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<strong>EMA</strong>Business<br />

n e w s , a d v i c e , l e a r n i n g a n d n e t w o r k i n g<br />

Issue 63 - October 2009<br />

In this issue:<br />

■ Drinking on the job?<br />

■ When do casual staff get leave?<br />

■ Determining what is casual employment<br />

■ RWC 2011 more than rugby<br />

<strong>Tailored</strong><br />

for quality<br />

How to escape from your<br />

corporate psychopath?<br />

Physios can save you money: how?<br />

How to make money from<br />

Aussie hand-outs<br />

E M A N o r t h e r n & C e n t r a l a r e t h e m a j o r s t a k e h o l d e r s i n :


<strong>EMA</strong>Business<br />

<strong>EMA</strong>Business is published for:<br />

<strong>EMA</strong> Northern<br />

159 Khyber Pass Rd, Grafton,<br />

Private Bag 92066 Auckland<br />

Ph: 09 367 0909 or 0800 800 362<br />

Email: ema@ema.co.nz Website: www.ema.co.nz<br />

Chief Executive: Alasdair Thompson<br />

Advocacy Manager: Bruce Goldsworthy<br />

Manager, Employment: David Lowe<br />

Manager <strong>EMA</strong> Learning: David Foley<br />

Manager <strong>EMA</strong> Events: Mauro Barsi<br />

Whangarei<br />

Myriam Heynen<br />

09 459 1501 mob 021 920 414<br />

Waikato<br />

Denis Quigan 07 839 2995 mob 027 203 0694<br />

Cor Speksnijder 07 853 0018 mob 027 203 0694<br />

Bay of Plenty<br />

Kim Stretton 07 577 9665<br />

Terry Arnold 07 575 8401 mob 021 662 656<br />

Rotorua<br />

Clive Thomson<br />

07 345 8122 mob 027 437 2808<br />

02<br />

03<br />

12<br />

04<br />

05<br />

07<br />

18<br />

On the cover<br />

Joe Black the Tailor’s custom made (‘espoke’) suit by 120-year-old Auckland firm,<br />

Cambridge Clothing. The brand features a choice of fabric from over 100 premium Italian<br />

cloths, your initials sewn in the lining and your name engraved on the buttons. ‘espoke’<br />

two-piece suits start at $1195. For the full Cambridge Clothing story go to page 20<br />

Omission: Last month we omitted to credit Alan Wright of IRL for the great photo of IRL scientist Dr<br />

My Do on the cover, and also for the photo of the Brookhaven electro magnet on page 20.<br />

FINANCE How irrational exuberance hits markets<br />

Paul Winter discusses unintended consequences of govt interventions<br />

Tax review presents great chance<br />

NETWORKING Alasdair Thompson on business taxes for growth<br />

TECHNOLOGY Optimising the upturn<br />

MANUFACTURING<br />

RECRUITMENT<br />

Tax pooling changes: do they affect you?<br />

RWC 2011 more than rugby<br />

Employment FINANCE Pathway Expo features health<br />

Bidding for Aussie work<br />

07<br />

<strong>EMA</strong> central<br />

PO Box 1087 Wellington<br />

Ph: 04 473 7224 Fax: 04 473 4501<br />

Email: ema@emacentral.org.nz<br />

Website: www.emacentral.org.nz<br />

Chief Executive: Paul Winter<br />

Gisborne office: 06 863 2438<br />

Hawke’s Bay: 06 843 3419<br />

Taranaki: 06 759 4006<br />

19<br />

08<br />

09<br />

10<br />

15<br />

Go<br />

NETWORKING<br />

Global report<br />

TECHNOLOGY<br />

MANUFACTURING<br />

Court guidance helps defines casual employees<br />

RECRUITMENT<br />

FINANCE<br />

Is there a psychopath at your work?<br />

Employment chat<br />

Drinking on the job? Days off for casuals?<br />

NETWORKING<br />

Tax clarified on relocation costs, o'time meal allowances<br />

18<br />

Manawatu/Wanganui: 06 350 3395<br />

Nelson: 03 548 4528<br />

20<br />

TECHNOLOGY<br />

Cambridge Clothing - Quality underpins success<br />

FINANCE<br />

MANUFACTURING<br />

Member profile<br />

<strong>EMA</strong>Business<br />

Editor<br />

Gilbert Peterson 09 367 0916<br />

Writer<br />

Mary MacKinven<br />

Published by<br />

TPL Publishing Services<br />

Project Manager<br />

Anthony Stead 09 529 3921<br />

Advertising Sales<br />

Colin Gestro (09) 444 9158<br />

colin@affinityads.com<br />

ISSN No. 1176-4953<br />

14<br />

16<br />

17<br />

RECRUITMENT<br />

NETWORKING<br />

System software selection boosts productivity<br />

Physios TECHNOLOGYsave big money, and pain<br />

Virtualisation: Getting more from your IT<br />

MANUFACTURING<br />

RECRUITMENT<br />

FREE briefings for<br />

<strong>EMA</strong> members<br />

23<br />

24<br />

25<br />

16<br />

Our Vision. Your Success<br />

PAGE 1<br />

Find out about current and upcoming events<br />

KiwiSaver workshop<br />

20 August, 9.30am-12.30pm • <strong>EMA</strong> Learning, 159 Khyber Pass Road, Auckland<br />

18 August 2009<br />

Tuesday<br />

Managing Poor<br />

Performance<br />

NZ Institute of Chartered Accountan<br />

Auckland


<strong>EMA</strong>Business<br />

How irrational exuberance harms markets<br />

By Paul Winter, Chief Executive, <strong>EMA</strong> Central<br />

The contribution to economic growth<br />

from well functioning markets are often<br />

not well understood even though they<br />

multiply the rewards from innovation,<br />

and add comparative value and<br />

improvements in productivity. Hence,<br />

it seems, governments feel the need<br />

to continually alter the ‘rules of the<br />

economic game,’ often with unforeseen<br />

consequences.<br />

The functioning of markets is not<br />

always predictable and we need to<br />

remind ourselves people participating<br />

in them can be driven as much by<br />

emotion as by logic and<br />

information. The recent<br />

financial, liquidity and<br />

economic crises have well<br />

illustrated this.<br />

A result is that many people<br />

want Government to protect<br />

people from themselves.<br />

The impact on markets of<br />

decisions driven by emotion<br />

through excessive exuberance,<br />

or worry, is the harder challenge as<br />

it leads to the creation, and then the<br />

bursting of market bubbles, often with<br />

quite devastating effects.<br />

Irrational exuberance or worry tends<br />

to be contagious. At its worst it creates<br />

challenges via such things as huge<br />

government borrowings and deficits.<br />

Whether societies can stop these<br />

long cycle mood swings, or even<br />

dampen them, is currently the subject<br />

of a lot of debate. Like many things in<br />

life you often have to experience the<br />

loss from a bursting bubble to achieve<br />

a more balanced perspective on a<br />

personal level, and become less easily<br />

caught in future euphoria.<br />

I was living in Hong Kong when<br />

I experienced a period of irrational<br />

stock market exuberance. Wiser<br />

investors at the time understood what<br />

was happening. They described it as a<br />

“bell-hop market.” Normal assessments<br />

of risk and reward were cast aside,<br />

so even a bell-hop - the most junior<br />

worker in a hotel - came to believe<br />

investing in the stock market produced<br />

easy wealth. In principle this is similar to<br />

our irrational exuberance for investing<br />

in real estate.<br />

Education, and access to good<br />

and timely information can clearly<br />

make an important contribution to<br />

"A result is that many<br />

people want Government<br />

to protect people from<br />

themselves. "<br />

the quality of decisions. However, its<br />

impacts are usually not as immediate<br />

as the introduction of new laws and<br />

regulations can be. So it is not surprising<br />

the latter is the most typical response.<br />

History demonstrates that increasing<br />

the interventions of the state in the<br />

operation of markets can result in<br />

solutions worse than the problems they<br />

were trying to avoid.<br />

While the abject failure of<br />

communist states illustrates the point<br />

well, examples in New Zealand’s own<br />

history show we too have paid a high<br />

price because of poor solutions.<br />

More devastating long term is<br />

that government interventions don’t<br />

encourage the right cultural attitudes<br />

vital to achieving optimal behaviour.<br />

For example, its cultural attitudes that<br />

determine the strength of four of the<br />

five drivers of productivity that Treasury<br />

says is vital to accelerating our wealth<br />

creation – Innovation, Enterprise,<br />

Investment and Skills. (The fifth is<br />

natural resources, and our access, use<br />

and stewardship of them.)<br />

Every strength is a potential weakness<br />

and I would argue this is evident in our<br />

over dependence on the State to solve<br />

problems, on incentives that favour<br />

security of employment, or dependence<br />

on our welfare system including<br />

universal superannuation, or placing<br />

too high a value on owning our own<br />

homes.<br />

The challenge and rewards of<br />

investing in our own development<br />

and in entrepreneurial activity need<br />

far greater encouragement through<br />

better incentives and policy settings.<br />

Getting the balance right is the<br />

challenge.<br />

Peter Drucker, an original and<br />

influential thinker, argued in ‘The New<br />

Realities’ that we are in a new period<br />

when we avoid looking for panaceas to<br />

solve society’s problems.<br />

Instead he advocated for an enlightenment<br />

brought about by applying<br />

good information to each new<br />

challenge. He encouraged careful<br />

analysis and diagnosis of issues through<br />

sound information and transparent<br />

processes, and a search for the most<br />

effective remedies for each specific ill.<br />

Good information and transparent<br />

processes are also what we need<br />

implanted to gain the greatest benefits<br />

from well functioning markets.<br />

AGM 2009 & Issues Briefing<br />

All members are warmly invited to attend our last Issues Briefing for the year,<br />

commencing with the Annual General Meeting of the Employers and Manufacturers<br />

Association (Central) Inc. at 3.00 pm on Wednesday 25 November 2009.<br />

Refreshments will be provided at the conclusion.<br />

Venue: Duxton Hotel, 170 Wakefield St, Wellington<br />

PAGE 2<br />

<strong>EMA</strong> Business Plus Magazine - Exclusive <strong>EMA</strong> news, advice, learning and networking


By Alasdair Thompson, Chief Executive, <strong>EMA</strong> Northern <strong>EMA</strong>Business<br />

Tax review presents great chance<br />

The tax review underway offers a great<br />

chance to align New Zealand’s tax<br />

system with the imperative for New<br />

Zealand which is to rapidly improve the<br />

nation’s productivity.<br />

<strong>EMA</strong> has strong views on all matters<br />

related to tax. We say anything that<br />

discourages investment or harms our<br />

ability to earn higher incomes will<br />

ultimately hurt employment and wealth<br />

creation.<br />

And we certainly need more<br />

investment to increase productivity.<br />

We need 1.8% GDP growth each<br />

year in New Zealand over and above<br />

Australia to catch up with them by<br />

2025 and our company tax rate will<br />

need to be better than Australia’s. As<br />

well we need to be competitive with<br />

them in tax costs as headline tax rates<br />

are not everything- exemptions are<br />

important in the measuring of the<br />

effective tax rate.<br />

In addition, we need to address the<br />

Working for Families scheme which<br />

has perverse effects at present as earners<br />

move from welfare to higher incomes.<br />

It should only target the lowest income<br />

earners.<br />

The tax principles we are drafting<br />

for the tax review will include<br />

recommendations that the company<br />

tax rate be dropped to 18% or lower<br />

and for imputation credits to be<br />

removed. We will note, as we have done<br />

many times that companies are only a<br />

conduit for providing income for their<br />

employees and shareholders, and they<br />

should be where the tax is applied.<br />

In the past Treasury has used a static<br />

economic model to assess and rebut<br />

reductions to the company tax rate – it<br />

needs to apply a dynamic one.<br />

Alternatively, we support investigating<br />

different approaches for business tax<br />

such as ACE – ACE is Accreditation<br />

for Capital Equity – and means that<br />

tax should not be paid on normal rates<br />

of return or on equity invested. If<br />

Australia goes down this path it will<br />

be important to match or better the<br />

provisions they introduce.<br />

We will recommend negative tax<br />

gearing systems should only be aimed at<br />

the bottom strata of the tax base.<br />

While income tax rates in New<br />

Zealand are not too high, we do need<br />

for tax thresholds to return to indexed<br />

levels of the past 10 years to eliminate<br />

fiscal drag.<br />

We do not support a capital gains<br />

tax but other options targeted at rental<br />

property investment should discourage<br />

over-gearing and the ability to deduct<br />

depreciation. We would go along<br />

with an increase in GST to cover any<br />

revenue shortfall to retain a fiscally<br />

neutral tax system. SME’s should<br />

have the option of paying provisional<br />

tax aligned with their GST and paid<br />

bi-monthly with a wrap up annually,<br />

and with minimal or no penalties for<br />

shortfalls in that wrap up.<br />

We need to change the capture of<br />

Fringe Benefit Tax too, so it becomes<br />

part of the PAYE system. Fringe<br />

benefits should be treated as part<br />

personal income and taxed accordingly.<br />

Tax at the top level should apply<br />

equally to personal tax and trusts<br />

but not to companies due to the<br />

withholding nature of the income for<br />

companies.<br />

The overriding principle we<br />

promote is that the tax system should<br />

encourage investment and not overly<br />

penalise the earning of income, because<br />

we urgently need to raise productivity<br />

and to achieve this we need far greater<br />

investment and to reward higher labour<br />

productivity.<br />

Passage of super city law historic<br />

The passage of the super city bill<br />

into law made history for Auckland and<br />

New Zealand. <strong>EMA</strong> campaigned hard<br />

for this very outcome.<br />

Under the new law’s provisions the<br />

Auckland region is to become one city<br />

with one council with local boards to<br />

respond to, and manage local issues.<br />

We are confident the new<br />

governance structure will help expedite<br />

a rapid lift in productivity and for<br />

Auckland to move decisively to<br />

compete with other Pacific rim cities.<br />

We look forward to scrutinising the<br />

third Auckland bill for more detail.<br />

<strong>EMA</strong> NORTHERN AGM & COCKTAILS<br />

Members are invited to the Annual General Meeting of<br />

the EMPLOYERS & MANUFACTURERS ASSOCIATION<br />

(NORTHERN) INC to be held at:<br />

CT Club - NZ Institute of Chartered Accountants<br />

27-33 Ohinerau Street, Greenlane, Auckland<br />

Thursday, 5 November 2009, at 4.30 pm<br />

Members are reminded they are entitled to nominate a<br />

person(s) to stand for the Board of the Association. To do this<br />

you will need to complete the form (available by emailing to:<br />

raewyn.mckenzie@ema.co.nz) and returning it by 5.00 pm, 21<br />

October 2009. Nominations should be accompanied by a brief<br />

biography including the nominee’s employment history and<br />

outside interests.<br />

All members are entitled to attend the AGM, and vote or appoint<br />

a proxy. A proxy form for the purpose will be<br />

forwarded with the list of candidates for office seven days prior<br />

to the Annual General Meeting.<br />

Those wishing to attend should email to raewyn.mckenzie@<br />

ema.co.nz<br />

Our Vision. Your Success<br />

PAGE 3


<strong>EMA</strong>Business<br />

Tax pooling changes: do they affect you?<br />

Every business in New Zealand that<br />

pays provisional tax will be affected by<br />

the changes Inland Revenue has made to<br />

the Tax pooling rules.<br />

Tax pooling is provided by tax<br />

intermediaries to allow provisional<br />

taxpayers to manage their tax payments<br />

and allows businesses to:<br />

n Minimise use-of-money-interest<br />

(UOMI) with under and over<br />

payments of provisional tax,<br />

n Avoid late payment penalties; and<br />

n Finance tax<br />

In summary the rule changes are<br />

to extend tax pooling to apply to<br />

additional tax payable as a result of a<br />

reassessment which:<br />

n Includes Voluntary Disclosures and<br />

Resolution of a Dispute, and<br />

n Covers all tax types<br />

Funds will only be accessed with<br />

Take control<br />

of provisional tax<br />

payments and<br />

free up<br />

cash flow today<br />

www.tmnz.co.nz<br />

Our TaxFINANCE package allows us to<br />

pay your provisional tax for you. Why<br />

hand over money before you have to?<br />

• Authorised in one phone call<br />

• Rates from as low as 6% p.a.<br />

• Lending fee is deductible<br />

• No security or credit checks required<br />

For more information call 0800 729 829<br />

TMNZ - Financing SME Tax since 2003<br />

SMART TAX PAYMENTS<br />

an effective backdated date for the<br />

difference between the amount<br />

originally payable and amount payable<br />

as a result of a reassessment. Transfers<br />

of excess tax for all tax types will be<br />

allowed for deposit into a tax pooling<br />

account.<br />

Where a taxpayer transfers money<br />

to pay provisional tax with an effective<br />

date after terminal tax date, payment<br />

should be applied first to interest<br />

outstanding, then to the outstanding<br />

tax liability. The transfer of tax pooling<br />

funds between intermediaries will be<br />

allowed.<br />

This means?<br />

Essentially that IRD has more clearly<br />

identified the parameters with which<br />

businesses can use tax pooling.<br />

In addition, where IRD reassesses a<br />

taxpayer’s liability, the rules now allow<br />

for businesses to access tax payments<br />

for the additional tax they may need to<br />

pay for all tax types. Where reassessment<br />

occurs, tax pooling funds will only<br />

reduce exposure to UOMI, but not any<br />

penalties imposed.<br />

Prior to these rule changes, some<br />

taxpayers accessed tax pooling funds<br />

(with a back-dated effective provisional<br />

tax date) to pay outstanding GST<br />

liabilities in order to remove their<br />

exposure to penalties, as well as UOMI.<br />

Tax pooling was never intended to<br />

assist tax payments for businesses where<br />

payments are definitive.<br />

Tax Management New Zealand has been<br />

New Zealand’s leading tax intermediary<br />

since 2003, and is a partner with <strong>EMA</strong>. We<br />

can help you manage your provisional tax<br />

payments, maximise your cash flow, and<br />

minimise interest or penalty payments<br />

with our tax pooling facilities. Contact<br />

your accountant, or Tax Management<br />

NZ, for more detailed information.<br />

0800 829 888 www.tmnz.co.nz<br />

Icehouse kicks off Fast Pitch 2009<br />

Auckland University’s<br />

Icehouse has kicked<br />

off its Fast Pitch<br />

2009 competition for<br />

entrepreneurs.<br />

The real life<br />

Dragon’s Den scenario<br />

invites people to put<br />

their business ideas to<br />

a panel of judges, with<br />

prizes on the table.<br />

The Fast Pitch final on October 27 will have 10<br />

finalists competing for the main prize. Other categories<br />

are:<br />

n Best Intellectual Property Idea,<br />

n Best Funding Opportunity for Investors,<br />

n Best Presentation Skills and<br />

n People’s Choice award<br />

The overall winner will receive a prize package valued<br />

at over $15,000 including three months incubation in the<br />

ICE Accelerator.<br />

Last year’s Fast Pitch winner Todd Wackrow of mobile<br />

marketing company PocketVouchers said the event "was<br />

incredibly useful."<br />

The Icehouse has worked directly with 65 start-up<br />

companies and over 2,000 established companies.<br />

PAGE TMNZ 4 <strong>EMA</strong> Aug.indd <strong>EMA</strong> Business 1 Plus Magazine - Exclusive <strong>EMA</strong> news, advice, learning 24/7/09 and 10:40:53 networking AM


<strong>EMA</strong>Business<br />

2011 Cup event more than rugby<br />

Business benefits from Rugby World<br />

Cup 2011 will be much greater than<br />

just hosting key contacts at world<br />

class rugby games.<br />

The legacy from improving our<br />

sports and other infrastructure,<br />

accelerated road and other projects<br />

such as development of the Auckland<br />

waterfront, investor<br />

interest and boosted<br />

sectors such as tourism<br />

and marine, will result<br />

in big benefits for all<br />

New Zealanders.<br />

As a consequence<br />

New Zealand will<br />

earn the ability to<br />

promote itself as a<br />

destination for world<br />

events.<br />

These were key<br />

messages delivered to<br />

an audience of <strong>EMA</strong><br />

Northern members<br />

last month by Martin<br />

Snedden, chief<br />

executive of tournament<br />

organiser Rugby New<br />

Zealand 2011 Ltd, and Clyde Rogers,<br />

group manager of AucklandPlus.<br />

Workshops and toolkits will be<br />

made available by mid next year<br />

for all business (the Business Ready<br />

programme) along with a Visitor<br />

Ready programme to help target<br />

on estimated 60,000 international<br />

tourists, 2000 international media<br />

and 2500 international VIPs expected<br />

here for the six-week tournament<br />

(September 9, 2011 to Labour<br />

Weekend, October 24).<br />

World television broadcasts could<br />

reach four billion.<br />

RWC games will be hosted at<br />

Martin Snedden, chief executive of Rugby New Zealand 2011 Ltd<br />

13 locations around New Zealand<br />

with festivals aimed at all and sundry,<br />

to attract and entertain domestic<br />

and international tourists between<br />

matches.<br />

For email updates of business<br />

opportunities right now you can<br />

register on www.auckland2011.<br />

com/business.<br />

You are invited to draw<br />

up a business plan to identify<br />

opportunities talk about previous<br />

major events such as the America’s<br />

Cup and Lions’ rugby tours, and<br />

consider how you can cluster<br />

with others (if necessary) to gain<br />

tournament-related contracts.<br />

You can:<br />

n Supply goods and services,<br />

n Supply teams, sponsors, etc,<br />

n Offer sponsorship,<br />

n Tap in to the visitor market,<br />

n Contribute to infrastructure<br />

development,<br />

n Apply for subcontracts and<br />

form clusters,<br />

n Find opportunities specific<br />

to Maori/Pacific Island<br />

businesses.<br />

Your Guide to Business<br />

Opportunities around Rugby<br />

World Cup 2011 is at www.<br />

auckland2011.com/business.<br />

Register for free on the nationwide<br />

tender site www.tenderlink.com/<br />

businessopportunities2011 as well as for<br />

central and local government tenders,<br />

licence holder and sub-contractor<br />

requirements. Tickets go on sale early<br />

next year.<br />

E MArket<br />

B2B trading online for sales innovation, and<br />

to streamline your procurement process<br />

Supply your business clients from the comfort of your swivel chair<br />

BUYERS:<br />

n Your own e-commerce system set up ready to<br />

manager<br />

n Simple-to-use. No charge to buyers<br />

n Collaborate with other buyers to get bigger<br />

volume discounts<br />

SELLERS:<br />

n Sell business to business for small fee - no charge<br />

until your first sale<br />

n Load and update your own catalogue<br />

n Full control of your own online store<br />

n Full audit trail for procurement<br />

Not an <strong>EMA</strong> member?<br />

Call 0800 800 362<br />

Go to www.ema.co.nz to sign up to<br />

E MArket and for more details<br />

Our Vision. Your Success<br />

PAGE 5


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By Mike Burgess, Pathways Trustee secretary <strong>EMA</strong>Business<br />

Pathways Expo promotes health careers<br />

Pathways to Employment Trust<br />

held its first Health Sciences Expo<br />

at Massey University last month.<br />

The alignment to health-science<br />

based careers reflects skill sets still<br />

in demand from employers. A South<br />

Auckland based event will also be<br />

held.<br />

Associate Minister of Health<br />

Jonathan Coleman opened it, and<br />

he was impressed.<br />

The event targeted interested<br />

students from 15 schools on the<br />

North Shore and Auckland City<br />

region. A total of 255 students<br />

attended. Exhibitors received<br />

631 registrations from interested<br />

students.<br />

The feedback showed<br />

students were very happy with<br />

the structure of the day, and<br />

exhibitors noted the benefits of<br />

having a pre-selected audience.<br />

“A very well organised and<br />

very worthwhile event . . . . .<br />

. a great range of<br />

speakers with good<br />

messages . . . . the<br />

stands provided<br />

valuable information<br />

with people<br />

being available to<br />

individually answer<br />

questions. . .”<br />

Teacher<br />

“Interesting stuff.<br />

The information<br />

A Navy diving compression chamber attracted strong interest<br />

provided tells you what a<br />

career offers beyond the pay<br />

and study. I also received a lot<br />

of useful information about<br />

health careers outside the<br />

coverage of the medical school.<br />

Much more useful than seeing<br />

the careers advisor . . .”<br />

Teacher<br />

“A great day – interest level<br />

was extremely high with all<br />

students showing qualified<br />

interest in the stand”<br />

University teacher<br />

“Interest levels have been very high<br />

. . . . The targeted nature of this<br />

event has made this a very useful<br />

opportunity . . . .”<br />

Health Board spokesperson<br />

“A very good selection of students<br />

who seemed to be positively<br />

encouraged and enlightened by all the<br />

exhibitors”<br />

Armed Forces spokesperson<br />

QJumpers comes recommended<br />

“I used QJumpers because of the <strong>EMA</strong><br />

connection and discount offered, plus<br />

the ability to move the job forward in<br />

stages as we required. We started<br />

off with the basic product, Applicant<br />

Sourcing, and then moved up to the<br />

filtered service. Had we had more<br />

applicants I would have considered<br />

using the short list service.<br />

“I was very happy the ad was on the<br />

web the same day we contacted them.<br />

There was a slight delay of one day<br />

before the results were filtered for me<br />

due to demand.<br />

“I checked the filtering process against<br />

the applicants that were filtered out<br />

and I must say they were filtered very<br />

accurately. We got our staff member<br />

from the filtered applicants and have<br />

been very happy with her.<br />

“I would use QJumpers again - it was<br />

efficient and value for money!”<br />

Jean Berry<br />

Vision Consulting Group Limited<br />

Our Vision. Your Success<br />

PAGE 7


<strong>EMA</strong>Business<br />

Darren Mitchell, <strong>EMA</strong> Legal<br />

Court guidance helps defines casuals<br />

Hiring staff on a casual basis is a<br />

common practice but determining<br />

when an employee is actually<br />

‘casual’ or not is not always easy.<br />

The employment relationship may<br />

develop over time into something<br />

that can no longer be considered to be<br />

casual. This is where the employer’s<br />

obligations towards the employee can<br />

increase significantly. Ending such a<br />

relationship can become more difficult<br />

and costly for an employer who gets it<br />

wrong.<br />

There is no specific legislative<br />

definition in New Zealand for casual<br />

employment. But a recent case from<br />

the Employment Court does provides<br />

further guidance on what can be<br />

defined as casual employment.<br />

First, under s.6 of the Employment<br />

Relations Act 2000, in defining casual<br />

employment the “real nature of the<br />

relationship” will be considered in the<br />

event of a dispute. The Employment<br />

Court recently recognised this<br />

requirement in the case of Jinkinson<br />

v Oceana Gold (NZ) Limited CHCH<br />

CC 9/09.<br />

In this case, Ms Jinkinson was<br />

employed for 19 months by Oceana<br />

Gold in the mining operations<br />

as a Grade Controller until her<br />

employment was terminated on<br />

the grounds of redundancy. She<br />

challenged her termination in the<br />

Employment Relations Authority<br />

via a personal grievance for<br />

unjustified dismissal. The Authority<br />

determined that Ms Jinkinson was<br />

a casual employee at the time her<br />

employment was terminated. This was<br />

a crucial factor in its finding that the<br />

redundancy was justified.<br />

On appeal to the Employment<br />

Court, Ms Jinkinson challenged the<br />

Authority’s determination regarding<br />

her status as a casual employee. This<br />

was a preliminary issue for the Court<br />

to decide, before considering her<br />

claim for unjustified dismissal. The<br />

detailed judgment considered the<br />

issue over Ms Jinkinson’s employment<br />

status in depth, relying on its<br />

obligation to ascertain the “real nature<br />

of the relationship.”<br />

Couch, J noted that Ms Jinkinson<br />

was employed on a written<br />

employment agreement that stated<br />

she was a casual employee. While<br />

this was a relevant factor, the Court<br />

needed to look further into the<br />

nature of the relationship, as “the<br />

description of the relationship is not<br />

to be treated as determinative.”<br />

Reviewing legal authority<br />

from New Zealand and overseas<br />

jurisdictions, the Court found that<br />

a common indicator of permanent,<br />

as opposed to casual employment,<br />

was the obligation on the employer<br />

to provide ongoing work to the<br />

employee. In turn, the employee will<br />

have an obligation to carry out the<br />

work.<br />

The Court considered that there<br />

were a number of factors that led<br />

to its finding that Ms Jinkinson’s<br />

employment was actually permanent<br />

rather than casual. These included:<br />

n The employment agreement, while<br />

labelled ‘casual’, had no express<br />

term whereby the employee could<br />

decline work offered to her by the<br />

company.<br />

n The agreement required two<br />

weeks notice of an intention<br />

to take leave and required the<br />

employee to work overtime and<br />

shift leave.<br />

n The agreement had detailed<br />

provisions for termination for<br />

medical incapacity and redundancy.<br />

n The employee was required to<br />

seek permission to undertake<br />

secondary employment.<br />

n The employee worked “extensively<br />

and consistently” throughout<br />

her 19 months of employment,<br />

working on average 45 hours per<br />

week.<br />

n The employee was consistently<br />

employed on a rostered basis many<br />

weeks in advance.<br />

n The employee was paid wages<br />

in lieu of notice and redundancy<br />

compensation upon termination.<br />

The Court found that while the<br />

parties may have originally intended<br />

the employment relationship to be<br />

casual, this had been varied over<br />

time by the parties conduct. The<br />

original agreement had been replaced<br />

with an agreement for permanent<br />

employment. Many of the actual<br />

contractual provisions that existed<br />

between the parties were more<br />

consistent with permanent rather<br />

than casual employment.<br />

As Ms Jinkinson was found by the<br />

Court to be a permanent employee,<br />

she now had the ability to challenge<br />

her termination on the grounds of<br />

redundancy.<br />

Jinkinson v Oceana Gold provides a<br />

number of guidelines for employers<br />

who are dealing with casual<br />

employment. Even where the parties<br />

to an employment relationship<br />

may specifically agree in writing<br />

that employment is on a casual<br />

basis only, the real nature of the<br />

employment relationship is what<br />

will be determinative if the matter<br />

ends in dispute. Where employment<br />

is ongoing and consistent, and<br />

perhaps where a number of further<br />

obligations agreed over time,<br />

employment will more than likely be<br />

considered to be permanent, rather<br />

than casual.<br />

Employers who incorrectly employ<br />

casual staff may risk a potentially<br />

costly dispute and personal grievance<br />

action, as well as further liability<br />

for incorrectly paid, or unpaid<br />

holiday pay. Getting the relevant<br />

employment documentation correct,<br />

and ensuring that this is updated over<br />

time to accurately reflect the actual<br />

arrangement between the parties is<br />

crucial. <strong>EMA</strong> is available to advise<br />

employers on these particular issues.<br />

Contact Darren Mitchell at <strong>EMA</strong> Legal<br />

in Wellington on 04 470 9927 email:<br />

darrenm@emalegal.org.nz<br />

PAGE 8<br />

<strong>EMA</strong> Business Plus Magazine - Exclusive <strong>EMA</strong> news, advice, learning and networking


By David Lowe<br />

<strong>EMA</strong>Business<br />

Is there a psychopath at your workplace?<br />

One in 10 businesses have a<br />

corporate psychopath destroying their<br />

workplace or have someone capable<br />

of going ‘postal’, according to<br />

research by the Auckland University<br />

Business School’s research.<br />

Corporate psychopaths are described<br />

as “highly destructive and manipulative<br />

individuals with dark sides<br />

who have no remorse for their<br />

actions, which can result in serious<br />

issues for organisations and the<br />

people within them.” So says senior<br />

lecturer Dr Giles Burch.<br />

“They function within normal<br />

society, often with apparent success<br />

and the respect of their bosses,” Dr<br />

Burch adds. Dr Burch released his<br />

research on the topic late September.<br />

Most people will have worked<br />

with someone they think fits<br />

the description of a corporate<br />

psychopath. The condition is<br />

far more than someone they<br />

just didn’t get along with.<br />

There was probably<br />

widespread dislike for the<br />

person, but when the manager<br />

made initial inquiries, the<br />

person concerned has a fair<br />

explanation of what he did.<br />

“Doing what’s best for the<br />

business - doesn’t require a<br />

popularity contest.”<br />

Corporate psychopaths<br />

are very difficult to deal<br />

with. Even their manager can be<br />

intimidated by them. Most bosses<br />

will have a fair idea when all is not<br />

well, but it is difficult to substantiate<br />

a gut feeling in determining if<br />

a person is just unpopular, or is<br />

manipulatively destroying your<br />

team!<br />

The research showed female<br />

psychopaths are more dangerous<br />

and skilled in their manipulations.<br />

With management still dominated<br />

by males, even the most determined<br />

male manager may let the behaviour<br />

go should such a person turn on<br />

them by suggesting allegations of a<br />

sexual nature were in the wind.<br />

You can avoid the corporate<br />

psychopath<br />

The best insurance against<br />

becoming one of the 10% of<br />

businesses that hire a corporate<br />

psychopath is to thoroughly check<br />

out the people you hire beforehand.<br />

I’m not talking about complicated<br />

psychology assessments. But do<br />

use the simple tool of reference<br />

checking effectively.<br />

Some tips to ensure your<br />

reference checking is effective are:<br />

n Ask the candidate for referees for<br />

whom they have worked for a<br />

long period of time. At least 12<br />

months is a good guide.<br />

n Ask the candidate to give<br />

permission to check with their<br />

most recent employer, even if it<br />

is their current boss.<br />

"Doing what’s best for<br />

the business doesn’t<br />

require a popularity<br />

contest"<br />

n Make sure the referee is a<br />

relatively senior person, not<br />

a supervisor who might be<br />

doing the candidate a favour,<br />

or someone who might say<br />

anything to get rid of the person.<br />

n Ask the key question “Would<br />

you employ this person again?”<br />

Listen carefully to how they<br />

answer that question.<br />

n Ask follow-up questions. You<br />

really need to know if they<br />

would have this person back<br />

again.<br />

Case study<br />

A candidate supplied referees that<br />

she had worked for only briefly, so was<br />

asked to supply other references for<br />

whom she had worked with for at least<br />

a year. When she declined she was<br />

told her application would be taken<br />

no further. The candidate then sent<br />

the potential employer a torrent of<br />

abusive e-mails. Lesson: the employer<br />

considered themself to have had a<br />

lucky escape!<br />

Escape routes<br />

If you are unlucky enough to end<br />

up with a corporate psychopath in<br />

your team, the sooner you deal with it<br />

the better.<br />

Incompatibility is a valid reason<br />

to end an employment relationship,<br />

but no quick fix, and you should get<br />

advice from <strong>EMA</strong>.<br />

Using incompatibility can be helpful<br />

in that you do not have to attribute<br />

fault, and can take a mediation type<br />

role, but still retain the right to<br />

end employment if, after having<br />

gone through all the steps, the<br />

problem remains.<br />

An employer could wait<br />

for the corporate psychopath<br />

to overstep the mark and do<br />

something you can categorise<br />

as misconduct, or serious<br />

misconduct. Given the capacity<br />

for clever manipulation you<br />

could be waiting a long time for<br />

such circumstances. But most<br />

employers who start out on the<br />

long path of incompatibility get a<br />

good result and wish they had started<br />

sooner.<br />

An employer dealing with people<br />

like this needs to be clear about the<br />

problem they are trying to solve. You<br />

must not blame people for things you<br />

cannot substantiate. But if you can<br />

represent an issue so that it clearly<br />

sets out that the business has the<br />

problem, not the employee, and if it is<br />

a legitimate problem of the team not<br />

getting along, you may be able to work<br />

through to a satisfactory outcome.<br />

Our Vision. Your Success<br />

PAGE 9


Employment chat<br />

What employers are asking AdviceLine this month<br />

Drinking on the job? Days off for casuals?<br />

Q. A risk in the hospitality industry is, of course, staff<br />

access to alcohol. I’ m thinking of writing a policy or<br />

clause in our employment contracts that specifies no<br />

drinking in the restaurant, before a problem occurs.<br />

What can I say, and how can I enforce it? – Mark, Our<br />

Favourite Restaurant<br />

Dear Mark<br />

First of all there might be times when it’s appropriate<br />

for staff to drink in your restaurant, e.g. at work<br />

functions such as farewells for colleagues, or when they<br />

are off duty. So any policy must be specific to the nature<br />

of employment and the extent of drinking, not the<br />

restaurant per se (I suppose that’s obvious).<br />

When a person’s judgement or behaviour is<br />

unacceptable, or the employee breaches health or safety<br />

regulations, a contributing cause could be their abuse of<br />

drugs/alcohol. But without their admission of this, or a<br />

positive breath test result, you can’t point the finger at<br />

the cause. You must tread with caution.<br />

Nonetheless health and safety are serious<br />

considerations around food businesses and in kitchens.<br />

The other aspect I suppose you are referring to is the<br />

unauthorised use of the employer’s property (i.e. your<br />

alcohol) which could also amount to theft. So a clause<br />

in the employment agreement could say something to<br />

the effect:<br />

“I [the employee] understand I am not permitted to<br />

drink Our Favourite Restaurant’s alcohol or consume any<br />

other alcohol or non prescribed drugs during my hours of<br />

employment here except when offered by the employer on<br />

special occasions, failure to comply with this requirement could<br />

cause health and safety risks, or deter customers and affect the<br />

business’ reputation.”<br />

“My employer’s reasonable cause to suspect drug/alcohol<br />

use could result in my being required to be tested for my level<br />

of consumption; and a finding that I have not complied will<br />

result in a performance review and possibly termination if<br />

judged to be serious misconduct.”<br />

Meeting employee needs<br />

in challenging times<br />

We would caution against introducing drug testing<br />

without thorough planning and reason to suspect that<br />

use has caused problems or is connected to criminal<br />

activity as it is invasive and a legal minefield – talk to<br />

<strong>EMA</strong> first.<br />

A policy given to all staff, or an additional clause in<br />

your Policies and Procedures or House Rules, could<br />

save each contract being re-worked, and could say<br />

the same as above – preferably after discussion and<br />

agreement with staff. Each person needs to sign a copy<br />

of the policy by a given date.<br />

Talk to us for help with more specific wording<br />

and to ensure legality; and check out our A-Z<br />

Employers Guide on Drug Testing.<br />

Employee Assistance Programmes<br />

Trauma Support<br />

Change and Outplacement<br />

Telephone: 0508 664 981<br />

Email: theteam@seed.co.nz<br />

Web: www.seed.co.nz<br />

Career Coaching<br />

Conflict Resolution<br />

Wellness Programmes<br />

Q. Casual workers – what a nightmare working out their<br />

pay! When is a casual employee entitled to a paid day<br />

off? Surely if they are only working three days a week on<br />

average, they can take breaks the other two days? And<br />

what if they work on public holidays? – Dane<br />

Dear Dane<br />

All employees are entitled to the same minimum<br />

amount of paid leave for sickness (five work days a year<br />

cumulative for 20 days) and bereavement (maximum of<br />

three days per person its not restricted to the number<br />

of times a year). These incidences can fall on a work day<br />

FBSEE007<br />

><br />

PAGE 10<br />

<strong>EMA</strong> Business Plus Magazine - Exclusive <strong>EMA</strong> news, advice, learning and networking


Check out our special offer<br />

exclusive to <strong>EMA</strong> members.<br />

Go to www.ema.co.nz/memberbenefi ts or call 09 966 7478<br />

TEMP/CONTRACT<br />

ACCOUNTING<br />

EXECUTIVE<br />

TECH/OPS<br />

SALES/MKTING<br />

OFFICE SUPPORT<br />

<<br />

out of the employee’s control.<br />

The entitlement applies to casual,<br />

fixed term and permanent part time<br />

or full time employees.<br />

You need to assume your<br />

employee's honesty in good faith<br />

when they ask for leave. In the<br />

case of casual or part timers the<br />

employee is eligible after s/he has<br />

worked for the employer at least<br />

an average of 10 hours a week for<br />

a period of six months and not less<br />

than one hour in every week or no<br />

less than 40 hours in every month<br />

during that period.<br />

Full timers have to have worked<br />

six months continuously. Sick leave<br />

can be taken in advance with the<br />

agreement of both parties.<br />

The same qualifying criteria<br />

applies to bereavement leave but this<br />

leave cannot be taken in advance of<br />

working for you for six months.<br />

There are two categories of<br />

bereavement leave entitlement:<br />

n three days on the death of<br />

immediate family members -<br />

defined as spouse, parent, child,<br />

brother or sister, grandparent,<br />

grandchild and parents-in-law -<br />

and<br />

n one day on the death of<br />

any other person for whom<br />

the employer considers that<br />

the employee has suffered a<br />

bereavement. Factors to take into<br />

account include the closeness<br />

of the relationship with the<br />

deceased person, the employee's<br />

responsibility for any or all of<br />

the related ceremonies and other<br />

cultural responsibilities.<br />

It is also plausible for an<br />

employee to take two days to<br />

attend a tangi and a third day for<br />

the unveiling of the deceased’s<br />

headstone, or to attend a local<br />

memorial service or to attend to<br />

the affairs relating to the will of the<br />

deceased person.<br />

Bereavement and sick leave are<br />

paid at relevant daily pay for every<br />

day taken as sick or bereavement<br />

leave that would otherwise be a<br />

working day for the employee.<br />

Relevant daily pay is defined as the<br />

amount of pay that an employee<br />

would have received had he/she<br />

worked on the day concerned,<br />

and includes productivity and<br />

incentive payments, overtime and<br />

cash payment for board and lodging<br />

had they been received on the day<br />

concerned.<br />

When any employee works on a<br />

public holiday, s/he is entitled to be<br />

paid a time and a half for the hours<br />

worked and also to an alternative<br />

holiday. The Holiday Act 2003<br />

requires that the alternative holiday<br />

must be a whole day irrespective of<br />

the hours worked.<br />

See our A-Z Employers Guides on Casual<br />

Work, Sick Leave, Bereavement, Annual<br />

Leave and Public Holidays. Or just call<br />

AdviceLine for a chat to sort it all out.<br />

Our website has a sample employment<br />

agreement for casual workers too.<br />

By the <strong>EMA</strong> Advocacy team in<br />

consultation with <strong>EMA</strong> Advice, and<br />

based on real calls to <strong>EMA</strong>’s AdviceLine.<br />

The information in this article is a guide<br />

only and not to be used as business<br />

advice without further consultation.<br />

Start with our AdviceLine team at phone<br />

0800 800 362 (within New Zealand), 1800<br />

300 362 (from Australia) or 09-367 0909<br />

(for <strong>EMA</strong> Northern) or 04-473 7224 (for<br />

<strong>EMA</strong> Central), 8am-8pm weekdays.<br />

Alternatively, email adviceline@ema.<br />

co.nz, and read or download information<br />

such as the A-Z of Employing – a<br />

manager’s guide on more than 100<br />

specific topics, at www.ema.co.nz/<br />

advice.<br />

PAYROLL<br />

More New Zealand businesses use Ace<br />

Payroll than any other computerised<br />

wages program.<br />

Visit our constantly updated website at www.acepay.co.nz<br />

for employment law, legislative links, tax planning etc<br />

or call toll free on 0800 223 729 for a free demonstration kit.<br />

PAYROLL<br />

Our Vision. Your Success<br />

PAGE 11


By Business NZ’s CEO Phil O’Reilly<br />

Optimising the upturn<br />

When it comes to leveraging off the<br />

economic upturn, being prepared<br />

with the right skills and training is<br />

paramount.<br />

Some are saying the upturn has<br />

already started. Others are erring on<br />

the side of caution with the bumpy<br />

recovery theory. Personally, I think it’s<br />

going to be a very patchy recovery.<br />

While the July BNZ Capital –<br />

Business New Zealand Performance<br />

of Manufacturing Index<br />

suggested expansion, especially<br />

after steady improvements<br />

throughout most of 2009, the<br />

August slip to 48.9 gave us a<br />

timely reality check of caution.<br />

Whether the recovery<br />

fully kicks in during the next<br />

few months or next year, we<br />

cannot begin to prepare our<br />

workforce too soon.<br />

It’s been great to see so<br />

many businesses do all they<br />

can to keep staff on through these<br />

tough times, knowing that when the<br />

upturn comes, they will need them<br />

more than ever.<br />

Likewise, staff have been very<br />

flexible and understanding of the<br />

predicament their employers are<br />

in. Many have taken accrued leave,<br />

unpaid leave or even dropped hours<br />

down from full time to part time.<br />

What we need now to really<br />

come out of the downturn stronger<br />

than ever, able to capitalise on every<br />

opportunity is:<br />

1. A highly skilled workforce, and<br />

2. Export-driven growth.<br />

New Zealand is nowhere near<br />

fulfilling its capacity as a worldleading<br />

innovative exporting nation.<br />

But, with a domestic market of just<br />

four million, exporting is vital to our<br />

growth.<br />

"Research has consistently<br />

suggested 20% of New<br />

Zealand's workforce doesn't<br />

have the literacy and numeracy<br />

skills needed to perform at their<br />

best in their jobs."<br />

Capturing the untapped talent<br />

within our workforce is key. It’s about<br />

more than traditional education<br />

and technical knowledge. It’s about<br />

knowing how to take that knowledge<br />

and turn it into marketable IP,<br />

products and services.<br />

It’s about knowing how to<br />

commercialise our cleverness and sell<br />

it to the rest of the world.<br />

This is what we aimed to convey at<br />

the international business forum Go<br />

Global on 30 September. We heard<br />

some great New Zealand exporting<br />

success stories – from Fletcher<br />

Building, Glidepath, Animation<br />

Research and New Zealand Merino.<br />

Let’s learn from these.<br />

Of course to really get our ideas off<br />

the ground and out into the world,<br />

we need a workforce supportive of<br />

‘NZ Inc’ at every level. For this, we<br />

need a workforce of ‘good citizens’.<br />

Good citizenship plays out in the<br />

workplace through things such as:<br />

n Good teamwork<br />

n Contributing to the overall<br />

aims and objectives of the<br />

business<br />

n Emotional intelligence<br />

n A willingness to learn<br />

n Turning up on time<br />

n Resilience.<br />

All of these are often underappreciated<br />

attributes.<br />

Skills are the lever for a step<br />

change, but it’s important we<br />

get the basics right first, in order to<br />

build a strong foundation for their<br />

development.<br />

Currently, more than a million<br />

New Zealanders are not literate<br />

enough to actively participate at work.<br />

This affects the country’s productivity.<br />

Immigrants’ language skills would<br />

benefit from increased training.<br />

While the children go to school<br />

Specialist Employment Lawyers<br />

Our high success rate reflects our expertise. Our 13 lawyers specialise in employment law and only act for<br />

members. As part of a member-owned organisation, <strong>EMA</strong> Legal offers services that are excellent value.<br />

Strategic advice Practical solutions Skilled representation<br />

Key contacts<br />

Susan-Jane Davies (04) 470 9923 sjdavies@emalegal.org.nz<br />

Parvez Akbar (09) 367 0931 parvez.akbar@ema.co.nz<br />

Maree Kirk (03) 548 4513 mkirk@emacentral.org.nz<br />

PAGE 12<br />

<strong>EMA</strong> Business Plus Magazine - Exclusive <strong>EMA</strong> news, advice, learning and networking


and get taught English, the adults can slip through the<br />

cracks, affecting workplace literacy and numeracy. This is<br />

not simply whether people can read or write. It’s about<br />

a whole range of skills - how well people can do these<br />

things, their communication skills, how well people work<br />

in teams, and whether firms can introduce new technology<br />

and approaches.<br />

Research in many industries has consistently suggested<br />

that about 20% of New Zealand's workforce don't have<br />

the literacy and numeracy skills needed to perform at their<br />

best in their jobs.<br />

We are now poorer on a per capita GDP basis than<br />

most of the developed world. But, we can leapfrog the rest<br />

of the world in:<br />

n Innovation and IP, and<br />

n Skills formation – which is the most important thing in<br />

the productivity sector.<br />

More than ever, the saying "we had no money, so we had<br />

to be smart" applies to our situation in New Zealand.<br />

In order to propel New Zealand forward, the key for<br />

training providers is to know what businesses need and<br />

expect from the education system. This applies to both<br />

private and public sector educators.<br />

Employers often prefer private sector providers first,<br />

followed by polytechnics, and then universities. This is<br />

because they see private sector providers as:<br />

n Being more practical in focus and thus relevant to the<br />

workplace<br />

n Being more aware of the changing demands of the<br />

marketplace<br />

n Demonstrating more value through applied knowledge<br />

n Maintaining better employer engagement – which<br />

universities can often lack.<br />

Many graduates of traditional training establishments are<br />

not as qualified for the real world. There is a particular gap<br />

here when it comes to training for export success.<br />

This is why Export New Zealand (a division of Business<br />

New Zealand) is offering practical, comprehensive training<br />

packages to prepare exporters for maximising their<br />

business in international markets and driving New Zealand<br />

towards an export-led recovery.<br />

We’re running these through the export divisions of<br />

Business NZ’s four regional business associations: <strong>EMA</strong><br />

Northern, <strong>EMA</strong> Central, the Canterbury Employers’<br />

Chamber of Commerce and the Otago Southland<br />

Employers’ Association.<br />

We recognise the need over time to offer courses<br />

from the fundamentals for those new to exporting, to<br />

training for those who have either studied in the export<br />

field previously, or already have international business<br />

experience.<br />

The next Export New Zealand entry-level, ‘Export<br />

Fundamental’ courses in the region are in Tauranga on<br />

October 15 (Exporting<br />

Processes -Think<br />

Like an Exporter)<br />

and Hamilton on<br />

November 4 (Making<br />

the Most of Trade<br />

Shows).<br />

If you’re a business in<br />

any part of the export<br />

spectrum, I suggest you<br />

get in touch with your<br />

regional Export New<br />

Zealand representative<br />

Phil O’Reilly<br />

and find the training<br />

that’s right for you. You<br />

can find out more from<br />

the regional training sections on www.exportnewzealand.<br />

org.nz.<br />

It’s time to take New Zealand business beyond the<br />

limitations of geography and skills. By putting in place<br />

the right skills now, we can propel ourselves beyond<br />

the recession and into growth to conquer the world of<br />

innovative products and services. Let’s give the world<br />

something to buy!<br />

Certificate in<br />

Quality Assurance 2010<br />

Limited number of places available<br />

For people wanting quality information and training in<br />

quality<br />

n Gain the skills that will help you and your business<br />

“Work Smarter Not Harder”<br />

n Learn how to identify “Opportunities for Improvement”<br />

and improve your profile.<br />

n A recognised Level 5 certificate course providing a<br />

broad understanding of quality management<br />

This course develops a wide range of practical skills<br />

that can be applied to manage quality in all types of<br />

organisations and industries.<br />

By correspondence nationally with classroom options<br />

available in Auckland, Christchurch and other locations if<br />

numbers permit.<br />

Enrolments – open now, an early enrolment means<br />

you only pay the 2009 Fee<br />

Intakes start - 17 Feb 2010 Mid Year - 21 July 2010<br />

New Zealand Organisation for Quality<br />

Contact Tess Stewart at National Office Palmerston North.<br />

Ph: 06 351 4407, Fax: 06 351 4408<br />

Email: quality@nzoq.org.nz<br />

Web: www.nzoq.org.nz<br />

Our Vision. Your Success<br />

PAGE 13


Advertorial<br />

System software selection boosts productivity<br />

Electrex, formed in 1982 by director Rex Alder,<br />

specialises in the sourcing and supply of a diverse<br />

selection of local and international electrical<br />

hardware to customers throughout the country. The<br />

company’s range includes environmentally-friendly cable<br />

covers and electrical ducting manufactured from recycled<br />

waste plastics suited to underground use.<br />

To keep track of its 4000 different components and 400<br />

customers Electrex turned to MYOB EXO Business to keep<br />

track of everything, said Rex Alder.<br />

The company stocks Scame products from Italy which<br />

include industrial plugs, connectors, outlets, switches, and<br />

distribution and consumer boards, all manufactured to<br />

stringent European CEE Standards.<br />

Other suppliers include the Electroflex group of flexible<br />

conduit connections, Entrelec Terminals from France, and the<br />

Grantline range of New Zealand-made foot switches, batten<br />

holders, spiral ties, terminal boxes, meter boxes, and locking<br />

nuts.<br />

Electrex employs 10 staff at its Glenfield premises on the<br />

North Shore, along with sales agents in the lower North Island<br />

and the South Island.<br />

Electrex utilizes MYOB solutions, including modules from<br />

the MYOB EXO Business suite and MYOB EXO Payroll, since<br />

they first became available, and its been happy with the<br />

products and service on offer.<br />

“EXO Business is a proven system that’s easy to use and<br />

saves time,” Alder said.<br />

“All staff from accountants to dispatchers are trained to<br />

operate the software and use it regularly.<br />

“EXO Business gives our staff the ability to quickly drill<br />

down through materials, stock levels, billing, and packing slips<br />

to identify the correct component, as well as manage rolling<br />

stock tables on any identified range of components.”<br />

“The software is also configured to ensure orders are<br />

prepared and dispatched in a timely manner.<br />

“Purchase orders come through from some customers via<br />

Electronic Data Interchange (EDI) which generates a sales<br />

order in our system that we turn into a packing slip for use<br />

when we ship the required items.<br />

“Our matching invoice is then returned to the customer via<br />

EDI and matched for auto payment. The order is filled using<br />

available stock, with EXO Business automatically adding the<br />

weight and cubic size to the courier print out or truck docket.<br />

“It can be a complex process, and each part of the job is<br />

handled by a separate department,” Alder said.<br />

“But EXO Business ensures it runs smoothly, and with no<br />

time wasted.”<br />

As well as assisting in the distribution of orders, EXO<br />

Business has provided additional functionality when generating<br />

the monthly invoices.<br />

“EXO Business enables us to automatically match individual<br />

payments against invoices which have been sent out, and that<br />

gives staff a detailed review of each debtor’s payment history,”<br />

Alder said.<br />

“Not only can we keep track of client payments, we can also<br />

prepare statements and invoices easily for our head office and<br />

branches to ensure other staff are kept updated as well.”<br />

For more information on MYOB EXO Business go to myob.co.nz/exo/ema<br />

or talk to the EXO team today on 0800 MYOB EXO<br />

PAGE 14<br />

<strong>EMA</strong> Business Plus Magazine - Exclusive <strong>EMA</strong> news, advice, learning and networking


<strong>EMA</strong>'s TAX TIPS <strong>EMA</strong>Business<br />

On relocation and overtime meal allowance<br />

Recent changes enacted into legislation<br />

this month include clarification around<br />

the tax treatment of relocation payments<br />

and overtime meal allowances. These<br />

are intended to resolve a degree of<br />

uncertainty in the current law relating to<br />

their tax treatment.<br />

The amendments specify that in order<br />

for relocation payments to be exempt<br />

from tax, the payment must reflect<br />

actual expenditure incurred, and the<br />

expenditure must be incurred within<br />

certain time limits, generally by the end<br />

of the next income year following the<br />

income year in which the employee<br />

relocates. In addition, the expense must<br />

be on the list of eligible relocation<br />

expenses issued by the Commissioner.<br />

The proposed list is relatively<br />

expansive including such things as<br />

the cost of removal, transportation<br />

and storage (including the relocation<br />

and boarding of pets), certain costs<br />

associated with selling an existing home<br />

and acquiring a new dwelling, as well as<br />

the cost of health checks, immigration<br />

and tax advice associated with the<br />

relocation.<br />

In an attempt to restrict the<br />

tax exemption to cases of genuine<br />

relocations, there are also requirements<br />

in terms of the distance of the new<br />

location and what will constitute<br />

relocation.<br />

For an overtime meal allowance to<br />

be exempt from tax under the new<br />

legislation, the allowance will need<br />

to reflect either actual expenditure<br />

incurred by the employee or a<br />

reasonable estimate of expected costs.<br />

Documentation will be required for<br />

amounts over $20 per meal.<br />

In addition, it either needs to be<br />

stated in the employee’s employment<br />

contract that they are eligible for a<br />

payment in relation to overtime, or the<br />

employer must have a policy or practice<br />

of paying an overtime meal allowance.<br />

Student loan repayments sped up<br />

A Bill designed to encourage<br />

voluntary student loan repayments also<br />

passed its final stages this month.<br />

Individuals who make voluntary<br />

repayments on their student loans of<br />

$500 or more in a tax year, either by<br />

way of lump sum or smaller increments,<br />

are eligible for a 10% bonus. For<br />

example, a student who makes $1,000<br />

in voluntary repayments during a tax<br />

year will receive a $100 reduction in<br />

their student loan balance.<br />

The bonus will be credited to the<br />

individual’s student loan account on<br />

April 1 following the tax year in which<br />

the voluntary payment was made. For<br />

those repaying their student loan in full,<br />

the bonus will be provided at the time<br />

of final payment.<br />

The scheme is wide-ranging in<br />

Manukau Events Centre Special Offer<br />

its application, to overseas and New<br />

Zealand-based borrowers, graduates and<br />

those still studying. One point to note<br />

is that repayments must be made to<br />

Inland Revenue and not StudyLink in<br />

order to qualify for the bonus.<br />

Since the introduction in 2006 of<br />

interest-free student loans, the number<br />

of people repaying them in full each<br />

year has decreased. This legislation,<br />

which will apply to all payments made<br />

from April 1, 2009, is expected to<br />

reduce repayment times and reduce<br />

overall costs to Government.<br />

Further changes expected to<br />

apply from April 1, 2011 - will be<br />

incorporated in a Bill to be introduced<br />

later this year. They aim to simplify the<br />

current student loan system by moving<br />

toward its electronic management. The<br />

Bill will also introduce changes for<br />

borrowers employed in New Zealand,<br />

removing annual assessments and<br />

moving to a pay period repayment<br />

system. This should remove the need<br />

for end-of-year assessments and squareups.<br />

The proposal to deduct repayments<br />

from students’ holiday jobs while<br />

studying if they earn over $367 a week<br />

has been scrapped.<br />

Rohini Ram is an Executive Director at Ernst<br />

& Young. If you require any assistance<br />

with any of the issues discussed above,<br />

please contact Rohini on 09 377 4790 or<br />

email rohini.ram@nz.ey.com.<br />

$45 per person*<br />

including:<br />

Venue hire<br />

Car parking<br />

Morning tea<br />

Working lunch<br />

Afternoon tea<br />

*excludes GST<br />

Excellent Value<br />

Daily Delegate Package<br />

Small meetings for<br />

10 - 50 people<br />

09 976 7777<br />

www.pacific.org.nz<br />

Our Vision. Your Success<br />

PAGE 15


<strong>EMA</strong>Business<br />

Physios can save big money, keep staff pain free<br />

By 2006 Mt Cook Airline became<br />

concerned that Queenstown Airport<br />

had the highest lost time injury rate<br />

for any Air New Zealand site in the<br />

world – 2.5 injuries per month in May<br />

2006. Each injury was costing an<br />

average of $26,000. It transpired that<br />

customer service advisors and ramp crew<br />

were manually processing increasing<br />

volumes of baggage without the loading<br />

equipment or staff available at larger<br />

airports.<br />

They enlisted the assistance of<br />

Remarkable Physios to fine tune a<br />

Worksafe initiative. The lost time<br />

injury rate since went from 2.5 per<br />

month in 2006 to 300 days without<br />

any lost time injuries in 2007. The cost<br />

of new injuries per month in 2006<br />

was $65,000; the savings estimated at<br />

$650,000.<br />

A 23-year old fencer five<br />

months after an injury complained<br />

of non-specific low back pain.<br />

An eight-week work hardening<br />

programme was initiated to increase his:<br />

n Confidence to move<br />

n Strength of the trunk and<br />

associated leg muscles<br />

n Fitness to normalise normal<br />

function<br />

n Endurance to be able to<br />

confidently work for a full<br />

day performing all tasks for<br />

full normal duties<br />

After six months he reported nil<br />

further episodes of low back pain.<br />

A large engineering company had<br />

increasing reported incidences of<br />

shoulder pain in one specific area of<br />

the factory. The physio team brought<br />

in identified the area used power<br />

tools for a significant portion of their<br />

day. The report outlined:<br />

n Ergonomic suggestions on<br />

modification of equipment<br />

n Proposed adaption of worker<br />

technique<br />

n Workplace intervention to<br />

educate, train and successfully<br />

manage the worker<br />

discomfort.<br />

“Physiotherapists as movement<br />

specialists are ideally suited to<br />

treating and working with work<br />

place injury and problems,” said Ann<br />

Bennett, a physiotherapist in Kumeu,<br />

Auckland.<br />

One of her clients, an office<br />

worker, presented with neck and<br />

arm pain and a lot of dysfunction<br />

(stiffness) in her spine and the<br />

muscles in her arm. It was found her<br />

work station was causing significant<br />

postural stress. A work site<br />

assessment was organized. Many little<br />

things not quite right were put right,<br />

and they were inexpensive! With a<br />

proactive employer the issues were<br />

sorted in a week.<br />

In another case, senior<br />

physiotherapist Gillian McDowell<br />

found a large Invercargill bank had<br />

undergone a “make over” installing<br />

new Italian desks. They were split<br />

level, L shaped units but with no<br />

room to place a computer screen and<br />

keyboard together. Staff had to work<br />

at right angles to their screens. Neck<br />

pain was rife within the month.<br />

A physiotherapist identified the<br />

problem. The bank feared the desks<br />

would all need replacing, but the<br />

physiotherapist suggested a solution<br />

and within two weeks all neck pain<br />

reports ceased. The savings to the<br />

bank from the one hour intervention<br />

by the physiotherapist was $17,000.<br />

The ACC bill for construction<br />

work injuries is well over $30 million<br />

per year, with another $46 million<br />

from ongoing claims. ACC’s Injury<br />

Prevention Consultant, Fraser Fyfe,<br />

says many construction worker<br />

injuries come from physical tasks<br />

performed either incorrectly or<br />

repeatedly.<br />

Physiotherapists can help make<br />

sure quality care is available for<br />

your employees through workplace<br />

assessments, exercise programmes and<br />

individual treatment by professionally<br />

qualified health care providers.<br />

Full contacts for physiotherapists in<br />

your area are at: www.nzppa.org.nz Go<br />

to the “Find a Local Physio” tab. For<br />

further assistance call the NZPPA Office<br />

freephone 0800 697 720.<br />

PAGE 16<br />

<strong>EMA</strong> Business Plus Magazine - Exclusive <strong>EMA</strong> news, advice, learning and networking


<strong>EMA</strong>Business<br />

Getting more from your IT<br />

Moore's Law accurately predicted<br />

the doubling of computing hardware<br />

power every two years, but the<br />

amount of computer power in<br />

existence has not increased as fast.<br />

This has occurred because, combined<br />

with advances in software technology,<br />

it is now feasible to run multiple<br />

servers on a single piece of hardware.<br />

The biggest challenge facing<br />

businesses is how to control their<br />

costs without reducing performance.<br />

Here we focus on virtualisation,<br />

a specific approach that allows<br />

companies of all sizes to get more<br />

from their existing IT investment.<br />

Virtualization: why is it?<br />

A virtual machine is an<br />

isolated software container<br />

within a physical server<br />

with its own operating<br />

systems and applications<br />

as if it were a physical<br />

computer. A virtual<br />

machine behaves exactly<br />

like a physical computer<br />

containing its own virtual<br />

(ie, software-based) CPU,<br />

RAM hard disk and<br />

network interface card (NIC).<br />

Operating systems can’t recognise<br />

the difference between a virtual<br />

machine and a physical machine.<br />

The virtual machine operates as<br />

though it is a “real” computer.<br />

On a virtual system you can safely<br />

run several operating systems and<br />

applications at the same time on a<br />

single computer, with each accessing<br />

the resources it requires as and when<br />

it needs them.<br />

Why use it?<br />

Virtualization allows a single<br />

physical machine to run multiple<br />

servers. For example you may have<br />

several servers in your organisation,<br />

each running a single application<br />

such as email, accounting, database,<br />

CRM and file storage. As these<br />

servers reach maturity, become<br />

less reliable, and/or run out of<br />

storage capacity, they can now be<br />

consolidated on to a single physical<br />

server.<br />

With virtualisation your<br />

software is virtualised onto one,<br />

(or preferably two) physical<br />

machines and a seamless migration<br />

path from older hardware to a<br />

new robust virtual environment<br />

can also be achieved to increase<br />

performance and provide for better<br />

business continuity in the event<br />

of a hardware failure. Should a<br />

physical server fail, virtual servers<br />

can be quickly migrated elsewhere,<br />

allowing you to stay in business<br />

during its repair.<br />

"...for an additional<br />

virtual server to be<br />

deployed can take<br />

just hours..."<br />

Five Key Reasons to Adopt<br />

Virtualisation<br />

1. To reduce hardware costs to<br />

allow more performance from<br />

existing resources<br />

Reducing the number of physical<br />

servers can reduce hardware costs<br />

by up to 40% and break the legacy<br />

“one application to one server”<br />

model. You could save an average<br />

$3000 for each server virtualised<br />

(Gartner 2008)<br />

2. To increase productivity<br />

By having less physical and more<br />

virtual servers, the server to IT<br />

staff ratio decreases allowing IT<br />

administrators to increase their<br />

workload capacity by up to three<br />

times. They can spend less time on<br />

routine tasks and more on adding<br />

value to the organisation.<br />

3. To assist business continuity<br />

When a single physical server fails<br />

or needs servicing, other physical<br />

servers on the can automatically<br />

run additional virtual servers. By<br />

utilising multiple physical servers,<br />

critical services need never be down<br />

because of a single hardware failure.<br />

4. To reduce your carbon<br />

footprint<br />

Most servers run on average<br />

at 10-15% of their capacity.<br />

By rationalising the physical<br />

space required for your server<br />

infrastructure and deploying virtual<br />

servers, you make savings in space,<br />

cooling and power expenses.<br />

5. To add operational flexibility<br />

Traditionally, the deployment<br />

of a new server required<br />

procurement, build and<br />

installation, deploying<br />

the operating system and<br />

the loading of software<br />

applications. All this could<br />

take days or weeks for a new<br />

server to become operational.<br />

Now, for an additional virtual<br />

server to be deployed in your<br />

environment can take just<br />

hours, allowing your business<br />

to react to changes and requirements<br />

much faster.<br />

Who benefits most?<br />

Most businesses with more than<br />

three traditional servers will benefit<br />

from virtualising some of their<br />

capacity. Size of an organization is<br />

not important. Applications meant<br />

for small to medium usage, such<br />

as email and file servers, are ideal<br />

candidates. However virtualisation<br />

is not ideal for high-performance<br />

applications where one or more<br />

dedicated servers are needed for<br />

performance requirements.<br />

Need advice? Call Maclean Computing.<br />

They’ can steer you. Ph: 09 375 0169<br />

www.maclean.co.nz<br />

Our Vision. Your Success<br />

PAGE 17


By Mary MacKinven, <strong>EMA</strong> journalist<br />

How to bid for Australian<br />

projects<br />

Thanks to CER, New Zealand<br />

companies enjoy the rights of ‘local’<br />

service suppliers across the Tasman.<br />

While parochialism runs high<br />

over there, and even non tariff<br />

barriers in some sectors, Australian<br />

businesses overall are keen to work<br />

with Kiwis, said the NZ Trade<br />

and Enterprise presenters at <strong>EMA</strong><br />

Northern’s recent “Australian<br />

Economic Stimulus Package<br />

Opportunities Seminar”.<br />

Presenter Tim Green said there<br />

is are lot of expansionary dollars to<br />

capture there, and the opportunities<br />

are legion for NZ businesses. The<br />

Australian Federal Government<br />

budgeted $42 billion in February<br />

for ‘nation building’ also known<br />

as recession relief. Some of it is<br />

administered at federal level and<br />

much through various state/<br />

territory governments.<br />

Funding is earmarked for<br />

individual payments for instance<br />

to education programmes such as<br />

trade training, the Small Business<br />

and General Business Tax Break -<br />

an additional 50% tax deduction<br />

for eligible assets costing $1,000 or<br />

more.<br />

But most is aimed at medium<br />

to long term infrastructure<br />

projects for energy, roads, rail/<br />

bus, water and hospitals. Some<br />

projects are underway and others<br />

new.<br />

Business programmes relevant<br />

to New Zealand companies are:<br />

n Energy Efficiency Homes<br />

Package to insulate homes.<br />

Administered by the Federal<br />

Government;<br />

n Building Education<br />

Revolution (BER) to upgrade<br />

school facilities, science and<br />

language centres, etc;<br />

n Social Housing Initiative<br />

to build new dwellings and<br />

refurbish others, including<br />

defense housing in South<br />

Australia, administered by state<br />

governments.<br />

n Transport and Community<br />

Infrastructure for rail, 14<br />

road projects, local council<br />

infrastructure, administered by<br />

state governments.<br />

New South Wales: Projects<br />

focus on energy/power, roads<br />

and rail/bus such as the Sydney<br />

Metro Project, Royal North<br />

Shore Hospital private public<br />

partnership and police stations’<br />

communications infrastructure.<br />

Victoria: Projects focus<br />

on education, rail/bus and<br />

housing, e.g., new trains and the<br />

electrification of a rail.<br />

Queensland: The Department<br />

of Public Works is managing the<br />

work on roads, energy/power and<br />

rail/bus.<br />

Western Australia: Project<br />

focus is energy/power, water and<br />

education upgrades plus a hospital,<br />

a desalination plant and electric<br />

rail cars.<br />

South Australia, Tasmania,<br />

Northern Territory/ACT:<br />

project focus is education, housing<br />

and roads.<br />

Tools and channels to access projects<br />

NZTE, its agency ProjectLink, and the<br />

Australian-founded Industry Capability<br />

Network (ICN) are three key resources<br />

for finding out more and registering for<br />

opportunities.<br />

To access NZTE’s services, first approach<br />

your NZTE client manager or if you don’t<br />

have one, phone and ask to be channeled to<br />

the Australia team.<br />

ICN has staff in NZTE’s office in<br />

Wellington and its own website.<br />

ICN promotes the capability of<br />

Australian and New Zealand companies<br />

as prime or lower tier contractors for a<br />

selected number of large capital works,<br />

e.g., the $25 billion INPEX LNG project<br />

to pipe LNG to Darwin from offshore.<br />

Two NZ companies are sub contractors.<br />

All projects are outlined on www.icn.<br />

govt.nz under ‘Project Gateway’. It works<br />

for and with buyers (contractors) to find<br />

local producers and service providers. ICN<br />

evaluates, with confidentiality agreements in<br />

place, companies’ capability, and provides an<br />

unbiased list of suppliers to buyers.<br />

ProjectLink provides pre-tender<br />

opportunities or leads tailored to subscribers<br />

(who pay $1000 plus GST pa). Companies<br />

subscribe and gain password-protected<br />

access to a large and detailed list of many<br />

projects in Australia, sometimes years before<br />

the projects are known in public. The aim<br />

is to help companies know who to contact<br />

to sell their services to, and how to become<br />

involved. The Projectlink website lists<br />

about 200 projects currently, and indicates<br />

whether they are in the planning/concept<br />

stage, open for expressions of interest, out<br />

to tender or underway. Just sending an<br />

email from NZ won’t do. It’s valuable to<br />

demonstrate a presence in Australia and<br />

strong commitment to the project to win<br />

jobs.<br />

This year ProjectLink successfully<br />

connected parties in mining, dairy,<br />

pharmaceuticals, petrochemicals, oil and gas.<br />

Useful websites:<br />

www.economicstimulusplan.gov.au<br />

www.infrastructure.gov.au<br />

www.australia.gov.au<br />

www.nzte.govt.nz/australia<br />

www.icn.govt.nz<br />

www.projectlink.co.nz<br />

PAGE 18<br />

<strong>EMA</strong> Business Plus Magazine - Exclusive <strong>EMA</strong> news, advice, learning and networking


Go Global Report<br />

Hard work, risk, loss, profit that’s exporting<br />

Secrets of international success differed<br />

hugely for the four international business<br />

leaders kicking off the Go Global<br />

conference last month.<br />

John Brakenridge of New Zealand<br />

Merino stripped off shirt and tie on<br />

stage to reveal a merino shirt to help<br />

make his point.<br />

The inaugural Export New Zealand<br />

conference saw traders and service<br />

providers ask questions and convey<br />

views to Government ministers and<br />

officials.<br />

Success in new markets according to<br />

a top four included:<br />

Sir Ken Stevens Glidepath Group<br />

n Overcome undercapitalization, kiwi<br />

naivety.<br />

n Listen to the market. Give them<br />

what they want.<br />

Sir Ken described Glidepath in<br />

the US as now very competitive.<br />

They’re considered to operate the best<br />

workshop in their market there.<br />

Sir Ken said: “I was naïve about<br />

the obstacles, especially in the<br />

pre-qualification regime to bid, and<br />

the 100% performance bonds required<br />

against projects. (And you don’t offer<br />

product in metric measurements).<br />

In 2004 Glidepath bought land and<br />

built a factory in Dallas staffed with<br />

Americans. “We fully took on American<br />

market requirements.”<br />

Brian Dewar of Vitaco<br />

Health<br />

n You can learn a lot about<br />

the world from the<br />

NZ market. Test your<br />

competitive advantage at<br />

home.<br />

n Desk research the target<br />

market then go there.<br />

John Brakenridge, NZ<br />

Merino<br />

n There’s no silver bullet<br />

but 1000 things will<br />

incrementally help.<br />

n The golden bullet is customer<br />

intimacy. The 1000 things make this<br />

possible.<br />

“Ten years ago we asked ‘who is<br />

NOT using merino?’ The correction<br />

now accompanying the global recession<br />

is a return to traditional values, a<br />

consumer thirst for authenticity,<br />

integrity and substance in points of<br />

difference.<br />

Ian Taylor, Animation Research<br />

n Recognise and take opportunities.<br />

n Plan, change tack and make new<br />

plans.<br />

Ian gave the example of how, 18<br />

months ago, he went to work planning<br />

to tell staff the business was closing<br />

because of debt. When he arrived a<br />

staff member showed him the news:<br />

F&P Appliances’ had announced that<br />

day they were laying off 480 staff in<br />

Dunedin. Ian decided to delay his<br />

MC Susan Wood with CEO MFAT, John Allen<br />

announcement a week, but by then had<br />

hatched a way through. Orders since<br />

for animated graphic representations of<br />

sports events have leapt ahead.<br />

Government goals<br />

Economic Development Minister<br />

Gerry Brownlee said achieving income<br />

parity with Australia by 2025 will<br />

require NZ to reach GDP growth of<br />

1.5% more than Australia every year<br />

from now on or sustained growth of<br />

3.5-4% pa.<br />

“These are lofty goals, tough targets,<br />

and we are totally reliant on the people<br />

in this room.<br />

“We want to raise the performance<br />

of low value exports and we want<br />

to help our ‘star’ exporters though<br />

all are important – in manufacturing<br />

and services in particular there are<br />

opportunities. The Rugby World Cup<br />

2011 will provide large opportunities.<br />

Government is very appreciative of your<br />

work.”<br />

Special offers to attend Hong Kong trade fairs<br />

New Zealand businesses are invited to apply for special offers to attend<br />

Hong Kong Trade Fairs in October and November. Enjoy up to HKD1,800 hotel<br />

sponsorship* or HKD1,800 travel reimbursement* For details email peter.<br />

bosevski@hktdc.org or toni.wade@hktdc.org or phone 0061-2-9261-8911.<br />

Visit www.hktdc.com<br />

The following incentives are available to <strong>EMA</strong> members.<br />

n HKD1,800 Hotel Sponsorship to help cover the cost of your stay in our<br />

selected hotels OR<br />

n HKD1,800 Travel Reimbursement (conditions apply)<br />

n VIP Card to access Dragon Lounge to enjoy free internet, light snacks and<br />

meeting rooms<br />

n Business Matching to help find business partners<br />

(*conditions apply)<br />

Trade Fair Date Website<br />

HKTDC Electronics Fair<br />

(Autumn Edition)<br />

13-16 Oct<br />

hkelectronicsfairae.hktdc.<br />

com<br />

eAsia 13-16 Oct electronicasia.hktdc.com<br />

International Lighting Fair<br />

(Autumn Edition)<br />

International Building & Decoration<br />

Materials & Hardware Fair<br />

27-30 Oct hklightingfairae.hktdc.com<br />

28-31 Oct<br />

www.hkbdh.com<br />

Eco Expo Asia 28-31 Oct ecoexpoasia.com<br />

Sports Source Asia 28-30 Oct sportssource-asia.hktdc.com<br />

Optical Fair 4-6 Nov hkopticalfair.hktdc.com<br />

International Wine and Spirits Fair 4-6 Nov hkwinefair.hktdc.com<br />

Medical Devices and Supplies Fair 4-6 Nov hkmedicalfair.hktdc.com<br />

Our Vision. Your Success<br />

PAGE 19


In our regular snapshots of <strong>EMA</strong> member companies, we describe the business of<br />

one of our oldest Auckland members, Cambridge Clothing Ltd<br />

Quality underpins success<br />

If you think the recession is tough,<br />

imagine surviving two world wars, the<br />

Great Depression and every economic<br />

crisis since.<br />

In light of their rich tradition perhaps<br />

we could all take a leaf out of the<br />

experience of Auckland company<br />

Cambridge Clothing, established in<br />

1888. They have been <strong>EMA</strong> member<br />

since 1903.<br />

Cambridge Clothing’s managing<br />

director Joe Macky and brother Kim,<br />

who is marketing director, are great<br />

grandsons of the founder. Cousin Tom<br />

is a non executive director.<br />

Whereas the company’s shareholders<br />

spread across the Goodfellow family and<br />

the company is public though unlisted,<br />

Joe says Cambridge Clothing still<br />

considers itself a family firm.<br />

After its inception in 1867 the<br />

Macky family business became the<br />

country’s biggest wholesaler of general<br />

goods, a conglomerate owning woollen<br />

mills, and the Cambridge Clothing<br />

factory and others. When it all went<br />

into receivership at the start of the<br />

1930’s depression, the founder’s son<br />

and his son Dane (Joe and Kim’s<br />

dad, and a former president of <strong>EMA</strong><br />

Northern) bought Cambridge Clothing<br />

from the receiver with the help of the<br />

Goodfellow family. They knew they<br />

were on to a good thing! The growing<br />

urban market was seen<br />

as a better target than<br />

general/rural customers.<br />

Cambridge is now the<br />

oldest menswear maker<br />

and biggest clothing<br />

manufacturer in New<br />

Zealand, including the<br />

largest maker of men’s<br />

suits in Australia and<br />

New Zealand.<br />

Nonetheless this<br />

recession has been a big<br />

thing for the company,<br />

says Joe. “We had to lay<br />

off 10 people earlier this<br />

year and attrition has<br />

taken its toll. But we have<br />

to be careful because we<br />

will want to employ people again at<br />

some stage.” He is hugely relieved to see<br />

the light at the end of the tunnel.<br />

Modus operandi<br />

Cambridge Clothing exports 70 per<br />

cent of sales ($27 million in the year to<br />

June) to Australia, most to Melbourne<br />

where it established an office eight years<br />

ago. Melbourne staff numbering 40 are<br />

the hub of design, sales and marketing.<br />

Cambridge also has three of its own<br />

stores there, plus retail concessions<br />

(its own space and staff) in nine Myer<br />

department stores.<br />

A further 149 staff work at the<br />

50-year-old New Lynn factory cum<br />

Making it Lean By Barry Nolan<br />

Member profile<br />

By Mary MacKinven, <strong>EMA</strong> journalist<br />

Cambridge Clothing marketing director Kim Macky (l) and brother<br />

Joe, managing director.<br />

head office, where half the company’s<br />

output is made. The other half is made<br />

under contract in China with two<br />

Chinese nationals employed to quality<br />

control cutting, stitching and pressing<br />

operations. China, where technical<br />

investment from Europe has built a<br />

sound infrastructure, has become the<br />

major global source of woollen fabric.<br />

Joe says, “We do as much operational<br />

work as we can in New Zealand<br />

because it’s cost effective compared with<br />

doing it in Australia. And local manufacturing<br />

is important for some retail<br />

customers and for the made-to-measure<br />

suits – where there’s a worldwide<br />

growing trend.<br />

“There’s room to do more manufac-<br />

Buy several - your managers need<br />

their own 'hymn' sheets!<br />

“It’s a good and relevant read. I would recommend it to anyone intent on maximising returns for their business”<br />

– Peter Townsend, CEO, Canterbury Employers' Chamber of Commerce<br />

$39.90 incl GST (add $3 for post and packing) per copy.<br />

It shows you how Lean is the way to go to<br />

achieve greater productivity and reduce<br />

costs.<br />

Best of all Nolan describes a straightforward,<br />

step by step practical approach for any business<br />

to lift its performance.<br />

TO ORDER <strong>EMA</strong>IL:<br />

Gilbert.Peterson@ema.co.nz<br />

PAGE 20<br />

<strong>EMA</strong> Business Plus Magazine - Exclusive <strong>EMA</strong> news, advice, learning and networking


Member profile<br />

turing in China and it’s inevitable<br />

China will be a growing part of our<br />

activities. But we have no plans to close<br />

manufacturing here. We are committed,<br />

but maybe not at the current level of<br />

employment.”<br />

China has not been easy, though.<br />

Joe says New Zealand punches above<br />

its weight there thanks to the New<br />

Zealand-China Free Trade Agreement.<br />

“We are doing meaningful<br />

[outsourcing] business there but for<br />

them we’re pretty small. Our success is<br />

based on relationships rather than the<br />

numbers we bring to them.<br />

“We have to focus hard on quality<br />

and ensure supplies come from where<br />

we are told they come from. Things can<br />

change very quickly and you have to be<br />

present when your products are being<br />

made.<br />

“We pitch at a premium level so<br />

standards are very important.”<br />

Cambridge Clothing adopted<br />

Toyota’s Just in Time production<br />

methods in the 1980s that transformed<br />

the business, and during this recession<br />

adopted more Lean processes. Managers<br />

use video conferencing facilities<br />

extensively too.<br />

In the past 18 months the company<br />

has gone backwards in production<br />

volumes, so rather than boasting<br />

of growth, Joe is proud to have<br />

survived: “We’ve taken a good<br />

look at the business and made<br />

changes, cleared excess stock and<br />

cut back on fabric and garment<br />

orders, managed our cash flow<br />

and debtors very carefully and<br />

now have a stronger balance<br />

sheet than before the recession<br />

hit.”<br />

Words of wisdom<br />

“The great people we work<br />

with are the best thing about<br />

doing business here – the staff,<br />

customers and suppliers; but<br />

there is a shortage of them,” says<br />

Joe.<br />

And the size of New Zealand<br />

means exporting is necessary<br />

to find growth opportunities.<br />

Not that Australia has been easy<br />

for the men’s structured apparel<br />

industry for which CER offers no<br />

advantages.<br />

Joe recommends<br />

newbies in business<br />

have a clear idea of<br />

their strengths and<br />

point of difference,<br />

and stick to those.<br />

Cool in Joe Black The Tailor, custom-made suiting by<br />

Cambridge Clothing.<br />

Export New Zealand offers exposure at Dubai’s<br />

Big 5 in November<br />

Expose your business to 50,000 trade buyers from throughout<br />

the Middle East and elsewhere at the Dubai Big 5 2009<br />

construction expo. On offer is shared stand space at low<br />

cost plus briefings and business matchings. For details email:<br />

gilbert.peterson@ema.co.nz<br />

Global export qualifications available<br />

Access to globally recognised export qualifications will be<br />

offered next year through <strong>EMA</strong> Northern/Export New Zealand<br />

as a result of a partnership struck with the NZ School of<br />

Export based in Palmerston North.<br />

<strong>EMA</strong> will deliver workshops at its Auckland training rooms<br />

on the eight topics that lead to the Certificate of International<br />

Trade and Diploma in International Trade. They are for those<br />

who have either studied in the export field previously, or have<br />

experience in international business. Details are at www.<br />

ema.co.nz<br />

Marine-grade anodised<br />

aluminium with the latest<br />

stainless steel marine hardware.<br />

Fabric is fade, rot<br />

and water resistant.<br />

60+ colours available.<br />

Shademakers Showroom<br />

6 Morrin Road<br />

Pamure, Auckland<br />

Telephone 09 570 1112<br />

Facimile 570 1126<br />

Email info@shademakers.co.nz<br />

Our Vision. Your Success<br />

PAGE 21


*Terms and conditions apply: This offer is valid from 1 May 2009 to 31 December 2009 (“the Promotional Period”) and is only available to organisations who are members of<br />

the Employers and Manufacturers Association (Northern), Employers and Manufacturers Association (Central), Canterbury Employers’ Chamber of Commerce, and Otago<br />

Southland Employers Association during the Promotional Period. For full details of terms and conditions see www.ema.co.nz/activa.htm<br />

PAGE 22<br />

<strong>EMA</strong> Business Plus Magazine - Exclusive <strong>EMA</strong> news, advice, learning and networking


Spring Schedule - 2009 FREE briefings for all <strong>EMA</strong> members<br />

<strong>EMA</strong> Northern To register: Call AdviceLine on 0800 800 362; or email AdviceLine@ema.co.nz<br />

Waikato / BOP<br />

Mon, 19 October 9.30am - 11.00am Thames War Memorial Civic Centre, 200 Mary Street, THAMES<br />

Mon, 19 October 3.00pm - 4.30pm Sebel Trinity Wharf, 51 Dive Crescent, TAURANGA<br />

Tues, 20 October 9.30am - 11.00am East Bay REAP (Upstairs), Reap House, 21 Pyne Street, WHAKATANE<br />

Tues, 20 October 3.00pm - 4.30pm Huka Falls Resort, Huka Falls Road, TAUPO<br />

Wed, 21 October 9.00am -10.30am Distinction Rotorua, 390 Fenton Street, ROTORUA<br />

Wed, 21 October 1.30pm - 3.00pm Putaruru Timber Museum, 2337 Taupo Rd, State Highway 1, PUTARURU<br />

Wed, 21 October 5.00pm - 6.30pm The Big Apple Conference Centre, 584 Main South Rd, OTOROHANGA<br />

Thur, 22 October 9.00am -10.30am Kingsgate Hotel Te Rapa, 100 Garnett Ave, Te Rapa, HAMILTON<br />

Auckland<br />

Thur, 22 October 3.00pm - 4.30pm Papakura RSA, 40 Elliott Street, PAPAKURA<br />

Fri, 23 October 9.30am-11.00am Crowne Plaza, 128 Albert Street, AUCKLAND CITY<br />

Mon, 2 November 10.00am - 11.30am North Harbour Stadium, Davenports Lounge, Appian Way, ALBANY<br />

Mon, 2 November 3.00pm - 4.30pm Bruce Mason Centre, 1 The Promenade, TAKAPUNA<br />

Tues, 3 November 3.00pm - 4.30pm Greyhound Function Centre, Te Irirangi Drive, MANUKAU<br />

Wed, 4 November 10.00am - 11.30am Counties Inn, Rata Lounge, 17 Paerata Road, PUKEKOHE<br />

Wed, 4 November 2.00pm - 3.30pm Waipuna Conference Centre, 58 Waipuna Road, MT WELLINGTON<br />

Wed 4 November 4.00pm - 5.30pm Waipuna Conference Centre, 58 Waipuna Road, MT WELLINGTON<br />

Thur, 5 November 9.00am - 10.30am Titirangi Golf Club, Links Road, NEW LYNN<br />

Thur, 5 November 2.00pm - 3.30pm Institute of Chartered Accountants, 27 Ohinerau St, GREENLANE EAST<br />

Fri, 6 November 9.00am - 10.30am Lincoln Green Hotel, 159 Lincoln Road, HENDERSON<br />

Fri, 6 November 3.00pm - 4.30pm <strong>EMA</strong> Board Room, 159 Khyber Pass Road, GRAFTON<br />

Mon, 9 November 7.30am - 9.00am <strong>EMA</strong> Board Room, 159 Khyber Pass Road, GRAFTON<br />

Mon, 9 November 11.00am - 12.30pm Butterfly Creek, Tom Pearce Drive, MANGERE<br />

Northland<br />

Wed, 11 November. 3.00pm - 4.30pm The Northerner, Corner North Road & Kohuhu Street, KAITAIA<br />

Thur, 12 November 9.00am - 10.30am Scenic Circle Bay of Islands, Seaview Road, PAIHIA<br />

Thur, 12 November 3.00pm - 4.30pm Kingsgate Hotel Whangarei, 9 Riverside Drive, WHANGAREI<br />

<strong>EMA</strong> CENTRAL<br />

Register on-line at www.emacentral.org.nz For further information phone<br />

Sandra Webley (04) 470 9947; or email: sandraw@emacentral.org.nz<br />

Wed, 4 November 3.30pm - 5.00pm Copthorne Solway Park, High Street South MASTERTON<br />

Tues, 10 November 3.30pm - 5.00pm Quality Hotel Plymouth Int'l Hotel, Cnr Courtenay & Leach Sts NEW PLYMOUTH<br />

Thurs, 12 November 10.00am - 11.30am Collegiate Motor Inn, 122 Liverpool Street WANGANUI<br />

Thurs, 12 November 3.30pm - 5.00pm Te Manawa, 396 Main Street PALMERSTON NORTH<br />

Tues, 17 November 3.30pm - 5.00pm Angus Inn Hotel, Cnr Cornwell St & Waterloo Rd LOWER HUTT<br />

Thurs, 19 November 3.30pm - 5.00pm Rutherford Hotel, Trafalgar Square NELSON<br />

Tues, 24 November 7.30am - (Breakfast) Tatapouri Sports Fishing Club, No.2 Shed, Gisborne Wharf GISBORNE<br />

8.00am - 9.30am (Issues Briefing)<br />

Tues, 24 November 2.45pm - 4.15pm Napier War Memorial Conference Centre, Marine Parade NAPIER<br />

Wed, 25 November 3.00pm - 5.00pm Duxton Hotel, 170 Wakefield Street WELLINGTON<br />

PAGE 24<br />

<strong>EMA</strong> Business Plus Magazine - Exclusive <strong>EMA</strong> news, advice, learning and networking


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