The risk of intimacy in the · 2011-11-17 · The government’s income surplus blow out reached...

EMA Northern & Central are foundation members of and the major contributors to:

Exclusive EMA news, advice, learning and networking I ssue 20 + October + 2005

■ Letter to the GreensXxxxxx■ Kyoto plug pulled

■ Your business structure affects the tax you pay

■ How to get overseas qualifications recognised in NZ

■ Trading across the Tasman: seminar

In this issue:

The risk ofintimacy in the workplace

Business NZ

EMAad.indd 1 2/1/05 11:05:17 AM

Our Vision. Your Success PAGE �

Recruiting offshore?Your candidate's qualifications must be recognised here

Your business structure affects the tax you pay: Tax Tips.

Where people can smoke at work

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is published for:

EMA NorthErN

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Ph: 09 367 0900 or 0800 800 362

Email: [email protected] Website: www.ema.co.nz

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Alasdair Thompson

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ISSN No. 1176-4953

Business cares! Paul Winter muses on the election results

Letter to the Greens: Why business is nervous

AGM times & places for EMA Central & Northern

Tony Blair's 'brutal honesty' on Kyoto

New code of good faith

Payroll people applauded

How to simplify your transTasman trade:Seminar coming

Business compliance survey stresses tax!

CEO's get a new connection

Kiwis help make better noodles

Leasing: the upsides and downsides

New ERP spurs Marque Magnetics growth

Why replace your ERP?

YOUR HOLIDAYS PLANNER 2006

SPRING BRIEFINGS SCHEDULEThere's one coming near you!

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1. Can a love contract protect your business? 2. Are there any benefits? 3. The office affair: should anything be done?

Intimacy at work 3 perspectives

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PAGE � EMA Business Plus Magazine - Exclusive EMA news, advice, learning and networking

An important exit poll following the election showed the broad business community has made little progress in shifting public perceptions to illustrate that it too cares about the environment and people’s lives as well as its own success.

During the run up to the election, and since, I have been reflecting on how different groups see our nation’s journey in returning our economic performance to the top half of OECD nations.

At most, the commitment to this goal is shallow, with little agreement on the best strategies to achieve the goal in an environmentally and socially acceptable manner.

Favourable commodity prices and the lowest unemployment rate in the OECD have provided a strong economic tail wind lately - we definitely have made some progress. But nearly all economic commen-tators now see stormy times ahead, particularly since the most recent growth has been overly reliant on consumers borrowing to fund consumption thus blowing out the deficit on our current account.

Electioneering shattered any thoughts the country may have held for long term economic growth. Politicians of all persuasions promised different policy treats from the growing mountain of tax revenues. Despite the good work of Business NZ, the business agenda was also seen as driven by self interest.

An exit poll following the election saw an overwhelming proportion of the population say business had exerted too much influence during the campaigning, and the inference was our influence was negative.

We might like to blame the Exclusive Brethren and business leaders, but the poll simply illustrated how little progress has been made in shifting public perceptions that business too cares about the environment and people’s lives.

Nor does it seem we have clearly established the strong link between business success and the nation’s success.

So, when I was invited to attend the Green Party’s charm offensive with business, I was under no illusion either group would change its views of the other. The Green Party is sincere in its beliefs and unques-tionably cares for the environment and communities, yet only 5.3% of the public voted for their policies, a lower proportion than in the 2002 election.

You might reasonably conclude the broad public view of the business community and the Green Party is similar in one way: we both might be sincere and have laudatory goals, but not many New Zealanders are convinced they will really benefit from policies and strategies employed to achieve our respective goals.

Rod Donald has run a small business, but clearly can’t see what might work in a niche way for certain eco-businesses can’t sensibly work

across the whole economy. Students might support the ideal of

more energy efficient public transport to displace cars, but most own and drive cheap Japanese imports and find them very convenient.

The complexity of a modern economy is not easy to understand but it is quite scary that, after six years in Parliament, the leaders of the Green Party are ignorant of the basics of how the cash flows of international trade and capital markets relate to each other.

It was hardly surprising that in this first broad engagement to help each educate the other, both sides talked past each other.

Four out of the eight political parties in the new Parliament will be needed to support any new piece of legislation, assuming agreements for confidence and supply are negotiated. This might lead to little change, not necessarily a bad thing, or the price might be a smorgasbord of each party’s priority programmes.

Despite of the relatively messy MMP election result, business may still make good progress, and achieve more robust and successful enterprises, which in turn will deliver a more resilient economic environment.

But the message for business from the election is clear: get on with making your business succeed, because the success of the country will depend even more on your success, and less on leadership from Government.

By Paul Winter, Chief Executive, EMA Central

Shared goals; different strategies

AGM On: Tuesday 15 November 2005

At: Duxton Hotel, 170 Wakefield Street, Wellington,

An EMA Central Issues Briefing will precede the AGM. AGM formalities will be brief. Cocktails and an opportunity for members to network will follow. Issues Briefing: 3.30pmAGM (15 – 20 mins): 5.00pm

If you are attending the AGM only, please register your attendance with Sandy Webley (phone 04 470 9947 or email [email protected]) no later than Friday 11 November 2005.

Nominations for the Council should be lodged with the Chief Executive, EMA Central, P O Box 1087, Wellington,

by noon on Tuesday 2 November 2005.

central

The AGM of the Employers and Manufacturers Association (Central) Inc will be held:

Our Vision. Your Success PAGE �

22 September 2005 Rod Donald, Green Party Co-LeaderParliament Buildings, WELLINGTON

Dear RodMeeting with business leaders

Thank you for your invitation to this meeting. I regret I will not be able to attend. But I am pleased to have this opportunity to pass on to you my comments.

I attended the Business NZ conference before the election and came away with a deep concern for business and the future prosperity of New Zealand should a Labour/Greens government be formed after the election. This concern is about the Greens’ influence on any government.

The Greens don’t appear to recognise that economic growth is essential for social and environmental wellbeing. Consequently, when asked at the Business NZ conference, and in writing, to identify any building blocks they would support to promote economic growth, they did not identify any at all.

I note some of the things the Greens support:■ Shifting tax off work and enterprise and onto scarce resources and

waste management■ Higher carbon taxes■ More rigorous control of foreign investment■ Moving away from a fully floated exchange rate■ A more flexible Reserve Bank inflation target■ Significantly increased state investment from petrol taxes in rail,

coastal shipping and public transport■ No new roads, but travel demand management instead■ A Road Transport Reduction Act■ A return to import protection for manufacturers■ The current regulatory environment and associated compliance

costs because “they have encouraged recent economic growth”!■ The current Employment Relations and Holidays (relevant daily

pay) law■ Reunionisation of the workforce via multi-employer agreements■ $12 hour minimum wage■ Expanding the list of “vulnerable workers”■ Investigating a 35 hour week

■ Tougher OSH laws■ Work Life Balance legislation■ A capital gains tax on investments■ Differential rating of business by local councils so business

ratepayers subsidise residential and farming ratepayers

Some of the things the Greens oppose:■ Greater commercial discipline in the provision of water,

waste water management and roading■ Free trade agreements. ■ CER. We were told at the Business NZ conference by you

that CER is creating environmental and regulatory costs and that small business and regional communities have been disadvantaged by them.

■ English language being a key determinant for immigrant entry into New Zealand but with immigrants for whom English is a second language receiving free state tutorage and skills training!The Greens have some policies we support, for example,

a government-backed Buy New Zealand campaign. We, via Business New Zealand, own that brand. There are a number of environmental policies we support but prefer educating business and the public rather than regulation.

I can sum up the concerns of business by saying that the Greens have shown a propensity to support too more and more business regulation, and we see Green supporters routinely opposing development and using the law for that end. The perception is the Greens are basically opposed to development and the energy use required for a higher standard of living.

I am sorry we won’t be able to meet next week as we have lots to discuss. Maybe we could arrange for you to visit the EMA and meet some of our members.

Alasdair ThompsonCHIEF EXECUTIVE

By Alasdair Thompson, Chief Executive, EMA Northern

Letter to the Greens

AGM

to be held at:

Novotel Ellerslie

Greenlane Road East, Greenlane

on Wednesday, 2 November 2005

Commencing at 4.00 pm

GUEST SPEAKER: Dr Alan Bollard, Governor of the

Reserve Bank

There is no charge but to assist with catering, please

register with [email protected] with your

company name and attendees by 28 October 2005

northe

rn Members are invited to attend the

Annual General Meeting and Cocktail Function of the EMA NORTHERN INC.

The government’s income surplus blow out reached $8.8 billion, with it’s net worth increasing by $14.5 billion on last year, says Alasdair Thompson, of EMA (Northern).

“This occurred as the people’s deficit with the rest of the world hit a staggering $11.9 billion.

“It raises the question: Is the government taking so much more from the people that they are being forced to go into debt?

“Or is the government saving our money while we borrow?

“A significant tax cut might mean people spend some of it

on imports, thereby making the current account worse, but many would also pay off their debts and maybe begin to save.

“Until Dr Cullen learns to trust people to act sensibly, he’ll continue with big government surpluses at the people’s expense.”

Government surplus blowout matches public deficit


NEW YORK – 16/9/2005 Kyoto

Treaty RIP -That’s not the headline in

any newspaper this morning emerging

from the first day of the Clinton Global

Initiative, but it could have been -- and

should have been. Onstage with former president

Bill Clinton at a midtown Manhattan

hotel ballroom, British Prime Minister

Tony Blair said he was going to speak

with “brutal honesty” about Kyoto

and global warming, and he did. And

Secretary of State Condoleezza Rice

had some blunt talk, too.

Blair, a longtime supporter of the

Kyoto treaty, further prefaced his

remarks by noting, “My thinking has

changed in the past three or four years.”

So what does he think now? “No

country,” he declared, “is going to cut

its growth.” That is, no country is going

to allow the Kyoto treaty, or any other

such global-warming treaty, to crimp --

some say cripple -- its economy.

Blair said of such fast-growing

countries as India and China: “They’re

not going to start negotiating another

treaty like Kyoto.” India and China, of

course, weren’t covered by Kyoto in

the first place, which was one of the

fatal flaws in the treaty. But now Blair

is acknowledging the obvious, that

after the current Kyoto treaty -- which

the US never acceded to -- expires in

2012, there’s not going to be another

worldwide deal like it.

Tony Blair pulls the plug on Kyoto at

Clinton summit

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Call for Kyoto commitment to be reviewed With Britain announcing the Kyoto Protocol is unworkable and saying ‘No country is going to cut its growth’, New Zealand needs to reconsider its position, saysAlasdair Thompson, CEO of EMA Northern.

“UK PM Tony Blair says countries will work together to develop the science and technology to meet the challenge of global warming, which is exactly the course our major trading partners, Australia, the US and China, have said they will take.

“They say ratifying the Kyoto Protocol won’t solve the problem.”

PAGE �Our Vision. Your Success

You are invited to attend an exclusive update on New Zealand’s FTA Negotiations to including on:■ China, ■ Malaysia, and ASEAN ■ the WTO talks■ Single Economic Market with Australia.

Where: Ellerslie Function Centre Level When: 9 November Time: 7.30am to 10am (light breakfast included)

Speakers include:■ David Walker – MFAT, Lead Negotiator China FTA■ Martin Harvey – MFAT, Lead Negotiator Malaysian & ASEAN FTA’s■ Mark Sinclair – Director, Trade Negotiations Division, MFAT, WTO■ Yvonne Lucas (TBC) – MED Senior Advisor -Single

Economic Market – Australia

Registration: Early registration is essential as numbers are limited. Register online via the EMA website - www.ema.co.nz or fax your registration back to 09-367 0914 Attn: Anne Clark.

(Former) Labour Minister Paul Swain approved a revised Code of Good Faith in Collective Bargaining under section 35 (1) of the Employment Relations Act 2000 (the Act) in August to come into effect straight away.

The changes from the previous Code were recommended by the Good Faith Code Committee to

reflect practices, developments and experiences in applying the duty of good faith under the Act and taking into account the Employment Relations Amendment Act (No.2) 2004.

Section 39 of the Act says the Employment Relations Authority or Employment Court may have regard to the Code in determining whether or not a union and an employer deal with each other

in good faith in bargaining for a collective agreement. It means if the parties show they have followed the Code, the Authority or Court may consider this to be compliant with the good faith provisions of the Act.

The Code also helps parties identify all the thingsto be considered when trying to bargain in good faith. Go to http://www.ers.dol.govt.nz/goodfaith/code.html

Code of good faith revised

You may recall the aviation disaster that hit Crop & Food Research, killing seven of its senior managers and seriously injuring two. The group had chartered a plane to fly to Palmerston North for a national senior management team meeting. The accident occurred on the return flight and the enormous tragedy that struck the organi-

sation was felt across New Zealand. The personal impact on Paul Tocker and his team is unimaginable.Paul will speak about the organisation’s difficult and emotional road to recovery and the issues he faced as CEO. Take this opportunity to hear first hand how the organisation survived and is rebuilding.The breakfast will be held

on Wednesday November 23, from 7.30am to 9.00am at the Crowne Plaza Hotel, Albert Street, Auckland. Please note car parking is available in the hotel car park, which is accessible from Albert Street.To register your place, at no charge, please call 0800 800 362 by Friday November, 11. Please register early.

EMA CEO Breakfast, with Paul Tocker, CEO, Crop & Food

Level 2, 3 Broadway

Newmarket, Auckland

www.gilliganbusinessschool.co.nz

Trade Agreements Update

A trend in the United States, increasingly reported as a novel tool for employers to guard themselves against claims of sexual harassment is the “love contract”, or “consensual relationship agreement.”

The basic idea behind these agreements is that when a romantic

relationship between employees in the same company comes to the attention of management, the company presents such a contract or declaration to the employees concerned for signing.

At its most elementary level a love contract requests that the employees involved declare to their employer that their relationship has been entered into consensually, and that both are aware of the company’s sexual harassment policies and reporting procedures.

Additionally the contract itself may repeat the company’s sexual harassment reporting procedures as well as eliciting undertakings from the employees to maintain standards of professional behaviour in the workplace; i.e. they won’t nauseate their fellow workers by canoodling around the office.

In New Zealand, under the Employment Relations Act 2000 and Human Rights Act 1993, an employer has a positive obligation to prevent sexual harassment in the workplace by taking all practicable steps to prevent any employee sexually harassing another.

In practice, an employer’s ability to regulate romantic relationships between employees is also consid-

erably constrained by the unlawful discrimination laws in the Human Rights Act. These rules state it is an unlawful to discriminate on the grounds of family status, which includes being married to, or in a relationship with a particular person.

Generally speaking, it is unlawful for an employer to introduce a policy where any romantic relationship between employees could result in dismissal.

Nonetheless, while the Human

Rights Act provides an exception to the general rule of no discrimi-nation based on relationships, an employer can regulate the employment of two employees in a relationship who are also in a reporting relationship at work, or if there is a risk of collusion between them to the detriment of the employer.

But this exception provides no help to an employer seeking to

regulate a workplace relationship where there could be a real risk of sexual harassment.

In researching this article several surveys were located that suggest workplace relationships are widespread. One suggested 22% of respondents met

their spouse or significant other through their work. Other surveys found between 50 - 80% of respondents had dated a colleague (figures from North American surveys).

More startlingly, a figure quoted in the Sydney Morning Herald (30/05/04) claimed 25% of workplace relationships ended in claims of sexual harassment!

Though figures like this may be a trifle sensational it is not beyond the realms of possibility to conclude that where two employees are involved in a

By Damon Young, Employment consultant with EMA Northern’s AdviceLine

‘One survey suggested 22% of respondents met their spouse or significant other through their work. Another found 50% of respondents had

dated a colleague.'

Can a ‘love contract’ protect you from claims of sexual harassment?

Intimacy at work 3 perspectives


romantic relationship, particularly where there is an unequal power relationship between them, there is a real risk of a claim of sexual harassment emerging when one of them has second thoughts.

Given this, would an American style love contract provide a New Zealand employer with an impervious shield to claims of sexual harassment by an employee? Strictly speaking, the answer has to be no.

To demonstrate why, let’s use an example scenario. Let’s say two employees, a manager and a junior worker start a romantic relationship, which you the employer discover. You promptly make both of them sign a love contract declaring they entered the relationship consensually.

Then, some months later, the junior worker tries to end the relationship. He or she reports to you that their manager was threatening detrimental treatment if his/her requests for sex were refused.

In such a case the law requires the employer to intervene by taking practicable steps to prevent the repetition of the behaviour complained of. This could include disciplinary action against the manager.

It would not be enough for the employer to hold up the signed love contract and say “you signed this agreement to say the relationship was consensual so it ain’t my problem!”

If an employee was to take a personal grievance against an employer in a circumstance like the one described, the Court or Employment Authority would look at the steps taken by the employer to respond to the allegations. The Court would examine the level of awareness that an employer had shown regarding the claims of sexual harassment, as well as the relevant policies that the company had in place, and the extent to which they were followed.

A signed love contract may be helpful to an employer, in that it could show an employee was made aware of the company’s policy on sexual

harassment, and how to respond to it at the commencement of the relationship. It would make it difficult for an employee to portray their company as being unresponsive or indifferent to sexual harassment. However the actions the company

takes in addressing the issues raised will ultimately determine whether or not the employer is liable.

A love contract is no contract at all. Though their use may be on the rise in the United States, the New Zealand law on sexual harassment places most emphasis on the actions taken by an employer, not on words.

Ultimately, any problems emerging from a romantic relationship between two employees are best dealt with on a case-by-case basis, with the active involvement of the employer.

'The Sydney Morning Herald (30/05/04) claimed 25% of workplace relationships

ended in claims of sexual harassment!'


Intimacy at work3 perspectives


Intimacy at work 3 perspectives Intimacy at work3 perspectives

People are attracted to, or repelled by, one another for innumerable reasons. People may like the humour they find in others, or be put off by their real or imagined sense of discord. They might admire their knowledge, or despise their ignorance. But what is not always apparent to others from a couple’s strongly positive relationship is the benefits that could be derived from it, including in the workplace.In any case, employers can hardly be expected to prevent an intimate relationship developing between people who first meet at work. The relationship may emerge as a consequence of a team building exercise, or simply making friends, but it could go on to future wife, husband or civil union partnerships.

Often, the first indication that an intimate relationship exists is when the people involved become distracted, and this can be obvious at work or anywhere else.

For an employer it is important to identify both the detrimental effects an intimate relationship might have in a work situation, with defences prepared in advance. But what about the benefits that may be squeezed from the relationship? How can an enterprise identify and capture them?

Some basic intangible benefits that may be derived from intimate relationships in the workplace are listed below. However their relevance needs to be interpreted and considered in the context of an organisation’s written and unwritten policies and house rules, existing team dynamics, in terms of a manager’s responsibilities, and the level of general maturity of the individuals concerned. They may be called on to handle themselves with discretion

and care beyond their experience, to protect the wider wellbeing of their organisation. They will need the ability to separate out their personal lives and feeling from those in their working relationships.

Benefits Improved communication and understanding

Intimacy requires an advanced level of communication. From this there emerges an understanding and empathy beyond the usual, and along with it, there may arise the opportunity to improve work practices and procedures. In addition, heightened communication can bring with it improved awareness and understanding of all employees’ roles and respon-sibilities at work.

Improvement in employees’ personal satisfaction

Physical intimacy can certainly bring people to work with “a spring in their step and a twinkle in their eye”. Employees involved intimately with a co-worker will inevitably enjoy to an extent being within the same area as the one they are involved intimately with. At least at the beginning of a relationship. Consequentially they will probably be more motivated to get to work. Likewise, if employees look around at work and see only friends, they will be far more likely to enjoy attending work, or getting to work with more enthusiasm.

Improved co-operation

When employees are communi-cating and understanding what

they are on about the possibilities of heightened co-operation can expand enormously – because they understand more readily what is required of them.

Improved workplace harmonyOnce employees get past the initial

ditzy, infatuation stage of being unable to concentrate on anything except their new found intimacy, intimate working relationships can raise worker morale, stimulate performance, enhance creativity and boost productivity.

Intimate working relationships that

are encouraged and supported by their colleagues can bring a renewing energy to the workplace.

If the intimacy spans departments in an enterprise, another positive can be found in the improved communi-cation and coordination between those departments, bringing with it an over all improvement in the integration of your workplace teams.

Can the benefits of workplace intimacy offset the risks?Its often said, love transforms. It can turn recluses into socialites, and grumpy critics into team players. Sloppy, disorganized employees can emerge from their chrysalis and turn into models of efficiency.

By Stuart Simpson, AdviceLine employment consultant for EMA Northern


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Yes there are several issues. Did the Marketing Manager recruit his girlfriend or, worse, his ‘mistress’? If the merchandiser was subsequently promoted, would it be for his good performance, or hers? Any question over bias wouldn’t go down at all well with other staff and employee discontent is a likely fallout if everybody is not treated fairly.

Confidentiality is another factor. Where is the information flow going, particularly for commercially sensitive information?

A conflict of interest could also arise under these circum-stances. For example, it would not be acceptable for the Marketing Manager to take any disciplinary or redundancy decisions regarding the Merchandiser.

As well as the above there could be grave financial implications for an organization if such a relationship turned sour. Nutter Case

Consider the following case that went as far as the Court of Appeal. Mr Vincent Nutter started at Telecom New Zealand in the late 1980s. In 1999, he attempted to renew a relationship with a female Telecom employee whom he previously knew.

By Magdalene Phythian, Employment relations consultant with EMA Northern’s AdviceLine

The office affair: should anything be done?The office is rife with gossip - the Marketing Manager is having an affair with the attractive merchandiser who recently joined. But the relationship seems to be having a great spin off for sales! The couple bounce ideas off each other so wonderfully well! Does their boss, watching all this, bite his/her nails and keep hoping all stays on track with the relationship? Is there anything to be concerned about?

Intimacy at work 3 perspectives Intimacy at work3 perspectives

PAGE �0 EMA Business Plus Magazine - Exclusive EMA news, advice, learning and networking

Heading


It did not work out and Mr Nutter was informed by his manager not to contact the employee again.

In 2000 he developed an interest in another female Telecom employee. Her complaint resulted in formal disciplinary action but no written warning was given, though Mr Nutter received counseling. Then he was dismissed by Telecom in June 2001 because of complaints by a third female employee, Mrs W. Mr Nutter had sent a her a card and a red rose on her birthday, shouted her lunch, and plucked out a hair and a piece of fluff from her pullover to make a voodoo doll.

Mr Nutter challenged his dismissal. The Employment Court found in his favour and awarded him $30,200, consisting of five months lost remuneration and benefits, and $5,000 for hurt and humiliation because Telecom failed to formally warn Mr Nutter before terminating his employment.

On appealTelecom appealed the decision of

unjustified dismissal and Mr Nutter challenged the level of remedies awarded by Judge Shaw. The Court of Appeal supported the Employment Court’s decision that Mr Nutter had been unjustifiably dismissed and awarded him compensation totaling $55,000. The award carried an interest rate at the rate of 7% per annum from 4 March 2003. [CA127/03; 21/7/04; W Young].

Harrassment definedOrganizations need protection

from sexual harassment claims when personal relationships go amiss at the workplace. Of that there’s no doubt. Sexual harassment is defined as any unwelcome or offensive

behaviour of a sexual nature that has a detrimental effect on an employee’s employment. The harassment can also be communicated personally, electron-ically, visually, written and socially. But friendly banter may be excused if it is welcome by the parties concerned.

A sexual harassment claim can be taken against an employer under either the Human Rights Act 1993 or the Employment Relations Act 2000 but not both.

Under the Human Rights Act 1993, it is considered to be a specific type of discrimination. Proceedings may be

brought against the employer by either the aggrieved party, or the Human Rights Commission.

Under the Employment Relations Act 2000 harassment is treated as a personal grievance. Section 108 details that sexual harassment occurs where the employer or employer’s representative directly or indirectly requests sexual contact or other forms of sexual activity that involve an implied or overt promise of preferential treatment, or an overt or implied threat of detriment in the employee’s employment or future employment. It extends to include coverage of customers and clients of the employer under section 117.

Employers also have a duty of care to provide a safe and secure workplace under common law.

What's your policy?Employers should have a clear

written policy providing zero tolerance of sexual harassment and to be sure everyone is aware of it. Such a policy can be used as a defence against claims of sexual harassment.

It should be made clear from the commencement of a job that forming intimate relationships at work are discouraged. The policy should clearly define what sexual harassment is, and provide examples of what it constitutes. The sanctions that will be

taken against those who offend must be pointed out.

The complaints process individuals need to follow should encourage workers to do something about their situation rather than tolerate it.

A senior employee, such as the human resource manager, may be assigned to handle sexual harassment complaints, which must be handled promptly and sensitively, taking into account

the need to be fair to all concerned. But no employee is a harasser until

proven so. Supervisors and managers should be required to ensure workplaces are free of harassment of any sort, and trained to handle complaints first at an informal level, since it is not unusual for their direct reports to approach them first.

It may be truly argued the best solution is to create a culture where harassment of any sort is not tolerated, and where employees are confident that they can speak up when harassed by anyone, whether a co-worker, supervisor, company client or customer.

‘It would not be acceptable for a manager to take any disciplinary or redundancy

decisions over his direct report if the two of them

were having an affair.’

TPL5

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PAGE ��Our Vision. Your Success

If trade qualifications or professional registrations are an essential requirement to the vacancy you are recruiting for, you need to be sure your employee candidate has qualifications that are recognised in New Zealand and/or have the required professional registration.

The NZ Qualifications Authority is the body responsible for assessing qualifications and their equivalency, and German qualifications are not recognised which means that suitable candidates MUST have their qualifications assessed.

If recognition of a qualification is a prerequisite requirement for the vacancy you have under New Zealand Immigration Policy, then your candidate should be encouraged to apply to the NZQA to have their

qualification(s) assessed. It’s important for your candidate to

find out whether their qualifications are recognised by NZQA before they apply for a work visa if the job is dependent on a qualification and or professional registration.

The NZQA’s specialist team, the Qualifications Evaluation Service, will evaluate your candidates’ qualification(s) in comparison with current New Zealand qualifications and charge the candidate a fee to assess them. The assessment takes approx 8-10 weeks. More on this at http://www.nzqa.govt.nz/for-international/qual-eval/applications.html and for forms and guidelines.

The NZQA is aware of the German job expos and the low/no cost emigration facilitated by the German government. It has contacts for you to discuss any qualification related matters.

Recruiting offshore? Your candidates’ qualifications must be ‘recognised’ in New Zealand

The NZ Immigration Service wrote

to EMABusiness+ following our offer

last month of no-charge represen-

tation at two German Job Expos.

The letter noted that as Germany is

a new skilled labour source for NZ

employers, the Service felt it was an

important part of its support role for

employers attending the expo to be

aware of professional registration and

qualifications procedures that need to

be followed as part of the recruitment

process.

It pointed out that employers may be

looking to employ a skilled person from

Germany under Talent (Accredited

Employers) Work Policy, or Long Term

Skill Shortage work policy, or Skilled

Migrant Category. But applicants who

apply under these streams of current

immigration policy may require New

Zealand registration or qualification

recognition requirements to be met as

part of the Visa and Permit application

process.

background brief

Architect Medical radiation technologistBarrister or solicitor Nurses and midwivesChiropractor Occupational therapistClinical dental technician OptometristDental technician Pharmacist

Dentist PhysiotherapistDietician Plumber, gasfitter and drain layerDispensing optician PodiatristElectrician Psychologist (see note below)Electrical service technician Real estate agent

Enrolled nurse Cadastral (Land Title) Surveyor Line mechanic TeacherMedical laboratory technologist VeterinarianMedical practitioner

A list of the professional or occupational registrations required by law includes the following:

■ For general NZQA enquiries contact (04) 463 3000

■ Malcolm Leitch (ext or ddi 3410)

■ Sandra Williams (ext or ddi 3141)

■ Adrienne Ngan (ext or ddi 3232)

The registration bodies for each of these are available: The NZQA’s qualifications recognition service has the complete list, at

the following contacts:

For specific assessment related queries email: [email protected]

PAGE �� EMA Business Plus Magazine - Exclusive EMA news, advice, learning and networking

Tax is back on the agenda. It was a central issue in the election campaign, though Labour intends to maintain the existing tax rate structure while providing tax relief to low and middle income families.

Both major parties focused largely on personal tax rates, which was understandable since these policies affect voters. Nevertheless, the tax system contains other tax rates for certain entities which were not discussed during the campaign. Let’s look at some business structures and their tax rates.

TrustsBusiness people often establish trusts

for good reasons such as:■ Asset protection from creditors;■ Family succession planning; and■ Separation of passive investments away from business investments.

A trust’s net income (retained by the trustees rather than paid or applied in favour of the beneficiaries of the trust) is taxed at a flat rate of 33%, with no threshold; every dollar of trustee income is taxed at 33%.

Maori AuthoritiesA Maori authority (in broad terms,

an entity, trust or company, which has Maori members, beneficiaries or shareholders), is taxed at a flat rate of 19.5%, again with no threshold. The logic for the 19.5% tax rate is that a Maori authority usually distributes very small amounts of income to a large number of Maori people. Often those Maori people have total taxable income of less than $38,000 p.a. (the current threshold at which the 19.5% rate increases to 33%).

Superannuation FundsA superannuation fund is taxed

similarly to a trust. The taxable income is taxed at a flat rate of 33% with no threshold. Under existing law and practice, capital gains on shares sold by a superannuation fund are generally taxed, whereas gains on shares sold by individuals are usually not taxed. Labour has proposed to remove this anomaly (but in return for far reaching reform of the treatment of foreign investments).

If your structure includes a superannuation fund, now would be a good time to review that fund and your investments.

General business structures

A range of tax rates might apply to different business structures. Consider these:

Sole Traders – these are individuals whose business income is taxed at personal tax rates. No tax if they make no profit, up to 39% once the annual profit exceeds $60,000.

Typical Family Company - A typical business owning family company (let’s call it Smith Limited) has two shareholders - Mr X and Mrs X. Smith Ltd pays tax on any profit at a flat rate of 33%. National proposed to reduce this tax rate to 30% (from April 2008). Labour has said any reduction in the company tax rate must be paid for some other way.

Any salaries paid to Mr X and Mrs X, (which must be reasonable market value salaries), are taxed as personal income. Any dividends paid to Mr X and Mrs X are taxed as personal income (subject to allowing imputation credits for tax paid by Smith Ltd and also after considering Smith Ltd’s status under the “qualifying company” regime (a regime for smaller companies).

In a nutshell, for a company structured this way, the company’s profits will eventually fall to be taxed as personal income, subject to personal tax rates, even though the family trades through a company.

Family company owned by a trustMany family companies have a

family trust as the major shareholder, usually for good reasons such as those I mentioned before.

Consider Jones Limited, which is owned 98% by the Jones Family Trust, 1% by Mr J and 1% by Mrs J. Again, reasonable market value salaries paid by Jones Ltd to Mr J and Mrs J will be taxed as personal income.

However, 98% of any dividends will be paid to the Jones Family Trust whose tax rate is 33% and only 2% of the business profit will be subject to tax at personal tax rates. Depending upon the terms of the trust, the trustees will either retain this income or pay it out to the beneficiaries. Retained income will be taxed a flat 33%. Distributed income will be taxed at personal tax rates. In addition to the good reasons previously mentioned, this distinction means trusts have become very popular as part of a business owning structure since the top personal tax rate became 39%.

Trading TrustA variation of this last structure is

a trading trust, where business activity is undertaken by trustees (often a company is the trustee). Income paid or applied to beneficiaries is taxed at personal tax rates, but business income retained by the trustees is taxed at a flat rate of 33%.

Because of perceived or actual tax benefits, taxpayers have included trading trusts in their business structure and Inland Revenue have been looking at such structures closely.

Tax RatesYour structure will affect your

tax rate. Business income in smaller companies will often fall to be taxed at personal tax rates. The prospect of declining tax rates means it is a good time to look at your structure, your tax rate and the year your income will arise

EMA's TAX TIPS

Tax, tax and more tax (and your business structure affects the tax you pay)

By Noel Walton


in. All those things will affect the tax you will pay.

If you would like to discuss your business structure and the tax rate that arises, please contact Noel Walton at Ernst & Young on 03 353 8093 or by email at [email protected] Walton is a Director with Ernst & Young Limited. The views expressed are his own and do not necessarily represent those of Ernst & Young.

Get VAT back from EuropeA reminder: if you travelled

to Europe for business purposes between 1 July 2004 and 30 June 2005 and incurred VAT, you have until 31 December 2005 to claim it back through the “13th Directive procedure”.

Generally, businesses based outside the EU are eligible to obtain refunds of VAT if:1. You are not registered for VAT and

not liable to be registered for VAT;2. You have no place of business or

residence in the EU;3. You do not make supplies in the

particular member state in which you incurred VAT (or any other EU member states).The VAT refund process requires

source documentation (such as tax invoices, receipts or vouchers) to be provided to the VAT authority, together with the relevant form and evidence of your business status. This evidence can be obtained from Inland Revenue in the form of a letter from Inland Revenue confirming your business activity. Non-English speaking member states generally require the form in the language of the member state, which may add to time and cost of obtaining a VAT refund.

If you or your staff have travelled to Europe on business (such as attending trade fairs or meeting with customers), talk to an Ernst & Young indirect tax advisor about the possibility of getting any VAT you paid refunded.

Withholding Installment arrangements for tax debt payments

A draft Standard Practice Statement has been introduced setting out the IRD’s practice for providing relief to taxpayers with a tax debt. A taxpayer may request an instalment arrangement by application (in writing or by telephone) and may determine payment options through negotiation with the Commissioner. Use of money interest will continue to accrue throughout the instalment period. The document replaces an earlier Statement published in 2002 and has a comment deadline of 27 October 2005.

The information contained in this “Tax Tips” does not constitute advice and should not be relied upon as such. Professional advice should be sought prior to action being taken on any of the information.

If you would like to discuss any of the topics covered in more detail or have another tax query please contact Ernst & Young on the EMA advice line 0800 800 362.

TPL3921


The Act does not introduce a complete ban on smoking at work, because of the definition of ‘workplace’. To be deemed a ‘workplace’ under the Act it has to satisfy a two-tier test. First, the area must be a building or structure occupied by the employer usually frequented by employees or volunteers during the course of their employment. Second, it must be an ‘internal area’.

FIRST TESTThe first tier of the test has several components. Not only must the place be a ‘building or structure’, but the employer in question must also ‘occupy’ that building or structure. This implies the employer need not own the premises, but needs simply to conduct their business on or from the premises. Therefore, an employer who leases out premises to another employer is not liable for a breach of the Act occurring at the premises.Next, the employer’s employees or volunteers must ‘usually frequent’ the area. This implies they spend time in the area while at work. The law does not state work has to be completed in this area but rather that employees or volunteers visit or use the area in their working day.

SECOND TESTThe second tier of the test of a

‘workplace’ is whether or not the space is an ‘internal area’. An internal area is one completely or substantially enclosed by a ceiling and walls (or similar surfaces) when all its windows and doors (or similar surfaces) are closed.

The Ministry of Health takes prosecutions under the Act and its website states the following factors should be considered in determining whether an area is ‘internal’ or ‘open’:■ whether the area has 100% walls,

sides or screens;

■ whether the area has 100% ceiling, roof or overhead surface;

■ what windows and doors it has;■ the inter-relationship between all

these surfaces;■ the permeability of these surfaces

(eg trellis versus concrete or glass); ■ the ratio of the length and height

of the walls, sides or screens to the ceiling, roof or overhead surface.The Act does not regulate smoking

in an ‘open area’, which unhelpfully is defined as any area not an ‘internal area’. By implication there will be enclosed areas in workplaces that are not ‘internal areas’ for the purposes of the Act, in which persons can smoke. However, the dynamic of the area in question must be assessed to determine if it is sufficiently ‘internal’ to be covered by the ‘workplace’ definition.

SPECIFIC BANSFinally, the ‘workplace’ test

specifically bans smoking in a cafeteria, corridor, lift, lobby, stairwell, toilet, washroom, or other common internal area ‘… attached to, forming part of, or used in conjunction with …’ a workplace.

Some very limited exceptions to the smoking ban relate to work vehicles, rest homes, care facilities and hospitals, prison cells, the employer’s dwelling house, hotel and motel rooms, and cabins on ships and carriages on trains. The qualifying criteria for these are narrow and employers seeking to rely on an exception must ensure 100% compliance or risk prosecution.

Next StepsIt’s difficult for employers to judge what does and what does not comply with the ‘workplace’ test, in particular whether an area is ‘internal’ or ‘open’.

EMA can help businesses assess their workplace for compliance with the Act, with on-site checks on smoking areas. Contact your local EMA office for this service.

Where can people smoke at work?

By Cameron Stuart, solicitor with EMA Central

The Smoke-free Environments Act

was significantly amended last year

with the main changes taking effect

from December 10th. Since then

several businesses have made the

news over their approach to the new

law.

The f irst post–amendment

prosecution was taken against

The Wheatsheaf Tavern on Banks

Peninsula. Leaseholder John Van

Buren initially defended the charges,

though Scoop reported in August

that the prosecution ultimately fell

over anyway when Mr Van Buren put

his company into liquidation, leaving

no legal entity for the Health Ministry

to sue.

In February the New Zealand Herald

reported Graham Wrigley, owner

of the Post Office Hotel in Foxton,

parked a bus outside his pub in an

attempt to get around the smoking

ban. Mr Wrigley claimed the bus

was exempt as it was not part of his

premises.

In July TVNZ reported Progressive

Meats in Hastings was being

sued by the Ministry for allowing

workers to use a smoking room on

site. A company spokesperson was

reported as saying it did not believe

the room was covered by the law.

The meatworker’s union also said the

room was legal.

With more and more employers

testing the boundaries of the new

smoking law, where can people

smoke at work?

background brief

PAGE ��Our Vision. Your Success PAGE ��Our Vision. Your Success

Top payroll people open their homes to staff and come into work at all hours to make sure we get paid.

Last month’s National Payclerk Day saw the announcement of New Zealand’s Payroll Person of the Year. The award, organised by Payroll software provider Comacc, sought New Zealand’s most loved payroll person. Entries were unrestricted so long as they were creative.

Among the 1500 photos, collages, poems and other entries received was the story of a payroll officer who resumed work just two days after a finger amputation – just to meet payday deadlines.

Another opened her home and kitchen when a resource consent delay meant her firm was without

an office. From 6:30am daily she made her house into a makeshift headquarters for a team of truck drivers. The following verse also caught the judges’ eyes:

“Our pay lady - she never makes mistakes.

“This really is amazing ‘cos she drinks her beer by crates.

She’s never really sober but that’s OK with us.

“You wouldn’t want to mess with her - she’s built just like a bus”

The Payroll Person of the Year Award went to Sharon Orum of TQ3 Navigant Ltd who won a two-night luxury mystery break for two, flying Air New Zealand.

Runners up were Sandy Davidson of Wanganui’s Masonic Court Home for the Elderly, and Maryanne Partridge of Ecowize Ltd.

Payroll people applauded

EM

A08

05

Solve this problem with Comacc TimeTrak or Timesheet Calculator – manage timesheets, data entry, and employee attendance – simply.

Call us on 0800 860 002 to fi nd out more or visit www.comacc.co.nz for your free White Paper “Future Trends in Payroll Management”.

In a recent Comacc survey, most payroll people said the thing they would love to change about their job is to eliminate time sheets and data entry.

Most payroll people hatetime sheets – they’re illegible, inaccurate, late andtime consuming!

Com_Aug_EMA.indd 1 8/16/2005 5:25:07 PM

‘Pump classes’ to re-energiseAlexander von Vegesack, Director of the Vitra Design Museum in Switzerland is a key speaker for a series of regional two hour Better By Design ‘pump classes’ mid-November.Alexander von Vegeseack will give insights into the leadership and culture at the Vitra Company, one of the world’s leading furniture design groups. Vitra has most of the sought after designs of the 20th century in production, including those of Charles and Ray Eames. The two-hour events are timed from 4-6pm with network drinks at the end. Wellington is first up on Monday November 14, Christchurch on Tuesday 15th, and Auckland on Wednesday November, 16.To register go to www.betterbydesign.org.nz or contact Desiree Keown 04 910 4374, Mob 027 436 2162; desiree@betterbydesign.

org.nz


A special breakfast workshop focuses next month on how you can safely outsource two of your major exporting issues in trading across the Tasman: getting paid, and logistics.

Key speaker is: Susie Walker, Design & Marketing Manager of Hart Manufacturing. Susie has 24 years experience in export oriented markets for New Zealand made products. Her career includes:■ 8 years with successful swimwear company

Expozay, five of them as CEO of Expozay International, based in Los Angeles managing the North American sales operation.

■ Marketing the Hart Manufacturing brands Vamp and VSSP in the Australian market - they now comprise 60 % of company sales.

■ Chair of FINZ (Fashion Industry of New Zealand,) board member of Textiles New Zealand,(an Industry Development Organisation), and Board member of AUT Fashion Advisory Board.

The seminar in association with Scottish Pacific and DHL will show how you can focus solely on production and sales anywhere in the Tasman trading environment –

all credit arrangements, and logistics issues can be securely outsourced. It’s about freeing up your time, for what you went into business for, and what you’re good at.

The seminar programme will include short presentations on ‘We buy Aussie invoices’ and ‘Eliminating

export/import compliance documentation’.Susie Walker will outline why the apparel

industry has been very successful operating under this model. She will case study Hart Manufacturing showing how you can securely outsource two of your major export issues - finance and logistics. Getting paid is taken care of through with a factoring agreement with Scottish Pacific, and all logistics issues are handled by DHL.

Both companies will back up Susie Walker with their own brief presentations.

November 16th, 7.30 - 9.30 am, EMA, 159 Khyber Pass.($35 + GST. A light breakfast will be served and is included)Register on line at www.ema.co.nz or tel 0800 800 362

Trading across the Tasman

TPL4682

Susie Walker


The importance that tax assumed during the 2005 election campaign has been underlined by the findings of the third annual KPMG-Business NZ Compliance Cost Survey.

The survey results were released late last month showing that tax, as a priority for business, has increased by almost 10 percent over the past year.

Business NZ Chief Executive Phil O’Reilly said that for the 2005 survey almost 49 percent of respondents selected tax as their top priority for improvement, compared with 41 percent last year and 35.5 percent in 2003.

Tax is a growing preoccupation for business, he said, and there is a groundswell of support for reducing tax.

While tax has received unprecedented media coverage recently, generally relating to the issues of tax rates and Government’s tax take, the survey shows tax compliance is just as important, Mr O’Reilly said.

(Compliance costs are the administrative and time costs of complying with legislation e.g. the time and resources involved in working out tax or holiday payments, as opposed to the substantive costs imposed by legislation e.g. the amount of tax to be paid or the amount of holiday pay to be paid.)

This year’s survey found compliance costs increased in most areas, although differences continue by size of enterprise.

In 2005 the average firm shouldered $53,011 in compliance costs, higher than the $36,075 recorded in 2004 and $45,179 in 2003.

Small enterprises (five or fewer employees) bear compliance costs of around $3,604 per employee per year, higher than both the 2003 and 2004 values.

By contrast, an enterprise with over 100 employees faces compliance costs of around $247 per employee per year

In addition, most firms surveyed perceive their compliance problem either to have continued to worsen or to have remained the same.

The figures are higher than some other compliance cost surveys, Mr O’Reilly said, because this survey sample includes all business sizes - not just small to medium sized enterprises, which skew the results downward and hide the true compliance cost burden.

KPMG Partner Paul Dunne said while successive governments have been committed to reducing compliance costs, the survey results show that compliance costs, and tax

compliance costs in particular, are not decreasing to any discernable extent.

After tax the next highest priorities for change are all related to employment law: the Employment Relations Act, health & safety legislation, accident compensation, and the Holidays Act.

Mr O’Reilly said business had borne the costs of changes to employment law over recent years.

“Although the level of change in employment legislation was not as dramatic as in previous years, the perception remains that employment related compliance costs are a major part of the overall costs of complying.

“Also, the results over the last three years reaffirm the view that the compliance costs associated with changes to legislation and regulation

often last well beyond the initial year they are introduced.

“Employers have had to adjust to a raft of changes over recent years, bringing a great deal of disruption to their day-to-day operations. Continued changes that lead to resources being concentrated on compliance rather than growth will not bring the kind of productivity needed to compete in a global setting.”

Mr Dunne said the higher profile of education as an election issue was also mirrored in respondents’ ranking of the helpfulness of central and local government agencies.

As in 2003 and 2004, the agency perceived to be most helpful was the Companies Office. The Ministry of Agriculture & Fisheries was viewed as the second most helpful.

“The big mover down the list to become the least helpful agency was the Ministry of Education, which meant a drop in rating from fair in 2004 to poor in 2005,” he said. “It’s not clear whether this was a reflection of the problems faced by the education sector in the past year or something more deep-seated.”

The Environmental Risk Management Authority (ERMA), which was 2003’s ‘least helpful’ agency, was placed second from the bottom.

About the survey:The KPMG-Business NZ Compliance Cost Survey is the most comprehensive and consistent survey undertaken to measure costs and trends in key business compliance cost areas. The survey covers all industries and regions and all sized enterprises, from the small two-shareholder companies to large corporates. Almost 1200 companies took part drawn from EMA Northern, EMA Central, the Cnaterbury Employers Chambers of Commerce and the Otago-Southland Employers Association. Collectively these enterprises employ over 163,000 full time workers.

Compliance survey confirms groundswell on tax

Phil O’Reilly


Current estimates have over half of all company vehicles, from small cars to the biggest B train truck combinations under lease agreements. Another 30 percent are financed. At any one time there are over 80,000 leased vehicles on our roads.

A lease is effectively a long term rental. You might be a petrol head, but the cost of administering a fleet is a hassle and an unnecessary business expense.

The biggest benefit of leasing is knowing exactly what your fleet operating costs are each month, and those costs are fully tax and GST deductible as business expenses.

The most popular lease now is a fully maintained one, where the lease company covers the cost of virtually everything, including regular maintenance, registration and WOF’s.

The only additional cost is covering the inevitable bumps and scrapes vehicles receive and putting right any unreasonable wear and tear at the end of the lease period. The clauses covering the end of a lease are often very specific on how this is to be calculated and charged.

Independent assessors of a vehicle’s condition can be used to sort out any disagreement between the lease company and the business leasing the vehicle.

Leasing’s biggest single benefit is the freeing up of large amounts of

capital that would otherwise be spent on purchasing a fleet. Capital can be used for other business activities since the lease company still owns the vehicle and takes on the risk of how much it might depreciate.

Taken to its logical conclusion lease contracts can be done across a whole fleet, so the lease company gets volume business and the company leasing all its vehicles can “get on with the knitting.”

Some leases provide the option to purchase the vehicle at the end of the lease period, a potential business expense to be managed, but ultimately the vehicle has to be disposed of, which partially negates the reason for leasing in the first place.

Many lease companies also offer ancillary products such as fuel card discounts and reporting. plus insurance options and accident management, services which tend to be more cost effective because of the bulk buying power of the lease company compared to an individual business.

Major brands like BMW, Ford, Holden, Honda, Nissan, Subaru and

Toyota all offer lease packages through their dealer networks, while other lease companies specialise in the luxury and high performance market.

There are disadvantages to leasing. Most leases are for new vehicles, so the weekly or monthly costs can seem quite high for the lease company to cover the initial high depreciation cost.

If you can find a vehicle to lease that is one or two years old, the costs can be reduced significantly as high initial depreciation has already been covered by somebody else. Some lease companies specialise in this area of the market.

The other major negative can be the length of the lease - up to 45

months. Your business operations may change considerably in that time and the vehicle leased two or three years ago may not remain suitable.

Lease contracts can be broken but the penalty clauses will hurt the bottom line, so it pays to weigh up if the use of the vehicle will be relevant for the full term of the lease contract. Otherwise negotiate a shorter lease period which can be as short as six months and structured to suit.

Some lease companies are tied to certain manufacturers and may push certain models. Make sure you definitely want the kind of vehicle on offer as there are always plenty of other options.

One thing is certain, leasing is on the increase and if a vehicle is being sold new - as distinct from a second hand import - then a leasing company will have a package for it.

Introducing the biggest, most powerful Pathfi nder ever: 4.0L, 198 kW petrol V6 or high performance common rail diesel. And seven seats as standard. More space. More power. Better stories. For more information call your local Nissan dealer on 0800 4NISSAN or visit www.nissan.co.nz

NIS2113\TBWA

NIS2113 - Pathfinder HQ.indd 1 13/07/2005 3:38:33 PM

Nissan TorqueFor small and first time vehicle fleet managers

Leasing is an increasingly popular way for companies to organise their vehicle fleet


The Executive Connection, the largest international organisation for ongoing professional and personal development of chief executives - has been launched in New Zealand.

The Executive Connection (TEC) approach to learning and development is not based solely on coaching or mentoring but also atest management thinking and techniques.

Inaugural TEC groups will be established and chaired by businessmen John Henderson in Auckland and John Jenner in Wellington, both of whom have been involved with TEC groups in Australia.

“Our research tells us that to compete in a global market, local chief executives have to compete on value and quality not volume,” said

Mike O’Neill, CEO of The Executive Connection, New Zealand and Australia.

“The groups work like an external board. Each is characterised by energy and trust, and the individuals involved are direct and ultimately they feel accountable to each other,” said Mr Henderson, whose experience includes 28 years with Sheraton Hotel Corporation, including four years as chief executive. He is an independent director for CDL Hotels and Chairman of the Hospitality & Business Industry Advisory Boards at New Zealand Management Academies.

Mr Jenner has worked as CEO of the Industries Development Commission and deputy Chief Executive Officer of the NZ Trade Development Board. He was also the Executive Director of the Australia New Zealand Business Council.

About The Executive ConnectionThe Executive Connection was

founded in the USA in 1957 and has a global membership of over 9,000 chief executives in 15 countries. It began in Australia in 1986 and currently has over 800 members there.

Members are placed in groups of up to 16 non-competing peers to gain insights and learn from each other’s business experiences. Each group is led in a one-day session, once a month, by a TEC chair, a highly experienced business profes-sional with specialised mentoring skills. The day consists of interactive speaker sessions and issues workshops. The chair also holds one-on-one sessions once a month with each member of the group to address individual needs.

For more details: www.tecnz.net.nz or call Sherryl Caulfield 021 621 573

Developing New Zealand’s CEO’s

• strategic advice

• practical solutions

• advocacy

TPL4848

Specialist Employment Lawyers Our high success rate reflects our expertise. We specialise in employment law and we act only for employers. As part of a member-owned organisation, EMA Legal offers services that are excellent value. Main offices are in Auckland and Wellington.

Contact for more information: Susan-Jane Davies, Managing Solicitor Telephone 04 470 9923 or email sjdavies@emalegal • org • nz


Ray Archer, chief executive of AuCom Electronics in Christchurch, is one of a growing number of New Zealand businesspeople who recognize micro-finance is a critical element to sustainable economic development in some of the world’s poorest nations, like Cambodia in South-East Asia.

Archer’s company has for years supported World Vision’s Child Sponsorship programme with staff also involved by having one sponsored child allocated to them. But recently Ray and his wife decided also to personally contribute to World Vision’s specialist Micro-Enterprise Development (MED) programme, VisionFund.

VisionFund (VF) provides business training and small loans of around US$100 to the entrepreneurial poor in the developing world. With coaching, and the provision of micro-credit loans, entrepreneurs are can make major steps forward; moving from the rubbish dump (literally) to the beginning of a small business dream with a better life for their families and community.

“We see this as an effective way of encouraging sustainable self-sufficiency for entrepreneurial folk in the poorer countries,” Archer said. “This is an efficient means of helping the poor while minimising overhead costs.” He recommends the World Vision programmes to any businessperson with a desire to help others help themselves.

He says his suppliers and interna-tional customers are also impressed with AuCom’s commitment to World Vision.

VisionFund clients typically live in communities served by World Vision development projects. Their families benefit from clean water, food, agricultural training, education, health care, and non financial economic assistance like skills training. VisionFund loans are paid back at a higher rate than in Western countries (more than 98%) to allow the money to be re-loaned to others to work themselves into a better life.

The entrepreneurial poor of the developing world have no access to

reasonable financing in their country and need help from New Zealanders.

Full details of VisionFund Cambodia are

available at www.visionfund.org.nz or

contact Brenda Saunders on 09 535 8371

or 021 777 171.

Kiwi business helps entrepreneurs in Cambodia

Better noodles, better choices Just one example of someone who has benefited from

VisionFund Cambodia is Lim Ey. Ey’s story demonstrates an

entrepreneurial spirit and a willingness to work long hours

to create a better future for his family, plus gritty determi-

nation amidst debilitating poverty.

He’s an excellent noodle maker but it’s not easy to make

a living from noodles when you’re living in poverty. The

equipment is expensive, and you can’t afford the main

ingredient for noodles, good rice. Ey built his own equipment

but he still had to borrow rice from grain merchants to

produce enough noodles to make a meagre income for his

family, less than a dollar a day. For over 20 years he was

stuck in a vicious cycle of debt, work, poverty and hunger.

Ey survived through sheer hard work. Then he applied for his

first VisionFund MED loan just one year ago. He borrowed

US$80 and bought a large supply of good quality rice, and....

a pig! He fed the pig on the surplus noodle by-products; the

pig grew and he sold it seven months later for US$120. He

bought four more pigs.

Because of the good quality rice, his noodles were selling

better. Instead of 100kg of noodles a day, he’s now producing

up to 700kg a day and employing his relatives to help. He’s

now earning $6 a day, and only pays 4% interest on his loan.

He’s on the road to self-reliance. In his own words: “For the

first time in my life, my family can make choices. I can choose

better quality rice. I can build my business as I choose. My

children can choose a better future.”

Ray Archer, CEO AuCom

Lim Ey built his own equipment to make better noodles


Marque Magnetics, a specialist manufacturer based in Avondale, Auckland, designs and makes transformers, chokes and a wide range of specialty electronic wound components. They also import and market high volume switch mode power supply units made in their plant in China.

Marque Magnetics started out in 1986; they now employ 49, with exponential growth locally and internationally.

Speed to market, efficiency, and no-charge design services, coupled with fast prototyping and competitive pricing is proving to be the formula for success – orders come from Asia, Europe and the US.

This expansion phase started in early 2001 with Marque Magnetics setting up a joint venture company, Huigao Magnetics Ltd, in Tianjin, China, in partnership with a large local state owned enterprise employing over 300 people and tailored to manufacture medium to long runs of wound components.

Marque Magnetics’ client base includes Fisher & Paykel, TruTest, Navman and Tait Electronics. It recently won the contract to supply Cabco, a Kiwi company manufacturing high tech shopping trolleys integrated with TVs for the US giant retailer Walmart.

To maintain control over its rapid growth, Marque Magnetics selected Vantage ERP from COGITA after a two-year search. Vantage met Marque’s requirements for a system that was integrated, easy to use, with compre-hensive production scheduling functionality, and an ability to tighten inventory control.

“Our team took this implementation seriously and we made sure we did the homework,” said Marque’s

Vantage Project Manager, Wendy Haughie. “We’ve also learnt a lot more about our business processes thanks to COGITA’s consultants. We are now rewarded with instant data on inventory balances and history, quotation hit rates and all design changes,” she said.

Marque Magnetics: growth exponentially

Wound electrical components are the basis of Marque Magnetics growth

Public HolidaysChristmas Day 2005* Sunday 25 December 2005Boxing Day 2005 Monday 26 December 2005Christmas Day Holiday 2005 Tuesday 27 December 2005New Years Day * Sunday 01 (03) January 2006Day Following Monday 02 January 2006Auckland/Northland Anniversary Day Monday 30 January 2006Waitangi Day Monday 06 February 2006Good Friday Friday 14 April 2006Easter Monday Monday 17 April 2006ANZAC Day Tuesday 25 April 2006Queens Birthday Monday 05 June 2006Labour Day Monday 23 October 2006Christmas Day Monday 25 December 2006Boxing Day Tuesday 26 December 2006* If the Sundays are not otherwise working days for an employee then the public holiday must be treated as falling on the following Tuesday.

2006 New Zealand State Schools Terms and HolidaysThese dates take into account public holidays, but do not include the local anniversary day holiday. For local Anniversary Day holidays: http://www.emadvice.co.nz/Publications/NZ-Public-Holidays/2006.asp

2006 NZ State Primary and Intermediate School TermsTerm 1 Tuesday 07 February - Thursday 13 April 2006Term 2 Wednesday 26 April - Friday 30 June 2006Term 3 Monday 17 July- Friday 22 September 2006Term 4 Monday 09 October - Wednesday 20 December 2006

2006 NZ State Secondary and Composite School TermsTerm 1 Tuesday 07 February - Thursday 13 April 2006Term 2 Wednesday 26 April - Friday 30 June 2006Term 3 Monday 17 July - Friday 11 August 2006 Monday 21 August - Friday 22 September 2006Term 4 Monday 09 October - Friday 15 December 2006

2006 Public Holidays for SchoolsSchools will be closed in 2006 on Saturdays, Sundays and on the following holidays:Waitangi Day Monday 06 February (occurs in school holidays)Good Friday Friday 14 April (occurs in school holidays)Easter Monday Monday 17 April (occurs in school holidays)Easter Tuesday Tuesday 18 April (occurs in school holidys)ANZAC Day Tuesday 25 April (occurs in school holidays)Queens Birthday Monday 05 June (occurs in term 2)Labour Day Monday 23 October (occurs in term 4)And the local Anniversary Day holiday. [See website reference above.]

Contact the AdviceLine – Ph: 0-9-367 0909; or toll free 0800 800 362.

2006 HolidaysIt should be noted that an employer may require an employee to take annual holidays if they are unable to reach an agreement

on when the annual holiday entitlement is to be taken or in the event of a customary closedown. In these circumstances the

employer must give no less than 14 days notice to the employee of the requirement to take the annual holidays.



ERP scents success for fragrance wholesaler

CS Company, New Zealand’s largest independently owned marketer and distributor of fragrances and cosmetics, has been in operation for nearly 30 years, initially as a manufacturer and now focused solely on distribution. Lately CS Company had achieved double digit growth over five years acquiring new brands year-on-year but from 2003 the home-grown IT system couldn’t cope. The company had increased its turnover by over 150 percent. A particular problem was CS Company’s sales ordering system. It wasn’t coping with the increased throughput, lacked stability, and couldn’t support technology integration.Extracting real-time, live data from their system was also proving difficult. Staff found this hindered their ability to track customer trends and respond.In 2003 CS Company put their technology support out to pitch with a Request for Proposal to eight potential partners.

background brief

Our outdated IT system was always falling over and. in addition to this, our initial software supplier ceased to trade, so we were totally unsupported for about a year, said CS Company’s Financial Controller Ray Guilford.

“We were in limbo, hoping nothing would go wrong,” he said. “From a technology perspective, it was definitely time to move on, but we were fairly cautious because on two separate occasions our local software provider had folded.

“As a small company but with immediate ambitions to grow towards medium-size, we needed a mainstream and well-supported technology platform, delivered by a technology partner we could put our faith in.”

“Axapta wasn’t initially one of the eight options that came back to us, but after a month of consideration we felt Microsoft looked strong.

“Koorb seemed to fit with CS Company’s culture,” Guilford said. That Koorb is also a smaller company in a growth phase, with a team ‘on the ball’ and ‘easy to work with’ was an attraction.

“The system we’ve put in won’t

change in my lifetime. I’m confident when we upgrade we can add elements and Axapta will cope well with what we want to do. We now have a really stable technology backbone capable of taking up to 3,000 users.

“The new system has saved a huge amount of time. I would estimate that our time saving is around a week each month, which creates more time to focus on growing the business.

“Previously I had to run finance files every month and use pivot tables to analyse sales data. Invariably things would change and throw it all out.

“The real proof is we have managed to introduce new brands without expanding staff numbers.”

"Now we print in real-time, so orders can go out straight away and we can get orders to Auckland-based customers in the same day.

“By replacing a number of legacy applications with one integrated solution, we’ve been able to streamline business processes, both within the business and with customers and suppliers. Significant time-savings and better analysis tools support smarter decision making, which results in increased sales, profits and improved levels of customer service.”


Wednesday, 2 November 3.30pm – 4.45pm Copthorne Solway Park, High Street South, MASTERTONTuesday, 8 November 3.30pm – 4.45pm Angus Inn Hotel, Cnr Cornwell St & Waterloo Rd, LOWER HUTTThursday, 10 November 10.00am – 11.30am (With brief AGM) Collegiate Motor Inn, 122 Liverpool St, WANGANUIThursday, 10 November 3.30pm – 4.45pm (With brief AGM) Kingsgate Hotel, 110 Fitzherbert Ave, PALMERSTON NORTHTuesday, 15 November 3.30pm – 4.45pm (With brief AGM) Duxton Hotel, Cnr Grey & Featherston Sts, WELLINGTONWednesday, 16 November 3.30pm – 4.45pm (With brief AGM) Rutherford Hotel, Trafalgar Square, NELSONWednesday, 23 November 7.00am – 8.45am ( Inc breakfast) Tatapouri Sports Fishing Club, Gisborne Wharf, GISBORNEWednesday, 23 November 2.45pm – 4.00pm War Memorial Centre. Marine Parade, NAPIERWednesday, 30 November 10.00am – 11.30am Fonterra – Whareroa Site, Whareroa Rd, HAWERAWednesday, 30 November 3.30pm – 4.45pm Plymouth International Hotel, NEW PLYMOUTH

EMA CENTRAL

Spring Schedule - 2005 FREE briefings for all EMA membersEMA Northern To register: Call AdviceLine on 0800 800 362; or email [email protected]

Waikato/Bay of PlentyTuesday, 25 October 9.30am - 11.10am War Memorial Hall, 200 Mary Street, THAMESTuesday, 25 October 3.00pm - 4.40pm Hotel Armitage, Willow Street, TAURANGAWednesday, 26 October 9.30am - 11.10am Tuscany Villas Motor Inn, 57 The Strand, WHAKATANEWednesday, 26 October 3.00pm - 4.40pm Huka Village, Huka Falls Road, TAUPOThursday, 27 October 9.00am - 10.40am Grand Tiara Hotel, Fenton Street, ROTORUAThursday, 27 October 1.30pm - 3.10pm Putaruru Timber Museum, 2337 Taupo Road, State Highway 1, PUTARURUThursday, 27 October 5.00pm - 6.40pm Panorama Motor Inn, 59 Awakino Road, TE KUITIFriday, 28 October 9.00am - 10.40am Kingsgate Hotel Te Rapa, 100 Garnet Avenue, Te Rapa, HAMILTON Auckland Monday, 31 October 10.00am - 11.40am North Harbour Stadium, Referee’s Lounge, Appian Way, ALBANYMonday, 31 October 3.00pm - 4.40pm Bruce Mason Centre, 1 The Promenade, TAKAPUNATuesday, 1 November 10.00am - 11.40am Crowne Plaza, 128 Albert Street, AUCKLAND CITYTuesday, 1 November 2.30pm - 4.10pm Lincoln Green Motor Hotel, 159 Lincoln Road, HENDERSONWednesday, 2 November 9.00am - 10.40am Titirangi Golf Club, Links Road, NEW LYNNWednesday, 2 November 1.30pm - 3.10pm Novotel Ellerslie, 72-112 Greenlane Road East, ELLERSLIEWednesday, 2 November 4.00pm - 6.00pm EMA AGM,Novotel Ellerslie, 72-112 Greenlane Road East, ELLERSLIEThursday, 3 November 10.30am - 12.10pm Pukekohe Rugby Football Club, 81 Franklin Road, PUKEKOHEThursday, 3 November 3.00pm - 4.40pm Quality Inn Manukau, 477 Great South Road, PAPATOETOEFriday, 4 November 9.00am - 10.40am Waipuna Conference Centre, 58 Waipuna Road, MT WELLINGTONFriday, 4 November 3.00pm - 4.40pm EMA Board Room, 159 Khyber Pass Road, GRAFTONMonday, 7 November 7.30am - 9.10am EMA Board Room, 159 Khyber Pass Road, GRAFTONMonday, 7 November 11.00am - 12.40pm Centra Auckland Airport, Corner Kirkbride & Ascot Roads, MANGEREMonday, 7 November 3.30pm - 5.10pm Hawkins Conference Centre, 13 Ray Small Drive, PAPAKURA Northland Tuesday, 8 November 3.00pm - 4.40pm Scenic Circle Bay of Islands, Seaview Road, PAIHIAWednesday, 9 November 9.30am - 11.10am The Northerner, Corner North Road & Kohuhu Street, KAITAIAWednesday, 9 November 4.00pm - 5.40pm Gilmore Brown, 4th Floor, 30-34 Rathbone Street, WHANGAREIThursday, 10 November 9.00am - 10.40am Kingsgate Hotel Whangarei, 9 Riverside Drive, WHANGAREIThursday, 10 November 2.00pm - 3.40pm Irwin Industrial Tool Co Ltd, 22 Hood Street, WELLSFORD

To register: Contact Sandra Webley (04) 470 9947; or email [email protected]

“Could, or Would Dismiss?” How one word will impact your decision to dismiss someone.■ An explanation of the new test for

justification.■ What would a fair and reasonable

employer do?

Contractors: A brave new world■ How the decision of Bryson v Three Foot

Six impacts on your relationship with contractors.

■ Contracting out and vulnerable employees: the government strikes back.

Workplace stress: Using stress to build your competitive advantage!■ Learning lessons from employers who

got it wrong. and building the positive to develop systems for managing “stress”.

■ Build your competitive advantage and keep good staff through “proactive” stress management.

The briefings will cover:

The new Nissan Murano. With a 3.5L V6 engine, ALL-MODE 4x4, and starting from $55,450, the only thing the new Murano lacks is imperfection.For more information call your local Nissan dealer on 0800 4NISSAN or visit www.nissan.co.nz

NIS2147\TBWA

“HONESTLY, I CANNOT THINK OF A SINGLE THING WRONG WITH IT.” Jeremy Clarkson, Autocar on Sunday

NIS2147 - Murano EMA HQ.indd 1 30/08/2005 3:25:20 PM

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