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MAY 2015

CHRISTCHURCH WELCOMES CBANZ CONFERENCE PROTECT YOURSELF FROM FALLS PREVENTING WORKER EXPLOITATION INDUSTRY BOOM; APPRENTICES NEEDED!

WIN A MAKITA DRILL/DRIVER - SEE PAGE 21

SEE INSIDE FOR CHANCES TO WIN GREAT PRODUCTS Offers open to account holders only Call 0800 M10 TRADE to find out more All prices and offers in this publication are valid from from Friday May 1 – Sunday May 31, 2015 from participating stores.


FOREWORD Conference highlights strong links with CBANZ The Certified Builders Association is a group we have worked hard to foster strong ties with over the past few years. We’ve seen the work they do with builders and we see it as a great fit for Mitre 10 Trade as we share many of the same ideals – offering support, advice and the opportunity to develop your building business. The CBANZ annual conference kicks off in Christchurch later this month and, with record numbers of attendees expected, it’s a great chance to meet others from around the country, take in everything that’s going on and have your say in the state of the industry nationwide. It will also be a chance for you to see first-hand what is happening with CBANZ and the Canterbury Rebuild. Mitre 10 Trade will have a very visual presence at the conference, so make sure you come at catch up with us on trade stand number 32. We really looking forward to meeting as many of you as possible over the duration of the conference. In this month’s In Trade, we also profile long-time Mitre 10 supplier Winstone Wallboards, a company we have been associated with as one of our valued suppliers for more than three decades. This company has a huge history in New Zealand and continues to provide innovative, effective and specialist solutions in both systems and products for the New Zealand building industry. Read more starting on page 6.

Neil Cowie

Adrian Moreton

Chief Executive Officer Mitre 10 (New Zealand) Ltd

Acting General Manager Trade Mitre 10 (New Zealand) Ltd


CONTENTS 2

FEATURE

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From May 21st-23rd , Horncastle Arena in Christchurch will be CBANZ CONFERENCE buzzing with apprentices, builders and trade industry partners

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PROFILE

Rod Boyd and Pete Sommerville are trade customers of Christchurch’s Mitre 10 MEGA Hornby store and, due to their location, sometimes require service that’s a little ‘outside the standard’. They’re also both proud members of CBANZ

attending the 17th Annual Certified Builders Conference & Expo - the largest Certified Builders Conference & Expo to be held in the South Island.

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FLYING HIGH

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SUPPLIER PROFILE

Brent Chatterton (CBANZ vice-chairman)

Brent Chatterton - Certified Builders’ Upper South region representative and vice-Chairman of the CBANZ Board says the CBANZ conference is a great way for Christchurch to showcase itself and show those from other areas of the country that the city is back on track. Customers from Mitre 10 MEGA Marlborough and Mitre 10 MEGA Nelson both attended the 2015 Classic Fighters Airshow three-day spectacular, held at Omaka, near Blenheim over Easter.

Winstones

Winstone Wallboards, whose relationship with Mitre 10 spans over 30 years, is New Zealand’s largest manufacturer and marketer of gypsum plasterboard, drywall systems, associated products and services.

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TRADES COACH

Avoiding growing pains

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BRANZ

Drained and vented cavities

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LEGAL

Protecting employees against exploitation

Andy Burrows says now is a good time to evaluate how your business has been tracking for the past year or so and set some new targets for the next couple of years. How should the base of a drained and vented cavity be constructed for a timber or concrete pile construction?

Cover: Rod Boyd from RB Building Ltd in Darfield, near Christchurch.

Volume 8, Issue 11 May 2015 Mitre 10 In Trade magazine is published 12 times a year in association with Mitre 10.

Managing Editor

Scott Wilson Phone: 021 725 061 Email: editor@M10magazine.co.nz

Contributors

Adrienne Jervis Erin Davies and Mallory Schofield – Meredith Connell BRANZ BCITO Site Safe NZ RightWay Ltd Andy Burrows – Trades Coach Certified Builders Association of NZ

Every employer and employee in New Zealand has minimum rights and obligations that apply to their employment relationship by law, regardless of whether they are included in an employment agreement or not.

Printer

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BCITO

Industry boom; apprentices needed!

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SITE SAFE NZ

Minimising fall risks

ReFocus Media Ltd P O Box 21081 Flagstaff Hamilton 3256 Email: Info@refocusmedia.co.nz

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BUSINESS

Rightway

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THE BACK PAGE

Around the Stores Stuff to win, points to earn. Don’t miss the back page.

With a $100 billion construction boom now a reality, the Building and Construction Industry Training Organisation (BCITO) is doing everything it can to recruit more people into construction apprenticeships. Falls are a big problem for builders and construction trades in New Zealand. In Canterbury alone, there have been over 110 fall injury claims lodged with ACC in the past 12 months. Greg Sheehan suggests a ‘paint by numbers’ approach is often is great way to build a great business. He outlines his thinking on page 20.

Nicholson Print Solutions

Enquiries

Refocus Media Ltd reserves the right to accept or reject all editorial or advertising material. No part of In Trade magazine may be published without the express permission of the publisher. All rights reserved. Opinions expressed in In Trade magazine are not necessarily those of Mitre 10 or the publisher. No responsibility is accepted for the suggestions of the contributors or conclusions that may be drawn from them. Although the publisher has made every effort to ensure accuracy, the reader remains responsible for the correct use and selection of any tools, materials and systems followed, as well as the following of any laws or codes that may apply.

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PROFILE

Canterbury builders benefit from CBANZ Canterbury building company, Peter Somerville Building Ltd, joined Certified Builders (CBANZ) several years ago to get connected with others in the industry and be part of a body where quality work counts. “Being recognised as a tradesman is really important,” says Pete. “ There are far too many builders out there working who don’t know what they’re doing.” It breaks his heart when he has to go and tidy up someone else’s poor workmanship. Pete believes clients these days need to get better informed, and CBANZ helps with that. The Association’s annual conference – to be held in Christchurch later in May - provides him with a great opportunity to talk with others in the industry from around the 2

country. Being rurally based, Pete finds it pretty hard and lonely at times. “We have totally different stresses to those working in an urban environment.” The conference is beneficial as it keeps him grounded, allows him to hear what others are up to, and provides access to industry partners, which is always valuable. After completing his carpentry apprenticeship in 1989 Pete spent 10 years overseas on an extended OE working in London, Berlin, Milan and Houston, Texas. In 2000, he returned to his home town of Cheviot, North Canterbury with his English wife Philippa. They purchased a 450-acre hill farm running sheep and beef. But it didn’t take long before locals began hassling him to get back building, so he started juggling farming and building. The going got even more difficult once children came along.


PROFILE “It was hard going doing both jobs well and to any level of satisfaction.” By 2005, Pete was building new homes in the Cheviot district with a small team of 2-3 employees, and Philippa based in the office. However, the distance from suppliers has always been a hassle. A round trip to Christchurch takes three hours. Pete is often on the road at the end of the day heading into Mitre 10 MEGA Hornby to pick up supplies to keep the team running ready for the next day. Freight trucks are good for larger items but Pete often wants to engage with the suppliers face-to-face to make sure he gets exactly what he needs for exactly the right price. The Mire 10 MEGA Hornby staff are polite and obliging. “They treat us well when we’re in-store and make us feel like valued customers.” Being able to deal directly with management is always an advantage, according to Pete. “They really value us as a trade client and that is what we expect from our primary supplier of materials - good old fashioned service.”

With the first two specs under their belt, RB Building took on Scott, a qualified builder. For a year he was on an as required basis but has since become a permanent employee. RB Building also has a good group of subbies. “Loyalty and good quality workmanship are very important to us.”

Good grounding Rod learnt many of his skills and discliplines in the NZ Army, which he joined when he was 17 becoming interested in the building industry when the NZ Army came to his high school to talk about careers. He did this 8000 hours apprenticeship, Trade Cert and Advanced Trade Cert through the NZ Army. After 10 years service he joined the real world. “The army was a great way to get paid to learn a trade, travel, stay fit and play sport.” Building for 33 years, Rod says the biggest reward is the finished product with a high quality of workmanship. The company prefers to offer quality over quantity so doesn’t take on too many builds at once.

RB Building Ltd Darfield Formed in 2007, RB Building Ltd initially provided labour only for housing companies. However, Rod Boyd’s wife Odette, eventually suggested he take the plunge and go out on his own. The Boyds sold their own home, bought a section and built a spec home, which was quickly under offer. In the early days RB Building as just Rod on the tools and Odette doing the accounts, since the earthquakes Odette has become more involved in the company. She’s completed a couple of QS papers and is currently doing construction management at CPIT in Christchurch. She also quotes, deals with clients, contracts, and handles a raft of other tasks.

“We were looking for an association that helps its members not only in dealing with any issues but with training and business acumen. For us, Certified Builders ticks all the boxes.” - Rod Boyd 3


PROFILE RB Building joined CBANZ four years ago, although Rod reckons they should have done it a lot sooner. “We were looking for an association that helps its members not only in dealing with any issues but with training and business acumen. For us, Certified Builders ticks all the boxes. We’ve found the business help-line, building and employment contracts, toolbox seminars, training and up-to-date information on all the new regulations very beneficial.” The annual conference provides him with a good opportunity to network with other builders and like-minded industry people, as well as listen to interesting keynote speakers. RB Building has been with Mitre 10 MEGA Hornby for the best part of nine years. “The biggest asset has been the people who are willing to do anything for you and are always helpful. Nothing is a problem.”

“We can generally get deliveries within a day if required.”

Relationship with store Ian Stevens, the Trade Manager at Mitre 10 MEGA Hornby, says both builders have had a long association with the store. “Both are are well respected tradesmen and are highly regarded in their own communities,” he says. “We understand each other’s businesses and realise that, because both these companies work outside the metropolitan area, communication and advance planning are critical to the smooth running of their businesses. Both Peter and Rod who are well organised and focused business people.” “As Trade Manager at Mitre 10 MEGA Hornby, it is easy to run a very successful building supplies operation when we have successful builders as key customers.”

The store is not far away when something is needed. Either the rep brings it out or it is put on a truck.

Catch up with the Mitre 10 Trade team on Stand 32. We have the tools to help build your business, including our online hub. Plus you’ll be in to win some great prizes.

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CBANZ

Certified Builders conference expects record attendance From May 21st-23rd , Horncastle Arena in Christchurch will be buzzing with apprentices, builders and trade industry partners attending the 17th Annual Certified Builders Conference & Expo - the largest Certified Builders Conference & Expo to be held in the South Island. The conference theme is “Still New Zealand’s Most Qualified Builders” and Certified Builders says the educational workshops at conference go to prove that continuing education is pivotal to the success of its members. There will be 12 educational workshops, split into three streams: • Certified Stream bringing CBANZ members ‘Successful Sales Techniques’, ‘Law Changes: Insurance & Product Warranties’, ‘The Importance of Employing an Apprentice’ and ‘Construction Contracts Act’. • The Site Stream will be focused around the building site and the delegates will learn about ‘PRESSS Technology’, ‘LBP update form the Registrar Building Practitioner Licensing’, ‘Essential Health & Safety Toolkit’ and ‘Prebuilt construction in NZ’.

• The Office Stream will educate the delegates on ‘Consumer Law’, ‘Make the Internet Work for You’, ‘Customer Service & Satisfaction’ and ‘Charge-out Rates’. The keynote speakers on Friday May 22nd are sure to educate, entertain and motivate; Geoff Hardy will be speaking about the latest developments in Building Law, Rhett Brown will be highlighting health and safety on the work site and Davey Hughes (the Swazi Man -kindly sponsored by Mitre 10) will be motivating the delegates to “live their dreams” including tales of pirates, bears, wolves and wild women. CBANZ says there has been an overwhelming demand for trade exhibits at the upcoming expo, that the expo area has been increased in size twice already. There will be more than 75 building and construction industry-related trade exhibits, showcasing new products and technology and numerous prizes up for grabs. The expo will be open to all tradies in and around Christchurch on Thursday afternoon (May 21st) from 3:30 - 5:30 pm with no entry fee – so if you are in the area and have a few hours to spare, do pop into the expo – you won’t be disappointed. Conference organisers and CBANZ says it’s looking forward to seeing many of you in Christchurch in May. For further info go to: www.certified.co.nz 5


CBANZ Canterbury on show says local CBANZ member Brent Chatterton - Certified Builders’ Upper South region representative and vice-Chairman of the CBANZ Board - says the CBANZ conference is a great way for Christchurch to showcase itself and show those from other areas of the country that the city is back on track. “This will let us show the rest of New Zealand what’s happened here and that we’re back up and running and back in business,” he says. “I think there will be a lot of people that won’t know what’s happened here until they get here.” Brent, who is serving this first term on the CBANZ Board and will step into the Chairman’s role next year, says he’s passionate about the Certified Builders organization and says that its aims and ideals reflect those he implements through his own company, Chatterton Builders Ltd – a company he started in 1998. “It lines up well with us and our business – ensuring that houses and buildings are built by qualified people,” Brent says. “All our staff are either trade qualified or apprentices; we don’t have any labourers or hammer-hands or anything like that.” Having served on the Canterbury CBANZ committee for four years, he’s seen first-hand the positive impact the organization has had on local builders since the devastating earthquake on February 22, 2011.

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“Certified Builders has been supporting the members down here directly in any way they can, but has also played a big role in unblocking some of the roadblocks a lot of people faced, such as those we’ve seen when dealing with insurance companies,” he says. “We like to steer those guys in the direction of Certified Builders, so we know they are using qualified tradespeople.” He goes on to point out that the South Island Business Development Manager’s role is currently vacant and being advertised and will involved liaising between all the necessary groups involved in the rebuild.

Innovation through rebuild While the earthquake has devastated his region, Brent says the recovery has sparked considerable innovation in areas of design, products and systems used which may eventually have an impact throughout the rest of the country. “It’s good work now. About 12 to 18 months ago, the good stuff really started to kick off after we had got all the clean up and mess out of the way,” Brent says. “There’s a number of people that have taken that opportunity, through the increased volume of work, to use some different products, new products and systems and ways of doing things,” he says. “They can use this as a starting point, then roll it out to the rest of New Zealand.”


FLYING HIGH

Classic wings over Marlborough Mitre 10 MEGA Marlborough and Mitre 10 MEGA Nelson hosted around 40 clients at the 2015 Classic Fighters Airshow, held at Omaka, near Blenheim over Easter. The three-day spectacular features a variety of classic aircraft on display, as well as other events, and is run on alternate years as a fundraising events for the Omaka Aviation Heritage Centre. Kevin Rae, Mitre 10’s Regional Trade Development Manager

MARLBOROUGH WELCOME TO THE 2015 CLASSIC FIGHTERS VIP EVENT

for the South Island, said Friday’s activities were a display of aircraft of various vintages as part of a ‘practice’ day before a pyrotechnics display to round out the day. Both Saturday and Sunday were full-on days of entertainment with more than 100 aircraft participating, as well as air and land reenactments of World War 1. It was the first time I had been to an air show along with some of our clients. The clients from Mitre 10 MEGA Nelson and Mitre 10 MEGA Blenheim had a great weekend with Mitre 10. 7


SUPPLIER Lining kiwi homes for more than 85 years

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SUPPLIER

Proudly Kiwi Winstone Wallboards, whose relationship with Mitre 10 spans over 30 years, is New Zealand’s largest manufacturer and marketer of gypsum plasterboard, drywall systems, associated products and services. The company has been operating since 1927 and manufactures plasterboard systems under the GIB® brand name. Winstone Wallboards, who have facilities in Auckland, Wellington and Christchurch, is part of the Building Products Division of Fletcher Building - a New Zealand based international company. The GIB® brand is a New Zealand icon brand and Winstone Wallboards has a proud heritage of being a New Zealand focused and New Zealand based company.

Support you can depend on For over 85 years, Kiwi builders have been relying on GIB® plasterboard systems. Locally made for local conditions, the key systems meet and exceed the requirements of NZ’s stringent building codes and are BRANZ appraised. GIB® plasterboard systems are backed by local technical support to help builders and installers avoid on-site delays and call-backs. From Cape Reinga to Stewart Island, they are here to help with technical support by phone, email, online and, of course, face-to-face on-site. Detailed technical literature is always on hand, including the GIB® Site Guide, known as the ‘builder’s bible’ and the GIB® App. Winstone Wallboards back their products and systems 100% and combined with their GIB® Product and System warranty, this means builders can install with confidence.

More than plasterboard Winstone Wallboards offers so much more than quality plasterboard, including: • Proven logistics – working hard to get the right product to customers at the right time, every time so there’s no interruption to building. • Next day delivery – through merchants nationwide like Mitre 10, the company can supply products to the customer’s nominated merchant within 24 hours (subject to order conditions).

• Direct to site delivery – Auckland, Christchurch and Hamilton currently offer direct-to-site delivery services, including the offloading and placement of plasterboard by specialists, to save builders time. • Special cut-to-length service – helps to reduce waste on site and makes installation quicker (minimum order and lead times apply) The company is constantly innovating to make things easier for their customers. They offer specialist systems for specialist situations (e.g. products that resist moisture, heat, noise and hard knocks).

Rebuilding Christchurch Winstone Wallboards is proud to be helping to rebuild an even better Christchurch. The company has invested heavily to ensure they are well positioned with sufficient capacity to deliver on future requirements for the Canterbury rebuild. Following the earthquakes, a comprehensive range of technical information, tools and general guidelines have been made available on the GIB® website to assist those involved in the rebuild.

Who says reliability is boring? In 2014 the company was proud to have won, for the 10th consecutive year, the Hardware Awards Supplier of the Year (Building Supplies). To the team at Winstone Wallboards, it’s more than just an award. It’s what their customers’ trust looks like.

If you need more information, visit www.gib.co.nz or call 0800 100 442.

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AVAILABLE AT MITRE 10 MEGA


TRADE COACH

How to avoid growing pains It’s the start of a new financial year for most of us. A good time to evaluate how your business has been tracking for the past year or so and set some new targets for the next couple of years. With the construction market being fairly buoyant at this time, and prospects looking reasonably solid in the near future, perhaps it’s time to get serious about a proactive growth strategy. Despite there being more work around (especially in Auckland and Christchurch), a successful growth strategy won’t happen by itself. Everyone else is rising on the tide with you so, to stand out from your competition and to grow safely, you need to do some planning and then implement those plans. Growing safely is a particular concern of mine. I have seen - and continue to see - examples of building companies that have grown too fast, without the necessary support systems in place, only to explode spectacularly like a sky rocket.

having a higher turnover, but several other factors need to be considered before a higher turnover, lower margin strategy can be safely implemented.

2. Improve your quality It is also no good to produce a much bigger volume of work that is plagued with waste and quality issues. When you are a small operation, you can personally deal with these annoying mistakes. When you are running multiple projects simultaneously, quality issues will quickly get out of control and burn profits faster than you can count. Before you start increasing your marketing efforts, improve your core efficiencies at the pit-face. This also includes your customer service process as well. Have systems that deal with client management before, during and after project delivery.

3. Plan your cash flow

There are lots of things that should be considered and every business will be a bit different. I can help you with a customised growth plan but, in general terms, I have covered four important areas to consider early in the process.

One of the biggest issues with scale is the affect on cash flow. Run well, a construction business can actually be a cashpositive business, so managing the receipts and payments processes correctly can result in a comfortable bank balance. Unfortunately not many construction businesses are well run in this area and constantly lurch from cash crunch to cash crunch. Set up your contracts to bill ahead of work, be diligent on your debtor control, use just-in-time materials ordering, don’t use cash to buy long term assets, plus a few other tactics and you will be in a much healthier cash state. Also, do a budget! Contact me if you don’t know how.

1. Is your pricing right?

4. You can’t do it by yourself

It is certainly not worth considering a growth strategy unless your pricing levels and process is covering ALL your costs and returning you a fair profit. If you feel that you aren’t making the kind of owner salary and profit level that you deserve, thinking that it will be better if your turnover is a lot higher could be a prelude to disaster. “What I miss on margin, I will make up in turnover” is a commonly held misbelief. It can help

Many small business owners are control freaks. They handle everything because, “nobody can do it as well as me”. Being a bit of a control freak is not a bad thing in itself. Nobody will have the passion for your business that you do and nobody will take the care either. But, you have to accept that in order to grow you have to be able to develop the mindset of succeeding through the efforts of others. I know it’s hard finding good people at the moment. All the good ones are either taken, or running their own businesses. This just means that you need to be a bit smarter in your hiring process and also developing very clear systems in your business so that less that perfect team members can still produce high quality results consistently and with a shared vision guiding their head and heart.

So, before you hit the accelerator on your business, it pays to make sure the wheels are bolted on firmly and your business ‘vehicle’ can stand the strain of the extra pace.

Andy Burrows Andy Burrows has been a professional business advisor, mentor and coach since 2006. He specialises in working with the owners of constructionrelated businesses to build systems and profitability into their operations.

So, there are my top suggestions to make sure the four wheels on your business vehicle are in solid and safe condition to drive your future growth. Contact me to discuss your future growth plans and how a customised plan can be put together to maximise your chances of success. 11


BRANZ

Getting closure By Alide Elkink, Freelance Technical Writer, Wellington

The branz helpline was recently asked how the base of a drained and vented cavity should be constructed for a timber or concrete pile construction. Let’s take a look. Building code acceptable solution E2/AS1 does not have a detail for the base of a cavity for timber or concrete pile construction, so where do we start?

Things to consider Two aspects that need to be considered are: • the clearance distance between the bottom of the cladding and the finished ground level • what is required to ensure the base of the cavity is not open to the subfloor. Although both issues are addressed in E2/ AS1, different sections need to be applied when the foundation system is timber or concrete piles.

Minimum clearances E2/AS1 provides minimum clearance distances between the bottom of the external cladding and ground level (paragraph 9.1.3, Figure 65 and Table 18). Table 18 gives minimum clearance distances depending on floor type – either concrete or timber. Paragraph 9.1.3.5 refers specifically to suspended timber floors and stipulates that the base of the cladding must overlap the timber floor structure by at least 50 mm. This is also included in Table 18, note (2). See Table 1 for a summary. Paragraph 9.1.3.5 also states that care must be taken to prevent air from the subfloor space, where moisture levels may be high, entering the drained cavity.

12


BRANZ TABLE 1: MINIMUM CLEARANCES FOR CLADDINGS WITH TIMBER FLOORS SITUATION MINIMUM DIMENSION Bottom of cladding to underside of bearer or lowest part of subfloor 50mm framing Bottom of cladding to paved ground level

100mm

Bottom of cladding to unpaved ground level

175mm Adapted from E2/AS1 Table 18.

Cavity closers to drain and stop vermin E2/AS1 paragraphs 9.1.8.2 and 9.1.8.3 cover cavity closer requirements. Paragraph 9.1.8.2 states that the air movement between the drained cavity and a subfloor space should be prevented but also that the bottom of the cavity should be drained and vermin-proofed.

Paragraph 9.1.8.3 describes requirements for vermin-proofing including that cavity closers should: • have 3–5 mm drainage slots • provide a total opening area of 1,000 mm2 lineal metre of wall • be located so that there is a drip edge of at least 10 mm at the base of the cladding. Figure 1 shows how both these requirements can be met with timber pile construction.

Remember the subfloor ventilation The subfloor space in fully piled foundations must have 3,500 mm. ventilation per square metre of floor space to prevent subfloor dampness. NZS 3604:2011 section 6.14 gives methods of providing ventilation including: • for sheet material – provide ventilation openings at no more than 750 mm from each corner in both directions evenly distributed at not more than 1.8 m spacings for the perimeter of the foundation • for baseboards – provide continuous 20 mm slots between baseboards.

You want help with more than just the numbers, right? You don’t have time to visit your current accountant and they won’t come out from behind their leatherpadded desk.

You have no idea when or how much your current accountant is going to charge you.

You want to be wowed, inspired and educated at industryrelevant events.

SEVEN REASONS YOUR SMALL BUSINESS SHOULD CHANGE ACCOUNTANTS You’re not reaping the benefits and purchasing advantages of being part of a 450,000-strong small business network in New Zealand.

You don’t have regular financial updates to help you make changes or implement new strategies on the fly.

You have no exit strategy.

Contact us for a free 1 hour consultation with your local regional partner. Go to rightway.co.nz or call us on 0800 555 024

13


EGAL LEmployers who exploit workers to face tougher sanctions By Erin Davies and Mallory Schofield Employment Standards - Current Position Every employer and employee in New Zealand has minimum rights and obligations that apply to their employment relationship by law. These exist regardless of whether they are included in an employment agreement or not. Also, to the extent that an employment agreement states something less than a minimum entitlement, the agreement does not apply. If an employer fails to observe any of the minimum rights of an employee, they currently face a financial penalty of up to $10,000 for individuals or $20,000 for companies. In addition, an employer may also be fined or prosecuted for failing to comply with workplace health and safety laws.

Employment Standards Bill The Government has recently approved a package of measures designed to strengthen enforcement of minimum employment standards in New Zealand. The driving motivation behind the proposed changes is to stop workers from being exploited and to prevent employers receiving an unfair advantage over employers who abide by the law. The proposed changes will be set out in an Employment Standards Bill introduced to Parliament later this year and will include: • For the most serious breaches, cases will be heard in the Employment Court and will carry maximum penalties of $50,000 for an individual and the greater of $100,000 or three times the financial gain for a company; • Employers will be publically named if the Employment Relations Authority or Employment Court finds that they have breached minimum standards; • Individuals will also face the possibility of being banned as employers if they commit serious or persistent breaches of employment standards; • Persons other than the employer – such as directors, senior managers, legal advisors and other corporate entities – can be held accountable for breaches of employment standards if they are knowingly and intentionally involved when an employer breaks the law. For example, a legal advisor who aids an employer to manipulate corporate structures to avoid paying entitlements could be found to be liable. 14

• Record-keeping requirements for wages, time, holidays and leave will be made consistent across all employment legislation to help monitor compliance with the minimum requirements; • There will be enhanced information sharing powers with other regulators such as Immigration New Zealand, the Companies Office and Inland Revenue; and • Labour inspectors will be able to request any record or document from employers that they consider will help them determine whether a breach has occurred. For minor to moderate breaches, the penalties will remain at $10,000 for an individual and $20,000 for a company and be heard in the Employment Relations Authority.

Snapshot of some of the key employment rights and obligations in New Zealand Employee Rights Employment Agreements: Every employee must have a written employment agreement. This can be an individual agreement or collective agreement for two or more employees. Minimum Pay: Employees who are aged 16 years and over must be paid (at least) the adult minimum wage, unless they are starting-out workers or trainees. As at 1 April 2015, the minimum wage has increased from $14.25 to $14.75 per hour (before tax). Paying wages: Legally wages must be paid in cash, meaning employers must obtain their employee’s written agreement to wages paid by direct credit or cheque for example. Also, other than deductions required by law (for example PAYE tax, student loan and child support), employees must give their written consent before deductions can be made from their wages. Break Entitlements: Employees are entitled to rest and meal breaks, which give them a reasonable chance to rest, refresh and take care of personal matters. The length of the breaks must also be appropriate for the length of time worked. Alternatively, an employee and employer can now agree to compensation instead of breaks – a legislative change effective from March 2015. Annual Holidays: Employees are entitled to four weeks’ paid annual holidays upon completion of one year of employment with any one employer.


LEGAL Public Holidays: Employees are entitled to 11 paid public holidays off work provided the public holidays fall on days when the employee would normally work. Sick Leave: After six months of employment, an employee is entitled to five days paid sick leave. Employees are then entitled to five days sick leave for every 12 months after that. Bereavement Leave: After six months of employment, employees are entitled to paid bereavement leave of: • Three days on the death of a spouse/partner, parent, child, sibling, grandparent, grandchild, or spouse/partner’s parent; or • One day if the employer accepts the employee has suffered a bereavement involving a person not included in the list above. Parental Leave: Employees may be eligible for paid and/or unpaid parental leave if they meet certain criteria. The paid leave is funded by the Government, not employers. From 1 April 2015, employees who meet the six-month employment eligibility criteria are entitled to 16 weeks’ paid parental leave. From 1 April 2016 this entitlement will increase to 18 weeks. Flexible Working Arrangements: All employees have a statutory right to request a change to their hours, days and/or place of work. Employers are then under an obligation to consider the request and may only refuse on certain grounds. Unions: Employees have the right to decide whether to join a union and, if so, which union to join.

Minimum standards - An example On 7 March 2015, the Employment Relations Amendments Act 2014 came into force. This legislation has gained the most publicity in respect of its reform of rest and meal breaks in employment, where an employee and employer can now agree to compensation instead of receiving breaks. The expectation is that employers and employees will bargain in good faith over the timing and length of breaks or, alternatively, reasonable compensation in lieu of a break. Although there are no set rules in respect of what will amount to reasonable compensation, the test appears to be that the compensation will be reasonable if it is of a similar value to the break. Unions have raised concerns around this reform that employers will use the new law to take away workers rights. A recent example of this involved the clothing chain Cotton On and its proposed changes to the collective agreement with its staff, which would have resulted in the staff at the Auckland distribution centre having to individually negotiate a tea and lunch break. This matter generated a lot of social media attention and ultimately resulted in Cotton On backing down. The Employment Standards Bill could therefore be seen as a means of maintaining public confidence that employers are, and will continue to be, accountable for their actions in respect of how they treat the most vulnerable employees in New Zealand.

It is illegal for an employer (or anyone else) to put unreasonable pressure on an employee to join or not join a union.

Employer obligations Keeping Records: Employers must keep an accurate record of an employee’s time worked, payments made, and holiday and leave entitlements. Equal Pay and Equal Rights: Employers can not discriminate when hiring or firing, paying, training or promoting an employee because of race, colour, national or ethnic origin, sex or sexual orientation, marital or family status, employment status, age, religious belief or political opinion, disability, or participation in certain union activities. Health and Safety: Among other things, employers must provide a safe workplace, with proper training, supervision and equipment. Change and Restructuring: Employers must consult with employees about proposed decisions which are likely to have an adverse effect on the continuation of their employment, including transfer of business arrangements.

erin davies Erin Davies, Special Council, and Mallory Schofield, Solicitor, Meredith Connell. Erin leads Meredith Connell’s specialist employment team, which offers a full service practice, advising and representing employers on all employmentrelated issues.

15


BCITO BCITO’s Build-Ability Challenge for schools kicks off in May BCITO’s tagline and philosophy of ‘Building People’ starts right at the beginning when future carpenters are still at secondary school. The BCITO Build-Ability Challenge is a nationwide, school-based competition, open to secondary school-aged students. It’s aimed at pupils with skills in technology who may be interested in pursuing a career in the building and construction industry. It’s also a strategy for BCITO to further build relationships with schools, careers counsellors and technology teachers. In 2015 the Challenge kicks off on 4 May. Twenty eight schools are lucky enough to have been successful in securing their place in the challenge this year. Each school will have a team of up to 5 students whose task is to work together to plan, design, cost and build a playhouse to defined specifications. The playhouses must have a distinctive theme, be safe and fit-for-purpose as well as showcasing the construction skills of the team. Like the name suggests, Build-Ability aims to challenge students. Completing the challenge requires that teams excel in both aptitude and attitude. Competitors will need to think creatively, work collaboratively and keep to timelines throughout the competition. Documenting each team’s progress online throughout the challenge is an initiative that was introduced in 2014’s BuildAwatapu College

Central Hawkes Bay College

Dannevirke High School

Feilding High School

Forest View High School

Howick College

Hutt Valley High School

Kaikorai Valley College

Kamo High School

Kerikeri High School

Mana College

Manurewa High School

Middleton Grange School

Opotiki College

Otahuhu College

Queen Charlotte College

Riccarton High School

South Otago High School

Rosehill College

Rotorua Boys High School

Tararua College

Takapuna Grammar School

Ability competition. Teams will be blogging each week at buildability.co.nz , from May to August, during the build phase of the competition. The public will be able to visit this site and cast their votes on the finished playhouses to choose a winner of the ‘people’s choice’ category. Prizes up for grabs include $1,000 for the overall winners, a ‘classroom shout’ for the people’s choice award and a GoPro camera for the winners of the best video blog entry. BCITO reintroduced this competition last year with just nine schools competing. It was so successful that it’s been opened up this year to a larger group of competitors. It’s going to be full on and no doubt a nationwide battle will ensue between the top technology students from the competing schools. Each team will be mentored by teachers and supported by BCITO Skills Brokers. Build-Ability also provides students with a chance to be the heroes of their school campus and local community with a focus on giving back. Creating projects to raise money for local community groups, students develop self-confidence, selfesteem and a sense of ambassadorship for their school. Best of luck to all the schools competing in this year’s BuildAbility Challenge. If last year’s competition is anything to go by, we look forward to seeing some amazingly creative and wellconstructed playhouses.

PROJECT INSPIR

ATIONAL SKETCHE

COUNTR

Y AND WE

STERN

S

ROCKET SHIP

PIRATE SHIP

WHARENUI

PAGODA PLAYHOUSE

PLAYHOUSE SPECS’ CHECKLIST To be eligible for the competition your playhouse must meet these criteria:

Tamatea High School

16

To transport it must fit in the back of a ute or trailer (1.8m x 2.2m)

Waiopehu College

Thames High School

Tuakau College

Waitara High School

Waiuku College

The final build must not be more than 1 storey (being a floor level of up to 1 metre a above the supporting ground and height of up to 3.5 metres above the floor level). The overall structure must not exceed 5 square metres It must have a distinctive theme – think pirates, castles, culture…. It must be safe (no sharp edges or proud nails/screws), durable (able to stay outside) and is fit for purpose (suitable in size for a preschooler)

HOBBIT

The playhouse must be correctly finished and painted to a high

HOME

standard using correct preparation and painting techniques It must show a clear element of creativity and fun The ‘inspiration sketches’ on this poster should get your creativity flowing, they are not for you to copy. There are lots of different ideas and inspirations across the web and in childcare centres or kindergartens around your neighbourhood.

Your team’s imagination is your only limit.


BCITO

$100 billion construction industry boom results in urgent apprenticeship drive With a $100 billion construction boom now a reality, the Building and Construction Industry Training Organisation (BCITO) is doing everything it can to recruit more people into construction apprenticeships. BCITO launched an edgy campaign aimed at raising general awareness of the incredible career opportunities now available in construction due to skills shortages across the country. “Since 2012, our construction sector has grown by nearly 9%, in contrast to the wider economy which has grown around 2.5%. This has never happened before, and construction is now one of the fastest growing parts of the economy, predicted to grow 3.2% per annum until at least 2017,” says BCITO Chief Executive Ruma Karaitiana. “The downside of this is that we are now very short of professional tradespeople, and there seems to be a lag in market response to opportunity. Sure we’re signing up more apprentices now, but most career seekers are behaving in the same way, going down the same pathways that they have been going down for decades. While nearly 30% of school leavers are going off to uni’, less than 7% are going into trade apprenticeships. We’re trying to change that.”

these, 32% expect to progress into supervision or management in the next 2 years, and 27% even see themselves starting their own business. “Compare some of these numbers to other pathways, and we’ve got a very positive proposal. By comparison, only 56% of Bachelor degree graduates get a job in their first year after graduating. Now we just need to get the word out,” says Ruma. BCITO’s “It’s Not” recruitment drive aims to do just that. It’s a tongue-in-cheek campaign underpinned by some real truths; challenging pre-conceived misconceptions of construction trades. Adverts will be placed in digital, outdoor and print channels. “This is the biggest recruitment drive we’ve done in a long time” says Ruma. “We are going to push a few boundaries, but in a fun way. In competing head-on with other tertiary institutions, we are coming up against marketing budgets which are huge in comparison to our own. We hope that by pushing a few buttons we’ll attract attention, and hopefully draw public interest to what is a $100 billion issue.”

Ruma says BCITO is looking for motivated people in particular – those who are driven to succeed, and want to be future managers. This means targeting career seekers who may well be considering more academic pathways, and putting BCITO messages in front of them. “One of the key issues we’re really honing in on with this promotion is student loans. We’ve always been a little perplexed by the ‘elephant in the classroom’; that is the $14 billion of student debt plaguing many learners. The average domestic student’s debt in 2014 is up 57% on 2011, to almost $25,000. We’re trying to get the message out there that it doesn’t have to be this way. Our apprentices don’t have student loans; they have jobs.” In fact, Ruma says recent BCITO research shows that 98% of graduated BCITO apprentices are in full-time employment. Of

17


SITE SAFETY

Minimising the risk of a fall Happy customers, jobs completed on time, bills being paid and the phone ringing off the hook with more referrals for new work. This is how it is meant to be… until you or one of your key staff are off work with an injury from a preventable fall and unable to keep the business ticking along. Falls are a big problem for builders and construction trades in New Zealand. In Canterbury alone, there have been over 110 fall injury claims lodged with ACC in the past 12 months. However one of the most staggering statistics is that approximately 50% of fall-related injuries are a result of falls from under just three metres. 70% are falls from ladders or roofs and this goes to show that the jobs perceived as quick and simple can also be so dangerous. It can be the simple, quick activities that catch you off guard and cause a fall; so before starting a job consider how you can eliminate, isolate or minimise a possible accident. 1. E  liminate the chances of a fall by doing as much of the preparation work as possible on the ground 2. I solate the worker from the risk of a fall by investing in and using appropriate safety equipment to prevent the fall 3. O  nly when these steps are not achievable should the risk be minimised. WorkSafe NZ has a special focus on working at heights as employers must take all practicable steps to ensure their workers are safe. So it is best to have everything in place to ensure you comply. Injuries caused by a fall from heights can include broken bones, neck injuries, brain injuries, sprains, lacerations and bruising. All of these injuries involve costly medical care and add up to cost around $24 million per year. Then there’s the true cost of time off work and the human cost of pain and suffering. So, how do you stop people being injured by a fall? 18

Fall Restraint: A fall restraint system prevents workers from reaching the edge. Falls are prevented by having the worker restrained through a full-body harness which is connected to an energy absorbing lanyard and suitable anchor point.

Fall Arrest: A fall arrest harness provides more movement and allows the worker to reach the roof edge. In the event of a fall, a shock absorbing lanyard will break the fall and allow the person to either self-rescue or be rescued.

Edge protection: Edge protection is installed on a roof and acts as guardrail around the perimeter of the roof to prevent the worker from falling. Edge protection has a top, mid and toe rail to prevent a workers fall.

Temporary work platforms: Temporary work platforms provide a place to work often used in situation where you need to be beside or underneath an object. They can be either scaffolds, trestles, podiums or step ladders.

Work positioning systems: A work positioning system is often used when there is no solid surface to stand on and a worker is suspended at height. A lanyard is attached to both the worker’s harness and their place of work, so that the worker can lean back and have the lanyard support the weight.

Other advice for working at heights: • Have a rescue plan in place and practised before starting work so that everyone on site knows their responsibilities/ actions to take during the rescue of a fallen worker • Always work in teams when carrying out task at heights • Ensure a member of the team includes an individual trained in first aid should an accident occur


SITE SAFETY • Notify WorkSafe NZ if you intend to be working at a height above five metres or will be conducting potentially hazardous work. Call 0800 030 040 or visit www.dol.govt.nz/ tools/hazardouswork to fill in the online form • Site Safe offers a height and harness safety course covering the knowledge, skills and resources workers need to plan and work safely at height. Using approved equipment when working at heights will eliminate, isolate or minimise the risk of falls either at work or at home. Remember it’s not the fall that will hurt you; it’s the landing!

Site Safe NZ Inc is a not for profit, membership based organisation, that promotes a culture of safety in the New Zealand construction and related industries. For more information about Site Safe NZ Inc, our products and services, or to speak to a Safety Advisor, contact us on 0800 SITE SAFE or visit www.sitesafe.org.nz.

What we provide to you: • FASET trained and certified installers • A professional service with the job done right each time

Safety nets and fall bags for residential and commercial builds Fast and effective service at a reasonable price

• Products that are of the highest standards: – Soft landing bags certified to the new PAS 59 2014 standard – Rombull Ronets EN 1263 standard safety nets

Freephone Fall-Pac: 0800 652 8099 www.fall-pac.co.nz

19


BUSINESS Paint by numbers for business by Greg Sheehan

I loved Paint By Numbers when I was a kid. Maybe it was the rules-based approach to art that I loved. I was so careful to paint the right colour into each of the numbered sections – but, oh the pain when I went over the lines. Business is like that – a mixture of art and rules, with lots of lines to cross and an array of different colours to be selected. Over the years I’ve come to believe that there really is a paintby-numbers approach to building great businesses too – businesses that are true works of art. Think Xero. As an aside, check out the book “Re-Imagine” by Tom Peters who outlines a great case for why design is so fundamental to building knock-out economic successes. This book influenced my thinking a long time ago and continues to do so. But I digress. Here, in my view, are the steps to take to paint your masterpiece:

1. Get your head right Set out to win. Hold an awesome attitude in the face of any adversity. Be brutally honest with yourself and others and treat the business as your baby. Work your arse off.

2. U  nderstand that a business is your economic powerhouse

6. Know where you are financially Understand your numbers and share them with a great accountant who helps you to grow. Just ask yourself this question. “Does your accountant look like they know how to grow their own business”? If not then think again about asking them to help you with yours.

7. Grow raving fans Deliver an excellent product at the right price and then stun your customer with unexpected levels of great service.

8. Don’t be afraid to sell Get out there New Zealand. Fill the pipeline and close the sale.

9. Cash is king “Cashflow for Working” and “Cashflow for Growth”! Ensure you know where your cash is coming from and what you will need in the future.

10. Build a great team Tolerate only “A-players”, to quote the late Steve Jobs. Don’t spend thousands (or millions) of dollars building a business to then go and tolerate poor performance. Work with great people and share the success.

11. Get high level help for peanuts

It’s way more fun than Lotto or saving money and it holds the key to financial independence.

Compare the cost of hiring someone to help out around the office with spending half of that on getting some high level help in the areas that most need it. What will give you the better result?

3. Know where you are going

12. Do what you do best

Build a strategic plan. This is where lines are meant to be crossed and where the colour is way, way more important. Be audacious.

4. Get the Business Model right What is your value proposition? Where are your customers? How will you serve them? What revenue streams will you have? Read “Business Model Generation” to help get this right.

5. Have the appropriate entity structures Ensure things are set up tax effectively and can be scaled easily as your business grows. Get some good advice around this stuff. 20

Don’t slog it out year after year doing stuff you hate. That is one of life’s great tragedies. Do what you love and, probably, therefore do best. Get help around the other stuff. The colour choices are all yours.

Greg Sheehan is the CEO of RightWay, a team of chartered accountants/business advisors who are straight-up, super-knowledgeable and 100% behind grassroots Kiwi businesses. For more, go to rightway.co.nz


BE IN

TO WIN

Email your answer to m10trade@mitre10.co.nz with the words ‘May competition’ in the subject line and you’ll go in the draw to win. You must include your photo, your name, company name, physical address, daytime phone number and the name of the store you hold an account with. All entries must be received by 5pm on Monday June 8th, 2015. Conditions of entry:

A MAKITA 18VOLT NI-CAD CORDLESS DRILL/DRIVER

You may enter only once/ Prize(s) are as outlined. Prize(s) are nonrefundable, non-transferrable and not redeemable for cash. The winner(s) will be notified by phone or email. Employees of ReFocus Media Ltd Ltd, Mitre 10 (NZ) Ltd, suppliers of goods to Mitre 10 and their immediate families and agencies are not eligible to enter. By entering this contest, you consent to the use of your name in all matters related to this contest, including any advertising or publicity without further compensation. Results of this promotion will be published in a later issue of Mitre 10 In Trade magazine. Prices that may be quoted in this promotion were accurate recommended retail prices at the time of publication. ReFocus Media Ltd and Mitre 10 (NZ) Ltd accept no responsibility for any loss or damage incurred from the use of these products.

THIS PUBLICATION IS RECOGNISED BY THE BUILDING AND HOUSING GROUP AS CONTRIBUTING TOWARDS THE SKILLS MAINTENANCE REQUIREMENTS FOR THE LICENSED BUILDING PRACTITIONER SCHEME.

Answer the following question and go in the draw to win a Makita 13mm 18v Ni-Cad Drill/Driver worth $249. Question: How many Certified Builders conferences have been held prior to this year’s annual event in Christchurch?

If you are a Licensed Building Practitioner, cut out and safely retain this panel with your skills maintenance literature for future reference and audit confirmation. Ref. In Trade Vol 8, Issue 11 May 2015

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