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Helping Business Succeed Annual Report 2018

K C M Y M1 M2 MY GRAY K C M Y M1 M2 25 75 K C M Y M1 M2 … Reports and... · Helping Business Succeed Annual Report 2018 NZ 0800 300 362 AU 1800 300 362 E [email protected] ema.co.nz

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Page 1: K C M Y M1 M2 MY GRAY K C M Y M1 M2 25 75 K C M Y M1 M2 … Reports and... · Helping Business Succeed Annual Report 2018 NZ 0800 300 362 AU 1800 300 362 E membership@ema.co.nz ema.co.nz

Helping BusinessSucceed Annual Report 2018

NZ 0800 300 362 AU 1800 300 362E [email protected]

ema.co.nz

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KEY 15 KEY 16KEY 14KEY 13KEY 12KEY 11KEY 10KEY 9KEY 8KEY 7KEY 6KEY 5KEY 4KEY 3 KEY 17 KEY 18 KEY 19 KEY 20 KEY 21 KEY 22 KEY 23 KEY 24 KEY 25 KEY 26 KEY 27 KEY 280.5 1 2 3 4 5 0.5 1 2 3 4 5 0.5 1 2 3 4 5 0.5 1 2 3 4 5KOMORI Part No.T35MS640 0.5 1 2 3 4 50.5 1 2 3 4 5

K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2C M Y M1 M2 75 CY MYCM GRAY GRAY GRAY P GRAY50 50 25 75 25 75 50 25 50 K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2 75 CY MYCM GRAY GRAY GRAY P GRAY25 75 50 50 25 75 25 75 50 25 50 K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2 CM GRAY25 75 50 50 25 75 25 75 50 25 50

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Page 2: K C M Y M1 M2 MY GRAY K C M Y M1 M2 25 75 K C M Y M1 M2 … Reports and... · Helping Business Succeed Annual Report 2018 NZ 0800 300 362 AU 1800 300 362 E membership@ema.co.nz ema.co.nz

Contents

03 Key Information

04 President’s Report

05 Board of Directors

06 CEO’s Report

07 Farewell to Kim

08 2018 Highlights

10 Membership

12 Advocacy

15 Export NZ

17 News and views

18 Business Services

Legal Services

Consulting Services

Health and Safety

Business Central

AdviceLine

24 Financials

25 Summary Statement of Financial Position

26 Summary Statement of Comprehensive Revenue and Expenses

27 Summary Statement of Changes in Net Assets / Equity

27 Summary Statement of Cash Flows

28 Notes to the Summary Financial Statements

29 Independent Auditor’s Report

Front cover, pictured from left to right, Hennie Peters from Asaleo and Kayne Franich from EMA.

Annual Report 2018 | 31

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KEY 15 KEY 16KEY 14KEY 13KEY 12KEY 11KEY 10KEY 9KEY 8KEY 7KEY 6KEY 5KEY 4KEY 3 KEY 17 KEY 18 KEY 19 KEY 20 KEY 21 KEY 22 KEY 23 KEY 24 KEY 25 KEY 26 KEY 27 KEY 280.5 1 2 3 4 5 0.5 1 2 3 4 5 0.5 1 2 3 4 5 0.5 1 2 3 4 5KOMORI Part No.T35MS640 0.5 1 2 3 4 50.5 1 2 3 4 5

K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2C M Y M1 M2 75 CY MYCM GRAY GRAY GRAY P GRAY50 50 25 75 25 75 50 25 50 K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2 75 CY MYCM GRAY GRAY GRAY P GRAY25 75 50 50 25 75 25 75 50 25 50 K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2 CM GRAY25 75 50 50 25 75 25 75 50 25 50

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Annual Report 2018 | 3

Key Information

Senior Management TeamKim Campbell, CEO

David Foley, GM Business ServicesAlan McDonald, GM Advocacy

Paul Yeo, Finance and Technology Manager

Professional Service ProvidersFinal accounts prepared by Bellingham Wallace

Financial audit conducted by RSMLegal services provided by Lockhart Legal

Banking services provided by ANZ

EMA is an Incorporated Society, certificate number 221372

EMA Head Office 145 Khyber Pass Rd, Grafton, Auckland, New Zealand

Private Bag 92066, Victoria St West, Auckland 1142, New ZealandT +64 9 367 0900

EMA / ExportNZ Waikato

103 Tristram Street, HamiltonPO Box 490 Waikato Mail Centre, Hamilton 3240

T +64 7 839 2710

ExportNZ Bay of Plenty Smart Business Centre, 65 Chapel Street, Bay Central, Tauranga 3110

PO Box 13202, Tauranga Central, Tauranga 3141T +64 7 571 0600

T 0800 300 362W www.ema.co.nz

Staff and Consultants of EMA are here to help members’ business succeed.

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KEY 15 KEY 16KEY 14KEY 13KEY 12KEY 11KEY 10KEY 9KEY 8KEY 7KEY 6KEY 5KEY 4KEY 3 KEY 17 KEY 18 KEY 19 KEY 20 KEY 21 KEY 22 KEY 23 KEY 24 KEY 25 KEY 26 KEY 27 KEY 280.5 1 2 3 4 5 0.5 1 2 3 4 5 0.5 1 2 3 4 5 0.5 1 2 3 4 5KOMORI Part No.T35MS640 0.5 1 2 3 4 50.5 1 2 3 4 5

K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2C M Y M1 M2 75 CY MYCM GRAY GRAY GRAY P GRAY50 50 25 75 25 75 50 25 50 K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2 75 CY MYCM GRAY GRAY GRAY P GRAY25 75 50 50 25 75 25 75 50 25 50 K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2 CM GRAY25 75 50 50 25 75 25 75 50 25 50

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It has been an exciting and challenging year for the EMA.

The past year has seen the political landscape change significantly. The general election in 2017 delivered a Labour-led coalition Government, a new Prime Minister, and with that a new focus. The EMA team has worked hard to ensure the lines of communication remain open with all political parties.

As with all new regimes, they wish to make their mark, and the proposed sequence of industrial relations legislation changes, spread over several bills, is an obvious area of concern. Despite union rhetoric that it only reverses the (generally very good) changes of the previous government, the reality is vastly different. Individually many of the proposed changes are minor, but collectively they are substantial and turn the clock back decades to a very a different time. The impact on our economy, especially for businesses that have to be globally competitive like exporters, is worrying. That’s why the union-led arguments tend to centre around the more trivial elements in an attempt to ignore the wider view.

The purpose of EMA is to help its members succeed. As the Board, we believe this raft of proposed changes to industrial relations are a serious rewrite of the landscape for business and do nothing to help businesses sustainably improve wages nor productivity. That is why we ran the “Fix the Bill” campaign. We believed we needed to ramp up our efforts from advocacy to activism to ensure the first key piece of legislation in this suite did not pass through unnoticed.

I am very proud of our organisation for making this campaign work. Our EMA team was instrumental in pulling the campaign together, and ensuring it was able to be run nationwide across the BusinessNZ network. It certainly elevated the public and political pressure required to make Government consider the unintended consequences of their path. In short, their efforts highlighted the concerns and made it part of the national conversation. It’s the biggest campaign we have run in years, and the feedback was deeply encouraging.

The EMA is a member organisation and every conversation rightly revolves around member needs. This was a clear example of us standing up for our members. But advocacy is just one of the services we deliver and we continue to look over every aspect of our association to make sure we always remain ‘the’ outstanding business association, and we will continue to play an active role in helping businesses succeed in all areas.

Message from the President

That is why it is rewarding to be President of the EMA during this time. Business will always have challenges to address, and I thoroughly enjoy providing governance to the organisation.

Amidst this, we have sadly accepted the resignation of Kim Campbell, who has been leading the organisation for the past seven years. He has lead the organisation through a significant period of change.

He has always been an outstanding advocate for business, the needs of business and a tireless champion for the role EMA has to play in this. He has done a stunning job in leading the organisation and leaves the EMA in great shape.

On the surface, his legacy is the development of our award-winning centre on Khyber Pass. But much more importantly he has also rebuilt the organisation making it modern and forward looking with a great culture and attitude.

On behalf of the Board, I wish Kim all the best, and on a personal note, I will miss his joie de vivre, and certainly wish him well in the next stage of his career.

We are well underway with our recruitment process to hire a new CEO and will make further announcements in due course.

We have delivered a surplus of $172,381 from a gross income of $17.318 million with expenditure of $17.145 million.

I would like to acknowledge and thank my fellow board members for their service and input into the governance of the EMA. We’re also well-served by the many members that continue to share their views and experiences with us, both through our various forums and informally. We invite members to actively engage with us through attending and sharing their views at our employers forum, our manufacturers forum, our export events, our policy forum and so forth.

Andrew Hunt President

Annual Report 2018 | 29

Independent Auditor’s

RSM Hayes AuditAuckland

To the Members of Employers and Manufacturers Association (Northern) Incorporated

Opinion The accompanying summary financial statements on pages 25 to 28, which comprise the summary statement of financial position as at 30 June 2018, the summary statement of comprehensive revenue and expenses, summary statement of changes in net assets/equity and summary statement of cash flows for the year then ended, and related notes, are derived from the audited financial statements of Employers & Manufacturers Association (Northern) Incorporated for the year ended 30 June 2018.

In our opinion, the accompanying summary financial statements are consistent, in all material respects, with the audited financial statements, in accordance with PBE FRS 43: Summary Financial Statements issued by the New Zealand Accounting Standards Board.

Summary Financial Statements The summary financial statements do not contain all the disclosures required for full financial statements under Public Benefit Entity Standards Reduced Disclosure Regime. Reading the summary financial statements, therefore, is not a substitute for reading the audited financial statements of Employers & Manufacturers Association (Northern) Incorporated. Those financial statements, and the summary financial statements, do not reflect the effects of events that occurred subsequent to the date of our report on those financial statements.

The Audited Financial Statements and Our Report Thereon We expressed an unmodified audit opinion on the audited financial statements in our report dated 23 October 2018.

Other information The Association is responsible for the other information. The other information comprises the Annual Report on pages 2 to 24 (but does not include the summary financial statements and our auditor’s report thereon), which we obtained prior to the date of this auditor’s report. Our opinion on the summary financial statements does not cover the other information and we do not express any form of audit opinion or assurance conclusion thereon.

In connection with our audit of the summary financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Directors’ Responsibility for the Summary Financial Statements The Board of Directors are responsible for the preparation of these summary financial statements in accordance with PBE FRS 43: Summary Financial Statements.

Auditor’s Responsibility Our responsibility is to express an opinion on the summary financial statements based on our procedures, which were conducted in accordance with International Standard on Auditing (New Zealand) (ISA (NZ)) (ISA (NZ))810 (Revised): Engagements to Report on Summary Financial Statements.

We are ordinary members of the Employers & Manufacturers Association (Northern) Incorporated and trade with it on standard membership terms. We have no governing body or management roles or influence. Other than this and in our capacity as auditor, we have no relationship with, or interests in, Employers & Manufacturers Association (Northern) Incorporated.

2 November 2018

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KEY 15 KEY 16KEY 14KEY 13KEY 12KEY 11KEY 10KEY 9KEY 8KEY 7KEY 6KEY 5KEY 4KEY 3 KEY 17 KEY 18 KEY 19 KEY 20 KEY 21 KEY 22 KEY 23 KEY 24 KEY 25 KEY 26 KEY 27 KEY 280.5 1 2 3 4 5 0.5 1 2 3 4 5 0.5 1 2 3 4 5 0.5 1 2 3 4 5KOMORI Part No.T35MS640 0.5 1 2 3 4 50.5 1 2 3 4 5

K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2C M Y M1 M2 75 CY MYCM GRAY GRAY GRAY P GRAY50 50 25 75 25 75 50 25 50 K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2 75 CY MYCM GRAY GRAY GRAY P GRAY25 75 50 50 25 75 25 75 50 25 50 K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2 CM GRAY25 75 50 50 25 75 25 75 50 25 50

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Annual Report 2018 | 7

After leading the EMA since 2011, Kim Campbell announced his resignation in August 2018.

During his tenure he was an outstanding advocate for business and the needs of business.

When announcing Kim’s resignation, EMA President, Andrew Hunt stated Kim had done a sterling job in leading the organisation through significant change in the past seven years and leaves it in great shape going forward.

He said some of the advocacy successes under Kim’s leadership included:

• Being an active participant in the formation of what is now known as Resource Reform NZ, which is leading the charge on the broad consensus to reform our resource management systems

• Leading a coalition to stop the introduction of a car park tax• An active voice in the trade agenda debated

• Championing businesses’ concerns in the raft of employment relations changes currently in the pipeline

In addition, Kim also oversaw the development of EMA’s award-winning business and conference centre which is a visible hub for all members. Plus, he has overseen the responsible management of the organisation’s balance sheet.

Farewell toKim Campbell

» Image court

2018 2017

Revenue from Exchange Transactions $ $

Membership Subscriptions 7,411,672 7,531,239Employment Relations Consultancy, OSH, Legal Services & Publications 3,312,361 2,764,320Training & Conferences 4,661,734 5,705,244Other 1,929,363 2,010,011Revenue from Non-Exchange TransactionsCommission & Dividends Received 2,589 3,066Total Revenue 17,317,349 18,013,880

ExpensesContractors’ Expenses 2,005,962 1,939,357Training & Conferences Delivery Expenses 2,405,446 2,806,665Business NZ Levy 871,797 871,797Employment 7,550,999 6,944,646Other Expenses 4,311,165 4,509,087Total Expenses 17,145,369 17,071,552

Net Profit from Continuing Operations 172,381 942,328

Finance Costs/IncomeFinance Income (2,750) (34,534)Finance Costs 61,316 81,661Net Finance Costs / (Income) 58,566 47,127

Other Revenue & ExpensesGain on Fair Value of Investment Properties 72,926 515,000Impairment Expense (643,221) (1,605,839)Equity Accounted Profit (Loss) from Business NZ (15,185) 8,940Net Surplus for Other Revenue & Expenses (585,480) (1,081,899)

Taxation - -Net Surplus for the year (471,665) (186,698)Other Comprehensive Revenue & Expenses 106,036 4,998,994Total Comprehensive Revenue & Expenses for the year (365,630) 4,812,296

Summary Statement of Comprehensive Revenue and ExpensesFor the year ended 30 June 2018

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KEY 15 KEY 16KEY 14KEY 13KEY 12KEY 11KEY 10KEY 9KEY 8KEY 7KEY 6KEY 5KEY 4KEY 3 KEY 17 KEY 18 KEY 19 KEY 20 KEY 21 KEY 22 KEY 23 KEY 24 KEY 25 KEY 26 KEY 27 KEY 280.5 1 2 3 4 5 0.5 1 2 3 4 5 0.5 1 2 3 4 5 0.5 1 2 3 4 5KOMORI Part No.T35MS640 0.5 1 2 3 4 50.5 1 2 3 4 5

K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2C M Y M1 M2 75 CY MYCM GRAY GRAY GRAY P GRAY50 50 25 75 25 75 50 25 50 K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2 75 CY MYCM GRAY GRAY GRAY P GRAY25 75 50 50 25 75 25 75 50 25 50 K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2 CM GRAY25 75 50 50 25 75 25 75 50 25 50

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The past year has seen many developments for the EMA. We have had a change of Government, we’ve completed the extension of our onsite carpark facility, we have continued to deliver outstanding services to members and on a personal note I have resigned from my role.

Since I took over the role as CEO in 2011, the organisation has had highs and lows, but through it all the name of EMA has been synonymous with helping business succeed.

We have had to travel our own journey in the past seven years. This has involved significant internal change, working to keep abreast of members’ needs, maintaining relevancy in a changing market and on behalf of enterprises being the honest broker on public policy.

However, I am proud to leave the organisation in a sound state for whoever the next CEO will be.

Change is a necessary part of the business cycle. If we do not refine or enhance our systems, processes and operating models, we will be left behind. That also means bringing in fresh views and ideas.

This is one of the major challenges facing New Zealand businesses. There are global trends at play that business ignores at its own peril. The revolution called Industry 4.0 which incorporates the gamut of new technologies that are here today and making an impact will only exacerbate our need to embrace change.

There are global demographic trends at play too. On the one hand, population growth is being seen in India, Africa and South America, yet the rest of the developed world is experiencing a marked decline resulting in an ageing population. This will impact business, both in terms of demands for products and services and also a rethink on the traditional education and workforce planning models.

The team at EMA is already deeply immersed in these work-streams, whether that’s through our advocacy efforts or providing members with practical advice through our advisory services, training, conferencing and networking events.

With a new Government has come a new policy agenda. It is good to see movement in areas we have identified as critical to taking New Zealand forward, such as managing the pipeline of infrastructure needs, an acknowledgement that our resource management system needs reform beyond simple amendments to key Acts and progress on simplifying the Holidays Act.

We have also moved from advocacy to activism on the industrial relations reform agenda. While we agree with the Government’s intention to have an employment framework that enables higher wages and a high performing economy, we remain unconvinced the approach taken will achieve this.

Our high profile Fix the Bill campaign took our usual advocacy efforts to the next level to question Government how the proposed industrial relations changes would deliver to their stated aim. As members’ representative in this debate, we felt this was crucial. The resulting action taken by businesses to actively voice their concerns, in both a formal and informal manner, spoke to the deep vein of discontent this tapped in the business psyche.

In the coming year, this will play out and we shall see if the changes made to the employment framework do help build a fairer economy for all.

I would like to thank the talented team of staff at the EMA for their hard work throughout the past year. Likewise, I thank the teams at BusinessNZ and the other regional associations who we work with.

To our members, I would like to acknowledge your support over the past year. Members of the EMA are part of an 8500 network of employers and belong to the one of the country’s most pre-eminent business associations.

While this is my farewell, the EMA looks forward to the continued support of its membership and to working with them in the coming year.

Kim Campbell CEO

Message from the CEO

Annual Report 2018 | 27

Retained Earnings Retained Earnings

$ $As at 1 July 2017 26,428,721 As at 1 July 2016 21,616,424Total Comprehensive Income (471,665) Total Comprehensive Income (186,698)At 30 June 2018 25,957,056 At 30 June 2017 21,429,726

Asset Revaluation

Reserve

Asset Revaluation

Reserve

$ $Gain on Revaluation Gain on RevaluationReserve 106,036 Reserve 4,998,994TOTAL MEMBER FUNDS 26,063,091 At 30 June 2017 26,428,721

2018 2017$ $

Net Cash Flows From: Operating Activities 1,498,017 1,295,709 Investing Activities (3,294,682) 106,193 Financing Activities 2,308,748 (3,425,472)Net Increase/(Decrease) In Cash & Cash Equivalents 512,083 (2,023,570)Cash & Cash Equivalents at Beginning of Period 1,376,224 3,399,794Cash & Cash Equivalents At End Of Period 1,888,307 1,376,224

Summary Statement of Changes in Net Assets/Equity

Summary Statement of Cash Flows

For the year ended 30 June 2018

For the year ended 30 June 2018

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KOMORIPart No.T35MS6400.512345 0.512345

KCMYM1M2 KCMYM1M2 KCMYM1M2 KCMYM1M2 KCMYM1M2 KCMYM1M2 KCMYM1M2 KCMYM1M2 CMYM1M275CYMY CMGRAYGRAYGRAYPGRAY 505025752575502550KCMYM1M2 KCMYM1M2 KCMYM1M2 KCMYM1M2 KCMYM1M2 KCMYM1M2 KCMYM1M2 KCMYM1M2 KCMYM1M2 KCMYM1M275CYMY CMGRAYGRAYGRAYPGRAY 2575505025752575502550KCMYM1M2 KCMYM1M2 KCMYM1M2 KCMYM1M2 KCMYM1M2 KCMYM1M2 KCMYM1M2CMGRAY 2575505025752575502550

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Annual Report 2018 | 7

After leading the EMA since 2011, Kim Campbell announced his resignation in August 2018.

During his tenure he was an outstanding advocate for business and the needs of business.

When announcing Kim’s resignation, EMA President, Andrew Hunt stated Kim had done a sterling job in leading the organisation through significant change in the past seven years and leaves it in great shape going forward.

He said some of the advocacy successes under Kim’s leadership included:

• Being an active participant in the formation of what is now known as Resource Reform NZ, which is leading the charge on the broad consensus to reform our resource management systems

• Leading a coalition to stop the introduction of a car park tax• An active voice in the trade agenda debated

• Championing businesses’ concerns in the raft of employment relations changes currently in the pipeline

In addition, Kim also oversaw the development of EMA’s award-winning business and conference centre which is a visible hub for all members. Plus, he has overseen the responsible management of the organisation’s balance sheet.

Farewell toKim Campbell

» Image court

2018 2017

Revenue from Exchange Transactions $ $

Membership Subscriptions 7,411,672 7,531,239Employment Relations Consultancy, OSH, Legal Services & Publications 3,312,361 2,764,320Training & Conferences 4,661,734 5,705,244Other 1,929,363 2,010,011Revenue from Non-Exchange TransactionsCommission & Dividends Received 2,589 3,066Total Revenue 17,317,349 18,013,880

ExpensesContractors’ Expenses 2,005,962 1,939,357Training & Conferences Delivery Expenses 2,405,446 2,806,665Business NZ Levy 871,797 871,797Employment 7,550,999 6,944,646Other Expenses 4,311,165 4,509,087Total Expenses 17,145,369 17,071,552

Net Profit from Continuing Operations 172,381 942,328

Finance Costs/IncomeFinance Income (2,750) (34,534)Finance Costs 61,316 81,661Net Finance Costs / (Income) 58,566 47,127

Other Revenue & ExpensesGain on Fair Value of Investment Properties 72,926 515,000Impairment Expense (643,221) (1,605,839)Equity Accounted Profit (Loss) from Business NZ (15,185) 8,940Net Surplus for Other Revenue & Expenses (585,480) (1,081,899)

Taxation - -Net Surplus for the year (471,665) (186,698)Other Comprehensive Revenue & Expenses 106,036 4,998,994Total Comprehensive Revenue & Expenses for the year (365,630) 4,812,296

Summary Statement of Comprehensive Revenue and ExpensesFor the year ended 30 June 2018

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Annual Report 2018 | 9

1200+

members attended 25 FREE forums and advocacy

briefings

ExportNZ Auckland, Waikato and Bay of Plenty teams

engaged meaningfully with 915 member companies

915

874 courses, conferences and events were delivered by

the Learning team

30,064calls answered by AdviceLine Team

15submissions were made to

central and local government to ensure members’ voices

were injected into the development of public

policy

reduction in carbon footprint

35per cent

10,578 people attended a

course, conference or event organised by the

Learning team

Millions of readers, viewers

and listeners made aware of key business

issues via media commentary

65 score was the overall Net

Promoter Score awarded by course and conference

attendees

85%of members who used EMA Legal services rated them overall as very

good or excellent

7402 Peopleattended briefings

and employment events organised by the

Enterprises team

18%increase in

Tailored Training revenue

11 issues

of BusinessPlus packed with news and commentary to keep members up-to-date

50%Advocacy’s Top 200

engagement programme has touched more than 50% of our

leading members

1214 Peoplepeople chose the webinar

option to “attend” our member briefings

2227 Members

took advantage of EMA Consultancy or

EMA Legal service this year

students graduated with a Youth Employability

Certificate to help them become work ready

35%revenue increase in digital training

formats

125

What a great year it has been.

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The EMA services businesses from Taupo north

16671499

222

Northland

Auckland North & West

Auckland Central

Auckland East & South

Bay of PlentyWaikato

1271

1551

1312

986

Other

Construction

Science and Tech

Healthcare and Social Assistance

Wholesale Trade

Transport, Postal & Warehousing

Top 5 member industries

Membership The cornerstone to EMA’s mission to help business succeed is the 8,500-plus businesses which are members. They come from a diverse range of businesses, across all industry sectors, employer size, location and stage of business lifecycle. This past year EMA welcomed 387 new members. These new members represent 12,527 employees throughout the Bay of Plenty, Waikato, Auckland and Northland.

The EMA membership includes employers in the manufacturing, construction and professional services industries, as well as many members in the wholesale, retail, education and healthcare industries.

Members range from one to two person operations, through to some of New Zealand’s largest businesses competing on the global stage. A significant number of EMA members are small-to-medium enterprises (SMEs), with 42% of EMA members having fewer than 10 staff. More than 70% of EMA members have fewer than 50 staff.

Key highlights for the membership team include:

• visiting more than 280 new members and inducting them into the EMA membership,

• the introduction of a new membership referral programme,

• specific contact with more than 700 member companies,

• and hosting a range of networking events for members.

Our membership promise is to provide practical advice and support at the forefront of today’s business environment. We do this through a range of membership services highlighted throughout the annual report.

Manufacturing

Annual Report 2018 | 23

AdviceLineThe AdviceLine service remains one of the most popular ways members engage with the EMA with the team managing more than 29,000 calls in FY18. Members constantly provide a positive rating for the service.

To enhance the AdviceLine offering, a project to digitize and video the majority of the Employers Guides has been under way throughout the later months of FY18. The project includes members of the AdviceLine Team being videoed as they present on various employment issues and these will eventually be available to the EMA members on the organisation’s website.

The Customer Monitor survey commenced in March 2018 and the AdviceLine team achieved a Net Promoter Score (NPS) of 63 from EMA Members.

Agreements/Recruitment

Discipline/Termiantion

Employee Leave

Performance Management

Union Issues

ACC/OSH

Publications/Website

Membership/Non-Member

General enquiries/Other calls

Legisalation - other

Transfer calls

EMA Learning

RestructuringRestructuringRestructuring

Business Central Services Since late 2014, EMA has been providing Business Central members (based from Taupo through to Nelson) with employment relations advisory services including access to AdviceLine, the consulting and legal services.

Topics AdviceLine has helped with this year

“Every time I ring EMA I get a different person but it doesn’t seem to matter who I get, they

know their stuff!”

“Very knowledgeable crew that are willing to go the extra mile to ensure they are providing

accurate advice!”

“An absolutely invaluable service that no employer should do without, even for those that

think they know it all!”

Images courtesy of Ports of Auckland Ltd

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Annual Report 2018 | 11

“For ABB, we have found EMA’s regular member briefings and weekly employer bulletins enormously helpful in

providing industry insights and keeping us updated on important upcoming changes, such as recent employment

legislation case law.”

Ewan Morris Managing Director, ABB

“Ports of Auckland works closely with EMA on projects which advocate on the future needs of Auckland,

particularly infrastructure to support the city’s rapid growth. One example is a jointly funded study to look

at congestion in the city, its impact on citizens and businesses and possible solutions for the future. This type of work is crucial to helping our city grow and the EMA is a

powerful ally in this regard”.

Tony Gibson CEO, Ports of Auckland Ltd

Images courtesy of Ports of Auckland Ltd

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Advocacy

As the financial year closed the EMA was undertaking its most extensive campaign in recent years as opposition to the new Labour-led coalition government’s Employment Law reforms grew.

With up to 10 new employment legislative changes either made or in the pipeline, the EMA, with support from BusinessNZ and our sister organisations around the country – Business Central, Canterbury Employers’ and Chamber of Commerce and the Otago/Southland Employers Association – took a stand with a nationwide campaign to oppose the Employment relations Amendment Bill.

The Fix the Bill campaign opposed changes forcing businesses into Multiple Employment Collective Agreements (MECAs) and forcing them to accept the outcomes of negotiations on those agreements. The campaign also opposed unlimited union access to the work place and other amendments that potentially enhanced a “them v us” approach to union/employer relations.

The EMA regarded these changes as a step backwards in industrial relations at the very time employers and employees need to be looking forward together to face the multiple changes facing workforces in New Zealand. Skills shortages, staff shortages, automation, technological change, the use of artificial intelligence, the immigration balance for workers and an ageing workforce simply highlight the need for forward looking legislation to accommodate changing work patterns and demands and the need for an agile, skilled and unfettered work force to maintain productivity and international competitiveness.

The national campaign was a continuation of the EMA’s move to a proactive campaign style of advocacy and delivered tangible engagement with and from members.

While concerned about some of the proposed legislative changes on the new Government’s agenda the EMA continues to support and participate in the work going into proposed changes to Pay Equity legislation, the Holidays Act and the ongoing commitment to equal pay.

Our coalition building on required reform of the resource management system has morphed into a new group called Resource Reform NZ featuring Infrastructure NZ, BusinessNZ, Property Council NZ and the Environmental Defence Society. There are encouraging signs from the current Minister around this long process towards reform and our work continues.

Similarly our coalition efforts within the transport and

electricity sectors continue to bring results with our efforts to define the cost of transport congestion in Auckland routinely recognised in all initiatives planned to meet those issues. Our campaign against the Electricity Authority’s dogged pursuit of a flawed Transmission Pricing Model continues to thwart that process and has gained further traction in the ongoing Electricity Pricing Review instigated by the new Government.

There has been significant progress in advocacy for changes to the way New Zealand plans and procures major infrastructure projects and we are deeply involved in planning for managing the impact of technology in the manufacturing sector, through our involvement with Industry 4.0.

We continue to have significant input into policy and discussions around the required focus for industry skills and training, the provision of that training and efforts to balance the immigration flows to assist in meeting skills gaps.

Changes to Health and Safety legislation and its enforcement continue to impact on members and we monitor important cases.

The Working Group paper on the Ageing Workforce, another EMA driven coalition, was also completed and successfully launched.

Looking further ahead in the industrial relations legislative agenda detail on proposed Fair Pay Agreements is yet to emerge. The EMA will also look to outcomes from the Tax Working Group and the Electricity Pricing Review that could significantly impact business as will proposed new emissions legislation and changes to the Overseas Investment Act.

Our now well-established Policy Advisory Group brings members’ views to the table and manages the flow and focus of policy initiatives. To reiterate our work is focused on the core pillars of:

• Coping with the challenge of growth and development, inparticular how this relates to infrastructure development, transport and the resource management system

• Addressing skills development, education and training• Health and safety and all employment law related

matters• Export and trade opportunities for growth

Annual Report 2018 | 21

The conferences’ unit took advantage of difficult market conditions by continuing to develop practical and relevant programmes designed to deliver targeted advice in a condensed period of time. New products focused on delivering core business information and have proven to be extremely profitable.

The conferences team implemented strategies learned at the New York Innovation Festival. In particular, applying the values and outcomes philosophies to programme design. These include key ideas such as creative methodologies and how we diversify our business model. Focus is now on enhancing and expanding the learning journey.

We have a continuous partnership with nib health which is extremely positive. The success of this partnership is nib’s involvement in events such as the annual Health and Safety conference. The conference team works closely with nib to build and integrate nib into the event.

Looking Ahead to 2019The team is looking at several initiatives to enhance EMA’s offering. Some of the features for 2019 are:

• investigation into how to offer half-day programmes nationally via webinars,

• scoping broadcasting events live to delegates in regions,

• to include a new category of online courses that will incorporate EMA produced video content as well as specifically developed interactive video content,

• looking to innovate learning delivery methods including webinars, digital resource hubs and offsite visits to businesses,

• working groups on different portfolios are being constructed to ensure quality, thought leading content is delivered.

206

272

85

50

97

88

12

22

6

2,076

2,645

779

331

551

581

1,227

839

643

Health and Safety

Tailored Solutions

Management

Human Resources & Employment Relations

Digital

Business Productivity

Conferences

Half day tool kits

Networks

Total 838 9,672

Courses HeldPORTFOLIO Number of Attendees

Highlights and Achievements for 2017/18

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Annual Report 2018 | 13

ForumsOur forums are one way we seek to engage with members. The forums are designed to provide engaging speakers to deliver compelling content that encourages debate and interaction with members for the benefit of their businesses. This year employment relations and Industry 4.0 were key themes, with significant numbers turning out for speakers on these topics.

Policy ForumIn Auckland we held the following events:

• Frances Valentine, Mindlab• Tony Gibson, Ports of Auckland • Roger MacDonald, Panuku Development • Phil Twyford, Minister Housing and Urban Development

and Transport • Shane Jones, Minister of Regional Development,

Infrastructure and Forestry• Amy Adams, National MP• Shane Ellison, Auckland TransportIn addition, we also hosted three forums in Hamilton (Dallas Fisher from Montana, Chris Joblin from Tainui Development and Phil Twyford, Minister Housing and Urban Development and Transport respectively) and one in Tauranga (Iain Lees Galloway, Minister Workplace Relations and Safety, Immigration and ACC).

Manufacturing ForumIn Auckland we held the following events:

• Innovating Processes and Products with Nathan Stantiall, Callaghan Innovation and Simon Bickerton, University of Auckland

• Andrew Gill, University of Cambridge • University Site Visit with Professor Xun Xu from the

University of Auckland in Mechanical Engineering• Industry 4.0 report launch with David Parker, Minister

Economic Development, Trade and Export Growth• Siemens and Industry 4.0

Employers ForumIn Auckland we held the following events:

• Workplace Relations with Paul MacKay from BusinessNZ, along with Stephen Haigh and Christopher Noakes both Immigration Advisors

• Paul Goldsmith, as Minister of Tertiary Education, Skills & Employment (prior to 2017 General Election)

• Amy Adams, National MP• Iain Lees-Galloway, Minister Workplace Relations and

Safety, Immigration and ACC• John Edwards, Privacy Commissioner

National MP Paula Bennett speaking at an Employers Forum.

LearningLive chat systems were trialled on multiple conference websites. Results indicated that this would be a useful tool to communicate with members and assist with requests for general information and registration on events and other EMA services. Tidiochat was chosen as the live chat system to implement and now operates on all conference websites.

A review of the online learning system, eQuip, was undertaken in July by key learning stakeholders. Upon the completion of the review, a project for the upgrade and improvement of the online learning platform was implemented. The key outcomes of the upgrade was easier access, navigation and enhanced utilities for students and participants using the system, productivity increases by streamlining some of the key time-consuming backend processes, easier reporting for course managers and administrators and a modern interface and platform to rival the best platforms in the business.

A new contract was signed with the e3 Learning group from Australia that enabled the EMA to deliver the e3 library of courses to members. This partnership also provided access to more than 40 new courses that could be customised for New Zealand businesses. Analysis of the courses was conducted to prioritise the customisation schedule and factor the potential costs in rolling out these new courses.

As part of EMA’s focus on members in becoming digitally capable, new training workshops were developed that provide members and businesses with tangible digital technology tools and resources for their business. These

workshops have been especially beneficial to smaller businesses who do not have extensive IT or digital technology resources to create assets such as mobile apps.

A strategic account management plan for the Waikato and Bay of Plenty was developed to reinforce the customer-centric model in the regions, as well as increase awareness and sales of public and in-house learning programmes to members. Previously, mainly new members were being visited, but this plan now includes existing members and key accounts.

The In-house & Tailored Training team worked with TetraMap International to develop a future sales strategy to help EMA members get more value from this training tool by increasing their team’s performance.

A workshop was held in Melbourne, for those EMA members that are Australian-based and have New Zealand employees to provide training support to assist them in being compliant with New Zealand employment law. Feedback suggested that the learners benefitted from their improved knowledge of New Zealand employment law processes and the risk of personal grievances being raised against them was minimised

A new learner-centered online resource tool was launched. This resource gives the EMA diploma and certificate learners easy access to course materials, additional resources, between-block activities, review questions and practice activities. It also enables learners to track their own progress and provide a forum for sharing ideas and insights.

“Through our membership with EMA, Youthline received a tailored Team Leader training course.  EMA worked side-by-side with

Youthline in creating the training and ensured it was the right fit for our staff.  For our sector which is so focused on supporting people and their needs, it has been invaluable to have a training delivered

that shares this ethos at its heart.”-

Shae Ronald CEO, Youthline Auckland Charitable Trust

Pictured: Julian Barnett and Cathy Aviao. Image courtesy of Youthline Auckland Charitable Trust.

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SubmissionsDuring the past financial year, EMA lodged a number of submissions across a range of issues where it was important to have a business perspective included.

• Transpower- Undertaking an Operational Review of the Transmission Pricing Methodology

• Future Proof Strategy: Planning for Growth (Waikato)• Carbon Submission• Employment Relations Amendment Bill• Employment Relations (Triangular Employment)

Amendment Bill

• Noise Guidance and Education material• Consultation on immigration setting for international

students• Research and Development Tax Incentive for New

Zealand• Auckland Regional Land Transport Plan Submission• Hamilton City 10 Year Plan• Auckland Waste Management and Minimisation Plan

2018• Auckland Council 10 Year Budget

Industry Groups ReportThe EMA continues to engage with members via industry groups. This gains access to industry issues as they affect both the industry group members and the EMA membership.

This work also broadens the engagement with government at differing levels and through wider numbers of government agencies.

This has been particularly evident through engagement with the Ministry for Foreign Affairs and the Ministry for Business, Innovation and Employment around key components within New Zealand free trade agreements such as the China FTA review and in concluding of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

The work has seen representation through the ISO process for Cosmetics and IEC for Electronics standards. Local Standards representation occurs both directly and indirectly where industry groups are represented on a wide range of building materials standards.

Over the past year EMA staff have represented industry groups at two ISO meetings offshore, made eight formal submissions on standards and operated a New Zealand review groups for the Cosmetics ISO standards. Two submissions have also been made on Joint Australian/New Zealand electrical standards based on the IEC standards.

The EMA has held three meetings of the Tomorrows Cargo Logistics Group over the past financial year engaging with border agencies, key stakeholders in the import and export sectors and logistics providers. This group enables direct conversations between government agencies and pan-industry stakeholders on issues and proposals for improvements to the transactional and physical movement of goods in and out of the country.

EMA staff are also engaged with world bodies of the industry associations including taking lead roles in the operation of those bodies.

Annual Report 2018 | 19

Consulting ServicesThe structure of our consultancy offering now reflects our member-centric strategy and a new role was created to oversee the delivery of these services.

This position is responsible for:

• generating business for the current employment relations consultants and EMA Legal,

• managing the employment relations consultants,

• operationalising new consultancy business opportunities such as IT services,

• identifying opportunities for new business development,

• improving revenues and uptake of the Wage and Salary Survey.

From March 2018, a white label IT consultancy service was also made available to members. This offering is positioned as an EMA service but powered by contracted IT businesses that have signed partnership agreements with the EMA. The services available include IT consultancy and an IT health check.

Health and SafetyEMA’s work in the health and safety space is well regarded.

We shape and monitor legislation, and provide members with a comprehensive suite of courses and conferences.

Responsibility of the health and safety consulting work is integrated into Consulting Services, the public training courses are a portfolio within EMA Learning, and the conferences and events are the responsibility of the Conferences team.

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Annual Report 2018 | 15

ExportNZThe ExportNZ team services the needs of exporters in the EMA’s region and has offices based in Tauranga, Hamilton and Auckland. They deliver a comprehensive regional programme for exporters based on the core role of ExportNZ which is about exporters helping exporters export more.

About 25% of EMA’s member companies are classified as exporters and in the past year the regional ExportNZ team delivered 68 networking and capability-building events for this sector. They also led a business mission to Viet Nam and Thailand along with organising two highly successful export award events to celebrate the achievements of local exporters.

The ExportNZ team has quality relationships with individuals within member companies who are actively engaged in market development opportunities around the world. These exporters have a genuine interest in seeing New Zealand’s small to medium enterprises (SMEs) and the wider economy prosper. Through this engagement the ExportNZ team can deliver to their aim of helping exporters succeed.

One example of this is the development of the Excelerate100 programme. This was launched in August

2017 in Auckland as a pilot. The aim is to help emerging export businesses take their business to the next level through a co-ordinated programme.

The Excelerate100 programme provides businesses with global growth aspirations the opportunity to engage with smart people at the top of their export game. Excelerate100 provides experienced exporters (“Excelerators”) the opportunity to engage directly with an early stage export business in a meaningful way by sharing their knowledge, expertise, and connections to succeed on the world stage.

The Excelerators are passionate about giving back to business on a volunteer basis - and sharing their vast networks and knowledge to help ambitious and motivated businesses to succeed. The Excelerators assigned to a participating business over a 12-month period are carefully matched to the requirements of that business.

Initial feedback on the programme has been positive and it is being rolled out into the Waikato region in the coming year.

The Haka Educational Tours team celebrate winning the Emerging Services category in the Auckland and Waikato ExportNZ Awards.

BusinessServices

Legal ServicesTowards the end of the financial year, EMA’s legal team experienced substantial growth in demand for its services which resulted in its highest revenue billing month since September 2016.

The team is made up of specialist employment lawyers who provide advice and representation for members-only.

Since August 2017 the team has been headed up by Matthew Dearing as Managing Solicitor. He has implemented several initiatives to revitalise the team’s offering.

This included upgrading a drug and alcohol package for members to make it easy for them to follow due process when initiating such a programme for their workplace. This went to market in October 2017.

Over the past year, the legal team has worked more closely with EMA’s employment relations consultants to provide opinions on tricky matters and legal templates that in turn were used to help members.

A significant amount of new employment legislation is in the pipeline. This has meant the legal and advocacy teams have worked collaboratively in developing submissions, developing ways to explain the proposed changes to members (such as roadshows and regular member briefings) and appearing before the relevant select committee.

The member briefings continue to be a great opportunity for the legal team to build their profile with members, while providing valuable updates on new legislation and case law.

While the core group of lawyers are based in Auckland, EMA is conscious of building its offering in Waikato and the Bay of Plenty to better serve the needs of members. Currently, Julie Hardaker (former Mayor of Hamilton) and experienced employment law specialist acts as Special Counsel for EMA’s Waikato members. Beverly Edwards, who is based in Tauranga, is building the legal offering for Bay of Plenty members.

As reported last year, a new EMA Business Services division was created with a mandate to focus on ‘member centric’ activities. This mandate stimulated a series of quality improvement strategies focussed on ensuring new and reinvigorated products and services were investigated and, where appropriate, were implemented that would be valued by members with their needs and requirements at the fore.

“GO Rentals uses EMA Legal for advice on a vast range of employment issues. Their prompt, practical advice

can be easily applied to our workplace. Fantastic service.”

Helen Osborne Human Resources Manager, GO Rentals

Pictured from left to right: Helen Osborne, Gemma Wells and Vicky Ulberg.Image courtesy of GO Rentals

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“As a member of the EMA we’ve sent a number of LIC employees on masterclasses, webinars and events

organised by the ExportNZ team in the Waikato. We’ve found these really engaging and the export

team is great at finding relevant topics and interesting speakers. We have certainly used insights from their

events to help us improve the way we work in New Zealand and overseas.”

Trina Dunning International Manager, LIC

Image courtesy of LIC

Annual Report 2018 | 17

Image courtesy of LIC

We are members’ biggest advocate. One of EMA’s aims is to help raise business’ concerns, challenges and guide decision-makers to provide a framework business can operate within.

EMA is frequently approached by media to “give the view of business” on topics of the day. Over the past year EMA has promoted the cause of business to millions of viewers, listeners or readers. We also look to drive and lead conversations in the media that come from our members and further the key areas we work on.

In the past year the key issues we have been vocal on include:

• The proposed changes to the industrial relations landscape which includes a raft of legislative reform, from reducing the scope of the 90-day trial period through to the long-awaited introduction of pay equity legislation,

• A particular focus on the needs of Auckland in relation to transport and decongestion,

News and views

• The need to address New Zealand’s infrastructure deficit to enable business productivity,

• Why New Zealand business needs to start thinking about the changing demographics of the country’s ageing population,

• The ongoing skills shortage is a continual frustration for business,

• And, the how vital the export and trade agenda is for New Zealand.

We actively share our news and views through our range of member communications. The aim is to help members’ business succeed by providing a selection of business-related commentary through the monthly magazine BusinessPlus, or bring members more timely news in the fortnightly electronic newsletter e-report. For specific interest groups there are regular electronic publications around exporting and employment law which keep members informed of the latest updates and provide practical advice and support for business.

At our heart we are a service organisation that aims to help business succeed. One crucial way we do this is to ensure the voice of our members is part of the public debate on matters which impact business the most.

Pictured from left to right, Larry Williams from NewstalkZB and Kim Campbell.

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K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2C M Y M1 M2 75 CY MYCM GRAY GRAY GRAY P GRAY50 50 25 75 25 75 50 25 50 K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2 75 CY MYCM GRAY GRAY GRAY P GRAY25 75 50 50 25 75 25 75 50 25 50 K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2 CM GRAY25 75 50 50 25 75 25 75 50 25 50

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“As a member of the EMA we’ve sent a number of LIC employees on masterclasses, webinars and events

organised by the ExportNZ team in the Waikato. We’ve found these really engaging and the export

team is great at finding relevant topics and interesting speakers. We have certainly used insights from their

events to help us improve the way we work in New Zealand and overseas.”

Trina Dunning International Manager, LIC

Image courtesy of LIC

Annual Report 2018 | 17

Image courtesy of LIC

We are members’ biggest advocate. One of EMA’s aims is to help raise business’ concerns, challenges and guide decision-makers to provide a framework business can operate within.

EMA is frequently approached by media to “give the view of business” on topics of the day. Over the past year EMA has promoted the cause of business to millions of viewers, listeners or readers. We also look to drive and lead conversations in the media that come from our members and further the key areas we work on.

In the past year the key issues we have been vocal on include:

• The proposed changes to the industrial relations landscape which includes a raft of legislative reform, from reducing the scope of the 90-day trial period through to the long-awaited introduction of pay equity legislation,

• A particular focus on the needs of Auckland in relation to transport and decongestion,

News and views

• The need to address New Zealand’s infrastructure deficit to enable business productivity,

• Why New Zealand business needs to start thinking about the changing demographics of the country’s ageing population,

• The ongoing skills shortage is a continual frustration for business,

• And, the how vital the export and trade agenda is for New Zealand.

We actively share our news and views through our range of member communications. The aim is to help members’ business succeed by providing a selection of business-related commentary through the monthly magazine BusinessPlus, or bring members more timely news in the fortnightly electronic newsletter e-report. For specific interest groups there are regular electronic publications around exporting and employment law which keep members informed of the latest updates and provide practical advice and support for business.

At our heart we are a service organisation that aims to help business succeed. One crucial way we do this is to ensure the voice of our members is part of the public debate on matters which impact business the most.

Pictured from left to right, Larry Williams from NewstalkZB and Kim Campbell.

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K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2C M Y M1 M2 75 CY MYCM GRAY GRAY GRAY P GRAY50 50 25 75 25 75 50 25 50 K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2 75 CY MYCM GRAY GRAY GRAY P GRAY25 75 50 50 25 75 25 75 50 25 50 K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2 CM GRAY25 75 50 50 25 75 25 75 50 25 50

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Annual Report 2018 | 15

ExportNZThe ExportNZ team services the needs of exporters in the EMA’s region and has offices based in Tauranga, Hamilton and Auckland. They deliver a comprehensive regional programme for exporters based on the core role of ExportNZ which is about exporters helping exporters export more.

About 25% of EMA’s member companies are classified as exporters and in the past year the regional ExportNZ team delivered 68 networking and capability-building events for this sector. They also led a business mission to Viet Nam and Thailand along with organising two highly successful export award events to celebrate the achievements of local exporters.

The ExportNZ team has quality relationships with individuals within member companies who are actively engaged in market development opportunities around the world. These exporters have a genuine interest in seeing New Zealand’s small to medium enterprises (SMEs) and the wider economy prosper. Through this engagement the ExportNZ team can deliver to their aim of helping exporters succeed.

One example of this is the development of the Excelerate100 programme. This was launched in August

2017 in Auckland as a pilot. The aim is to help emerging export businesses take their business to the next level through a co-ordinated programme.

The Excelerate100 programme provides businesses with global growth aspirations the opportunity to engage with smart people at the top of their export game. Excelerate100 provides experienced exporters (“Excelerators”) the opportunity to engage directly with an early stage export business in a meaningful way by sharing their knowledge, expertise, and connections to succeed on the world stage.

The Excelerators are passionate about giving back to business on a volunteer basis - and sharing their vast networks and knowledge to help ambitious and motivated businesses to succeed. The Excelerators assigned to a participating business over a 12-month period are carefully matched to the requirements of that business.

Initial feedback on the programme has been positive and it is being rolled out into the Waikato region in the coming year.

The Haka Educational Tours team celebrate winning the Emerging Services category in the Auckland and Waikato ExportNZ Awards.

BusinessServices

Legal ServicesTowards the end of the financial year, EMA’s legal team experienced substantial growth in demand for its services which resulted in its highest revenue billing month since September 2016.

The team is made up of specialist employment lawyers who provide advice and representation for members-only.

Since August 2017 the team has been headed up by Matthew Dearing as Managing Solicitor. He has implemented several initiatives to revitalise the team’s offering.

This included upgrading a drug and alcohol package for members to make it easy for them to follow due process when initiating such a programme for their workplace. This went to market in October 2017.

Over the past year, the legal team has worked more closely with EMA’s employment relations consultants to provide opinions on tricky matters and legal templates that in turn were used to help members.

A significant amount of new employment legislation is in the pipeline. This has meant the legal and advocacy teams have worked collaboratively in developing submissions, developing ways to explain the proposed changes to members (such as roadshows and regular member briefings) and appearing before the relevant select committee.

The member briefings continue to be a great opportunity for the legal team to build their profile with members, while providing valuable updates on new legislation and case law.

While the core group of lawyers are based in Auckland, EMA is conscious of building its offering in Waikato and the Bay of Plenty to better serve the needs of members. Currently, Julie Hardaker (former Mayor of Hamilton) and experienced employment law specialist acts as Special Counsel for EMA’s Waikato members. Beverly Edwards, who is based in Tauranga, is building the legal offering for Bay of Plenty members.

As reported last year, a new EMA Business Services division was created with a mandate to focus on ‘member centric’ activities. This mandate stimulated a series of quality improvement strategies focussed on ensuring new and reinvigorated products and services were investigated and, where appropriate, were implemented that would be valued by members with their needs and requirements at the fore.

“GO Rentals uses EMA Legal for advice on a vast range of employment issues. Their prompt, practical advice

can be easily applied to our workplace. Fantastic service.”

Helen Osborne Human Resources Manager, GO Rentals

Pictured from left to right: Helen Osborne, Gemma Wells and Vicky Ulberg.Image courtesy of GO Rentals

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K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2C M Y M1 M2 75 CY MYCM GRAY GRAY GRAY P GRAY50 50 25 75 25 75 50 25 50 K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2 75 CY MYCM GRAY GRAY GRAY P GRAY25 75 50 50 25 75 25 75 50 25 50 K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2 CM GRAY25 75 50 50 25 75 25 75 50 25 50

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SubmissionsDuring the past financial year, EMA lodged a number of submissions across a range of issues where it was important to have a business perspective included.

• Transpower- Undertaking an Operational Review of the Transmission Pricing Methodology

• Future Proof Strategy: Planning for Growth (Waikato)• Carbon Submission• Employment Relations Amendment Bill• Employment Relations (Triangular Employment)

Amendment Bill

• Noise Guidance and Education material• Consultation on immigration setting for international

students• Research and Development Tax Incentive for New

Zealand• Auckland Regional Land Transport Plan Submission• Hamilton City 10 Year Plan• Auckland Waste Management and Minimisation Plan

2018• Auckland Council 10 Year Budget

Industry Groups ReportThe EMA continues to engage with members via industry groups. This gains access to industry issues as they affect both the industry group members and the EMA membership.

This work also broadens the engagement with government at differing levels and through wider numbers of government agencies.

This has been particularly evident through engagement with the Ministry for Foreign Affairs and the Ministry for Business, Innovation and Employment around key components within New Zealand free trade agreements such as the China FTA review and in concluding of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

The work has seen representation through the ISO process for Cosmetics and IEC for Electronics standards. Local Standards representation occurs both directly and indirectly where industry groups are represented on a wide range of building materials standards.

Over the past year EMA staff have represented industry groups at two ISO meetings offshore, made eight formal submissions on standards and operated a New Zealand review groups for the Cosmetics ISO standards. Two submissions have also been made on Joint Australian/New Zealand electrical standards based on the IEC standards.

The EMA has held three meetings of the Tomorrows Cargo Logistics Group over the past financial year engaging with border agencies, key stakeholders in the import and export sectors and logistics providers. This group enables direct conversations between government agencies and pan-industry stakeholders on issues and proposals for improvements to the transactional and physical movement of goods in and out of the country.

EMA staff are also engaged with world bodies of the industry associations including taking lead roles in the operation of those bodies.

Annual Report 2018 | 19

Consulting ServicesThe structure of our consultancy offering now reflects our member-centric strategy and a new role was created to oversee the delivery of these services.

This position is responsible for:

• generating business for the current employment relations consultants and EMA Legal,

• managing the employment relations consultants,

• operationalising new consultancy business opportunities such as IT services,

• identifying opportunities for new business development,

• improving revenues and uptake of the Wage and Salary Survey.

From March 2018, a white label IT consultancy service was also made available to members. This offering is positioned as an EMA service but powered by contracted IT businesses that have signed partnership agreements with the EMA. The services available include IT consultancy and an IT health check.

Health and SafetyEMA’s work in the health and safety space is well regarded.

We shape and monitor legislation, and provide members with a comprehensive suite of courses and conferences.

Responsibility of the health and safety consulting work is integrated into Consulting Services, the public training courses are a portfolio within EMA Learning, and the conferences and events are the responsibility of the Conferences team.

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K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2C M Y M1 M2 75 CY MYCM GRAY GRAY GRAY P GRAY50 50 25 75 25 75 50 25 50 K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2 75 CY MYCM GRAY GRAY GRAY P GRAY25 75 50 50 25 75 25 75 50 25 50 K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2 CM GRAY25 75 50 50 25 75 25 75 50 25 50

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Annual Report 2018 | 13

ForumsOur forums are one way we seek to engage with members. The forums are designed to provide engaging speakers to deliver compelling content that encourages debate and interaction with members for the benefit of their businesses. This year employment relations and Industry 4.0 were key themes, with significant numbers turning out for speakers on these topics.

Policy ForumIn Auckland we held the following events:

• Frances Valentine, Mindlab• Tony Gibson, Ports of Auckland • Roger MacDonald, Panuku Development • Phil Twyford, Minister Housing and Urban Development

and Transport • Shane Jones, Minister of Regional Development,

Infrastructure and Forestry• Amy Adams, National MP• Shane Ellison, Auckland TransportIn addition, we also hosted three forums in Hamilton (Dallas Fisher from Montana, Chris Joblin from Tainui Development and Phil Twyford, Minister Housing and Urban Development and Transport respectively) and one in Tauranga (Iain Lees Galloway, Minister Workplace Relations and Safety, Immigration and ACC).

Manufacturing ForumIn Auckland we held the following events:

• Innovating Processes and Products with Nathan Stantiall, Callaghan Innovation and Simon Bickerton, University of Auckland

• Andrew Gill, University of Cambridge • University Site Visit with Professor Xun Xu from the

University of Auckland in Mechanical Engineering• Industry 4.0 report launch with David Parker, Minister

Economic Development, Trade and Export Growth• Siemens and Industry 4.0

Employers ForumIn Auckland we held the following events:

• Workplace Relations with Paul MacKay from BusinessNZ, along with Stephen Haigh and Christopher Noakes both Immigration Advisors

• Paul Goldsmith, as Minister of Tertiary Education, Skills & Employment (prior to 2017 General Election)

• Amy Adams, National MP• Iain Lees-Galloway, Minister Workplace Relations and

Safety, Immigration and ACC• John Edwards, Privacy Commissioner

National MP Paula Bennett speaking at an Employers Forum.

LearningLive chat systems were trialled on multiple conference websites. Results indicated that this would be a useful tool to communicate with members and assist with requests for general information and registration on events and other EMA services. Tidiochat was chosen as the live chat system to implement and now operates on all conference websites.

A review of the online learning system, eQuip, was undertaken in July by key learning stakeholders. Upon the completion of the review, a project for the upgrade and improvement of the online learning platform was implemented. The key outcomes of the upgrade was easier access, navigation and enhanced utilities for students and participants using the system, productivity increases by streamlining some of the key time-consuming backend processes, easier reporting for course managers and administrators and a modern interface and platform to rival the best platforms in the business.

A new contract was signed with the e3 Learning group from Australia that enabled the EMA to deliver the e3 library of courses to members. This partnership also provided access to more than 40 new courses that could be customised for New Zealand businesses. Analysis of the courses was conducted to prioritise the customisation schedule and factor the potential costs in rolling out these new courses.

As part of EMA’s focus on members in becoming digitally capable, new training workshops were developed that provide members and businesses with tangible digital technology tools and resources for their business. These

workshops have been especially beneficial to smaller businesses who do not have extensive IT or digital technology resources to create assets such as mobile apps.

A strategic account management plan for the Waikato and Bay of Plenty was developed to reinforce the customer-centric model in the regions, as well as increase awareness and sales of public and in-house learning programmes to members. Previously, mainly new members were being visited, but this plan now includes existing members and key accounts.

The In-house & Tailored Training team worked with TetraMap International to develop a future sales strategy to help EMA members get more value from this training tool by increasing their team’s performance.

A workshop was held in Melbourne, for those EMA members that are Australian-based and have New Zealand employees to provide training support to assist them in being compliant with New Zealand employment law. Feedback suggested that the learners benefitted from their improved knowledge of New Zealand employment law processes and the risk of personal grievances being raised against them was minimised

A new learner-centered online resource tool was launched. This resource gives the EMA diploma and certificate learners easy access to course materials, additional resources, between-block activities, review questions and practice activities. It also enables learners to track their own progress and provide a forum for sharing ideas and insights.

“Through our membership with EMA, Youthline received a tailored Team Leader training course.  EMA worked side-by-side with

Youthline in creating the training and ensured it was the right fit for our staff.  For our sector which is so focused on supporting people and their needs, it has been invaluable to have a training delivered

that shares this ethos at its heart.”-

Shae Ronald CEO, Youthline Auckland Charitable Trust

Pictured: Julian Barnett and Cathy Aviao. Image courtesy of Youthline Auckland Charitable Trust.

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K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2C M Y M1 M2 75 CY MYCM GRAY GRAY GRAY P GRAY50 50 25 75 25 75 50 25 50 K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2 75 CY MYCM GRAY GRAY GRAY P GRAY25 75 50 50 25 75 25 75 50 25 50 K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2 CM GRAY25 75 50 50 25 75 25 75 50 25 50

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Advocacy

As the financial year closed the EMA was undertaking its most extensive campaign in recent years as opposition to the new Labour-led coalition government’s Employment Law reforms grew.

With up to 10 new employment legislative changes either made or in the pipeline, the EMA, with support from BusinessNZ and our sister organisations around the country – Business Central, Canterbury Employers’ and Chamber of Commerce and the Otago/Southland Employers Association – took a stand with a nationwide campaign to oppose the Employment relations Amendment Bill.

The Fix the Bill campaign opposed changes forcing businesses into Multiple Employment Collective Agreements (MECAs) and forcing them to accept the outcomes of negotiations on those agreements. The campaign also opposed unlimited union access to the work place and other amendments that potentially enhanced a “them v us” approach to union/employer relations.

The EMA regarded these changes as a step backwards in industrial relations at the very time employers and employees need to be looking forward together to face the multiple changes facing workforces in New Zealand. Skills shortages, staff shortages, automation, technological change, the use of artificial intelligence, the immigration balance for workers and an ageing workforce simply highlight the need for forward looking legislation to accommodate changing work patterns and demands and the need for an agile, skilled and unfettered work force to maintain productivity and international competitiveness.

The national campaign was a continuation of the EMA’s move to a proactive campaign style of advocacy and delivered tangible engagement with and from members.

While concerned about some of the proposed legislative changes on the new Government’s agenda the EMA continues to support and participate in the work going into proposed changes to Pay Equity legislation, the Holidays Act and the ongoing commitment to equal pay.

Our coalition building on required reform of the resource management system has morphed into a new group called Resource Reform NZ featuring Infrastructure NZ, BusinessNZ, Property Council NZ and the Environmental Defence Society. There are encouraging signs from the current Minister around this long process towards reform and our work continues.

Similarly our coalition efforts within the transport and

electricity sectors continue to bring results with our efforts to define the cost of transport congestion in Auckland routinely recognised in all initiatives planned to meet those issues. Our campaign against the Electricity Authority’s dogged pursuit of a flawed Transmission Pricing Model continues to thwart that process and has gained further traction in the ongoing Electricity Pricing Review instigated by the new Government.

There has been significant progress in advocacy for changes to the way New Zealand plans and procures major infrastructure projects and we are deeply involved in planning for managing the impact of technology in the manufacturing sector, through our involvement with Industry 4.0.

We continue to have significant input into policy and discussions around the required focus for industry skills and training, the provision of that training and efforts to balance the immigration flows to assist in meeting skills gaps.

Changes to Health and Safety legislation and its enforcement continue to impact on members and we monitor important cases.

The Working Group paper on the Ageing Workforce, another EMA driven coalition, was also completed and successfully launched.

Looking further ahead in the industrial relations legislative agenda detail on proposed Fair Pay Agreements is yet to emerge. The EMA will also look to outcomes from the Tax Working Group and the Electricity Pricing Review that could significantly impact business as will proposed new emissions legislation and changes to the Overseas Investment Act.

Our now well-established Policy Advisory Group brings members’ views to the table and manages the flow and focus of policy initiatives. To reiterate our work is focused on the core pillars of:

• Coping with the challenge of growth and development, inparticular how this relates to infrastructure development, transport and the resource management system

• Addressing skills development, education and training• Health and safety and all employment law related

matters• Export and trade opportunities for growth

Annual Report 2018 | 21

The conferences’ unit took advantage of difficult market conditions by continuing to develop practical and relevant programmes designed to deliver targeted advice in a condensed period of time. New products focused on delivering core business information and have proven to be extremely profitable.

The conferences team implemented strategies learned at the New York Innovation Festival. In particular, applying the values and outcomes philosophies to programme design. These include key ideas such as creative methodologies and how we diversify our business model. Focus is now on enhancing and expanding the learning journey.

We have a continuous partnership with nib health which is extremely positive. The success of this partnership is nib’s involvement in events such as the annual Health and Safety conference. The conference team works closely with nib to build and integrate nib into the event.

Looking Ahead to 2019The team is looking at several initiatives to enhance EMA’s offering. Some of the features for 2019 are:

• investigation into how to offer half-day programmes nationally via webinars,

• scoping broadcasting events live to delegates in regions,

• to include a new category of online courses that will incorporate EMA produced video content as well as specifically developed interactive video content,

• looking to innovate learning delivery methods including webinars, digital resource hubs and offsite visits to businesses,

• working groups on different portfolios are being constructed to ensure quality, thought leading content is delivered.

206

272

85

50

97

88

12

22

6

2,076

2,645

779

331

551

581

1,227

839

643

Health and Safety

Tailored Solutions

Management

Human Resources & Employment Relations

Digital

Business Productivity

Conferences

Half day tool kits

Networks

Total 838 9,672

Courses HeldPORTFOLIO Number of Attendees

Highlights and Achievements for 2017/18

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KOMORIPart No.T35MS6400.512345 0.512345

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Annual Report 2018 | 11

“For ABB, we have found EMA’s regular member briefings and weekly employer bulletins enormously helpful in

providing industry insights and keeping us updated on important upcoming changes, such as recent employment

legislation case law.”

Ewan Morris Managing Director, ABB

“Ports of Auckland works closely with EMA on projects which advocate on the future needs of Auckland,

particularly infrastructure to support the city’s rapid growth. One example is a jointly funded study to look

at congestion in the city, its impact on citizens and businesses and possible solutions for the future. This type of work is crucial to helping our city grow and the EMA is a

powerful ally in this regard”.

Tony Gibson CEO, Ports of Auckland Ltd

Images courtesy of Ports of Auckland Ltd

09-Nov-2018

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0.5123450.5123450.5123450.512345KOMORIPart No.T35MS640

0.512345 0.512345

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The EMA services businesses from Taupo north

16671499

222

Northland

Auckland North & West

Auckland Central

Auckland East & South

Bay of PlentyWaikato

1271

1551

1312

986

Other

Construction

Science and Tech

Healthcare and Social Assistance

Wholesale Trade

Transport, Postal & Warehousing

Top 5 member industries

Membership The cornerstone to EMA’s mission to help business succeed is the 8,500-plus businesses which are members. They come from a diverse range of businesses, across all industry sectors, employer size, location and stage of business lifecycle. This past year EMA welcomed 387 new members. These new members represent 12,527 employees throughout the Bay of Plenty, Waikato, Auckland and Northland.

The EMA membership includes employers in the manufacturing, construction and professional services industries, as well as many members in the wholesale, retail, education and healthcare industries.

Members range from one to two person operations, through to some of New Zealand’s largest businesses competing on the global stage. A significant number of EMA members are small-to-medium enterprises (SMEs), with 42% of EMA members having fewer than 10 staff. More than 70% of EMA members have fewer than 50 staff.

Key highlights for the membership team include:

• visiting more than 280 new members and inducting them into the EMA membership,

• the introduction of a new membership referral programme,

• specific contact with more than 700 member companies,

• and hosting a range of networking events for members.

Our membership promise is to provide practical advice and support at the forefront of today’s business environment. We do this through a range of membership services highlighted throughout the annual report.

Manufacturing

Annual Report 2018 | 23

AdviceLineThe AdviceLine service remains one of the most popular ways members engage with the EMA with the team managing more than 29,000 calls in FY18. Members constantly provide a positive rating for the service.

To enhance the AdviceLine offering, a project to digitize and video the majority of the Employers Guides has been under way throughout the later months of FY18. The project includes members of the AdviceLine Team being videoed as they present on various employment issues and these will eventually be available to the EMA members on the organisation’s website.

The Customer Monitor survey commenced in March 2018 and the AdviceLine team achieved a Net Promoter Score (NPS) of 63 from EMA Members.

Agreements/Recruitment

Discipline/Termiantion

Employee Leave

Performance Management

Union Issues

ACC/OSH

Publications/Website

Membership/Non-Member

General enquiries/Other calls

Legisalation - other

Transfer calls

EMA Learning

RestructuringRestructuringRestructuring

Business Central Services Since late 2014, EMA has been providing Business Central members (based from Taupo through to Nelson) with employment relations advisory services including access to AdviceLine, the consulting and legal services.

Topics AdviceLine has helped with this year

“Every time I ring EMA I get a different person but it doesn’t seem to matter who I get, they

know their stuff!”

“Very knowledgeable crew that are willing to go the extra mile to ensure they are providing

accurate advice!”

“An absolutely invaluable service that no employer should do without, even for those that

think they know it all!”

Images courtesy of Ports of Auckland Ltd

09-Nov-2018

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Annual Report 2018 | 9

9672

65 score

87%

838What a great year

it has been.

People attended a course, conference or event organised by

the Learning team

AdviceLine achieved a 65 NPS (net

promoter score) by members

Courses, conferences and events were delivered by

the Learning team

2500+

1 x Excelerate100

Programme

8500+

Businesses asked Government to “Fix the Bill” as a result of

EMA’s efforts to highlight the impact of proposed industrial

relations changes

Launched to help emerging exporters grow

to the next level

Members kept up to date through regular

communications, such as BusinessPlus magazine, e-report, Employers Bulletin

and ExporterLink newsletters

People attended a briefing (in person or via webinar) on key economic, legislative

and employer-related developments during the year

Were held for members on matters relating to

policy, employment and manufacturing

ExportNZ award Programmes to

recognise outstanding exporters 7278

21 forums

Of clients who used EMA’s legal or consultancy services rated it

as very good or excellent

2x

Included here are our 2018 summarised audited financial statements. The full version can be accessed from our website or on request.

We are happy to report EMA earned a net profit from continuing operations of $172,381 for the year, compared to last year’s surplus of $942,328 on a like for like basis.

Gross income for the year from continuing operations was $17.318 million (last year: $18.014 million) with total expenditure of $17.145 million (last year: $17.072 million).

Subscriptions accounted for most of income earning $7.412 million (last year: $7.531 million). Employment Relations, OSH, EMA Legal and the Wage & Salary Survey collectively earned $3.312 million (last year: $2.764 million), Training & Conferences generated $4.662 million (last year: $5.705 million) and Exports generated $644k (last year: $597k). Revenue from delivering services to Business Central members generated $696k (last year: $1.000 million).

Income from investments, primarily interest and property rentals, was $286,758 (last year: $267,422). An increase of 7.2%.

Major expenses were Employment $7.551 million (last year: $6.945 million, a 8.7% increase); Training & Conferences delivery $2.405 million (last year: $2.807 million, a 14.3% decrease); Contractors’ $2.006 million (last year: $1.939 million) and the Business NZ levy $871,797 (last year: $871,797). In total our Information Technology spend this year was $784,643, up from last year of $744,517.

Our capital expenditure for the year was $3.297 million comprising of: Freehold Buildings $2.847 million, Building Improvements $111,160, Office Furniture and Fittings $90,149; Computer Hardware $88,702; Motor Vehicles $126,182; Work in Progress on Information Technology $34,004.

We would like to record our appreciation to the Finance and Audit Committee for their valuable guidance and advice.

Financials

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0.512345 0.512345

KCMYM1M2 KCMYM1M2 KCMYM1M2 KCMYM1M2 KCMYM1M2 KCMYM1M2 KCMYM1M2 KCMYM1M2 CMYM1M275CYMY CMGRAYGRAYGRAYPGRAY 505025752575502550KCMYM1M2 KCMYM1M2 KCMYM1M2 KCMYM1M2 KCMYM1M2 KCMYM1M2 KCMYM1M2 KCMYM1M2 KCMYM1M2 KCMYM1M275CYMY CMGRAYGRAYGRAYPGRAY 2575505025752575502550KCMYM1M2 KCMYM1M2 KCMYM1M2 KCMYM1M2 KCMYM1M2 KCMYM1M2 KCMYM1M2CMGRAY 2575505025752575502550

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1103

Companies engaged EMA’s legal or consultancy

services

9672

Became members of the EMA

93%

387

Of calls to AdviceLine answered within 15 seconds

Submissions were made to local and central

government to ensure members’ voices were

injected into public policy development

2063

586

Emails to [email protected]

What a great year it has been.

$2.4m

12

Revenue was made by EMA’s legal and

consultancy services

Export companies actively sought advice from, or engaged in

an event or activity organised by the ExportNZ Auckland, Waikato

and Bay of Plenty teamsPeople attended a course,

conference or event organised by the Learning team

ExportNZ award Programmes to

recognise outstanding exporters

2x

companies

29,000+Queries managed by the AdviceLine

Annual Report 2018 | 25

2018 2017

Current Assets $ $

Cash & Cash Equivalents 1,888,307 1,376,224Receivables 5,214,293 5,958,209Inventories 22,302 45,175Loan to Related Party 5,000 5,000

7,129,902 7,384,608Non-current AssetsProperty, Plant & Equipment 28,201,172 26,272,522Investment Properties 2,700,000 2,540,000Long term loan to Related Party 5,000 10,000Intangible Assets 74,995 33,747Investment in Business NZ Incorporated 483,411 498,596

31,464,578 29,354,865

Total Assets 38,594,480 36,739,472

Current Liabilities Payables from Exchange Transactions 1,348,785 1,180,793Subscriptions & Fees in Advance 5,787,041 6,073,280Annual Leave Accrual 478,245 445,223GST Payable 857,795 860,680Loan Credit Facility 4,059,523 1,750,775Total Liabilities 12,531,389 10,310,751

Net Assets 26,063,091 26,428,721

Total Equity 26,063,091 26,428,721

For and on behalf of the Board, which authorised the issue of these summary financial statements on 2 November 2018.

Andrew Hunt, President Kim Campbell, CEO

Summary Statement of Financial Position

Pages 25 to 28 are summary financial statements taken from the audited Financial Statements of the Employers & Manufacturers Association (Northern) Inc for the year ended 30 June 2018 which are prepared in compliance with PBE Standards. These individual full financial statements were authorised for issue on 23 October 2018 by the Board of Employers & Manufacturers Association (Northern) Inc and an unmodified audit opinion on those statements was also issued on that date by RSM Hayes Audit. The full financial statements, which have been prepared in accordance with New Zealand Generally Accepted Accounting Practice, are presented in NZ dollars (rounded to the nearest dollar) and contain a statement of compliance with PBE Standards Reduced Disclosure Regime. These summary financial statements cannot be expected to provide a complete understanding as provided by the full financial statements. For full financial statements, please view it on or download it from the Association’s website at www.ema.co.nz [search “Annual Report”]

As at 30 June 2018

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K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2C M Y M1 M2 75 CY MYCM GRAY GRAY GRAY P GRAY50 50 25 75 25 75 50 25 50 K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2 75 CY MYCM GRAY GRAY GRAY P GRAY25 75 50 50 25 75 25 75 50 25 50 K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2 CM GRAY25 75 50 50 25 75 25 75 50 25 50

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Annual Report 2018 | 7

After leading the EMA since 2011, Kim Campbell announced his resignation in August 2018.

During his tenure he was an outstanding advocate for business and the needs of business.

When announcing Kim’s resignation, EMA President, Andrew Hunt stated Kim had done a sterling job in leading the organisation through significant change in the past seven years and leaves it in great shape going forward.

He said some of the advocacy successes under Kim’s leadership included:

• Being an active participant in the formation of what is now known as Resource Reform NZ, which is leading the charge on the broad consensus to reform our resource management systems

• Leading a coalition to stop the introduction of a car park tax• An active voice in the trade agenda debated

• Championing businesses’ concerns in the raft of employment relations changes currently in the pipeline

In addition, Kim also oversaw the development of EMA’s award-winning business and conference centre which is a visible hub for all members. Plus, he has overseen the responsible management of the organisation’s balance sheet.

Farewell toKim Campbell

» Image court

2018 2017

Revenue from Exchange Transactions $ $

Membership Subscriptions 7,411,672 7,531,239Employment Relations Consultancy, OSH, Legal Services & Publications 3,312,361 2,764,320Training & Conferences 4,661,734 5,705,244Other 1,929,363 2,010,011Revenue from Non-Exchange TransactionsCommission & Dividends Received 2,589 3,066Total Revenue 17,317,349 18,013,880

ExpensesContractors’ Expenses 2,005,962 1,939,357Training & Conferences Delivery Expenses 2,405,446 2,806,665Business NZ Levy 871,797 871,797Employment 7,550,999 6,944,646Other Expenses 4,311,165 4,509,087Total Expenses 17,145,369 17,071,552

Net Profit from Continuing Operations 172,381 942,328

Finance Costs/IncomeFinance Income (2,750) (34,534)Finance Costs 61,316 81,661Net Finance Costs / (Income) 58,566 47,127

Other Revenue & ExpensesGain on Fair Value of Investment Properties 72,926 515,000Impairment Expense (643,221) (1,605,839)Equity Accounted Profit (Loss) from Business NZ (15,185) 8,940Net Surplus for Other Revenue & Expenses (585,480) (1,081,899)

Taxation - -Net Surplus for the year (471,665) (186,698)Other Comprehensive Revenue & Expenses 106,036 4,998,994Total Comprehensive Revenue & Expenses for the year (365,630) 4,812,296

Summary Statement of Comprehensive Revenue and ExpensesFor the year ended 30 June 2018

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K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2C M Y M1 M2 75 CY MYCM GRAY GRAY GRAY P GRAY50 50 25 75 25 75 50 25 50 K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2 75 CY MYCM GRAY GRAY GRAY P GRAY25 75 50 50 25 75 25 75 50 25 50 K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2K C M Y M1 M2 CM GRAY25 75 50 50 25 75 25 75 50 25 50

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The past year has seen many developments for the EMA. We have had a change of Government, we’ve completed the extension of our onsite carpark facility, we have continued to deliver outstanding services to members and on a personal note I have resigned from my role.

Since I took over the role as CEO in 2011, the organisation has had highs and lows, but through it all the name of EMA has been synonymous with helping business succeed.

We have had to travel our own journey in the past seven years. This has involved significant internal change, working to keep abreast of members’ needs, maintaining relevancy in a changing market and on behalf of enterprises being the honest broker on public policy.

However, I am proud to leave the organisation in a sound state for whoever the next CEO will be.

Change is a necessary part of the business cycle. If we do not refine or enhance our systems, processes and operating models, we will be left behind. That also means bringing in fresh views and ideas.

This is one of the major challenges facing New Zealand businesses. There are global trends at play that business ignores at its own peril. The revolution called Industry 4.0 which incorporates the gamut of new technologies that are here today and making an impact will only exacerbate our need to embrace change.

There are global demographic trends at play too. On the one hand, population growth is being seen in India, Africa and South America, yet the rest of the developed world is experiencing a marked decline resulting in an ageing population. This will impact business, both in terms of demands for products and services and also a rethink on the traditional education and workforce planning models.

The team at EMA is already deeply immersed in these work-streams, whether that’s through our advocacy efforts or providing members with practical advice through our advisory services, training, conferencing and networking events.

With a new Government has come a new policy agenda. It is good to see movement in areas we have identified as critical to taking New Zealand forward, such as managing the pipeline of infrastructure needs, an acknowledgement that our resource management system needs reform beyond simple amendments to key Acts and progress on simplifying the Holidays Act.

We have also moved from advocacy to activism on the industrial relations reform agenda. While we agree with the Government’s intention to have an employment framework that enables higher wages and a high performing economy, we remain unconvinced the approach taken will achieve this.

Our high profile Fix the Bill campaign took our usual advocacy efforts to the next level to question Government how the proposed industrial relations changes would deliver to their stated aim. As members’ representative in this debate, we felt this was crucial. The resulting action taken by businesses to actively voice their concerns, in both a formal and informal manner, spoke to the deep vein of discontent this tapped in the business psyche.

In the coming year, this will play out and we shall see if the changes made to the employment framework do help build a fairer economy for all.

I would like to thank the talented team of staff at the EMA for their hard work throughout the past year. Likewise, I thank the teams at BusinessNZ and the other regional associations who we work with.

To our members, I would like to acknowledge your support over the past year. Members of the EMA are part of an 8500 network of employers and belong to the one of the country’s most pre-eminent business associations.

While this is my farewell, the EMA looks forward to the continued support of its membership and to working with them in the coming year.

Kim Campbell CEO

Message from the CEO

Annual Report 2018 | 27

Retained Earnings Retained Earnings

$ $As at 1 July 2017 26,428,721 As at 1 July 2016 21,616,424Total Comprehensive Income (471,665) Total Comprehensive Income (186,698)At 30 June 2018 25,957,056 At 30 June 2017 21,429,726

Asset Revaluation

Reserve

Asset Revaluation

Reserve

$ $Gain on Revaluation Gain on RevaluationReserve 106,036 Reserve 4,998,994TOTAL MEMBER FUNDS 26,063,091 At 30 June 2017 26,428,721

2018 2017$ $

Net Cash Flows From: Operating Activities 1,498,017 1,295,709 Investing Activities (3,294,682) 106,193 Financing Activities 2,308,748 (3,425,472)Net Increase/(Decrease) In Cash & Cash Equivalents 512,083 (2,023,570)Cash & Cash Equivalents at Beginning of Period 1,376,224 3,399,794Cash & Cash Equivalents At End Of Period 1,888,307 1,376,224

Summary Statement of Changes in Net Assets/Equity

Summary Statement of Cash Flows

For the year ended 30 June 2018

For the year ended 30 June 2018

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Annual Report 2018 | 5

Board of Directors

Andrew Hunt Kinetics Group

President

Margaret Brown COGITA Holdings

Christian May ASB Bank

Andrew Phipps University of

Auckland

Bindi Norwell REINZ

Jugdis Parbu BDO

Colleen Stairmand

RSM NZ*

David Welsh Iplex Pipelines NZ

Sara Lunam Port of Tauranga

Richard Pearson EnviroWaste

Graham Mountfort

Douglas Pharmaceuticals

Derek Rankin Rankin Treasury

Advisory

Chris DavisRinnai NZ Ltd

Margaret Gracie New Zealand

Steel

David Jack Permark

Industries

As at 30 June 2018

*Colleen Stairmand is the nominated representative of member company RSM NZ. Colleen is not an employee of RSM NZ. RSM NZ is a separate entity to RSM Hayes Audit Limited.

Notes to the Summary Financial Statements

1. Basis of PreparationThe full financial statements from which these summary financial statements are extracted from are compliant with the Public Benefit Entity International Public Sector Accounting Standards Reduced Disclosure Regime (“PBE IPSAS RDR”) and other applicable financial reporting standards as appropriate that have been authorised for use by the External Reporting Board for Not-For-Profit entities. For the purposes of complying with NZ GAAP, the Association is a public benefit not-for-profit entity and is eligible to apply Tier 2 Not-For-Profit PBE IPSAS on the basis that it does not have public accountability and it is not defined as large. Full details of the policies adopted are available in those full financial statements. They are presented in New Zealand dollars.

These summary Financial Statements comply with PBE Standards as they relate to summary financial statements.

2. Change in Accounting Policy and Disclosures

The accounting policies adopted in these financial statements are consistent with those of the previous financial year.

3. Related Party DisclosureTransactions with Related Parties

a) Business New Zealand Incorporated (“BusNZ”) The Association is one of four founding members and has five of its board members appointed to the BusNZ’s twelve-member executive council. Accordingly BusNZ is considered an associate.

The Association pays an annual levy to BusNZ and the sum for this year is fully disclosed in the Statement of Comprehensive Revenue and Expenses.

The balance owed to the Association by BusNZ for employment relations and work-based training and courses as at 30 June 2018, is $0 (2017: $0).

During 2011, the Association provided an interest free loan of $50,000 to BusNZ. The loan has a term of 10 years and is repayable by way of settlement in kind. At 30 June 2018 the balance of this loan was $10,000 (2017: $15,000). $5,000 of the balance is current and $5,000 is non-current.

b) Auckland Agricultural, Pastoral & Industrial Shows

The Association has, through its 1996 merger with the Auckland Manufacturers Association Incorporated (the “AMA”), a 50% representation in the Auckland Agricultural, Pastoral & Industrial Shows board that manages the Auckland Showgrounds. The representation arises out of legal requirements placed on the AMA by the Auckland Agricultural, Pastoral & Industrial Board Act 1972.

c) Terms and conditions of transactions with related parties

Sales to and purchases from related parties are made in arm’s length transactions both at normal market prices and on normal commercial terms.

4. Capital CommitmentsAt balance date there were no capital commitments (2017: nil).

5. ContingenciesThe Association has no contingent liabilities at 30 June 2018 (2017: nil).

6. Revaluation of Freehold Land and Buildings

The Association has revalued Freehold Land and Buildings in the current year. The net impact of revaluation to the statement of comprehensive revenue and expenses for the year ended 30 June 2018 is ($570,295). The resulting gain on revaluation reserve as seen in the statement of financial position as at 30 June 2018 is $106,036. There has been no material change since the date of valuation. The Association will revalue these properties periodically going forward.  The Association believes the revaluation better reflects the non-financial assets of the Association.  Prior to this, the Association valued owner-occupied Land & Buildings at cost less depreciation.

7. Events Subsequent to Balance DateThere were no subsequent events after balance date.

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It has been an exciting and challenging year for the EMA.

The past year has seen the political landscape change significantly. The general election in 2017 delivered a Labour-led coalition Government, a new Prime Minister, and with that a new focus. The EMA team has worked hard to ensure the lines of communication remain open with all political parties.

As with all new regimes, they wish to make their mark, and the proposed sequence of industrial relations legislation changes, spread over several bills, is an obvious area of concern. Despite union rhetoric that it only reverses the (generally very good) changes of the previous government, the reality is vastly different. Individually many of the proposed changes are minor, but collectively they are substantial and turn the clock back decades to a very a different time. The impact on our economy, especially for businesses that have to be globally competitive like exporters, is worrying. That’s why the union-led arguments tend to centre around the more trivial elements in an attempt to ignore the wider view.

The purpose of EMA is to help its members succeed. As the Board, we believe this raft of proposed changes to industrial relations are a serious rewrite of the landscape for business and do nothing to help businesses sustainably improve wages nor productivity. That is why we ran the “Fix the Bill” campaign. We believed we needed to ramp up our efforts from advocacy to activism to ensure the first key piece of legislation in this suite did not pass through unnoticed.

I am very proud of our organisation for making this campaign work. Our EMA team was instrumental in pulling the campaign together, and ensuring it was able to be run nationwide across the BusinessNZ network. It certainly elevated the public and political pressure required to make Government consider the unintended consequences of their path. In short, their efforts highlighted the concerns and made it part of the national conversation. It’s the biggest campaign we have run in years, and the feedback was deeply encouraging.

The EMA is a member organisation and every conversation rightly revolves around member needs. This was a clear example of us standing up for our members. But advocacy is just one of the services we deliver and we continue to look over every aspect of our association to make sure we always remain ‘the’ outstanding business association, and we will continue to play an active role in helping businesses succeed in all areas.

Message from the President

That is why it is rewarding to be President of the EMA during this time. Business will always have challenges to address, and I thoroughly enjoy providing governance to the organisation.

Amidst this, we have sadly accepted the resignation of Kim Campbell, who has been leading the organisation for the past seven years. He has lead the organisation through a significant period of change.

He has always been an outstanding advocate for business, the needs of business and a tireless champion for the role EMA has to play in this. He has done a stunning job in leading the organisation and leaves the EMA in great shape.

On the surface, his legacy is the development of our award-winning centre on Khyber Pass. But much more importantly he has also rebuilt the organisation making it modern and forward looking with a great culture and attitude.

On behalf of the Board, I wish Kim all the best, and on a personal note, I will miss his joie de vivre, and certainly wish him well in the next stage of his career.

We are well underway with our recruitment process to hire a new CEO and will make further announcements in due course.

We have delivered a surplus of $172,381 from a gross income of $17.318 million with expenditure of $17.145 million.

I would like to acknowledge and thank my fellow board members for their service and input into the governance of the EMA. We’re also well-served by the many members that continue to share their views and experiences with us, both through our various forums and informally. We invite members to actively engage with us through attending and sharing their views at our employers forum, our manufacturers forum, our export events, our policy forum and so forth.

Andrew Hunt President

Annual Report 2018 | 29

Independent Auditor’s

RSM Hayes AuditAuckland

To the Members of Employers and Manufacturers Association (Northern) Incorporated

Opinion The accompanying summary financial statements on pages 25 to 28, which comprise the summary statement of financial position as at 30 June 2018, the summary statement of comprehensive revenue and expenses, summary statement of changes in net assets/equity and summary statement of cash flows for the year then ended, and related notes, are derived from the audited financial statements of Employers & Manufacturers Association (Northern) Incorporated for the year ended 30 June 2018.

In our opinion, the accompanying summary financial statements are consistent, in all material respects, with the audited financial statements, in accordance with PBE FRS 43: Summary Financial Statements issued by the New Zealand Accounting Standards Board.

Summary Financial Statements The summary financial statements do not contain all the disclosures required for full financial statements under Public Benefit Entity Standards Reduced Disclosure Regime. Reading the summary financial statements, therefore, is not a substitute for reading the audited financial statements of Employers & Manufacturers Association (Northern) Incorporated. Those financial statements, and the summary financial statements, do not reflect the effects of events that occurred subsequent to the date of our report on those financial statements.

The Audited Financial Statements and Our Report Thereon We expressed an unmodified audit opinion on the audited financial statements in our report dated 23 October 2018.

Other information The Association is responsible for the other information. The other information comprises the Annual Report on pages 2 to 24 (but does not include the summary financial statements and our auditor’s report thereon), which we obtained prior to the date of this auditor’s report. Our opinion on the summary financial statements does not cover the other information and we do not express any form of audit opinion or assurance conclusion thereon.

In connection with our audit of the summary financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Directors’ Responsibility for the Summary Financial Statements The Board of Directors are responsible for the preparation of these summary financial statements in accordance with PBE FRS 43: Summary Financial Statements.

Auditor’s Responsibility Our responsibility is to express an opinion on the summary financial statements based on our procedures, which were conducted in accordance with International Standard on Auditing (New Zealand) (ISA (NZ)) (ISA (NZ))810 (Revised): Engagements to Report on Summary Financial Statements.

We are ordinary members of the Employers & Manufacturers Association (Northern) Incorporated and trade with it on standard membership terms. We have no governing body or management roles or influence. Other than this and in our capacity as auditor, we have no relationship with, or interests in, Employers & Manufacturers Association (Northern) Incorporated.

2 November 2018

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Contents

03 Key Information

04 President’s Report

05 Board of Directors

06 CEO’s Report

07 Farewell to Kim

08 2018 Highlights

10 Membership

12 Advocacy

15 Export NZ

17 News and views

18 Business Services

Legal Services

Consulting Services

Health and Safety

Business Central

AdviceLine

24 Financials

25 Summary Statement of Financial Position

26 Summary Statement of Comprehensive Revenue and Expenses

27 Summary Statement of Changes in Net Assets / Equity

27 Summary Statement of Cash Flows

28 Notes to the Summary Financial Statements

29 Independent Auditor’s Report

Front cover, pictured from left to right, Hennie Peters from Asaleo and Kayne Franich from EMA.

Annual Report 2018 | 31

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Annual Report 2018 | 3

Key Information

Senior Management TeamKim Campbell, CEO

David Foley, GM Business ServicesAlan McDonald, GM Advocacy

Paul Yeo, Finance and Technology Manager

Professional Service ProvidersFinal accounts prepared by Bellingham Wallace

Financial audit conducted by RSMLegal services provided by Lockhart Legal

Banking services provided by ANZ

EMA is an Incorporated Society, certificate number 221372

EMA Head Office 145 Khyber Pass Rd, Grafton, Auckland, New Zealand

Private Bag 92066, Victoria St West, Auckland 1142, New ZealandT +64 9 367 0900

EMA / ExportNZ Waikato

103 Tristram Street, HamiltonPO Box 490 Waikato Mail Centre, Hamilton 3240

T +64 7 839 2710

ExportNZ Bay of Plenty Smart Business Centre, 65 Chapel Street, Bay Central, Tauranga 3110

PO Box 13202, Tauranga Central, Tauranga 3141T +64 7 571 0600

T 0800 300 362W www.ema.co.nz

Staff and Consultants of EMA are here to help members’ business succeed.

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Helping BusinessSucceed Annual Report 2018

NZ 0800 300 362 AU 1800 300 362E [email protected]

ema.co.nz

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