Latest news with #MBIE
Otago Daily Times
3 hours ago
- Business
- Otago Daily Times
Legal action against MBIE over flexible working
The Ministry for Business, Innovation and Employment recently introduced a new flexible work policy intended to align with the government's directive to restrict flexible work arrangements for public service workers, including reducing days working from home. That directive is also subject to legal action by the Public Service Association (PSA) and the union has filed proceedings with the Employment Relations Authority (ERA). "Cracking down on flexible work is the wrong approach from employers in 2025," PSA national secretary Fleur Fitzsimons said. The union originally raised objections to MBIE's flexible work guidance last month, but attempts to resolve the dispute through mediation had failed, she said. "MBIE hasn't been willing to back down, leaving the PSA with no choice but to take this step to protect the rights of MBIE staff included in existing agreements." The ministry could not just change existing agreements, which were protected under the collective agreement, she said. "The collective agreement binds MBIE to supporting flexible work, so its new policy is simply unlawful. "We are seeking a determination from the ERA that MBIE is violating the 'flexible by default' approach which forms part of its collective agreement with members." The PSA hoped the authority would allow the MBIE case to be joined to the broader case against the Public Service Commission. MBIE response MBIE's chief people officer Jennifer Nathan said consistent with the Public Service Commission's Flexible Working (work from home) guidance for the public service received last year, MBIE had updated its flexible working policy in line with government expectations. "Conversations with the Public Service Association regarding the updated policy have been ongoing, including attending mediation with the PSA on 8 July. To date the parties have been unable to reach an agreement on resolving the PSA's concerns. "MBIE does not accept the PSA view that the review and refresh of the flexible working policy and procedures is a breach of the Collective Agreement." MBIE was notified yesterday that the union intend to file legal proceedings and was awaiting more information, she said.
RNZ News
9 hours ago
- Business
- RNZ News
PSA takes legal action against MBIE over flexible working
PSA National Secretary Fleur Fitzsimons. Photo: RNZ / Samuel Rillstone A union has filed legal action over what it says is the Ministry for Business, Innovation and Employment's disregard of existing flexible work arrangements protected under the union's collective agreement. MBIE has recently introduced a new flexible work policy intended to align with the government's directive to restrict flexible work arrangements for public service workers, including reducing days working from home. That directive is also subject to legal action by the Public Service Association (PSA). The union has filed proceedings with the Employment Relations Authority (ERA). "Cracking down on flexible work is the wrong approach from employers in 2025," said PSA National Secretary Fleur Fitzsimons. She said the PSA originally raised objections to MBIE's flexible work guidance in June 2025, but attempts to resolve the dispute through mediation had failed. "MBIE hasn't been willing to backdown, leaving the PSA with no choice but to take this step to protect the rights of MBIE staff included in existing agreements," she said. She said MBIE could not just change existing agreements which were protected under the collective agreement. "The collective agreement binds MBIE to supporting flexible work, so its new policy is simply unlawful. We are seeking a determination from the ERA that MBIE is violating the 'flexible by default' approach which forms part of its collective agreement with members," she said. The PSA was hoping the ERA would allow the MBIE case to be joined to the broader case against the Public Service Commission. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Scoop
a day ago
- Business
- Scoop
Thermally Broken Aluminium: The Overlooked Climate Solution In Modern Construction
As New Zealand moves toward a lower-emissions future, much of the national focus has landed on EVs, energy supply, and agricultural reform. But one of the most impactful changes is happening quietly, through the windows. Specifically, through better aluminium window and door systems. With the latest H1 Building Code updates placing higher expectations on energy efficiency in residential and commercial buildings, thermally broken aluminium joinery has become a crucial, though often overlooked, piece of the climate puzzle. Why Joinery Matters In most homes, windows and doors are the weakest link. Poorly performing frames allow heat to escape in winter and creep in during summer, forcing households to rely more heavily on heating and cooling systems. The result: more energy use, more carbon emissions, and higher power bills. Aluminium windows are a popular choice in New Zealand construction because they're durable, low-maintenance, and architecturally versatile. But standard aluminium conducts heat, meaning it readily transfers warmth in or out of the home, depending on the season. That's where thermal breaks come in. What Is Thermally Broken Aluminium? A thermally broken aluminium frame includes an insulating material (usually a polyamide strip) placed between the inner and outer parts of the frame. This break dramatically reduces heat transfer, significantly improving thermal performance without compromising structural strength. For architects and builders, this technology allows for: Larger glass spans without compromising insulation Sleek, modern profiles that meet energy standards Greater comfort for occupants in both hot and cold regions While common in Europe and parts of North America, thermally broken joinery has only recently gained mainstream attention in New Zealand. That's changing fast. H1 Code Changes Are Raising the Bar The Ministry of Business, Innovation and Employment (MBIE) rolled out new H1 energy efficiency requirements that took effect in stages from 2022 onward. These changes raised insulation standards for windows, walls, and floors, especially in colder climate zones. In most cases, achieving compliance with new window performance standards means using thermally broken systems. In high-spec builds or passive homes, they're non-negotiable. Yet awareness still lags, especially in the residential market. Many builders and developers default to standard aluminium because it's familiar, cheaper upfront, and easier to source. But over the life of a building, that decision can cost thousands in lost energy performance. Performance Without Aesthetic Compromise Modern thermally broken systems are no longer chunky or industrial. Some of New Zealand's leading architectural window manufacturers are producing slimline, minimal, and fully custom aluminium systems that meet the highest performance specs. That includes: Hidden or rebated frames for seamless glazing Custom anodised finishes for aesthetic consistency Large-format sliders and pivot doors for maximum light and indoor–outdoor flow Integration with thermally insulated facade systems The result? Warm, dry, and energy-efficient buildings that don't compromise on design intent. Looking Ahead If New Zealand is serious about lowering building emissions and improving housing quality, we need to stop treating thermally broken windows as a luxury upgrade. They're now a core part of good building practice, essential to meeting both regulatory and climate goals. As local suppliers expand and architectural demand grows, thermally broken aluminium joinery is set to become the new normal. The sooner that shift happens, the better it will be for both the environment and the people living inside the buildings we create.
RNZ News
a day ago
- Business
- RNZ News
Construction firms offering large discounts to avoid collapse
Photo: Construction companies are struggling to stay afloat as orders dry up amid tough economic times, with some slashing quotes by as much as 50 percent to get whatever work they can. Latest data from the Building Research Association of New Zealand showed that liquidations in the construction sector rose 37 percent in February year on year, accounting for 31 percent of all liquidations nationwide. Latest figures from the Ministry of Business, Innovation and Employment (MBIE) showed a similar trend. The number of businesses with an MBIE construction code that had a liquidator appointed nearly doubled for the year ending 30 June 2023 compared to the previous year, climbing from 210 in 2022 to 416. By the end of June 2025, 687 companies with an MBIE construction code had a liquidator appointed, marking a more than threefold increase in just three years. Amid the sharp rise in closures, some Chinese construction firms had resorted in cutting quote prices and squeezing already tight margins to stay in business. Henry Wang, a former carpenter who had worked in the construction industry for eight years and now ran his own business, said pay rates for carpentry work had dropped sharply compared to the industry's recent peak. "The market was booming from 2020 to 2022," Wang said. "At that time, a carpenter could earn around $150 to $160 per square meter on a residential build. However, now payments have fallen by as much as 40 to 50 percent." Photo: Supplied/ Unsplash - Josh Olalde Wang said he began feeling the pressure in 2023, as layoffs started to spread across the construction sector and available work began to dry up. Wang, who worked for a Chinese construction firm, recalled long hours during the boom years. "We used to work from 7am to 6pm - sometimes even until 7pm - including Saturdays when business was really busy," he said. "But gradually, the company could only guarantee three days of work a week," he said. "By the end of 2023, they started cutting staff because there simply wasn't any work left." He estimated that between 60 and 80 percent of the workers at his former company were made redundant. He eventually left as well, citing a lack of available work. Now the owner of a small construction firm with six employees based in Auckland, Wang said most of his clients were in the commercial building sector. He remains cautious about the sector's outlook. "I'm not optimistic about the market this year or even next year," he said, noting that the project pipeline heading into 2026 is alarmingly thin. Wang said the downturn had triggered a destructive price war in the industry, which he found deeply concerning. "There isn't much work out there," he said. "A lot of companies are dropping their quote prices. Some are even slashing them by half just to win clients and stay in business. All I can do is hang in there and try to survive these next two years." Photo: RNZ Steven Jin, director of commercial fit out company Unique Constructions, felt the same pressure. Jin started his business in 2010, recalling a boom period between 2016 and 2018, when a surge of Chinese restaurants and retail shops opened across the market. However, that momentum faded quickly. Business confidence took a hit during the Covid-19 pandemic, and his project volume started dropping sharply from 2023. "Compared to 2018 and 2019, our business volume fell by more than 60 percent in 2023 and 2024," he said. Jin described the current construction market as bleak, noting that many contractors he had worked with had also been forced to slash their quote prices to remain competitive. "It's very challenging to do business right now," he said. "We're squeezing margins, sometimes down to just 5 percent or even operating at no profit at all. But we have no other choice. With the market like this, the only way to compete is on price." Jin said he didn't expect the market to rebound this year. For now, his goal is simple: Survive and stay afloat. "Everyone is competing against each other," he said. "Even big construction companies, their goal is to survive and avoid liquidation." Fletcher Building announced Wednesday it was considering the sale of its construction division assets following a strategic review of the business. Julien Leys, chief executive of the Building Industry Federation Photo: Supplied Julien Leys, chief executive of the Building Industry Federation, said New Zealand's building sector was largely made up of small businesses, typically employing between three and five people. He said Asian-owned construction companies accounted for roughly 22 percent of the market, contributing as much as $48 million per month in construction activity in the Auckland region. Leys said Asian construction companies were facing the same challenges affecting developers across the country, including a slowdown in residential property sales. "It's just a fact that we're seeing a downturn across the sector," he said. "People are finding it harder to get work, particularly those smaller builders." Leys said while the construction sector might see an uptick in activity by the middle of next year, the current market remained challenging. "There's still uncertainty that is affecting people making decisions about whether to start a build or a project," he said. "That uncertainty means all the subcontractors and contractors involved in those projects don't get work. "Right now, what we're seeing is that their order books - where they'd usually have an actual pipeline of activity for the next 12 months to work on - pretty much there's nothing in it." According to the latest building consent data from Stats NZ, 33,530 new dwellings were consented in the year ending on 31 May, a 3.8 percent decrease against the same period in 2024. Gareth Kiernan, chief forecaster at Infometrics Photo: RNZ / Rebekah Parsons-King Gareth Kiernan, chief forecaster at Infometrics, said New Zealand experienced a residential construction boom in 2022, with approximately 51,000 consents issued, driven by surging house prices and historically low interest rates. However, he said it had since become much more difficult for developers to bring projects to market at a cost buyers were willing to pay. House prices fell substantially through 2022 into 2023, while interest rates and building costs continued to climb over the same period, he said. "Residential construction firms and the businesses supplying materials expanded their capacity a lot during the boom to meet demand," Kiernan said. "But now, there's just too much capacity across the industry, and that's causing issues for firms and leading to those liquidations." Kiernan said net migration shifts had also contributed to the softening of the housing market. "There was an undersupply of housing, particularly in Auckland," he said. "We haven't been able to keep up with demand through much of the last decade. "We had a migration boom initially when the borders reopened in 2023. But that's slowed away again, and now the housing market is still pretty soft. "Potentially, over the next year or so, we could be starting to move into a position with the housing market rather than being undersupplied to actually oversupplied. Meanwhile, Kiernan said a downturn in non-residential construction had emerged over the past six to nine months, as broader economic weakness began to weigh on commercial developments, adding further pressure across the sector. "Previously, commercial building was still holding up relatively well," he said. "But now we're seeing a flat to downturn in residential construction, and a downturn emerging in commercial building as well." Ankit Sharma, chief executive of the Registered Master Builders Association Photo: Supplied Ankit Sharma, chief executive of the Registered Master Builders Association, said builders nationwide, particularly small and family-owned firms, were under significant financial strain, driven by tightening profit margins, escalating costs and, in many cases, a lack of forward visibility. Sharma said residential activity expectations were beginning to lift in some regions. "We're starting to see early signs that the tide may be turning," he said. "In some regions like Central Otago, builders are telling us they're as busy as they've ever been." However, Sharma said the recovery remained uneven, particularly across parts of the upper North Island, including Auckland, where the pipeline of new work remained uncertain. Still, he said momentum was beginning to build. "Government initiatives such as the Investment Boost scheme and proposed procurement reforms are welcome steps that could help unlock activity and give firms greater confidence to invest," he said. Kiernan said the construction sector would eventually adjust to more sustainable levels of activity. "It's a case of almost like much of the rest of the economy," he said. "Things were really overheated in 2021 to 2022, and now it's kind of needing to move back, or consolidate back to what are more sort of sustainable levels of activity that can be kept going over the medium term."
RNZ News
a day ago
- Business
- RNZ News
Rents fall for first time since 2009
Auckland's rents were down almost 2 percent year-on-year. Photo: RNZ Rents have fallen on an annual basis for the first time since late 2009, property research firm Cotality says. Its latest data points to an update from the Ministry of Business, Innovation and Employment, which showed national median rents in the three months to May were down 0.3 percent from the year before. It follows reports of drops in the price being asked for advertised rental properties . Cotality chief economist Kelvin Davidson said it was a notable change after big rental increases between 2021 and 2023. "I think it's quite significant. There aren't many periods in the past where rents have fallen. The latest numbers are only down slightly but you have to go back to 2009 to find a period where annual rental growth on these numbers has been negative and before that it was the late 1990s. So around the Asian financial crisis and the GFC." He said it showed a shift in the market. Auckland and Wellington had experienced bigger drops. Auckland's rents were down almost 2 percent year-on-year. Dunedin experienced strong rental growth, up almost 10 percent. Hamilton's were also up, but only about 4 percent. "I'm not saying it's easy to be a tenant by any means but the growth rate has petered out. That's consistent with the fact that rents are already high. That's a natural handbrake on any further growth, as well as migration coming down to reduce the marginal extra demand for property. And of course more listings on the market too." He said a change in the composition of the rental market, with more, smaller, properties coming on to the market could have influenced the drop but would not be the full story. Davidson said it should not be expected that rents were going to decline steadily for a long period of time. "What's more likely is that you get a long flat patch and that's how the rental market tends to adjust, the rents go flat for a while and affordability is improved by incomes going up. "Of course the flipside is for landlords there's going to be continued challenges in terms of getting rental increases through if that's what they're looking to do." The data showed house price values nationwide increased 0.2 percent in June but were down 0.1 percent over three months, In the 12 months to June, 85,951 properties changed hands. The average gross rental yield now stand at 3.8 percent, which is the highest level since mid-2016. This measures rental income as a proportion of the value of property. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
