HOW MUCH DID YOUR PAY GO UP THIS YEAR?

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1 Our vision. Your success. Exclusive EMA news, advice, learning and networking Issue 11 + December HOW MUCH DID YOUR PAY GO UP THIS YEAR? New employment rules New public holiday entitlements Employing casual staff gets tougher In this issue: Tax anti-avoidance discussion Exclusive MBA scholarships offer China trade venture coming Motivate 2K5 Going Global! The List EMA Northern & Central are foundation members of and the major contributors to: Also LARGE your learning guide Business NZ

2 EMABU SINESS CONTENTS FEATURES NEWS 4/ How much did your pay rise? Pay went up an average of 3.5% last year. Did yours? Business NZ President re-elected Exclusive MBA scholarships offer to EMA members China trade venture prospected ADVOCACY Rate if a Yes response: 5 = Excellent: Consistently exceeds HSE Act compliance level, highest standard. 4 = Good: Regularly exceeds compliance level, standards continuously improving. 2 3 Do it, with responsiblity Paul Winter asks why tribal politics can submerge common sense. Unplugging the skills bottleneck Alasdair Thompson discusses the range of programmes needing expansion. 3 = Adequate: Meets minimum compliance level ADVICE 2 = Less than adequate: Meets compliance level some/most times, partial compliance, occasional lapses 1 = Poor: Nominal, token, irregular, partial compliance Your self assessment check list for workplace hazards Score yourself against best practice. New employment rules commence From now on all employment agreements must include a new provision. Your Christmas public holiday guide Victory for film industry practice Richard Searle celebrates the Court of Appeal ruling. Fixed term agreements tighten Defining fixed terms of employment just got harder. Tax anti-avoidance up for discussion EMA s Ernest & Young Tax Tips Cashflow funding expedites growth LEARNING Work hard. Play harder! Teamathon Challenge coming! Holiday house keeping for your PC s. Keeping your networks secure. New technology facilitates expansion: Case study - The Hansen ERP implementation Going Global The presentation line up Motivate 2K5 70% of your staff are less motivated than they used to be. EMA NORTHERN Chief Executive Alasdair Thompson Advocacy Manager Bruce Goldsworthy Manager, Employment Advice Peter Tritt Manager EMA Learning George Gerard Waikato Alan Fursdon Bay of Plenty Kim Stretton Khyber Pass Rd, Grafton, Private Bag Auckland Ph: or ema@ema.co.nz Website: Editor Gilbert Peterson Published by TPL Publishing Services Project Manager Sheila Marshall Advertising Sales Colin Gestro EMA CENTRAL Chief Executive Paul Winter Finance Manager Chris McLaughin Manager Training & OH&S Tony Ward Hawke s Bay Taranaki Manawatu/Wanganui Nelson PO Box 1087 Wellington Ph: Fax: ema@emacentral.org.nz Website: ISSN No PAGE 1

3 ADVOCACY ADVICE Do it, and think and plan too Nike became famous for their tag line Just Do It.We all aspire to improve our lot in life, individually, and as families, and communities, locally and nationally. Sometimes we all dream too that lady luck might smile on our aspirations though most of us are totally aware we create most of own luck. We know too we can achieve better outcomes overall through strategies that engage the greatest number of people moving in unison in the same general, agreed direction. Yet when it comes to improving our lot as local communities or nationally, how to get the maximum benefit from group action tends to be forgotten.we revert to tribal politics. We act primitively when fighting for a 51% control to justify imposing the will of the slight majority on the 49% minority. What is it that stops our local communities and the nation seeking the right balance of incentives and penalties that would encourage responsible and accountable choices by the greatest number of individuals and groups? Community issues calling out for immediate action seem only to be addressed if they fit with the ruling majority s ideas and plans.tribal politics fosters this type of win/lose mentality. Each political tribe acts as though it can only win by bringing discredit and loss of face to the other tribe. Consider tribal politics in the context of improving our economic performance, and the environment. The immediate focus is on a win for the tribe rather than on how the community can negotiate options for the longer term that will deliver economic and environmental good and for the good of all. The recent Allen Report makes an interesting case. It identified that Government could borrow the The recent decision of Government was to increase the power of unions (on behalf of their employees) at a time when the shortage of labour had already moved market power to employees. funds needed to tackle a cluster of major roading projects with the economic pay off from the funds invested repaid in 10 years from extra tax the Government would take from the resulting increased economic activity.the number of deaths and accidents on the roads would also be reduced.why couldn t the Government respond immediately by saying if the analysis is backed up by Treasury, it would be willing to borrow the money tomorrow and get on with it? Tribal values outweighed this.they favoured old school thinking that more investment in roads must be at the expense of better investment in hospitals and schools. Instead of action, in regions like By Paul Winter, CEO of EMA Central Wellington, more spending is going into more studies to give the appearance of action. Another form of destructive tribal behaviour in our communities is the use of a broad political majority to make decisions based on who should pay. Capacity to contribute is indeed an important consideration, but it should not be at the expense of achieving the right balance of incentives and penalties, to maximise our long term goals as a community. An example is a local council dominated by representatives of household ratepayers which decides to put a greater rate burden on business ratepayers without real understanding of the wider economic impacts. Another example is the recent decision of Government to increase the power of unions (on behalf of their employees) at a time when the shortage of labour had already moved market power to employees. Thankfully there is hope this madness might soon be challenged. The signs are that a more enterprising culture is emerging in New Zealand, and most political parties support the goal of lifting per capita growth. As employers and businesses it is difficult to avoid tribal warfare games: how should we share the national pavlova or, at your enterprise level, how should the value created be shared? We need to resist fighting win/lose games at all levels, in negotiations over collective agreements, as well as with government. Let s just get on and do it. by Alasdair Thompson, CEO EMA Northern Unplugging the skills bottleneck Two major bottlenecks holding back better business growth are first, how can we develop the skill levels of our people more rapidly, and second, how do we decongest our creaking infrastructure. Here I m going to talk only about skills. In 2002 a Labour Dept Survey found 39% of firms said the shortage of labour skills was holding back their expansion; 42% of small firms said they needed skilled people or their growth would be stunted, and since then the situation has got worse. Unemployment is down to 3.8%, a level not seen for 17 years; while the Department of Labour s Job Vacancy Monitor recorded a 13% increase in job vacancies in the year to September It s a great problem to have! But low unemployment on its own is not an adequate indicator of growth performance.we need to overtake Australia s rate of growth.australians average weekly pay before tax is about $280 more than ours. If we are to attract skilled people here, and keep New Zealand an attractive place for our people to live and work, we need to lift our growth rate further. Or see our young, bright and skilled people going offshore to be paid more money. Skills development should not be reactive. The return on investment in skills development is very positive. Research in South Australia in 2001 showed staff with formal training can be up to 230% more productive than their untrained colleagues doing the same job. In 2003 a Business New Zealand survey found 94% of firms agreed that training and skills development had a positive impact on productivity and staff motivation. 77% agreed training has a positive effect on profitability. Benefits include: Higher productivity People with more skills are more innovative, work better with new technology and work practices. Improved customer service. Less rework, wasted time and materials and fewer mistakes and accidents. Taking on new responsibilities that reduce skill shortages. Increased morale with fewer staff taking time off. Skills shortages may be with us for the long haul.and we are ageing, and becoming more culturally and ethnically diverse. 37% of our working population is over 40 years of age 22% of our working age population were born overseas 22% of all our people under 20 are Maori, and 20% of us under 20 are of Pacific Island background. It seems plain that employers who can make use of cultural diversity will have a greater pool of talent to draw upon. As well, we need to attract women back to work after they have begun a family.to do this, working hours - for them and for older people, should be made far more flexible.varying hours of work will also spread the load on our roads and other infrastructure. EMA is looking for ways to improve business relationships between schools and industry.we applaud businesses that have made it part of their business to form partnerships with schools in their neighbourhood. The relationship between companies and schools could be strengthened through: School based apprenticeships Manufacturing career pathways Adopt-a-school programme Try-a-trade programme Teacher release to industry programmes and vice versa But what can be done to meet the immediate skill shortage challenge? The following are far from exhausted. Immigration We applaud the recent changes to push people with skills higher up the ADVICE ADVOCACY NEWS queue of those who want to migrate here. The skilled and business category now accounts for 60% of new migrants residence approvals. Immigrants are valuable.they: bring new skills, new ways of doing things, enhance professional and entrepreneurial activity, and add spice to a workplace But many employers appear reluctant to take them on. Economic consultants BERL found in 1998 immigrants contributed more in taxes than they consumed in tax funded services. On an age adjusted per capita basis, each migrant between 18 and 64 years on average contributed over $7500 in income tax compared with $7600 for the corresponding New Zealand born population.they also accounted for about $7400 of government services expenditure compared to $8,200 for New Zealand born individuals. (Ironically Kiwis living across the Tasman are the wealthiest group of non- Australian born people - better off than Australians themselves!) But net immigration is declining, to around 10,000 people a year, well below the 42,500 in the June 2003 year. New Zealand needs an active immigration campaign in targeted overseas markets. The Straight to Work programme funded through WINZ to train unemployed people into work is another postive measure.the extra $8.9 million to fund 1000 more modern apprenticeships announced in October was very welcome - the total number of apprentices by next June is expected to be What business needs to do now is target the people to take on as apprentices, thereby creating a greater demand, and obliging Government to unzip its bulging vaults to help fund them as well. PAGE 2 PAGE 3

4 NEWS By Gilbert Peterson, EMA Northern How much did your pay go up this year? ADVICE NEWS Wages & salaries went up 3.5% for the year ended July 2004, less than last year s 3.83%, according to the National Employers Wage & Salary Survey: Did yours better this average? The survey is the country s longest established and most comprehensive measure of remuneration trends. Participation in it rose 14.2% to 691 employers, covering 107,000 employees in 211 positions across 19 job sectors. In the tables on these pages you may find the results for a position like yours. Or go to ema.co.nz/news for further details. This is the 10th year EMA Northern has run the survey on behalf of EMA Central, Three year rolling average of selected pay rates Production Worker (Semi skilled) Electronics Technician Marketing/Business Development Manager Senior Management Summary 1997 to 2004 Registered Electrician Toolmaker Managing Director ( Employees) Basic Car Perfrmnce Super % Medical % Wkly Salary Provided % Bonus Ins Hrs 1997 $106, % $20,297 $9, % $1, % $116, % $24,133 $11, % $2, % $128, % $30,529 $10, % $2, % $136, % $37,441 $13, % $2, % $133, % $30,642 $12, % $2, % nd Tier Managment Summary 1997 to 2004 Basic Car Perfrmnce Super % Medical % Wkly Salary Provided % Bonus Ins Hrs 1997 $62, % $8,331 $5, % $1, % $72, % $10,862 $5, % $1, % $74, % $11,765 $5, % $1, % $76, % $12,562 $5, % $2, % $79, % $13,584 $6, % $1, % 48.1 Canterbury Employers Chambers of Commerce and the Otago-Southland Employers Association. The increase of 3.5% is ahead of official Labour Cost Index figures (2.2%) largely because the Employers Survey measures full time positions, and increases in pay, not decreases. (42% of the Statistics NZ sample recorded a zero pay increase for the June quarter compared to the previous year.) A striking feature of this year s survey is that ordinary employees pay went up (3.5%) more on average than middle (3.1%) or senior management (3.2%). The figures indicate the labour market is working well in these times of labour and skills shortages, said Alasdair Thompson, EMA Northern s chief executive. The figures show that laws such as the Employment Relations Law Reform Act that give more power to employees are not needed; they already have it. 78% of the sample s respondents gave their employees pay increases of three per cent or better. Another interesting figure emerging from the survey data is that the average pay increase expected during the current year to June 30th, 2005 is 3.1%. Management s expectations for pay increases in 2003 for the 2004 year were only slightly low at 3.38% compared to the outturn of 3.5%. Pay for senior managers was expected to go up 3.88% but reached just 3.2%; for middle managers 3.41% was expected but they got just 3.1%; but for other employees, wage predictions were exceeded % was expected but it rose 3.5%. This was a reversal of the previous year when management tended to undershoot; they expected 3.38% but paid out 3.86%. Pay stakes winners, bigger winners The pay year was remarkable for registering faster pay rises for skilled and general employees than their managers. Whereas the pay and other remuneration of senior managers and second tier managers went up an average of 3.2% and 3.1% respectively, the pay for ordinary employees rose 3.5%. For example, while the ordinary pay of a chief executive of an organisation employing 50 to 199 employees went up an average of $9500 or 6.8% to $148,740, his/her bonuses fell $11,575. (The sample size was 70. See tables for more details). On the other hand, pay for truck drivers climbed 14.8% to an average national base rate of $34,248 (sample= 347); electricians pay went up 11.18% to an average base of $48,694 (sample=156); and information systems manager rose just 1.1% to $82,325 (sample= 83). The average petrol mechanic was paid 3.78% more on top of their 9.54% increase in the previous year, to reach a base of $36,076 (sample=235), with unskilled warehouse storepersons seeing a hefty 6.53% increase to get base pay of $25,683 (sample = 453) Some vocations such as toolmakers saw their national average correct a few points from their previous year s 20% + increase. The survey also gathers data on regional differences, and redundancy and overtime practices, along with the remuneration stats for upper, median and lower quartile bands for most jobs. Data should be considered in terms of trends over two to three year time periods to undertaken in July this year. even out sampling changes. The survey was More data is at MANAGING DIRECTOR ( EMPLOYEES) No of Employees National Average 117, , , , , , ,740 Basic Remuneration ($) Change Change -2% +6.8% GENERAL MANAGER ( EMPLOYEES) No of Employees National Average 96, , , , , , ,133 Basic Remuneration ($) Change Change 9.5% -1.0% GENERAL MANAGER (UNDER 50 EMPLOYEES) No of Employees National Average 81,682 81,052 83,578 83,822 91,100 97,087 93,368 Basic Remuneration ($) Change Change + 6.5% -3.8% HUMAN RESOURCES/PERSONNEL OFFICER No of Employees National Average 44,377 46,839 46,448 48,448 50,275 48,936 50,851 Basic Remuneration ($) Change Change + 0% +3.9% ACCOUNTS CLERK No of Employees National Average 28,071 29,698 29,359 35,311 37,691 38,567 39,865 Basic Remuneration ($) Change Change +2.3% +3.4% WAREHOUSE/STOREPERSON (UNSKILLED) No of Employees National Average n/a n/a 21,789 24, ,107 25,683 Basic Remuneration ($) Change Change % PAGE 4 PAGE 5

5 ADVICE EMABUS INESS New employment rules risk farce To comply with the recent amendments to the Employment Relations Act employers must add an employment protection provision to all new agreements by December 1st, 2004, and to all existing agreements no later than December 1st, The purpose of an employment protection provision is to provide protection for employees whose employment would be affected by a restructuring of the organisation they work for. A restructure includes contracting out part of the business, or selling, or transferring the business to another person or organisation. The provision section must include: a process that the employer will follow when negotiating with a new employer about the restructuring of the business as it relates to employees affected; and the matters that the employer will negotiate with the new employer concerning the affected employees terms and conditions of employment, including whether they would transfer to the new employer on the same terms and conditions; and the process to be followed at the time of the restructuring to determine what entitlements, if any, are available for employees who do not transfer to the new employer. (A sample employment protection provision is available to EMA members at ) As well as including an employment protection provision in all employment agreements, the new law also makes protection available to a specified category of vulnerable employees during a restructure. Vulnerable employees are those who provide caretaking, laundry services and orderly services in specified sectors, and all employees working for cleaning service businesses or food catering firms. Government can review and add other types of employees to the list of vulnerable employees at any time. In the event of a restructure, a vulnerable employee may elect to transfer to the new employer on the same terms and conditions of employment. If the new employer makes redundant those electing to transfer, they will be entitled to redundancy compensation. If redundancy compensation is not set by their employment agreement, the employee must bargain with the new employer for redundancy entitlements. If they cannot reach an agreement over the redundancy, the Employment Relations Authority is by Anne Shirley LLB (Hons) BA, AdviceLine consultant, EMA Northern empowered to determine what the entitlement will be. In this scenario a restructure includes the termination of a contract or arrangement if the work being carried out under it is to transfer to another contractor, or done inhouse. For example, if a business was unhappy with their cleaning contractors and decided to cancel its contract with company A and gave the contract to company B, the employees from company A could elect to transfer to company B. No, it s not intended to be a farce. It means when a company wants to change its suppliers, it may well end up with exactly the same cleaners with a different employer and different company uniform. Any redundancy that an employer decides is necessary will need to be genuine in that the staff involved will need to be genuinely superfluous to the company s requirements. A new employer will be unable merely to negotiate redundancy compensation and then hire new staff to fill the same positions. The effect of these compulsory redundancy provisions in force from December 1st 2004 remain to be seen. However there is no doubt they have the potential to severely limit the freedom of action of companies that want to change their cleaning and catering arrangements. By Damon Young LLB, BA Christmas and New Year public holiday entitlements: Get ready to pay Among many changes to employee holiday entitlements introduced by the Holidays Act 2003 was a revamp of the rules relating to when Christmas and New Year public holidays fall on or across a weekend. As it happens, these changes took effect in a year where Christmas and Boxing Day fall on a Saturday and Sunday respectively, as do New Year s Day and January 2nd. Under the previous law, when Christmas and Boxing Day fell on a Saturday or Sunday their observance was moved to Monday and Tuesday. Observance of these public holidays YES Your Public Holidays: Christmas = Saturday 25th December New Year = Saturday 1st January YES Your Public Holidays: Boxing Day = Sunday 26th December New Year Holiday = Sunday 2nd January Saturday, and that day is not otherwise a working day, the public holiday to be observed moves to the following Monday.The same applies if any of those days falls on a Sunday, excepting that the observed public holiday moves to the following Tuesday. If Saturday or Sunday is normally a working day for that employee then any of those four public holidays will be observed on the day concerned. The change means there will be no noticeable change for Monday to Friday workers; they still get their Christmas and Boxing days on Monday and Tuesday. Employees who only work on weekends will take their Christmas and Boxing days on the weekend.the Act Is Saturday normally a working day for you? Is Sunday normally a working day for you? ADVICE and employees vary the days on which they work. Some employees may argue they habitually work Saturdays and Sundays and therefore those are their working days. A clear statement by their employers will help determine who gets a public holiday and when. EMA s position on these issues is, that if an employee is rostered on in accordance with their employment agreement to work, then that is their working day. If they have not been rostered on to work, then it is not a working day for the purposes of this part of the Holidays Act. Should an employee be required to work on their public holiday, they will be entitled to payment at time and a NO Your Public Holidays: Christmas = Monday 27th December New Year = Monday 3rd January NO Your Public Holidays: Boxing Day = Tuesday 28th December New Year Holiday = Tuesday 4th January Business NZ President re-elected The council of Business New Zealand re-elected Business NZ as was Stephen Collins who is Terry Arnold as President following its Annual Chairman of Harcourts International Ltd based in General Meeting last month. Mr Arnold who is Canterbury. Manager, Industry and Employment Affairs for Business NZ s chief executive Phil O'Reilly Air New Zealand, is also President of EMA welcomed the continuing commitment of Northern. business practitioners from many New Zealand Chief Executive of New Plymouth District Council companies, in particular the regional representative strength from both the North and South Rodger Kerr-Newell who is President of EMA Central was re-elected Vice President of Islands. Terry Arnold would change regardless of the circumstances of the employee. The key difference under the new law is that observance of public holidays (with their associated requirements for a paid day off, and time-and-a-half for time spent working etc) is tied to the issue of whether Saturday or Sunday would otherwise have been a working day.this is the relevant daily pay issue rearing up already to surprise and confuse us. Section 45 of the Act says that where Christmas Day, Boxing Day, New Year s day, or 2nd of January falls on a limits the number of public holidays over the Christmas and New Year period to four days, which means for employees who ordinarily work Saturday through to Tuesday, the observance of Christmas and Boxing Day will remain on Saturday and Sunday.They have become entitled to at least time and a half, plus a paid day off in lieu for each day, depending on the terms of their employment agreements. The issue of where the public holiday falls becomes more complicated where companies set their rosters in advance half, as well as a paid day off in lieu of the holiday. The accompanying chart may help you determine the day on which to observe the public holidays. NEXT STEPS If you have any doubts about how to apply this part of the Holidays Act to your own situation, please contact Adviceline to discuss it. Tel or PAGE 6 PAGE 7

6 ADVICE EMABUS INESS By Richard Searle, LlB. EMA Central By Ben Thomas, AdviceLine consultant. EMA Northern ADVICE BACKGROUND BRIEF Mr Bryson was engaged by Three Foot Six as a model technician working on the Lord of the Rings films. When his department was downsized he lost his job and lodged a personal grievance. The Employment Relations Authority examined the issue of whether he was an employee or a contractor, and determined he was a contractor given the clear intention of the parties, and the nature of the industry. As a contractor, he was not entitled to bring a personal grievance. Mr Bryson successfully appealed to the Employment Court. Judge Shaw overturned the decision of the Authority. She found Mr Bryson to be an employee. She held that the relationship was characterised by the sort of control and integration indicative of a contract of service. Three Foot Six appealed to the Court of Appeal, arguing strongly that the Employment Court s decision would harm New Zealand s fledgling film industry just as it was achieving international prominence. The Court of Appeal agreed. NEXT STEPS In spite of the Court of Appeal s decision, it would not be wise to rely solely on a written contract for services and industry practice to claim an independent contractor is not in reality an employee. The element of control exerted over the worker by the principal, the worker s integration into the organisation, and whether the worker is in business for him or herself, will still be important considerations. What the Bryson decision reinforces is the need for a properly written contract for services to be in place Victory for film industry practice In a decision sure to have the Labour Government frantically drafting a Third Amendment Bill, the Court of Appeal has decided, in effect, that the Employment Relations Act does not apply to the New Zealand film industry. In Three Foot Six Limited v Bryson a majority of the Court of Appeal concluded that the application of the Employment Relations Act to the film industry would significantly increase costs and create uncertainty in terms of payments like annual and sick leave, and the opportunity to bring personal grievances.therefore, the Court concluded, Mr Bryson was an independent contractor when engaged by Three Foot Six Limited; to find otherwise would be to the detriment of the industry as a whole. The decision of Justices William Young and O Regan (Justice McGrath dissented) is a notable victory. It is even more remarkable, given that, though unpopular with this country s film industry bosses, the Employment Court decision was legally sound. when engaging an independent contractor - the original intention of the parties is still a crucial factor. Industries that regularly utilise independent contractors instead of employees would be wise to include such a claim in their contracts. It will be interesting to see which other industries seek to rely on the Bryson decision in defence when they engage contractors instead of employing people. Another intriguing possibility is whether this decision will be built upon by others seeking exemption from The Court of Appeal decision may well open opportunities for other industries to seek exemption for their workers from the Act. At the very least, employers may be tempted to engage independent contractors more readily given the majority s finding that a contractual arrangement intended to avoid the Employment Relations Act is not a sham merely because it is motivated by lack of enthusiasm for being subject to personal grievance procedures. Section 6(3)(b) of the Employment Relations Act 2000 says that a statement about the nature of the relationship between the parties is not determinative (as it had been under the Employment Contracts Act). Mr Bryson was engaged pursuant to a crew deal memo which set out his terms and conditions. Although the document referred to Mr Bryson as an independent contractor, Judge Shaw found the document read more like an employment agreement. In addition, the relationship was closer to that of employment: Mr Bryson s work was closely controlled and monitored, he was paid for down time, not free to do private work, unpopular requirements of the Act on the basis of industry practice, such as union membership. Rules for fixed term agreements tighten Summer flings rarely last forever. Love is found and lost, and employers will take on many casual staff over the holiday period that they have no intention of ever seeing again afterwards. However, legislative changes effective as of December 1st could leave employment relationships lasting much longer than either party intended. Casual employees are seen as the answer to a number of problems facing employers: uncertain workloads, seasonal demands, and varying times of availability. Traditionally, casuals are offered work on an as and when required basis. They are different from permanent employees who have no fixed hours, because a casual s employment actually ends after each engagement. After working for a period of days or weeks, as required, the casual finishes up, is paid holiday pay, and may or may not be called upon again in the future. The Employment Relations Act 2000 provides for employers and employees to agree on employment for fixed terms. That is, instead of being presumed to be continuous, the employment will end either on a specific date, at the end of a specific project, or upon the occurrence of a specified event. At that time, neither a resignation nor a dismissal is required to end the employment relationship; it simply expires. The Act puts tight controls on when a fixed term employment agreement can be validly created. There must be a genuine reason for it to end in that way, and the reason provided must be based on reasonable grounds. For example, arranging a three month agreement because the job is picking fruit and there will be no more fruit in three months is reasonable. But having a three month agreement because you are not sure if the person will get along with his colleagues, is not held to be reasonable. There is also a requirement that the employee is to be advised of the reasons for the employment ending. The Court of Appeal held in Clarke v Norske Skog Tasman Ltd that the requirement to advise employees why their employment would come to an end as specified in their agreements was not a mere technicality. Failure to comply with this part of the Act meant that a fixed term could be ineffective. It meant that an employee would be treated as a permanent worker in all respects, and the employer could not rely on the fixed term of the agreement to end the employment. The Employment Relations Amendment Act (No 2), introduced further requirements. In particular where the employer and employee agree to any such reason for an end to employment, the employee s employment agreement must state in writing the way in which the employment will end, and the reasons for the employment ending that way. That is, even where the parties clearly agree their employment relationship will be for a limited time, it will be deemed by law to be permanent employment if the reasons for the fixed term have not been put in writing. Employment Relations Authority member Marija Urlich has pointed out that all non-permanent employment must comply with section 66 of the ERA (and now its amendments). Though casuals are often thought of as a distinct class of employees, in the eyes of the law they are actually workers engaged on a series of (very short) fixed term contracts. This means each engagement of a casual must meet the requirements of section 66 of the ERA. After December 1st this also means an employee must be advised of the genuine reason, based on reasonable grounds, for his or her short engagement in writing. Failure to incorporate these reasons into an agreement would mean the employer is stuck with a permanent employee who will probably be surplus to requirements. Employers should therefore be wary over the summer months when the necessity to take on casual workers grows. Their agreements should be tailored to reflect the changes regarding fixed term agreements, or employers could find they are left with more from summer than memories. EMA Central has produced a Contractor Kit to assist organisations that wish to engage independent contractors, or are concerned the distinction between contractor and employee has become blurred. For more information contact Richard Searle at EMA Central on tel: richards@emacentral.org.nz worked regular hours, integral to the business, underwent training, provided with some tools and equipment, and not in business for himself. The Court of Appeal conceded there was a considerable amount of control and integration in the case, though it was normal for this industry. It was also insufficient to outweigh the two features on which the Court of Appeal placed significant weight: the intention of the parties, and the nature of the industry. As to intention, the majority decided the parties had specifically addressed the basis on which they were contracting; it was invariable industry practice; Mr Bryson was fully aware of the nature of the relationship he was getting into. O Regan JJ said a finding that Mr Bryson was an employee would interfere with existing practice and have serious implications for the industry. Justice McGrath disagreed. He concluded too much emphasis was being placed on the film industry s practice of engaging contractors, and that it was not open to the Court to reach a decision on one person s application that has general application across an industry. Since he was in the minority Justice McGrath s opinion is not binding. PAGE 8 PAGE 9

7 ADVICE EMABUS INESS EMA s TAX TIPS Changes to investment income tax coming On November 16th Dr Cullen released the report Towards consensus on the taxation of investment income. In July Dr Cullen appointed Craig Stobo, former CEO of BT Funds in New Zealand, to report on options for the taxation of portfolio equity investment. Specifically excluded were an across-the-board capital gains tax, taxation of owner-occupied housing, and the basic treatment of debt instruments under the financial arrangement accrual rules. Mr Stobo consulted widely amongst funds managers, tax advisers, chartered accountants and the New Zealand Stock Exchange.The consensus view was that the implicit tax on capital gains imposed on domestic investment through collective investment vehicles (like unit trusts and superannuation funds) needed to be removed. This means no tax would be paid on vehicles with income allocated to investors and subject to a withholding tax. Tax on capital gains, if any, would be at the investor level and dependent on their individual tax status. For offshore portfolio equity investment, Mr Stobo recommended an investment and savings tax (IST) be introduced, to be levied according to a rate applied to the opening value of those investments in a year. Possibilities include an inflation adjusted risk-free rate. There was no consensus in relation to the taxation of offshore portfolio investments; further consultation is required. If adopted, the proposals represent some of the most radical changes to the New Zealand tax system since the introduction of the international tax regime in From here they will be discussed through Government s formal tax policy process with a possible announcement as part of the 2005 budget. Dr Cullen has referred to a possible implementation date of April 1st, DRAFT ON TAX ANTI-AVOIDANCE IRD has issued an exposure draft INA0009: Interpretation of Sections BG 1 and GB 1 of the Income Tax Act relating to tax avoidance. It s 14 years since the IRD released its last statement on how it applies the general anti-avoidance provisions, and there have been some significant judicial developments since. This draft offering runs to 80 pages of technical analysis without a practical example in sight. It proposes six steps for considering the application of section BG 1. Step 1 Determining an arrangement and its scope There is a good body of case law for determining what an arrangement is. The IRD notes: an arrangement requires two or more parties to reach a consensus ; knowledge of tax avoidance is unnecessary an arrangement includes all steps necessary to bring the arrangement into effect; and a part of an arrangement is not itself an arrangement. Step 2 Determining Tax Avoidance In order to commit an act of tax avoidance, a taxpayer must directly or indirectly alter the economic incidence of tax; defeat, evade or avoid liability to pay income tax; escape or minimise liability to income tax; or defer that liability to a later date. The question that arises is, what is the base position from which tax has been altered? Step 3 Determining the purpose or effect of the Arrangement For Step 3 to be satisfied, it is necessary to be able to predicate that the arrangement was entered into in a particular way so as to avoid tax. It is important to note that it is not a defence to this step, that the arrangements are capable of explanation by reference to ordinary business dealings. Step 4 Determining a purpose or effect more than merely incidental The exposure draft states that a merely incidental purpose or effect is something which follows from or is necessarily or concomitantly linked to, without any contrivance, some other purpose or effect. That purpose or effect is determined objectively, and not subjectively in terms of motive. The focus is on the degree of economic reality and contrasting this with any other artificiality, or contrivance, or the relative extent to which the transaction appears to exploit the statute in pursuit of the tax benefit. Step 5 Judicial approaches In Step 5 IRD has distilled various judicial approaches, such as the choice principle and tax mitigation, into a test of whether the arrangement would frustrate Parliament s intention for the provision, regime or tax Act as a whole. Step 6 Adjustment of income under Section GB 1 If the first 5 steps are satisfied, then the arrangement will be void. The IRD Commissioner then has wide powers of reconstruction of income, to be exercised if necessary. The deadline for comment on the draft is 17 December Copies of it are at: draftitems.html NEXT STEPS The information contained in this article should not be used without first seeking advice from your regular tax and business advisor. Individual circumstances can significantly alter the consequences of the information and advice provided. Tel EMA to access E&Y tax advice or You ve cut the waste out of your own operations. Now, you face an even tougher challenge: streamlining the processes you share with other companies to become superefficient. Right now you can download a free copy of The Superefficient Company by the Harvard Business Review. This independent report will show you how to: Optimise your supply chain Get the most out of your suppliers, customers and employees Follow the four steps to superefficiency Get your copy today by visiting REPUBLIK 9207 PAGE 10

8 ADVICE EMABUS INESS By Daryll Le Clare, OH&S Consultant, EMA Central BACKGROUND BRIEF The objective of the Health and Safety in Employment Act is defined as the prevention of harm to all persons at work and other persons in or in the vicinity of a place of work. All employers are required by law to have an effective hazard management system in place. While this is a key element for complying with the Act, the most vital consideration is ensuring effective hazard management systems are in place to protect the health and safety of staff, visitors and contractors. So how do you measure up? How effective is your system? In our November issue you rated your overall Health & Safety performance. In this, the second in a series of articles to help you assess your compliance with the HSE Act, you can rate your organisation s management of hazards against the checklist on page 13. This should give you a rough indication of how well you are doing. Obviously a No response to any item means you do not meet the compliance criteria, and you have some work to do to. Being able to answer Yes to each of these questions means you are well on the path to meeting the requirements of the Act, but might still mean you do not come up to scratch. How well are you managing workplace hazards? (PtII) Employers are required to systematically identify and regularly assess significant hazards in the workplace and to take all practicable steps to eliminate, isolate or minimise hazards in the workplace under their control.what do these terms mean? Eliminate? This means removing the source of actual or potential harm (the hazard) entirely or modifying processes that exclude harmful practices. Some examples of how you might achieve this by: Not undertaking the hazardous task (or discontinuing work already underway) Replacing a toxic substance with a non-toxic substance Replacing flammable materials with non-flammable Replacing a loose tread on a stairway Purchasing chemicals in smaller size containers to eliminate decanting hazards Isolate? Isolating a hazard means installing some sort of barrier between the person and the hazard.this might be achieved by: Fencing off areas near a hazard where people do not need to walk, so they are kept away from the hazard. Enclosing a hazard so that it cannot harm people. Placing a permanent guard around dangerous moving machinery. Keeping people a safe distance from the hazard, such as a seclusion zone for a helicopter landing area. Limiting the duration of exposure to the hazard to a safe level, for example reduce the time people are exposed to noise or hazardous substances. Minimise? Minimising the risk of harm by providing training on the hazard, using personal protective clothing and equipment, monitoring the individual s health or environmental exposure. Examples of hazard minimisation include: Job sharing, swapping with someone else for half a day to reduce any one person s exposure, e.g. reduce exposure to high noise levels of chain sawing by having them swap tasks with another worker for part of the day. Programming some tasks for times when few people are on site. Using a powdered form of a chemical rather than a liquid. Using personal protective clothing and equipment e.g. steel cap boots, gloves, hard hat, respirator. See how you go this time! Self assessment checklist for hazard management: Do you have a record of workplace hazards and how you are dealing with them? Are your employees actively involved in hazard management on an ongoing basis? Have you and your staff identified hazards relating to: Plant eg, machinery is guarded, regularly maintained. People eg, lifting, carrying, pulling or pushing loads. Locations/environment eg, housekeeping, ventilation and extraction systems. Chemicals eg, storage, labelling. A low rating of 1 or 2 means you fall short of complying with that aspect of the Act. Remember too that the checklist is an indicator of minimum compliance with the Act. If you are serious about health and safety (as you should be) you might like to assess yourself against the ACC Workplace Safety Management Practices Audit Standards which can be downloaded from the ACC website (acc.co.nz). If you want assistance please contact your EMA Heath & Safety consultant, or myself on (06) darryll@emacentral.org.nz Tasks eg, working alone, driving or away from base. Have you and your staff decided which hazards are significant and which are of a lesser concern? Have you and your staff worked out how you will deal with hazards and taken action? Do you check regularly to see that you have dealt with hazards effectively? Do you and your staff identify hazards and adapt processes as new things, equipment or people are brought into the workplace? Do you monitor the workplace and ADVICE staff for exposure to: Noise. Exposure and contact with chemicals, lead and asbestos. Blood-borne and other body fluid diseases and infections. Do you tell contractors and visitors about relevant hazards and how they can keep safe? Do you find out from contractors what hazards they bring into your workplace and how to keep your staff and visitors safe? Do you make sure that contractors have the right knowledge and skills to do the job safely Rate the quality of your hazard management system from the panel: Rate if a Yes response: 5 = Excellent: Consistently exceeds HSE Act compliance level, highest standard. 4 = Good: Regularly exceeds compliance level, standards continuously improving. 3 = Adequate: Meets minimum compliance level 2 = Less than adequate: Meets compliance level some/most times, partial compliance, occasional lapses 1 = Poor: Nominal, token, irregular, partial compliance omega Plastics Ltd. Wide product range: B & A and general industrial polysheets, pallet caps and shrink films Polybags, liners and carrybags - all sizes, colours and print options Buy direct - NZ made quality and assurance at the best prices FLEXIBLE PACKAGING MANUFACTURE AND SALES TPL3771 Omega Plastics Ltd. Phone : Fax : sales@omegaplastics.co.nz PAYROLL More New Zealand businesses use Ace Payroll than any other computerised wages program. Visit our constantly updated website at for employment law, legislative links, tax planning etc or call toll free on for a free demonstration kit. TPL573 PAYROLL PAGE 12 PAGE 13

9 Ready Steady Grow ADVOCACY Promoting a better environment for your business growth. THRIVE Discover a world of exciting networking opportunities with New Zealand s largest business association. SCHMOOZE growth-driven business network young professionals and business executives network FRESH leaders in innovation network employers network ADVICE Helping you make better decisions. BRIEFINGS Exclusive MBA scholarships offer EMA in association with the Royal Roads University in Canada and the Concordia Institute of Business in Auckland is offering two scholarships towards completion of the Royal Roads University s MBA. The scholarships are valued at $12,000 and $18,000 respectively based on the MBA programme fees of $30,000. Applicants will be required to meet the balance of their course and living expenses. The Royal Roads MBA in Executive Management focuses on building strategic skills business growth depends on, while providing a broad understanding of critical issues in management leadership.an outcomes based curricula builds skills in an academic setting. The Executive Management degree commencing in 2005 is delivered entirely in New Zealand with options for residencies in Victoria, British Work hard. Play harder. Make your team the best it can be. Columbia, Canada. The University was founded by the British Columbia Government, and is a member of the Association of Universities and Colleges of Canada, the Association of Commonwealth Universities, and Canadian Virtual University. Royal Roads University is NZQA registered. It incorporates the expertise of industry, the public sector, and institutional partners in programme development and instructional delivery to ensure the highest possible level of relevance and quality. The Royal Roads University is committed to improving continuously the teaching and learning exchange by providing its faculty with ongoing professional development and a supportive learning environment. The result is an exciting learning exchange where both teachers and learners continue to learn. Further information about Royal Roads University is available at: ADVICE LEARNING To be eligible for a scholarship, applicants must meet the entry requirements set by the university and be employed by a member of the EMA. Applications close on 15 January Awards will be announced by 10 February Application forms and further information can be obtained from: The Dean Concordia Institute of Business NZ representative P.O. Box Newmarket Auckland, NZ Tel: Fax: info@concordia.ac.nz CEO NETWORK business leaders network NETWORKING Influential networking opportunities. EMPLOYERS & MANUFACTURERS ASSOCIATION.. > Use EMA to grow your business. Find out more today. Call or visit LEARNING Helping your people to succeed. Kiwi Corporate Teamathon 2k5 The Corporate TeamaThon is the premier event for competitive business teams willing to improve their skills.this multi-sport event - with a twist will test body and mind! Teams will be put through unorthodox, but challenging, physical and mental activities at New Zealand's premiere training and fitness facility, the Millennium Institute of Sports and Health. Show off your team's skills Learn under the expert guidance of trainers who will show you the best way to maximise your group's abilities Take away practical team-building experience that can be applied in your own workplace The titanic adventure slide and iceberg challenge Scale 10 metre high inclines and traverse sheer drops in this testing race against time. King of the mountain Work together to reach the top of this 8.5 metre pyramid - you'll need skilled pairs to excel at this task! Video memory/pictionary/ brain teaser Other events include Loo Racing, Escape the Flood, the Ironman Challenge, Big Ball Soccer... Proudly Sponsored by Southern Cross Health Care We see this event as an opportunity for New Zealand businesses to grow from the coaching they ll receive to further improve their success, said Southern Cross Medicare spokesman Peter Tynan. If we can help improve best practices of a business through encouraging healthy lifestyles, we can reduce sick leave, increase productivity and improve retention of staff as well as help position a business as an employer of choice. To learn more and enter: tel PAGE 15

10 By Dudley Enoka,Telecom General Manager for Regions Holiday housekeeping Many firms operate their PCs behind a secure network firewall, or a firewall router. It might be time to review the specifications and set up of these devices. In most cases, a firewall in conjunction with up to date virus checking software is adequate to stop known viruses. For larger organisations with computers at multiple sites, or with the complexity of providing access to external clients through password security, a more complex security solution is required. For them it would be advisable to bring in a Network security specialist. New viruses can exploit any software vulnerability. In response, software providers regularly update their products.your next check should therefore be to confirm your PCs are running the latest software versions. Some applications automatically check for updates, or you can register on the software vendor s website to receive notification. Often viruses get onto a PC because users invite them in - the wolf in sheep s clothing principle.this form of attack tries to deceive users into carrying out an action that lets the virus in.why not ask all PC users in your company to make a New Year s Resolution: Never again open s from unknown accounts! Never download files from unknown sources! Only ever add software to your PC from reputable providers! In the New Year your security policy might define what your computer users can and cannot do, and which internet sites they can visit. By adding a separate administrator log, you can ensure only approved users can install new software. ADVICE LEARNING BACKGROUND BRIEF Lately our computer networks have come under increasing attacks from a multitude of viruses, worms, Trojans and other malicious code. Since access to the internet is now vital, it is important to ensure your PCs are protected. The quiet holiday season is the perfect opportunity to take stock of network security and carry out some simple housekeeping. By outsourcing your network security you can receive cost-effective support, the latest updates to keep your business ahead of threats, and peace of mind. For more information on Telecom s SafeCom and Safewall managed security services, contact a Telecom Account Manager. PAGE 17

11 ADVICE EMABUS INESS Cash flow funding expedites faster growth Businesses fail for a variety of reasons but a surprisingly important one is that many find they are unable to keep up with their own success.they fail because the cash to pay their suppliers runs out before their customers have paid them. Outsourcing credit management is one of the roles of factoring firms such as Scottish Pacific, the longest established and with 70% of market share. New Zealand director of Scottish Pacific, Dave Cooper points out that 70% of New Zealand businesses fail with in three years, and 80% of those failures are because their credit runs out. He says that about 50% of businesses have problems with managing their cash flow though many of them could use it to fund their expansion. Banks extend credit to businesses based largely on property such as real estate values, or possibly by borrowing against large items of new capital plant. Factoring has a unique role in effect it involves the purchasing of the credit that your business has extended to its customers. The net gain for your business is that the process accelerates the speed with which revenue from your sales becomes available; with funds in hand earlier than the usual 90 days, you are able to re-invest in more components or services to expand your market. Vanessa Wilson of Pallet Supplies Ltd, a member company of EMA employing 55 staff, is quick to identify the advantages of increasing the velocity of funds. Money makes the world go around and in business the faster you can make money go around the better it is for everyone, she said. The move away from traditional banking to Scottish Pacific has been excellent for us as we are paid immediately, which enables us to pay By Gilbert Peterson, EMA Northern our creditors promptly.this often results in early settlement discounts a big benefit! To our surprise, some of our own customers have approached Scottish Pacific because through us they have experienced the benefits. Cash flow financing agreements can be customized to address diverse business specifications.they can range from funding up to 90% of the value of invoices raised, with the remaining 10% paid once bills are collected.you can retain your own debtor s collections functions, or outsource that part of your business in total. Scottish Pacific does your preparation and mailing of statements and reminder notices, receipting, with telephone collections when necessary done by professional, experienced credit control staff.the service can extend to Australia. More details are at or tel TPL2572 New technology facilitates expansion Before Axapta was introduced, a nineyear-old financial package kept Hansen busy with multiple planning and scheduling spreadsheets. Its accounting solution creaked under the load.the lack of integration with the company s production and inventory required data duplication, and re-keying. Inventory management and forecasting was very slow. Hansen s financial controller Kathryn Hanham recalls a lot of data had to be entered manually into various spreadsheets: For example, our raw materials were processed outside the main system, which made planning very difficult." The previous system couldn t handle all export documentation requirements, or multicurrency requirements. The company evaluated seven potential applications. Commented Hanham: As we start expanding into the Canadian and US markets, we needed to have strong business processes in place.we needed to be able to plan for a the long distribution time to Canada. Axapta was chosen because we liked the fact it was an international product still at the beginning of its life cycle, (in 2003) and it gave us confidence that Microsoft would support it in the long term. We also felt confident in the Microsoft partner,adaptable Solutions, and particularly Duncan Cox, its Managing Director, who has extensive experience implementing IT systems for manufacturers. The impementation was a success largely as a result of the strong company team effort and close partnership with Adaptable Solutions, Hanham says. The system took only a few minor modifications to meet our exact needs. For example, we can enter sales orders using either our product codes or our customer's codes when they differ.the system automatically prompts the user if a product is entered that requires split quantities. Axapta automatically advises customers by when an order is received, and sends another when it is dispatched. It tells them which carrier will deliver their order, when it will arrive, and what products are back ordered. Managing Director of Adaptable Solutions, Duncan Cox said "Hansen defined their key business requirements from the outset, with a clear vision for what they wanted to achieve.axapta provided a good fit, particularly for production scheduling. Within six months of the implementation Hansen had gained operational efficiencies. Kathryn Hanham said "our financials, manufacturing, inventory and forecasting are all captured, so we instantly gained time savings by not having to duplicate information. Staff freed up from keying in data can now focus on more important areas. It allows us to manage our business. We have the right materials in the right place at the right time. The system details exactly what products we need to manufacture and assemble and highlights any potential shortfalls.we can statements to distributors and generate invoices at anytime and currency conversions happen automatically. Eventually, we'd like everything to be continually updated in the one system, and eliminate data entry outside it. ADVICE TECHNOLOGY BACKGROUND BRIEF Hansen Products in Whangarei manufactures 500 finished products such as polythene pipe fittings, threaded pipe fittings, and high flow valves servicing agricultural, horticultural, marine, engineering, commercial and domestic markets. The 34 person company exports 30% of its $6.5 million sales, with exclusive distributorships in eight countries including Australia, the UK and parts of Asia. Now Hansen has its sights set on expansion in Canada and US; it plans to double output over the next two years. But before that was realistic, the company needed more efficient and integrated manufacturing software. Microsoft s ERP system Axapta was chosen and customised by Adaptable Solutions to deliver tighter production planning and scheduling, business forecasting, and integration with Hansen s financial systems. The case study highlights where to identify benefits from modern manufacturing software systems. PAGE 18 PAGE 19

12 LEARNING With host: Professor Mike Pratt. Saatchi & Saatchi s International brand man, author of eight books and 150 academinc papers, Dean of Business Studies,Waikato University. Consultant to world-wide corporations including Toyota, Misys, Proctor & Gamble, Saatchi & Saatchi New York, Les Mills, NZ Olympic Committee, and Meridian Energy. BRANDING NEW ZEALAND! Julian Moore, NZ Trade & Enterprise Brand NZ:What is New Zealand and why are our products so special? How can your business leverage from Brand NZ? GEARING UP FOR GOING GLOBAL Stefan Preston, CEO, Bendon Case Study: launch and growth of Elle Macpherson Intimates in the UK. EMABUS INE SS China trade venture prospected A trade exploration visit to China is proposed for EMA members participations next year. The NZ China Business Chamber President Jesse Nguy said the target of the venture is expected to be Shanghai and the Shuzhou province next year between March and May. Members of the NZCBC are offering to act as trade facilitators though more importantly, to arrange appropriate introductions with influential people in China. Candidates for the visit are people who may want to purchase from China, as well as those wanting to explore markets to sell there, Mr Nguy said. The cost, precise timing and itinerary for the visit will be firmed up once the level of interest is KNOWING YOUR MARKET Craig Lieberman, 34 Degrees: Foods with Latitude, Denver, Colorado RELATIONSHIPS Peter Smith, RPM International Tool and Die How we turned a tiny business into a tool and die powerhouse The Athens stadium seat project. AGREEMENTS STRATEGY Phillip Mills, Les Mills International Ernst & Young s New Zealand Entrepreneur of the Year. LICENSING Michael Powell, Global Licensing and Innovation, Carter Holt Harvey FOCUS SESSIONS: LOGISTICS - Kim Schofield, DHL, the confirmed early in the New Year, he said. Go Global - 25 February Aotea Centre - Auckland Getting, Staying & Being Motivated! 70% of your employees are less motivated than they used to be. 80% of your employees could perform significantly better if they wanted to. 50% of your employees only put enough effort into their work to keep their job. Is this the way you want it to be at your company? With Sean Thomas of Tima Consulting. Self Mastery & Motivation Mike Chunn, music executive Finding a Focus Garry Wilson, Chief Executive, ACC, Motivation from the top down Suzanne Hall, Living Nature Staying creative Simon Barnett, Tomorrow Today NZ Ltd, EMA is endorsing the venture with its full support. EMA members are urged to register their interest in the first instance with Bruce Goldsworthy, EMA Northern s Manager of Advocacy and Manufacturing Services at tel or bruce.goldsworthy@ema.co.nz world's leading express and logistics company with links to 220 countries and territories. IP - Allan Bowie,A J Park International Property Lawyers and Consultants, IP Licensing into China NETWORKS - Paul Claridge, NZT&E and Ross McConnell of KEA, the Kiwi Expat Association. FUNDING - Jenny Morel, New Zealand No 8 Ventures PLUS Patrick McAteer, Oktobor Producing cutting edge, design-driven commercials and feature film effects. Graeme Carrie, FRENZS 10 million eggs airfreighted to the US! Michael Hill, Jeweller, retail legend. To register, visit or call Jan 27 Stamford Plaza trading as OBO. Stimulate creativity and innovation Don Tricker, former Coach to the Black Sox. Understanding and getting the best out of people To register go to or tel Inspire. Excite. ENERGISE! Are you a passionate leader with the ability to motivate your team? The success of your business rests on the motivational skills of its leaders. Learn how to create a spark and inspire your team to be the best it can be. Attend Motivate When: 27th January. Where: Stamford Plaza Hotel, Auckland. Book now by calling Innovative HR: Fresh People is the branch of the Fresh Network that focuses on innovation and new ideas in HR, including values, leadership, creativity, work/life balance and workplace design. The next Fresh People breakfast will focus on the important topic of work/life balance. When: 3rd February 2005 Where: Prime Café, PwC Tower, Auckland. Book now by calling Take on the world and win: To grow significantly, a company needs to be doing business in key markets around the world. This can be a difficult and daunting challenge. Go Global provides those willing to take on this challenge, with access to those who are winning, so they too can learn how to succeed against all the odds. Go Global 2005 is New Zealand s premier event for THE LIST: News. Tips. Ideas companies considering or actively doing business globally. When: 25th February. Where: Aotea Centre, Auckland Book now by calling The best your team can be: The NZ Corporate Team-a-thon, created by the Millennium Institute of Sport & Health for EMA, is open to 20 teams from large corporates, who will face a variety of leadership and team building challenges throughout the day. Designed for teams of six, selected by their organisations as emerging leaders, prime movers and shakers and high performance teams, the NZ Corporate Team-a-thon 2005 puts your best people to the test. When: 11th March. Where: Millennium Institute of Sport & Health. Book now by calling TIKANGA IN BUSINESS: Enhance your knowledge of cultural diversity in the workplace. This three hour programme is tailored to meet the needs of your organisation. For more information, please contact Rhonda Spence on or Cathy Phillips on Pay less on a Southern Cross Group Scheme: Got ten staff or Drive your business For Terms andahead. Conditions visit Make sure you are a financial member of EMA (Northern) on 30 June 2005 and you could win a fantastic Nissan 350Z Coupe, value $70,000. horsepower more? Then ask Southern Cross about setting up a subsidised group health insurance scheme. Not only will you pay at least 10-20% less than the private member rate on the new Wellbeing plan you will also be entitled to offers exclusive to EMA members. A group scheme is great for your staff and it s good for business. Research shows a subsidised Southern Cross health insurance scheme can reduce absenteeism, improve productivity and promote staff retention*. * TNS Research Findings 2004 To find out more and ask for a Wellbeing Business information pack. Protect your IP: It is vitally important to protect your intellectual property. Discover how at the next Fresh Technology breakfast with Simon Rowell of James & Wells. When: 27th January. Where: Prime Café, PwC Tower. Auckland. Go with Telecom: EMA s deal with Telecom can help you grow your business. Telecom New Zealand has a wide range of communications solutions to help you take care of your business. Solutions that have the potential to significantly increase profitability, productivity, customer service and loyalty. Visit for details. ADVICE NEWS Insure your most valued possession: Most of your employees don t have much in savings and they don t have life insurance. But you could help their families avoid a lot of worry if they were to meet an untimely death. By making EMA Life available to them you could become something of a hero. EMA is endorsing this life insurance alone because it s either: the lowest cost life insurance available, or a savings scheme while you insure your life. It s the lowest cost because no commissions are paid. There are no salespeople, and once you are covered your premiums don t go up. We want you to make this opportunity available to all your staff. But first, please look at it yourself. Go to Your business may want to insure a key person. Anyone can be a beneficiary. Please recommend to your employees they should apply online. Visit Send your young stars: Your young stars will love you for sending them to Schmooze, NZ s leading network for young professionals and business executives. It will connect them to a growing network of movers and shakers. For further information about upcoming events visit horsepower For Terms and Conditions visit PAGE 20

13 MAXIMA. AWARDED NBR CAR OF THE YEAR. Awarded National Business Review Car Of The Year NIS1851\TBWA