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Thought SEPTEMBER 2017
for Food
Savour The Magazine of the Restaurant Association of New Zealand
A win
for the
hospitality
industry!
Page 10
Strong growth Cultural Medium
complexities rare burgers
for hospitality demand agile on the
The nation’s appetite for eating out
is healthier than ever, with sales thinking menu
expected to top $10 billion by 2018. 13 28
8
SAVOUR — SEPTEMBER 2017 CEO’s Message
Seasonal
update
We move into September with
a full plate, outlining important issues
for the hospitality industry.
We spent the last several months diligently We are also updating the way we
campaigning to argue for a lower salary communicate with you — our members —
threshold to be set for our industry with and will be sending you Savour four times
new immigration change and we are a year. Our communication will be more
pleased that the Government has listened. regular with you via email – two E-news
emails will be sent a month and this will
The lowering of the salary band, which
outline all the important things we think
are partially used to determine skill marisa@restaurantnz.co.nz
you need to know. We are also regularly
levels, will help restaurateurs continue to 09 632 1400
posting on our social media platforms so
have access to the workers needed for restaurantnz.co.nz
be sure you are connected with us across
delivering quality service to customers at
Facebook, Linkedin, Instagram, and Twitter.
reasonable prices.
We have a great line up in store for you
Minister Woodhouse said the new mid-
at this year’s Hospitality Summit 2017
skilled remuneration band recognises the @restaurantnz
in Wellington, which is highlighted in
fact that these workers are filling genuine
the issue. Our Feast by Famous Chefs
skill shortages and are more likely to
event is also rapidly approaching at the
progress with further skills acquisition or
end of September and will be a great
work experience.
event gathering New Zealand’s culinary
Phase Two of consultation will address industry. The Hall of Fame and Good
concerns raised about ANZSCO descriptions Neighbour awards will be awarded at
and the lack of classifications for some Feast, which will be held at the Northern
jobs, which therefore disadvantage Club in Auckland. Both events are great
workers whose occupations are classed opportunities to catch up with old friends
at a lower-level by default. This will and meet new ones, stay informed and,
hopefully bring about positive changes of course, have lots of fun.
for our industry.
In other news, we will be announcing
With the election looming, a number of three new member benefits in the coming
political parties are claiming they will months so be sure to keep an eye out
‘slash’ immigration – including work visas for these.
– which will have a large impact on our
Marisa Bidois
businesses, many of which are already
struggling to find new talent. We have
been working to ensure the leaders of
these parties communicate what they will
be doing so hospitality businesses can good good
operate in a stable environment. We have
outlined what we think parties should be business advice
focusing on in our Business Manifesto,
outlined in this issue.
We have expanded the team here
at the Association and outlined our
new people in this issue. Our newest
addition is Karen Lin, our Marketing and
Communications Manager. She is happy
to assist you with any questions you
might have about marketing in your
own business.
SAVOUR — SEPTEMBER 2017 President’s Message
Past, present, future:
culinary insights
Mike Egan shares the latest in
hospitality trends and looks at how
these will affect our businesses.
1. Which are the current culinary Alcohol consumption is on the decrease.
mainstream trends in the away- This, however, is seen mainly in the
from-home market? reduction of sales of mainstream or
New Zealand has relatively low levels of low-priced products. An increase in
frequency of dining away from home craft beers and cocktail sales offset
compared to other developed nations. any revenue loss.
However, we are seeing a steady increase Mike Egan
4. Take a look into the future: National President
in the number of occasions diners are
Restaurant Association of New Zealand
eating out. This phenomenon grows income
a. What will guests be like and expect
for operators that can provide well priced
from restaurants ten years from now? mike@monsoonpoon.co.nz
dining solutions matched with culinary
expertise in an exciting environment. Guests will have even greater knowledge
of cooking techniques and ingredients
2. How far are these culinary trends than they do now. Our staff will need
even greater levels of product knowledge
shaped by current sociological and
to keep up with the guests’ expectations.
economic developments?
The rise in the number of “allergy” prone 5. How have personal consumption
The buoyant economy here in New
guests mean restaurants will have to patterns changed in the past
Zealand means greater spending power
make sure they have accurate information 10-15 years?
by individuals and families. Coupled with
on all the components of a meal and
the daily necessary analogue antidote Increasing frequency of dining away
will often have to customize menu items
to our digital lives that we all need, our from home has been one of the most
during a service for a guest.
restaurants and cafes are perfectly placed notable changes in the last decade. Eating
to become even more relevant as places out is now not always seen as a treat. With
b. Which cuisines will conquer our
where we can reconnect and recharge. increasing numbers of lower cost but high-
menus in the next decade?
The huge increase in tourists visiting quality offerings, it is often a comparable
all year round also provides consistent We are in the fashion industry to some expense in time and money to eat out
revenue growth. extent, and cuisines can come in and than to grocery shop and then prepare an
out of fashion quite regularly. However, interesting yet healthy meal from scratch.
cuisines like Italian are perennially popular.
3. Which foodstuffs/products are
New cuisines do come out of relative 6. What has changed in beverage
on the rise, and which are on the
obscurity and can excite the market, like menus in recent years? Which
decline? Why? What’s a MUST on
the Nordic and Peruvian trends. These
the menu today that wasn’t there beverages were added, which
have a tipping point driven sometimes just
10 years ago? disappeared?
by one restaurant or chef. I think there will
High quality proteins are seen as a vital The popularity of signature cocktails and
also be trends for certain dishes from a
part of a healthy diet. Females, especially, non-alcoholic drinks help drive increased
cuisine. For example, the Hawaiian dish,
look to have one or two meals a week of beverage sales. Mainstream beer sales
Poke, is popping up on menus and it is a
red meat that is relatively pure. Not just are down, however, increased craft beer
fresh seafood dish that works well with
a whole steak but say a sliced fillet in a sales have more than made up for the lost
the health maintenance trend. At the other
stir fry or a lamb back strap grilled then revenue. Local craft beers are especially
end of the Hawaiian cuisine spectrum is
served in a salad is seen as a must for popular with out-of-town guests as they are
Spam and apart from being a novelty dish
health maintenance. Menus need to have looking for unique tastes from the region.
will not, I hope, become ubiquitous.
more choices to cater for vegetarians or
those with common food intolerances.
2
Health and wellness
have an even greater
influence on food and
beverage purchases
than in the past.
Guests understand a
healthy balanced diet
has a huge impact on
their overall welfare.
7. Different aspects influence look forward to the first supplies. Farming of our daily lives. However, digital plays
customer purchase decisions. Which has helped make them sustainable a big role in how we present ourselves
of the following do you feel have and they also tick the boxes of organic to our customers and has driven down
the greatest impact: health and and local. International craft spirits marketing costs. We also use digital
wellness, buying local, sustainable are becoming the new craft beer, with to seek out ideas and trends to keep
production, clean labels, organic, distilleries popping up everywhere making relevant, though nothing compares to
or humane animal treatment? interesting spirits with local flavours or personally visiting other establishments
using old school techniques not offered to garner inspiration.
Health and wellness have an even greater
by the big players.
influence on food and beverage purchases
than in the past. Guests understand a
11. What do you love most about the
healthy balanced diet has a huge impact
9. Organic, vegetarian, vegan – how food service industry?
on their overall welfare. Organic is often important are these issues? Have This is such an exciting industry to work
too expensive and in limited supply for it to New Zealand menus changed with in. No day is ever the same as we work in
be a mainstay on menus. these three categories in recent an environment that opens its doors every
years? What role do food allergies morning and we never know who or what
Sustainable and humane treatment of and intolerances play in today’s the day will bring. Our customers come
animals have an impact on purchasing. menu development? with their own set of expectations and
Many front-of-house and kitchen teams preconceptions. Some customers have
All these issues have become hugely
are young and are very passionate about never dined with us before and some are
important in our marketplace. Customers
these topics and help encourage change great regulars. Either way, during every
with allergies and intolerances, as well
to practices. service we look to provide an experience
as vegan/vegetarians, can have a major
influence on where a group of customers that will exceed their expectations with the
8. Which ingredients do you expect food, beverage, environment and service.
will dine. If you don’t cater seriously to
to rise in popularity over the next these sectors you could miss out on
5-10 years? Why? The other aspect I love is that the food
business. Menu specifications need to service industry provides a stage where—
Oysters are becoming more and more be very accurate and staff need to have as operators—we can infuse every aspect
popular! They are a true expression full knowledge of all ingredients. Many with our own style and creativity. We not
of terroir, must always be super fresh, customers have high levels of expertise only get to choose the food and beverage
and are often eaten with minimum about ingredients and cooking techniques. offering but we also need to decorate the
preparation. They are seasonal and are
room, dress the staff, choose the music,
eagerly anticipated by customers who 10. Our world is going digital — what look at the plating of each dish, choose
role does technology (front-of-house the glassware for every drink, decide how
and back-of-house, digital ordering, we want to present the exterior of the
etc.) play in restaurants and how do business, and select a marketing style. All
they influence the overall restaurant this creativity is also in constant need of
experience? renewal and refreshing to ensure we stay
We are still an industry whose offering is on brand and relevant to our current and
very analogue, especially in full service potential customers.
restaurants. Paper menus offer a nice
respite from the screens and keyboards
3
Industry
Update
Food. Services,for
Advocating Changes and more
our industry.
4
SAVOUR — SEPTEMBER 2017 Industry Update
Keeping our
industry vibrant
and viable
This year, we have been working closely with
the Government to influence policy on issues like
training, work visas and transaction costs.
The Restaurant Association’s 2017 Business Our efforts are concentrated on the In addition, the Restaurant Association
Manifesto summarises the key issues and following areas: is leading a campaign to provide
challenges for the hospitality industry better visibility of our industry’s tourism
and what we are focused on addressing ISSUE 1 contribution. Where “tourism” is used,
to ensure that our hospitality businesses we would like this to be identified as
remain viable, today and into the future.
The Restaurant Association wants “hospitality and tourism”. Instead of a
better recognition for the significant Minister of Tourism, this should be the
The hospitality industry is a $9 billion per positive impact that hospitality has Minister for Hospitality and Tourism. This
year industry that employs more than on New Zealand’s economy and campaign endeavours to appropriately
120,000 people across 17,000 businesses. the integral part that it plays in the recognise the place that hospitality has in
We are a powerhouse of New Zealand’s tourist experience. overall tourism strategy.
economy yet most hospitality businesses
With almost $10 billion in annual sales and
are small to medium-sized enterprises
annual growth of 8.2 per cent (2016-2017), ISSUE 2
(SME’s) with owner/operators working in
the hospitality industry is a much-talked-
their businesses 24/7. With infinitesimally We are working hard to encourage
about segment of the tourism story. As
fine margins when it comes to managing hospitality as a career pathway
more of our businesses gain recognition
the major costs associated with running a of choice. However, more work is
internationally for their innovation and
hospitality business, making a profit in this needed. The Restaurant Association
expertise, our vibrant hospitality scene is
industry is tough. welcomes the opportunity to work
vital to attracting tourists to New Zealand.
While running a hospitality business is Every single visitor to New Zealand with the Government on initiatives
demanding, our businesses demonstrate consumes our food. Every aspect of New that inspire young New Zealanders to
an unwavering commitment to our Zealand food, from production to tourism, enter our workforce.
communities, in good times and bad. recognises the importance of connecting The hospitality industry is one of the
Perhaps no other industry has deeper with the people who eat our food. However, country’s largest employers. Due to the
community roots. People turn to our we need help to take advantage of burgeoning nature of the service sectors,
businesses each day for sustenance, additional opportunities to promote another 200,000 workers will be needed
support and socialisation, and we give our achievements and the New Zealand across the service industries by 2020,
back to our communities, improving the food experience. with a large number of those needed in
quality of life for those we serve. hospitality. There are increasing concerns
The Restaurant Association want further
we will not be able to adequately staff
The Restaurant Association has canvassed investment in the industry through
the sector unless we change perceptions
members to find common challenges funding initiatives specifically targeted to
and promote hospitality and tourism as
for the hospitality industry. These are hospitality. Investment will help the industry
a viable and fulfilling career. To meet
the issues that we advocate for — to capitalise on opportunities to recognise
employee demand, we need more quality
calling the Government to implement our achievements on a global stage.
training and education initiatives.
policies that encourage our industry’s
continuing success.
$9.7B
annual hospitality
sales for year-ended
March 2017
5
SAVOUR — SEPTEMBER 2017 Industry Update
The Restaurant Association works on ISSUE 3 Almost 20 per cent of the hospitality
a number of initiatives that promote industry’s employees hold work visas,
recruitment and retention in hospitality. The industry currently suffers so a temporary work policy must not
The ProStart programme was created from a labour shortage. We rely work against the needs of a flourishing
in partnership with the Ministry of Social on skilled workers from overseas industry, nor inhibit business growth
Development, and in consultation with the to fill the void. When no suitable and competitiveness.
hospitality industry. ProStart introduces New Zealanders are available,
The Restaurant Association will continue
students to the basics of hospitality. We strategies that ensure migrant
to advocate for more sensible approaches
train beneficiaries over four weeks to workers can continue to be a
to immigration policy that encourage
ready them for work in hospitality, with part of the hospitality mix are employment of New Zealanders first and
a goal of employment upon completion. important for the development foremost, but which recognise the value
Trainee participants gain valuable insight of our vibrant industry. of using migrant workers when there are
into a career in the hospitality industry and
There are currently not enough people to skill shortages.
acquire key skills for entering employment
fill positions in the hospitality or tourism
and further education in our industry. The
programme also assists the Government
industry. With an additional 1.4 million ISSUE 4
visitors expected over the next six years,
to achieve its objective to reduce There is widespread use of card
the demand for workers will increase.
unemployment rates. payments for goods and services
The Association is committed to initiatives received by consumers when dining
Attracting more New Zealanders into
that attract more New Zealanders to out, however, the fees associated
the industry is vital to our future. Further
work in hospitality. However, migrant with accepting these cards are a
investment in platforms like the ProStart
workers are an important part of our
initiative are needed by the Government to significant and increasing cost to
workforce. Immigration policy should
ensure broader reach to those joining, or running a business. The Restaurant
enable the efficient functioning of the
re-joining, the workforce. The Restaurant Association advocates for regulation
labour market and not disadvantage
Association welcomes the opportunity to of New Zealand’s payment system to
hospitality businesses.
work with the Government to implement ensure an efficient and transparent
additional projects. The overall objective system that benefits both consumers
is to encourage hospitality as a career and merchants.
pathway of choice.
6
Almost 20 per cent of the
hospitality industry’s employees
hold work visas, so temporary
work policy must not work
against the needs of a
flourishing industry.
The Restaurant Association welcomed The costs of the current payment system law, health and safety, food safety,
the discussion by the Government in 2016, in New Zealand are not transparent, which immigration law, the sale and supply
and earlier this year, on New Zealand’s limits participants’ ability to make informed of alcohol, financial obligations and
retail payment systems. This discussion choices. The interchange rate is not readily local Government regulations. The
addressed whether consumers and disclosed to merchants, although this Restaurant Association would like to
merchants are benefiting from ongoing forms the basis for merchant rate hikes. see a programme that recognises those
innovation, whether card payment businesses who want to do more than
Internationally, a number of countries have
systems are being used efficiently, and simply be compliant and want to establish
moved to regulate the payments industry
whether consumers and merchants are best practice measures. These businesses
and, as a result, New Zealand merchants
bearing a fair share of the costs. save the Government because they need
pay substantially more to process credit
less intervention from Government bodies
and contactless debit card transactions
to ensure they are “doing the right thing”.
than their counterparts in markets such
as Australia and the UK (on average A survey of Restaurant Association
There has been Australian merchants pay merchant members found that a programme
increased credit service fees of around 0.85%, according
to estimates by COVEC and data from the
that recognises and rewards businesses
that are achieving the highest levels of
and debit card use, Reserve Bank of Australia). compliance would be well supported.
Rewards could come in many different
and declining use The Restaurant Association supports the
forms, including compliance fee discounts,
introduction of interchange regulation
of EFTPOS and cash. and, in particular, a requirement for full
consumer recognition, subsidies or
fast-tracked application approval in
In New Zealand disclosure to bring the level of transparency
certain cases. This programme will
in line with other international jurisdictions.
we are rapidly encourage and raise the bar for New
Zealand business owners.
ISSUE 5
heading towards Whatever outcomes we see as a result
a cashless society. The Restaurant Association contributes
to educating migrant and kiwi business
of the September election, the Restaurant
Association will be strongly advocating
owners to not only be compliant
on the industry’s behalf for strategies
in their business, but to achieve
that address the needs of our flourishing
Over the past several years, New Zealand best practice targets. Businesses
industry, and promote economic and
has seen a significant change to the way that are excelling in all areas of
business growth.
consumers make their purchases. There business management should receive
has been increased credit and debit card recognition for this achievement.
use, and declining use of EFTPOS and cash. The Restaurant Association supports
In New Zealand we are rapidly heading the foundation of a programme to
towards a cashless society. This is leading measure best business practice and
to increased costs for merchants and, reward those who have achieved
as credit and contactless debit card use these distinguished levels.
increases, it is likely we will see merchant There are a number of mechanisms
service fees rise even further. already in place to measure compliance
with New Zealand law. In hospitality, this
includes compliance with employment
7
SAVOUR — SEPTEMBER 2017 Industry Update
Strong growth
for hospitality
According to our latest Foodservice Facts, the nation’s
appetite for eating out is healthier than ever, with sales
expected to top $10 billion by 2018.
By any measure, our sector is performing Breaking it down – what’s being The region is benefiting from ongoing
very well. New Zealanders are spending spent where? strength in horticulture, growing tourist
more each year at restaurants, takeaways, Restaurants and cafes reign supreme numbers and a construction boom.
bars and cafes and on catering. In keeping in the battle for our dining dollars, with
with overall trends in consumer spending, total sales of $4.45 billion. Nearly 50 cents Other regions:
we’re seeing growth in almost every of every dollar spent in the sector goes • Waikato, Wellington and rest of North
region and in every category of the through the till of a restaurant or café, Island regions – revenue growth was
hospitality sector. Based on the trend more than double that of its nearest rival, slightly above the national average.
of the past few years, we’re forecasting takeaways ($2.0 billion) Waikato, as part of the wider upper
sales to top $10 billion next year, which North Island area including Auckland
is incredibly exciting. While it might be a distant second,
and BOP, is benefitting from gains
revenue for the takeaway sector grew
across a broader range of industries
the fastest last year, up nearly 16%,
and strong population growth.
growing at nearly double the sector
Highlights of the 2017 average and more than four times faster • Manawatu-Wanganui and the rest of
Foodservice Facts Report: than the café and restaurant segment. the South Island regions – revenue grew
at half the national average.
Regionally, Auckland is the biggest market,
• Industry sales $9.7 billion with sales of $3.7 billion, followed by
Creating jobs and finding people are
(up $732.9 million, or +8.2%) Wellington ($1.2 billion) and Canterbury
($1.1 billion). In terms of growth, the not easy tasks
• Employee numbers reach Bay of Plenty, one of the smaller regions, Good trading conditions mean that
120,900 (up 560, or +4.9%) recorded the greatest growth at 18.22%, hospitality businesses can hire more
followed by Auckland (11.52%), the rest staff. More than 120,000 people now
• Number of outlets reach 16,728
of the North Island (9.79%) and Wellington work in the sector, up 4.9%. We’re seeing
(up 630, or +4.1%) increased employee numbers in almost
(9.23%).
every segment and in all but one region.
The sector is enjoying strong, Of the nine regions featured in the Auckland recorded the greatest increase
report, eight recorded increases in in staff in both real and percentage terms,
sustained growth; five-year
revenue ranging from +18.22% for Bay of as did the takeaway segment.
data paints an even stronger
Plenty to +0.57% for Otago. Revenue for
picture: Canterbury dipped by -0.18%. While many industries are being disrupted
by technology, hospitality needs actual
• Industry sales increase by As the most populated region and the people in real time working. As more
$2.5 billion or +35% for the main tourism gateway to New Zealand,
five years to March 2017 Auckland plays the largest role in the
tourism and hospitality sector. Revenue
• Employee numbers increase
increased by $378 million over the past
by 16,900 or +16.25% for the
$10B
12 months, more than triple the dollar
five years to February 2016 growth for 2016, and the outlook remains
• Number of outlets increase very positive.
by 1,980 or +13.4% for the Bay of Plenty was the star performer,
five years to February 2016 with percentage revenue growth more forecasted sales
in the hospitality
than double the national growth rate and
sector in the
far outstripping second place Auckland. next year
8SAVOUR — SEPTEMBER 2017
Finding enough
qualified people
to meet demand
from the dining
public is one of the
biggest challenges
we face.
people eat out more often, more chefs More options, more places to eat from cheap and cheerful to fine dining, and
are needed, as well as increased front- The number of outlets also grew, topping everything in between. A diner could never
of-house staff. 16,725 for the year to February 2016, with be bored with the number of options and
the number of takeaway outlets up by outlets available. There are meal possibilities
Finding enough qualified people to
5.48%. The number of Auckland outlets for every wallet and every palate.
meet demand from the dining public is
one of the biggest challenges we face. grew by nearly 5% to reach 6,438.
Outlook
Our industry is running flat out, training Sustained economic growth gives
apprentices, upskilling from within, With domestic demand and tourism
hospitality operators the confidence to
and — for as long as we can — hiring showing no signs of slowing down, we
open new outlets. Between 2012 and 2016
internationally. We can barely keep can expect growth to continue for the
the number of outlets increased by 13.4%.
up with the growth. foreseeable future. The America’s Cup and
In every region there are more options
other major events will boost an already
Business owners are plugging the gap than ever if people want to eat away
vibrant sector that is a major contributor
when they can’t find the right people, This, from home.
to the New Zealand economy and the
however, is not sustainable in the long We love the innovation in our sector. It not tourism experience.
term. As an industry we are working hard only reflects trends, it creates them. Kiwi
to find a lasting and effective solution. diners are spoilt for choice with everything
9SAVOUR — SEPTEMBER 2017 Industry Update
A win for
the hospitality
industry
Changes to the temporary
work visa now in place.
The Government has listened to to be $48,859) will be considered Other issues highlighted during
feedback from the industry over low skilled and will have restrictions. consultation are being addressed
their proposed changes to Essential However, the Government has reduced during the second phase of the review
Skills work visas. the remuneration band – addressing of temporary migration settings. These
Immigration Minister Michael Woodhouse the issues that were raised in the include developing a framework for
recently confirmed the immigration consultation process from organisations further targeting of immigration settings
changes, which have just come into like the Restaurant Association who by sectors and regions, developing
force after a consultation process that vigorously argued against the proposed proposals to incentivise and reward good
resulted in around 170 submissions. The salary threshold. As a result, the lower employer behaviour, and ensuring that
Association strongly advocated on behalf remuneration band for the new changes seasonal work visas reflect seasonal work.
of the industry when meeting with MBIE will be set at 85 per cent of the New
Phase Two also addresses concerns
and Immigration NZ for a lower salary Zealand median income — currently
raised by primary industries that the
threshold to be set for our industry. We $41,538 a year — instead.
current ANZSCO descriptions lack
are heartened that the Government has Minister Woodhouse says the new mid- classifications for some jobs and therefore
listened. skilled remuneration band recognises the disadvantage workers whose occupations
The changes utilise a salary threshold to fact that these workers are filling genuine are classed at a lower-level by default.
help determine skill levels. Those under skill shortages and are more likely to
The changes to temporary work visa
a certain threshold (originally proposed progress with further skills acquisition or
conditions come into effect 28th August,
work experience.
alongside the previously announced
changes to the Skilled Migrant residence
category. We will keep members updated
as new information comes through.
A brief summary of some of the Essential Skills visa changes:
• Essential Skills visa holders who earn be considered mid-skilled and will
less than $41,538 will be issued a be able to gain a visa for up to 3
visa of 12 months for a maximum 3 years at a time and there will be no
year duration, after which they will restriction on the number of times
need to spend 12 months outside they will be able to reapply. Migrants
New Zealand before they can be earning within this band will also be
granted an Essential Skills visa to able to support visa applications for
work in another lower-skilled role. their partners and children.
Partners and children of lower-skilled
• Those earning over $73,299 a year
visa holders will need to meet visa
will automatically be considered
conditions in their own right.
higher-skilled, regardless of their
$41,538
• A migrant earning between $41,538 occupation.
and $73,299 in an occupation
classified as ANZSCO Level 1 – 3 will
the new salary threshold for
the Essential Skills work visas
10Every discount counts. It’s time to talk to us today about our Restaurant Association member deals. 0800 177 677 member.info@westpac.co.nz Westpac New Zealand Limited
Employment
Matters
Food.
TrialServices, Changes&and
period, diversity more
breaks.
12SAVOUR — SEPTEMBER 2017 Employment Matters
Cultural complexities
demand agile thinking
Identity is more than just gender or ethnicity but workplace
mentality fails to reflect that.
Since releasing the Superdiversity Stocktake: everyone finds it easier to visit and live
Implications for Law, Policy and Business in New Zealand.
in November 2015 and discussing with
So, a quarter of Auckland’s population
many businesses and organisations how
right now are Maori, Pasifika and Asian
to implement strategies to address the
women, and their experiences from the
growing diversity of their employees and
statistics show that they get paid less
customers, I have realised the need to
than Anglo-Saxon men and women
refresh what the word “diversity” means in
and coloured men. The Human Rights
21st century New Zealand.
Commission’s statistics show that over the
The literal meaning of “diversity” is past five years, complaints are becoming
broad and so it is important that we don’t more complex and based on multiple-
By Mai Chen constrain the diversity of employees and ground discrimination — from 9.19 per cent
MANAGING PARTNER, CHEN PALMER customers mainly to gender or ethnicity. of complaints in 2011/12 to 15.4 per cent in
2015/16. The majority of these complaints
We often hear that we don’t have
concern race and sex, followed by
enough women on this board or in senior
disability and age, sex and age (older
management, or we need more Maori,
women), and race and disability.
but identity is complex — we all have a
gender and an ethnicity, a religion (or There is also a vast body of New Zealand
are atheists), a language, a sexuality, and and overseas research evidencing that
an ability or disability. So why do we such individuals are typically subject to
approach what customers and employees a “double” or “triple” disadvantage in
experience and thus the needs they have a range of different settings, including
and the barriers they have to overcome housing, employment, criminal justice
as if they were a single axis line — just and health.
gender or being indigenous, for example.
It is important that we update our thinking
For some, it will just be gender, but for
to reflect the lived experiences of New
a growing number of others, it will be
Zealanders in the 21st century, and adopt
gender plus.
a “matrix” approach to diversity.
Unless we more accurately define the
Properly defining diversity is critical
diversity of a growing number of New
not just to business, customers and
Zealanders we are not going to attract
employees, but also to solving important
and satisfy the needs of diverse customers
issues like homelessness.
and employees.
The Healthy Housing Project, a long-
The reason is the growing superdiversity
running study run by the University of
Mai Chen is a featured of New Zealanders (over 25 per cent not
Otago examining the health impacts
speaker presenting at the born in New Zealand, over 120 ethnicities
Hospitality Summit 2017 where
on people moving from the Housing
plus a significant and growing indigenous
she will discuss key issues and New Zealand (HNZ) waiting list to HNZ
population), increased intermarriage
challenges business owners tenancies, has found that the vulnerability
resulting in more mixed-race babies,
face. To register for tickets, visit: of the HNZ population was attributable to
www.restaurantnz.co.nz/event/ and the faster speed of travel meaning
a convergence of factors, such as the
hospitality-summit that we are closer to everywhere and
13SAVOUR — SEPTEMBER 2017 Employment Matters
Unless we more accurately
define the diversity of a growing
number of New Zealanders, we
are not going to attract and
satisfy the needs of diverse
customers and employees.
age and gender of the applicants and and the United States have recognised to policy-making and citizen engagement.
tenants, who were predominantly female that anti-discrimination law needs to How does this affect needs, barriers to
applicants, with a median age of 15 years adopt a more “intersectional” approach engagement and how policies affect
(includes children living in the family) and to cater to those who suffer overlapping people suffering multiple grounds
on very low incomes. HNZ tenants were grounds of discrimination and are subject of discrimination?
also more likely to be Maori and Pasifika, to stereotyping based on their unique
If you properly define the issue, then
more likely to be living in single-parent combination of characteristics.
achieving greater diversity should be
households, and more likely to suffer from
For example, in the United States, black more successful.
chronic physical and mental illness.
women are a protected class under
employment law and an individual can
ABOUT THE AUTHOR
claim that they have been discriminated
It is important that against as a black woman specifically, not
as a black person or as a woman.
Mai Chen is a Chen Palmer managing
partner and adjunct professor of the
we update our The combination of grounds can often
University of Auckland school of law.
The ideas and research for this article
thinking to reflect make the discrimination suffered worse are set out in full in The Diversity Matrix:
and without adopting an intersectional
the lived experiences approach, the disadvantage is
Refreshing What Diversity Means for
Law, Policy and Business in the 21st
of New Zealanders understated, and can be misrepresented. Century, published by the Superdiversity
in the 21st century, The New Zealand courts are yet to Centre for Law, Policy and Business
in 2017.
address intersectional discrimination
and adopt a “matrix” through adopting a multiple-ground
approach to diversity. discrimination approach, despite no
barriers to doing so in our Human Rights
Act or the NZ Bill of Rights Act.
A diversity matrix approach will
Having a matrix approach to diversity also also affect how local and central
affects New Zealand’s human rights law. government should tailor their approach
Courts in Canada, the United Kingdom
14SAVOUR — SEPTEMBER 2017 Employment Matters
Trial period termination:
what notice?
A new case re-opens the question as to whether
or not payment can be used in lieu of notice.
Just when we thought that the law around instead of notice” was valid, and whether
trial periods was settling down and we the employer could pay notice in lieu
knew where we all stood, the ground has instead of the employee working out the
shifted again. The latest wrinkle is, once notice period. The Authority found that the
again, around the concept of giving notice Act did not provide for payment instead
of a trial period termination. of notice and, therefore, that Canon’s
decision to make a payment in lieu of
What does the Act say? notice did not meet the requirements of
To recap, section 67B of the Employment the Act, and thus Mr Hutchison was free
Relations Act 2000 (Act) states: to raise a personal grievance in respect of
his dismissal.
1. This section applies if an employer
By Alison Maelzer terminates an employment agreement The Authority referred to Chief Judge
SPECIAL COUNSEL, HESKETH HENRY
containing a trial provision under Colgan’s comments in the Employment
section 67A by giving the employee Court case of Smith vs. Stokes Valley
notice of the termination before the Pharmacy. In that case, Colgan CJ
end of the trial period, whether the commented that “the statute does not
termination takes effect before, at, or provide an alternative in the form of
after the end of the trial period. payment of money instead of notice…”
This, combined with the need to interpret
2. An employee whose employment trial periods very strictly because they
agreement is terminated in essentially remove a right of access to
accordance with subsection (1) may justice, meant that the Authority was
not bring a personal grievance or legal convinced that in a trial period termination
proceedings in respect of the dismissal. the employer needs to give notice and not
The disqualification from bringing payment in lieu.
a grievance or legal proceedings in From a practical perspective, the Canon
respect of the dismissal under section determination was bothersome because
67B(2) is dependant on the employer it meant that employers terminating under
terminating the employee’s employment a trial period were essentially forced to
in accordance with section 67B(1). That keep the employee hanging around for
section says that an employer can the notice period when, in most cases,
terminate employment “by giving the both employer and employee would have
employee notice of the termination before preferred to have the employee leave
the end of the trial period”. immediately with a payment. However, at
least we knew where we all stood.
How was this interpreted?
The Restaurant Association In Hutchison vs. Canon New Zealand Ltd, What has changed now?
offers Employment Agreement the Employment Relations Authority had to This has changed again (or has it?), with
templates online, available to consider whether a trial period provision the recent Authority determination in
all members. Visit us online
which stated that employment could Ioan vs. Scott Technology NZ Limited t/a
in our shop to access:
www.restaurantnz.co.nz/ be terminated by the employer “giving Rocklabs. In this case, the Authority again
product-category/employment- one week of written notice or payment had to consider whether the employer
agreements
16SAVOUR — SEPTEMBER 2017
making a payment in lieu of notice was Pharmacy case, or explain the departure in your trial period, as the Restaurant
sufficient to meet the Act’s requirements. from the previous position. As there is no Association template employment
mention of those authorities on exactly that agreement does, hopefully this shouldn’t
In this case, the employer advised Mr Ioan
point, it is not clear whether the Ioan vs be too much of an issue. A slightly more
that his employment would terminate
Scott Technology NZ Limited t/a Rocklabs risky approach might be to agree with
that day under the trial period, and that
is a change of law or a clean miss. the employee that they are not required
he would be paid for four weeks in
to attend work during the notice period –
lieu of notice. Mr Ioan sought to raise a
What now? although their employment will not come
grievance alleging that the termination
We would expect the Ioan determination to an end until the end of the notice period
did not meet the strict requirements of the
to be appealed. However, we currently (i.e. garden leave). Alternatively, you could
Act in terms of terminating employment
have two directly conflicting Authority decide to adopt the most recent Authority
under a trial period. Given the Authority’s
determinations; one says that you can’t determination on the issue, and make a
determination in Canon, and the
terminate under a trial period by paying payment in lieu of notice. However, may
Employment Court’s comments in Smith
in lieu of notice, even where there is a the risk be with you!
vs. Stokes Valley Pharmacy, this seemed
like a slam dunk for Mr Ioan. contractual provision; the other says
that payment in lieu of notice is fine to
This time, however, the Authority found ABOUT THE AUTHOR
terminate pursuant to a trial period. While
that payment in lieu of notice was the Employment Court has commented Alison Maelzer provides advice in all
sufficient and did not accept that “a on the issue in favour of actual notice not aspects of employment law (both
payment in lieu of notice which is made in a payment in lieu, it has not decided the contentious and non-contentious), with
accordance with an express contractual issue within a judgment. a particular interest in health and safety,
term in the employment agreement voids disciplinary and performance issues.
the trial period provision”. In reaching this In our view, the safest course of action
decision, the Authority did not reference is to give an employee actual notice and
E: alison.maelzer@heskethhenry.co.nz
either Canon, or the Employment Court’s have the employee work it out. If you have
T: + 64 9 375 7628
comments in the Smith vs. Stokes Valley a relatively short period of notice specified
In our view,
the safest
course of
action is to give
an employee
actual notice
and have the
employee work
it out.
17SAVOUR — SEPTEMBER 2017 Employment Matters
Take five: relax,
refresh & rejuvenate
What breaks are employees entitled to?
Who decides when they are taken and
for how long?
for this in the employee’s employment The agreement is therefore very broad,
agreement, or agree by mutual agreement. leaving it open for employers to come to
an arrangement that suits their particular
When determining what breaks are
business environment. Since the break
provided an employer should take into
schedule is not specified in the agreement,
account:
you must decide how and when you
• how long the employee’s work period is; will communicate this information to all
employees, as well as specify who will be
• the nature of the employee’s work;
responsible for telling them it is time for
• any health and safety issues related to their break. You can communicate break
the work, e.g. fatigue; processes to new employees as part of
their induction or by agreement in the
• the interests of the employee, e.g. to company house rules.
allow enough time for rest, refreshment
and to take care of personal matters; and The employee’s entitlement to rest breaks
and meal breaks may be subject to
• the employer’s operational environment restrictions, but only if the restrictions are
or resources, e.g. requiring employees to reasonable and necessary, having regard
take their breaks in stages or according to the nature of the employee’s work,
Reasonable employers know their to a roster, in order to continue service.
staff need regular rest breaks through or, are reasonable and agreed to by the
the working day. Without them, an employer and employee (whether in an
Who decides when an employee employment agreement or otherwise).
employee’s productivity will suffer and
can take a break?
more seriously, their health and safety The law allows restrictions to breaks
(and those of others around them) may Whereas break rules were very
because sometimes it is reasonable that
be compromised. However, there is often prescriptive under previous employment
an employee cannot fully enjoy their
confusion amongst employers as to what law, current employment legislation
breaks without interruption, or may need
breaks an employee is entitled to, when allows flexibility for when breaks are
to partially focus on work during a break.
they can take them, how long the breaks taken. When rest and meal breaks are
However, a high standard is set for when
should be, and who can direct breaks. to be taken should be agreed between
restrictions are possible. Employers and
the employee and employer, but in the
absence of such agreement, reasonable
What breaks can an employee take?
times and duration can be specified by
An employee is entitled to, and an
the employer.
employer must provide, reasonable and
appropriate rest and meal breaks that The Restaurant Association’s employment Communicate break
provide the employee with a reasonable
opportunity for rest, refreshment, and
agreement states:
processes to new
attention to personal matters. A rest
6. Breaks
employees as part
6.1 You are entitled to rest and meal
break is a short, paid, ‘coffee’ break of
usually 10-15 minutes. A meal break is a breaks to be taken at times
of their induction
longer duration – typically a half hour – convenient to the Employer. or by agreement
to allow the employee time to sit down
and have something to eat. Meal breaks
6.2 You acknowledge and agree that in the company
your entitlement to rest and meal
are generally unpaid, unless you provide
breaks may be subject to restrictions. house rules.
18employees should discuss in good faith The law also says that giving an employee variation to the agreement is completed.
whether restrictions are reasonable time off work instead of a break is The Restaurant Association can provide a
and necessary. reasonable if: variation document if such an agreement
is made.
The restrictions may only relate to: • the employee gets the same amount of
time off as they would otherwise have Breaks benefit workplaces by helping
1. the employee continuing to be
taken as a break employees work safely and productively.
aware of work duties or, if required,
So, while the law no longer specifies
continuing to perform some of his or • the time off is given on the same basis
exactly what breaks employees get or
her work duties during the break; as the break that the employee would
when they can take them, employers must
have otherwise taken. For example,
2. the circumstances when an still provide reasonable and appropriate
if the break that was not taken
employee’s break may be interrupted; rest and meal breaks, or on the rare
wouldn’t have had restrictions, then the
and/or occasions that they are not able to,
compensatory break also cannot have
provide compensation to the employee.
3. the employee taking a break in the restrictions.
workplace or at a specified place
Employers can give other types of
within the workplace.
compensation as long as they are
reasonable.
What if an employee agrees not to
take a break? Employers and employees cannot
In most cases the Restaurant Association contract out of the legal right to rest and
advocates that employees in our meal breaks or compensation.
businesses should be able to take breaks
to rest and refresh, however, an employee Remember to check your
and employer can agree that the employee agreement first!
will receive compensation instead of As a final point to note, always check the
breaks. The law also requires employers to employment agreement first. Whatever is
compensate employees if no break is given in the employment agreement will trump
where a break would be appropriate. any other arrangements. If you have an
employee on an employment agreement
There is some flexibility about what
with specific rest and meal break
kind of compensation an employer can
provisions outlined, these will remain in
give, but it must always be reasonable.
force unless the employer and employee
Compensation is reasonable if it is of a
agree to change the agreement and a
similar value as the break.
19SAVOUR — SEPTEMBER 2017 Employment Matters
Staying well
under pressure
Hospitality is an exciting, fast-paced
industry offering variety and flexibility.
However, it is also one of the most
stressful occupations around.
The industry is high pressure, requiring staff According to a report released earlier Member support – employee
to work long – and often irregular – hours this year, while minor illness is the assistance programme
for relatively low wages, and at the mercy predominant reason for employee Employers can also encourage employees
of customers (taking the good and the bad). absence from work, two of the other to seek professional employee assistance
This type of pressure presents a number leading reasons for absence are stress support by providing independent
of risks to employee health and well and mental ill health. This research also assistance for your employees if they are
being, both physical and psychological. identified financial stress as a developing experiencing any personal or work related
issue. Therefore, wellness programmes difficulties. The Restaurant Association has
The Restaurant Association has been
that promote employee financial health identified the need for this assistance, for
contacted by a number of members who
are increasingly important to employers, both employers and employees, and has
are concerned about, and want to place
including strategies that address retirement begun working with EAP Services Limited.
a focus on, employee wellness. Creating
readiness and financial literacy.
a workplace wellness programme for EAP provides practical assistance when
your operation is a first step for those who personal or work issues arise that may
want to take a proactive approach to impact on someone’s ability to do their
improving the health of your employees. job or affect their wellbeing, such as:
In addition, research also identifies that Creating a workplace
• Personal Relationships
a successful employee wellness strategy
encourages reduced absenteeism,
wellness programme • Personal Development
increased productivity and enhanced for your operation is • Children & Family Support
employee engagement and retention.
a first step for those • Separation & Divorce
• Alcohol & Drug Problems
Getting started who want to take a • Grief & Bereavement
Consider the key areas you want to focus
on to improve the health and well-being
proactive approach to • Personal Legal Advice
of your workers and build from there. improving the health • Budgeting & Financial Management
Addressing stress and financial health are • Gambling & Addictions
key wellness programme drivers for New of your employees. • Conflict & Tension
Zealand employers according to a 2016 • Health & Lifestyle
report Working well: A global survey of
• Anxiety & Depression
workforce wellbeing strategies, and these
Methods for addressing stress include • Emotional Stress Trauma
are two areas of particular relevance to
providing information to staff on • Work Pressure & Problems
the hospitality industry.
identifying and managing stress or
Globally, work-related stress has been running an awareness programme as part The professionals at EAP Services
established as a significant problem and of staff development. The Mental Health Limited are all qualified, registered
this is a complex issue that needs to be Foundation has a number of resources and experienced employee assistance
addressed as part of any wellness strategy. to assist (www.mentalhealth.org.nz). It is programme (EAP) specialists, with
also advisable to provide direct training services available in all regions. All EAP
to managers on how to recognise and consultations are strictly confidential. EAP
effectively deal with mental health issues Services will not share information about
in the workplace. the sessions with anyone unless they have
written authority to do so.
20SAVOUR — SEPTEMBER 2017
If you have employees who need help
you can suggest that they would benefit
from using EAP Services. Owners, of
course, can also book themselves in for
any sessions.
To assist members, the Association has
negotiated a significantly reduced rate
to access the support available through
EAP Services. Sessions cost $170/session.
Simply contact the Association to book
by emailing info@restaurantnz.co.nz and
we will send you a confirmation number
with instructions on how to access this
discount. Go to www.restaurantnz.co.nz/
eap-services for further information.
Many employers aspire to promote a
culture of wellbeing for their workplaces,
recognising the benefit that programmes
that promote wellness factors have on
employees’ wellbeing. For an employee
a focus on achieving a healthier lifestyle
can provide greater job satisfaction
and health-related quality of life. For an According to a report
released earlier this year,
employer, success comes from achieving
measurable outcomes in the wellbeing
of your employees, including a decrease
in sickness and staff turnover, as well as
improved performance.
while minor illness is the
predominant reason for
employee absence from
work, two of the other
The Restaurant Association has
negotiated a significantly reduced
leading reasons for
absence are stress and
rate to access the support through
Employment Assistance Program
Services. For more information,
visit: www.restaurantnz.co.nz/
eap-services mental ill health.
21Business
Insights
Food. Services,
Advice, Changes
help and and
insider more
tips.
22SAVOUR — SEPTEMBER 2017 Business Insights
Benefits for Restaurant
Association members
Need help finding staff?
Introducing Helping Hands
The Restaurant Association has partnered with
Helping Hands, a NZ owned and operated website
which connects employers with hospitality staff,
and jobseekers with hospitality jobs.
The concept is simple — employers search for what they need and the
“...the profiles give
site delivers them the jobseeker profiles that match.
personality to the
The jobseeker profiles display availability, the kinds of work the jobseeker is process, no more
after, their experience, and some character based questions like “how many
plates can you carry and what would be on them if they were for you?” ineloquent cover
letters, just all the
Nimble and responsive to industry feedback, Helping Hands is dedicated
to their mission: to save hospitality employers time and money whilst relevant details,
connecting them with the staff they need, on the spot. up front.”
Restaurant Association members can access one month free trial Dan from Burger Liquor
and a 15% ongoing discount when they sign up with Helping Hands. in Wellington
Go to www.restaurantnz.co.nz/helping-hands for more information.
QUESTIONS? JUST GIVE US A CALL ON 0800 737 827!
Our Partners
STRATEGIC
PARTNERS
KEY PARTNERS
MAJOR
SUPPORTERS
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