EMA Business Plus December 2012 by mediaweb

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Publicatio 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

Picking tea in the Waikato

In this issue: • • • •

Office Christmas parties! What to watch out for What to do if someone doesn’t come back from their holidays Employment law changes given a tick Do you know how your staff will react to pressure?

Issue 99 - December 2012

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Contents 1

Business Plus 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

mob 027 203 0694 mob 021 686 621

Bay of Plenty Terry Arnold 07 575 8401

mob 021 662 656

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

Business Plus Editor Gilbert Peterson Ph: 09 367 0916 gilbert.peterson@ema.co.nz Writer Mary MacKinven mary.mackinven@ema.co.nz Published by Mediaweb Designer Bex Mikaere Advertising Sales Colin Gestro (09) 444 9158 colin@affinityads.com ISSN No. 1176-4953

On the cover... For a tale of tenacity see p20: The Zealong story.

Advocacy 02 EMA: advocacy at work 03 City rail link a must have for Auckland and the country With EMA CEO Kim Campbell

16 The rise and rise of insurance costs on commercial buildings from Phil O’Reilly CEO BusinessNZ

News

04 Innovest, a new way to promote inbound investment 05 General approval of employment law changes, except for Part 6A 06 Wage and salary survey breaks new ground for response speed & agility

06 EMA members cut energy bills by $1.26 million 07 EMA boosts support for Waikato 19

Catching up with Australia’s 8 ball?

New Fiji Budget cuts company tax rate

Taking on the tea world, one cup at a time

Member Profile: Plastic anything designed and made in New Zealand

24 Proud Moments - The Pallet Company - EasiYo - Lowndes Associates

25 Proud Moments - Golem: Auckland filmmaker

Advice 08 How we can manage our Christmas stress 08 Wishing you a financially literate Christmas 09 Office Christmas parties! 11 Is there a psychopath lurking somewhere in your workplace? 12

What happens when someone doesn’t come back from their holidays? - Employment Chat

14 Under pressure? How will your staff react? 27

YOUR COMPLETE CHRISTMAS & NEW YEAR PUBLIC HOLIDAYS GUIDE

28 29 Our Vision. Your Success

2 Advocacy

EMA: advocacy at work Brazil, naturally

EMA’s Garth Wyllie (right) talks with the Australian and South African heads of delegation at the ISO meeting in Brazil

EMA executive officer Garth Wyllie represented New Zealand at ISO (International Standards Organisation) meetings in Brazil on definitions of natural ingredients and claims in relation to toiletries, cosmetics and sunscreens last month. He is pictured with Australian head of delegation John Stanton (centre) and the South African head of delegation Jill Gardner (left).

Employment law update from Government EMA held a sold-out business lunch in Auckland where Auckland Central MP, Nikki Kaye, presented an update on employment law on behalf of the new Acting Minister of Labour, Chris Finlayson. Mr Finlayson last month replaced Kate Wilkinson who resigned from the portfolio in the wake of the Pike River Royal Commission of Inquiry. (see article on page 5).

Managing environmental impacts and consents need sorting A group of EMA board members and managers met with Amy Adams, the Minister for the Environment and Minister for Communications Amy Adams and Technology, for a wide-ranging discussion on the Resource Management Act (RMA). The Minister is about to present in Parliament a bill to change the RMA Business Plus – Exclusive news, advice, learning and networking

with a further discussion paper expected in March next year. EMA believes the way the Act is implemented is a major impediment to business and economic growth. The Minister said the bill coming before Christmas will provide for the Auckland Unitary Plan (see last month’s BusinessPlus), and for direct referrals to the Environment Court, and ensure a better response by councils regarding a project’s economic impacts. The second bill planned is to be more wide ranging. It will, among other things require councils to pre-zone land after consultation with interested groups, cap fees to consent applicants and allow for central government intervention should processes go awry. A discussion paper on this is expected by next March with the resulting bill in the house in June.

TPP updated New Zealand’s lead negotiator for the Trans Pacific Partnership Free Trade Agreement (TPP), David Walker, presented an update on negotiations at EMA’s Trade and Foreign Policy Committee meeting on November 22nd. The next round of TTP negotiations are taking place in Auckland in the first week of this month. Committee executive officer Garth Wyllie said with the re-election of President Obama there are no likely hold ups from the US in progressing the TPP. However a number of add ons have been proposed for inclusion in the TPP by US industry groups.

Submissions span consumer law, mining, transport and welfare EMA has contributed to the following BusinessNZ submissions: • To the Social Services Select Committee on the Social Security (Benefit Categories and Work Focus) Amendment Bill • To the Local Government and Environment Select Committee on the Crown Minerals (Permitting and Crown Land) Bill • To the Ministry of Transport on the Vehicle Licensing Reform Discussion Document

• To the Commerce Committee on the Commerce (Cartels and other matters) Amendment Bill • To the Commerce Committee on the inclusion of unfair contract terms in Consumer Law Reform Bill: as reported from the Commerce Committee • To the Accident Compensation Corporation on the 2013/14 Levy Consultation documents • To the Ministry of Health re the Proposal to introduce plain packaging of tobacco products in NZ.

Ongoing campaigns EMA also lodged a submission with the Electricity Authority, seeking an extension of time for submissions on its Transmission Pricing Methodology Consultation paper. EMA has asked the Electricity Authority to explain and delay consultation deadlines on changes it plans to the way consumers are to be charged for the transmission of electricity over the national grid. Their “rebalancing” proposal may substantially increase the cost of electricity for North Island consumers, particularly those in the north, while reducing the cost for South Island consumers. The proposal is not well supported with data on its likely impact, and the consultation period is far too short for such an important and complex matter.

Auckland transport discussion

Martin Matthews

EMA held a business lunch meeting with Martin Matthews, CEO of the Ministry of Transport for an update on Auckland transport issues.

Public policy EMA held a business lunch with public policy lawyer Mai Chen from law firm Chen and Palmer.

Advocacy 3

By Kim Campbell, Chief Executive, EMA

City rail link a must have for Auckland and the country W

e all know Auckland’s transport system is overburdened and inefficient, mainly from years of under investment in both roads and public Kim Campbell transport. Better bus services would certainly help, though the city’s CBD roads are already under pressure, just as they are in many cities overseas, including London where buses clog many inner city streets. A lot more buses is not the answer. But public transport does need a circuit breaker. That’s where Auckland Mayor Len Brown’s pet project, the Central Rail Link comes in; it’s an important part of Auckland’s infrastructure jigsaw. The logic for building the rail link as fast as possible is overwhelming; 64 per cent of those in a recent poll agreed. This is not to discount critical road transport infrastructure, in particular the Western Ring Route, and the eastern transport corridor (AMETI) with an eastwest freight and distribution ‘ladder’ cross linked to it. The three projects are listed in the Auckland Plan for completion in five to eight years. The funding for the WRR is in place and construction has just started on it after 10 years of planning! The other two projects won’t happen faster than that either without a reversal in our attitudes and approach to our planning and consents process. These projects don’t need any further justification so we should just apply urgency to their design and build, along with dollops of common sense. But Auckland does need to present the case to the rest of New Zealand for them. That is, the efficiency and productivity delivered in Auckland by these transport projects will significantly benefit the whole country. The rest of New Zealand may not be impressed, but it’s true nevertheless that Auckland is our only city of global scale and projected to grow at twice the rate as the rest of the country. The Auckland population will reach 2.5 million by 2040

“The Auckland population will reach 2.5 million by 2040 with 330,000 new houses needed... worth $165 billion. Another 600,000 jobs will be on offer paying between $5-6 billion in PAYE tax”

with 330,000 new houses needed, around 11,000 every year for the next 30 years. They will be worth $165 billion at present values, which on its own nearly doubles the country’s total present GDP. Another 600,000 jobs will be on offer for Aucklanders paying between $5-6 billion in PAYE tax via Wellington, plus the GST on what they spend. It’s gratifying to imagine the scale of the increased economic activity that these sorts of numbers will bring. So how will all these people get from their homes to work and back? The answer includes the whole range of housing and business developments in existing suburban and town centres served by the rail loop and the road developments underway. The price of the CRL at about $2 billion may seem substantial but is a relatively small proportion of the total

infrastructure investment needed for Auckland to service these extra people over the next 20–30 years. In all, some $30 billion is required. Converting Britomart from a deadend white elephant into a through way is a patently logical part of the solution. It will facilitate a frequent, reliable and efficient train service – every 10 minutes in peak hours - while opening central Auckland to urban regeneration and business development around the three new rail stations proposed (at Aotea, K Road and Mt Eden). The sooner the rail loop is connected up (at Mt Eden) the sooner the housing and commercial densification of central Auckland can be underway. At present Britomart can take only 18 trains an hour, but without the CRL Auckland’s bus system will be swamped by buses thronging our already overcrowded inner city streets as Auckland expands. The decision to build the CRL was really made 10 years ago when Britomart was built, as it was never a sound investment without the expectation of the rail system linking up farther along the track. Having lived and worked in bigger cities overseas I’ve seen firsthand the investments made to improve rail commuter services that not only achieve time savings in getting to and from the suburbs to inner city work, but also as they open up new business investment and employment opportunities around rail station precincts. If Auckland is to get close to unlocking the commercial potential of the CBD, and adjacent town centres served by rail, the CRL is the minimum requirement. I would go so far to say the CRL would make a critical point of difference for building the thriving city that worldscale businesses will want to locate and invest in. For Auckland to perform as New Zealand’s commercial and business capital, addressing the gaps in our incomplete and underperforming transport system deserves to be centre stage, and the focus of it must turn urgently to action.

Business Plus – Exclusive news, advice, learning and networking

4 News

Innovest, a new way to promote inbound investment I

f you are a small-medium Business Owner and you are looking for investors or commercial business partners then Innovest is a great opportunity for you. Innovest provides a forum for those businesses that have growth or exit ambitions to connect with over 150 Investors of capital, capability and channel into their business. As outlined in the briefing attachment there is a focus on software, niche manufacturing and valueadd food industries, but this does not mean companies from other industries are excluded. The cost of attendance is $1,000 for which you receive: ■ Tickets - two person tickets to Innovest ■ Meeting Space - a dedicated small meeting table to conduct 20 minute meetings with Investor Delegates ■ Catalogue - your business profile presented in the event catalogue to be sent out to Investor Delegates ■ Event App - 20 minute appointments to be made with attendees prior to the event using an event specific app ■ Speakers - attendance at the speaker series From the investor side of things there are indications of great support from the Venture Capital, Private Wealth and

Corporate investment communities. Registrations close on Friday 14th December at which time a company must submit their profile for the event catalogue. If you are serious about finding an investor or internationally oriented business partner then Innovest is the

place for you. Please go to www. innovestauckland.com to register and quote EMA as your Network Partner. More details are at: www.innovestauckland.com.

Innovest 2013 provides a forum of those businesses that have growth or exit ambitions to connect with Investors of capital, capability and channel into their business. Limited to 100 companies ranging from early-stage (6 – 20 employees) to more mature medium-sized businesses with up to $50 million revenue. There are three target business types: Early Stage – businesses whose core offer or technology has been developed and tested and now seeking partners to commercialise. Developing – innovative businesses that have a platform business in New Zealand and are looking to internationalise. Exit – successful, privately owned businesses who are seeking exit or succession partners. Innovest 2013 business owners are to be invited by Network Partners and tickets are only available through them.

Ban on the sale of unsafe ladders highlight penalties Consumer Affairs Minister Simon Bridges has announced a ban on multi-purpose ladders that do not meet Australia and New Zealand safety standards. The ban comes after an investigation by Consumer Affairs which found that multi-purpose ladders sold on Trade Me collapsed well below their advertised weight limit. “The metal in one of these ladders buckled and split, collapsing only seconds after a man climbed on it. The ladder was supposed to hold

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up to 150kg and the man was only 90kgs,” Mr Bridges says. “After receiving the complaint Consumer Affairs tested similar types of these ladders and found they all failed the loading requirements. “It is unacceptable that the public should be at significant risk of injury from multi-purpose ladders that do not meet Australian and New Zealand safety standards, which is why I have, after consideration, declared an Unsafe Goods Notice.” The Unsafe Goods Notice for Multi-purpose Ladders prohibits

the sale or supply of multi-purpose ladders which do not comply with the safety standard. The notice is issued under section 31 of the Fair Trading Act and will be enforced by the New Zealand Customs Service at the border and the Commerce Commission in the marketplace. Breaches of an unsafe goods notice attract penalties of up to $60,000 for an individual and up to $200,000 for a company. For more information go to www.consumeraffairs.govt.nz/news

News 5

General approval of employment law changes, except for Part 6A T

he Government’s proposal to repeal Part 6A of the Employment Relations Act for small enterprises but leave it in place for larger businesses, needs a rethink, says EMA. Businesses and EMA heard more about the proposed exclusion of Part 6A at EMA’s Employment Law Update lunch in Auckland on November 22nd. Auckland Central MP Nikki Kaye presented the update on behalf of the Acting Minister of Labour Chris Finlayson who replaced Kate Wilkinson when she resigned the portfolio. The proposal is to exempt cleaning and other similar industry SMEs from all provisions of Part 6A that apply to an incoming employer who takes over a new contract, such as taking on all remaining staff from an outgoing employer. EMA’s manager of employment services David Lowe said it would be a mistake to allow SMEs (businesses with fewer than 20 staff) to be excluded in the long term, as this would create unfairness between large and smaller businesses when tendering for a business. But should the provision be later extended to all businesses, in the way it was for the 90-day trials legislation, this would be more acceptable, he said. The EMA lunch update covered the upcoming employment law changes which are:

1. Collective bargaining Not all the detail has yet been released for the ERA changes, Ms Kaye said. But the proposal is to return to the original position in the ERA where the duty of good faith does not require the parties to conclude a collective agreement. The changes to collective bargaining will include: • Empowering the Employment Relations Authority to declare in certain circumstances that collective bargaining has ended. • Allowing employers to opt out of multi-employer bargaining. • Allowing for partial pay reductions in cases of partial strike action (which currently can only happen in lockouts and suspensions).

• Removing the 30-day rule that forces non-union members to take union terms and conditions for Nikki Kaye the first 30 days of their employment. • Changes around the disclosure of personal information, following Employment Court judgments involving Massey University.

2. Part 6A – restructuring Part 6A of the Employment Relations Act deals with cleaning, catering, orderly, and laundry services. Its objective is to provide continuity of employment for employees in specific industries when a contract changes hands. Government’s review of Part 6A found significant operational issues around transferring employees’ entitlements and information to a new employer. In addition, the review found that small and medium sized businesses faced greater proportional costs than larger businesses. For example, a husband and wife cleaning team who tender and win a small contract may currently be required to take on any staff doing the work under the previous contract owner. Changes to Part 6A include: • A requirement for the outgoing employer to forward employees’ information to the incoming employer, such as employment agreements, PAYE, wage and time or leave records. • A process to help employers agree how to apportion liabilities for accrued service-related entitlements of employees who are transferring. • A requirement that employees must decide to transfer to a new employer within five working days (or a longer timeframe if agreed between the outgoing and incoming employer). • SMEs (a quarter of those in affected industries) will be exempt from the provisions of Part 6A if

they are the incoming employer. • Additional penalties and compliance orders for non-compliance with Part 6A, and provision for litigation in the District Court.

3. Flexible work The ERA will be amended to allow all workers to ask for flexible work conditions from day one in a job. Currently only caregivers after six months in a job can do this. And they will be able to make the request an unlimited number of times in 12 months. Informal arrangements will be made possible between employers and employees. The changes reflect modern technology and modern families; 70% of employers engage in flexible work arrangements, Ms Kaye said.

4. Starting-out wage The Minimum Wage (Starting-out Wage) Amendment Bill provides for eligible 16-19year-olds to be paid no less than 80% of the minimum wage. Three groups will be eligible unless they are training or supervising others: a) 16 and 17 year-olds in their first six months of work with a new employer; b) 18 and 19 year-olds entering the workforce after more than six months on a benefit; c) 16 to 19 year-old workers in a recognised industry training course involving at least 40 credits a year. Those who are training or supervising other staff must be paid at least the adult minimum wage. The starting-out wage will be simple for employers to implement, and apply for six months after starting work with a new employer. The changes will be in a new Bill planned for introduction to Parliament before Christmas and to take effect mid2013. The Bill prescribing the use of the starting out wage is likely to be in force by April 1, Ms Kaye said. All the proposed laws will be open for public submissions during the Select Committee process.

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6 News

Wage and salary survey breaks new ground for response speed & agility E

MA’s new look national wage and salary survey will deliver faster results, and with a lot more flexibility, says David Lowe, EMA’s Employment Services Manager. The data in individual job positions will always be up to date, he said. The first run from the survey was due in participant’s inboxes on December 3rd, just two days from when the data it was based on was still being collected and analysed. Several hundred organisations have registered for survey reports. “We’re pretty excited by what the new survey will be able to deliver,” Mr Lowe said. “Within a day’s notice we will know the latest pay trends on all job types at any time.” At worst the wage data will only be

a week old as the new survey method works on the basis of constantly aggregating and updating information as it is entered. Furthermore, the benefits and conditions attached to a job can be made available now for just about any of the hundreds of positions in the survey. This means for example, that the survey can report on the proportion of retail workers at any level given a car as part of their remuneration package. Other queries available include how many people are paid by commission, or a salary, or are on an hourly rate, or by a combination. Reports can include how many get performance incentives, or production

bonuses, how much they are paid in penal rates, and whether they get a car park, along with the usual hours worked, leave entitlements, redundancy provisions, and whether or not their professional fees are paid by the employer. Who uses 90-day trial periods, allow flexible work hours and co-fund child care and training are other parameters fed into the mix. Organisations are categorised according to private or public companies, local government, not for profit, by region, by industry and by size of business in turnover. Any combination of any of the parameters can form the basis of a report on a job type, Mr Lowe said.

EMA members cut energy bills by $1.26 million EMA and Total Utilities Management Group have shaved a total of $1.26 million dollars off members’ power, gas and waste bills since the EMA bulk tender scheme was set up in 2010. TUMG has achieved the savings by bundling members’ utility supply needs and taking them to market in Requests For Proposals grouped by contract expiry date. The tenders give EMA members the opportunity to enhance their buying

power without compromising on service. “All I had to do was forward our most current account and TUMG took our requirements to all the major suppliers in the market,” said Ms Joanne Hurley from Van Lier Nurseries. “They came back with a one page summary and recommended the offer that best matched our needs. “Their analysts were excellent at

pointing out the little traps and conditions attached to each supplier’s offer – they even gave us advice on future pricing trends and contract terms. TUMG were very easy to deal with,” Ms Hurley said. TUMG will be managing bulk utilities tenders on behalf of members on a ‘no savings, no fee’ basis again in 2013. Go to EMA Rewards (www.ema. co.nz) or contact Richard Gardiner at TUMG on 09 576 2107 for more details.

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News 7

EMA boosts support for Waikato R

apid business expansion in the Waikato has led EMA to invest in a permanent new home in Hamilton, and to launch an export awards programme next year. The new office on the corner of Tristram and Collingwood Streets in Hamilton was officially opened last month with a ribbon-cutting and presentations by Sir William Gallagher, director of Gallagher Group and Kim Campbell, chief executive of EMA. Mr Campbell invited Waikato businesses to make the new premises their hub, their go-to place for skills development, employment and health and safety advice, export networking and other business information. The Waikato Export Awards are making a comeback next year to celebrate the achievements and courage of the region’s exporters. Entries are open, and will close on March 22nd, next year. The Export Award 2013 categories are: • The Gallagher Exporter of the Year Award • Emerging Exporter of the Year Award • Innovation in Export Award • The BNZ Service to Export Award Anyone can enter their own company or nominate another company they respect for making a mark in exporting. Finalists will be filmed for profiling at the Awards gala dinner where the winners will be announced in Hamilton on Friday, May 31, 2013. Export NZ Waikato and EMA Waikato chairman, Jack Ninnes said, “It’s not easy

dealing with customers in different cultures or doing business in countries with different languages, regulations and laws. “The Waikato Export Awards are to showcase the region’s export businesses that demonstrate their ability to operate Sir William Gallagher, Catherine Beard of ExportNZ and John Allen, CEO of the Ministry of Foreign Affairs and Trade, were guests of honour successfully in these difficult environments. nominee. Keep an eye on waikato. “Sometimes it can exportnz.org.nz for awards updates, be a trial to get paid on time or get paid entry information and more. at all. “Add to the mix the challenges New committee presented by New Zealand’s sheer distance from offshore markets and you can EMA Waikato has a newly elected imagine it takes skill, tenacity and courage committee for 2012-13, with chairman to succeed on the international stage. Jack Ninnes of WEL Networks “Exporters create new jobs and wealth continuing in the role. for New Zealanders while earning the New committee members are Simon foreign currency we urgently need to pay Graafhuis from Gallagher Group, Matt for our imports, and we want to salute Watts from the BNZ, Mark Whitworth from the Port of Tauranga and Roger them, and their employees and businesses. Wilson from PWC. “So, after several years’ break during the The following continue on the global economic crisis, we are thrilled to committee: announce we are running the Waikato • Niall Fuller, Hunter Filling Systems, Export Awards 2013 again next year,” Mr • Denise Tyrer-Harding, IPSPEC Ninnes said. NZ, For further information please contact • Rosemary Wyborn,Wintec, Lotta Bryant at the ExportNZ Waikato • John Harvey, Auto Body office on 07-839 2710 or email lotta@ Equipment and exportnz.org.nz to receive an awards • Chris Carmichael, Mainfreight entry pack or to have one sent to your

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8 Advice

How we can manage our Christmas stress D

espite being a time of goodwill and good cheer, for many of us Christmas brings its own set of stresses and high expectations. Expectations arise around spending time with family, spending money on presents and food, overindulging in alcohol and food, and more. Whether you look forward with excitement to the shopping and preparations or with dread at all the disruption and extra work and drain on your resources, Christmas is a festival which makes great demands on our physical and emotional energy. Routines are disrupted, diets forgotten and anxieties can build up on all levels. So how do we make it through unscathed, and also support those we work with, who will be experiencing their own sets of Christmas stresses?

Tips for coping with family stress •

Be realistic. If your family argues constantly, don’t expect it to stop for Christmas.

“Laughter is still the best way to beat stress but remember you are not responsible for making everyone happy!”

•

beat stress and change everyone’s mood from bad to good. Remember you are not responsible for making everyone happy!

If you are alone at Christmas and don’t want to be, consider getting involved in your community. Many organisations need volunteers and this is a great way to connect with others and keep busy, while helping others less fortunate at the same time.

Spotting stress signs • •

• •

Alcohol in the mix can add to family stress. Limit your alcohol intake and keep clear-headed. If you feel overwhelmed, try to find a quiet space away from everyone for a short period - even sitting in the bathroom can be a break, or take a short walk. Find some time for yourself every day. Get yourself into a quiet space and have some time to relax. Laughter is still the best way to

An employee whose work productivity or quality falls off may be reacting to stress. Taking time out to chat to your staff, taking regular breaks and getting some fresh air can all help in managing everyone’s stress levels. Adopting a ‘we’re all in this together’ approach can also help build a sense of being a team and reduce stress. And if all else fails take a deep breath and remember, this too shall pass! For more information and to find a counsellor, visit www.lifeline.org.nz

By Diana Crossan, Retirement Commissioner

Wishing you a financially literate Christmas I’m leaving after 10 years as Retirement Commissioner. For much of that time, I’ve been talking with many employers about financial literacy and I realise that one important topic I haven’t broached, is about staff redundancy.

know it’s a tough time for employers when they’re unable to renew a staff member’s contract, or have to cut staff numbers, especially when the people concerned are in financially vulnerable positions and have significant family commitments. Once again, it’s a salient reminder of the value of financial literacy in the workplace. If staff are better prepared financially – it may reduce some of the burden that they would otherwise face if job security is less certain. Business Plus – Exclusive news, advice, learning and networking

The Sorted website has some useful information about redundancy and what people can do if they are worried about job security. Diana Crossan You too can encourage staff to take some steps to help ease the financial pressure of redundancy – if they’re fearful that this will occur. These steps include getting to grips with their budget, and making sure they’re not living pay day to pay day, but are setting some savings aside. If they have debt, they ought to prioritise paying that off – focusing on the high interest debts first.

Ideally we should all have an emergency fund of up to three months’ worth of expenses saved up – and accessible – in the event of the unexpected.This is an ambitious target for many and may take years to achieve, but it’s a vital goal to cushion people when the unexpected occurs. On a brighter note, it’s the season of giving and many of us will be looking forward to reuniting with family and friends over the festive season. I hope you have a wonderful Christmas, and safe and happy holidays.

The Commission for Financial Literacy & Retirement Income is an autonomous Crown entity, and we provide free, independent and impartial information about money matters. Our vision is for all New Zealanders to be financially sorted.

Advice 9

By Erin Burke, Senior Solicitor, EMA Legal

Office Christmas parties! M

any employers are making plans for the traditional office Christmas party, and while they are a great way to thank employees for their hard work over the previous 12 months, they can also cause headaches that last well beyond the next day’s hangover. In particular, workplace tensions mixed with alcohol range from offensive behaviour that reflects badly on the company, unwanted sexual attention, and drink-driving convictions. Such actions can adversely impact an employee’s subsequent ability to carry out their duties, or have the potential to make post-party employee relationships uncomfortable, or even untenable. Employers are often left wondering whether acts which would be viewed as misconduct or serious misconduct during normal work hours can still be subject to disciplinary action if the behaviour occurs after hours and away from company premises. In the case of Smith v Christchurch Press Company Limited, a male employee invited a female employee to spend her lunch break with him. He did not inform her that he was taking her to lunch at his house. Once there, he made uninvited and unwelcome sexual advances towards her. The female employee complained to the employer and Mr Smith was dismissed. Although the incident took place during the lunch break and at Mr

Smith’s house, the Court of Appeal held that there were limited circumstances where the usual restrictions on intruding into Erin Burke an employee’s private life can be set aside if there is a clear relationship between the conduct and the employment. In this particular case,

“It was not so much a question of where the conduct occurs but rather its impact or potential impact on the employer. Therefore, any misconduct that occurs at a company function can potentially invite disciplinary action”

it was the detrimental impact on the employees’ working relationship that provided the nexus. In a nutshell, the Court stated it was not so much a question of where the conduct occurs but rather its impact or potential impact on the employer. Therefore, any misconduct that occurs at a company function can potentially invite disciplinary action, provided such action follows a procedurally fair process. Employers may also like to consider in advance ways to reduce the likelihood of problems at the staff party. As alcohol is often behind employee misconduct at work functions, the usual host responsibilities apply in relation to limiting alcohol and providing food. If possible, provide transportation to and from the event or ask employees to make arrangements in advance to ensure they can get home safely. Finally, clearly inform employees in advance that their indication to attend the function implies their agreement to adhere to any codes of conduct or standards of behaviour that the employer has set. Erin Burke is a senior solicitor with the Employers and Manufacturers Association based in Hamilton. She has lectured in employment law at the Department of Law, University of Waikato and can be contacted at: erin.burke@ema.co.nz

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By Russell Drake, Industrial Psychologist, EMA Employment Relations Consultant

Advice 11

Is there a psychopath lurking somewhere in your workplace? G

aylene had worked in the store for almost three years. During that time she had risen from her original retail assistant position to Team Supervisor. She was regularly praised by her manager for having a good technical knowledge, showing empathy to others, and displaying initiative. Her manager recognised her leadership potential and was eager to see her promoted. Gaylene was often called upon to provide training to junior staff and occasionally she was put in charge of the department in her manager’s absence. The team itself however had issues with staff turnover, a lack of buy-in to training initiatives, and showed little commitment at staff meetings. Team members appeared unwilling to participate in review exercises. Many struggled to display any sense of pride in the department or to volunteer for additional responsibilities. The manager interpreted these issues as typical of a low paid retail environment and therefore dismissed any grumblings that he became aware of as petty complaints. However this view was challenged when he received a complaint from an employee who, having submitted a medical certificate, also stated they could no longer work with Gaylene due to her on-going abusive and dictatorial manner. Often employers are blindsided by the arrival of a complaint such as this, where the complaint contradicts their own knowledge of the staff member. Where such a situation is left unchecked employee turnover will continue to increase and employee engagement will decline. The workplace psychopath often leaves a trail of ‘emotional’ destruction in their wake after fellow employees have been subjected to dominating and hostile behaviours, inappropriate comments or verbal outbursts. The employee’s actions are seldom witnessed by others, and they appear oblivious to the concerns raised against them. Indeed analysis of the patterns of behaviours typical of workplace bullies

and psychopaths indicate a common occurrence of denial, recidivist lying, manipulation and failing to accept Russell Drake responsibility for their own actions. The ingrained nature of these characteristic behaviours seldom allows a person to change their ways.

“Often employers are blindsided by the arrival of a complaint where the complaint contradicts their own knowledge of the staff member. Where such a situation is left unchecked employee turnover will continue to increase and employee engagement will decline.”

Key tips: i. Listen to the concerns of other staff and follow them up if you find the same issues reoccurring. ii. Observe the levels of interaction between staff and inquire why employees may be hesitant to work with specific people. iii. Treat any complaints seriously and seek to confirm the ‘substance’ behind the complaint. iv. Relate any substantiated event or incident to a potential breach of your house rules (ie unacceptable behaviour to another employee). v. Commence a disciplinary process which, while it may not result in immediate termination, will enable you to reinforce the required behavioural and conduct standards. vi. Act immediately if subsequent complaints or events occur to reinforce to other employees that you are aware of the situation and are treating this seriously. vii. Follow a procedurally correct process in approaching the individual about their inappropriate behaviours (ensuring you can support your allegations with specific examples). viii. Make a decision to terminate having confirmed you have given the individual sufficient opportunity to correct their behaviours and that the ‘offence’ that they have committed justifies the outcome of termination. In a recent Employment Court ruling (Walker v Procare Health) the Judge confirmed that, after making sufficient efforts to attempt to correct an employee’s behaviour, no employer should have to continue to put up with the behaviours of a workplace psychopath.

If you are unfortunate enough to be the employer of a workplace psychopath, how do you deal with the situation in a manner that will not land you in Court with an unjustified dismissal claim hanging over your head?

Russell Drake is an Industrial Psychologist and licensed EMA Employment Relations Consultant tel 07 853 0018 Russell.drake@ema.co.nz

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12 EMPLOYMENT CHAT

What happens when someone doesn’t come Q. We are closing down over Christmas for two weeks. What happens if someone doesn’t come back at the expected date? – Jill Dear Jill When an employee just doesn’t turn up as agreed without letting you know what’s happening, you are obliged to try and get in touch with them – they may have genuine reasons. Many employment agreements have provisions covering abandonment of employment, and it is important you make reasonable efforts to try and make contact with staff before you can assume they have ‘abandoned’ their job. If you do you need to be able to show how you reached such a conclusion. In the event the employee returns to work in response to your efforts to contact them consideration needs to be given to their explanation, and the issue may be dealt with via a disciplinary process for unauthorised absence. But in other cases where they ask to extend their leave, you should always genuinely consider their request and where possible try to accommodate them. There will be times you are unable to allow leave at the dates requested, so you should discuss alternative options. Certainly where someone is faced with an emergency at this time of year, for instance suddenly granny from Niue can get out to New Zealand for the holidays and your

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“If an employee advises they intend taking leave whether you agree or not, then you should remind them of the potential consequences of doing so.”

employee needs unexpected time off - you should consider such as request sympathetically.

But generally speaking, if you have already given staff a deadline by which to apply for leave over the summer period, you can stick by that. If an employee takes leave without permission it could lead to disciplinary action including, subject to the circumstances, dismissal. If an employee advises they intend taking leave whether you agree or not, then you should remind them of the potential consequences of doing so. Always act in good faith: sympathise with their needs and be as flexible as you can, and respond as quickly as possible to their request. Any arrangements should be in writing so no one can accuse the other of misunderstanding dates agreed to, and so on. By the way, if staff don’t want to take leave they can ask you for the cash instead – but they can only ask for cash for up to one week of their four week holiday entitlement, and only if you agree. There are specific rules around the cashing up of holidays and some employers have created policies that specify that cashing up is not an option in some or all of their business operations. EMA members can check out our A-Z of Employing Guide on Annual Holidays on www.ema.co.nz. Also if you have any doubts about calculating holiday leave, check out this Guide or give EMA’s AdviceLine a call.

WHAT EMPLOYERS ARE ASKING ADVICELINE THIS MONTH

back from their holidays? Q. I can see that next year I will need to make redundancies for the first time ever. Where do I start? And how do I get help for myself for the stress involved, even to protect myself against any angry backlash? – Dave Dear Dave Our sympathies are with you. These are tough times. Keep foremost in mind that redundancy refers to a role or job description rather than a person, and must be made for a genuine reason. Redundancy is one of the most fraught areas of employment emotionally for all parties, and can lead to claims of unfair dismissal if handled wrongly, and sometimes even if handled in a procedurally correct way! All decisions you make and actions you take around this must be done in good faith, and follow a fair consultation process. It may be as well that staff might help you find other ways to cut back before you have to cut back on people. For example, some staff may be prepared to consider reduced hours, and EMA offers ‘Lean’ and ‘Eco Smart Business’ programmes which are designed to save you money while improving staff morale and your company’s position in the market. Redundancy is always a last resort. Where positions are disestablished you should consider if the person in each role could be redeployed elsewhere in your organisation in a substantially different role. Be ready to offer that to them. Perhaps they could work into it with some training and support. People are often willing to make compromises to keep their jobs especially in this economic climate. If you have no substantially different job to offer you need to go through a fair process of informing them, giving notice of meetings about the issues being faced, calculating and offering severance pay, and negotiating terms of exit to suit you and them which are as reasonable as possible. The fallout can be that other staff too become demoralised and might need reassurance their positions are ‘safe’. Check the redundant individuals’ Employment Agreements to be sure what was offered them: redundancy pay itself is

If you are a member of EMA you can read our 18-page A-Z of Employing Guide on Redundancy and Restructure the EMA communications team in consultation with EMA Advice, and based on real calls to EMA’s AdviceLine.

“Redundancy is one of the most fraught areas of employment emotionally for all parties, and can lead to claims of unfair dismissal if handled wrongly, and sometimes even if handled in a procedurally correct way!”

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

not a legal requirement unless you have promised it. It’s up to you how generous you are above the legal minimum. For yourself, there is help available from counselling services, or take advice and comfort at relevant EMA training and networking events aimed at owners and managers. There is no absolute obligation for you to provide counselling or career guidance to employees in this situation, but you may feel it appropriate and it might be considered a breach of an employment agreement not to. In summary: • Tell your employee(s) as much as possible, as soon as possible, about the situation; • Do not predetermine the outcome; the possibility of redundancy should be put to employees as a proposal for consultation; • Allow employees the opportunity to get their own advice and to bring a representative to meetings; • Consider all alternatives to redundancy that you are bound to, or have agreed to consider; • Provide your employee(s) with the opportunity to discuss the impact of any decision; • Ensure any outstanding issues are resolved; • Keep comprehensive diary notes of all meetings and events related to the process.

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 advice@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.

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14 Advice

Under pressure? How will A

s the past two years in New Zealand has shown, companies of all shapes and sizes can suddenly be thrown into turmoil through no Wayne Goodley fault of their own, with absolutely no warning. Events like the Canterbury earthquakes, Rena oil spill, bio-security threats and finance company collapses have highlighted the need to prepare for worst case scenarios and high pressure situations, more than ever before. Currently as we write this, volcanic activity in the North Island has the potential to disrupt the lives and livelihoods of thousands of New Zealanders and their businesses. Analysing the thinking preferences of your employees is a well-known and proven way of increasing productivity and performance. But examining a person’s thinking when they are under pressure is more critical, especially when dealing with a business disruption event. In today’s highly transparent world, such knowledge is essential to help limit the potential damage to profit, reputation or individuals that can occur when pressure situations arise. For

The opportunity to examine how your staff are likely to think and act under pressure is beneficial not only to the individual profiled, but will also help you allocate tasks and responsibilities. It allows you to take advantage of your team’s natural strengths and minimise their weaknesses before a pressure situation arises. Business Plus – Exclusive news, advice, learning and networking

On the graphic the dotted line is the ‘Pressure Profile”. This individual dives into “A” quadrant thinking under pressure and is hugely significant to their capabilities.

example your friendly staff member who becomes factual and introverted under pressure may not be the right person to deal with staff welfare if a natural disaster ever affected your business.

What is pressure? The terms ‘pressure’ and ‘stress’ are often confused as being one and the same thing. While stress can have a detrimental impact on a person’s health, a reasonable amount of pressure can be a good thing in any workplace – it challenges staff to perform and can stretch their capabilities. But it also temporarily alters the way most of us behave. When we are under stress, chemicals are released by our brains to induce a fight or flight response. A person’s actions and thought processes are unpredictable in this instance and the

exact quantum of chemicals released are dictated by the stressor. When we are under pressure however, our thinking preferences may or may not change. But any shift is more predictable – it is simply a case of analysing where an individual’s mind naturally goes when dealing with a pressure situation. Understanding your staff ’s thinking and behaviours under pressure is a highly sensible course of action. Failure to do so can often result in highly public, embarrassing situations.

Understanding how our brains work The Herrmann Brain Dominance Instrument® (HBDI®) is a proven thinking preferences assessment tool that is based on the human brain and is one of the world’s most validated methodologies.

Advice 15

your staff react? The HBDI® divides the brain into four quadrants and measures the degree of preference individuals have for thinking in each quadrant – as well as how those preferences are likely to change when that individual is placed under pressure. • The upper left ‘blue’ quadrant specialises in logical, analytical, quantitative, fact-based thinking. • The lower left ‘green’ quadrant focuses on details and specialises in planning, organising, and sequencing information. • The lower right ‘red’ quadrant places a priority on feelings and the interpersonal, emotional and kinaesthetic aspects of a situation. • The upper right ‘yellow’ quadrant synthesises and integrates information and is more intuitive and holistic in its thinking.

Analysing the thinking preferences of your employees is a proven way of increasing productivity and performance. Examining a person’s thinking when they are under pressure is a new and fascinating area of interest. We are all capable of accessing all four quadrants within our brain but a combination of DNA, nurturing and free choice means we are often stronger in one or two areas and weaker in the remaining ones.

How to harness your strengths The Whole Brain approach to stress management is to empower the individual and assist them assess their stress status, to learn about themselves and the components of a stressful life which can be addressed. The thinking approach promotes self-awareness and self-help through a highly informative workshop. A process of informing, learning, and personal selection of those actions or steps to be taken which will enable the participant to practice/anticipate the signals unique to them as a warning of pending stress. The end result is wellness, which all good employers would facilitate and support. Visit www.herrmannsolutions.asia/ nz or call 09 585 4050 for further information. Wayne Goodley is Director of Herrmann International New Zealand

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By Business NZ’s CEO Phil O’Reilly

The rise and rise of insurance costs H

igher insurance costs have become a reality for many businesses and households this year. Many businesses are facing significantly higher commercial property insurance costs than in the past. The Christchurch earthquakes are an obvious reason for insurance premiums going up, but there are other causes as well.

Many global disasters The Christchurch earthquakes were among a high number of natural catastrophes in the last couple of years, including the Japanese tsunami, floods in Thailand and Australia and Hurricane Sandy. 2011 was a record year for natural catastrophe losses worldwide, with 253 separate catastrophic events, many in the Asia Pacific region. This has impacted significantly on insurers and the international reinsurers that provide cover for insurers themselves. Catastrophe reinsurers have experienced declines in their share price and some have been downgraded by rating agencies. One ratings agency now requires reinsurers to hold capital equal to two catastrophic events instead of one. So there is a global background to changes in premiums. As well as this global trend, recent changes in the New Zealand environment are also contributing to higher insurance premiums.

Building Act requirements A significant issue is the Building Act 2004. Under this Act, councils are required to adopt a policy for earthquakeprone buildings. The result has been extra strengthening requirements in all regions, hitting hardest in parts of New Zealand with higher earthquake risk. Councils are adopting a range of policies in response to the Act, allowing strengthening work to be carried out within timeframes up to around 30 years to achieve a required 33 percent level of compliance with the building code – an accepted safe level of building strength under the Building Act. However, it is possible that the Business Plus – Exclusive news, advice, learning and networking

Canterbury Earthquakes Royal Commission could recommend a new minimum requirement of 67 percent instead of 33 percent, and shorter timeframes in which strengthening must be completed. If this does happen, it is likely to impact on insurance costs. As an example, the Christchurch City Council has already increased its required strengthening from 33 to 67 percent of the building standard, and now faces legal action by insurance companies who say the policy change could see big increases in insurance premiums in Christchurch and other main centres.

(Prudential Supervision) Act 2010 requires insurers to be licensed and hold greater reserves in the form of reinsurance capital, Phil O’Reilly and imposes restrictions on the amount they can insure and their amount of New Zealand business. While these changes are prudent, the extra compliance involved is likely to contribute to increased insurance costs.

“The Christchurch earthquakes were clearly a tipping point that changed the risk profile of New Zealand.”

Brokers’ commissions may also be part of the picture. Unlike other similar professions, insurance brokers do not have to declare their commissions. While the Financial Advisers Act 2008 required financial advisers to be transparent regarding their commissions, there is no similar legislation for insurance brokers, and it is estimated that some insurance commissions may account for up to 30 percent of the premiums paid. More transparency around commissions would be helpful for customers to help guard against any incentives to drive premiums up.

Insurers say the Christchurch Council is effectively asking them to pay for bringing buildings up to code, rather than just paying for earthquake repairs. Their legal challenge will be heard in the High Court in mid-December. This may not be the only challenge prompted by Building Act requirements – as another example, consumer groups are seeking to challenge Wellington Electricity’s plans to increase power prices to pay for earthquake strengthening on its infrastructure. While there is an amount of uncertainty around the outcomes of the Canterbury Earthquakes Royal Commission report, if more stringent requirements ensue there will inevitably be a knock-on impact on insurance premiums.

Requirements on insurers Other legislation is also implicated in rising premiums. The Insurance

Brokers’ commissions opaque

Low risk no more While there are several aspects contributing to higher insurance premiums, the Christchurch earthquakes were clearly a tipping point that changed the risk profile of New Zealand. Before the 2010 and 2011 quakes New Zealand was viewed as a relatively low risk environment, despite our vulnerability to earthquakes. Our robust building standards and the existence of a sizeable Earthquake Commission fund would have contributed to that view. But now that has changed. Our higher risk profile in combination with our small population size means New Zealand is now less attractive to insurers. However, while premiums may go up, and there may in time be fewer insurers willing to underwrite here, New Zealand

on commercial buildings has nevertheless managed to retain full earthquake cover; in other earthquakeprone countries it is only possible to get around 30-40 percent cover. It should be remembered that insurance is a cyclical market, and over time premiums are likely to change. Insurers are basically ‘capital looking for a return’, and given New Zealand’s relatively sound policy settings and robust building standards, it is likely that risk perceptions will diminish in time. That may be cold comfort for businesses here facing sizeable increases in their insurance premiums now. The size of the increases is in some cases steep and could possibly have significant impact on commercial life in New Zealand. Tenanting of older buildings may reduce. Some provincial centres with older main street buildings may see commercial activity diminish or drift north to Auckland.

What can be done? BusinessNZ has been in dialogue with insurance companies, large insurers and a range of businesses concerned with seeking solutions to the issue of rising premiums. We have asked them to justify their premiums and will continue holding them to account. This is not an easy issue to resolve. As it involves commercial markets, it is not something that can be fixed by Government legislation or regulation. But business owners may still have some avenues to explore to minimise or offset greater insurance costs. Seeking insurance at more competitive rates offshore is one possibility. Self-insuring is also a possibility setting aside a calculated amount of money, using actuarial and insurance data, sufficient to cover future uncertain losses – or a combination of self-insurance and commercial insurance, although this

would be a challenging task for most businesses. ‘First-loss’ or partial insurance, for cases where total loss is unlikely, with premiums calculated proportionately, is another possibility. The current environment may also prompt a number of enterprises to review their business model – e.g. reducing dependence on bricks and mortar, outsourcing some operations, and using telecommuting could all help reduce exposure to higher insurance costs for commercial buildings. Recognising that New Zealand’s risk profile has changed and that insurance costs must be actively managed will be essential for enterprises wanting to overcome this significant challenge to profitable business. Phil O’Reilly is Chief Executive BusinessNZ www.businessnz.org.nz

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Catching up with Australia’s 8 ball? O

ver 3000 Australian companies each year are rewarded for developing their export markets. During 2012 many have received grants of up to AS$60,000. The total pool is $125 million in Australian government grants. But changes have just been announced to their Export Market Development Grants (EMDG) scheme to reflect trade and Budget priorities. The following begin in the grant year 2013-2014: • Exporters to East Asia, emerging and frontier markets will be

entitled to claim a maximum of eight annual grants, up from the current limit of seven. • Exporters to the markets of the US, Canada and the European Union, including the UK, will be entitled to claim a maximum of five grants, instead of the current seven. Overall the Australian government reduced the funding for EMDG by $25 million (16.7% reduction) effective immediately, and this will impact on grant payments this year.

The changes were announced in Australia’s Mid Year Economic Outlook Statement issued by the Treasurer, Wayne Swan recently. Australian exporters qualify for a rebate under the following terms. They must be: 1. An Australian business with an ABN 2. Seek to export Australian products or services 3. Spend more than $20,000 in export marketing activities

Export report raises difficult questions I

t’s no use thinking by standing on an acorn we will end up at the top of an oak tree, said EMA CEO in response to the release of the NZIER report released mid November, Lifting Export Performance. The report prepared for Export New Zealand is a timely reminder that we must not underestimate the challenges of scale and distance our businesses face if we are to improve our standard of living, he said. “Boosting exports is vital to lift New Zealand’s economic performance, and all New Zealanders must understand we cannot achieve higher standards of living without more funds invested. “To attract investment in productive

enterprise we need to consequences and act focus on doing extremely as a tax on exports. Lifting export performance well those things where “The report Actions to drive growth in exports we display demonstrable remains silent on strength, and to grow our the gains to be had exports we will also need from investing in to specialise and diversify manufacturing; further, and that will require every job created new policies and practices. in manufacturing “We agree where the delivers five more report says our company in the wider tax rate is too high for a economy. The lack country of our size, location of extrapolation of and modest income levels. this through to the “We should aim to get it to export sector and job 20%, comparable with Switzerland or Chile. creation is somewhat surprising given “We note it says government the report is authored by the NZIER spending can have unintended think tank.” REPORT

November 2012

NZIER report to Export New Zealand, a division of BusinessNZ

New Fiji Budget cuts company tax rate Fiji-based South Pacific Stock Exchange listed companies and multinational organisations setting up regional headquarters in Fiji will pay a lower rate of company tax, according to proposals in the new Fiji Budget announced on November 23rd. Listed firms will now pay 18.5% whereas Fiji’s normal company tax rate is 20%. Existing incentives will continue, for example, dividends from shares of listed companies received by resident

shareholders will continue to be tax exempt. Transnational business entities will pay just 17% corporate tax. The hitherto minimum requirement of $250,000 for foreign investment has also been done away with. New business friendly ICT initiatives announced include ‘FijiPay’, a new way to make easier and cheaper electronic transactions for businesses and consumers. The Fiji Budget also proposes a new tax to discourage the use of fossil

fuels imposed next year except its use for cooking (such as kerosene). Public transport, particularly buses, will receive some rebates. Savings gained through increased power generation from renewable services will be passed on to consumers with Fiji’s monopoly power provider dropping prices by five cents across all tariff bands from next year. Fiji’s GDP growth is forecast at 2.5% in 2012 rising to a projected 2.7% next year. Business Plus – Exclusive news, advice, learning and networking

By Jeff Howell

Taking on the tea world, one T

he world’s most widely consumed beverage after water is … tea. Over a trillion cups are consumed each year, enough to fill 80,000 Olympic swimming pools. Asia makes up over 60% of the world’s population, and Asia drinks tea. With growing prosperity the demand for premium tea is growing rapidly. Asian growers are struggling to keep up. And atmospheric and water pollution, land degradation and questionable farming practices are combining to make it ever more difficult to grow safe tea in traditional markets. Enter Zealong tea, New Zealand’s first and only tea producer. Launched in 2009, the Hamiltonbased company is tapping into Asian markets with a uniquely New Zealand offering: delicious tea that’s fully traceable to the date and block where it was picked. Zealong is also the world’s only tea to be totally ISO22000 HACCP compliant, an international benchmark in food safety and security that is fast building a fan base among younger tea drinkers in China, Taiwan, Malaysia and Korea.

Vincent Chen, founder of Zealong tea

Making it Lean By Barry Nolan

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cup at a time wondered if tea, a variety of camellia, would grow here too. With permission gained from MAF to import live cuttings,Vincent set out to prove his father’s theory. With no background in tea, it was a case of live and learn, and there was plenty of learning to do. From over-zealous quarantine and propagation problems, to New Zealand’s red tape and unseasonal Waikato frosts,Vincent refused to give up. Year by year, quality improved and the investment grew. By 2009,Vincent was confident the quality and consistency of his tea matched the world’s best. He launched the brand in December 2009. In 2010 Zealong tea exhibited at the World Tea Expo in Las Vegas, the Hong Kong Tea Fair and the Shizuoka Fair in Japan. Praise from the tea world was unanimous. Critics commended Zealong for its flavour, fragrance and freshness.

Discovering tea

Taste the purity Founder Vincent Chen explains Zealong’s combination of New Zealand provenance and international food safety credentials stand out in a market segment not exactly renowned for its transparency. “When we say Zealong is the world’s purest tea, that is a fact.” In Asia, food scares are a daily reality, he says. People are looking for brands they can trust. Zealong tea is farmed organically without chemical sprays or fertilisers, hand picked, and vacuum packed in Hamilton. Chen says customers can be sure of what’s in their cup of Zealong – and what’s not.

A brand is born In 1996 Vincent and his family had recently moved to Hamilton from Taiwan. His father noticed how camellias thrived in the local conditions and

The 48ha Zealong estate just north of Hamilton is a testament to how much Vincent and his team has achieved in 16 years. The estate’s 1.2 million tea plants all descend from the original 130 seedlings that survived quarantine. The first impression is of a winery, with a terraced tea salon overlooking a lake and neat rows of verdant tea bushes. Beyond the terrace, birds, bees and butterflies thrive in the no-spray environment. Tea is harvested three times a year in November, January and March. Harvests are frenetic affairs, with up to 60 pickers in the fields and 18 staff on the processing side. But for the rest of the year, all is peace and calm. The Zealong estate is proving popular with local and international visitors, with over 10,000 visitors in the past year. Camellia tea house

is open Tuesday to Sunday for lunch, morning and afternoon teas with Zealong teas top of the menu, of course. Its signature high tea is a feature. There’s also a purpose-built pavilion available for group meetings and conferences. Hamilton Waikato Tourism chief Kiri Goulter is a big fan. “They work really hard at getting the details right. Like their tea, everything’s done in the best possible taste.” she said. Nath Pritchard, Waikato District Council’s General Manager Regulatory is similarly full of praise. “I love the estate – and the tea. The packaging is so beautiful we use it as a gift for visiting VIPs,” he said.

The road ahead Vincent Chen knows there’s plenty of hard work ahead. New Zealand tea remains a novelty in world markets, lacking the reputation of, say, our wine or manuka honey. Zealong faces the challenge of conquering the world literally one cup at a time. Fortunately, Vincent is patient as well as tenacious. “One day, I believe New Zealand tea will be as big as kiwifruit or wine.” In New Zealand, Zealong tea is retailed through selected premium grocery stores and specialist tea shops. See zealong.com for a list of retailers, information on the Zealong estate or Zealong tea.

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IN OUR REGULAR SNAPSHOTS OF EMA MEMBER COMPANIES, WE DESCRIBE THE BUSINESS OF ES PLASTICS IN HAMILTON. BY MARY MACKINVEN, EMA JOURNALIST

Plastic anything designed and made in New Zealand E

S Plastics in Hamilton was thrilled to scoop 10 of the 37 awards at the 2012 New Zealand Plastic Industry Design Awards. The prizes won were in various categories including for primary industries, consumer products, and tool making for its buildings’ water meter manifold, mussel float, pallet, gardening pot and ‘polanter’ (vertical planter). The company also won gold, silver and bronze (for different products) in the blow moulding category. Heather Allen who works alongside managing director Jeff Sharp and is herself a director of the company, as well as being in charge of sales and operations, says: “We’re particularly proud of our performance in the blow-moulding [one piece processing] category. It was nice to be recognised with gold, silver and bronze awards. “It goes to show that our team is becoming a real leader, particularly in this area.”

“Products and services are equal to or beat imported equivalents on price and with the added benefits of flexibility, fast turnaround of orders and design changes.” The award-winning mussel float was designed to dramatically reduce movement in swells, which has a marked effect on yield for the fast-growing New Zealand mussel industry. Another win was for their changing brass componentry for super tough plastic in water meters, which significantly reduces costs and improves production speed for the meter box manufacturer. ES Plastics is 22 years old and has 25 staff. Half the business is making and selling blow-moulded packaging such as bottles, jerry cans and drums for storing the likes of oil, chemicals or soap. The other 50% of the business

ES Plastics founder and managing director Jeff Sharp and director Heather Allen pose with some of their team and their gold award certificates.

involves developing and manufacturing new products for clients, mostly injection moulded (solid plastic objects such as utensils or knobs) but also blow moulded (hollow items or ‘shaped balloons’ of plastic). Allen says the products can be as small as, say, the clicker on a ballpoint pen or as big as a 20-litre fish bin. For instance, one product developed for a client was a multipurpose clip for mothers to secure a nappy or hold a toy or bib in place instead of a traditional nappy pin. ES Plastics advised the client on design to ensure the clip worked as intended, on the materials to use for product strength and economy, and on other products to complement the client’s offering. Another example of their innovation was a base for the stabilising of temporary safety fences used for civil construction sites and general public hazards. The existing product, though standards compliant, was unstable in strong winds. ES Plastics designed a heavier base to clip into the fence, saving the client an investment in a new mould. ES Plastics is passionate about its ability to compete with imports. Heather says the company’s products and services are

equal to or beat imported equivalents on price and with the added benefits of flexibility, fast turnaround of orders and design changes, and deliver products suited to New Zealand conditions. She says: “We will never steal your idea and sell it somewhere else! “We don’t do laundry baskets or buckets, but freight costs are high for bulky things, such as tanks for weed spray on a farm bike. If a customer wants 10,000 widgets this season and none next month, we can do that. It won’t be enough for a machine in China...where, if your order is too small it gets tacked on after the big jobs so you have to wait. Then it takes four weeks to get here. “You can get a truck load from us in three weeks or even three days, which saves cashflow and lead times and the need to order consistently.” Heather says lots of mad crazy inventions have come through over the years and been commercial successes. • EMA also congratulates Auckland member company Adept Ltd, a Joint Supreme Winner of the Awards for its ‘STAR Board’ forearm and hand support designed for trans-radial procedures in a hospital.

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24 EMA MEMBER PROUD MOMENTS NOTICEBOARD

Big win for The Pallet Company T

he Pallet Company has won the Westpac Supreme Business Excellence Award in the Westpac Auckland West Business Awards 2012. Founder and managing director Nick Barton says the team is extremely proud to win after many years of hard work. “And it’s great to be recognised alongside previous winners like Douglas Pharmaceuticals, Tasti Products and Glidepath.” The supreme award is based on a category win and the company won two categories: ‘Sustainable Success’, with year-on-year growth in profit and revenue even in tough times; and the ‘Innovation and Improvement’ category for improving its plant in Glendene to reduce labour and build a

better quality product overall, as well as improving customer feedback. During this year The Pallet Company Ltd established three other businesses, and expanded staff numbers from 65 to 80 and with the expectation of growing by a further 20 in the next few months, Mr Barton says. He started the wooden packaging company in 1995 in Auckland to recycle used pallets. Now it is a large manufacturer of new pallets and crates, including those treated for export. They also repair and dispose of used/ damaged pallets. This year the company bought a business in Napier now called The Pallet Company Hawkes Bay Ltd with

the forthcoming season for apples, onions and squash in mind requiring additional staff. The Auckland company also bought into a Mt Maunganui company with a third investor to create Bay Pallets 2012 Ltd. A third new business is Engineered Pine Products Ltd, a joint venture between Taupo Timber Packaging and The Pallet Company. This operation processes the #2 Laminated Veneer Lumber (LVL) from Carter Holt Harvey’s Marsden Point Mill into fillet sticks, which go between the layers of wood in packets of timber during kiln drying and when stacked. They also supply Sleepyhead with bed slat material.

NZ company breaks Italian TV sales record A uckland-based company EasiYo continues to grow sales through an online TV home shopping channel in Italy. Chief executive Paul O’Brien says in October the EasiYo promotional programme on Italian channel QVC sold €541,000 (NZ$848,438.14) worth of yoghurt products to consumers. “This was a record for us, and them.” And last month EasiYo was approached by QVC, the biggest home shopping channel in the world, and asked to partner them in Beijing

where they have 43 million homes online and where yoghurt is thin and sweet – in contrast to EasiYo’s.

“This is a fantastic opportunity for EasiYo!” he says.

Lowndes ‘best commercial law firm’ Lowndes Associates has won the Thomson Reuters Corporate & Commercial Law Firm of the Year award at the 2012 New Zealand Law Awards. Winners are identified and voted for online, directly by their clients. The criteria for the award include excellence in client service, expertise, Business Plus – Exclusive news, advice, learning and networking

experience and judgment, commerciality and demonstrating an in-depth understanding of clients’ businesses and industries. Managing partner Mark Lowndes (pictured) says, “The Lowndes Associates team is thrilled that our clients feel we are continuing to deliver in these key areas.”

Mark Lowndes

Auckland filmmaker wins international award F

ilm-maker Ilya Ruppeldt, proprietor of Golem Productions and a committee member of ExportNZ Auckland, has picked up a silver award at the Etnofilm International Film Festival in Slovakia. Mr Ruppeldt’s 52-minute film, The Wedding - Close Encounters of the Gypsy Kind, attracted a high rating not only for its interesting subject but also for a high level of professional craftsmanship, said the panel of international judges. The subject is the trials and successes of a small gypsy community that found refuge from central Europe in West Auckland 13 years ago. Mr Ruppeldt himself moved to New Zealand from Czechoslovakia 15 years ago. The movie has attracted the attention of several international television

broadcasters. The Slovakian Silver Turon award has clinched an airtime deal for Golem Productions with Slovak TV and negotiations are under way with German, Austrian, Czech, Polish and Hungarian companies. Etnofilm is devoted to ethnic topics, and one of the world’s longestrunning film festivals. This year it received more than 100 entries. Golem’s stock in trade is television commercials, training and safety films and webcasts, including the filming associated with the annual ExportNZ Auckland Export Awards. But its documentaries such as Lords of the Wine and the short film Meet the Prick about Tame Iti have demonstrated an enterprising choice of subject matter.

Ilya Ruppeldt, film director

The Wedding – Close Encounters of the Gypsy Kind is about gypsies living in West Auckland

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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.

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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:

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– Advice

Christmas and New Year Public Holidays • • • •

Christmas Day - Tuesday 25 December 2012 Boxing Day - Wednesday 26 December 2012 New Year’s Day - Tuesday 1 January 2013 2 January holiday - Wednesday 2 January 2013

Entitlement to a paid public holiday All employees for whom the day is otherwise a working day will be entitled to payment for the public holiday regardless of whether they have just commenced employment or whether they are permanent, fixed term or “casual” employees.

Otherwise working day An employer will need to ascertain whether the day on which the public holiday falls is “otherwise a working day” for that employee to determine their entitlements on a public holiday. Employers should ask themselves - “if it wasn’t for the public holiday would the employee normally work on this day of the week/month?” Rosters and work patterns can help to determine whether an employee would normally work on a particular day. If it is not clear whether the day would otherwise be a working day an employer and employee should consider the following factors with a view to reaching an agreement on the issue: • The employee’s employment agreement; • The employee’s work patterns; • Any other relevant factors including: - whether the employee works for the employer only when work is available; - the employer’s rosters or other similar systems; - the reasonable expectations of the employer and the employee that the employee would work on the day concerned. • Whether, but for the day being a public holiday, the employee would have worked on the day concerned.

Payment for a public holiday An employee will be entitled to have the public holiday off on pay if a public holiday falls on a day that is otherwise a working day for them. An employee for whom the public holiday is not otherwise a working day and who does not actually work on the day is not entitled to any payment for the public holiday.

Public holiday pay

Time and a half is defined in the Act as being the greater of: • The portion of the employee’s relevant daily pay or average daily pay (less any penal rates) that relates to the time actually worked on the day plus half that amount again; or • The portion of the employee’s relevant daily pay that relates to the time actually worked on the day. A penal rate is an identifiable additional amount that is payable to compensate an employee for working on a particular day of the week or a public holiday but does not include, for example, an additional payment for a sixth or seventh day of work.

Alternative holiday An employee who works on a public holiday that is otherwise a working day for them is entitled to a whole working day off, an alternative holiday, regardless of the amount of hours actually worked on the public holiday. An employee is not entitled to an alternative holiday if they work only for the employer on public holidays.

Sickness or bereavement on a public holiday If an employee who had agreed or was required to work on a public holiday does not work due to sickness or bereavement, the public holiday must be treated as a public holiday and not as sick or bereavement leave. An employee will not be entitled to be paid time and a half as part of their pay for the day.

Public holidays and annual leave A public holiday that occurs during an employee’s annual holidays must be treated as a public holiday and not as annual leave.

Public holidays and closedowns If a public holiday falls during a customary closedown, the factors of whether it would otherwise have been a working day must be considered as if the closedown were not in effect. This means employees will be entitled to paid public holidays falling during a closedown period if the days would otherwise have been working days for them.

Transfer of public holidays to any 24 hour period The Holidays Act allows employers and employees to agree to transfer a public holiday to any 24 hour period.

Working on a public holiday

This means a public holiday may be agreed to be transferred: • By a few hours to match shift arrangements • To a completely different day (and not necessarily midnight to midnight). In the absence of a written agreement, a public holiday is observed midnight to midnight on the traditional day.

An employer can only require an employee to work on a public holiday if they are required to under their employment agreement. Every employee who works on a public holiday is entitled to be paid “time and a half ” for the time worked regardless of whether the day is otherwise a working day or not.

The EMA website www.ema.co.nz contains detailed guides covering leave entitlements or contact AdviceLine on 0800 800 362 (within New Zealand) or 1800 300 362 (from Australia).

Where an employee has an entitlement to a paid public holiday and they have the day off they are paid their “relevant daily pay” or “average daily pay” for the day.

Business Plus – Exclusive news, advice, learning and networking

Out & About EMA/ExportNZ Waikato annual meeting and dinner in Hamilton

| 1 Sir William Gallagher [Gallagher Group], Catherine Beard [ExportNZ) & John Allen [Ministry of Foreign Affairs and Trade] | 2 Nicola Wetere [Canary Enterprises Ltd] | 3 John Key [PM on video] | 4 Kylea Heaton [Canary Enterprises Ltd] | 5 Greg Waylen [Mainfreight], Stephen Barnett [Repair Group] & Jack Ninnes [WEL Networks, chair EMA Waikato] | 6 Simon Graafhuis [Gallagher Group]

Official opening of EMAâ&#x20AC;&#x2122;s new Waikato office in Hamilton

| 1 Karen Hughs [Community Living Trust] | 2 Mark Flowers [Wintec] & Margaret Comer [Gallagher Group] | 3 Tammy 10 Hebditch [Midlands Health Networks] 9 8 | 4 Linda-Maree Drake [Drake Consulting], Denise Tyrer-Harding [IPSPEC (NZ) Ltd] & Debbie Page [Senior Lecturer Wintec] | 5 Anne Bennett [YWCA] & Lucila Marquisio [EMA] | 6 Cathy Phillips [EMA], Tame Pokaia [Wintec] & Rhonda Spence [EMA] | 7 David Lowe [EMA] & Debbie Wilson [Seating To Go] | 8 Terry & Lynne Wilson [Mega Mitre 10] | 9 Bruce Goldsworthy [EMA] & Lady Judi Gallagher [Gallagher Group] | 10 Chelsea Symonds [Midlands Health Networks]

29-30

Health & Safety Representative Training (Stage 1) Learn to better manage health and safety issues in your organisation by improving workplace communication and gaining understanding of relevant employment statutes. Auckland | Craig

Did you know, EMA Tailored Training can deliver a wide range of workshops fully customized to reflect your workplaceâ&#x20AC;Ś at your workplace? Contact Rhonda Spence rhonda.spence@ema.co.nz Mobile 021 664 321

Health & Safety 14-15 Representative Training (Stage 3) Increase knowledge, skills and confidence in your role as a Health and Safety Representative. Auckland | Craig

FEBRUARY

JANUARY

EMA Alert

Finance & Accounting: The Fundamentals

7-8

Supervision: An Introduction

Gain the key knowledge and skills required to effectively manage a team of people.

Developing your knowledge of accounting fundamentals will enhance your financial understanding for a better bottom line.

Auckland | Deborah

Management: An Introduction

18-19

If you are new to a management role, this comprehensive course will give you the foundational skills you need to succeed.

Wishes you a happy & safe holiday season

Auckland | Deborah

Super Deal

2 Half Days For the Price of a Full Day

Controlling Discomfort/ Pain/Injury (OOS) in the Workplace

Manual Handling (Safe Lifting) Techniques

This half-day workshop gives people an understanding of the causes of Discomfort, Pain and Injury (DPI) and techniques in the prevention and management of DPI in the workplace.

The HASE Act identifies many manual handling injuries as serious harm and thus requires all employers who have identified manual handling risk to take all practicable steps to control this risk. This course will assist workplaces in controlling this risk.

9am-12.30pm | Auckland | Craig

1pm-4.40pm | Auckland | Craig

Conference Contacts Karen Joe | 09 367 0959 | conferences@ema.co.nz Training Contacts Lotta Bryant | 07 839 2710 | lotta.bryant@ema.co.nz Kevin Chambers | 09 367 0958 | kevin.chambers@ema.co.nz Craig Garner | 09 367 0907 | craig.garner@ema.co.nz Deborah Law-Carruthers | 09 367 0947 deborah.lawcarruthers@ema.co.nz Lucila Marquisio | 09 367 0961 | lucila.marquisio@ema.co.nz