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Discounting: Strategic move or mistake?

In military training, they teach you how to look for warning signs that could affect the mission. They call this situational awareness. Discounting can be one of these signs.

Potential threats might include the enemy’s position, the current environment, the shape they are in mentally/physically or position if things went wrong and what the next move would be.

It’s the same in the trades business – there are always warning signs when your business is headed for trouble.

Having personally coached hundreds of trades businesses over the past twelve years, there are nine warning signs I look for. Deal with these early, and chances of success improve dramatically. Left too long, they can cause major problems at best and failure at worst.

Early warning signs:

Are you finding yourself struggling to secure enough work for your team? Or maybe you’ve noticed that the amount of confirmed work booked ahead is shrinking? When work starts to dry up, it affects the bottom line. Do you start discounting to get the work or wait it out until things get better?

It’s a situation some tradies are facing right now, and it’s not easy. But before you start slashing prices, here are a few things to consider.

Disappearing profit?

Profits and margins can disappear alarmingly fast once you start cutting your prices, and here’s why.

Let’s say your gross profit margin is around 20%. If you reduce your prices on a job by 10%, the volume of work you need to complete just to maintain the same dollar profit increases significantly.

For example, if your break-even point is $100,000 per month at a gross profit margin of 20%, and you reduce your prices by 10%, you now need $200,000 of work to reach break-even. That’s twice the work, time, and effort, for the same result you were previously getting.

It’s a stark reminder that while reducing prices might seem like a viable strategy to attract more jobs, the impact on your bottom line can be significant. Not only does it increase your workload, but it also puts a strain on you and your team, sometimes compromising quality. Too many rushed jobs that go wrong can also affect your reputation.

So, before you consider cutting your rates, crunch the numbers and understand the real impact on your business’s profitability.

What’s your target Gross Margin?

Understanding your Target Gross Margin is crucial in determining which jobs are worth your effort.

Your Target Gross Margin is the percentage of profit you aim to make

on each job after all direct costs, including wages, are subtracted. This margin should be high enough to cover your business’s overheads plus a healthy profit.

Target Gross Margin could be anywhere between 20% – 60%, depending on the trade and your position in the market – high or low end. I don’t like to see anything under 20% minimum in any trade; less than 20% is too difficult to make a profit. If you want some help to work out your target gross margin and where you should be for your business, then check out the “Pricing Strategy Session” at the end of this article.

Having a clear Target Gross Margin is like having a compass in the wilderness. Once you know where you want to head you can see clearly if you are going in the right direction and adjust. No more wasted money, time, and energy taking jobs that lose you money.

Sticking to your guns

Your large client wants a better price, what now? Don’t just take this at face value. Test, question, negotiate. Why do they think the price is too dear? What are they comparing their quote to: apples with apples or apples with bananas? Is there more in their budget, or can you adjust the brief to fit?

Show them that your price is good value and see what happens next. Some will
get it, and some won’t, that’s ok. The ones that don’t, fine, just move on to the next opportunity.

Eddie, a mentor of mine, would tell me, “15% of customers will always go for the cheapest option no matter what”. If another option is one dollar cheaper, they will take it even if the job is half as good. The clients you want are the other 85% who care about getting a quality job done right, hassle-free and are prepared to pay for it.

Remember, pricing isn’t just about numbers; it’s a mind game. The right way you present your pricing and value can make all the difference in attracting the right kind of clients and getting the work.

When my clients start telling me they are sticking to their rates, margins are increasing, and they now have plenty of good work lined up, that they don’t need every job that comes their way – I know they are on track.

Are you fishing in the right river?

Fishing is about being in the right place at the right time. The right bait at high tide will catch way more fish than at low tide when the fish aren’t around.

It’s the same with your business, are you marketing in the right places? Are you seen as the specialist or a generalist who does a bit of everything? The specialist attracts better clients and can charge more. That’s less work and more profit for you.

Being the cheapest is dangerous

If your business is based on being the cheapest, that’s a problem. Firstly, you won’t be getting the margins you need, and there will eventually be someone else out there who will do it even cheaper.

A builder client, Celeb of The Decking Guys, was in the same predicament. He was working 80 hours per week, making no money with one part-time worker and struggling to find work. His clients kept asking him for lower rates. I told him to put his rates up and start specialising.

Within 12 months, he had a team of 11 and plenty of work. Check out his story on our testimonial page at nextleveltradie.co.nz/real-results/

More options, better odds

If you are relying on getting one quote or you can’t pay the bills, you need the job, so the pressure is on you. You are in a weak position and are more likely to cave on price to get the work.

A much stronger position would be if you have five other quotes you are following up in the same week with 3-6 months of work already confirmed. Now you are calling the shots.

If a new client is relying on a small number of quotes and doesn’t have enough work, the first thing we do is help them get their pricing right and find better jobs. This takes the pressure off and puts them back in control of their business.

Don’t waste a good opportunity!

If things are on the quiet side and you’re still not getting the work you want, then this could be the opportunity to consolidate and scale back a little. Move any bad eggs on and rebuild stronger. Better to have a bit less work for a while, than working your tail off and going backwards.

If you still want to reduce your rates to get a job short term to pay the bills, then ok. But make sure that this is a short-term strategy and use it as motivation to position the business better so that you’re not caught out next time.

Sometimes, in a downturn, there will be less work for a while. The key here is to keep the business solid and profitable while looking for better opportunities, which long term is not cutting prices.

Article supplied by: Daniel Fitzpatrick, Next Level Tradie

Published in WIRED Issue 72 / MARCH 2024  by Fencing Contractors Association NZ

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Tractor safety on roads

The team at FCANZ have heard a few anecdotal stories lately about farmers getting pinged by Police while driving their tractors, so we took the opportunity to have a chat with Senior Sergeant Hugh Tait, of the Commercial Vehicle Safety Team based in Dunedin, about how fencing contractors and rural contractors can make sure they’re keeping their employees and other road users safe while out and about in the tractor.

What licence is required to drive a tractor on public highways?
Class 1 restricted as a minimum. This will allow you to operate a tractor under 40km/h on the roads. Modern tractors can exceed 40km/h so ensure your staff are aware of the limitations if they are on restricted licenses.

Are track endorsements required for track machines?
The NZTA Agriculture Vehicles guidance states that tractors are not special type vehicles, however any motor vehicle
that runs on self-laying tracks requires a T endorsement.

What conditions does a tractor have to meet to be warrantable / road-worthy / compliant?
Just the basics: if you’ve got good tyres, brakes and lights, ensure things aren’t falling off or protruding from it then it should be okay. Not necessarily clean and tidy, but the quality of the gear makes a difference. If operators are keeping on top of the little things, the big things take care of themselves.

Are you allowed passengers in the tractor cab?
All passengers should be restrained.

We’ve probably all taken the kids for a ride in the tractor on the main road at one point. If there was an accident on the road and if WorkSafe got involved, the owners manual of the tractor typically states that the passenger seat is for training purposes only. In a worst-case scenario, you’d be in serious trouble, correct?
Yes, unfortunately. Speed would be an interesting one as well. If you’re doing under 40km/h as per the dimensions of the tractor, then you’d lessen the consequences. But like you say, if the manufacturer’s instructions state it is for training only, then it’d be pretty hard to explain what kind of training you’d be doing especially with a young child in
the jumpseat.

When do you need to use lights/flashing lights on the tractor?
Ideally you’d have them operating continuously. Having headlights going and the beacon light on is good as it alerts motorists to a larger slow-moving vehicle. Steer away from having your hazard lights on. An issue we see reasonably regularly are tractors with hazard lights on trotting along nicely and then decide to turn right, across the highway. As they are slow moving the following vehicle tries to go around them, not realising that the tractor intends to turn right because the hazards have been on the entire time. Having your hazards on is probably more of a hazard than not having them on.

Do forward facing lights have to be able to be dipped? Are we able to use the big work lights across the top of the cab when driving?
When driving, your cab mounted work lights should be off. You should just have your normal road lights going which should have a dip function. Given how bright and strong work lights are, you’re likely to end up dazzling everything coming in the other direction.

Is there a counter argument for where lights are generally front, centre and bottom of the bonnet? 9 times out of 10 if you crab your bucket around, the lights are facing the cross member of the loader so you’re not getting any vision out of it either.
Agreed – that would be good justification to have the cab/work lights on, so other drivers can see it from further away. If you’ve got the ability to only put two of the four work lights on, do that. Just use common sense.

Are there any other safety issues to consider?
Cell phones: sadly they are becoming more and more present in our lives and especially so for business purposes. I am sure we have all seen people in cars, trucks & tractors on the highway using a cell phone. If you haven’t got Bluetooth or an earpiece, avoid the temptation to be on your phone whilst driving.

Hazard Panels: we regularly see more European farm machinery coming into New Zealand, which come with the Euro-standard panels, red and white, instead of orange and yellow. Distributors know they can’t leave them on there, but some of them still do. Owners need to talk to their supplier to get these replaced so the vehicle is road legal.

Should the loader be up or down when travelling on the road?
An interesting one. If you look at the guide it talks about minimising risk to other road users and making it safe for yourself. What is the safest option? You just have to work it out for yourself at the time with the equipment you have. For example, if you’ve got the bucket up, gravity can make it top heavy and unsafe for the driver. With the bucket down it enhances visibility and the stability of the vehicle, but the bucket can be well out in front of the vehicle, which is a hazard. You are potentially obstructing your lights as well. If you’ve got the bucket down, you need to be aware of the front edge and rotate up or down, ensure any spikes/tines are covered minimising risk for other road users.

What about driving tractors after dark?
Basic lighting requirements are required – headlights, tail lights and amber beacon as a minimum. As per the earlier question be aware of leaving work lights on as they are generally brighter than most and can dazzle oncoming traffic.
Anything overdimension (over 3.1M) has restrictions that apply. There needs to be a marker light on the exterior of the hazard panels, but take practical steps to do what you can to make it safe for all road users.

What are the requirements/restrictions for A-frame utes behind tractors?
Users need to be aware that fitting an A-frame to a vehicle can affect the ability of the vehicle to absorb energy the way it was designed to do, potentially reducing the effectiveness of airbags.

Safety chains need to be attached between the A-frame and the tractor, and lights are required if the ute obscures the lights of the towing vehicle.

It really is down to the operator to make sure the A-frame is in good condition. We probably get one incident per year where there is a failed A-frame and the ute has taken its own path and ended up in a paddock or hit someone/something. It would be good practice to have the A-frame inspected as part of your pre-start; around the welds, joins, couplings etc, and it can’t hurt to get an engineer to inspect annually. Our safety inspectors also talk about the connections to the chassis on the ute – keep an eye on wear/tear around these connections.

What about the towing weight for an A frame – are there any regulations for that?
No, it would be down to the tow capacity of the trailer. The quality of the metal or the boxing in the A-frame would be essential. It needs to be welded up by a Certified Welding Engineer who has experience in making A frames.

Is there a limit on pivot points?
Yes. You can’t hook a trailer on behind the ute which is attached to the A-frame. Overall length restrictions will also come into force (25m absolute maximum).

How common are accidents where tractors are involved?
Thankfully not that common but we probably get a couple a year. Unfortunately due to the size & weight of the machines there is often a fatality. When you’re working on farm roads, the rural back roads are typically smaller gravel roads and when you’ve got a tractor with duals on and at maximum width, coming around a blind corner or over the brow of a hill, that’s where accidents happen. And unfortunately, on a small gravel road you can’t do much to avoid it.

Is there anything tractor drivers can do to stop people from overtaking at stupid times?
Not really – you can’t control other drivers so you can only control your machine. People are becoming busier and in more of a rush, less patient if you like, so are prepared to overtake in silly spots. Be aware of your environment and what is coming behind you, identify safe areas and pull off where you can.
Operating heavy machinery on the road is a skill that should never be taken for granted, especially around those that are not capable or aware of the limitations of large machines.
Dashcam footage is increasing as Police receive footage several times a week from larger transport operators. Spreading the message that dashcam footage can result in fines or infringements all helps with improving driver behaviour. Cameras in vehicles can also be gold for operators when there is an accident, where the footage clearly shows the cause of an accident, reducing the risk for operators.
Further guidance on Agricultural Vehicles and A-frame towing can be found on NZTA’s website:

Article written by Heather Kawan

Published in WIRED Issue 72 / MARCH 2024  by Fencing Contractors Association NZ

 

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How to use a 90-day trial period legally

Following legislation change in December 2023, New Zealand employment law now allows all employers to use a trial period, no matter what the size of the organisation.

Trial periods (if introduced legally) enable an employer to dismiss an employee up to 90 days into the employment relationship and prohibit the employee from then raising a personal grievance for unjustified dismissal. This article summarises key issues for an employer to get trial periods right. This is critical as case law makes clear that trial periods will be strictly interpreted, and many employers are still being held liable for unjustified dismissal claims through the invalid use of a trial period.

What are the requirements for a legally valid trial period?

Sections 67A and 67B of the Employment Relations Act 2000 set out the legal requirements for 90-day trial periods.
Trial periods can only apply to new employees:
• The employee must not have worked for the employer previously. This includes past casual, part-time or fixed-term work for the employer.
• Employers can come unstuck where an individual was employed a long time ago by the same entity, or the employer has changed its company name so that the employee’s CV may present a different employer entity.

Tips for employers: Recruitment processes should check there is no pre-existing employment relationship. Business purchasers need to do due diligence to consider the nature of the purchase and whether an existing employment relationship arises.

What is required in the written employment agreement?

• A trial period must be agreed in writing between the parties before the employee commences work. If the employment agreement contemplates signatures by the parties, the agreement must be signed. If signatures are not possible, the employer could request that the employee email explicitly stating that they agree to the terms.
• The employment agreement must include a valid notice period. Provided it is clear, notice of termination under the trial period may be different to the general termination provision in the employment agreement.
• The trial period must be in the agreement and state (1) that the employer may dismiss the employee in the first 90 days of employment, in which case there is no entitlement to bring a personal grievance for unjustified dismissal; and (2) the date on which the trial period starts. The parties may agree to a period of less than 90 days, provided this is clearly set out in the written terms.
• Employees should be given written notice of their right to seek advice on the terms of employment and a reasonable opportunity to review the terms and seek this advice.

Tips for employers: Check the drafting of trial periods in employment agreements to ensure the clause is valid, and ensure the agreement is signed before the day an employee is due to commence work. Check if an employee is a union member employed on a collective agreement, in which case there cannot be a trial period introduced inconsistent with the collective employment agreement.

When should the employment agreement be provided?

• If an employee is offered and has accepted a job without mention of a trial period, the employee may be deemed to be an employee, and any later provision of a written employment agreement – including a trial period – may be invalid. It does not matter if the offer was verbal or
in writing.
• The employment agreement should be given to the employee days in advance of the commencement of work, noting the inclusion of a trial period and the right to seek independent advice on the terms.

Tips for employers: Don’t make informal offers of work to potential employees before providing an employment agreement. Ensure that the offer of employment is in writing, with attention drawn to the valid trial period in the agreement. The employee should be told of the right to seek independent advice on the terms and provided a reasonable opportunity to get the advice.

When does the 90-day trial period start?

The employment agreement must specify when the trial period starts. For example, this can be from the date the agreement is signed or from the date work starts.

What about good faith?

Parties to the employment relationship must act in good faith. Employees on a valid trial period must be treated the same as employees who aren’t.

Common reasons why 90-day trial periods have been held to be invalid

With employers still being found liable for trying to dismiss under invalid trial periods, it is helpful for employers to understand common pitfalls. This is just a snapshot of the cases heard by the Employment Relations Authority and Employment Court, where employers were unable to rely on a 90-day trial period to prohibit a dismissal because the trial period clause was deemed invalid.
• An employee has worked for the employer previously.
• The employee was informed about the 90-day trial period after they accepted a verbal or written offer of employment.
• The employee was not given a written employment agreement.
• The wording of an employment agreement does not comply with section 67A of the Employment Relations Act.
• The employee was not advised they were entitled to seek independent advice about the agreement and given a reasonable opportunity for that to happen (in breach of s63A of the Employment Relations Act).
• The employee did not sign the employment agreement or did not sign the agreement until after
starting work.
• The employer gave notice after 90 days.
• The employment agreement referred to a trial period of 3 months, not 90 days, and notice of dismissal was given at 3 months, which was 91 days and therefore fell outside the 90-day statutory timeframe.
• The employment agreement referred to a probationary period, not a trial period. (Language matters: these are not the same).

How to give notice to end employment subject to a 90-day trial period

If notice is not given by the end of the 90-day trial period, the employee is no longer on a trial and their employment will continue.
If an employer gives notice of the end of employment and the trial period is found to be invalid, the employee may raise a personal grievance for unjustified dismissal. Employers are required to:
• Give notice in accordance with the employment agreement, including the correct amount of notice and following any other requirements in the written agreement.
• Tell the employee clearly and unambiguously how and when employment will end.
• If an employment agreement allows for payment in lieu of notice, this does not override the obligation to give the employee notice of the end of their employment under the 90-day trial.

Tips for employers: Employers are wise to schedule reviews of the trial period so that timeframes are not missed. The employer is then in a position to consider how the employment relationship is progressing, any matters that should be raised in good faith with the employee, and/or whether notice of dismissal under the 90-day trial period is to be issued. If giving notice, ensure that it is consistent with the requirements of the trial period.
While notice must be given within the 90-day trial period, the employee’s last day of employment may be outside the trial. For example, a 90-day trial is in place, and the employee is given notice of termination on the 88th day, with one week of notice (as provided for in the employment agreement), which takes the end of employment beyond 90 days.
While section 67B(5) of the Employment Relations Act expressly excludes the requirement to give a written statement of the reasons for dismissal under a trial period, an employer is still required to act in good faith during the employment relationship, including during the notice period. This includes not being misleading, together with being responsive and communicative; therefore, if an employee requests why they are given notice, the employer should advise their reasons.

90-day trial periods are not a protection against all employee claims

While trial periods prevent a personal grievance or other legal proceedings about a dismissal, they do not protect an employer against all claims. An employee may still raise a claim relating to breach of statutory entitlements such as minimum wage or the Holidays Act, or relating to breach of the employment agreement.
Employees may also raise a personal grievance claim for unjustified disadvantage, breach of health and safety obligations, or breaches of good faith.

Summary advice

When used correctly, a 90-day trial period is a useful tool. However, given the frequency with which trial periods are still being incorrectly drafted, implemented, and then invalid notice given, employers are wise to seek advice when contemplating negotiating a trial period or dismissal under a 90-day trial. Trial periods have been strictly interpreted upon challenge, and many employers are still being found liable by the Employment Relations Authority and Employment Court for having made errors in how they have implemented a trial period, resulting in costly awards against them.
If you need advice or assistance, the specialist DTI Lawyers employment law team can be contacted by phone on
07 282 0174 or email

Article supplied by: www.dtilawyers.co.nz

Published in WIRED Issue 72 / MARCH 2024  by Fencing Contractors Association NZ

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How to: Gravity Retaining Walls

In our seventh installment of our retaining walls feature, Nick Liefting takes us through the complexities of gravity retaining walls. 

Crib Wall 

A crib wall is one of the oldest forms of retaining, which is, in simple terms, concrete or timber members criss­ crossing, coupled with large aggregate fill and a very generous lean back. 

In all the years I have been constructing gravity retaining walls, I have never seen a failed crib wall. Yes, I have seen broken and dislodged retaining members, but never a wall that has actually failed.  I believe this is due to two very important factors, which I will touch on in this article. 

Crib walls are gravity retaining walls, constructed from interlocking, precast concrete components, or timber components.  They are filled with free draining material and earth back-fill to eliminate the hazards of hydrostatic pressure build-up behind the wall. 

The open web construction and use of free-draining material, eliminates two common causes of failure in retaining walls, namely hydrostatic pressure build up and the destructive pressure of tree root systems. 

These walls are incredibly flexible and can easily be constructed to follow gentle curves, slopes, undulating terrain and around corners.  The ability to dismantle and re-erect components quickly and easily as required, means crib walls may form temporary or permanent structures as the need dictates. 

Footing preparation 

As this is a gravity wall and depending on height, there is, and can be, a very high vertical ground loading, therefore a high KPA factor is required. However, a Geotech report coupled with an engineer’s design, will determine whether this type of wall is feasible. 

Footing construction 

As the retaining wall has a four vertical to one horizontal (4:1) lean back, this needs to be applied to the footing.  The ideal footing is reinforced concrete, accurately screeded to grade and level, to avoid any imperfections whilst installing the wall units. See table below regarding different wall heights. 

Wall height  1.20m 1.80m 2.40m  3.00m 3.60m  4.00m 5.00m 
Footing width 0.80m 0.80m 1.40m 1.60m 1.80m 1.90m 2.00m  
Footing thickness 0.20m 0.30m 0.40m 0.40m 0.50m 0.50m 0.50m

Wall construction 

There are only two different components to build the wall, which makes it simple. 

Header 

This is what is placed on the footing first, at 90° to the wall line.  It is very important when positioning the headers as they determine the final position of the top of the wall. 

Stretcher 

This is what is placed in a notch at the front of the header and the back of the header, and runs along the wall line at 90° to the header. 

As the wall increases in height, a large aggregate material is placed inside the crib units. It is best gently placed with an excavator, as we do not want any movement in the crib wall units as they are struck with the aggregate. 

As mentioned in my opening paragraph regarding why these walls are less likely to fail; the two main aspects are lean back and the free draining of any water, i.e. through the front of the wall. 

Timber Crib 

These walls are becoming increasingly more popular, and I must admit they are not as “backbreaking” as the concrete components.  The timber is H5 pressure treated and comes with a 50-year guarantee against rot and termite attack.  The service life is well in excess of that. Timber crib construction is much the same as for concrete crib.  

One of the disadvantages of a crib wall is the 1:4 lean back, particularly with, and if, land is a premium. 

MSE Wall 

This stands for mechanically stabilised earth, and also involves another form of wall: RSS (reinforced soil slopes).  

Both types of walls are almost identical in construction, except that the MSE wall has a veneer facing, for aesthetics only. These walls can be constructed to almost vertical. 

  • A Tensar or Geogrid is placed horizontally
  • Good compactable fill is placed on top to a maximum thickness of 300mm, and well compacted

The MSE wall, as mentioned, has a veneer facing which is generally concrete panels of various aesthetic designs.  These are fitted with brackets behind, and are fitted to ribbed reinforcing strips preset in the compacted earth layers. 

These walls do not have a drainage blanket at, or near to, the face, but as I have always maintained, drainage is paramount. The drainage is installed as a trench filled with drainage metal, which is placed behind the Tensar/Geogrid.  At the base of the trench, a drain-coil is placed with 90° tee-offs leading out under the compacted fill to the front of the wall.  It is best to install this as the height increases. 

As this can be a relatively easy wall to construct, I would still strongly emphasise the importance of having an engineer do the design, which is necessary over 1.50m high anyway, or lower if indeed there is a surcharge. 

Concrete Walls 

By concrete walls, I mean cast-in-situ concrete walls.  The foundations for these walls are much the same as for a masonry wall. 

Wall construction 

Cast-in-situ walls are capable of being higher than masonry walls, due to the fact that even with a 250 series block (250mm wide), it only gives a 180 thick block fill. Masonry blocks are only a veneer and do not contribute greatly to the integral strength of the wall.  It is also difficult to have a double layer of vertical reinforcing. Once block fill is placed, it cannot be vibrated, as it would blow the blocks apart. 

Process of wall construction: 

  • As with all concrete work, we need to install boxing, which is a term mainly used for pathways, house slabs, etc.  Once cast-in-situ work is carried out, the term we use is formwork. 
  • Shutters are generally constructed prior to arriving.  These are made using a 17mm form-ply with a 100×50 or 150×50 (depending on height) frame, at 400mm centres. 
  • Form-ply is a black colour and is specifically produced for just that.  Upon removal, it leaves no imperfections (grain, knots), left by normal ply.  Before installing, coat the shutters with form release agent.  This makes for easy removal. 
  • These shutters are bolted onto the concrete slab and also nailed together. It is best to carry out this work on the retained side of the proposed wall.
  • Horizontal walers, e.g., 150×50, are attached along the length of the wall to the back of the shutters.  There are two walers at 50mm apart. 
  • The lower walers will be close to the concrete footing and spread further apart up the wall.
  • Brace the top of the shutters to the back of the concrete footing, creating a plumb and straight line.
  • Between the walers, drill 16mm holes.  These holes are closer at the bottom, and the spacing can increase as we go up the wall. 
  • Say, for example, the concrete is to be 200mm thick, cut 200mm lengths of 20mm PVC and with 1.00m x 16mm threaded rods, place these through the PVC and on through the reinforcing steel and between the walers. 
  • Now repeat the process for the front formwork.  The bracing will not be necessary. 
  • With the 16mm threaded rods, place a large (100mm x 12mm thick) square washer against the walers and tighten. 
  • To help with aesthetics once the forms are released, fasten a 45° beading along the top and in any (what will be) visible corners. 
  • Place concrete – the concrete is generally pumped and is important to be adequately vibrated. 
  • For walls greater than 2.40m high:
    – This will require additional shutters vertically.
    – Once this happens, we have what we call soldiers, which are vertical timbers, similar to the walers, to keep the shutters in a vertical alignment.
    – Formwork must remain in place for at least three days before removal.
    – Once shuttering is removed, the PVC conduits are easily tapped out of the fresh concrete.
    – These holes can then be filled with an approved epoxy.

It is also important to know that concrete can only be placed in 1.20m lifts along the wall and vibrated, then going back to the start and with another 1.20m lift, up to 3.60m maximum. If there is more height, this can then resume the following day. 

I have done a lot of concrete formwork, having used many different methods of formwork/shuttering etc, and have learnt waler and tie bar spacings from experience. 

A Structural Engineer will happily do a formwork design for you if you are not so sure.  I have always over-waled and over-tie bared, but have never had a formwork failure.  When that vibrator hits the concrete, you can certainly hear all the creaking and groaning of the formwork! 

For your information, with a 2.40m height and 200mm thick concrete, there is in excess of 10 Tonne horizontal load at the base of that 1.20m wide shutter. 

Article provided by Nick Liefting
www.nlcontractors.co.nz

Published in Training & Events in WIRED Issue 71 / December 2023 by Fencing Contractors NZ

 

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Making finance easier for SMEs

Alistair Doyle (UDC Finance Regional Manager – Commercial for Auckland and Northern Region) discusses how small and medium-sized businesses can get the best out of a lender in these challenging financial times.

When considering finance as an SME, you will reap the benefits if you get the basics right first time.  First and foremost, have a plan.  Know where you want your business to go and what you need to do to get there. 

“It is important that you demonstrate you know your industry.  Successful SMEs tell us that you don’t need to know everything, but you do need to have the right people in your corner”, explains Alistair.  “Successful SMEs also stress the importance of good financial reporting.  Make sure you have all the relevant, up-to-date paperwork on your business’ finances.  As a lender, we look at the so called ‘4 Cs’ when we’re assessing a credit application – character, capability, capacity and collateral”. 

Getting the best out of a lender will be easier if you understand what information a lender wants from you.  Some of the key information includes: 

  • A basic overview of your business and its owners
  • Any key changes, past or proposed
  • How your business works
  • Regional and industry insights, and future plans
  • How much finance you are seeking and what impact this will have on your business
  • Financial information (see below)
  • What security you are offering

“A good lender should ask open questions and be a good listener”, Alistair states.  “We’re interested in your medium to long-term goals; we want to understand more than the single transaction”. 

Financial information is key to lenders understanding your position and ability to repay your loan.  This financial information includes your balance sheet and profit & loss statements, your debtors and creditors, and your cash flow statements.  A lender will also likely request financial projections. 

“Finance providers like UDC need to be responsible lenders”, says Alistair.  “Businesses often wonder why they are getting asked for projections when their business is making money.  It is important to understand that profit is not cash.  Cash is king, and it is required to pay your financial obligations ranging from loan payments through to wages”. 

There are numerous types of loan payments and structures that can be considered for an SME, and a good lender will present the different options available to you. For example, UDC offers: 

  • Seasonal payments
  • Balloon payment
  • Interest rates, fixed or floating
  • More sophisticated asset finance products as opposed to simple term loans.

It is no secret that times are currently tough for many businesses.  UDC recognise this and has been supporting many of their customers through this downturn.

“Anyone can lend money in good times, but at UDC we pride ourselves on working with our customers, asking questions and looking for solutions”, Alistair explains.  “Of course, we must have comfort that you understand your business and the implications you could be facing, but we want to work with you to come up with the best solutions.  This involves having a good relationship and great communication from both parties; it’s a two-way relationship”. 

If a SME gets the basics right, understands what the lender wants, understands their financial information, and clearly communicates this information, they are on the path to getting the best out of a lender in these challenging financial times. 

The team at UDC Finance is focused on lending to key industries that are asset-intensive and require specialist understanding, including the road transport industry, which UDC has been working alongside for over eight decades. Contact details for all UDC Commercial Managers can be found on the UDC website.  UDC representatives are located up and down the country, so you can get in touch with your local representative, who understands your region, to have a chat and take it from there. 

Article supplied by Alistair Doyle
www.udc.co.nz 
Alistair Doyle joined UDC Finance in 2019, bringing more than 30 years of banking and finance experience to the team.  Prior to his leadership roles, Alistair worked for more than 10 years in various relationship management roles across SME markets in Auckland, at both the National Bank and ASB. In these roles, his prime focus was to work with business owners, providing a wide range of tailored financial solutions. 

This article is a general market commentary and does not constitute financial advice.  UDC Finance Limited lending criteria, fees, standard terms and conditions apply to any loan.

Published in Business, Health & Safety, Environment in WIRED Issue 71 / December 2023 by Fencing Contractors NZ

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Young employees

In some areas, slightly different laws apply to employees under the age of 18 compared with adult employees. 

Employment agreements 

The same fair bargaining rules for employment agreements apply to both young people and adults. 

Young persons aged under 18 years can sign an employment agreement but it’s important that they receive help when agreeing to new terms and conditions. Potential employers must also provide a copy of the agreement to the intended employee, and give them the opportunity to take it away and get advice on the terms. 

All employees have the right to representation when dealing with their employer and they can choose anyone they want to represent them. Parents can be with their child when discussing employment matters with their employer. 

Record the employee’s age in wage and time records

As for all employees, an employer must keep accurate wage and time records for young employees. In addition, if the employee is under 20 years of age, the employer must also record the employee’s age in these records. 

Minimum wage 

There is no minimum wage for employees under the age of 16. 

Young employees aged 16 to 19 years can be paid a different minimum wage than adult workers, if the starting-out wage applies. 

The current minimum wage rates (before tax) are as at 1 April 2023. They apply to employees aged 16 years or over.

Type of minimum wage  Per hour  8 hour day  40 hour week 80 hour fortnight 
Adult $22.70    $181.60 $908  $1,816
Starting-out $18.16 $145.28 $726.40 $1,452.80
Training  $18.16 $145.28 $726.40 $1,452.80

Restrictions on hours worked 

If you employ any school-aged students (under the age of 16), their work hours must be outside of school hours only and in addition must not be between 10 pm and 6 am, including in times that interfere with the student doing school work. 

It is unlawful for businesses to employ school-aged students during school hours under the Education and Training Act 2020, unless they have a certificate of exemption. Failure to do so can lead to fines up to $1,000 for both the parents and the employers. 

Using tractors or other vehicles 

An employer, or someone hiring a contractor must make sure that any worker under 15 years does not: 

  • drive any tractor and any vehicle, other than a car, truck, motorcycle or machinery that weighs 700 kilograms or less
  • ride on any vehicle when it’s towing or is attached to anything
  • ride on anything towed by or attached to any vehicle.

An employee must have a current driver’s licence before driving any motor vehicle on a road. A road includes any car park, yard, or other part of a workplace which has public vehicle access. 

There is a special exception for the agricultural sector which allows young people doing contract work who are over the age of 12 years to use tractors for agricultural work provided they are fully trained or being trained, or they live on the property. 

Age restrictions on where a young person can work 

Employees under 14 

An under 14-year-old cannot work as a babysitter, au pair or nanny without adult supervision because it’s an offence to leave any child under 14 unsupervised. 

Employees under 15 years 

An employee or contractor who is under 15 years cannot work: 

  • on a logging site eg a forest where trees are being cut down or processed 
  • on a construction site
  • in any area where goods or hazardous substances are being manufactured
  • in any area where the work requires lifting heavy weight
  • in any area where the work being done is likely to harm the employee
  • with any machinery or assist work with any machinery.

These restrictions also apply to people under 15 years visiting the workplace. They don’t apply if the employee works at all times in an office in that area, or in any part of that area used only for selling goods or services. They don’t apply to visitors who are under direct adult supervision, on a guided tour or are in areas open to the public. 

Employees under 18 years 

An employer cannot employ anybody aged less than 18 years to work in: 

  • any restricted area of a licensed premises while that area is open for the sale of liquor, unless they are employed preparing or serving any meal, cleaning, repairing, maintaining, altering or restocking the area of any equipment, removing or replacing any equipment, stocktaking, or checking or removing cash
  • direct access to gaming machines in gaming venues such as bars, taverns and clubs where a gaming machine society has obtained a licence to operate gaming machines
  • sex work. 

Employees under 20 

Under 20-year-olds can’t work in parts of casinos where gambling takes place, or undertake any gambling-related duties. 

Settlement agreements 

People aged 16 or 17 years may sign settlement agreements to resolve a dispute with an employer. These agreements will still be final and binding. 

Checklist for employers 

Before your young employee starts 

  • Give them a start date and time.
  • Give them information they will need to know before starting.

When your young employee starts work

  • Give them a copy of their employment agreement.
  • Get their contact details and give them yours and/or their supervisor’s contact details.
  • Get their tax number and ask them to fill in tax forms.
  • Get their bank account number for payment.
  • Record their age in your wage and time records (this is a legal requirement if they are under 20 years).
  • Introduce them to their workmates and supervisors, and explain their roles.
  • Explain what is expected of them with regards to workplace behaviour.
  • Advise them of hazards in the workplace and how to avoid being injured.
  • Advise them what to do in case of an emergency and show them where safety equipment is located.
  • Provide them with personal protective equipment (PPE) (if applicable).
  • Provide them with a uniform (if applicable) and explain the company’s dress code.
  • Provide them with training on how to do the job, taking into account their lack of working experience.

Article reproduced from Employment New Zealand
www.employment.govt.nz 

Published in Business, Health & Safety, Environment in WIRED Issue 71 / December 2023 by Fencing Contractors NZ

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Nine warning signs in business you can’t afford to miss

There are always warning signs in business before trouble appears, but unless you are actively looking for them, they can take you by surprise. 

In military training, they teach you how to look for warning signs that could affect the mission. They call this situational awareness. Potential threats might include the enemy’s position, the current environment, the shape they are in mentally/physically or position if things went wrong and what the next move would be. 

It’s the same in the trades business – there are always warning signs when your business is headed for trouble. 

Having personally coached hundreds of trades businesses over the past twelve years, there are nine warning signs I look for. Deal with these early, and chances of success improve dramatically. Left too long, they can cause major problems at best and failure at worst. 

Early warning signs: 

These usually start small but will become bigger over time if not dealt with. So, tackle them early, and your business will stay out of trouble further down the line.

  1. Bank account is at low tide often
    This is the one that everyone pays attention to. If I have money in the bank then I must be ok, right?
    Not necessarily. If the bank account looks good, but you’ve just taken some large deposits on jobs, or there are suppliers’ bills that have not been paid for yet, then things will look better than they are. However, if the bank account always seems to be low and you are constantly scrambling for money then that is a bad sign.
  2. Owners not getting paid.
    Not being able to pay yourself a regular wage as the owner. Time spent in the business either on the tools or organising should be costed into jobs so the money is there. Too many trades business owners in early years are making less than if they were working for someone else. There should be enough for a wage and a healthy profit as well.
    Same applies to your partner when they are working in the business. If cashflow can’t support their wage, it’s a sign that you are just not making enough for a sustainable business.
  3. Confused by the numbers.
    It’s essential that the numbers you see are accurate and being checked at least monthly. It’s easy to fix one month but hard to fix twelve.
    I still see a lot of tradies’ financials that show incorrect margins because wages and other direct costs are coded as expenses rather than direct costs.
    If you are finding that your profit and loss shows large profits one month, then big losses the next, even though not much else has changed in the business, it’s likely you are not including “Work in Progress”, which takes into account deposits on jobs or costs incurred that can’t be billed yet.
    Not watching the numbers or inaccurate figures is like flying a Boeing 747 with no instruments, while your copilot is yelling instructions as they are looking out the window. Dangerous!
  4. Going in different directions
    When the owners or the team are pulling in different directions. This could be owners being out of alignment on the big issues or a clash between management and staff.
    I am not talking about the odd disagreement here when looking for the best solution to a problem. That’s healthy and challenges wrong assumptions. But when there are core issues that can’t be resolved, deep seated family disagreements or frustrated team members who are working against the company’s objectives – that will cause major problems.
  5. Discounting when things get quiet.
    If work is a little thin on the ground, it’s tempting to discount jobs to keep the team going. But how low is too low?
    A mistake I see a lot is discounting to get that big job and then later discovering they have spent the last six months breaking even or losing money on it.
    Big jobs usually have a few surprises, and it doesn’t take long for extra hours to add up. A builder client I worked with told me at our first session he had completed a $800,000 job and made nothing out of it. That doesn’t happen to him anymore.
    Discounting margins to get the work, combined with growth, is a slippery slope. You won’t really know how profitable the job was until the end, so a buffer is essential. Larger companies can lose a lot of money here and may not realise until it’s too late.
  6. Collecting too many barnacles
    If jobs are consistently taking longer than they should, this will be eating away at your margins. Or you have too many clients who keep complaining about the price, trying to get something extra for nothing.
    Like barnacles on the bottom of a boat, left long enough they accumulate, slowing momentum; over years they will also strip away the paint and water will erode the metal. Too many barnacles will do this to your business too.

Late warning signs 

These are much harder to fix. At this point, the business is in intensive care and requires immediate intervention to survive.
Cashflow will be bad, and it’s likely losses have been accumulating for years; at this stage, time is running out. 

  1. Constantly being chased by suppliers.
    Suppliers are chasing for money that is significantly overdue and some have put the business on stop credit. Your front desk is hesitant to answer the phone in case it’s another creditor asking for money they haven’t got. Payment arrangements get made and then broken, losing further credibility.
    Paying for old jobs with new money from current jobs. Robbing Peter to pay Paul, whoever is yelling the loudest might get something. Jobs are constantly delayed as materials aren’t available to finish the work.
  2. Employees not getting paid on time.
    Not enough money for wages some weeks, pay runs are being delayed. Lots of mistakes and callbacks on jobs as employees are no longer invested.
    At this point, the team has lost confidence in the business and is likely to be applying for more secure jobs. Some have already left and there is a lot of talk around town that the business is in trouble.
  3. Legal
    Owing a lot of overdue money to suppliers and the IRD. One or more creditors have lost patience and have taken legal action against the company to get paid. Costs are accumulating and lawyers are heavily involved, adding even more expense.
    The reality is that at some stage every trade business will experience some of the early warning signs in their business. This could be working through a small cashflow issue with a supplier extending payment terms or making an arrangement with the IRD to pay the GST this month.
    But if there is a cluster of these signs or they are happening often, then act early as they are much easier to fix now than later.
    Even at these late stages, the business can sometimes be turned around, depending on how big the deficit is and if there is enough profitable work to trade out of it.
    However, this often involves convincing lawyers, creditors, staff and the IRD to back your plan which can be a tough sell. I have coached companies who have traded out of these final stages, but sometimes it’s just too late, the hole is too big. Better to deal with the warning signs early, way less stressful and much better odds of success.

If you recognise these warning signs in your business and want to get ahead of them? 

Then book a free business checkup and let’s look at the numbers together. 

Article supplied by Daniel Fitzpatrick
www.nextleveltradie.co.nz
Published in Business, Health & Safety, Environment in WIRED Issue 71 / December 2023 by Fencing Contractors NZ

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Why train staff?

Many businesses wonder why they should train staff. Common reasons we hear for not training staff in the use of plant and equipment, or how to stay safe whilst working for the company include:

‘As soon as they know enough, they’ll be off, contracting on their own, after all my effort.’

‘Nah, it costs too much, they’ll figure it out.’

‘They told me they could do it.’

‘My staff aren’t worth it’.

‘It’s common sense!’

‘A bit of pain will teach them, right?’

Many workplace accidents are happening as workers don’t wish to say, ‘I’m not sure I can do that task’, or they don’t want to let you down, so will give it a go – sometimes with serious outcome.

Powerful Benefits of Employee Training & Development

Trained staff can do a job well and safely, and have pride in the job they do.
Training also:

  • Increases employee performance
  • Creates a stronger workforce
  •  Boosts motivation and engagement
  • Expands knowledge sharing
  • Fosters innovation in the workplace
  • Improves company processes
  • Creates a stronger business brand to clients
  • Aligns with organisational goals

So, who is legally responsible for ensuring you have the correct training and supervision for your task on site?

Under the Health and Safety at Work (General Risk and Workplace Management) Regulations 2016 (the GRWM Regulations), a person conducting a business or undertaking (PCBU) must ensure, so far as is reasonably practicable, the information, training, instruction, and supervision provided to workers is suitable and adequate.

EXAMPLE FROM THE COURTS
WorkSafe v Progressive Meats Ltd [2022]
A 17-year-old worker operating a brisket cutter suffered partial amputation of his thumb, index finger, middle finger, and ring finger on his right hand. The injured worker was trained to use the machine by a co-worker who started on the same day as him. The co-worker demonstrated how to use the machine with one hand. The Judge convicted Progressive Meats on the grounds that, while the company had comprehensive safety and training systems in place, and was driven by the need to maintain safe procedures in all areas, it had not ensured adequate instruction, monitoring and supervision of workers. Progressive Meats was ordered to pay a fine of $280,000 and reparations of $48,000 to the injured worker.
OFFENCE INDIVIDUAL WHO IS NOT A PCBU OR OFFICER (EG A WORKER OR OTHER PERSON AT A WORKPLACE) OFFICER OF A PCBU OR AN INDIVIDUAL WHO IS A PCBU (EG SELF-EMPLOYED) ANYONE ELSE (EG AN ORGANISATION THAT IS A PCBU)
Section 47
(reckless conduct in respect of duty that exposes any individual to whom that duty is owed to a risk of death or serious injury or serious illness)		 5 years in prison or a $300,000 fine, or both 5 years in prison or a $600,000 fine, or both $3,000,000 fine
Section 48
(failure to comply with a duty that exposes an individual to a risk of serious injury, serious illness or death)		 $150,000 fine $300,000 fine $1,500,000 fine
Section 49
(failure to comply with a duty)		 $50,000 fine $100,000 fine $500,000 fine

Failure in this duty could be costly if serious harm were to occur – not just to you but also to the worker and family of the worker harmed.

What Information, Training, Instruction and/or Supervision should you cover?

Different work activities can require different levels of information, training, instruction, or supervision. Certain work activities require higher levels of training or supervision for workers and others in the workplace to remain healthy and safe. This includes remote or isolated work – i.e. your typical rural fencing job. You must engage with workers when making decisions about procedures for providing information and training to workers.
You must ensure, so far as is reasonably practicable, those who carry out work of any kind, use plant of any kind, or deal with a substance of any kind that is capable of causing a risk in a workplace:

  • either have adequate knowledge or experience of similar work so they are not likely to cause harm to themselves or other people, or are supervised by someone who has the relevant knowledge and experience, and
  • are adequately trained in the safe use of all plant, objects, substances, or equipment the workers are, or may be required, to handle, as well as all personal protective equipment (PPE) that the workers are, or may be required, to wear or use.

To work out what training (which includes the provision of information or instruction) or supervision you should cover, think about:

  • The nature of the work carried out by the worker – e.g., what is the worker  being asked to do? What is your workplace like in general?
  • The nature of the risk associated with the work at the time the supervision or training is provided – e.g., what kind of risks are there?
  • The control measures implemented in relation to the work being undertaken – e.g., what control measures are there already?

Consider:

  • What your workplace is physically like – is it a quiet office, a busy workshop, a construction site, an outdoor environment, areas with lots of workers and members of the public nearby?
  • What does your work involve – what machinery, equipment, PPE, and substances are used? What are the control measures in place?
  • Your workers – e.g., what is their skill level and depth of experience regarding the known work risks?

Using this information, work out what skills, knowledge and experience your workers will need to work safely. This includes what information and training is required for dealing with emergencies.
Now work out what training, instruction, information, or supervision will be needed for workers to gain the skills, knowledge, or experience to work safely.

When the Training, Instruction or Supervision should occur

Work out when training/supervision will be required and how you will set aside enough time for this to occur (given the nature and risks involved in the work).
For example:

  • Will new inexperienced workers be intensively supervised until they are shown to be competent to carry out the tasks unsupervised?
  • Will new inexperienced workers be comprehensively trained for all tasks they may need to carry out in one go, or will they be trained/supervised on a task-by-task basis as needed?
  • Will experienced workers only be supervised for new tasks for the first time? Think about how you will alert supervisors/trainers/workers when specific training/supervision is required before starting certain tasks. Think about how you can alert workers when certain tasks require training/ supervision – e.g., will you have warning signs on machinery or at workstations?

You must ensure, so far as is reasonably practicable, that the training and  information provided is readily understandable by any person it is provided to. Trainers and supervisors of workers should be competent. They can be in-house or from external organisations.

Think about the best method of delivering training, instruction, or supervision. Consider your workers’ age and experience, their first language, any cultural differences, and the potential level of understanding of the workers.

For example, if some of your workers find it difficult to read, information or training may need to be provided orally, or through pictures or demonstrations. They may also need to be supported by a buddy or
supervisor.

Key considerations:

  • What level of experience / competence your trainers or supervisors need to have.
  • If your workers have previous experience with the work.
  • If your workers have poor literacy or English as a second language.
  • If your workers learn better one-to-one or in a group.
  • If the training/instruction should be paper, audio-visual, or computerbased (including using tablets or smartphones).
  • If there are relevant formal qualifications your workers could obtain (e.g., unit standards from NZQA).
  • How you will get your workers to show they understand.
  • How you could provide daily reminders of safe work practices (e.g., SOPs, posters or flashcards summarising the key points kept at workstations, and toolbox meetings) once the formal training is completed.
  • If your workers can follow plant and machinery manuals.
  • Workplace Approved Code of Practice (ACOPs) for tasks – have these available and read them.

How to tell the providers of the Training/Instruction/Supervision what must be covered

Think about how to tell supervisors/trainers/workers what the training should always cover, or how supervision needs to be carried out.

Think about how you can tell:

  • Supervisors: what they need to do (e.g., will you have documented procedures?)
  • Trainers: what training is required during new worker inductions and for certain tasks (e.g., will you have documented training procedures or checklists of points to be covered during training?).

FINALLY, you must ensure that your workers have signed:

  • Relevant Safe Operational Procedures
  • Read through the Workplace Risk Register
  • Completed Competency Checklists

Training is valuable – teams grow and learn together. Make training part of your business and stay safe out there. Ask your advisor for help accessing resources, or connecting with trainers.

Luck runs out but safety is good for life.

Take care out there team.

Article written by Debbie
www.ruralsafe.co.nz

Published in Business, Health & Safety, Environment in WIRED Issue 71 / December 2023 by Fencing Contractors NZ

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When is enough, enough?

How do you handle that difficult team member who isn’t performing? At what point do you say enough is enough? 

The employee who gives pushback every time you correct them, the complaints about that person not pulling their weight, mistakes combined with that “I don’t really care” attitude. It can feel like you’re banging your head against a brick wall. 

They take a lot of time and energy to manage. When their name is mentioned, it triggers you into reaction mode, bracing for the next problem that could be coming your way.

If you’ve been in business for a while, you’ll likely have had someone like this at some point. Pareto’s Law would say that if you had 10 employees, there is at least one who is exceptional and one that is difficult to manage. I’ve seen this many times with the thousands of business owners I’ve coached.

Some of the strategies that have worked best with my clients that could also work for you. But keep in mind I am coming from a business coach perspective. So make sure that you check with your HR specialist about the legal aspects which aren’t covered here.

The Litmus test

Remember in science class, you learned how to use litmus paper to tell if a liquid is acid, neutral or alkaline? When litmus paper is dipped into the liquid it changes colour, then you check the colour against the chart to determine if its acid, neutral or alkaline. Red is acidic, green is neutral and purple is alkaline.

Let’s apply the litmus test to your team member to see what effect they’re having.

  1. The Team

How is the behaviour of this person affecting the rest of the team? Is the team getting frustrated and discouraged, are they feeling demotivated, or is there any bullying involved? Is the overall performance of the team being affected? 

  1. The Business

Is this person’s performance affecting how long jobs are taking, or causing too many mistakes at extra cost? Is their behaviour spilling over and affecting your clients or your professionalism as a business? 

  1. You

Are you constantly putting out fires caused by this team member, or every time you hear their name it triggers you into anxiety around what could go wrong next?

I worked with a husband/wife couple in an engineering business with a team of around ten, who had an employee who was their most knowledgeable team member. But his attitude was terrible, it was so bad that the wife admitted to me one day that she didn’t even like going into the office in case she might see him. 

But they both felt powerless, worried about losing him with all the work they had on, and they didn’t think they could replace him at that higher skill level. This guy knew it which made things even worse.

After a few weeks of us working together I encouraged them to take control back. So they started calling the shots again. He was given the opportunity to change his attitude or move on. He decided to move on.

It only took a couple of months to find a good replacement, while the rest of the team stepped up to another gear. They had their business back and enjoyed coming to work again, also the rest of the team was much happier.

Mirror, mirror, on the wall

If you have a problem team member it’s important to take a look in the mirror. Good coaches know that the business is a reflection of the business owner. Your strengths, weaknesses, success and mistakes reflect in your business. The more you work on yourself, the better your business will perform.

  1. Did things go wrong at the hiring stage or has this developed over time?

Only by looking back can we see what really happened. It’s important to learn from any mistakes you might have made so you don’t have to repeat them.

  1. Do you have a good hiring process in place that takes into account attitude not just skills? 

Have you set the right structure in place including written checklists, best practices and training so your team members have the opportunity to succeed? Notice I said opportunity – they still have to do their part.

  1. Are you giving each team member regular feedback, do they know if they are winning or losing?

When we help clients put these systems in place the culture improves and the team takes on more responsibility as the standards are much clearer.

  1. Do you know everyone on your team well, like the names of their partner/children and what’s most important to them outside work?

Business owners and managers who show their team that they really care, have better team culture with employees who are more likely to step up when needed. Also, their best employees usually stay longer. 

What’s changed?

When you first employed that team member there must have been some traits and skills you liked. If they were a good performer initially then what changed? Did you recognise the early red flags? 

Maybe something major is happening at home, their marriage might be in trouble, or a family member is dealing with a health crisis. They could be clashing with another team member or if could simply be the wrong job for them.

It’s important to find out early what your team members can and can’t do. Don’t assume, especially in the 90-day trial period. 

My drainage client recently discovered some large mistakes on jobs from his foreman that cost tens of thousands of dollars to fix. When questioning him and his team this confirmed suspicions that he was not leading the team well and they were getting increasingly frustrated with the lack of direction. After some further training it became clear that this guy was not foreman material, he was in the wrong role. They are now looking at other options for him. If this was done earlier it would have saved a lot of frustration, time and money.

I know I need to do something, but where to start?

One tool we use with clients that works well is our review process. It’s a great way to talk about the elephant in the room without the awkwardness.

By the end of this process it’s really clear to both of you if they are meeting the standard and a track of what to do next. 

My building client had a foreman who wasn’t leading the team well and pushing back at any constructive feedback. My client didn’t like confrontation so he let these things slide a bit too long. 

Once we implemented the review process, the line was very clear on what was not acceptable anymore. The foreman stayed for a short couple of months then left. They discovered some significant mistakes which cost them a few weeks to fix, but at least they could get back on track. 

It’s your move

If you have a difficult team member, they will be costing you a lot more than their salary.  Moving forward there are basically two choices, carry on as you are and hope things get better (which is unlikely), or you can start being proactive and dealing with the issues.

If you challenge them now, they have a chance to become better. Alternatively, if they are in the wrong place, you are not doing them or you any favours by leaving them there. 

Whatever happens next is up to you but being proactive always gives you better options. 

Article supplied by Daniel Fitzpatrick
www.nextleveltradie.co.nz

Published in the Business, Health & Safety and Environment Section in WIRED Issue 70 / September 2023 by Fencing Contractors NZ

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Incident and injury reporting and investigation

How prepared are you for a serious harm notification?  Let’s talk about incident and injury reporting, and investigation.

On the safety front, Rural Safe have had a few months of investigations into serious harm injuries that have taken time and a toll on the business entities involved. 

We have been successful in supporting the injured employees of several very serious incidents, and the business owners in the WorkSafe investigations that have followed.  

The responsibility the business owners have shown through active health and safety recording, training, and assurance in the care of their people has been of great assistance in the process. It doesn’t lessen the impact of the life-changing injury for the employee, but the investigation to ensure that the business had done what was reasonably practicable to ensure safety within the business is important in this type of situation.

The incidents have highlighted a need for people to understand what injuries need notification and how business owners would manage the following investigation that occurs.

Not only does a serious incident or accident in your business change how you look at the business operation, it should also make you question how you would evidence to the regulator that you have the best health and safety management in place. 

Looking at your process for investigation is the first plan. Ensuring you follow a process makes sure that you and your team can be assured of gathering the information required.

What guidelines do you follow? 

Guidelines for reporting and notification of events, injury, illness, incidents and follow-up investigations: 

  • All injuries, incidents, and near misses will be notified to the manager or supervisor as soon as possible.
  • All injuries/incidents are to be recorded in the Injury/Incident Register
  • All near misses must be reported. These near-miss reports will help to identify any trends that may be developing. If needed, new procedures can be developed to avoid reoccurrence.
  • All serious accidents that result in death, injury, illness or serious incident to any person working on our property will be reported directly to WorkSafe NZ as soon as possible. Ensure the scene of the accident is not disturbed unless to save persons from further harm. The scene will remain frozen until all clear is given by WorkSafe NZ.
  • A “Notice or Record of Injury/Serious Harm” form is to be forwarded to the nearest WorkSafe NZ office within 48 hours, if requested by them. A complete investigation will be also required to be undertaken to find the underlying causes of the accident.
  • Inform all employees/contractors of the outcomes of the injury/incident investigation i.e., new hazards and their controls.
  • All contractors working within the business will report all injuries/incidents to management as soon as possible so we can ensure further harm is avoided.

An accident: an event that causes any person to be harmed or might have caused a person to be harmed.

Harm: means illness, injury, or both; and includes physical or mental harm caused by work-related stress.

Hazard/Risk: means an activity, arrangement, circumstance, event, occurrence, phenomenon, process, situation, or substance (whether arising or caused within or outside a place of work) that is an actual or potential cause or source of harm and includes:

  • A situation where a person’s behaviour may be the actual or potential cause or source of harm to the person or another person; and
  • Without limitation, a situation described in sub-paragraph (1) resulting from physical or mental fatigue, drugs, alcohol, traumatic shock, or another temporary condition that affects a person’s behaviour.

If it has the potential to cause harm to someone then it is a hazard/risk.

Near Hit / Near Miss:  referred to as an Incident under the HSWA 2015.  Any event that is close enough to give you a scare and could have caused serious injury if circumstances had been slightly different.

Notifiable events: where a person has received a serious harm / notifiable event injury, or a serious incident has occurred where there is a high potential to have caused serious harm / notifiable event. Notifiable events are categorized as Injuries, Illness and Incidents (serious near misses). These events are listed below:

Notifiable injury or illness

Means

a) Any injury requires the person to have immediate treatment.

–   As an inpatient; or 

–   For any of the following reasons:

  • Any amputation of any part of the body, or
  • A serious head injury, or
  • A serious eye injury, or
  • A serious burn, or
  • The separation of the skin from an underlying tissue (such as degloving or scalping), or 
  • Spinal injury, or 
  • The loss of a bodily function, or serious laceration,

b) An injury or illness that requires the person to be admitted to hospital for immediate treatment.

c) An injury or illness requiring the person to have medical treatment within 48 hours of the exposure to a substance. 

d) Any infection to which the carrying out of work is a significant factor, including any infection that is attributable to carrying out work:

  • With micro-organisms, or
  • Involves providing treatment or care to a person, or 
  • Involves contact with human blood or bodily substances, or
  • Involves handling or contact with animals, animal hides, skins, wool or hair carcasses or animal waste products, or
  • Involves the handling or contact with fish or marine mammals.

e) The following zoonosis conditions involved with contact or handling of animal’s hides, skins, wool or hair, carcasses, or animal waste:

  • Leptospirosis
  • Anthrax
  • Brucellosis
  • Psittacosis (from parrots)
  • Seasonal Influenza of animal or avian flu

f) Or any other injury or illness as prescribed by regulations.

Notifiable incident

Means an incident in relation to a workplace that exposes the worker or any other person to a serious risk to that person’s health or safety arising from immediate or imminent exposure to:

  • An uncontrolled escape, spillage, or leakage of a substance,
  • An uncontrolled escape of gas or steam,
  • An uncontrolled escape of pressurised substance, 
  • An uncontrolled implosion, explosion, or fire,
  • An electric shock, 
  • A fall or release from height of any plant, substance, or thing,
  • The collapse, overturn, failure, or malfunction of, or damage to and plant that is required to be authorised by regulations,
  • The collapse or failure of an excavation or any support shoring of an excavation,
  • The collapse or partial collapse of a structure,
  • The interruption of the main system of ventilation in an underground excavation or tunnel,
  • The inrush of water, mud, or gas, in workings in an underground excavation or tunnel,
  • A collision between two vessels, a vessel capsizes, or an inrush of water into a vessel.

Includes any other incident declared by regulations to be a notifiable incident for the purposes of this section; but does not include an incident declared by regulations not to be an incident, or not to be notifiable.

Documentation you will need to supply to the regulator

Key to any investigation is the documentation that supports you have undertaken steps to ensure a healthy and safe business to operate in.

  • A commitment from the business owner to Health and Safety in the workplace 
  • Evidence to show engagement, duty of care and due diligence in the business for health, safety and wellbeing.
  • Training in the operation and equipment that will be used for the job. Ongoing competency to operate.
  • Management of the known risks and hazard identification with good controls in place reviewed regularly.
  • Prestart and toolbox discussions about what’s happening today, how we can be safe.
  • Management of hazardous substances and how to use these safely.
  • Emergency planning – how do we get help, where are we, first aid, fire be prepared who is the first aider?
  • Accident and incident management and reporting of the event, review of the process and what can change to make it safer.
  • Plant and machinery maintenance register
  • Management of visitors, contractors, to your worksite 
  • Reviews of the operation and changes made if required.

Ensuring you have support along the way is valuable and as a team, you need to talk and listen to what each person in your business has to say about safety. 

A STOP. THINK. DO. MOMENT is all it takes to change the outcome of a life in some situations. Speaking up about unsafe actions or situations should be welcomed and working together is the best solution to change the safety culture of your business. The conversation with a family who has lost or had an injured loved one from an incident at your workplace is not a place you want to be.

Check into WorkSafe for guidelines or call your consultant for information to help you understand your responsibilities as a business in every changing Health and Safety world.

She’ll be right is not always right. 

Take care out there team.   

Article supplied by RuralSafe
www.ruralsafe.co.nz

Published in the Business, Health & Safety, Environment Section in WIRED Issue 70 / September 2023 by Fencing Contractors NZ

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