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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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