fica
About now we are looking at a sector of our industry that is being almost self-quarantined from the effects of Coronavirus and this is the silviculture contractors. For once this industry group is operating pretty much business as usual and I hope when I pick up this column to read in 4 weeks' time that things have not changed (I am touching wood when I write this!). The indications from our contractors in this sector are that continuation of planting for this season coming up is being driven by a positive forecast that the forest industry will have recovered from the crisis situation of the last few months. The Forest Industry Contractors Association (FICA) has spent a considerable amount of time discussing and meeting with the silviculture contractors over the last few years as a collective group under the umbrella of SAG Silviculture Action Group.
This group started post a damning report from the Labour Inspectorate about the poor practices around employment and the impacts to the workforce across a number of silviculture contractors. After this report was presented to the industry, solutions followed from several more meetings together and a significant "state of the nation" report. A positive outcome of this work was that FICA increased its membership of silviculture contractors from two to twenty-two which was a great start to having them under the umbrella of a professional organisation and with a common voice.
Where we are today, is that we have a far greater understanding of what and how we are working to overcome
es. Although the challenges that we identified at the beginning of SAG, have not fundamentally changed, there is a definite lift in the confidence of this sector of the industry as they have seen some wins and that means light at the end of the tunnel. Last year all parties spent time at the Immigration NZ (INZ) office door and worked with those applying to bring in migrants for seasonal work with a system that seemed to be broken. We made inroads and have a good working relationship with INZ and last month were contacted about being considered as an industry to generate a collective sector agreement which is great news and we cross our fingers that this happens in 2020.
Recruitment and retention are at the top of the pile of challenges and this, of course, has impacts on the profitability of the contractor as downtime for training becomes a real cost to the business. FICA encourages all contractors to take up certification but on top of all the compliance costs this again puts pressure on the financials. Silviculture contractors are very aware of their social responsibility of supporting its people and the desire to grow them and offer a career pathway but again it's the cost impact on the bottom line.
Last month FICA put on a second costing workshop for this sector, this time a practical interactive four-hour session that had the eighteen participants engaged in open discussion, sharing of ideas and agreeing on a strategy going forward.
Out of this gathering there was some interesting points made that seem to have morphed themselves around the workforce that is available at this current time. Conversations provide a mentoring role. In their eyes the workforce has gone backwards and the money no longer is the incentive. When a person comes to work from being on the benefit, if they can work three days they are getting just over the benefit and often then decide to not show for work the other two days of the week. This intergenerational effect of the WINZ benefit sets the mind up to calculate that they get just a bit more to satisfy themselves they can beat the system and have that bit more money.
If it's not the work ethics of these new employees, it's the drug testing and compliance costs that come with that.
PHasOtorSal around many of these issues needs to be added to the budget model to copFeitting with modern day characteristics.
Staff turnover then becomes a problematic challenge and until the industry can improve its attractiveness as a sustainable employer and have good work ethics this struggle will only get worse. It is a labour intensive sector, with people being their greatest asset to do the mahi and to add value to the forest.
The fact that they are the first step in the value chain is often overlooked but at a 60-75% cost component of the budget, hiring people is their main job description.
With a figure derived from costing models that now looks double that of ten years ago, the contractors are literally gFouilnlygStocked backwards. Unless there is a two-way understanding of thSeervice changes to the costing structure for silviculture, there are contractors out there that we believe are losing money.
SAG have a number of further initiatives that are being considered including a collective employment agreement through First Union, a generic costing model template that can be adapted but used as an industry guideline and a template legal contract. As well, a training programme where milestones are acknowledged with certificates and recorded in a logbook that can be transferred through the industry. Much more along the lines of training for task which can make it easier to enter and move around the industry.
FICA's national Frontline Recruitment campaign started last month and we are focusing on silviculture and a recruitment drive for the coming season. This campaign will bolster the information out to the public to support informed choices and a positive image for forestry that will run over the next 12 months. The obvious sector to start with is Silviculture and Establishment and will be across the nation when you get to read this column.
We continue to lift this sector up to get the respect it deserves and ensure the calibre of the contractors' business acumen is well across the "true and real" costs of the operation. It's a great training ground for the industry and as the billion trees indicator needs to deliver on government strategy, it is under the microscope of the population at large.