introduced the Fringe Benefit Tax in 1985.

Setting the FBT at 48 per cent was intended to make the cost of providing such benefits equal to an equivalent increase in the employee’s total salary, thereby eliminating any financial advantage in providing such benefits. The unspoken aim was to discourage the provision of these benefits, which were not considered essential to doing business.

So, has the introduction of an

additional 48 per cent tax eliminated the many so-called “fringe” benefits that drew the attention of Treasury and the lawmakers in the mid-1980s?

After all, if these benefits were taxed at the same rate as base pay, what would be the advantage in providing them?

FBT made no difference to benefits provision Well, actually, no, FBT hasn’t eliminated benefit-giving. FBT has simply been accepted by New Zealand employers as another part of doing business.

It has been suggested that the intent of FBT was not to “eliminate” these “extra benefits,” but merely to ensure that all payments and provisions not related directly to the company’s business were taxed equally within the executive’s income.

Despite being loaded with the label “fringe,” not every additional benefit provided to an employee is seen as being “fringe” to the business.

The ongoing intense competition for top talent in the executive labour market has ensured the continuing provision of such benefits and has simply added to the cost of doing business. Executives still expect to be provided with cars, insurance, memberships and other benefits paid for by the employer.

At the same time, it has become another money-spinner for the government.

But even FBT legislation has continued to recognise some benefits such as superannuation contributions, pension payments, retirement allowances and long service leave provisions as

“essential” rather than “fringe” and therefore as exempt.

In the end, there has been little change in executive compensation practices. In some instances, benefits which could be truly found to be “fringe” such as clothing allowances and non-business meals have been eliminated. However, the wide range of benefits has, for the most part, remained.

Company cars, which were the benefits attracting the largest FBT, have been cut back to some degree, aside from being provided for roles in sales, accounts and business development where the car is an essential “tool of the trade.” The requirement that a log be kept to record “business” vs “private” mileage has also played a part in reducing the frequency of offering company cars.

The main impact of FBT in terms of executive remuneration has been calculating the components of the “Total Cost of Employment.” On top of the universal “base salary,” adding the value of any benefits provided leads to a figure of “Total Compensation”, which now provides a more accurate means of comparing the pay packages of executives across different organisations.

In summary, the FBT has led employers to examine the benefits they provide, to decide which ones are truly “fringe” to their business and which can still be considered an “essential cost of doing business.”

Despite being labelled as “fringe,” these benefits will continue to add to business cost and must be considered when employing executives.

David Shannon is EMA’s remuneration consultant. Email him at advice@ema.co.nz BusinessPlus May 2017

15

EMPLOYMENT

Help! Claims of bullying, humiliation and unfair treatment Q. My staff have a lot of crude banter but now I have one of them complaining it’s going too far and they are on the receiving end of personal bullying attacks. I haven’t seen evidence of that but am worried about what I read happening in the courts on these issues. What should I do? – Ned Dear Ned It’s time to intervene. Waste no time investigating thoroughly and without bias what’s going on among your staff.

If someone says they feel bullied, it’s not for anyone else to decide the truth of that. In good faith take that comment seriously! Big fines have been dished out by the Employment Relations Authority in favour of aggrieved employees not treated with fair or due process.

Even if crude banter is normal and acceptable and the person feeling bullied takes part in that, they can still feel bullied.

The typical process is to meet the aggrieved employee to ask them what’s happening, recording on paper (not on audio or video!) their

BEST E H EST T YOU WE T .. . FOR

concerns and the meeting details.

You explain to them that you have to interview the person/people she is complaining about and any witnesses they suggest you speak to. After talking privately to each of these people, you must decide what needs doing, and do it – reporting back to the bullied employee and discussing potential outcomes with them.

If the bullied person and the bully are going to stay on your team, you might need to review the situation on an ongoing basis, or it could turn into a disciplinary process.

Also check your employment policies and agreements, and staff’s awareness of them especially in relation to what constitutes misconduct and serious misconduct.

If this sounds horrendously stressful to deal with, remember the bullied person possibly feels worse than you and that their livelihood might be at stake. Seek help from EMA’s employment relations consultants and in the event of a court wrangle evolving, from our EMA Legal team of solicitors – all at membership charge rates.

Q. I have a direct report who is insolent and says I am humiliating them in public – but I’m just correcting her mistakes. We have an open plan office.

What am I supposed to do every time I need to say something to her? – Sally Dear Sally If someone feels humiliated they could claim harassment, or even that you are attempting to push them out by making them feel so bad they have no choice but to resign – which amounts to a claim of constructive dismissal. You don’t want to be facing those charges.

Always take such complaints seriously and respond in good faith.

Investigate the complaint in private but if you feel unable to investigate fairly, or the aggrieved employee wants to speak to someone else, ask another manager to talk to them.

Furthermore, it is not a good idea to point out someone’s faults in public – if you want to address performance concerns, you must have options such as email or meeting spaces where you can do that more discreetly.

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16

BusinessPlus May 2017

• Discipline & Termination • Diversity • Health & Safety • Employees & Technology • Payroll Essentials • Leave Entitlements

• Drug Testing • Harassment & Bullying • ACC • Unions • Recruitment • Privacy

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EMPLOYMENT

Q. A staff member says he shouldn’t have to pay for parking although his agreement spells it out. He also thinks it’s OK to park in disabled parking spaces. After some months of this and warnings, we dismissed him. Now he’s taking a personal grievance claim!

Help. - Marcus

Make sure the former employee’s employment agreement stated clearly what the parking rules were.

It is in your favour if he continually breached a signed agreement which included, for example, “company rules for employees” that included a definition of serious misconduct being a failure to obey a lawful and reasonable instruction, such as staff using the company car park must pay $X per day and never use spaces for people/customers with disabilities (unless he had one himself).

Dear Marcus Perhaps you didn’t follow due process…or make clear what the outcomes of your disciplinary (warning) process would be.

Also review your notes of discussions with him and be sure you can prove you undertook a full and fair process of fact-gathering and provided him with clear warnings.

Such seemingly simple employment relations have caught employers out before and even when the employee has ‘contributed to the outcome’, employers can be fined way more than the staff member who seems to have genuinely done wrong.

Also be sure you gave him an opportunity to correct his behaviour rather than just punishing (threatening) him, especially if that aim is explicit in his employment agreement.

You would be judged to be in the wrong if you jumped to conclusions and didn’t treat the employee with respect and the matter in good faith.

You might need one of our lawyers – available at member rates - to verify this with you and represent you in any mediation, or at the Employment Relations Authority.

In employment, you do have to give people the benefit of the doubt till an investigation provides evidence that proves the point either way. So you must also investigate with an open mind.

In a similar recent case the Authority held that it was unfair to rely on upon the previous disciplinary action to justify dismissal. The Authority also considered the approach to “fact finding was not with an open mind”

If the employee is making heaps of mistakes and is unable to fulfil their role adequately, this could require you to instigate a formal performance review. Discreetly.

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and that the process leading to dismissal was unfair to the employee and that he had been unjustifiably dismissed.

The Authority awarded the former employee three weeks remuneration for lost salary and a further $8,000 for hurt and humiliation compensation.

These remedies were reduced by 25 per cent for contributory conduct.

• By the EMA communications team in consultation with EMA Advice, and loosely based on real calls to EMA’s AdviceLine. All names are fictional.

The information in this article is a guide only and not to be used as business advice without further consultation.

EMA members can start with our free AdviceLine team at phone 09-367 0909 or 0800 300 362 (within New Zealand), and 1800 300 362 (from Australia), 8am-8pm weekdays NZ time; or email advice@ema.co.nz You can also find information at www.ema.co.nz such as the A-Z of Employing – a manager’s guide on more than 100 specific employment topics, or the detailed Employer Guides on 12 popular topics.

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BusinessPlus May 2017

17

employment

By Clive Thomson

When the union comes calling Trade unions are not as prevalent as they once were, so it can come as a surprise when they come knocking on your door.

Overall, union members are around 15 per cent of the total employed labour force.

Currently only 10 per cent of private sector employees are covered

by Collective Agreements, which represent approximately 140,000 employees. In the public sector, close to 60 per cent of the workforce is covered by Collective Agreements, with this representing approximately 187,000 employees.

A Collective Agreement is an agreement between an employer and a union. Employees can only be covered by a Collective Agreement if they are a member of that relevant union. There are currently 121 registered unions in New Zealand.

The Act that provides the legal framework for the employment relationship is the Employment Relations Act 2000. It provides unions with wide-ranging rights to enter your workplace even if none of your employees are union members. The Act is clear that unions are entitled to enter your workplace for the purpose of recruiting your employees as union members.

Conditions of entry However, there are some provisos on their entering your site. A union representative may only enter your workplace at reasonable times, in a reasonable way (having regard to your normal business operations) and must comply with any health and safety and/or security requirements.

Prior to entering your workplace, however, a union representative must obtain your consent. You are not able to unreasonably withhold that consent. If you receive a written request (which you can require) by a

As with most things in business, it is often the quality of relationships that determine our success or failure. When it comes to dealing with unions, it is no different. union to enter your workplace, you only have until the following day to either say “yes” or “no”. If you say “no” you have to provide the reasons in writing no later than the following day after that.

Typically, however, you may find that a union representative is just passing your premises and decides to call in. If this happens we would usually advise you to take a constructive and relaxed approach to their visit.

As with most things in business, it is often the quality of relationships that determine our success or failure. When it comes to dealing with unions, it is no different. Taking a combative or aggressive approach will usually be counterproductive.

Employers who have made every effort to prevent a union representative from having access to their employees have often found themselves on the wrong side of an

Employment Relations Authority decision. As with other aspects of employment law, the Authority has the power to impose a penalty on an employer who unlawfully obstructs a representative of a union from entering a workplace.

Collective formation requires notice If a union manages to sign-up a number of your employees, it is likely that they will then initiate bargaining for a Collective Agreement. This would come as a formal notice under the Employment Relations Act 2000 and set in train a series of other requirements. If you receive an Initiation Notice, it is time to give us a call, if you haven’t already.

Most employers receiving an Initiation Notice for the first time will have a preference to not have a Collective Agreement. However, it is a breach of good faith to refuse to enter into a Collective Agreement just because you are opposed in principle to the concept.

However, you don’t necessarily have to agree to what is being asked for.

But a Collective Agreement is not necessarily a negative for your business: there are many businesses, both small and large, that continue to successfully run their operations with constructive union involvement.

Clive Thomson is an EMA employment relations consultant. Email clive.thomson@ema.co.nz 18

BusinessPlus May 2017

Any decision to terminate must be based on a business need to replace the employee due to operational difficulties as a result of the person’s absence.

employment

By Hana Schofield

Responding when an employee is too sick or injured to work Typically, an employee’s medical incapacity relates to either intermittent absences due to a single medical condition or an on-going illness or injury where the person has had, for example, surgery for a medical condition that has a substantial recovery period.

It can be difficult for employers to know how best to manage situations involving medically incapacitated employees, such as at what point they can start to investigate the matter and, indeed, in what circumstances they could terminate the employment relationship.

Procedural fairness In terms of an investigation, employers are required to act fairly and reasonably and treat the incapacitated employee as they would any other.

An investigation into an incapacitated employee’s medical prognosis is not a disciplinary process. Simply put, employees are not at fault for being sick and should not be punished for it. Employers should be aware that doing so could give rise to a discrimination claim under the Human Rights Act 1993, which prohibits discrimination against employees due to disability.

Employers must be procedurally fair and: • openly communicate with the employee; • give the employee a reasonable amount of time to recover; • seek current and specialist medical opinion; • obtain an indication of the employee’s intentions, consult; • weigh up all considerations so that if the employer decides to

dismiss, this is based on a full and fair inquiry and is what a fair and reasonable employer could have decided in all the circumstances (as required under the Employment Relations Act 2000).

Any decision to terminate must be both substantially and procedurally justified.

Employer’s obligations and rights Alongside the obligation of the employer to be fair to an employee, the factors to be considered while balancing considerations of the overall impact on the employer’s business operations include: 1. The terms of the employment agreement; 2. How long the employment was likely to last in the absence of an illness; 3. The nature of the employment – is the employee in a key position?; 4. The nature of the illness or injury and prospect of recovery, including timeframes; 5. Length of time the employee was absent from work before termination; 6. Impact of the sickness or injury on their ability to perform the role; 7. Practicability of temporary cover (please note you do not have to create another job for the employee); 8. The likely length of absence or finite date of return; and 9. The economic impact on the operations of the business.

There is no definitive guideline as to how long an employer should wait

before terminating an employee’s employment, and the employee should be given a reasonable opportunity to return to work before the employer considers termination.

If an employee gives a future date on which they are likely to be fit to return to work, an employer is generally expected to accommodate the absence. For example, the employer may consider obtaining temporary or fixed term staff to cover the absence, if feasible.

It is essential that the employer obtains all relevant medical evidence before making a decision. This information should come from a medical professional, ie, the employee’s general practitioner or specialist.

The employer will need to obtain consent from the employee for the medical information to be released to them. Once all the medical evidence is obtained, employers must make a fair decision on the basis of that information and, importantly, give the employee an opportunity to respond.

If the employee refuses to give consent for release of the information, then the employer is entitled to act on the basis of their own knowledge and assumptions.

Any decision to terminate must be based on a business need to replace the employee due to operational difficulties as a result of the person’s absence. If a decision to terminate is made, the reason for the termination should be the employee’s inability (not incapacity) to fulfil the requirements of their role. The notice provision in the employment agreement should be complied with in relation to the dismissal.

Hana Schofield is EMA’s intermediate solicitor. Email hana.schofield@ema.co.nz BusinessPlus May 2017

19

EMPLOYMENT

It was an accident.

Yeah, right The term “accident” is often abused and soundly over-used in relation to life in general. We hear it everywhere, including on TV, in articles and blogs.

Accidents happen in transport, workplaces and even hospitals, right down to the home and recreational pursuits.

“It was just an accident,” we hear all the time.

It is useful to understand these various definitions of “accident”: 1. an unfortunate incident that happens unexpectedly and unintentionally, typically resulting in damage or injury; 2. an event that happens by chance or that is without apparent or deliberate cause; 3. an unforeseen and unplanned event or circumstance; 4. a lack of intention or necessity; 5. Also known as an “unintentional injury”, an accident is an undesirable, incidental and unplanned event that could have been prevented had circumstances leading up to the accident been recognized, and acted upon, prior to its occurrence.

Most scientists who study unintentional injury avoid using the term “accident” and focus on factors that increase risk of severe injury, and factors that reduce injury incidence and severity.

Common themes in the definitions include unplanned, without apparent cause, unforeseen, unexpected.

My proposition is that in the vast majority of “accidents” there was prior knowledge; the events were foreseeable and the causes were predictable; therefore, they were not, nor could be, accidents.

Real accidents rarely occur.

My proposition is that in the vast majority of “accidents” there was prior knowledge; the events were foreseeable and the causes were predictable; therefore, they were not, nor could be, accidents.

Take any typical workplace event recorded as an accident: Work is being conducted, something happens, a worker is injured, first aid is applied, hospital may be necessary, the worker returns to work, an accident report is generated, an accident investigation is conducted, nothing changes - because the event was an accident. But was it?

In my experience, very few accidents are in fact first time, one-off events that have no prior warnings or indications that something will fail.

Indeed, under health and safety law we are required to anticipate failures and then mitigate the chance of the failure, or at least the degree of (potential) harm.

Justifying outcomes The concept of accident has evolved to explain and condone both the injury event and the outcomes. The word accident is used far too loosely and, I believe, without observing and acting upon the warning signs.

Within workplaces, near-miss events occur regularly. Despite the requirement to report these, they often fall under the radar, perceived as another form-filling exercise to appease some policy written by someone for ideological reasons.

All these near-misses or incidents are sequences of indicators that, if observed and analysed when they occurred, could well be used to stop the top event occurring.

Staff have all this information and work in this arena daily. They experience the close calls, the “phew” moments. After a while, staff stop considering these little events as precursors to more serious events, and resign themselves to thinking, “this is what the job/task is.”

I regard these near-miss events in a similar manner to quality defects. In the case of the latter, the business puts in place a recording/measuring processes to capture and mange defects in quality. This is done at source and in a very timely and prompt manner.

Why is this approach to product/ service quality different from the attitude to near-miss events, or quality, in and around safety? How is this different around worker health?

When staff are off sick from exposure to dust or fumes, for example, it is foreseeable that they might end up with a lung condition.

Investigations often identify the cause of injury, but not the accident cause(s). I use the plural here, as there are often numerous interconnected factors. Car skids off road and hits a fence. A fence paling breaks off, smashes through the windscreen and enters the driver’s chest. Cause of injury: fence paling.

But what was the cause of the car skidding?

From years of conducting workplace investigations I am never surprised to hear comments such as, “That always happens”, “We told Smithy last week about that” or “This happened last month.”

If these comments are true, which they generally are, how could an associated injury or near-miss be an accident? It was certainly predictable. I will let you decide what to call it.

Paul Jarvie is EMA’s manager of employment relations and safety. Email paul.jarvie@ema.co.nz 20

BusinessPlus April 2017

Taking charge of one’s own health and safety In reality, a lot of people do not believe a focus on health and safety measures in the workplace are particularly important. Some say compliance takes time away from doing their job, others say it’s a hassle or it’s not their responsibility.

Or, “She’ll be right.”

We also know that people don’t always do what they are told; they do what they believe, value and know to be right or good (most of the time).

Yet the new Health and Safety at Work Act includes responsibilities of “the worker” to participate proactively in matters related to health and safety at work.

Organisations are also required to engage their workers and to actively encourage participation.

So how do organisations change this mind-set and therefore behaviour that is complacent, indifferent, risky… or worse?

Our team of experienced trainers considered why such behaviour occurred and how we could help members change the mind-sets of their people to think, believe and behave differently.

As a result, we have developed a three-hour workshop called “Be Safe Be Well” - an engagement tool to help businesses and other organisations engage all their people and involve them in greater participation in health and safety at work.

We know that you can send people to training and tell them what is required to be as safe as practical at work, but time and time again you don’t see a change in their behaviour or improvement in health and safety practices.

So we ensured Be Safe Be Well delivered powerful messages throughout the interactive workshop.

employment By vanessa green

It teaches your people why injury and harm happen to people at work, and how important it is for everyone to be proactive in looking after themselves and each other.

Be Well Be Safe is not like other health and safety training that focuses on policies, procedures, obvious hazards and risks; instead, it teaches people more about themselves, why they might make unsafe decisions, and why they sometimes don’t notice things that are right in front of them.

It is designed to help people perceive their workplace with fresh eyes; to recognise new hazards and take ownership for sorting them out.

Afterwards people will know how to make a positive difference to the health and safety of themselves, their workmates, family and friends.

Vanessa Green is EMA Tailored Training’s people capability consultant. Email vanessa.green@ema.co.nz

Be Safe.

Be Well.

Everyone deserves to go home safe and well every day.

The Be Safe Be Well 3 hour programme is an engagement tool to help you ‘engage’ your people and achieve greater participation in Health & Safety at work from everyone.

Be Safe Be Well delivers powerful messages throughout the interactive workshop to teach your people why accidents, injury and harm happen to people at work, how important it is for everyone to be proactive and how it is everyone’s responsibility to look after ourselves and each other at work.

Benefits for your organisation and your people: • They will see their workplace with fresh eyes, see new hazards and take ownership for sorting them out.

• Know that Be Safe and Be Well is a shared responsibility as everyone deserves to go home safe & well every day!

• Change their attitude and behaviours to make a positive difference to the Health and Safety of themselves and workmates.

Tailored H&S Training

What people have said they will do as a result of this workshop?

"I would help my workmates to be safe and let them know if I think what they are doing is a risk!"

"Take time to notice more things - See it Own It Act on It." "Approach someone who is being unsafe e.g. speeding, no safety boots etc.

Do the Right Thing."

For more information contact Vanessa Green 021-640-462 | vanessa.green@ema.co.nz.

BusinessPlus May 2017

21

employment

By Robert Bruce and Ella Monahan

Lisa Miles-Heal of Unleashed Software (left) with AUT graduate, Thea Oestby

Take an intern, mitigate the talent shortage Build your talent pipeline to overcome the skills shortage, by placing an intern in your business.

That’s the message from New Zealand’s second largest university, Auckland University of Technology (AUT) in response to findings from EMA’s Employers Survey at the end of last year, which highlighted that many organisations had difficulty finding candidates.

Whilst 68 per cent of businesses were expecting their businesses to grow over the next six months, 72 per cent found it “difficult to recruit staff in skilled positions”.

The Survey indicated that university students and graduates were an untapped resource for many employers: only 46 per cent of respondents said they had links to the tertiary sector.

Bridging the gap between talented graduates and organisations is something AUT can help with, through AUT Internz, a bespoke service that matches graduates with relevant employers.

Hosting a student or graduate intern can offer an employer unique new perspectives and ideas to tackle business problems.

But we recognise that a historical challenge for some employers has been how and where to access students, and a perception that hosting a graduate could be hard work and resource-intensive. That’s where AUT Internz can help.

Developed as a gateway for employers to access interns, the

initiative helps to match employers with fresh-thinking students and graduates through a user-friendly website, www. internz.aut.ac.nz Employers who are willing to invest a little time hosting and training interns often find the returns to be excellent, she says.

Two companies that successfully tapped into AUT’s student talent pool are Jucy Rentals and Unleashed Software.

Jucy needed to address a specific skills gap in their social media team.

Jucy’s public relations and social media executive, Alisha Palin, says, “We were looking for a way to improve our video strategy and we realised we needed an intern with all those skills.

“At the same time we wanted an intern to get something out of the experience too, by building up their portfolio and their skills and experience working in a professional environment.”

As well as addressing specific skills gaps or immediate project needs, having an intern can bring other benefits to employers, says Lisa Miles-Heal, chief financial officer of Unleashed Software.

She says, “Internships really are a twoway street because they benefit both parties equally. We always try to take on one graduate a year. They bring a great energy to the space and their insight adds real value to the business.

“You need people in your organisation that are interested in coaching and developing. People who understand that it is also about giving something back and investing in the future. If you

Alisha Palin of Jucy Rentals (left)with AUT student, Taylor Mansfield

have that, then your organisation will benefit hugely.”

Since AUT Internz launched in 2013, it has matched hundreds of businesses with graduates, including many EMA members.

By hosting one of AUT’s outstanding graduates, you can diversify your talent pipeline and help develop New Zealand’s next generation of business leaders.

Fast facts: AUT Internz • More than 2,000 students are registered, seeking internships.

• Employers from all industries to list as many internships as they wish, for free.

• Internships tend to be of a ‘fixed term’ such as three months.

• Internships need to be paid (minimum wage+) except for registered not-for-profit organisations that may list voluntary roles.

• To get started all employers need to do is register on the AUT Internz website “where business meets young talent”.

• Once registered employers can: o Search the database of students and shoulder-tap them for roles, o Alternatively, advertise a role via the public internships board and oncampus channels.

Robert Bruce is director of Special Initiatives, Corporate Governance and Development Group at AUT and Ella Monahan is director of AUT Internz. Email Robert.bruce@aut.ac.nz and ella.monahan@aut.ac.nz, visit www.internz.aut.ac.nz 22

BusinessPlus May 2017

in business By david spratt

The Internet of Things is transforming production management Part 3 in our series of four articles on how companies can use the Internet of Things to be more efficient, cut wastage and to compete locally and globally.

In this article I get down to the nitty gritty of manufacturing production management and how measuring energy flows and consumption can inform critical decisions.

I could make this subject complicated, but if we really get down to the basics, there are just three main categories that require constant attention in a production environment: people, processes and technology.

People like feedback In the context of production management one of the most important variables is the performance of individual staff members. How someone uses equipment, works within a team and learns to adapt to new systems can make the difference between a highly profitable unit and one that is not.

The factors that drive people’s decisions and actions will often come down to feedback loops. By using the IoT to deliver energy monitoring information we can give people useful data about what is happening on their production line.

For example, if we can demonstrate that the team’s correct use of energy efficiency tools delivers a better product, this not only reinforces their behaviour, but it also opens up the opportunity for them to take this information and find even better ways to improve efficiency.

How we use technology can be directly connected to the energy a unit or group of units consumes. If a lathe is running at full tilt throughout an eight-hour shift, does that necessarily mean that unit is being properly used? Or is the operator just running it on full because that is what he was told to do when he first started years ago?

People make decisions at work every day. How you create feedback loops will inform those decisions more effectively and result in improved performance, job satisfaction and company results.

Processes Every experienced production manager can tell you that each team on a production line is quite distinct and that their results vary considerably. The bigger question is: “What causes this?”

By monitoring the flow of individual products and components through a production line, we can identify bottlenecks, part shortages and defects, quickly and effectively.

With the IoT the manager can break down a process into its smallest components and create various quality checkpoints along the way.

He can eventually ensure near100 per cent accuracy, complete adherence to standards and instant identification of faults and tolerance variances.

Many would suggest that this is already the case at many well-run sites. But what happens offsite with the parts we order and the products we ship?

The key to the IoT is that our production process begins at the point where a component is ordered, right through the creation of unique SKUs or products and all the way to the end user’s home, office or factory. This process exists because we can now potentially track billions of components throughout the supply chain at a cost much lower than we ever thought possible.

Technology Remember the Internet of Things is not just adding an RFID [electronic] tag to a unit and tracking it. It is about potentially billions of components that communicate.

This can be communicating back to a central point, with multiple other components, with the warehouse, the truck and of course with the end user.

By integrating IoT components into the technologies we use in making things, we can establish how one production line consumes energy at a fairly constant rate while another’s consumption appears to ebb and flow throughout the day.

In this instance we might have identified human errors, a malfunctioning device or quality issues with the parts or components being used on this line.

For the first time in our history we can easily measure our technology’s performance down to the tiniest detail. We are no longer limited by the number, location or stage of development of any component.

The Internet of Things opens a world of opportunities for us to deliver better quality at a lower cost and more reliably than ever before.

David Spratt is a director of Total Utilities Management Group. Email your ideas or opinions to david@tumg.co.nz BusinessPlus May 2017

23

in business

Cool tech keeping track of smart fridges Global food and beverage companies keep track of the contents and whereabouts of their fridges, through cool tech developed by Wellington Drive Technologies.

The chief technical officer and head of engineering, David Howell, explains how this 30-year-old electronics company has evolved to focus on connectivity solutions for commercial refrigeration; solving problems for customers globally through Cloud technology.

He says, “About five years ago a strategic review showed that developing solutions for commercial refrigeration was our best business model. So we exited our other ventilation motors business and just focused on the refrigeration market.

“Electronics systems within commercial refrigeration was the obvious place to go, but we didn’t want to do a ‘me too’ product. So, we started talking to customers about what they needed and couldn’t get from existing offers.

“The issue of asset tracking kept coming up, due to fridges going missing. Prior to our tracking technology, companies didn’t find out equipment was missing until the end-of-year audit time. They might find they had 10,000 fewer fridges than they had a year ago, but by that stage they’d been gone nine months, so there was no chance of finding them.

“So we spent a lot of time trying to figure out a smart, affordable and easy-to-use solution.

“With help from Callaghan Innovation’s research and technical services team, we invented a way of getting data out of a fridge and into the Cloud using a Bluetooth connection, rather than a conventional cellular connection.”

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This new refrigeration control system with its smart connectivity that automatically updates to a Cloud database, offers customers a variety of asset management solutions.

These range from equipment productivity improvement and minimising their cost of service, through to the common problem of asset tracking.

“Fridges going missing is a major issue that our product can address.

Globally these companies lose anything from 1- 20 per cent of their fridges in any given year,” says David.

Talking fridge But the tech can go beyond tracking – pre-empting failures and allowing customers to do smart maintenance, seeing which equipment is more or less productive so they can move products around stores to maximise sales.

If a fridge does fail, Wellington Drive’s tech can tell the customer the model of fridge, its location and the specific problem. This means that a service person knows exactly where they’re going, what the fault is, and can take the relevant spare part.

It all adds up to time and cost savings for customers, which include global food and beverage brands and the commercial refrigeration manufacturers who sell on to those brands.

SCS Connect with diagnostics app

retailer or the product brand to deliver promotional material, sales campaigns and develop their brand with the consumer.

These smart fridges, powered by Wellington Drive’s tech, are doing so well they are changing the company structure.

Says David, “We’re probably still 80 per cent motor manufacturing right now, but in another three or so years our manufacturing split will probably be half motors and half connected controls and telemetry, as we have a best-in-class product.”

The tech also adds value to customers’ sales and distribution functions. For example, when a representative from a branded food or beverage product arrives at a retail outlet – such as a truck driver to deliver product or sales person to take orders – as soon as they come within 5m of the fridge, the system transfers sales or equipment data to an app on their phone.

That’s a lot of fridges worldwide – so the potential is significant. The company grew 40 per cent last year and 30 per cent the year before.

The fridge also communicates with the consumer, allowing the

Visit www.callaghaninnovation. govt.nz

David says Wellington Drive is hopeful it can keep growing at that rate this year, as it establishes new motor product lines alongside growing the connectivity product line.

in business

By Rosina Webb

What’s the hype with blogs in business?

In the world of digital marketing, every brand, business and celebrity seems to be blogging – so what’s all the hype about? What makes a good blog and how does blogging work well for your brand or business?

I’ll explore these questions and give you a few handy hints to work with.

In a business setting, a blog is essentially another piece of advertising material; sharing information, thoughts and insights about your products or services, but written in an informal, conversational style within an article format. It is best written in the first person (I, me) to be natural and real – authenticity is crucial with any marketing.

Blogs are posted regularly within an online medium such as a brand’s or company’s website or online forum.

Handy hints Engaging content First of all, good blogging is all about the right content – engaging, interesting and relevant to your target audience (your potential and current clients or customers). Know who they are, and what they like and want. Then talk about it in a blog.

Successful blogs will increase your digital reach; engage more of your desired target customers; increase in-bound traffic to your website and ultimately increase your sales leads.

Avoid rambling, and have a call to action A good blog shouldn’t be too short but at the same time try not to achieve too much. It’s easy for passionate people to communicate too many messages in one hit and, dare we say it, ramble on. In any advertising or marketing material it’s important to be clear and concise with your message, regardless of the delivery method. Say what you want to communicate, simply, and then stop.

A good rule of thumb is each blog should try to get your audience to do just two things: 1) To think about one thing in a new way, and 2) to encourage them to do something new, ie, one “think” and one “do”.

The “do” is the call to action, eg, click here to hear more about x, or to receive an exclusive discount by signing up here. Don’t necessarily leave it to the end to ask for action.

Be relevant Write in the first person but don’t write your blog from your viewpoint – think about your target audience and what they want or need, and write with these in mind. Be relevant and meaningful to your target audience.

Don’t write content for content’s sake and keep to your industry topic.

Your target audience doesn’t really care about your latest family holiday as a business owner, unless of course your business blog is within the travel industry.

Break it up Big blocks of text are hard to read and digest quickly on screen, or anywhere, unless you’re reading a novel, so break it up with paragraphs, pictures, headings, numbers or bullet points. Just like we have done here.

Post regularly Posting once a month or bi-monthly won’t cut it – if you want to keep engaging with your target customer base you need to keep the insights coming. If you are too busy working in your business, to work on your business, then external marketing assistance is easily on hand to help do this for you. It is cost-effective, fast and the results will speak for themselves.

Finally, good blogs generate good content The beauty about a regularly posted, well-written and engaging blog is that once written, you have created a wealth of content you can share across multiple digital platforms to further reach out to your target audience. There is no need to recreate the wheel and generate new content for each digital platform (eg, blog, Linkedin, Facebook and Twitter) but each medium does need that content framed up slightly differently.

If, as a business owner, writing regular blogs and entering the world of digital marketing feels too hard, a good marketing consultant that is briefed on your brand, product or service will easily be able to take your insights and your “voice” to write and post your blogs for you, within a comprehensive Digital Marketing Action Plan.

Rosina Webb is founder and managing director of Energise and Associates. Visit www.energise.net.nz BusinessPlus May 2017

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in business

By Victoria Wilkes

Should you stay or go? Office refurbishment in focus As the new financial year looms for many businesses, this is often a time of anticipation and revaluation for them. Among the new projects, planning and events on the go, might be a focus on their physical location: “Should we spruce up our space, or look further afield to new premises?”

Budgets, schedules, people and available facilities all impact a decision to make-over or move. A successful redesign or relocation can boost staff morale and business performance.

Sometimes a premises just won’t meet a company’s future needs.

Businesses develop, staff numbers increase. Money spent on a new refurbishment now, might not be the best decision if three years down the track the space just cannot accommodate growth.

Relocating If you are swaying towards relocating premises, ask yourself: •

Are you paying too much for your existing location?

•

Can your business afford the move, which might mean a higher rent? Having a top-notch location won’t always do justice to your bottom line.

•

Can your existing office cope with an expansion? Sometimes simply making more efficient use of the space you’re in can do wonders.

•

A successful redesign or relocation can boost staff morale and business performance.

How can we future-proof our design efforts with our company’s long-term growth and wellbeing in mind, not just current trends or fads?

•

Which areas do we want to change/rework, and how many people do we need to accommodate?

•

What sort of timeframe do we need to complete the refurbishment in? Can it be worked in and around office hours?

Staying put Refurbishing your current office can provide plenty of opportunities for growth in facilities, and maximise the relationship between space and people. However, knowing where to begin can be unnerving, so starting points to consider include:

How will our company culture be reflected in the redesign? How can we future-proof our design efforts with our company’s long-term growth and wellbeing in mind, not just current trends or fads?

Consider everyone and every corner, in your refurbishment. Creating spaces within your office that incorporate a mixture of spaces shared and individual places, open and quiet zones, breakout areas and conference rooms - ensures better support and productivity all round.

A specialist designer consulted right from the get-go can provide a site feasibility analysis, with their taking you through the process of moving versus refurbishing, taking space measurements and looking at the specifics of each option.

The lead-in time for a project can be 12-18 months. During this time a designer guides you through each step to help save time and money: space planning, location choices, design concepts, furniture options.

Victoria Wilkes is founder and managing director of Outline Design. Visit www.outlinedesign.co.nz 26

BusinessPlus May 2017

international trade

Show time for NZ’s export community Book your seats now to our export awards dinner shows. There are two: •

•

on Thursday, June 29 when you will find out who the winners are of the 2017 Air New Zealand Cargo ExportNZ Awards, in Auckland. on Friday, June 23 when you can dress up in carnival theme (optional) to celebrate with the winners of the 2017 Bay of Plenty ExportNZ Awards in Mt Maunganui.

At the awards dinners you will also enjoy top entertainment, great dining, inspiration and networking.

Right now our judges are busy assessing the fabulous entries to the Auckland Awards; and entries for the Bay of Plenty Awards close on May 5. We will let you know who the finalists are in BusinessPlus (June issue). The winners will be profiled in BusinessPlus (August issue).

The Auckland event is run by ExportNZ Auckland and ExportNZ Waikato; the Mt Maunganui event is run by ExportNZ Bay of Plenty.

Export Awards night details 2017 Air New Zealand Cargo ExportNZ Awards AIR NEW ZEALAND CARGO

EXPORTNZ 2017 AUCKLAND & WAIKATO

Bookings: You will find the pricing and more about the Awards, past and present, at www.exportexcelerator.co.nz Email catherine@exportnz.org.nz to secure your place.

2017 Bay of Plenty ExportNZ Awards

Bookings: Read about prices and book your seats, at www.bopexportnzawards.org.nz

BusinessPlus May 2017

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international trade

By Thomas Manning

Buying Brazilian The Royal New Zealand Air Force (RNZAF) is considering buying a Brazilian-made aircraft, in a departure from traditional procurement practice.

One supplier under consideration is Brazilian company Embraer, which is virtually unknown in New Zealand compared to Boeing and Airbus, but is the third largest aircraft manufacturer in the world.

It has more than 19,000 employees in 10 international factories. One hundred airlines and public and private entities in 90 countries fly more than 8,000 Embraer aircraft manufactured since 1969.

Military aviation accounts for 14 per cent of Embraer’s global sales. Its latest model, the KC390 (pictured above), is one of several models under the RNZAF’s microscope.

At my behest, New Zealand’s leading geopolitical, defence and strategic analyst, Dr Paul G. Buchanan, has compared the Embraer KC390 with its competitors and recommends it as the best choice. Dr Buchanan says the Brazilian aircraft is a turbofan (jet)-powered, extended-range, multi-role, medium airlift platform.

It was manufactured in conjunction with suppliers from Argentina, Chile, Colombia, Portugul, other European and US suppliers, including BAE Systems, Rockwell Collins and

Boeing, which has a major service contract for the KC390 that extends to on-site servicing in the field.

The key values the RNZAF is looking for in its new aircraft are flexibility, durability, range, payload and cost.

It is evaluating the Brazilian Embraer KC390 along with Lockheed Martin’s C-130J “Super Hercules,” Boeing’s C-17 and the Airbus A400M. A new aircraft must be able to carry heavier payloads over longer distances than the existing C-130 Hercules but still be able to land and take-off on short, unprepared airfields. It also must be flexible enough to perform search and rescue, intelligence gathering and surveillance, air drop (of paratroopers and pallets) as well as to transport troops, helicopters, armour and general cargo.

Bonus features In addition to fully meeting the RNZAF’s stated requirements, the KC390 can perform aerial refuelling for fixed wing and rotary aircraft, undertake medical evacuation carrying up to 74 stretchers and eight medical personnel, perform aerial firefighting, carry the New Zealand Defence Force’s largest armoured personnel carrier or a helicopter - something the RNZAF’s current Hercules C-130 cannot do - and

perform tactical combat operations.

Dr Buchanan highlights an essential difference between the KC390 and the RNZAF’s current airlift options inasmuch as the KC390 has the ability to safely pass the current Point of No Return on Antarctic flights and still be able to turn around and return to New Zealand on a load of fuel while carrying a 14-ton payload, but with a maximum potential payload of 26 tons, which is five more than the existing Hercules can carry.

Beyond its performance specifications, the KC390 offers good value for money, in Dr Buchanan’s opinion.

The export version of RNZAF’s apparent favourite, the “Super Hercules” C-130J, costs approximately US$120 million compared to the KC390’s US$85 million. He says this is incomparable value considering the C-130J entered production in the mid-1990s using baseline technologies from the 1960s, whereas the KC390 is a new airframe using state-of-the-art components.

Dr Buchanan concludes that the KC390 represents a new type of airlift capability deserving of serious consideration even if buying Brazilian will be a departure from traditional defence procurement partnerships.

Thomas Manning is governing director of Manning Group Ltd and Transpacific Business Tours, and publisher of the Transpacific Business Digest. Visit www.manninggrouplimited.com 28

BusinessPlus May 2017

international trade

By Catherine Beard

Navigating the long-haul China export journey Doing business in China is not for the faint-hearted, and when it’s your first ever export market you are in for a really steep learning curve!

However, this didn’t deter Rachael Speedy and her team at NZ Premium Foods. She has seized the opportunity for selling New Zealand premium, natural produce into our largest export market.

Starting with just one product – premium extra virgin olive oil – Rachael is building NZ Premium Foods into a thriving exporter of a range of food and beverages into the Chinese retail and foodservice markets.

I picked her brain for some “survive and thrive” tips. Here they are:

It’s a long-haul journey Rachael says it took five years to research the market for product opportunities and to learn more about the culture, protocols and how to do business in China, before entering the market.

She says, “So you really need to take a long-term perspective if you want to go into China. You need to have a well-established business here in New Zealand and/or elsewhere first.

“We needed to confirm we had the five Cs: the capability to do so, the capacity to scale up the manufacturing when required, enough cash so as not to jeopardize our business in New Zealand, the commitment to stay in the market and the competitiveness to be there.

“From our research, we found we needed five times the length of time and five times the amount of cash to get in to the China market.”

Networking in New Zealand Rachael emphasized the hugely important role that networking has played – both within the Chinese community here in New Zealand and in China itself.

She says, “For the past five years I’ve been building relationships in the Chinese community wherever possible. This led to us finding one of our Chinese market partners, who we were able to meet in New Zealand.

“It helps that they have experienced the country, understand New Zealand and the product a lot better, and our regulations. Safety is paramount to the Chinese so it’s great that they can walk into the factory and see that it is absolutely spotless and that food safety is paramount to us.

“This partner represents our brand in market and have connections into the relevant retail sector, servicing 3000 supermarkets and convenience stores in the Shanghai region.

“We’re competing with the entire world. For example, European products are usually a lot cheaper than New Zealand products, so we’ve had to select niche markets that are more suited to our premium products. Our partner’s specialist in-market knowledge has been invaluable.”

Networking in China Rachael continues, “We’re prepared for a lot of networking once you’re in China too – the Chinese way, not the New Zealand way.

“That means meeting the families, dinners out. It’s a whole different

world; I can’t even compare the two in terms of culture and how business is done.

“For example, it’s the norm in China to do business over a meal. So a lunch or dinner can go on for hours, and there’s lots of protocol in terms of how you eat your food, who does what first.

“Because of all this, I now have a lot of friends in China! Our business partners really do become our friends.”

E-commerce is key She says, “Once we have established good market partners, we focus on longevity. For us it’s now about how we support our brands and what we can do to get products moving off the shelf.

“This means growing our presence through e-commerce, and having Chinese experts running a Chinese social media strategy from here in New Zealand.

“Having an e-strategy is a vitally important ingredient. E-commerce and social media in China can be difficult to understand. It helps to employ experts and just immerse yourself in it as much as you can.

“We post on Chinese social media such as WeChat almost every day, and we’re working on engaging more influencers.

“We would like to have more New Zealand premium food companies collaborating with us on the e-commerce journey – it lifts the profile of each of the products. So please get in touch!” says Rachael.

Catherine Beard is executive director of ExportNZ, which serves its members via regional offices throughout the country including through the ExportNZ division of EMA. To find your nearest office go to www.exportnz.org.nz BusinessPlus May 2017

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member profile

Chinese ICT firm invests in NZ Texting and smartphone displays in the Maori language are available for the first time, thanks to Chinese telecommunications equipment manufacturer, Huawei Technologies.

Its phones offer users the choice of running them in te reo Maori, or running a dual English and te reo Maori keyboard.

The company has also committed up to $400 million over five years for research and development (R&D) and digital innovation in New Zealand.

to learn about cutting-edge technology and participate in cultural exchanges.

Huawei will also open a regional office in Wellington, purchase more goods and services locally, and help local businesses integrate into its global supply chain network.

Huawei founder and chief executive, Ren Zhengfei, outlined the company’s investment plan for New Zealand and discussed ICT infrastructure build-out and digital

opportunities for New Zealand.

“The initiatives that Huawei is committing to will also help strengthen our research and development activity and capability building in the digital and technological world.

“International connections are important if we are to be productive and competitive in the global market place. Having access to the resources and technology lifts our ability to be innovative, agile and productive. We have identified this as a priority in the Business Growth Agenda.

“We must attract quality international investment to get the growth we need to deliver more highly-paid jobs for New Zealanders.”

Science and Innovation Minister Paul Goldsmith says, “The establishment of another New Zealand-based Cloud Data Centre will be a step forward for local companies and institutions looking to test new innovations on a locally-based platform.”

Prime Minister Bill English and Huawei founder and chief executive, Ren Zhengfei

Highlights of the investment include: •

$250 million in buying from New Zealand companies;

•

Working with local partners to build a New Zealand Cloud Data Centre;

•

Opening an Innovation Lab at Victoria University of Wellington this year to focus on the use of big data, and how to maximize the potential of the Internet of Things through future technology such as 5G;

•

Seeking new R&D partnerships to build an Innovation Lab in Christchurch ; and

•

Expand Huawei’s “Seeds for the Future” programme to 100 ICT and engineering undergraduate students over the next five years. The programme enables students to travel to China

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BusinessPlus May 2017

transformation, at a meeting with New Zealand Prime Minister Bill English.

Mr Ren said, “New Zealand’s open and fair trade environment, and its emphasis on developing new technology, facilitates our ongoing commitment.

“New Zealand has rich tourism resources, and highly developed agricultural and trade sectors.

Digital transformation empowered by advanced ICT technology can enable New Zealand to become better connected with the world, and transform its traditional strengths into driving forces of economic growth.”

Global opportunities Economic Development Minister Simon Bridges said, “The depth of the investment will touch many areas of the economy and open up global

Huawei’s audited financial results for 2016 report that its Carrier, Enterprise, and Consumer business groups each achieved solid year-onyear growth. Group annual revenue was CNY521.6 billion (US$75.1 bn), an increase of 32 per cent over 2015. Net profits were CNY37.1 bn (US$5.3 bn), an increase of 0.4 per cent.

In 2016, the company’s annual spending on R&D reached CNY76.4 bn (US$11bn).

Huawei began its operations in New Zealand in 2005. The company partners with all major operators including Spark, 2degrees and Vodafone NZ, providing much of the technology behind the New Zealand Government’s Ultra-Fast Broadband initiative.

Huawei is the world’s largest telecommunications network equipment manufacturer and thirdlargest phone maker after Samsung and Apple.

member profile

Bend it, shape it, any way you want it The engineering trades will know Auckland-based Bramley company as a 90-year-old supplier of robust and light machines throughout New Zealand and Australia.

After morphing from jobbing engineering into manufacturing and exporting, the company has recently expanded its machining arm to custom fabrication of highly computerised components, both new and repaired, for the likes of yachts and all types of manufacturing machinery.

“Capital investment has increased our capacity and provided a real opportunity to take on new customers for the first time in years,” says general manager Rick Ellis.

“After a long-term association with Japanese supplier Okuma, we have bought another of their computerised numerically controlled [CNC] machines.

“We have a state-of-the-art CNC machine shop, which manufactures all sorts of custom made parts unavailable off the shelf.

lightest titanium vacuum pumps that are portable and reliable for the serviceman.

Relationships and quality equal success And the recipe for the company’s success, says Rick, has been great relationships built up over generations, coupled with consistently supplying quality products at reasonable prices.

He says, “There is great team loyalty, with an average 20 years of service in staff across factory, sales and administration teams, along with a solid core distributor network nationwide.”

Bramley is known for making its own branded equipment and selling branded imports. Apart from being a market leader in its home markets of New Zealand and Australia, R.R. Bramley & Co Ltd exports to the US, Canada, England, Indonesia, Papua New Guinea, the Pacific Islands, Singapore, Malaysia and Japan.

“I’ve watched the team turn a piece of steel into an incredibly accurate and detailed machine for a large confectionary producer, with amazing precision, showing the capability of our people and these dynamic machines.

Bramley sells its own branded, and imported, machines for bending metal pipes, curving sheet metal, cutting, punching and sawing; machines and oil for threading pipes and bolts; and electric chain hoists. The company prides itself on also being the leading supplier of industrial bench grinders in Australasia.

“There is now a wonderful range of machines used for cutting, bending, drilling and forming, along with hand tools for plumbers, HVAC and wider trades.”

Back in 1921, R R Bramley and Co was founded as jobbing engineers and in 1953 was purchased by the Herbert family. The Herberts have continually expanded the business.

Bramley is also launching a new range of Japanese Asada products: fire protection tools including for gas detection; and heating, ventilation and air conditioning (HVAC) systems that include the

In 1980 they set up Garrick Herbert Pty Ltd in Sydney, Australia for manufacturing and warehousing, to support the increasing demand for the Bramley range in that market. In 1991 the Garrick Herbert business

Rick Ellis with a sample of Bramley’s products

Bramley has bought another of their computerised numerically controlled (CNC) machines to diversify its offering and for the first time in years, provide capacity to take on new customers.

An industrial bench grinder being packed for sale.

bought the Linishall company factory that also supplied engineering equipment and made components.

In 2011 further expansion was undertaken with the establishment of Garrick USA LLC in Winona, Minnesota. This company distributes key product lines such as Bramley and Linishall brands into the American and Canadian industrial marketplaces.

BusinessPlus May 2017

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