EMA BusinessPlus June 2013

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Issue 104 – June 2013

P ublicatio n o f t h e E m p l o y e r s & M a n u f a c t u r e r s A s s o c i a t i o n Inc

Personal grievance statistics:

EMA members fare better than non-members

Sponsors, donors help with housing

In this issue: • • • •

Go Global: just do it Bullying denied: what now?

Commercial property plentiful: update Attitudes are key: safer workplaces

$6.30

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Jo Douglas Managing Solicitor P +64 9 367 0917 M +64 27 683 7919

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We work with you at our training centre or on-site at your business to make sure your people get the best learning and the best results. With over 6,000 satisfied attendees every year - we believe we are New Zealand’ s business trainer of choice.

All our training is based on experience, excellence and innovation. We take pride in working closely with our members and our community, and using those relationships to develop training that’s ‘workplace ready’ for your industry.

Matthew Dearing Solicitor P +64 9 367 0931 M +64 27 284 4042

• • •

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IN PERSON OR OVER THE PHONE, WE HAVE YOU COVERED Consultancy.

Every year, our extensive team of consultants handle over 2000 employment, health and safety issues – that’s experience and judgment you can rely on.

Our team are constantly working in your industry, your area and on behalf of employers and business owners. We specialise in understanding and implementing strategies for real growth and building sustainable and successful organisations. Sure, we can help you when you get into trouble or collective bargaining, but more importantly, we can work with you to build something special.

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Our team of trained professionals have access to over 100 years’ worth of precedence, patience and experience. They’ve got the time and the talent to listen to you, find out about your aspirations for your organisation and then help you make them happen. Plenty of people can offer you information – we offer you Advice.

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BusinessPlus is published by : The Employers and Manufacturers Association (Northern) Inc 159 Khyber Pass Rd, Grafton, Private Bag 92066, Victoria Street West, Auckland 1142 Ph: 09 367 0909 or 0800 800 362 Email: ema@ema.co.nz Website: www.ema.co.nz Chief Executive: Kim Campbell Advocacy Manager: Bruce Goldsworthy Manager, Employment: David Lowe Manager EMA Learning: David Foley Manager EMA Membership & Marketing: Mauro Barsi Whangarei Louise Morrison 09 459 1501 mob 027 6870604 Waikato Denis Quigan 07 823 9311 Russell Drake 07 838 0018

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BusinessPlus Editor Gilbert Peterson Ph: 09 367 0916 gilbert.peterson@ema.co.nz Writer Mary MacKinven mary.mackinven@ema.co.nz

On the cover...

Donations from businesses help people like Sithoeun Bit’s Cambodian family ease themselves into home ownership. For more information on how EMA member organisation Habitat for Humanity works, and how you can help, see page 23.

4

Contents 3

Advocacy 04

EMA advocacy at work

05

What’s the problem with Standards?

– By Kim Campbell, EMA CEO

10

Outlook for business tips into positive – By Phil O’Reilly, BusinessNZ CEO

11

A new world starting, right here in NZ

News 06

Caltext Starcard fuel card winner

07

Kiwbank Business Bank special offer to members

14

Seismic performance: commercial property update

16

Words of wisdom abound at exporters' conference

17

Momentum rises for T maki community regeneration programme

19

Mindset makes the difference for safety at work

23

Proud Moments - Habitat for Humanity - Villa Maria - Rinnai

25

Member Profile: There’s always a way – machinery manufacturer Hunter Filling Systems

14

6

Learning

Published by Mediaweb Designer Bex Mikaere

18

Is selling your business the best option?

Part III

21

Generation gaps not that big

Advice

Advertising Sales Colin Gestro (09) 444 9158 colin@affinityads.com

08

Performance problems are the most difficult to get right; legal fees falling

ISSN No. 1176-4953

12

Employment chat: Bullying denied: what now? And ‘I have proof of theft – what now?’

14

Stepping towards safe workplaces

19

Mindset makes the difference for safety at work

28 29

WINTER BRIEFINGS SCHEDULE

16

27 Our Vision. Your Success

4

Advocacy

EMA: advocacy at work Talking business with school students

Students involved in activities at EMA on Workchoice Day last year

E

MA in Auckland hosted two secondary schools at the annual Workchoice Day in May. On the day, schools around the country visit businesses of their choice to learn what they do and gain an understanding of business and where they might look for jobs.

Each department in EMA competed to be as entertaining as possible in getting our message across. The advocacy team gave a prize to the small group in each school for the most correct answers to a quiz about business-related current affairs (you’d be surprised how smart these kids are!), and the employment relations team conducted a role play on an employment scenario.

Constitution for writing a Constitution, anyone?

EMA’s Policy Forum discussed the notion put forward by Government: should New Zealand have a written, formal constitution – a set of rules that determines how a country is governed and how its people live together; who exercises power and the checks and balances on those powers.

The Forum members decided an EMA submission on the matter needed to focus on the business environment, for such as property rights and political stability, and that members’ views should be canvassed.

Watch this space!

You can read about the issues at www.ourconstitution.org.nz

Support for convention centre One of EMA’s media recent statements was a reaction to the public announcement that SkyCity is to build a new convention centre in Auckland with help from the Government in the form of BusinessPlus – Exclusive news, advice, learning and networking

extending the company’s casino operating license and other concessions.

EMA chief executive Kim Campbell said, “The Convention centre is a necessary component for Auckland to realise its ambitions in becoming an internationally focused city.

“All international cities have the capacity to attract substantial convention related business and Auckland needs to be able to do this.

“The arguments for and against the centre have been well rehearsed and in the end the community may have to accept some trade-offs.

“We applaud the efforts being made to minimise negative social effects and recommend they be kept up,” he said.

Submission topics many and varied EMA tackled many government proposals that will affect business compliance and other costs. In summary: • We told the Electricity Authority its proposal for pricing supply to end users will be bad for New Zealand, particularly manufacturers (big users). It lacks benefits, increases the risk of price volatility and increases, discourages new transmission investment, and more.

• We told the Ministry of Business, Innovation, and Employment that a single, strong and independent, adequately funded Standards New Zealand body is needed to develop standards aligned with internationally recognised processes.

• We submitted our views on New Zealand Post’s proposal to change its delivery frequency, with our submission including the 900+ responses we received to a member survey on the issue.

• We told the relevant branch of the Ministry of Business, Innovation, and Employment that NZ Post needs a new deed so it can provide a minimum basic postal service and to maintain a network of retail outlets, with flexibility about how and where.

• Our submission on the Financial Reporting Bill said that New Zealand needs to be aligned with Australia.

Budget 2013 implications for business EMA members heard a rundown of the implications for business in Budget 2013 from Finance Minister Bill English, at a Post Budget Lunch.

He said ACC is running much better [than a few years ago] – in particular, rehabilitation rates have improved (more people are getting back to work faster) allowing benefits to be passed on as reduced levies from 2014 and probably with scope for more reductions.

Regarding building consents in Auckland, he said the Government’s new Housing Accord with Auckland Council will see more housing come onto the market and “we don’t care if that comes from green or brownfields but we don’t want planning laws to be deciding the fate of the economy.

“Auckland Council understands the national implications of their decisions; that if you push prices up it affects everyone, so Government has the power to issue consents if the Council tools don’t work for new housing, especially for low and middle income people.”

He added that the Housing Corporation is bigger than all stateowned enterprises combined and some of its properties are the wrong size in the wrong place in poor condition so Government is opening it up to competition for state house subsidies.

Currently the face of new state housing is in Hobsonville and increasingly in Tamaki suburb where there are 3000 state houses possibly with room for 10,000.

Government also has a five-year programme to get more people off welfare and into jobs.

Government is continuing to look for an affordable mechanism to collect GST on online consumer purchases from overseas sellers.

Mr English delivered the Budget on May 19. EMA’s Budget Special e-report on May 16 summarised the issues for business, as did our media statement that can be found at www.ema.co.nz

Advocacy

By Kim Campbell, Chief Executive, EMA

What’s the problem with standards?

(First published in the National Business Review)

What is the problem about our grossly under-funded Standards NZ organization that the present government review is trying to fix?

I

t can’t be about funding because the government doesn’t contribute anything towards maintaining the organisation.

By far the biggest share of its revenue comes from the sale of publications. Well, it does contribute towards the cost of its membership of the international standards organisations, the International Standards Organisation (ISO) and International Electrical Committee (IEC), but that’s about it.

Yet the consultation process about Standards NZ’s future has been through the grind of two rounds and a discussion paper.

Three options were put up: Roll it under the ambit of some other organization, make it just another desk at the Ministry of Business, Innovation and Employment, or keep it as a standalone body funded properly.

We don’t claim to understand the reasoning around the first two options since the gains from the third, for a nation thinking about how to become an innovative leader, far outweigh its likely costs.

Before looking at that, what would happen if standards was devolved to say, one or several industry associations that may want their own industry standards to protect their products and services. Before accepting the challenge these organisations would want to be sure the standards they developed would be their property, for sale to other parties if they wanted, or to keep for their own purposes. They would want to own the IP associated with their development. Otherwise, why would they invest in developing standards?

The ministry desk option is third world.

How could one or two individuals retain New Zealand’s credibility when dealing with standards Australia, the ISO, or the IEC? They might manage just to keep up with local inquiries on developing or buying copies of standards presumably supplied from overseas. Ours from earlier times would soon be out of date.

At present Standards NZ provides

essential public services for nothing. Just for its contribution to the public health and safety, standards warrants some public funding.

But it turns out the organization has been entitled to some funding all along.

"Furthermore wellcrafted standards have advantages over top-down government regulation. The processes used for their development are responsive to industry and consumers..."

It seems that mandatory levies for such as building, electrical products and gas have been paid for many years. But no revenue has been sequestered from them for standards development.

The money has been gathered up and invested on other things.

So here’s the start of an answer. Start earmarking part of these levies exclusively for the maintenance and development of standards, not for skills development or research funding.

There’s a whole group of further reasons why standards warrant tax payer funding.

They save money. Its been said if all the screw manufacturers in World War II England had used the same thread the country would have saved the present day equivalent of £55 million. Standards also help lift productivity and innovation. They are often preferred over patents for the protection of IP. Furthermore well-crafted standards have advantages over top-down government regulation. The processes used for their

development are responsive to industry and consumers, and they keep pace with changing technology more adeptly and adroitly than government regulation. And they are open and transparent.

Its fundamental to have international products on our market that comply with our standards for things like 240-volt electricity, and driving on the left-hand side of the road. It’s also true New Zealand has unique levels of seismic activity, UV light, and acoustics, all of which demand the need for local research for the setting of standards.

With the case for recognizing the public benefits provided by standards to enhance public health and safety compelling we should add a bit more from the public purse to ensure imports meet our standards to help protect our consumers’ health and safety.

By now it’s no surprise that EMA supports the need for a strong standards body that can hold up our end with Australia, the ISO and IEC. It’s simply critical for trade.

Standards are even being specified in free trade agreements: the TPP, for instance, includes the adoption of standards as part of a country’s adherence to the agreement.

With the Standards Council as the sole developer of standards that are designated New Zealand Standards (NZS), the NZS brand is creditable and authoritative because it is produced in accordance with internationally recognised processes and criteria from the ISO and IEC. Without a robust standards organization able to set the world wide Standard for unique Kiwi developments such as New Zealand electric fencing, jet boat propulsion, and food quality we surely risk losing the ability to capture the financial benefits from them.

In summary, standards promote innovation, facilitate international trade and help business leverage their competitive advantages.

New Zealand needs an independent, credible standards body recognized by international standards bodies, and adequately funded from a mix of public and private sector funding to develop capability, expertise and international recognition.

BusinessPlus – Exclusive news, advice, learning and networking

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News

Starcard prize to air services company C

ongratulations to Hamilton Aero Maintenance Ltd - the lucky EMA member company to win this month’s $500 Caltex Starcard fuel draw.

Based at Hamilton airport, the company provides a range of aviation services such as routine servicing of aeroplanes including sheetmetal and fabric repair, etc, and issuing a New Zealand Certificate of Airworthiness; installing, maintaining, testing and repairing a range of avionics componentry; and ground support services from landing to take off.

Its clients are individuals, airlines and Governments in New Zealand and overseas – for

their private or commercial planes, propellor or jet, single or 250-seaters.

The company was established in 1984 by Pat Mackenzie (now chairman), Dave Stewart (director/engineering manager) and Glenn Mackenzie (director).

Today, nearly 30 years later, the company has around 40 staff providing a range of services at Hamilton Airport and other locations.

Chief executive Chris Evans says, “We believe the key to success in any business is its people. HAM Aero are proud of its people and the skills, knowledge and ability they have.We also believe our staff

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BusinessPlus – Exclusive news, advice, learning and networking

EMA’s Ben Johnson (left) hands the Starcard fuel voucher to Chris Evans, chief executive of Hamilton Aero Maintenance.

are proud of our company, as many have been here a long time! That is good for the health of our company and good for our clients.”

Companies who joined EMA during February, March, April and May were entered into the

draw to win one of four Caltex Starcards topped up with $500.

Existing members are also eligible for discounts off the pump price on fuel at Caltex service stations. Check out the offer at www.ema.co.nz under ‘membership rewards’.

News

Special member offer on Kiwibank business accounts, cards K Chief executives Kim Campbell of EMA (left) and Paul Brock of Kiwibank

Backing Job Creators.

Receive a 20% discount on transaction fees on business banking accounts.

iwibank Business Bank and the EMA are both are passionate about New Zealand business.

So EMA is pleased to announce Kiwibank is offering EMA

An offer for EMA Members.

Get a 3% discount off the Business MasterCard®.

Business Banking.

Kiwibank Business Banking and the EMA are both passionate about New Zealand business and supporting our own. As an EMA member you will receive discounted rates and transaction fees on your business banking accounts and business credit card when you bank with Kiwibank.

Find out more about Kiwibank Business Banking today.

KWB0002

kiwibank.co.nz/businessbanking | 0800 601 601 Kiwibank Limited’s Disclosure Statement is available from your local Kiwibank or at kiwibank.co.nz. MasterCard is a registered trade mark of MasterCard International Incorporated. Kiwibank’s lending criteria, terms and conditions, and fees apply.

AKB0001 BusinessBanking EMA A5 FA.indd 1

BusinessPlus 10/05/13 3:15 PM

members who are customers, exclusive discounted rates and transaction fees on their business banking accounts and business credit cards.

Kiwibank chief executive Paul Brock says Kiwibank Business Banking is a Kiwi business, which means it knows the upsides and the downsides of this market.

The bank believes that supporting Kiwi businesses in the right way means it will help grow a stronger economy.

“Since 2005, we’ve been busy behind the scenes quietly growing our competency and capacity to provide Kiwis with the diversified banking business suite they need and deserve.

“We now have mutually supportive relationships with more than 33,000 Kiwi businesses and that number is growing.

“We’re particularly devoted to small to medium enterprises.

We started small ourselves so we know what it’s like to be a growing Kiwi business.

“We’re in it for the long haul and we’ll do everything in our power to support an incredibly vital part of the Kiwi economy to succeed.

“We are pleased to have recently agreed a partnership with EMA to work together to achieve this vision. This partnership is uniquely poised to support and serve Kiwi businesses.”

To kick things off, Kiwibank Business Bank is offering EMA members special rates and transaction fees on their business banking accounts and their business credit cards.

Contact Kiwibank Business Bank today to find out more: visit kiwibank.co.nz/business.banking or phone 0800 601 601.

– Exclusive news, advice, learning and networking

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Advice

By David Lowe, EMA’s Manager of Employment Services

Performance problems are the most E

mployee performance and attitude issues are the hardest for employers to get right, according to the EMA’s analysis of all 2012 personal grievance determinations from the Employment Relations Authority.

85% of employers were found by the Authority to have dealt with staff performance problems the wrong way.

A single act of unacceptable behaviour can be easy to manage. But an employee whose performance and attitude fluctuates from day to day from unacceptable, borderline and acceptable is difficult, and in the end frustrated employers often call time on them.

The 90-day trial period permitted is often not long enough to uncover an issue such as a poor attitude to work; a 180-day trial period would be better, and give employers even more confidence to hire.

While the majority of employers use trial periods, there is still some difficulty putting them in place. Thirty-four claims were made by employees whose employment finished within the first 90 days.

91% of those employees won their cases.

The number of personal grievances, and the chances of winning in 2012 appears to be impacted by the interruptions caused by the Christchurch earthquake. The Christchurch Authority understandably

suffered delays in hearing cases in 2011 (only 95 grievances were heard) causing a backlog of cases to be heard in 2012 (148 grievances were heard). It appears only those employees who felt seriously aggrieved persevered with their cases during the delays. That meant the 77% of decisions favouring employees were much higher than the 57% favouring employees in Auckland and the 69% in Wellington.

Added to the earthquake disruption, membership changes at the Authority also contributed to some delays as serving members finished their term of appointment and new members started.

The national average award for hurt feelings was $5,610, higher than the 2011 average of $4,976, but on a par with 2010’s $5,543. Christchurch averaged the highest at $6,465, then Auckland $4,941 with Wellington at $4,545.

Employers successfully defended 46% of constructive dismissal claims and 39% of claims based on misconduct. However, it is harder to defend disadvantage claims successfully, with only 27% of employers succeeding.

Claims based on performance are the most difficult with employers successfully defending only 15% of them. Redundancy is also an area proving difficult; employers successfully defended only 29% of claims.

In 2010 re-instatement at work was the

primary remedy, but only 20 claims were made on the 591 grievances heard, with reinstatement ordered 12 times. On 1 April 2011 reinstatement became just one of the remedies available – it lost its status as the primary remedy. In 2011, 11 claims were made with three successful, and in 2012 10 claims were made with five successful.

EMA members continue to fare well in the Authority. EMA members won 64% of their personal grievances in 2012, compared to non-members winning just 36%.

Legal costs for an employer average $12,445 and for an employee, $7,843.

The average legal bill for employers fell by $3,605 from 2011.

Employees’ average legal bill fell by $1,357 compared to 2011.

It is usual for the unsuccessful party to contribute to the legal costs of the other.

Employees were required to contribute an average of $5,814 (47%) to employer costs. An unsuccessful employer was required to contribute an average of $3,754 (48%) to the employee.

With an employer’s average legal bill decreasing, the average cost for an employer to successfully defend a personal grievance nearly halved from $11,355 to $6,631.

We expect the payout an employer will be prepared to make, to make a claim they believe has little merit to ‘go away’, will drop accordingly.

Average cost to win/lose a personal grievance (PG) at the Employment Relations Authority Employer To Win

To Lose

Hurt feelings Lost wages Legal fees Costs award

$0 $0 ($12,445) $5,814

Hurt feelings Lost wages Legal fees Costs award

($5,610) ($13,104*) ($12,445) ($3,754)

TOTAL

($6,631)

TOTAL

($34,913)

Employee To Win

To Lose

Hurt feelings Lost wages Legal fees Costs award

$5,610 $13,104* ($7,843) $3,754

Hurt feelings Lost wages Legal fees Costs award

$0 $0 ($7,843) ($5,814)

TOTAL

$14,625

TOTAL

($13,657)

*Average hourly rate from Quarterly Employment Survey (Dec 2012). Average lost wages is three months.

BusinessPlus – Exclusive news, advice, learning and networking

Advice

difficult to get right; legal fees falling Personal grievance awards analysis [2012] 2009 Average hurt & humiliation award

Change from 2009 to 2010

2010 Average hurt & humiliation award

Change from 2010 to 2011

2011 Average hurt & humiliation award

Change from 2011 to 2012

2012 Average hurt & humiliation award

Location

In favour of employees

PG awards by Authority member

M Ryan

Wellington

82%

$4,550

-

A Dumbleton

Auckland

78%

$7,750

+53%

$5,062

+43%

$3,528

-60%

$8,800.00

P Stapp

Wellington

79%

$4,705

-3%

$4,875

+34%

$3,625

-30%

$5,166.67

A Fitzgibbon

Auckland

64%

$6,500

-

G Wood

Wellington

50%

$3,417

-18%

$4,148

-20%

$5,181

-16%

$6,143.00

P Cheyne

Christchurch

68%

$9,333

+9%

$8,564

+79%

$4,775

-13%

$5,500.00

H Doyle

Christchurch

94%

$5,950

-8%

$6,437

+54%

$4,185

-31%

$6,083.33

D King

Auckland

44%

$5,625

+53%

$3,667

-39%

$5,967

+8%

$5,533.33

J Crichton

Christchurch

45%

$5,015

+27%

$3,944

-36%

$6,133

+76%

$3,475.00

D Appleton

Christchurch

84%

$5,946

-41%

$10,000*

-

R Arthur

Auckland

80%

$3,938

-9%

$4,308

-22%

$5,500

+49%

$3,681.81

T Tetitaha

Auckland

100%

$5,000*

-

R Monaghan

Auckland

57%

$3,389

0%

$3,382

-18%

$4,105

+39%

$2,958.33

C Hickey#

Christchurch

71%

$4,250

-

K Anderson

Auckland

48%

$4,840

+19%

$4,055

+30%

$3,107

-38%

$5,000.00

E Robinson

Auckland

54%

$4,573

-36%

$7,127

+58%

$4,523

-

M Loftus

Christchurch

67%

$6,393

+98%

$3,233

-68%

$10,000**

-

R Larmer

Auckland

76%

$5,437

-29%

$7,692

+33%

$5,771

-

T MacKinnon

Wellington

100%

$6,500**

-

67%

$5,610

+13%

$4,976

-20%

$6,218

+26%

Total average * One decision only

** Two decisions only

$5,184.82

# Seven decisions

PG awards favouring employees, by region Number of claims compared to 2011

2012

2011

2010

2009

Auckland

-22%

89 in favour of employees out of 157 claims (57%)

111 in favour of employees out of 201 claims (55%)

166 in favour of employees out of 309 claims (54%)

189 in favour of employees out of 309 claims (61%)

Wellington

-19%

42 in favour of employees out of 61 claims (69%)

38 in favour of employees out of 75 claims (51%)

65 in favour of employees out of 104 claims (62%)

66 in favour of employees out of 115 claims (57%)

Christchurch

+56%

114 in favour of employees out of 148 claims (77%)

52 in favour of employees out of 95 claims (55%)

National

-1%

245 in favour of employees out of 366 claims (67%)

201 in favour of employees out of 371 claims (54%)

115 in favour of employees out of 178 claims (65%) 346 in favour of employees out of 591 claims (59%)

85 in favour of employees out of 155 claims (55%) 340 in favour of employees out of 579 claims (59%)

BusinessPlus – Exclusive news, advice, learning and networking

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Advocacy

By Phil O’Reilly

Outlook for business tips into positive I

ndications for business are better than in recent years. With the peak of the global financial crisis now more than three years behind us, signs for the New Zealand economy are becoming more positive.

Globally, many difficulties remain and growth prospects in many economies are sluggish; however, the US, the world’s largest economy, is showing encouraging signs of business and job growth.

Good signs • New Zealand’s prospects as an exporter of quality foods largely depend on international commodity prices, and over recent months these have remained firm.

• Export volumes to China, now our number one trading partner, are nearly a third higher than a year ago.

• New Zealand’s GDP growth has been around 2.3 per cent over the last year – far better than many other developed countries.

• Surveys of the New Zealand manufacturing and services sectors show both have been expanding so far during 2013, and consumer and business confidence surveys are positive.

• Unemployment fell from 6.8 to 6.2 per cent in the first quarter of this year.

• New opportunities are emerging as development gets underway in the

minerals industry in many parts of the country.

• Much infrastructure development is underway, notably in Auckland and Christchurch, with a big build of roads, schools, hospitals and convention centres scheduled.

The ultra-fast broadband roll-out continues, and plans for a new state owned enterprise to develop dams and irrigation for water storage are progressing.

Challenges remain Despite the optimism, the following challenges remain.

New Zealand’s debt history will take time to resolve.

Government debt is now well over $100 billion. The Government is seeking to address this through its Business Growth Agenda that seeks to boost exports, innovation and skills within the New Zealand economy.

The assets float programme - part of the Growth Agenda - is allowing for significant amounts of debt to be paid down and at the same time is strengthening and adding depth to the stock exchange.

But household debt is also high.

Household debt levels started to reduce in the wake of the global financial crisis, as households started focusing on paying down debt rather than increasing consumption – however, those debt levels

are starting to creep up again.

Low interest rates are no doubt playing a part in this, and the Reserve Bank is expressing caution about the possible growth of a housing bubble as a result.

New powers, including limiting high loanto-value ratios, could if implemented take some of the air out of any such bubble, although this might cause difficulties for first home buyers.

Another constraint in the economy is lack of housing supply. Local government could help ease this problem by releasing more land on the outskirts of cities.

Local government could also aid economic recovery by improving its processing of consents under the Resource Management Act, thereby helping to achieve more investment and development - and by limiting its own expenditure.

High council spending is pushing up rates and reducing opportunities for investment in other areas, while council wages are growing faster than wages in other sectors and faster than New Zealand’s GDP growth.

While there are challenges around debt levels, investment and spending, there are now many more positive signs for future growth in New Zealand business.

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

Stepping towards safe workplaces New Zealand’s need for guidelines for directors to ensure their companies have suitable health and safety measures in place is sad, but the message overall is positive, says Employers and Manufacturers Association (EMA) manager of occupational health and safety (OH&S), Paul Jarvie.

Speaking at last month’s launch of the directors’ guidelines document, “Good Governance Practices Guideline for Managing Health and Safety Risks”, Mr Jarvie said that after all, anything that improves safety is a positive activity.

The Guideline document, if used, will BusinessPlus – Exclusive news, advice, learning and networking

create a level of governance not seen before in New Zealand.

The intention is for positive and concerted action by directors and those who govern workplaces.

The Guideline document will assist those directors using it to ask the right questions and at the same time to provide options for interventions in workplaces. It is another tool in their toolbox.

Directors should not feel threatened by this Guideline. But they will need to demonstrate the level of intervention required in relation to the particular risk profile of the business where they govern.

The EMA welcomes the document and will be promoting it to our members.

We are already taking calls from member companies inquiring about this topic and have seen boards and directors making changes.

With this document, plus the recommended changes from the Independent Taskforce on Workplace Health & Safety, there will be a seachange in the way we manage health and safety in New Zealand.

Put simply, the world has changed and with that, requirements have changed at all levels of business, he says.

Advocacy

A new world starting, right here in NZ T

he world is looking a little brighter for Kiwis compared to three or four years ago, as a flow-on effect of the consistent upswing in manufacturing and service industries, says Employers and Manufacturers Association manager of advocacy, Bruce Goldsworthy.

Growth in business (even at small levels) has the positive effects of secure and increased employment and the availability of goods and services to improve people’s lives. Furthermore, this means more tax is paid, and Government services also become more certain.

We have been cautiously watching the results of our own monthly surveys of member organisations in both manufacturing and services, as well as different bank surveys of business confidence and retail spending.

We can now say the trend for the

past six months shows the When the Index is above previous volatility has set50 points it shows survey tled down and we see some participants are in expanconsistent improvement. Based sion, and below 50, that on these results, we can look their orders, employment forward to modest and continlevels and other measures of ued growth. activity are declining.

We really need to look at Another encouraging Bruce Goldsworthy how we are doing in relation signal from the April PMI to manufacturing in other was that the index for new parts of the world, as a major factor in orders stood at 59.4, well into positive our own situation is the level of global territory. demand and supply. The most recent Likewise in the April BNZ-BusiBNZ-BusinessNZ Performance of nessNZ Performance of Services Index Manufacturing Index (PMI) statistics (PSI), the USA was 54.4, the UK 52.4, suggest that compared to our compathe Eurozone 46.6, Australia 44.1 and triots in other major manufacturing New Zealand 56.1 – for New Zeacountries we are holding up pretty land, the highest April result since the well.” survey began in 2007.

For example, the PMI for April in The seasonally-adjusted BNZ-Busithe USA was 51.3, Japan 50.4, the nessNZ Performance of Composite InEurozone 46.8, Australia 36.7 and New dex or PCI (which combines the PMI Zealand 54.5. and PSI) for April stood at 56.1.

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12

EMPLOYMENT CHAT

Bullying denied: what now? And ‘I have proof Q. After my last query (Business Plus, May 2013) I did an exit interview with a valued staff member just before he left, and he told me he couldn’t take any more of his manager’s bullying. The manager denied the problem, basically. Now what do I do about the manager? - Lance Dear Lance When an employee cites bullying as the reason for leaving, the employer should be concerned not only for workplace health and safety but also the departing employee may raise a personal grievance for constructive dismissal.

An employer would be wise to invite the employee to reconsider their resignation, undertake to conduct an investigation, and take action if there is substance to the allegation.

I gather you have lost confidence in this manager and feel he is somewhat to blame.

Remember that bullies don’t necessarily bully everyone. For example, you have had no other complaints about this manager in this regard, though this could be because everyone is scared of him, or scared to tell you!

Actually the same (May) issue of our magazine has an article on page 10

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explaining the difference between a manager being authoritative and being bullying.

It would pay for you to investigate this manager further in order to avoid further problems. An informal investigation could

Be careful who else you confide in about your concerns: you do not want to be spreading a rumour or bad-mouthing this manager before the evidence is in!

include your listening and looking to see how he interacts with others, the feedback on any formal reporting processes you have undertaken, and so forth. Revisit his CV, explore social media for clues, and so on.

You might like to engage an employment relations consultant to help (EMA can assist) and advise on the processes to follow.

Be careful who else you confide in about your concerns: you do not want to be spreading a rumour or bad-mouthing this manager before the evidence is in!

If your findings give cause for concern you could instigate a formal performance review.

Follow the required procedure in good faith and don’t pre-judge the outcome.

Also, depending on what you find, you might ask the ER consultant for help to develop a workplace culture where staff feel able to report bullying so it can be nipped in the bud.

Q. The worst has happened. I have proof a senior and long term manager is stealing. He is letting other people outside the business use the company fuel card and he has stolen computer equipment, possibly over a long period of time. How do I get my money back and get him out the door? – Fred Dear Fred You should carry out a further, necessary investigation first to ensure you have enough evidence.

You could consider engaging a private investigating company experienced with this type of thing.

Then follow a formal disciplinary process and put the allegations, along with your evidence, to him beforehand.

After considering any explanation and all the circumstances, you may be justified in dismissing without notice.

Your employment agreement should spell out that theft or unauthorised possession of company property is serious misconduct and cause for summary (instant) dismissal without notice.

It is best to frame the allegation as ‘unauthorised possession’ or ‘unauthorised use’ of company property to avoid the legal technicalities of ‘theft’.

You must still pay him wages/salary and any benefits owed up to the date of dismissal. In order to make any deductions from final pay to recover any money, technically you need written consent from the employee. A clause in a signed employment agreement may suffice for this, depending on the wording.

Once you have investigated and dealt with it, you can also call the police and report theft, if you want to. He may or may not be charged with a criminal offence. If he is charged, then he has a right to silence about his culpability until a court case. Therefore it is best to complete your employment process before reporting it to the police.

Q. One of my hairdressers has resigned and I believe she is going to work for a competitor around the corner. She never

13

WHAT EMPLOYERS ARE ASKING ADVICELINE THIS MONTH

of theft. What do I do?’ signed her contract, but I want her to leave immediately and pay her in lieu of working out her four weeks’ notice. Can I do that? - Ange Dear Ange Since 1 July 2011, an employer has had to keep a signed copy of an employee’s written agreement, or the current terms and conditions that apply. If the employee did not sign the agreement, then a copy of that agreement will suffice. An employer who fails to keep a copy may be subject to a penalty.

Employers can cover as many different topics as they like in their employment agreements so long as they comply with the law, such as including minimum work conditions like 20 days annual leave. For example, many employment agreements allow an employer to pay in lieu of notice.

You could also in future include ‘restraint of trade’ terms which may prevent an employee working for a competitor for a certain period of time and prevent them taking your clients with them.

It is always best practice to have a signed agreement before a new employee starts work. Even before July 2011 employers were required to provide a written agreement to prospective

employees and give them an opportunity to seek independent advice before signing.

In your case, check the agreement that you gave to the employee. If she has not signed it but not raised any issues, it may

Check the agreement that you gave to the employee. If she has not signed it but not raised any issues, it may be implied that she has agreed to the terms.

be implied that she has agreed to the terms. So if the agreement says you can pay in lieu of notice then you should be able to do that. Otherwise you could seek her agreement to do this.

• By the EMA Advocacy 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 AdviceLine team at phone 09-367 0909 or 0800 800 362 (within New Zealand), and 1800 300 362 (from Australia), 8am-8pm weekdays.

Alternatively, email adviceline@ema. co.nz or read or print information such as the A-Z of Employing – a manager’s guide on more than 100 specific employment topics, at www.ema.co.nz • To inquire about becoming a member to gain access to this free AdviceLine service, please contact EMA Membership at the numbers above or through EMA.co.nz.

SPECIALIST EMPLOYMENT LAWYERS Our lawyers specialise in employment law and only act for employers. We are a professional team who will back you and your business. Our team are committed to providing excellent value and service.

Jo Douglas Managing Solicitor P +64 9 367 0917 M +64 27 683 7919

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0800 362 534

Ani Bennett Senior Associate P +64 7 577 0488 M +64 27 706 4433

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Matthew Dearing Solicitor P +64 9 367 0931 M +64 27 284 4042

Brandon Brown Solicitor P +64 9 367 0912 M +64 21 515 116

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News

Seismic performance: commercial property update EMA asked member commercial real estate services firms for their views on the property market.

Read below about the concerning issues, movement and values in the market, from Jones Lang LaSalle and CBRE Ltd & CBRE (Agency) Ltd.

T

he major concern impacting property investment decisions throughout New Zealand is the earthquake-proof level of buildings, both companies report.

Jones Lang LaSalle researchers say that while investors in Auckland are concerned with seismic activity, Wellington is receiving the most attention due to its prone earthquake risk, and subsequently buyers are treading cautiously when looking at Wellington assets. This has caused the Wellington market to remain fairly flat as current owners and tenants remain uncertain.

Limited data is available on seismic issues such as tenants’ understanding of industry standards and if they were willing to pay more for the benefit of a seismically strengthened building.

CBRE Ltd & CBRE (Agency) researchers say seismic performance is the number one nationwide commercial and industrial property issue impacting on owners, occupiers, the construction industry, government authorities and the

finance/insurance sector. It is leading to concerns of functional obsolescence for a significant part of the building stock, restricting availability and choice for occupiers while creating significant compliance issues and costs for owners.

More regional issues for Auckland include land availability for large industrial occupiers and the land use and regulatory impacts of the Spatial and Unitary Plans.

In Wellington, apart from earthquake issues, a stagnating regional economy

Occupier demand has been positive in Auckland, Christchurch and more dynamic provincial areas such as Hamilton... combined with contracting government space requirements is creating a challenging environment for building owners.

In Christchurch, the potentially limited size of occupier demand for the planned new central business district (CBD) is one of the bigger challenges facing the rebuild.

CBRE Ltd & CBRE says...

Prices/rents and valuations Pricing has been recovering during the past year in most property sectors. Lower

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quality earthquake prone Wellington buildings are the notable exception to this trend. In some other sectors, prices are approaching 2007 market peak levels although in most cases they remain 10%20% below these peaks.

Recently, lower yields have contributed more than rental growth to value appreciation but both have been exerting a positive influence on values.

Tenant interest/vacancies There are strong regional variations reflecting relative economic trends.

As such, occupier demand has been positive in Auckland, Christchurch and more dynamic provincial areas such as Hamilton, but lacking in Wellington.

New supply has been subdued, which has resulted in falling vacancies in the positive demand regions but was unable to prevent increasing vacancies in the demand negative regions/markets.

We expect that Auckland vacancies will recover to long run average levels within the next 18-24 months. In some sectors occupiers face emerging shortages of readily available space, which will drive the development market into 2014 and beyond.

Investor interest The investment market is buoyant from both investors and owner occupiers. The second half of 2012 has experienced a significant uplift in investment activity to levels that historically were only exceeded during the market peak of 2007. This has

www.acepay.co.nz

News

...the commercial property market has improved over the past 12 months with all sectors seeing growth.

continued into 2013 and we see no short term change to this trend.

Low interest rates, availability of debt funding and relatively attractive returns from property, in combination with investor confidence that the markets are in recovery, are the main investment market driving forces that will continue to prevail for the foreseeable future.

World trends Asia’s recovery has been the most pronounced but many US markets are now also improving in terms of demand and vacancy, although rents remain largely flat.

Europe is lagging but EU’s GDP growth is expected to slowly improve over the course of the year and into 2014, as austerity measures ease, market reforms kick in and global economic activity picks up.

While the occupier sector has been patchy, the investment market has been strong globally as a weight of capital has been chasing prime property providing occupational certainty through long term leases to blue chip occupiers.

Jones Lang LaSalle says...

NZ trends After a period of consolidation post the global financial crisis, the commercial property market has improved over the past 12 months with all sectors seeing growth.

Retail, office and industrial markets have benefited from not only better economic data but also higher business confidence. This increased sentiment translated into action and in 2012 total sales volumes increased 11.5% from 2011 for all types of commercial property.

With this increased confidence, a clear trend for prime assets has emerged as investors secured quality assets in anticipation of increasingly favourable market conditions.

Retail in demand The retail market saw a significant jump in interest over the past year as larger, prime retail assets were released into the market.

Motivated largely by increased liquidity,

it was a significant year for retail centre sales with a combined total of $405 million of assets transacted in 2012.

Westfield Downtown, being the largest sale for 2012, was sold for $90m at an initial yield of 7.6% to Precinct Properties.

Prime retail yields have continued to firm as investors gravitate towards strategically placed assets with low levels of volatility and a diverse tenant base.

Currently the prime central business district (CBD) yield sits at 7% but is expected to continue to decline as the competition for key retail hotspots heightens and retail spending improves.

Secondary suburban assets have also had some attention over 2012-2013 and their yields have headed marginally lower to 9.4%.

This demand along with shortening supply should positively influence rents going forward, especially for key prime assets.

Industrial on the up Like retail, the industrial sector also experienced a solid rise in transaction levels over 2012, up 63% compared to 2011.

The industrial market was heavily back ended in 2012 as the last half saw over $205m worth of industrial transactions completed, representing more than a 140% increase on the first six months of 2011.

Industrial assets continue to appeal to a variety of buyers due to their low level of volatility, generally single tenant profile with lower levels of maintenance as compared to office assets.

Yields have contracted for both prime and secondary assets, with prime yield declining to 8.1% for the first quarter of 2013 while secondary yield fell slightly to 9.4%.Vacancy levels for the Auckland region have moved lower to 5% indicating occupier demand is

continuing to strengthen and the available stock is being occupied.

Rents for industrial assets have remained constant for some time but are expected to move upward as the supply line for new industrial developments remains thin.

Office supply neutral The office sector in Auckland has experienced a healthy increase in demand in 2012 and into 2013. Several large transactions have taken place in that time, including 1 Queen Street, 135 Albert Street and Manson TLCMs GHD Building on Napier Street. Transaction levels remained steady over 2012 and have increased into 2013.

A noticeable trend has arisen in the Auckland office market, with quality office space becoming the main focus of many occupiers, which has led tenants to gravitate from the fringe and suburban areas to prime locations including the CBD core and Viaduct area.

While prime vacancy rates continue their downward trend moving to 7.1%, secondary assets have moved higher reaching 13.4% for the last half of 2012.

Strong demand saw prime yields sharply contract over 2012 and have continued to move downward in 2013, and currently sit at 7.9%. This demand has overflowed into the secondary market with yields following the prime series downward, 50 basis points to around 9.5%. With net supply experiencing only a moderate lift over 2012, supply remains a key issue for the office market. The supply pipeline remains fairly neutral for the next while and we should see further rent increases along with falling rental incentives.

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16

Words of wisdom abound at exporters’ conference I

t’s a good time to be a Kiwi exporter, because people want to work with us and our economy is doing well relatively speaking, said Business New Zealand chief executive Phil O’Reilly in opening this year’s Go Global conference in Auckland.

One of the first speakers in a day of inspiring and informative presentations was Vaughan Rowsell, chief executive of Vend that designs and develops point-ofsale and inventory software for retail sales transactions, said in three years since starting up his company staff has grown from just him to 40 and he hopes to add another 100 next year. It won a high tech award last year and is a finalist in this year’s Air New Zealand Cargo ExportNZ Auckland Awards – for which winners are announced on June 21 (see page 24).

Vend’s secret weapons include exporting via the internet. When the final product is ready to sell, there’re no shipping delays or costs: it’s instant. So already it is selling to about 100 countries.

He advises: • Take a world view; • New Zealand has an airline, so use it – you need to be on the ground talking to people; • We are closer to other countries than you think; • Don’t over-think – just do it.

Vend did a lot of online marketing using Adwords and experimenting with keywords to track where the interest came from, where the markets were.

Then Mr Rowsell put people on the ground to talk to retailer partners.

He has raised investment in several batches and recently, surprisingly, from

Germany and other places.

Key to Vend’s success, he says, is its culture of having fun, including permitting swearing and dressing as zombies at work on occasion. The sense of fun hopefully filters through all its activities including branding to appeal to clients. “Half the battle is won if retailers like this,” Mr Rowsell says.

The guiding Ps of doing business Re-branding and upgrading interiors of businesses around the world are the specialty of Redesign Group, founded and owned by Jo Pennycuick. The company has offices in four countries.

She shared her guiding points of doing business: • Presence – be in the market to maintain relationships; set up a company there.

• People – people with passion and drive for your services and products are key; train and support them; move up the good people.

• Partnerships • Professionalism – establish a trustworthy reputation in the market.

• Perseverance – it takes time to meet people, sign contracts and get projects across the line.

• Patience – it can take 12 months [or more] to get a contract.

• Passion – project the love of what you do into the market.

• Pricing – a high level of negotiation occurs, in some markets more than others, so be careful to price to allow for a profit.

• Possible – be positive.

Furry brown fruit

Vaughan Rowsell

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Half of Zespri’s kiwifruit business - 130 of its people - is offshore. So the key point its chief executive Lain Jager wanted to make was that New Zealand Trade and Enterprise was really useful in helping companies to enter markets.

Zespri International Ltd has used it heavily.

Zespri’s owners are about 2700 kiwifruit producers in New Zealand and they also source fruit offshore.

Two key drivers for the business have been deciding where growth was going to come from and how Zespri was going to

Lain Jager

grow its competitive advantage to maintain and grow its margin.

Mr Jager said developing markets takes time and resources so prioritising was important.

Bringing new products to market such as Kiwifruit Gold is exciting for retail partners and marketing now emphasises health, not just food.

Lacking proximity to markets and low cost production requires thinking beyond seasonal commodity provision. Zespri gets a premium price in the kiwifruit market for its superior products by adding value through the supply chain all year round.

Market reflections Latin America, China, the Middle East and ASEAN countries hold plentiful opportunities for New Zealand exporters, said Peter Chrisp, chief executive of New Zealand Trade and Enterprise (NZTE), the Government’s international business development agency.

In contrast, the US is a difficult market (although San Francisco loves us) and holding onto one’s own brand is a challenge in Europe. For example, house brands make up 85 per cent of retail sales in Germany and 40 per cent in the UK. But Australia was still our best first market often.

With strong dollar pressure and without scale, international business is more risky.

New models of doing business are needed, such as being design led or premium.

Some companies are banding together as a brand to cooperate to market and in the supply chain, though otherwise were competitors. Examples are BodyGuard Wood Products and the Security Technology Alliance.

News

By Deborah Lawson

Momentum rises for T maki community regeneration programme The T maki Redevelopment Company (TRC), will in midJune release a draft strategic planning framework and invite feedback from the public and key stakeholder groups about its proposed projects and initiatives.

T

he objective is to set in train a regeneration programme in T maki, Auckland, over the next 20-25 years.

The regeneration planned for T maki is a comprehensive and integrated vision to address the challenges of the area by providing lasting improvement in the economic, physical, social and environmental condition of the area.

The TRC is New Zealand’s first urban regeneration company of its kind, and the programme for regeneration in T maki will cover the suburbs of Point England, Glen Innes and Panmure.

The T maki area has a range of natural advantages including its proximity to the city centre and other employment centres, green spaces and a location on a key transport corridor.

But it faces a number of significant challenges. These include exceptionally low household incomes, a high rate of unemployment and high crime rates.

T maki is a growth area for Auckland and its future prosperity will have a positive flow-on effect for the rest of the country.

The regeneration programme will deliver extensive and life-changing opportunities for local residents and businesses over the next 20-25 years.

At the same time, we need to ensure that we provide tangible outcomes for its residents over the next 3, 5, and 10 years.

According to the TRC Heads of Agreement between its shareholders (59% Crown, 41% Auckland Council), the Company is expected to lead and integrate a programme of activities in partnership with public, private and NGO entities to regenerate T maki; procure and/or influence physical and spatial development (housing,

infrastructure and amenities); and facilitate alignment and the design and delivery of social and economic projects to lift prosperity in the area.

The community has already helped to develop this vision. Once shareholders have endorsed the document, we will be pleased to present a draft strategic framework to the public and businesses

The TRC is New Zealand’s first urban regeneration company of its kind, owned by the Crown and Auckland Council.

on how regeneration can deliver on that vision, then work with the community and businesses to identify and prioritise regeneration activities for the short, medium and long term.

Improving opportunities As a Crown and Council-owned company with broad socio-economic objectives, TRC is structured to effectively partner with the private sector.

This means the T maki area will increase in value as an attractive proposition to long-term investment partners with an interest in resilient and prosperous communities.

The ‘draft Strategic Framework’ outlines a co-ordinated approach to create measurable improvement across four key components over time: • a social component to support T maki residents and their families in getting the skills, knowledge and employment

opportunities they need; an economic component to strengthen the local economy, creating new jobs and business opportunities; • a housing component to optimise Crown and Council land use and existing housing stock, including progressing private housing development and delivering better social housing options in T maki.

• a spatial component to create safe and connected neighbourhoods and spaces that support the social and economic development of T maki and its community.

It is important we continue to listen, engage and work together with the local community, businesses and public sector entities. Regeneration takes a ‘whole of community’ approach. We need partners and friends to help the Crown and Council achieve its objectives for this community.

One of the aims is to create more affordable housing for more people in the area and we intend working with public and private partners, including Housing New Zealand, to make sure that social housing is delivered in a way that stimulates the supply of new, decent, market-based housing.

The TRC Office is based in Apirana Avenue, Glen Innes.

Visit www.tamakitransformation.co.nz •

About the programme Since establishment the TRC appointed chief executive, Debra Lawson, who has worked as a chief executive in organisations delivering affordable homes and social infrastructure in the UK and in publicprivate partnership initiatives, delivering large-scale and complex urban regeneration programmes in the diverse communities of South London.

In December 2012, Housing Minister Phil Heatley and Auckland Mayor Len Brown announced the appointment of a seven-member Board with a strong mix of community, urban development and business skills to lead the T maki Redevelopment Company.

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17

18

Learning

By Clive Lewis

Is selling your business the best option? Part III Clive Lewis describes how a thriving business named after its founder thrived when partially sold, in his third and final article on selling as an option in succession planning.

W

hile owners enjoy certain aspects of their business they don’t always enjoy the baggage and fire fighting that sometimes goes along with it.

A great option can be bringing in a manager who later can take up a minor shareholding and help you both run and build the business while taking cash off the table.

This way, the business is revitalised and becomes an on-going investment, generating growing shareholder wealth and allowing the owner to step back and enjoy the rewards of the work and value they have built.

Platform 1 works with business owners to help release them from day-to-day operations while not only maintaining but increasing their ongoing income.

Designer and business names the same As an example, a client company was a household name in New Zealand corporate design with the owner’s name synonymous with the business.

In the early 80s he had opened his doors without a single client; with just a vision of creating great design solutions.

During 25 years he had been responsible for the design and fit-out of many leading office premises. His creative approach was highly respected and his business was thriving.

The problem The owner was a natural entrepreneur.

He had identified international opportunities he wished to pursue.

However, he felt the company’s brand name was totally entwined with his creative input and that any possibility of pursuing other opportunities would most likely result in the demise of this very successful business.

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The two men worked closely together for several months, understanding systems, meeting clients, refining the business model ….

It is an accepted fact that businesses identified with the founder are the hardest to transition away from.

It is an accepted fact that businesses identified with the founder are the hardest to transition away from.

The opportunity An Advisory Platform leading to a business transition was implemented.

A potential general manager was introduced to the company. This man had worked in the same sector

internationally and had recently moved to New Zealand. After working through the strategic goals and discussing the opportunity, there was a “meeting of the minds.”

The owner recognised that “handing over the reins” would open up opportunities he had not considered possible. The new GM was entrusted with the business and brand name, as well as an equity opportunity in the future.

The result The two men worked closely together for several months, understanding systems, meeting clients, refining the business model and going through the transition process supported by an advisor.

So successful was the transition that the owner moved to Europe to pursue other personal creative ambitions.

Back in New Zealand the company went from strength to strength. The new GM became a major shareholder and continues to grow the business, providing the owner with on-going income and dividends while the latter is “living his dream.”

For further information please call 0508 752836 or visit us at www. platform1.co.nz

Advice

Mindset makes the difference for safety at work

A

business cannot hope to achieve ‘zero harm’ or a completely safe workplace unless it first embraces a mind-set or culture that respects all individuals, said Dr Hillary Bennett, director of Leading Safety, at EMA’s 17th Annual Occupational Health and Safety Conference.

Her Auckland-based consultancy specialises in safety leadership, safety culture, human factors, and workplace health and safety (H&S).

She said too many businesses focussed on human failure, and the human as villain instead of seeing the human as an adaptive person albeit with imperfections, operating in a system and who often went in [to dangerous situations] and saved the day, as a hero.

“I’m asking you to put on a frame for success, not failure, in forming a healthy and safe workforce,” she said.

“Don’t just see the person as a human failure to be managed but someone to be respected and managed.

“Have the mindset to go out and find what saved the day today. Most of the time things go right but we focus on things that

go wrong. Notice the good and share these across the organisation.

“When things go wrong, take the viewpoint we want to learn from this.

Review material available and interview people about what makes a difference here.”

In occupational health and safety people often focus on disasters, eg, Chernobyl, BP Texas, Deep Horizon, and closer to home, Pike River.

Dr Bennett said success happens by design, and the construction of the London 2012 Olympic Park provides the opportunity to learn from success involving more than 46,000 workers with no one hurt or killed, not by chance but by design.

Key success factors included: Leadership • The Olympic Delivery Authority (ODA) led from the top and by example, set standards, visibly engaged with the workforce to direct, motivate and change behaviour; • Strong focus on health as well as safety;

•

Supervisors’ technical and people competence was developed, to understand and influence behaviour.

Planning • Time given to plan ahead and consider risks and how to manage them.

• Working practices adapted to manage identified risks.

Communication • Consistent messages relayed; • Many two-way dialogue opportunities; • Short daily activity briefings before work started; • Visual standards illustrating H&S ‘dos and don’ts’.

“Of all the defining characteristics of a relationship, the most critical were respect and clarity. They were found to underpin everything, were not costly or difficult to achieve, but to have a significant impact on safety culture and standards.

“Safety needs both a system and a people focus,” she said.

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19

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Learning

Generation gaps not that big W

e are often told the new generation of people coming into the workforce – the Millennials - are a group managers need to beware of, that their expectations are so different from previous generations that they are going to shake up the way we work and manage people.

Are Millennials so different, or is it just youthful fervour that would have been the same for young people 20, 40 or 60 years ago?

Three distinct generations are defined in popular literature: Baby Boomers (born 1943-1960), Gen X (1961-1981) and Millennials – also known as Gen Y (19822003). Many stereotypes describe people who fit these categories: - Baby Boomers are supposed to be workaholics, loyal to the organisation, have greater acceptance of authority, and are more optimistic - Gen Xs apparently expect worklife balance and flexibility, as well as being rewarded for productivity

rather than tenure - Millennials are rarely satisfied and expect to get recognition for every accomplishment, feel entitled to promotion and fulfilling work without doing the hard yards, are comfortable with change and happy to change jobs to get what they want So how do Baby Boomer and Gen X Managers cope with this new group of “disgruntled, unruly youth” who believe they are entitled to get what they want when they want it, and if you can’t provide it they will find someone who will?

Research by the Kenexa High Performance Institute (KHPI) has uncovered some surprising answers - any “differences” between generations are very small, and in most cases don’t mean much in day to day working life.

With more than 25 years experience the KHPI WorkTrends™ survey overwhelmingly cited more similarities than

differences between generations though there does appear to be some difference – if slight – in a few important factors.

In particular, Millennials, are found to be on the whole more positive about the recognition they get for their work, their sense of job security, and adequate opportunities for growth and their organisation, when compared to Gen Xs and Baby Boomers. Quite a different story to what so much of the popular literature tells us.

Organisations should nevertheless make the effort to ensure they are engaging with all of their employees.

This year, EMA is proud to be sponsoring Kenexa’s 14th annual Best Workplaces Survey, run in association with The New Zealand Herald and also supported by Kiwibank and MBIE. Visit www.bestworkplaces.co.nz to register now or for more information.

RegisteR now Survey Available 1 May to 30 August 2013 www.bestworkplaces.co.nz (09) 378 2003

Brought to you by:

Proudly supported by:

In association with: © 2013 Kenexa Corporation

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EMA MEMBER PROUD MOMENTS NOTICEBOARD

23

Home sweet home A front door key means more than just a piece of hardware to many Kiwis. It represents a new future, improved health outcomes for their children and themselves, it’s safety and security, and new hope.

When Veasna and Sitheoeun and their two boys arrived in New Zealand from Cambodia recently, Habitat for Humanity NZ provided them with safe, affordable shelter. Last month they received the keys to their new home. ”It’s not a give-away,” says Habitat chief executive Claire Szarbo. “Veasna and Sitheoeun put 500 hours of sweat equity into the building of their home.

“The house was also built with volunteers from the Porirua community, with building products discounted by local suppliers and longtime supporters of Habitat - Dulux paints and Fujitsu heat pumps providing their products at no cost.

“Eventually Veasna and Sitheoeun will own their own home.”

Habitat not only provides homes with its hand-up (not hand-out) philosophy, but also repairs older homes under its programme, ‘A Brush with Kindness’.

Teams of Kiwis go overseas with Habitat’s ‘Global Village’ programme building homes in countries like Nepal, Sri Lanka, Samoa and Cambodia.

Habitat for Humanity NZ has been part of the housing solution for 20 years. It seeks the support of volunteers, donations of second hand goods for its ReStores, and financial supporters. Businesses that want to give back to their communities are welcome to get in touch.

Call 0800 44 22 48 or visit www.habitat.org.nz

Veasna and Sithoeun welcome home.

Villa Maria founder inducted to NZ Business Hall of Fame Villa Maria owner and founder Sir George Fistonich (pictured) is to be inducted into the NZ Business Hall of fame.

The Trust established the Fairfax Media New Zealand Business Hall of Fame to recognise and celebrate individuals who have made a significant contribution to the economic and social development of New Zealand.

Having celebrated Villa Maria’s 50th anniversary last year and spending the year promoting premium New Zealand wine around the globe, Sir George said he was honoured to have been selected to join this group of prestigious New Zealand business personalities.

“I must give thanks to the Young Enterprise Trust and the work they do to inspire and encourage young New Zealanders to shoot for the top. The more we can do to help these future business leaders along the way the better,” he said.

BusinessPlus – Exclusive news, advice, learning and networking

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EMA MEMBER PROUD MOMENTS NOTICEBOARD

Rinnai blazing through Australia The Australian demand for New Zealand-made, energy efficient gas heating has seen Auckland manufacturer Rinnai grow export earnings to this market by 51% over the past two years.

The company’s general manager for sales and marketing, Mark McCutcheon, says Rinnai is now shipping more than five containers monthly to Australia.

This has contributed to 10 new jobs being created in manufacturing at its Auckland headquarters.

The growth is the result of significantly upgrading the range of fireplaces offered in the Rinnai range to meet core customer requirements, he says.

“We have conducted market research to help identify what our customers truly value in a fireplace.This has allowed the team to focus on delivering these few important attributes across the new product range,” says Mr McCutcheon.

Vying for gold

Forfurther details please contact richelle@exportnewzealand.co.nz

BusinessPlus – Exclusive news, advice, learning and networking

Finalists in the Air New Zealand Cargo Export NZ Awards Auckland 2013 are: Westpac Exporter of the Year (total sales over $25 million) - Tru-Test Group - New Image Group - Compac Sorting Equipment - Southern Spars QBE Insurance Exporter of the Year (total sales under $25 million) - Best Bars - Events Clothing Company - The International Travel College of New Zealand - Merlot Aero BDO Food & Beverage Exporter of the Year - EasiYo Products - Greenshell New Zealand - Invivo Wines New Zealand - Jack Link’s NZ TNT Express Emerging Exporter of the Year - SnapComms - Kagi Jewellery - Moa Brewing Company - Straker Translations Baldwins Intellectual Property Commercialisation of Innovation for Export - Greenshell New Zealand (see above) - Phitek Systems - Southern Spars (see above) Endace Tech StartUp of the Year - FuseLMS - TranscribeMe - Vend

IN OUR REGULAR SNAPSHOTS OF MEMBER COMPANIES WE DESCRIBE THE BUSINESS OF HUNTER FILLING SYSTEMS IN HAMILTON – BY MARY MACKINVEN

There’s always a way: Machinery manufacturer C

ustom machinery manufacturer Hunter Filling Systems celebrates two major milestones this month: It moves into its first ever purpose-built premises, and they celebrate 50 years in business.

Hunter Filling Systems is doing well in export as well as on the domestic market with each segment contributing equally. Export orders have been higher lately, mostly from the USA, Australia and South East Asia.

Managing director Niall Fuller says the increased export work is a result of attending trade shows and picking up leads from big multi nationals. Hunter customers include Wrigley, Mars, 3M, Golden State Foods, Fonterra, Heinz-Watties and Cerebos.

One Mexican client is having Fuller make a two by six-double-head filling machine to fill and seal double-pocket snack packs with chilli flavoured toffee mix in one pocket and a gum ball in the other.

Niall co-owns the company with engineering manager Neil McConnell.

They employ 15 staff including three apprentices.

Hunter Filling Systems work in progress are to containerise products as diverse as a liqueur, an Indian fruit drink, an alcoholic mix, agricultural fertilizer, household chemicals, meat pie fillings, honey, marinades and an automotive panel filler (bog).

“These companies choose us because we have been in the industry for 50 years, exporting for 30 to 40 years, and due to our perseverance and the local knowledge of our representation where we get our foot in the door compared with the competition.

“Also we tailor make machines. The Mexican company came to us because American companies told them ‘take or leave our standard machine’, and we could tailor make for them.

“We design and build the machine but sometimes a machine might be a variation on others we have made.”

Hunter Filling Systems also recently made a machine to fill ice cube trays with a brine shrimp to be sold as frozen fish food for consumers’ tropical fish tanks, a job other companies wouldn’t touch because it was too hard.

“We get the curly ones, but they can

"The Mexican company came to us because American companies told them ‘take or leave our standard machine’, and we could tailor make for them."

be financially rewarding. And we like to think outside the square and never say ‘never’. It keeps us interested and excited,” Fuller says.

Hunter Filling Systems is also a compelling environment for apprentices, he believes, with its variety of engineering disciplines including welding, fitting and turning.When the newest apprentice has done one year, a new apprentice is taken on.

During the GFC slowdown the company built up stock levels of partially built machines to enable it to deliver orders quickly when conditions picked up and to retain staff. No redundancies were necessary.

Niall says it helps a lot to be out and seen at trade shows. “You really have to travel to get business.You can’t do it all by phone; you have to be shaking hands and looking people in the eye to give them confidence to go with your company.”

The move into the new premises meant planning for eco-friendly features, lighting and heating efficiency and communications technology. Hunter will have high speed fibre to enhance video conferencing with international agents and getting products on show.

Thanks from EMA Hunter Filling Systems has been a member of EMA since start up and Niall has generously been a member of the EMA Waikato executive committee for eight years.

He says EMA has helped his business through networking opportunities on leads and jobs. He values EMA’s help with staff issues and advocating for the interests of small to medium enterprises and international trade.

Hunter Filling Systems’ co-owners Niall Fuller (left) and Neil McConnell

BusinessPlus – Exclusive news, advice, learning and networking

25

Our family of partners includes

Being a member of New Zealand’s pre-eminent business association not only delivers vital support and advice to your business but also entitles you to an exclusive range of products and services.

Principal Partners

All EMA partners from Principal Sponsors through to Preferred Suppliers are engaged and ready to offer your business exclusive, value added benefits and discounts.

These offers are constantly evolving ensuring we can deliver the very best products and services available on the market.

To find out more about how your EMA membership entitles you to save significant dollars on your operational costs simply search keyword “rewards” on our website:

www.ema.co.nz Keep an eye out for new offers in your monthly Business Plus!

Free call on 0800 800 362

Visit us www.ema.co.nz

Preferred Suppliers

Winter Briefings Schedule 2013 FREE for all EMA members | To register call AdviceLine on 0800 300 362 or email AdviceLine@ema.co.nz

Waikato / BOP Day/Date

Time

Venue

Mon. 24th June

9.30am - 11.00am

Thames War Memorial Civic Centre, 200 Mary Street,

THAMES

Mon. 24th June

3.00pm - 4.30pm

Sebel Trinity Wharf, 51 Dive Crescent

TAURANGA

Tues. 25th June

9.30am - 11.00am

East Bay REAP (Upstairs), Reap House, 21 Pyne Street

WHAKATANE

Tues. 25th June

3.00pm - 4.30pm

Huka Falls Resort, Huka Falls Road

TAUPO

Weds. 26th June

9.30am -11.00am

The Holiday Inn, Corner Froude & Tyron Streets

ROTORUA

Weds. 26th June

1.30pm - 3.00pm

Central North Island Kindergarten Association, 6 Glenshea Street

PUTARURU

Weds. 26th June

5.00pm - 6.30pm

Waitomo Caves Hotel

OTOROHANGA

Thurs. 27th June

9.30am -11.00am

Claudelands Conference & Exhibition Centre, Brooklyn Road, Claudelands

HAMILTON

Day/Date

Time

Venue

Thurs. 27th June

2.30pm - 4.00pm

Bruce Pulman Park, Teamsports Centre, Walters Road

Friday 28th June

2.00 - 3.00pm

Webinar

Mon. 1st July

9.30am - 11.00am

North Harbour Stadium, ASB North, Gate A, Carpark A, Stadium Drive

ALBANY

Mon. 1st July

3.00pm - 4.30pm

Bruce Mason Centre, 1 The Promenade

TAKAPUNA

Tues. 2nd July

9.30am - 11.00am

Crowne Plaza, 128 Albert Street

AUCKLAND CITY

Tues. 2nd July

2.00pm - 3.30pm

Waipuna Conference Centre, 58 Waipuna Road

MT WELLINGTON

Tues. 2nd July

4.00pm - 5.30pm

Waipuna Conference Centre, 58 Waipuna Road

MT WELLINGTON

Weds. 3rd July

9.30am - 11.00am

Counties Inn, Rata Lounge, 17 Paerata Road

PUKEKOHE

Weds. 3rd July

3.00pm - 4.30pm

Greyhound Function Centre, Manukau Sports Bowl, Te Irirangi Drive

MANUKAU

Thurs. 4th July

9.30am - 11.00am

Titirangi Golf Club, Links Road

NEW LYNN

Thurs. 4th July

2.00pm - 3.30pm

Ellerslie Events Centre, 80 Ascot Avenue

GREENLANE EAST

Thurs. 4th July

4.00pm - 5.30pm

Ellerslie Events Centre, 80 Ascot Avenue

GREENLANE EAST

Friday 5th July

9.30am - 11.00am

The Trusts Function Centre, 65-67 Central Park Drive

HENDERSON

Friday 5th July

3.00pm - 4.30pm

EMA Board Room, 159 Khyber Pass Road

GRAFTON

Mon. 8th July

7.30am - 9.00am

EMA Board Room, 159 Khyber Pass Road

GRAFTON

Mon. 8th July

11.00am - 12.30pm

Butterfly Creek, Tom Pearce Drive

MANGERE

Tues. 9th July

2:00pm - 3.00pm

Webinar

Day/Date

Time

Venue

Weds. 10th July

3.00pm - 4.30pm

The Northerner, Corner North Road & Kohuhu Street

KAITAIA

Thurs. 11th July

9.30am - 10.30am

Scenic Circle Bay of Islands, Seaview Road

PAIHIA

Thurs. 11th July

1:30pm - 3:00pm

Kingsgate Hotel Whangarei, 9 Riverside Drive

WHANGAREI

Auckland PAPAKURA

Northland

Out & About Focus On Breakfast: Auckland’s Economy, Auckland

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2

4

5

8

3

6

7

9

10

1 Stephanie Ferguson [Metcast Services] and Richard Poole [Greenmount East Tamaki Business Association] | 2 Merle Boniface [Diocesan School for Girls] and Patrick McVeigh [Auckland Tourism, Events and Economic Development] | 3 Michelle Visser [Beyond Services] and Andrew Steele [Genesis Energy] | 4 Johnathan James [Pharmacy Retailing] | 5 Justin Ng [Green Bay Pharmacy] and Ken Hickey [Hickeys Pharmacy] | 6 Grant Burney [KiwiRail] | 7 Roger Brantsma [Hilton Auckland] and Jeff Spearman [Westgate Pharmacy] | 8 Brendon Massey (Re/Max New Zealand Real Estate] and Roger Carson [EMA] | 9 Liza Viz [Beyond Services] | 10 Kevin Renwick [Pharmacy Retailing] and Kerry Oxenham [Leabank Pharmacy]

17th Annual Occupational Health and Safety Conference, Auckland (day 2)

1

2

3

1

4

5

6

1 Shayne Lyons [Waratah NZ] and Amanda Flavell [Tradestaff ] | 2 Kevin Honeybun [Auckland Transport] and Ben Isaac Cameron [Red Stag Timber] | 3 Shona Ripley [Chemcolour Industries] and Lucia Devoy [Navman Wireless NZ] | 4 John Jury [EMA], Kevin Third [Anglican Diocese of Auckland] and Patrick Seaman [EMA] | 5 Allan Meyers [Tatua Co-op Dairy Company] and Tom Hepi [CERA] | 6 Sande Jansen [KCE]

EMA Alert

JUNE

Health & Safety 17-18 Representative Training (Stage 2) Review and build on the skills, knowledge and competencies developed in Stage 1 Health & Safety Representative Training.

Health & Safety for Managers & Supervisors

19

Key Account Management

24-25

Learn how to take responsibility for managing and growing your key accounts for successful relationships.

Ensure your organisation meets its legal obligations surrounding workplace Health and Safety and supports the well-being of your employees.

Auckland | Deborah

Auckland | Craig

Tauranga | Craig

Leadership People Skills

26-27

Advancing your people skills and learning to foster an emotional connection with your team will greatly enhance your leadership prowess.

Auckland | Deborah

Inaugural 26-27 Business Owners and Operators Conference

Conference Contacts Karen Joe | 09 367 0959 | conferences@ema.co.nz Training Contacts Kevin Chambers | 09 367 0958 | kevin.chambers@ema.co.nz

Come and spend a day or two at this brand new conference for small to medium sized businesses.

Meet your contemporaries and build up your business resilience.

Craig Garner | 09 367 0907 | craig.garner@ema.co.nz Deborah Law-Carruthers | 09 367 0947 deborah.lawcarruthers@ema.co.nz Caryn Leitgeb | 07 839 2710 | caryn.leitgeb.@ema.co.nz

Auckland | Karen

Did you know, EMA Tailored Training can deliver a wide range of workshops fully customized to reflect your workplace‌ at your workplace?

JULY

Communicating With Your Customers

Contact Rhonda Spence rhonda.spence@ema.co.nz Mobile 021 664 321

Team Leader 10 Toolbox Facilitating Your Team

1

Develop a communication style that will help you form enduring customer relationships and pave the way for career success.

Mental 2 Resilience Reducing Stress & Building Mental Strength

Learn the proven techniques for decreasing your stress and enhancing your ability to cope with tough situations.

Auckland | Deborah

Managing Difficult & Disruptive People

5

Learn how you can appropriately manage difficult and destructive people in the workplace without losing your cool.

Hamilton | Deborah

Auckland | Deborah

Health & Safety 11-12 Representative Training (Stage 3)

Learn to co-ordinate different team dynamics, lead meetings and make the most of each of your team member’s abilities.

Increase knowledge, skills and confidence in your role as a Health and Safety Representative.

Auckland | Deborah

Hamilton | Craig

Procedural 15 Fairness & the Disciplinary Process

Emotional Intelligence

17

Developing your emotional intelligence skills will allow you to better understand and motivate your staff.

Auckland | Deborah

Learn to confidently pursue the correct approach to all stages of the disciplinary process - from initial warnings through to termination of employment.

Whangarei | Craig

www.ema.co.nz | learn@ema.co.nz

Telecom Business Hubs are…

Local, just like you It is our job to understand your business and how we can tailor the right telecommunications tools to help you succeed.

Our advice is FREE and our services include: • One-to-one conversations at your premises, at a time that’s convenient for you • Help selecting the right landline, mobile and online data backup solutions • Regular business communication health checks to make sure you are always on the right plan

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0800 BUS HUB (287 482)