employment
Submitted by Joe Hendren on Fri, 01/08/2008 - 11:11am.
"The last day of work at Godfrey Hirst’s Feltex mill in Foxton is a tragedy for its 80 workers and the local community,” said Robert Reid, President of the National Distribution Union.
Submitted by Joe Hendren on Thu, 31/07/2008 - 12:00am.
Body: New research from Celerant Consulting suggests that over half of UK business leaders find winning the hearts and minds of employees the most difficult aspect of delivering change within companies.
A survey of over 600 senior executives across Europe and the United States, carried out by the Economist Intelligence Unit, suggests that the majority of change programmes - structured approaches to implementing and managing change within a company - fail. 64% of UK leaders questioned said that half or fewer of the change programmes they have undertaken in the past five years have been successful.
The most significant challenges faced by UK companies in executing change programmes include winning the hearts and minds of staff (51%) and overcoming a lack of buy-in from local management (36%). UK bosses recognise that 'effective communications' (25%) and 'employee buy-in' (21%) are the most important factors in successful implementation, compared to global averages of 19% and 17% respectively.
Despite the high possibility of failure, the survey suggests that UK leaders spend more on change initiatives than their counterparts in any other country. The average expenditure by UK leaders in the last year (£5.43m) was 36% higher than the global average. This comes against a background of an estimated UK spend on consultants of £10bn in 2007, according to the Management Consultancies Association.
The survey also reveals that 57% of UK business leaders say their planned change programmes for the coming year are a direct response to the credit crunch. Accordingly, over a third (40%) of UK leaders plan to increase their spending on change initiatives over the next 12 months, while only 12% intend to spend less.
The quest for operational efficiency is driving change programmes. Almost two-thirds (64%) of UK business leaders say that improving their company's operational efficiency is the top issue on their agenda. In a further sign that the credit crunch is impacting on the corporate agenda, reducing costs (58%) is seen to be significantly more important than increasing revenues (43%).
Ian Clarkson, chief executive at Celerant, said: "A slowdown always put the question of 'how do we respond?' on the table - and frequently the answer becomes 'we need to change'. Yet, as leaders themselves admit that the majority of initiatives do not work, what should they do to ensure they successfully manage the process of change? "Our survey shows that companies fail in the execution of change initiatives because they are unable to win the hearts and minds of employees at all levels of their organisation. This happens when people do not trust their managers or understand what values the management team stands for. Too often a change programme is seen as an excuse to make people redundant. In order to successfully deliver change, leaders need to inspire people with a sense of urgency, have a clearly communicated vision and plan and continually motivate staff. As change management becomes part of day-to-day management, only those leaders who can successfully execute it will survive and flourish."
Ralph Hargrow, global chief people officer at Molson Coors Brewing Company, said: "Change for the most part is personal. You have to speak to people personally, to have them understand and embrace the promise of change. That requires a lot of work. Broadly speaking, the easier it is for individuals to understand and embrace the personal benefit of a change for themselves, the easier it is to win their hearts and minds. The more difficult it is to paint a vision, the more difficult it is to effect and embrace such change."
Consulting Times July 2008
Submitted by Joe Hendren on Fri, 25/07/2008 - 9:52am.
Body: The Government and trade unions say National's employment relations policy will cut wages, despite the party saying it will retain core provisions of the Employment Relations Act (ERA) if it wins the election.
National's leader, John Key, gave an assurance today the basic principles of the ERA would remain in place. "We are staying with the Employment Relations Act. We are not going back to the Employment Contracts Act," he said. "Good faith provisions will still apply, as will rights to sick leave, holidays, and health and safety provisions."
Mr Key said National would keep four weeks annual leave but allow employees to trade the fourth week for cash.
Labour Minister Trevor Mallard described the policy as "a return to the bad old days" with no protection for new employees, an erosion of the Holidays Act and a power shift in favour of employers. National's policy contains the previously-announced provision for a 90-day probation period for new employees and says there will be a review of the Holidays Act. Mr Mallard described the probation period as a "fire at will" provision which would mean lower pay and would force new employees into a trial period without any protection against unfair or unreasonable treatment. And he said a review of the Holidays Act was National Party code for cutting the pay of sick people.
The Engineering, Printing and Manufacturing Union (EPMU) said the policy would drive down the wages of all workers. "Every point in this policy is an attack on current worker rights and every point would put downward pressure on wages," said EPMU national secretary Andrew Little.
Council of Trade Unions president Helen Kelly said there was no mention in the policy of how it would lift wages and predicted holiday pay would be cut.
The National Distribution Union's secretary, Laila Harre, said the policy was a wolf in sheep's clothing. "It is a gift to employers, wrapped in the language of `reasonableness'," she said. "This policy will keep wages down. . .the attempt to shift the balance of power in a workplace even more towards employers is dressed up in weasel words."
Business New Zealand said the policy had the capacity to deliver economic growth if it was partnered by other pro-growth policies. "A period of restraint and consolidation along with enhancement of basic rights is likely to be beneficial," Business NZ chief executive Phil O'Reilly said. "The vast majority of employers will welcome the commitment to review the Holidays Act which has been widely criticised for its complexity and costliness to apply." National's industrial relations spokeswoman, Kate Wilkinson, said the policy was balanced and the response was hysterical. "There is no threat to worker rights, collective bargaining will continue, there is no attack on entitlements, there is no plan to cut holidays and there is no plan to privatise ACC," she said. "It's the same tired old hysterical rubbish we've heard from Labour all week."
The main points of National’s policy are:
- Introduce a 90-day trial period for new staff, by agreement between the employer and employee, in businesses with fewer than 20 people;
- Continue to allow union access to workplaces with an employer's consent, which cannot be unreasonably withheld;
- Continue to support the social partnership with Business NZ and the Council of Trade Unions to work together on issues of mutual interest;
- Restore workers' rights to bargain collectively without having to belong to a union;
- Retain the Mediation Service but ensure it is properly resourced with properly qualified mediators;
- Require the Employment Relations Authority to act judicially in accordance with the principles of natural justice, including the right to be heard, and the right to cross-examine before an impartial referee;
- Allow injunctions and important legal questions to be heard in the first instance in the Employment Court, and allow a general right of appeal to the Court of Appeal;
- Keep four weeks annual leave but allow employees to request trade of the fourth week for cash. This can be only at the employee's request and cannot be raised in negotiations for an agreement; and
- Appoint a working party to review the Holidays Act, especially the issue of 'relevant daily pay'.
Submitted by Joe Hendren on Thu, 24/07/2008 - 2:40pm.
Body: National has confirmed if it is elected to power it will largely retain the Employment Relations Act (ERA).
National leader John Key told a business breakfast meeting in Wellington the basic principles of the ERA – such as that of good faith bargaining – would remain in place. "We are staying with the Employment Relations Act. We are not going back to the Employment Contracts Act," Mr Key said.
Mr Key said his party's industrial relations policy would keep the ERA in place, but introduce a 90 day trial period for firms with fewer than 20 staff.
"Good-faith provisions will still apply, as will rights to sick leave, holidays, and health and safety provisions. Rules of natural justice and human rights legislation will apply. Mediation will be available in disputes, and employers won't be able to hire and fire the same employee every 90 days," Mr Key said.
National did not see the 90 day trial period as making it easier for employers to fire people, but easier to hire them. Every OECD country, except Denmark, had a probationary period. National has dropped its 2005 policy of restricting union access to work places, but will allow workers to bargain collectively without having to belong to a union.
Mr Key said National would also keep four weeks annual leave, but allow employees to trade the fourth week for cash.
This could only be at the employee's request and could not be raised in negotiations for an agreement.
A National government would also:
* Retain the Mediation Service but ensure it was properly resourced with properly qualified mediators;
* Require the Employment Relations Authority to act judicially in accordance with the principles of natural justice, including the right to be heard, and the right to cross examine before an impartial referee;
* Allow injunctions and important legal questions to be heard in the first instance in the Employment Court, and allow a general right of appeal to the Court of Appeal; and
* Appoint a working party to review the Holidays Act, especially the issue of relevant daily pay.
Submitted by Joe Hendren on Tue, 22/07/2008 - 10:02am.
Body: Reports of delays in employer contributions coming into KiwiSaver schemes has some questioning whether money is being lost in the system. Matt Baker, associate director in the tax department of Staples Rodway, which runs a KiwiSaver scheme, says the irregularity of contributions coming from the tax department mean it is a major challenge for providers to reconcile KiwiSaver accounts.
Baker reckons almost half of the employer contributions coming in since January have not yet made it to his scheme and since the compulsory employer contribution started in April the problem has worsened. "It's the result of double the number of people joining than what they expected. The IRD have been overwhelmed by the sheer number. The result has been effectively lost money. But they say it will balance over time."
He is hoping it will all be sorted by the end of this year but in the meantime he recommends people sign up to the Inland Revenue's account balance service to check how much money is getting to the IRD and if there is a problem to talk to their employer about sorting it out. However Inland Revenue says there are no delays that it is aware of in regards to employer contributions and people should be aware that it takes time to process payments.
Inland Revenue collects contributions for KiwiSaver members via the Employer Monthly Schedule, a system which has been in place for several years. This schedule is lodged with Inland Revenue either twice monthly or monthly for the payment of PAYE and now KiwiSaver contributions. These are lodged a month in arrears, so there is always a time lag between the contribution being deducted from salary or wages by the employer, and then passed to Inland Revenue for processing, and then on to the scheme provider for investment for the KiwiSaver member. You can sign up to get the account balance service with the IRD on www.kiwisaver.govt.nz.
FAIR PLAY
Moves by the Government to stop employers from paying those who join KiwiSaver less than their colleagues have been welcomed by some, but others say the changes will introduce even more headaches for bosses. Labour Minister Trevor Mallard has announced plans to amend the Employment Relations Act to make it illegal for employers to offer lesser terms and conditions to KiwiSaver members.
Mallard had become concerned following a number of employers who had docked the pay of staff members by using their money to pay for the employer contributions to KiwiSaver while pocketing the $20 tax credit given to employers by the Government.
Michael Chamberlain, principal of KiwiSaver provider Aventine, says he agrees with the minister that reducing the pay of employees who join KiwiSaver to cover the employer contribution is against the spirit of KiwiSaver but the changes may cause even more problems. "I have real concerns that the proposals announced by the minister may lead to major complications and unintended consequences with managing employment relations and remuneration strategies. "I believe the changes will penalise the good employers by the imposition of additional compliance and system costs."
Chamberlain says the Government should allow employers to go ahead with building KiwiSaver into total remuneration packages but should focus on stopping employers that have docked the pay of their staff to cover KiwiSaver contributions. He says if the minister proceeds with the changes the worst case scenario is that costs to employers will increase significantly while those who can't afford to join KiwiSaver may be discriminated against because those who can join have to be paid 4 per cent more. "I am concerned the minister is using the proverbial sledgehammer to crack a nut."
Staples Rodway associate director Matt Baker says the new policy will completely contradict legislation brought in by the Government in December allowing employers to offer staff a total remuneration package. "As long as the agreement was entered into on or after 13 December 2008, and the agreement was negotiated in good faith, this was entirely lawful. In fact the legislation was passed specifically to allow this option, via amendments to the KiwiSaver Act."
He says if Mallard's proposed changes go ahead there will be a clear conflict between the Employment Relations Act and the KiwiSaver Act. A date has yet to be set on when the act will be amended in Parliament.
SAVERS FEEL PINCH
Finance Minister Michael Cullen takes the opportunity to trumpet the growing numbers of people joining KiwiSaver at every opportunity he gets. At a function last week he slipped in a line about KiwiSaver numbers reaching nearly 770,000 and just a few weeks ago he told a room full of bean-counters he believed the number joining could top one million by the time the election comes around.
But what Cullen doesn't mention is that some people are also being forced to pull out of the Government's savings scheme because of tougher times and higher living costs. Figures for the first year of KiwiSaver show 3506 people have had to take a contribution holiday because of financial hardship.
Sure, that's just a small number compared to the total but now that KiwiSaver has been around for a year predictions are that more people will join them.
Only those who can prove they are under financial hardship are allowed to opt out after being in the scheme for less than a year. But after a year in KiwiSaver anyone can opt out for up to five years - renewable as many times as they like.
The Retirement Commission has already been fielding questions from people worried about how they can afford to stay in KiwiSaver and has recently updated its www.sorted.org.nz website to answer questions like "Can I still afford KiwiSaver?" and "Should I change schemes?"
TAX CREDITS COMING
Those waiting to see when their $1043 Government tax credits will hit their KiwiSaver accounts can be assured it could be anytime now. According to Inland Revenue KiwiSaver scheme providers will apply for the tax credits on your behalf and can do so from July 1 onwards. The IRD then has 30 days to process the application. Those who contribute at least $20 per week are eligible for the tax credit, up to $1043 per year.
CROSSING THE DITCH
Those thinking of moving across to Australia will be glad to know the Government is happy for you to take your retirement savings with you.
Officials from both countries are expected to finalise a deal by the end of October that will allow New Zealanders to take their retirement savings - including KiwiSaver - with them when moving across the Tasman and vice versa. The basic framework has been agreed to but the details still have to be worked out.
Submitted by Joe Hendren on Wed, 02/07/2008 - 10:22am.
Body: In a move which flies in the face of the economic downturn, Australian home improvement chain Bunnings says it plans to open six new stores in New Zealand, investing $90 million and creating 500 jobs.
The big-format retailer has announced expansion plans which show its retail outlets could grow from the current 16 to 22 stores - and then to 26 in the near future. Brad Cranston, general manager of Bunnings in New Zealand, said the business would open at Westgate in Auckland, increasing its footprint in Auckland to five big stores. West Auckland was a significant growth area, and the new store would have a hire shop, free DIY clinics, a children's playground, a cafe and two levels of carparking, he said.
Cranston was not concerned about the economic slowdown. Sales turnover was down on last year and same-store sales had dropped within the last two months, but Bunnings views New Zealand as an area of high growth, he said. The sales downturn was "something of a blip" and did not affect the firm's expansion drive.
Bunnings had invested more than $250 million in New Zealand this decade, Cranston said. The business started here in 2001 following the purchase of the Benchmark Building Supplies stores and now makes annual sales of more than $500 million, Cranston said.
Bunnings owned a new Nelson store and would own the new Westgate store, he said. The Westgate deal comes after a new large-format Bunnings store was developed in Nelson, where the retailer opened yesterday. Previously, the chain announced plans to develop stores in Gisborne, Wellington's Lyall Bay and Upper Hutt, and Dunedin. Some of its new stores cover more than a hectare.
Cranston said the business was also examining establishing a further four stores after that. Outlets in Hawkes Bay, Taranaki, South Auckland and the North Shore were quite on the cards, he said. However, plans for those areas were not yet finalised.
Cranston said Bunnings was showing confidence in the market with the new projects. Retail sales have been falling, in line with the shrinking economy, but he is confident about the retail niche Bunnings has carved out since coming here seven years ago.
"The creation of these 500 new jobs will have a positive impact on the community," he said. "As well as offering new employment, Bunnings Warehouse team members are encouraged to play an active part in their local communities by supporting local community groups.
Last year, Bunnings completed the sale and leaseback of 11 retail warehouse properties in Australia and New Zealand, netting A$203 million ($229.5 million). Auckland-headquartered Dominion Funds Management bought five New Zealand properties, while Australian fund Charter Hall bought the remaining six properties in Australia.
Bunnings is owned by Australian conglomerate Wesfarmers, and its main competitor in New Zealand is Mitre 10 Mega, which is also still expanding and aiming for 20 large-format stores.
Mitre 10 has been in New Zealand since 1974 when it was introduced by 15 hardware retailers who had watched the success of the retail formula in Australia. They felt it was time New Zealanders, too, were offered the cost savings achieved when retailers could pool their orders, buy in bulk and promote nationally, Mitre 10 says. More than 120 stores are operating under the Mitre 10 banner including more than 15 Mega stores.
BUNNINGS
* Opened in New Zealand in 2001.
* Has 16 large-format stores.
* Plans to have 22 stores soon.
* Melbourne-headquartered business.
* Became a public company in 1952.
* Founded by migrants from London.
Submitted by Joe Hendren on Sun, 15/06/2008 - 12:00am.
Body: A fully-fuelled company car is worth $4000 more than a year ago - and businesses are trimming salaries to claw cash back, writes Esther Harward. If you've got a company car, don't expect a pay rise.
Bosses are cutting salaries to compensate for higher vehicle running costs and cancelling perks such as allowing staff to take vehicles away for long weekend trips.
Remuneration consultant Helene Higbee said higher petrol prices and interest rates had pushed up the value of a company car to an employee. A medium- sized 2.4 litre company car for personal use was now worth $17,306 a year - up from $13,199 last year.
Higbee said employers were now less willing to give staff unlimited use of company vehicles and most set a spending limit on personal travel. One employer asked last week if she could do anything about an employee running up an $800 monthly fuel bill.
Cars were the most emotive part of remuneration negotiations and most companies tried to keep them out of contracts so they weren't forced to meet rising costs, she said.
Employers and Manufacturers Association (Northern) chief executive Alasdair Thompson said employers were starting to factor in the increasing value of a company car when considering a pay rise. It was now very common for employers to reduce salaries to make up for higher vehicle running costs, he said. Companies tended to revise the value of car and fuel packages every year, and the price of petrol had risen by more than a third over the past 12 months.
At the same time bosses were increasingly wanting to cash up vehicles and paying employees the equivalent in cash because they were sick of the hassle of insurance claims, administration and staff abuse of vehicles.
HR consultant Kevin McBride said most employees preferred the cash equivalent of a company car, despite paying more for fuel. "Whereas in the past a company car was a bit of a status symbol, increasingly employees prefer to make their own decisions about what sort of vehicle they buy."
Staff who use their own car for work and claim costs back from their employers could find they are not getting properly reimbursed.
Many companies use the IRD's mileage rate of 62 cents a kilometre to claim back tax. The rate was set in 2005 when petrol was $1.53 a litre, and is under review. The AA says it costs 79c a kilometre to run a medium-sized car.
Meanwhile, the AA says motorists are getting stranded in increasing numbers as they try to stretch out the last few drops of fuel in their tanks. Its staff delivered 2061 emergency fuel drops in May - a 20% increase on the February total.
National road service manager John Healy said more city dwellers than rural people got stranded, and in many cases they ran out of fuel on motorways and bridges. "People are taking a risk, thinking 'I'll just let it get down a bit further and wait till I see a petrol station where fuel's a bit cheaper, or they have fuel vouchers for a particular type of station."
Superintendent John Kelly, of Waitemata's road policing unit, said drivers who got stuck on high- volume roads such as the Auckland Harbour Bridge caused chaos and made it dangerous for police and AA staff to rescue them. "They don't save anything . . . It defies any sort of common sense really."
Submitted by Joe Hendren on Sat, 29/03/2008 - 9:00am.
Body: A restraint-of-trade clause in the contracts of shop assistants at Masterton Pak 'N Save has employment lawyers baffled and union delegates outraged. The three-month clause, which is most often used by employers to protect trade secrets, stops employees working for rival stores after they leave the supermarket.
The Dominion Post was provided with a copy of a contract for a Masterton Pak 'N Save shop assistant which says the person cannot work for a rival or similar store within a 50-kilometre radius for three months after resigning.
Employment lawyer Peter Cullen said the clause was far-reaching and it would be hard to prove it was justified in the case of shop assistants. "I've never heard of a check-out operator being subject to a restraint of trade." It potentially stopped former staff working at vegetable stores, bottle shops and similar outlets.
But Masterton Pak 'N Save franchise owner Paul de Lara-Bell stood by the contract. "You can put whatever you want in a contract. Whether you can uphold it in a court of law, and whether people agree to it, are two different things." He said the clause was mainly aimed at senior staff, but the supermarket would not rule out using it on others.
National Distribution Union secretary Laila Harre said the clause was completely unreasonable and illegal. "People don't know what their rights are. They are fearful of breaching the contract and the clause keeps them in a job they're not happy with." She said supermarket workers aged 15 and under usually earned about $6 an hour. Youth workers, aged 16 and 17, were paid $9 an hour, while those over 18 years earned the minimum wage of $11.25 an hour.
Susan Hornsby-Geluk, a partner with law firm Kensington Swan, said the courts scrutinised such clauses heavily, with the onus on employers to prove former staff had specialist knowledge. "You'd be stretching it to say a packer of groceries has either client relationships or special knowledge that create a risk for the employer."
News of the clause has prompted Foodstuffs, which owns Pak 'N Save, to step in. Wellington region group manager Robert Kent said the clause was specific to the Masterton site only. The company did not believe it was enforceable. "We need to take the steps to remove it from that particular site's employment agreement."
In March last year Wellington barista Victor Hsieh was stopped by the Court of Appeal from competing near any of Fuel Espresso's coffee outlets after he took the lease of a coffee cart, Beangrinder, a week after leaving Fuel Espresso. He had a restraint-of-trade clause that stopped him making coffee within 100 metres of any Wellington Fuel outlet for three months after leaving. But Ms Hornsby-Geluk said a barista was skilled and had stronger client relationships.
Submitted by Joe Hendren on Fri, 09/11/2007 - 9:00am.
Union Relevance in Aotearoa in the 21st Century
Laila Harré
National Secretary
National Distribution Union
Submitted by Joe Hendren on Mon, 05/11/2007 - 10:45pm.
Body:
Figures out today show salary and wage rates as measured by the labour cost index (LCI) rose 3.1 per cent in the year to the end of September.
At the same time the quarterly employment survey (QES) for the same period, also published by Statistics New Zealand (SNZ), showed the annual increase in total gross earnings exceeded the annual increase in total paid hours. That resulted in a 3.9 per cent annual increase in average total hourly earnings, to $23.10, SNZ said.
The LCI showed salary and wage rates, including overtime, for the private sector rose 3.2 per cent in the year to the September quarter, while in the public sector they increased 3 per cent.
Steady growth in earnings was also evident in the QES, where seasonally adjusted total gross earnings increased 6.1 per cent for the September year. Employment, as measured by full-time equivalent employees remained relatively unchanged for the September quarter but increased 2.5 per cent for the September year.
The LCI showed private sector wages and salaries, either including or excluding overtime, up 0.9 per cent in the September quarter from the previous three months. In the public sector the quarterly rise was 1.3 per cent.
According to the QES , private sector average total hourly earnings rose 1.3 per cent from the previous quarter and 3.5 per cent over the year to $21.59. A 0.1 per cent slip left the number of full-time equivalent employees around 1.4 million. The QES results showed the continued growth in business demand for labour, SNZ said. The 2.5 per cent increase in full-time equivalent employees for the year was mainly driven by the property and business services and construction industries.
An expected, seasonal downturn in manufacturing activities had reduced the industries' contribution to average total hourly earnings during the September quarter, SNZ said. According to the LCI, the industry groups with the largest annual increases in salary and wage rates, including overtime, were mining, which rose 4.9 per cent, followed by finance and insurance up 4.8 per cent. Other notable movements were 3.1 per cent rises in both education and wholesale trade.
ASB Bank economist Daniel Wills said today's figures suggested the labour market remained tight. Those ongoing wage pressures were going to underpin medium term inflation, he said. Goldman Sachs
JBWere economist Shamubeel Eaqub said the data presented a contrasting picture, with the LCI pretty strong, while the QES was coming off. "It looks like cost pressures are still there but the earnings impact from this is waning on the household sector," he said. "Also the activity side of things was pretty weak, with paid hours growing by only 0.2 per cent in the quarter, consistent with our view that GDP in the third quarter was pretty soft."
The LCI measures changes in salary and wage rates for a fixed quantity and quality of labour input, while the QES average earnings statistics reflect not only changes in pay rates, but also compositional and other changes in the paid workforce.
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