In this abridged version of his May newsletter, NZSA CEO Gary Morrison talks vulnerable workers, ACC changes, business start-up guidance, NZSA board cadet vacancy, and more.
Isn’t it amazing how quickly events can change in today’s world! Two months ago, my commentary was reflecting on how the new year had kicked off in a positive manner with our members reporting strong business growth and improving economic indicators.
Today it is a very different picture as events totally outside of our political control now look likely to see New Zealand’s growth stall, inflation to rise rapidly and cause ongoing concerns about fuel supply continuity.
Whilst this has significantly impacted business confidence levels, it is pleasing to note that the security sector has proven to be very resilient to economic challenges, and I remain confident that my earlier prophecy of a busy year for our members will prove correct.
Fuel supply
The ongoing closure of the Strait of Hormuz has significantly impacted fuel supply throughout the world however New Zealand’s stocks, either landed or in-transit, remain reasonably strong due to our supply agreement with Singapore.
We have previously communicated the Government’s Fuel Response Plan 2026 that includes four escalating phases and whilst there is no short-term pressure to move from the current Phase 1, we have registered our sector with MBIE as an Essential Service provider, and identified those specialist service areas (such as Hospital security staff) that should be considered as either Band A – Life Supporting Services or Band B – Economically Important Services, should there be a need to move to Phase 4 and prioritise fuel supply.
To support our own knowledge of the composition of the security vehicle fleet we conducted a brief survey of members that indicated the following breakdown: Petrol 34%, Diesel 33%, Hybrid 32%, and Electric 1%.
We will monitor this on a regular basis and expect that we will see a continued uptake in hybrid vehicles in lieu of petrol and diesel as technology improves and running costs come under increased focus.
Part 6A – Vulnerable Workers
In July 2021 an amendment was made to the Employment Relations Act 2000 that added certain types of security services to the employees protected by Part 6A of the Act (continuity of employment if employees’ work affected by restructuring). This extended the same protections to Security Officers as those already held by cleaning, catering and some laundry and caretaking workers.
Following the amendment being passed, the NZSA provided its members with guidance on application of the legislation based on advice from our lawyers, and as followed by other impacted industries. In simplified terms, our interpretation was that the legislation provides the right for employees to transfer to a new employer on their existing employment terms and conditions where a contract transfers to a new provider.
This interpretation was recently challenged by one of our members based on an opinion provided by their legal representatives.
Given that this is an important issue for the industry, and in the absence of any precedent setting case law, the NZSA consulted with the member and agreed to contract Michael Heron, KC, to review the legislation and provide a definitive legal opinion.
Michael Heron’s legal opinion supported the NZSA’s interpretation (and that of other industry sectors) and we now intend to engage with the HRSIG (Human Resources Special Interest Group) to develop a Good Practice Guideline covering application of Part 6A in a security context. The Guideline should be available on the NZSA website later this year.
ACC changes
ACC announced several changes in April that will impact levy invoices due in July. Key changes include:
- All payment plans will now incur interest (plans previously provided a 6 month no interest plan).
- Penalties now have a 30-day payment period and penalty interest at 1.7% per month.
- Businesses in the Experience Rating Scheme will incur a 7.2% Levy increase.
Business start-up guidance
New Zealand has a culture of encouraging people to start up their own businesses however the sad reality is that some 90% of start-ups fail.
Whilst the numbers are not that high for the security industry, it still happens regularly and is a cause for concern given it impacts customers, staff and the reputation of the industry.
As the regulator for the security industry, the Registrar for the PSPLA is very mindful of this risk and has traditionally used caution when granting company or individual licences for those who do not have experience in running a business.
Given the absence of any recognised training in the fundamentals of running a business, the NZSA has developed an online training programme that includes 4 modules plus references and links:
- Getting started: Who can set up a business; Establishing what type of business; Registering the business
- Financial Fitness: Accounting and financial obligations; Professional advice and support
- Gaining and maintaining a security license: Company and personal security license; Annual security license returns
- Good business practices: Health and Safety requirements; Policies and operating procedures.
- Reference documents and links
The Business Start-Up Guidance modules are nearing completion and will be available on the NZSA Training Hub within the next few weeks.
It is also interesting to note that there has been strong interest in the programme from other sectors such as Commercial Cleaning and Electrical who experience similar issues with business start-ups. They are considering how they can utilise the training modules and integrate their own specific licensing or regulatory requirements.
Compliance advisory support – new partnership
The NZSA has partnered with Rosemary (Rosie) Killip of Building Networks to provide members with access to specialist compliance advisory support on an as-needed basis.
The partnership gives NZSA access to expert advice on access control compliance, including practical guidance on FAQs for members.
This arrangement strengthens NZSA’s ability to give members clear, practical guidance on SS3/2 requirements, building consents, exempt work, Certificates of Acceptance, IQP work, and related compliance issues. To contact Rosie, see the Building Networks website.
Rosie is also assisting the NZSA currently with a submission to MBIE concerning the Draft Compliance Schedule Handbook that fails to provide any example of required inspections and lacks specifics.
Nominations for NZSA Board Cadet position
As covered in our last newsletter, we launched the NZSA Board Cadet programme in 2024 providing an opportunity for representatives from two organisations to join the board in a non-voting capacity.
The programme provides a fantastic opportunity for talented individuals looking to develop their skills and capabilities, particularly in governance focused roles and the current cadets speak very highly of their experience.
We have one vacancy coming up in the next few months and have started advertising the role.
NZSA Membership renewals
A massive thank you to all members who have recently renewed your NZSA membership.
As a Not for Profit with voluntary membership, our continuation is always dependent on having the support of our members and to see such a high proportion of invoices paid within the first month validates that we must be providing benefit and value to our members.
Also, a reminder to those who are under cashflow pressure, we are happy to arrange a monthly payment plan.
