Backing youth development pays off - The Employers and ... Plus... · Backing youth development pays off ... Trial Periods: The hidden issues Making good use of the new 90 day grievance

Exclusive EMA news, advice, learning and networking I ssue 56 + February + 2009

EMA Northern & Central are the major stakeholders in:

Backing youth development pays off

■ Crisis, what crisis?■ The positives about the crisis ■ Doing something about the crisis

In this issue:

How to use the new 90 day grievance free law

Islamic banking: pay no interest!

ACC: What needs to change?

be sure

MeMber profile

Our Vision. Your Success PAGE 1

FINANCE

NETWORKING

TECHNOLOGY

MANUFACTURING

RECRUITMENT

Machine shop challenges assumptions

NZ Central opens in Shanghai

New focus for EMA's employment services

Chewing the fat to smarten your operation

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Beating market turbulence in 2009 Paul Winter on the economy

Crisis, what crisis?EMA Central's new president Peter Mckee shares his views

ACC both gamekeeper and poacher

Positives for 2009

Doing something

Trial Periods: The hidden issues

Making good use of the new 90 day grievance free law

How to cope with smelly people:

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07

09

FINANCE

NETWORKING

TECHNOLOGY

MANUFACTURING

RECRUITMENT

FINANCE

NETWORKING

TECHNOLOGY

MANUFACTURING

RECRUITMENT

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14

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A great time for recruiting

Islamic banking, What you need to know

Lean values applied to warehousing distribution

Your business needs a drugs policy!

Life lessons not just for kids!

FINANCE

NETWORKING

TECHNOLOGY

MANUFACTURING

RECRUITMENT

Forging a sponsoring partership with a not for profit organisation like the Foundation for Youth Development can deliver commercial and social benefits to all parties; the kids, the sponsor, and the Foundation. For the full story go to page 4

On the cover

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ISSN No. 1176-4953

be sure

09

get a griphot tips for higher productivity

25

11

Vili to MOTIVATE '09

The AdviceLiner

PAGE 2 EMA Business Plus Magazine - Exclusive EMA news, advice, learning and networking

By Paul Winter, Chief Executive, EMA Central

Peter Mckee has been elected as the new president of EMA Central, taking over from Trevor Goodwin who remains on the board. Trevor is also now President of Business New Zealand. Prior to taking on his current role as CEO of Windsor Engineering Group Ltd, Peter had a background in banking, IT and retail.Peter has had a long involvement with EMA Central. He helped negotiate the merger of the Wellington region’s employers’ and manufacturers’ associations, was also a member of the steering committee and initial Council of Business NZ, and is a current member of Business New Zealand.

EMA Central’s Council and Branch Representatives for '09: Peter McKee (President), Norrey Simmons (Vice President), Keith Smith (Vice President), Trevor Goodwin, John Swan, Vaughan Renner, Clare Hadley, Keith Hansen, Patrick Jones, Dean Schmidt, Todd Moir, Greg Harford, Audrey Young, Denis Flynn, Justine Martin, Lee-Anne Ketchen and Murray Ferris.

New EMA Central President elected

What a difference a year makes! Last year, after a decade of solid growth behind us, our ability to keep on improving our standard of living was being taken for granted - the public and political focus was on environ-mental challenges, global warming in particular.

Not so now. One mighty nation after another has taken extraordinary measures to protect the real economy of their countries from the asset price collapses following the liquidity and financial crises. As one writer said, a good old fashion recession often does more to dampen excess pressure on the environment than a whole raft of government policies.

Restoring confidence and trust in the financial markets is the key, and over time this is starting to happen, as evidenced by the declining interest rate margins the banks are now paying relative to their LIBOR reference rate.

Most government action is at a national level with some like the EU, not surprisingly, using the excuse to slip back into old fashioned protec-tionism, like subsidies to their farmers.

Credit has to be given John Key for earning recognition at the APEC meeting in Peru late last year when he warned of the dangers of exacerbating the current worldwide challenges if countries don’t heed the lessons of

the 1930’s recession. They must not pull back from their commitments to international trade.

The implications for our businesses and the people of New Zealand in 2009 are clear. Forget about paper based wealth and get back to the fundamentals of increasing the value that our businesses and enterprises deliver to our customers. Provided your business has a reasonably strong balance sheet and you keep a sharp eye on protecting your cash flow, you should have the courage to explore the opportunities still present, even in turbulent markets.

So how focused are you on your customers? Do you know how they are coping in the changed environment? The evidence shows that many of our players in our primary, manufacturing and services sectors are sure of the markets and market segments where they can succeed.

Bruce Goldsworthy reminded us in an article in December “Manufactured exports demonstrate competitive success” that as a nation we have under estimated that sector’s ability to cope with challenging conditions and the rise of low labour cost manufacturers. Government policy advisers and the media may be diverted by concepts such as sunrise and sunset industries, but the real world is quite different.

How different, was hammered home to me in a great article in the

Economist (January 09). It discussed Rolls Royce as an example of a British manufacturing company that had transformed itself into a world-class company by developing a range of both manufacturing and services products. It pointed out in practice there is no clear demarcation between what counts as a service and what is manufactured.

The best of what we do in New Zealand reflects the same understanding.

We are also better qualified to judge which activities are best carried out here and which should be located close to our international customers.

We need to build on these competitive strengths, domestically and internationally. Our small, niche focused enterprises have nothing to fear competing in key markets like China when we practice our native agility.

The worst forecast for China in 2009 is their GDP might slow to six per cent instead of the double digit growth they are used to. But with a very competitive New Zealand dollar and the recently launched Free Trade Agreement, now is the time for New Zealand businesses to go on the front foot to seek out new market opportu-nities there.

Of course we must always strike the right balance between risk and reward but even in declining markets we can win market share and prosper.

Beating market turbulence in 2009

Peter McKee

PAGE 3Our Vision. Your Success

Who would want to be a president or a prime minister today? I wish them good luck, and that the wheel turns soon.

Of course, in times like these some businesses and sectors will do well and others struggle. Timing has a lot to do with it. Getting into any investment at its peak and relying on it to continue will now be a strain.

Do we need regulation to protect us from some of the excesses we’ve heard about or got involved in? Or do we just need a little less greed? Possibly both. I think of the Madoff scandal on Wall Street and wonder how can so many seemingly sound, sensible and savvy investors be duped? If it’s too good to be true it probably is. If the inexpe-rienced are getting on board it’s a sure thing it might be time to get out.

So we have what we have, an economic world that a short time ago was in denial and is now in crisis. Governments are stepping in and being welcomed, whereas just recently their intervention was spurned.

I was surprised to hear the Reserve Bank in December make a reference to the recession being over. The Bank of New Zealand /Business NZ Performance of Manufacturing Index and later business surveys suggest otherwise. I wonder what the Reserve Bank position is now. Still the supermarkets are reportedly happy.

I did agree with the Governor when he said that in these strange times every business will have to accept some of the cost for the greater good - a reference to margins, passing on savings, reflecting new world prices etc etc. And let’s look after our own so Buy NZ made.

Well, that’s the lecture, business must go on. What can business and Government do?

It’s time to knuckle down and take a good look at our short and medium term future, assess and take the steps you know are needed, both positive and negative, in order to get through and maximise your position.

Decide on the key indicators affecting your business and the timeframe by which you must see their trend and take action. For exporters, many factors are turning positive – the dollar and freight costs for example, but you still need buyers – is the demand there?

Our company, Windsor Engineering Group, is a case in point as we push part of our business of supplying machinery for the sawmilling sector into the USA. We gave ourselves a target, a budget and a timeframe. After a lot of hard work and almost out of the blue we secured a significant order just before Christmas. Plan close, but on track!

What about the bigger economic picture? Governments everywhere are introducing measures to encourage economic activity, investment confidence and spending. Some

unprecedented, some flying ironically in the face of previous clear and supported economic theory and policy: Tax cuts (for spending), infrastructure investment, business support packages, export credits, business re-nationalisations, and deposit guarantees. For business in NZ two key elements are missing – credit remains tight or expensive, and where’s the incentive to act?

Sense and good business theory suggest a sound investment will still go ahead. That may be so but it’s not necessarily the case in the current climate. Investment in capital plant, new machinery, productivity improvements, even whole new manufacturing opportunities which create employment are being stalled.

One answer is to accelerate depreciation: If not by permanently shifting or loading depreciation rates, maybe as a one off incentive to act now. Such schemes simply defer the timing of tax revenue to the Government. They need not be a permanent cost as is often argued. And don’t think this is a new idea, unaccepted internationally. The UK annually reviews its rates to suit current economic goals. Meanwhile Australia has just announced a one off 10% Temporary Investment Allowance to encourage capital investment this year in addition to normal depreciation deductions.

Hey, they’ll even allow it on buying cars! (Aussies 1, NZ 0)!

By Peter Mckee

Crisis, what crisis?

Strategic advice Practical solutions Skilled representation

Key contacts Susan-Jane Davies (04) 470 9923 [email protected] Parvez Akbar (09) 367 0931 [email protected] Maree Kirk (03) 548 4513 [email protected]

Specialist Employment LawyersOur high success rate reflects our expertise. Our 13 lawyers specialise in employment law and only act for members. As part of a member-owned organisation, EMA Legal offers services that are excellent value.

EMA Central’s new president, Peter McKee, shares his views on coming to grips with the economic downturn.


The commercial benefits in partnering with not-for-profit organisations has been widely reported, and it’s a growing trend even in these straightened times.

A powerful example of the benefits is evident in the successful relationships developed and fostered with private companies by the Foundation for Youth Development.

“We have found over the years there are a variety of ways companies can effectively partner with us,” explains co-founder Graeme Dingle.

“It’s become less about pure corporate social responsibility and more about positive outcomes for both a company and us. We have seen these benefits can eventuate in a variety of ways.”

An example is one of the Foundation for Youth Development’s first partnerships with Carter Holt Harvey facilitated through Chris Liddell (now CFO for Microsoft). The partnership was formed around Carter Holt’s desire to develop business leaders. Chris Liddell saw that Project K Mentoring could be part of leadership development.

The five year partnership was profoundly successful because all Project K mentoring was co-branded with Carter Holt Harvey, 150 CHH personnel were trained to be Project K mentors, and Foundation for Youth Development programmes were established in the towns with a strong CHH presence; Tokoroa and Putaruru.

Among Foundation for Youth Development’s current partners are Bidvest which contributes to the programme by allocating a proportion from each sale of their Smart Choice brand. They also have staff involved in mentoring and offer Project K students work experience.

“This provides a win-win for everyone,” says Nigel Boswell,

Managing Director of Bidvest. “We have the opportunity to grow our sales while at the same time improving community outcomes.”

Lion Nathan supports Foundation for Youth Development more subtly. But the company echoes the same appreciation of strong ties with the community.

“Lion Nathan's goal for its investment in the community is to reduce the impact of alcohol misuse on individuals, families and

communities,” says Liz Read, Lion’s Corporate Affairs Director.

“Achieving that goal relies, in part, on ensuring that young people have self esteem and support, so that if and when they do begin to drink alcohol, they do so safely, sociably and without misusing it.

“Given these shared objectives, we are partnering with Foundation for Youth Development to raise funds for their programmes, in particular Project K.”

Fishing company Sanford has taken an environmental approach to their

partnership with the Foundation for Youth Development’s primary school programme, Kiwi Can.

“Through our approach with the Foundation we are able to provide funding and materials for environ-mental education and reach an important audience in an innovative way,” says Sanford’s Managing Director, Eric Barratt.

Deloitte, Price Waterhouse Cooper and Chapman Tripp also sit proudly among the Foundation for Youth Development’s other corporate partnerships. “These organisations

Adding community contributions to your ma rketing mix

Pictured above, left to right is Nigel Boswell, Bidvest Managing Director, Lani French, Foundation for Youth Development National Programme Manager and Graeme Dingle Foundation for Youth Development Co-founder)


Adding community contributions to your ma rketing mix

Eric Paton Ltd, an Auckland based precision engineering facility is encouraging local industry to re-think the assumption that an original equipment manufactured replacement machine part will cost less than the same part manufactured locally.Though original parts are often manufactured in runs of hundreds, or even thousands, Eric Paton Ltd has proven it can manufacture replacement parts, identical to the original, with cost and delivery benefits to the customer.Eric Paton Ltd says that while cost savings and better delivery times cannot be guaranteed, it’s worth challenging them to deliver these benefits.Eric Paton Ltd has been reducing companies’ costs for more than 50 years with a range of machining services that reduce downtime, cut operating costs and extend the useful life of machinery.

Machine shop challenges assumptions

This machine part was manufactured by Eric Paton Ltd, saving the customer over $1000 and slashing 57 days from the delivery time for an original equipment manufactured part.

assist us financially and in legal and accounting areas and have told us that working with us has allowed learning opportunities for their staff,” said Graeme.

“Part of the Foundation’s success is that our dynamic and professional team of business development managers are always on the lookout for new partnerships.

“We are currently seeking a variety of partners throughout New Zealand, small companies and large. For example we don’t have a partnership with a bank.”

“There are so many benefits, extending for example to networking at the Deloitte Prime Ministers Business Leaders Dinner where we are able to invite some of our key partners.”

If your business is interested in discussing a potential partnership with Foundation for Youth Development then you can contact: Graeme Dingle: 021 420 947 or Desley Simpson: 021 971 786 The Foundation for Youth Development operates Kiwi Can, Stars and Project K programmes currently reaching over 16,000 young people aged 5-18 years.

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The media recently spent a lot of time commenting on the impact of the 90 day trial period legislation, particularly around the haste with which it was enacted. Unfortunately the criticism may have some foundation. As it stands, the trial period law raises many questions.

The Act provides that from 1 March 2009 an employer and a new employee ( i.e. who has never been previously employed by that employer) can enter into a trial period of a specified period of up to 90 days. This trial period must be written into the employment agreement. If the employer, at the beginning of the day that the employment agreement is entered into, employs less than 20 employees then it can take advantage of the grievance free provisions of the legislation.

EligibilityThe trial period must be written

into the employment agreement that the parties sign and clearly state the factors spelled out in the legislation in order to take effect. For this reason we recommend employers seek advice on the wording of an appropriate clause before implementing it into their employment agreements.

The new employee has to agree to the trial period at the start of the relationship for it to have effect. If an employer lets the employee start work without the employee agreeing to the clause by signing the employment agreement, the employer may well have waived reliance on the trial period provision.

If there is a collective employment agreement in place that covers the work the employee will be doing, it may not be possible to have a trial period, though additional terms and conditions of employment can be agreed provided that they are not “inconsistent” with a collective

agreement. If the collective agreement is silent as to trial periods, any other document seeking to introduce a trial period may be inconsistent with the collective agreement and will therefore be void, particularly if there is potential for the trial period to have a detrimental effect on the employee.

For a trial period to apply, the Act refers to the employer having “fewer than 20 employees” so independent contractors are not covered. Part time employees are included, as are casual employees currently working for the employer . Casual employees not currently engaged to work are likely to be excluded. The date when the parties enter into the employment agreement is a question of fact – it is likely to be on the day that the last party signs the employment agreement.

Lastly, the employer must give the employee notice of dismissal before the stated trial period ends. The trial period can be no longer than 90 days , so a shorter trial period is possible if this is what the parties agree to in the employment agreement . If notice of dismissal is given outside of the stated trial period then the normal personal grievance regime applies.

Personal grievances still possibleProvided the criteria are met,

the employee is barred from raising a personal grievance “…in respect of the dismissal”. However, the employee can still raise a personal grievance alleging unjustified disadvantage, unlawful discrimi-nation, sexual or racial harassment, duress due to union membership or non-membership, or can allege that the employer has failed to meet the statutory requirements regarding the sale or transfer of a business . Claims can also still be raised for breach of good faith, failing to pay the minimum wage, unauthorised deductions from pay, breaches of the Holidays Act etc.

This still gives employees a lot of scope to challenge an employer’s actions during an agreed trial period. Claims that the new law would allow employers to sack pregnant employees without recourse are incorrect. An employee in such circumstances could raise a personal grievance alleging discrimination on the grounds of sex, and could claim monetary remedies as well as reinstatement.

Avoid law breakersThe biggest area for potential

claims would appear to be around unjustified actions of the employer that cause disadvantage. Such claims are still allowed despite the law change. Unjustified actions can be breaches of the express terms of an employment agreement (e.g. where the employer fails to follow a process specified in the employment agreement), as well as breaches of the implied duties that an employer owes to its employees.

One key implied duty is to act fairly towards the employee. It is therefore possible that an employer who dismisses an employee within a valid trial period could still face a personal grievance claim alleging unjustified disadvantage on the basis that the employer failed to follow a fair process, and did not put the employee on notice of the allegations, or allow representation and/or time to improve etc. Whether the Courts will allow such actions from employees or not remains to be seen. Regardless, some employers will undoubtedly find themselves having to defend test cases.

Until the Courts provide guidance on these legal issues we recommend that eligible employers who wish to dismiss an employee within a valid trial period follow a fair process, which is the same process they would follow currently without a trial period. Employers are advised to proceed with caution; the new trial period law is not a panacea for dealing with new employees.

By Blair Scotland, Senior Solicitor, EMA Legal

Trial periods: The hidden issues


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Check out our special offer exclusive to EMA members.

Finally, a ray of light at the end of the long employment relations tunnel: The new law on 90 day trial periods comes into effect on March 1, 2009. It prevents employees from bringing a personal grievance for unjustified dismissal within their first 90 days of employment once the trial period has been agreed upon in their employment agreement.

Focus on SME'sThe aim of law is to ease the challenges around the dismissal process for small businesses as only businesses with 19 employees or fewer may enter a trial period agreement in terms of this law.

The 19 employee limit includes all persons employed on the date that the employment agreement is entered into, including casual and part time employees.

The trial period applies only to new employees, not to existing employees, and the same employee cannot be placed on a trial period a second time.

Trial period agreementThe 90 day trial period will not

occur automatically. The employer and employee must agree on a provision within their employment agreement. This agreement can only be entered into on or after March 1, 2009. The trial period provision must specify: 1) The period of time that the

trial period will apply to which cannot exceed 90 days

2) That during the trial period the employer may dismiss the employee

3) That if the employee is dismissed during this period the employee is not entitled to bring a personal grievance or other legal proceedings in respect of the dismissal.

Good faith negotiationsEmployers are required to enter

into the trial period agreement in good faith which requires them to take the following steps when giving an employee the employment agreement:1) Provide the employee with

the agreement in advance of commencing employment

2) Suggest the employee may obtain independent advice on the agreement if they wish

3) Advise the employee to contact the employer (or designated contact person) if they wish to discuss anything about the employment agreement

4) Consider and respond to any communications from the employee about the agreement.

Termination during trial periodThe trial period only prevents

an employee from bringing a claim of unjustified dismissal. Employees are still able to bring a grievance claim on other grounds including unjustified disadvantage, discrimi-nation and harassment. So it is important that an employer still continues to treat the employee fairly and reasonably during the course of that trial period.

If there is a decision to dismiss during the trial period it would be

Making use of the new 90 day grievance free law

By Brandon Brown, Employment lawyer with AdviceLine

Important aspects of the new 90 day law are:

■ Applies to employment agreements entered in to on or after March 1, 2009

■ Only employers with less than 20 employees as at the date of entering in to the agreement can use trial periods

■ The trial period must be for 90 days or less■ They must be agreed with the employee in good faith,

written in their employment agreement with specific issues addressed.

■ A trial clause can be agreed with employees covered by a collective employment agreement, provided the clause is not inconsistent with that collective agreement.

■ Trial periods and probationary periods are very different■ An employee cannot take a claim for unjustified dismissal

if given notice of termination during their trial period.■ Claims can still be made for other personal grievance

grounds, human rights complaints, health and safety complaints or breaches of minimum conditions like the Holidays Act.

continued on next page >


prudent for an employer to follow a sound process before making that decision.

Giving notice of the terminationThe employer must give notice

of the termination during the trial period though the actual termination itself need not take place within the timeframe of the trial period. This means that the decision of termination must be communicated to the employee within the trial period, but the notice given may still roll over the trial period.

No minimum notice period is stated in the legislation, which indicates it may be possible to have a short notice period during the trial period.

Reasons for dismissalThe usual requirement to

communicate the reasons for dismissal in writing to the employee after they are terminated does not apply when an employee has been terminated during the trial period. Nonetheless it may be prudent for employer to communicate their fair reason for the dismissal in writing to reduce the risk of any claim due to harassment or discrimination.

Probationary periodsThe new trial period legislation

does not prevent the use also of probationary periods at the same time. Probationary periods (as opposed to the new “trial periods”) were provided for prior to the introduction of this new law. Having

a probationary period provision in an employment agreement can make it slightly easier to dismiss an employee during the specified period. However it is important to follow a sound process when an employee is dismissed during a probationary period. Also, employers appear to have the option to have both a 90 day trial period provision in their employment agreements as well as a longer probationary period provision,for examples of six months.

During March EMA Advice will be running seminars on the 90 day trial period at a discounted rate for members. Please contact AdviceLine to find out more on 0800 800 362 (NZ) or 1800 800 362 (Australia) or look online at www.ema.

co.nz/advice.

< continued from previous page

OVER RUN From PAGE 6

The new grievance free law


‘Tis the season to be hot and, in the case of some people, smelly as they go about their work.

We all know what it’s like. Stress seems to bring on body odour, as does rushing around particularly at this time of year when the weather is hot.

We have also worked with a woman whose perfume smelt like fly spray and made me gasp – ‘beautiful’ smells can be unintentionally obnoxious to others.

What can you do when you get complaints that certain employees are unpleasant to work with because they smell awful? Turn up the air conditioning and keep cool? It has to go beyond that because the discomfort for others can be real, even causing nausea.

The person tackling offensive behaviour needs to be someone senior on the staff, and very sensitive and diplomatic. Often the human resources (HR) manager or leader fits the bill nicely! Thank goodness for them!

She (or he) would sensitively approach the employee to discuss concerns about the body odour issue, in confidence. During the meeting she would discuss with the employee if there were any reasons why the odour would be occurring. There can be many explanations including health issues.

The employer could seek to discover if there is any way they can assist with the problem, and ask if the employee has any suggestions how to improve the situation. For example, deodorant available for all staff in a

manufacturing environment might be quite useful.

It is important to ensure complaints about odour have not come about from malicious or bullying behavior towards one employee. When speaking to such a person emphasize they are not being picked on, rather that the odour issue needs to be addressed. Explain that the comfort of all workers and resulting productivity is your responsibility. Write down some suggestions if the employee

needs them and record this, along with other details of the meeting. This should solve the problem. If it doesn’t and you’re not sure what to do next, phone our team.

Oh for a breath of fresh airAnother tricky personal problem

I have come up against is employees who have bad breath.

One of our members, a café

owner, had a waiter serving food to customers and complaints from customers started to come in about the bad breath problem. The issue of odour is core business where food is involved!

We advised the employer to proceed similarly to the case above, and to be sure not to embarrass the employee. It turned out the employee had a dental health issue which caused the problem and it needed to be remedied. The employer encouraged

and assisted the employee to engage dental assistance and the problem was resolved.

Smoking also causes people to smell unpleasantly. New Zealand pretty well led the world in banning tobacco smoking inside the workplace, to protect peoples’ health. But people still smoke where they are not allowed to such as in company vehicles.

Smoking is prohibited within any indoor areas of the workplace and employers are required to prevent this from occurring, for example with policies banning smoking in the workplace.

Though an employer is not required to, s/he may allow employees to smoke in a designated area so long as it would not be considered an indoor area, ie, it is virtually an unenclosed outdoors space. Read our A-Z Employer

Guide under ‘S’ (the Smokefree Environments Act 1990) to see what sort of space will meet those requirements.

Phone AdviceLine at phone 0800 800 362 or 09-367 0909 (for EMA Northern) or 04-473 7224 (for EMA Central), 8am-5pm weekdays. Alternatively, email [email protected], and read or download information at www.ema.co.nz.

The AdviceLinerWhat employers are ask ing AdviceLine th is month

All steamed up and fuming By the Adviceliner


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By David Lowe, Employment Service Manager, EMA Northern

New Zealand’s no fault no liability accident compensation system is a great idea, and it means we should never get to the situation overseas where someone who spilt coffee over their groin at McDonald’s drive-thru can sue the golden arches for making the coffee too hot.

But our ACC scheme is not without its serious problems. Some people due back at work during January will no doubt phone in to say they have met with an unfortunate incident and are on ACC. But the chances are they won’t have heard from anyone in ACC about getting them rehabilitated, and this limbo state will likely last til the end February or even into March. ACC often seems

to behave as if there is no urgency notwithstanding their ‘clients’ injuries and need for some help.

Some say that’s because it is entirely a monopoly. The same organisation responsible for rehabilitation sets the ACC levies, so they can simply increase levies to cover their own inefficiencies and blame the rest of New Zealand for being increasingly accident prone.

ACC also places little if any emphasis on injury prevention. For it injury prevention is virtually non-existent in practice though these are the first words in the ACC law.

A reason for this that the responsibility for injury prevention is split between two government departments – the Occupation Health and Safety (OSH) division of the Department of Labour, and

ACC. The two appear not to be on speaking terms with each other, or worse, engaged in a perpetual patch protection battle. Sure, we see a few TV advertisements and other PR exercises aimed at preventing injury and that’s about it.

Of course when injury prevention fails we need ACC, which is why it is so concerning that injury prevention is accorded such a low priority.

While it may be true that there will always be accidents and we will always need ACC, the emphasis on injury prevention surely needs to be improved.

But turning ACC into a political football to fix these matters would be disastrous to the proven value of the scheme. Simply keeping ACC as a state monopoly is ideologically driven, which means good and

ACC both gamekeeper and poacher(First published in the NZ Herald, January 9th 2009)

PAGE 11Our Vision. Your SuccessGED1045 Pukeko Office Ad_EMA.indd 1 19/9/08 4:48:33 PM

useful ideas are not given the time of day. On the other hand, the view that the private sector would automatically be better at running the scheme is just as ideological. We need something in the middle that works, and will remain in place as governments come and go.

Workers are suspicious of the motives of private insurance companies becoming involved in ACC. They suspect the outcome will be sub-standard rehabilitation services offered to attract employers and others with lower levies. Some, mostly smaller employers are just as wary of private insurance companies, as they cannot be expected to keep up to date with all the complicated issues around workplace safety insurance and ACC. The simplicity of a government decreed scheme has its fair share of supporters.

Nevertheless, the setting

of ACC levies, and the rehabilitation of the injured should not be managed by one and the same organisation. They need to be kept separate. The poacher should not be allowed to be the gamekeeper. Neither should inefficient rehabilitation and the failings of accident prevention be blamed on ordinary New Zealanders wrongly accused of becoming careless and accident-prone.

Second, there is no rationale for separating accidents occurring in workplaces and those not in workplaces. The division of them between OSH and ACC is totally artificial. Let’s combine the two. A combined service will have better efficiencies’ and a better coordinated effort. Singing off the same song book is always helpful. People who are safe at work are safe everywhere else too.

Motivate 09 is designed to inspire and teach you how to motivate your people, your teams and your business to find purpose, passion and success. It offers the chance to be stimulated by super business success stories, and advice amidst lots of laughs from comedienne Michelle A’Court as MC. Another of the speakers, Helen Burt is the Business Excellence Manager at Vero Insurance. She will outline how Vero became world-class status under the Baldrige Performance Excellence Criteria. More on Motivate 09 on page 25

Vili to Motivate Gold medal winning Olympic shot-putter Valerie Vili and two-time supreme winner at the Halberg awards will speak at Motivate 09.


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Among the good wishes for the New Year you can detect quite a bit of insecurity - even a hint of fear - perhaps because it’s not clear just how deep or long the global downturn will be and what sort of response will be needed.

This raises the danger that our reaction to the economic downturn could in fact exacerbate it. This would be very counterproductive for New Zealand business.

New Zealand had no involvement in the events that brought about the 2008 credit crisis. The financial instruments misused in the US are not a major feature of financial markets here and thankfully we have seen less of the dodgy trading practices seen elsewhere.

However we will be affected by the fallout from that crisis. The economic downturn will inevitably constrain some companies’ ability to sell into some overseas markets and make it harder to grow enterprises or get new ones under way.

But that may not necessarily be the case for all players. It will be important to keep a positive attitude rather than expecting the worst and getting a self-fulfilled prophesy.

Here in New Zealand we have lots going for us. We have been insulated from the worst of the credit crisis and many of the features of our economy

are positive. We have one of the world’s lowest levels of unemployment. We have relatively low government debt. We don’t have to prop up giant unprofitable firms the way some other economies are forced to do.

Fundamentally, we have a real economy here, not one of shadows and mirrors.

We produce real things that real people want to buy – fine food, fibre, wood, wine, manufactured goods, services and the rest. We need to retain our pride in the superb things we produce and export. No one else makes them like we do and if we don’t promote them and have faith in them no one else will.

We need to keep a long term view. Companies that do this will pursue sensible strategies to take market share from their competitors - that’s also how we should be thinking as a nation.

Especially now, our future is in our own hands. We should remember that if we are facing hard times, then it is logical that our competitors are too. With every change, even negative change, comes opportunity and we shouldn’t be focusing on the hard times, but on the opportunities.

Our other area of change is the new government. Here too is opportunity. With a new approach to things like employment, regulations and innovation, it should be possible to change gear and get more from the economy.

What should we do? As a general principle, any investment or change made in any of these areas short term should also make sense in the long term.

In the jobs area for example, we could take action to prevent a hiatus in apprenticeships. Employers might not be keen to take on new apprentices right now given the current uncertainty. Down the track this could have unfortunate effects, with shortages of skilled tradespeople in the future.

Investment in apprenticeships – perhaps by temporary government support for apprentice wages or other means – could be one way of keeping the flow of needed skills into the future while furnishing financial support in the present.

Regulation would be another good area for government to tackle as part of a suite of recovery measures. Simplifying and reducing the compliance involved in business tax, employment and environmental law would make sense long term and would also reduce the present financial and time strain on businesses.

As the new government seeks advice on new economic directions, these are the kind of initiatives that Business NZ will be promoting as the best chance for success.

Sensible measures to help us now and also boost the economy long term, a positive attitude and an eye for opportunity will serve us well in 2009.

Positives for 2009...

By Business NZ’s CEO Phil O’Reilly


Phil O’Reilly

By Business NZ’s CEO Phil O’Reilly

Don’t just stand there – do something seems to be the message of the moment. The global economic downturn requires a response, and most countries’ governments are in the throes of “doing something”.

Whether the “something” is the right thing or not is another matter.

Internationally, some interventions may be doing more harm than good.

For example, the initial US decision to ban the use of foreign-made goods being used in stimulus projects – the so-called ‘Buy America’ proposal - was seen as protectionism by the EU and could even have sparked a trade war.

The plan echoed US policy during the Great Depression – domestic protection that caused other countries to retaliate with protections of their own, resulting in the Depression lasting years longer than it had to.

Trade protectionism is never a good idea, in good times or bad.

High taxes aren’t such a good idea, either.

In fact high taxation was another reason why the ‘30s Depression lasted as long as it did – the New Deal relief payouts were funded by cripplingly high business taxes that caused American businesses to stop investing for years.

Let’s hope there’s no reneging on our promised tax cuts here in New Zealand.

There’s been a suggestion that the Government should scrap the April tax cuts and use the money for more targeted relief items.

This would be the wrong thing to do. Our tax system has been too high for a long time and reductions

are overdue. A lower, flatter tax system would bring confidence across all levels of the economy and would do more than anything else to encourage productive investment.

Another really useful move would be to fill the vacuum left by the scrapping of the policies for the R&D tax credits and the Fast Forward Fund.

Both policies had quite a lot of potential to increase innovation and productivity and now we need a ‘Plan B’ to replace them pretty quickly.

What else would help business? Certainly the easing measures around provisional tax and GST have been warmly received by

business and will help the cashflow needs of small and medium sized firms.

There is widespread support for infrastructure construction being part of any assistance package.

Infrastructure investment is not without problems – notably the difficulty of getting projects underway soon enough to provide meaningful work opportunities within the timeframe of the downturn.

But the opportunities from infrastructure investment are immense, both for the infrastructure

outcomes and for the workforce involved.

Business NZ has advocated that a significant portion of such investment should be earmarked for skills

development. Our government has

committed significant sums to relief and recovery while still taking a restrained approach compared with some of the large scale spending of other countries.

In light of the developing world financial situation this is appropriate.

It’s important to remember that a government can only do so much.

Whether in times of downturn or in times of growth, it is the private sector that drives the economy. If

the private sector sits on its hands, expecting the government to do it all, we won’t make much progress towards recovery.

Basically, it’s in our hands to be more - or less - successful than our competitors.

Neither the government nor the business sector can control the economic environment but we can moderate it – and, as always, we can compete our hardest and do business to the best of our ability.

During downturns and upturns, doing business is still the best way to “do something” of value.

... Doing something

"A really useful move would be to

fill the vacuum left by the scrapping

of the policies for the R&D tax

credits and the Fast Forward Fund.

Both policies had quite a lot of

potential to increase innovation

and productivity and now we need

a ‘Plan B’ to replace them pretty

quickly."


Difficult business conditions and a raft of changes from the new Government are expected to impact EMA Northern’s employment relations (Advice) services this year, and the association is moving to address them.

High on the agenda is the plan to grow its specialist arm of consultant solicitors operating as EMA Legal who are available to members at special rates.

Australian based members can expect more attention too, for example with more advisers (qualified lawyers) to advise them, and to introduce training courses and seminars on New Zealand’s new legislation in Australia. EMA Northern will continue to present three rounds of briefings on

economic conditions each year.EMA Advice also plans to offer

more services to members in the North and present more networking events and seminars.

On the advocacy front, EMA’s OH&S consultants are taking a strong interest in the new Government’s proposed restructuring of ACC. Detailed recommendations have already been developed (see story on page 10) and sent to the Minister of ACC, Dr Nick Smith.

A round of explanatory seminars is underway on the 90-day grievance-free trial period of employment, and these will be followed by more seminars on KiwiSaver (March 16-30). For a list of all courses, go to www.ema.co.nz/advice

EMA’s Employment team is closely monitoring the upcoming review of the Holidays Act –

members will be kept up to speed - though the detail is still uncertain; the review of the Emissions Trading Scheme; and changes to employment law and emissions trading rules in Australia.

Completing EMA’s suite of reinvigorated services, EMA advisers are to start marketing a new human resources audit product.

What EMA won’t be changing is the focus on offering employment advice and public comment:■ Leading employer opinion ■ Totally supportive of employers ■ Solid and reliable ■ Practical ■ Right up to date

For advice on any employment or other business issue, members can contact advisers and consultants at AdviceLine, phone 0800 800 362 or 09-367 0909, 8am-5pm excluding public holidays.

New focus for employment services in 2009

For years New Zealand businesses have struggled to find and retain good staff. Businesses have been in the habit of employing someone quickly, rather than focusing on finding the right person. It was either act quickly or miss out on the good candidates. This meant that often we were employing people who may have had the skills required but may have been wrong for the team and company fit.

One wrong person can ruin the total company dynamics, bring down productivity and it could mean that good people left.

One of the good things about the situation that we find ourselves in is the easing of the labour market. The unemployment rate is expected to climb from 4.2 to 6.5per cent by the

middle of next year according to The Treasury.

Over the past six months QJumpers, a New Zealand online recruitment company, has seen the number of applicants per role increase by over 100per cent from July to December 2008. Fantastic news for employers!

Now is the time to look at your company vision, revisit your company values and take the time to get the right people in the right seats on your company bus - with everybody heading in the same direction. (If you have not read Good to Great yet– I suggest you take a read…it is very relevant in today’s times).

Kick off the people who don’t want to be on your bus and who don’t share your vision or passion. Then get advertising!

Get your advertising right. Advertise for your ideal person. People want to know about your business before applying for a role, so let your company values and culture ooze through your ad. Let them know what kind of people would fit into your business, then tell them why they should work for you.

The skills, experience and tasks of the role should make up only a small part of the ad - unless you want to bore the pants off your ideal candidate. Then only recruit the person if they are right for your company.

Keep the focus, get the right people while you can, and be rewarded.

Simon Oldham is Sales & Marketing Manager for QJumpers. www.qjumpers.co.nz.

A great time for recruitingBy Simon Oldham


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Islamic banking refers to a system of banking or banking activity that is consistent with Islamic legal principles and guided by Islamic economics.

Islamic law expressly prohibits usury or the collection and payment of interest commonly called riba.

Islamic financing is based on Musharakah between two parties, both of whom contribute capital to a business, and divide the net profit or loss on a pro rata basis. This approach is often used in investment projects, letters of credit, and the purchase of real estate or property.

In the case of a property, the bank assesses an imputed rent and shares it with the buyer as agreed in advance. All providers of the capital involved are entitled to participate in the management of the related assets though they may not do so.

The profit is distributed among the partners in pre-agreed ratios, with losses borne by each partner strictly in proportion to their respective capital contributions. The concept is different from fixed-income investing or Murabahah.

Murabahah These are fixed-income loans for

the purchase of real assets such as property or vehicles and the concept refers to the sale of goods at a price which includes a profit margin agreed to by both the purchaser and seller. A murabahah process could take the following basic form:1. The client expresses the intent to

engage in a murabahah transaction

facilitated by the bank and, subject to bank approval, signs a "Promise to Buy".

2. The bank purchases the item from the seller.

3. The client purchases the item, in instalments, at the purchase price plus a stated profit. The bank is compensated too by a profit margin.

Home finance Saving up for a home can take a

lifetime and Moslems want to stay clear of interest based financing to remain riba-free.

To do this, the type of banking practice followed is demonstrated with Easy Home. A home owner enters a joint ownership of a property with a bank which provides the financing (usually up to 80per cent) and the home owner agrees to monthly payments of which a component is for the use of the home, and another for the owner’s equity share in it. The total monthly payment reduces as the owner’s share in the property grows. When the full investment is repaid, the owner gains free and clear title.

IjarahIjarah means lease, rent or wage.

Usually it refers to a lease under which a bank makes available to the customer the use of assets or equipment such as buildings, plant, computers, or motor vehicles for a fixed period in exchange for an agreed rental. It may include a unilateral undertaking by the bank or

the client that at the end of the lease period, the ownership in the asset is to transfer to the lessee.

The rental and the purchase price are fixed to ensure the bank gets back its principal sum along with a stated profit.

Car Ijarah is a car rental agreement under which the bank purchases the car and rents it to the customer. Upon completion of the lease period the customer gets ownership of the car against his initial security deposit.

An ijarah process could take the following basic form:1. The bank and the client agree on

the terms of the lease. 2. The bank purchases the asset from

the seller. 3. The client leases the asset from

the bank, paying a fixed monthly rental.

4. The client purchases the asset from the bank at the end of the lease period.

MudarabahA mudarabah transaction is an

investment partnership where the contract is between an investor (or financier) and an entrepreneur or investment manager known as the mudarib. The risk and rewards are shared. If a profit eventuates, both parties receive their agreed-upon share. In the case of a loss, the investor bears any loss of capital while the mudarib loses his time and effort.

A mudarabah process could take the following basic form:1. The investor and the mudarib

agree on the nature of the venture and the terms of profit sharing.

2. The investor provides capital to the mudarib.

3. The mudarib undertakes the venture agreed upon between the parties

4. Profits from the investment are shared between the investor and the mudarib as agreed at the outset.

By Syed MohiuddinIslamic banking: The basicsExporters to countries as diverse as Malaysia, Indonesia, the Middle East, Iran, Azerbajan, India, and Pakistan are certain to encounter Islamic banking principles. These are based on profit (or loss) sharing, not on charging interest.Islamic law prohibits the collection and payment of interest, yet the western world’s economic system is based on the raising and lowering of interest rates by central banks. Our traders need to understand how Islamic banking works, especially as its set to become a $4 trillion industry within five years (see panel on next page). This article introduces some of the principles.


The financial risk, according to the Shariah, justifies the bank's claim to part of the profit. The profit-sharing continues until the loan is repaid. The bank may be compensated for the time value of its money by a floating interest rate pegged to the debtor's profits.

MusawamahMusawamah is a general kind of

sale in which the price of the goods to be traded is bargained between seller and the buyer but unlike for Murabaha, the seller in Musawamah is not obliged to reveal the cost to him/her of the goods.

Qard Hassan (Good Loan)This is a loan extended on a

goodwill basis with the debtor only required to repay the amount borrowed. The debtor may pay an extra amount beyond the principal of the loan (without promising it) as a token of appreciation. Some Muslims consider this the only type of loan that truly does not violate the

prohibition on riba since it does not compensate the creditor for the time value of money.

Sukuk (Islamic Bonds)Sukuk is the Arabic name for a

financial certificate but can be seen as an Islamic equivalent of a bond. However since fixed-income, interest-bearing bonds are not permissible in Islam, Sukuk are securities that comply with the Islamic law and classified in accordance with their tradability and non-tradability in the secondary markets.

Conservatively over US$500 billion of assets are managed according to Islamic investment principles as part of Shariah, which is often thought to be Islamic law but which encompasses the general body of spiritual and moral obligations and duties in Islam.

Takaful (Islamic insurance)Takaful is a form of cover a Muslim

can take where resources are pooled. Conventional insurance involves the

elements of uncertainty (Al-gharar), gambling (Al-maisir) due to the presence of uncertainty, and interest (Al-riba) due to the investment activities of the insurance companies and which contravenes the rules of Shariah. Muslim jurists say conven-tional insurance does not conform to the rules and requirements of Shariah.

Wadiah (Safekeeping)In Wadiah a bank is deemed to be

a keeper or trustee of funds. When a person deposits funds in the bank, the bank guarantees refund of the entire deposit, or any part of it when the depositor demands it. The depositor, at the bank's discretion, may be rewarded with a hibah (gift) as a form of appreciation for the use of funds - the bank compensates depositors for the time-value of their money (i.e. pays interest) but refers to it as a gift because it does not officially guarantee payment.

Syed Mohiuddin is Email and Website Administrator for EMA Northern.

Issac John 30 December 2008 DUBAI - Islamic banking is the least affected sector in the current global economic meltdown triggered by sub-prime tsunami in the United States.Khaled Al Aboodi, CEO of Islamic Corporation for the Development of the Private Sector (ICD) said that since Shariah did not allow Islamic banks to invest in sub-prime products, they were safer from the toxic sub-prime assets than conventional banks.“Most conventional banks worldwide were in trouble because they don’t deal with Shariah products. Islamic banks are very strict in their policies which are monitored closely by Shariah boards at various stages,” Al Aboodi was quoted by a Saudi paper.According to Qatar Islamic Bank (QIB), Islamic banking is set to become a $4 trillion global phenomenon over

the next five years.Islamic finance experts say the global sukuk (Islamic bonds) market stands at $82 billion with the IMF estimating it to reach $150 billion over the next three years. The ever-increasing demand for financing infrastructure development and other mega projects in the private sector will continue to be major driver of demand for sukuk. Islamic financial institutions work on a philosophy of promoting greater social justice by sharing risk and reward and prohibiting transactions such as interest payments, short selling and contracts considered to be excessively risky. That rules out some of the products that got Western finance into so much trouble such as sub-prime mortgages, collateralised debt obligations or credit default swaps. (Khaleej Times)

Islamic banking heads towards $4 trillion industry


Whether you are expanding or beginning your business in China, New Zealand Central has a range of services to support you.

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cocktails for 120 or formal dining for 60 people)

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■ On-going programme of events, promotions, seminars and networking events to support trade and investment opportu-nities

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To make the most of the services that New Zealand Central provides go to www.nzte.govt.nz/nzcentral for an application form to join. Or email: [email protected]

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Lean Production says, ‘only activities which change the Form, Fit or Function of a product add value for the customer.’ Research shows that only five per cent of manufacturing activity adds value with the remaining 95per cent either:■ Non Value Adding but necessary, or■ Non Value Adding and not necessary ie: absolute waste!

If warehousing and distribution activities are subjected to this Value Adding test, few, if any, change the Form, Fit, or Function of a product so they don’t add value for the customer.

Conventional operators resign themselves to the costs of these activities but Lean practitioners regard them as a rich source of potential improvement. This article looks at some Lean warehousing methods.

Time & Space

Efficient warehousing is concerned with Time and Space.

Time relates to the speed taken to complete functions such as receipt, putaway, stock take, credit processing and pick/pack. It’s generally thought that it’s impossible to measure these activities, but when Lean techniques are applied (breaking each task into its component parts) accurate productivity measurement becomes the norm and, regardless of product mix (size and weight variations) standard times can be assigned to each activity. This provides managers with a powerful tool that allows them to make accurate planning and staffing decisions.

Space relates to the husbandry of the warehouse area. Most modern shelving can be easily adjusted to suit the profile of stock and may also be moved without undue effort. Despite this, managers are often reluctant to customise the profile of fixtures, thus condemning their operations to stagnation and congestion.

Time

When planning Distribution Centre

work Lean operators ask: “What must we do at this point in the day/week?" When the answer is absolutely clear, staff are assigned to do it.

In many operations this results in allocating staff to receiving, stocktaking and credit processing activities during the morning then gradually transferring them to other duties as the day progresses. There is no room for specialist jobs in the Lean Distribution Centre as this inhibits staff flexibility and subverts team building efforts. All staff are trained in all jobs!

Warehouse footprint

Warehouse layout has a profound effect on processing time. In most warehouses 20per cent of inventory will fall into the ‘fast moving’ category and 80per cent will be either ‘slow’ or ‘dead’ stock (Pareto’s Law). The Lean practitioner stores product according to its’ size, type and speed of movement, which allows all fast selling items to be held adjacent to the despatch point. This results in huge time savings and reduces operator fatigue since most warehouse activity is performed in 20per cent of the building area!

In figure 1, the ground level shelf has product stored in part code sequence, a method commonly used to avoid having a location addressing system. The shaded area shows the space wasted, but the bigger problem is the dispersal of fast moving product throughout the warehouse.

The second level shelf shows the Lean method where items of the same size and speed of movement (regardless of their part codes) are stored on the same shelf. This reduces the footprint of each stock category and results in huge space saving.

This system uses a location addressing system which records the Aisle, Shelf bay, Shelf level and the exact shelf position so there’s never a requirement to search for any stock item.

It’s not necessary to adopt high tech solutions to ‘Lean’ in the warehouse

because improvement comes from changing systems.

Some faulty systems include:■ Having a third party check orders.

(Why do any job twice?)■ Annual Stock Taking. (Cyclical stock

takes should occur DAILY with a prime focus on the accuracy of the 20per cent fast moving product.)

■ Dedicated stock replenishment activity. (Kanban Cards will remove the need for this. See next month’s article.)

■ Picking from a computer print out then ticking the list after picking. (Difficult to pick when both hands are occupied on recording data)

■ Special cleaning blitzes or employing dedicated cleaners. (Standard operating times must include allowance for housekeeping activity.)

■ Rectification of errors. (Again, why do any job twice?)

■ Allowing delivery trucks to arrive to suit their timetable. (As the customer, you should arrange delivery when it suits your workload)

■ Allowing individuals to ‘customise’ the way they perform tasks. (Standard Operating Procedures should apply to all jobs)

Next month I’ll examine space utilisation and suggest ways to increase storage capacity without capital expenditure. Barry Nolan is the principal of Lean Production Consulting. He was National Distribution Manager for Toyota NZ from 1977 to 1996. He trained in Kaizen and Lean Production in Japan and the USA, and led the Palmerston North Distribution Team to world best status in the Toyota hierarchy. Phone 06 326 8907 or 0275 387 565

Lean values applied to warehousing, distribution

By Barry Nolan

Figure 1


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An actively managed Drug and Alcohol policy in your workplace, will reduce the risks around identifying and removing a hazard, namely an employee affected by drug or alcohol use.

Drugs and alcohol are indeed a “hazard” as defined in the Health and Safety in Employment Act 1992 and that law imposes a legal obligation on employers to ensure the safety of all employees while at work including the identifi-cation of, and protection from hazards.

It’s just not enough to have a D&A policy on paper - you actually have to be proactive and use it. That could mean having random drug testing, or just actively testing new employees, post accident or incident testing, or reasonable cause testing. But, to be effective in managing risk employees

need to know they will be tested. That’s what your policy has to be.

The Supreme Court of New Zealand recently determined unanimously that the rules around random drug testing do not infringe human rights. It then went on to say (in general terms) that to deter employees from taking drugs (and potentially compromising workplace safety) random drug testing could be necessary.

Other advantages that come with a good D&A policy include reduced rates of absenteeism, involuntary turnover, disciplinary action, staff theft, and more.

So, should you dust off your old D&A policy and update it to comply with recent case law, and the new industry standard (AS/NZS4308:2008) for specimen collection and the detection and quantity of drugs of abuse in urine?

The updated standard allows for this

on-site. With on-site urine screening you know instantly whether your employee is fit for work or should be stood down. Screening results are confirmed at the laboratory as per the AS/NZS4308:2008 requirements.

“If I start drug testing I’ll lose half of my staff”

The reality is that only 10.7% of all those tested in 2008 by NZDDA for whatever reason returned a positive result.

With a well put together D&A policy those who test positive often have the option of counseling or rehabilitation, and those employees that take this option come out the other end better more loyal employees, and often become advocates for the company’s D&A policy. For more details: www.nzdda.co.nz Tel 09 477 0295

Drugs and alcohol: What's your policy?


Some time ago a delightful list of life rules attributed to Bill Gates and meant for graduating students passed across my desk. Considering that a deluge of ex-students are hitting our workforce right now I thought it would be a fun (and useful) list to share with you.

However, I had an intuitive nudge to check if it really was written by the amazing Mr Gates. A few minutes’ web investigation gave me another delightful angle to share:

Here’s a shortened version of what our boy Bill is supposed to have said.Rule 1: Life is not fair – get used to it!Rule 2: The world will expect you to accomplish something BEFORE you feel good about yourself.Rule 3: You will NOT make $60,000 a year right out of high school. You won’t be a vice-president with a car phone until you earn both.Rule 4: If you think your teacher is tough, wait ‘til you get a boss.Rule 5: Flipping burgers is not beneath your dignity. Your grandparents called it opportunity.Rule 6: If you mess up, it’s not your parents’ fault so don’t whine about your mistakes. Learn from them.Rule 7: Before you were born, your parents weren’t as boring as they are now. They got that way from paying your bills, cleaning your clothes and listening to you talk.

Rule 8: Your school may have done away with winners and losers, but life HAS NOT. In some schools they have abolished failing grades and they’ll give you as many times as you want to get the right answer. This doesn’t bear the slightest resemblance to anything in real life.Rule 9: Life is not divided into semesters. You don’t get summers off and very few employers are interested in helping you find yourself. Do that on your own time.Rule 10: Television is NOT real life. In real life people actually have to leave the coffee shop and go to jobs.Rule 11: Be nice to nerds. Chances are you’ll end up working for one.

I liked what I read. But – I’ve just had a life lesson of my own reinforced and it’s given a whole new slant to this article. So, I want to add two of my own rules.

Robyn’s Rule No 1: Don’t believe everything you read in print. At www.snopes.com/language/document/liferule.asp you’ll find a very interesting overview of how the authorship of the above list morphed. Bill Gates never claimed it as his; the true author is Charles J Sykes, author of the 1996 book ‘Dumbing down our kids: why American children feel good about themselves but can’t read, write or add’.

In this day of instant information its way too easy to take something off the internet and, because it’s appears a reputable you, assume it’s correct. Even

the most experienced journalists and editors can get it wrong. (Just recently there have been several cases of journalistic plagiarism from normally impeccable sources.) In my case I first saw the list above in a reputable industry journal. I’ve chuckled over the list and shared it with friends.

Quite aside from this list how many of us have passed on something that’s popped up on our computers, only to be embarrassed by a note back from a more cautious friend who took the time to check, alerting us that the story or warning was a scam or hoax? I certainly have. If in doubt, check http://www.snopes.com/ or any other of the urban legend sites.

Robyn’s Rule No. 2: Listen to your intuition. It could save you embarrassment and time!

Robyn Pearce CSP (Certified Speaking Professional) is the Time Queen. She mastered her own time challenges and now helps people around the world overcome theirs. She can show you how to transform your time challenges into high productivity and the life balance you desire. Download her free report “How to Master Time In Only 90 Seconds”, a simple yet powerful diagnostic tool to help you identify your key areas for action. You’ll find it at http://www.gettingagrip.com/products/e-books/index.asp And while you’re there, enrol for your free Top Time Tips – practical advice every two weeks.

get a griphot tips for higher productivity

By Robyn Pearce

Life lessons - not just for the kids!

01685_BMNZ_EMA_65x185_Paths.indd 1 23/12/08 5:12:28 PM


Demand for business mentors is expected to increase this year as the challenges of the recession take hold, says Ray Schofield, chief executive of Business Mentors New Zealand.

The nonprofit organisation has plenty of mentors among the 1530 who have signed on to offer the service. Many of them have been around long enough to have known good and bad times.

Ray says, “Up to 10 years ago people have not known anything but good times. But now some businesses won’t survive without taking additional efficiency or productivity action; they might get through with average performance in good times, but not in hard times.

“We are well placed for these challenges. For example, we have mentors in IT and technology. Using these tools for increased productivity has become very important. Exporting and all other sectors are covered anddwe will advertise to recruit more mentors if necessary.”

Mentors undertake a day’s training in the skills required to identify clients’ needs and guide them to success. They work voluntarily but can claim expenses.

Clients pay $100 plus GST to register with Business Mentors NZ for two years of mentoring, and re-register if another problem surfaces after that. Sponsors, Government grants and in-kind work cover the rest of the costs.

About half of voluntary mentors are semi retired or retired senior business people. Another 20 per

cent are experienced or up-and-coming business people.

“Either they want to give back to the community or they miss the stimulation of the commercial world and a lifetime of problem-solving and people contact. They find it truly satisfying.”

Finding a mentorDo you need insights, opinions,

ideas or feedback? Maybe you need help to develop a business plan or you need someone to run over the plan with you to see what you have missed; or maybe your problem is more focused such as creating an advertisement.

If you have been trading for at least 12 months and employ fewer than 25 employees, you will qualify for help. Fill in an application form online at www.businessmentor.org.nz . Contact with a mentor is when and where the two parties agree – usually by phone three to five times, but perhaps over several years with

varying levels of interaction.Mentors share their ideas and

experience one-on-one. They don’t do any work for clients or provide counseling. They help a business, not a person.

Sometimes the mentor identifies a problem different from what the client presented. The real issue may be a difficult client or disruptive family member.

Help for exporters and other sectors

Business Mentors always had mentors with expertise in exporting, but beefed up its professional development during Export Year

2007. The organisation now has a pool of 140 mentors with exporting experience – and in some cases contacts to share.

Ray says tourism could be hit this year - Business Mentors has 53 mentors with experience in this area. Some mentors specialize and others handle multiple topics and issues.

Clients are matched with mentors whose skill base best matches their declared needs. You might apply for help with sales and marketing , but maybe your financial structure is not robust enough to support the cost of time, etc, required

to do marketing.“A mentor will challenge your

thinking.” But “we are not a silver bullet. If people are prepared to take on knowledge you still have to implement it.”Business Mentors is the trading name of Business in the Community Charitable Trust. Visit www.businessmentor.org.nz

MeMber profileIn our regular snapshots of EMA member companies, we describe the business of Business Mentors New Zealand based in Auckland.

Chewing the fat can smarten up your operation


Wed, 4 March 3.30pm - 5.00pm Copthorne Solway Park, High Street South MASTERTON

Wed, 11 March 10.00am - 11.45 am Collegiate Motor Inn, 122 Liverpool Street WANGANUI

Wed, 11 March 3.30pm - 5.00pm Te Manawa, 396 Main Street PALMERSTON NORTH

Thurs, 12 March 3.30pm - 5.00pm Quality Hotel Plymouth Int'l Hotel NEW PLYMOUTH

Tues, 17 March 7.30am - 9.00am Tatapouri Sports Fishing Club, No.2 Shed, Gisborne Wharf GISBORNE

Tues, 17 March 2.45pm - 4.15pm Napier War Memorial Conference Centre, Marine Parade NAPIER

Thurs, 19 March 3.30pm - 5.00pm Rutherford Hotel, Trafalgar Square NELSON

Tues, 24 March 3.30pm - 5.00pm Angus Inn Hotel, Cnr Cornwell St & Waterloo Rd LOWER HUTT

Thurs, 26 March 3.30pm - 5.00pm Duxton Hotel, 170 Wakefield Street WELLINGTON

EMA CENTRAL Register on-line at www.emacentral.org.nz For further information phone Sandra Webley (04) 470 9947; or email: [email protected]

Summer Schedule - 2009 FREE briefings for all EMA members

EMA Northern To register: Call AdviceLine on 0800 800 362; or email [email protected]

Waikato / BOP Mon. 16 Feb. 9.30am: Thames War Memorial Civic Centre, THAMESMon. 16 Feb. 3.00pm: Hotel Armitage, Willow Street, TAURANGATues. 17 Feb. 9.30am: East Bay REAP, Reap House, 21 Pyne Street, WHAKATANETues. 17 Feb. 3.00pm: Huka Village, Huka Falls Road, TAUPOWeds. 18 Feb. 9.00am: Distinction Rotorua, 390 Fenton Street, ROTORUAWeds. 18 Feb. 1.30pm: Putaruru Timber Museum, 2337 Taupo Road, PUTARURUWeds. 18 Feb. 5.00pm: The Big Apple Conference Centre, OTOROHANGAThurs. 19 Feb. 9.00am: Kingsgate Hotel Te Rapa, 100 Garnett Avenue, HAMILTON Auckland Thurs. 19 Feb. 3.00pm: Papakura RSA, 40 Elliott Street, PAPAKURAMon. 23 Feb. 7.30am: Crowne Plaza, 128 Albert Street, AUCKLAND CITYMon. 23 Feb. 10.00am: Crowne Plaza, 128 Albert Street, AUCKLAND CITYMon. 23 Feb. 3.00pm: Bruce Mason Centre, 1 The Promenade, TAKAPUNATues. 24 Feb. 8.00am: Waipuna Conference Centre, MT WELLINGTONTues. 24 Feb. 10.30am: Waipuna Conference Centre, MT WELLINGTONTues. 24 Feb. 3.00pm: Greyhound Function Ctr., Te Irirangi Dr. MANUKAUThurs. 26 Feb. 9.00am: Titirangi Golf Club, Links Road, NEW LYNNFri. 27 Feb. 9.00am: Lincoln Green Hotel, 159 Lincoln Road, HENDERSONFri. 27 Feb. 3.00pm: EMA Board Room, 159 Khyber Pass Road, GRAFTONMon. 2 March 7.30am: EMA Board Room, 159 Khyber Pass Road, GRAFTONMon. 2 March 11.00am: Butterfly Creek, Tom Pearce Drive, MANGEREMon. 2 March 2.30pm: NZ Institute of Chartered Accountants, 27 Ohinerau St, GREENLANE EASTMon. 2 March 4.30pm: NZ Institute of Chartered Accountants, 27 Ohinerau St, GREENLANE EASTTues. 3 March 10.00am: North Harbour Stadium, Presidents Room, ALBANYThurs. 5 March 2.00pm: Irwin Industrial Tool Co., 22 Hood Street, WELLSFORD Northland Weds. 4 March 9.00am: Kingsgate Hotel Whangarei, 9 Riverside Drive, WHANGAREIWeds. 4 March 3.00pm: The Northerner, Cnr North Road & Kohuhu Street, KAITAIAThurs. 5 March 9.00am: Scenic Circle Bay of Islands, Seaview Road, PAIHIAThurs. 5 March 2.00pm: Irwin Industrial Tool Co. Ltd, 22 Hood Street, WELLSFORD

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