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Waikato Business News February/March 2017

Waikato Business News has for a quarter of a century been the voice of the region’s business community, a business community with a very real commitment to innovation and an ethos of co-operation.

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12 WAIKATO BUSINESS NEWS <strong>February</strong>/<strong>March</strong> <strong>2017</strong><br />

Gamechangers for<br />

economic return<br />

Visitor numbers, and economic return for<br />

Hamilton and <strong>Waikato</strong>, are set to increase<br />

thanks to the launch of an exciting menu of<br />

“game changing projects”.<br />

The projects are being<br />

promoted by Hamilton<br />

& <strong>Waikato</strong> Tourism<br />

and will target the <strong>Waikato</strong><br />

River, Hamilton City<br />

Riverfront, the Kingitanga<br />

Story and Regional Events<br />

Strategy.<br />

Currently, the region is<br />

New Zealand’s fifth largest<br />

tourism region by value<br />

attracting $1.37 billion in<br />

visitor expenditure. We are<br />

one of only six regions out of<br />

29 with visitor expenditure<br />

of $1 billion or more, alongside<br />

Auckland, Wellington,<br />

Queenstown, Christchurch<br />

and Northland.<br />

The Hamilton & <strong>Waikato</strong><br />

Visitor Strategy 2014 aims<br />

to grow visitor expenditure<br />

for the region from $1 billion<br />

in 2014 to $1.35 billion in<br />

2025. This goal requires clear<br />

strategies to identify the tourism<br />

opportunities that have<br />

the greatest potential to drive<br />

growth, yield and dispersal in<br />

the region.<br />

The Hamilton & <strong>Waikato</strong><br />

Tourism Opportunities Plan<br />

released in July 2016 is a<br />

major piece of work commissioned<br />

by Hamilton &<br />

<strong>Waikato</strong> Tourism.<br />

It sets out to provide a<br />

framework for delivering new<br />

and improved tourism experiences<br />

that have the potential<br />

to drive growth in the local<br />

tourism sector and contribute<br />

to the regional economy. The<br />

game changing projects have<br />

a key part to play in this.<br />

The <strong>Waikato</strong> River is the<br />

longest river in New Zealand,<br />

the lifeline of the region, but<br />

it isn’t readily prominent or<br />

accessible for use by locals<br />

or visitors. The plan will see<br />

the river activated and access<br />

improved, and includes a<br />

focus on events that celebrate<br />

the river and on new visitor<br />

experiences. The project<br />

will support efforts to ensure<br />

highest standards of water<br />

quality and enhancement of<br />

the river margins.<br />

Emphasis will be placed<br />

on the Hamilton City<br />

Riverfront, supporting the<br />

implementation of the existing<br />

Hamilton City River<br />

Plan to create a vibrant and<br />

active riverside destination<br />

for residents and visitors.<br />

Elements fundamental to<br />

achieving the tourism vision<br />

are the Ferrybank development,<br />

<strong>Waikato</strong> Museum and<br />

ArtsPost, accommodation,<br />

and improved connectivity<br />

between Hamilton East,<br />

Hamilton Gardens, the river<br />

and the city.<br />

Māori tourism presents<br />

an opportunity for the region<br />

to tell its cultural story,<br />

with potential focus on the<br />

Kingitanga, the <strong>Waikato</strong><br />

River and our natural environment.<br />

The aim is to further<br />

develop authentic, cultural,<br />

local experiences to provide<br />

a greater understanding of<br />

Tainui to manuhiri (visitors)<br />

to the <strong>Waikato</strong>.<br />

A Regional Events<br />

Strategy will be a significant<br />

enabler. Expanding existing<br />

major, regional, niche and<br />

community events - and<br />

developing new ones - will<br />

benefit existing tourism businesses<br />

and enable the development<br />

of accommodation,<br />

transport, hospitality and<br />

attractions.<br />

It is important to develop<br />

an events programme that<br />

smooths seasonal fluctuations<br />

in the visitor industry, providing<br />

increased, more reliable<br />

employment and greater<br />

returns to business owners.<br />

Fieldays is currently<br />

<strong>Waikato</strong>'s only major annual<br />

multi-day event that attracts<br />

significant numbers of visitors<br />

from outside the region.<br />

A key objective for the<br />

Regional Events Strategy will<br />

be identifying and facilitating<br />

one or more major shoulder<br />

or off-season events.<br />

The development of a<br />

Regional Events Strategy will<br />

further secure, develop, promote<br />

and encourage events<br />

which generate financial and<br />

TELLING WAIKATO’S STORY<br />

> BY JASON DAWSON<br />

Chief Executive,<br />

Hamilton & <strong>Waikato</strong> Tourism<br />

social benefits to the region.<br />

The starting point is<br />

to conduct an audit of all<br />

events across local councils,<br />

iwi, business, industry and<br />

community groups to develop<br />

a comprehensive list of<br />

all events currently held<br />

throughout the region.<br />

Find out more: Hamilton<br />

& <strong>Waikato</strong> Tourism, Tourism<br />

Opportunities Plan: www.<br />

hamiltonwaikato.com/TOP<br />

Hamilton & <strong>Waikato</strong><br />

Tourism’s <strong>Business</strong> Events<br />

Employee reinstatement a surprise for workplace<br />

This is an important case<br />

where the employee<br />

was granted interim<br />

reinstatement without the<br />

employer being informed<br />

of the hearing or having an<br />

opportunity to defend it.<br />

Ms Eder-Entwistle was<br />

working 20 hours a week as<br />

a salon assistant at a hairdressing<br />

boutique when she<br />

got pregnant. Towards the end<br />

of her parental leave there<br />

was a text exchange where<br />

she advised her employer<br />

that she was ready to return<br />

to work and was told that<br />

business was slow and they<br />

couldn’t employ both her and<br />

her replacement.<br />

Since 1987 the Parental<br />

Leave and Employment<br />

Protection Act (the Act) has<br />

required employers to keep<br />

a woman’s job open when<br />

she went on parental leave.<br />

Some employers have found<br />

this very difficult to honour at<br />

times, but there is no excuse<br />

at all for an entry level position<br />

to be permanently filled<br />

in these circumstances.<br />

The Act contains a most<br />

unusual provision, that the<br />

woman can make an ex parte<br />

application for a hearing for<br />

interim reinstatement to her<br />

job. (It appears that this is<br />

the first time the provision<br />

ex parte has been used in the<br />

30 years the Act has been<br />

in force.) The Authority first<br />

looked at whether it should<br />

grant permission for the application<br />

to be heard without<br />

the other party being able to<br />

put their case. It concluded<br />

that Parliament included the<br />

provision ‘to protect vulnerable<br />

women, who might still<br />

be waiting to give birth, or<br />

else be dealing with the earliest<br />

stages of motherhood’. It<br />

also concluded that the wording<br />

of the Act required the<br />

Authority to hear it ex parte if<br />

the woman so applied.<br />

The Authority found<br />

that the employer’s refusal<br />

to allow Eder-Entwistle to<br />

return to work amounted to<br />

a dismissal. The usual tests to<br />

assess whether interim reinstatement<br />

were applied: is<br />

there an arguable case? If so,<br />

is there an adequate alternative<br />

remedy available to the<br />

applicant? Where does the<br />

balance of convenience lie?<br />

What is the overall justice of<br />

the case?<br />

In reviewing the overall<br />

situation, the Authority<br />

commented: ‘A contentious<br />

matter exists…and that will<br />

leave to a strained relationship<br />

and stress. That is often<br />

the case in such matters, but<br />

does not necessarily mean that<br />

reinstatement is not appropriate.<br />

Once reinstated, the<br />

parties must be “active and<br />

constructive in establishing<br />

and maintaining a productive<br />

employment relationship”…<br />

They will also be directed<br />

to participate in mediation in<br />

good faith.’<br />

An interim order for reinstatement<br />

was made and<br />

will remain in place for six<br />

months. It is expected that the<br />

substantive matter would be<br />

resolved in this time.<br />

It is easy to imagine the<br />

absolute shock the employer<br />

experienced on receiving the<br />

order and the ensuing tension<br />

in the workplace.<br />

There is also a short case<br />

on a frequently asked question<br />

about enforcing “no disparaging<br />

comments” in mediated<br />

agreements.<br />

Wanaka Sun (2003) Ltd v<br />

Woodrow<br />

When an employment relationship<br />

ends badly the parties<br />

often end up in mediation.<br />

Most mediation agreements<br />

contain some wording that the<br />

parties agree not to make any<br />

disparaging comments about<br />

the other. Clients frequently<br />

ask if it is worth enforcing the<br />

clause for what are normally<br />

minor but irritating breaches.<br />

In this particular case,<br />

the Wanaka Sun (the Sun)<br />

is a free community newspaper<br />

that relies on advertising<br />

revenue. When Ms Woodrow<br />

left her job at the Sun, they<br />

reached a mediated settlement<br />

that included a fairly standard<br />

clause that ‘the parties agree<br />

they shall not make derogatory<br />

comments about each<br />

other to any other person or<br />

organisation.’ Woodrow got a<br />

new job and made derogatory<br />

comments to a former Sun<br />

colleague about the Sun and<br />

its owner. The former colleague<br />

reported the comments<br />

back to the owner.<br />

The owner sought to have a<br />

penalty imposed on Woodrow<br />

for breach of the agreement.<br />

The Authority didn’t agree<br />

that Woodrow had used abusive<br />

comments or expletives,<br />

but found that she had<br />

HR AND THE LAW<br />

> BY ANNE AITKEN<br />

team provides a free service<br />

to organisers looking for a<br />

venue or service in <strong>Waikato</strong><br />

for their conference, business<br />

event or incentive. Assistance<br />

ranges from answering basic<br />

questions to obtaining quotes,<br />

preparing conference bids,<br />

and organising site inspections.<br />

www.hamiltonwaikato.<br />

com/business-events<br />

Phone: (07) 843 0056<br />

email: bureau@hamiltonwaikato.com<br />

Anne Aitken, HR Professional | Email: anne@anneaitken.co.nz<br />

described the Sun as being<br />

‘a stressful place to work’. It<br />

concluded that ‘it was possible<br />

to infer disparagement<br />

from the comment, because<br />

it could imply mismanagement,<br />

overloading of work,<br />

understaffing, bullying and<br />

so forth’. He distinguished<br />

between this situation and<br />

workplaces that are inherently<br />

stressful, like emergency<br />

services.<br />

Based on the minor nature<br />

of the comments and the<br />

admission from the Sun that<br />

there was no damage, a penalty<br />

of $250 was imposed on<br />

Woodrow and was to be paid<br />

to the crown – not to the Sun.<br />

It was as hollow victory that<br />

hopefully stopped the disparaging<br />

comments, but was it<br />

worth the time and effort?<br />

Banks’ customers “most indebted in history”<br />

Banks are increasingly<br />

having to adapt their<br />

service offerings as<br />

the customer demographic<br />

morphs from the wealthiest<br />

generation in history to the<br />

most indebted,” according to<br />

an expert.<br />

Sam Shuttleworth, PwC<br />

partner and banking and capital<br />

markets leader, says the<br />

level of debt was a significant<br />

issue revealed in a new PwC<br />

report.<br />

The Future of Banking<br />

through a Kiwi Lens looks<br />

at the performance of<br />

Australia’s big banks and<br />

raises questions about the six<br />

trends that are forcing them<br />

to consider how they operate<br />

today, in preparation for<br />

tomorrow.<br />

Almost all of New<br />

Zealand’s banks are<br />

Australian-owned and therefore<br />

face the same issues –<br />

most of these are global challenges<br />

that cannot be ignored.<br />

“Banks are increasingly<br />

having to adapt their service<br />

offerings as the customer<br />

demographic morphs from<br />

the wealthiest generation in<br />

history to the most indebted,”<br />

he explains.<br />

“In New Zealand, half of<br />

our population have some<br />

form of debt, with 24- to<br />

35-year-olds the most indebted<br />

age group, which brings<br />

up questions about how our<br />

banks service different, lesswealthy<br />

demographics and<br />

whether their appetite for risk<br />

is changing as a result.”<br />

The report says that banks<br />

must become simpler, smaller<br />

and more deeply connected<br />

to customers so that they<br />

can become more agile in an<br />

ever-changing world.<br />

Mr Shuttleworth says<br />

a bank’s ability to quickly<br />

adapt to suit customer preferences<br />

is going to be a key<br />

focus over the next few years.<br />

“This also poses some big<br />

questions for CEOs in the<br />

sector: Are NZ banks ready<br />

for a wider change to their<br />

banking models because of<br />

a change in their customers’<br />

circumstances? From an ageing<br />

population to one with<br />

different levels of wealth,<br />

banks will seek to be more<br />

responsive to our shifting<br />

demographics.”<br />

The report looks at changes<br />

in demographics, technology<br />

and consumer behaviour;<br />

Asiafication; the impact of an<br />

interventionist Government;<br />

and a subdued macro economy.<br />

Mr Shuttleworth says getting<br />

ahead of these trends<br />

and looking at them from<br />

a Kiwi perspective is really<br />

important for our own banking<br />

sector.<br />

“When we look at the<br />

report, we see six big trends<br />

affecting the financial sector.<br />

All of these can be looked<br />

at through a New Zealand<br />

lens – they have to be, if our<br />

banks are to stay relevant,<br />

profitable and evolve to suit<br />

the environment,” explains<br />

Mr Shuttleworth.<br />

As we approach 2020, the<br />

report outlines six priorities<br />

for banks and some proposals<br />

for how they can respond.<br />

They must organise themselves<br />

around the customer,<br />

simplify the organisation,<br />

make the most of their partnerships,<br />

focus on specific<br />

areas of innovation, embrace<br />

regulation and put their culture<br />

to work.

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