NZEI TE RIU ROA

PŪRONGO Ā TAU

NATIONAL EXECUTIVE REPORT 2020

NZEI TE RIU ROA

NATIONAL EXECUTIVE

L to R: Tute Porter-Samuels, Byron Sanders, Raewyn Himona, Liam Rutherford, Paeone Goonan, Mark Potter, Manu Pohatu, Barb Curran, Winnifred Morris, Julie-Anne Roberts, Phonderly Siohane, Lynda Stuart, Virginia Oakly

L to R: Tute Porter-Samuels, Byron Sanders, Raewyn Himona, Liam Rutherford, Paeone Goonan, Mark Potter, Manu Pohatu, Barb Curran, Winnifred Morris, Julie-Anne Roberts, Phonderly Siohane, Lynda Stuart, Virginia Oakly

NZEI TE RIU ROA

TE REO AREARE

Back row (L-R): Toma Waihirere, Lisa Johnston, Kaareen Hotereni, Te Aroha Hiko, Ripeka Lessels, Michelle Haua, Evelyn Henare, Sophia Takimoana, Barney Manaia

Front row (L-R): Lovi Collier, Paeone Goonan, Winnifred Morris, Ngaromo Beazley, Virginia Heta, Laura Dunlop, Margie Robson

Apologies: Manu Pohatu, O’Sonia Hotereni

Back row (L-R): Toma Waihirere, Lisa Johnston, Kaareen Hotereni, Te Aroha Hiko, Ripeka Lessels, Michelle Haua, Evelyn Henare, Sophia Takimoana, Barney Manaia

Front row (L-R): Lovi Collier, Paeone Goonan, Winnifred Morris, Ngaromo Beazley, Virginia Heta, Laura Dunlop, Margie Robson

Apologies: Manu Pohatu, O’Sonia Hotereni

1.0 MESSAGE FROM THE PRESIDENT

Educators are dedicated and innovative professionals and the Covid-19 crisis certainly proved it. The global pandemic has had an unprecedented impact on every aspect of society, and its effects will be felt for years to come.

As the lockdown swiftly became a reality in late March, educators across the nation stepped up to ensure the continued learning and personal connection and wellbeing of our ākonga. The innovation, commitment and care that educators displayed – even while dealing with their own personal situations at home – was something of which we can all be very proud.

Even during this time in which our communities and the economy were hugely impacted, we achieved a number of wins for the sector following years of campaigning.

More than 22,000 school teacher aides were offered a life-changing pay equity settlement including pay increases of up to 28%, following a pay equity process that NZEI Te Riu Roa initiated with the Ministry of Education in 2016.

Taken together with Living Wage pay increases won during collective bargaining late last year, most teacher aides will now receive pay rises of 23-34% across the course of 2020, recognising the value of their skills, responsibilities and experience.

We’re now looking forward to what we can achieve together for all other support staff, including administrators, kaiārahi i te reo, science technicians and librarians. This settlement paves the way for the other pay equity work that is already in progress. E ai ki te whakataukī, mā pango, mā whero, ka oti te mahi.

Meanwhile, in early childhood education, which has been severely underfunded for years, Budget 2020 delivered a first step towards pay parity for ECE teachers – aligning their minimum rate with all other qualified teachers. Soon after, the government also announced restoration of the 100 per cent ECE funding band that had been scrapped by the National Government in 2010.

These major wins are all the more impressive against the backdrop of the global Covid-19 economic fallout.

As attention turns to the upcoming election, the post-Covid environment has required the refocussing of our original campaign plans. With New Zealand in recovery mode, much of the rhetoric is about “shovel-ready” projects. However, if we want to have a truly people-centred and Just Transition out of the Covid-19 crisis, it is vital we also invest in our social infrastructure – including health, the arts, and of course our education system.

Now is our opportunity as a nation to create a world class, inclusive public education system that will meet the needs of our tamariki, their parents and whānau in the post-Covid-19 recovery environment – and one that will give them the resilience to cope with future challenges to come. He rā anō ki tua – there is another day ahead.

Liam Rutherford
NZEI Te Riu Roa President, Te Manukura

2.0 MESSAGE FROM THE NATIONAL SECRETARY

While the last round of bargaining for teachers and principals addressed many of the pay issues there is still a yawning gap around fixing workload for school staff. It’s unfinished business.

It comes down to resourcing. While resourcing is a whole of education sector issue, simply not enough resourcing goes into primary and ECE. This lack of resourcing is demonstrated clearly in the Tomorrows Schools Task Force report where it compares resourcing in secondary with resourcing in primary. The gap is significant and true comparability and fairness between the sectors cannot be achieved until that gap is closed.

To its credit the government Cabinet paper did recognise this resourcing gap and addressing it is a priority for this government. The problem is it is a Priority C - to be addressed 4 plus years on (from 2023 onwards).

That is simply not good enough. The unacceptable health and safety impacts on school staff are now clearly established. Students cannot get the attention and teaching they deserve without more resourcing and that means more trained and qualified staff. And given the time lag to get these staff up and running, that means starting now - not in four years’ time.

This priority for resourcing must change and must change to the immediate Priority A. Yes - Covid impacts mean many things must be addressed - but leaving our education sector for four years does not make sense. We must see election commitments from all parties to move that Priority up. And we must see evidence of it in Budget 2021 and on through Budget 2022.

Rebuilding our social infrastructure is just as important (and more job rich) as rebuilding our physical infrastructure. And the payoffs to ‘new’ New Zealand will be more enduring. Nowhere is the evidence of that more compelling than in early childhood education.

But as we have learnt - simply asking nicely for the additional resourcing doesn’t work. We have to campaign for it - right across our sectors. It all comes to a head again next time we bargain our school collective agreements in 2022.

So we are starting that now - building our campaign pathways to the renewal of those collective agreements. If we can lock in those increases in resourcing before that time then we will do so but if they are not locked in by that time, then it’s all on. This workload situation is untenable and adequate resourcing is the only answer.

So we are on those pathways starting right now. Pathways built on local member action around the issues of workload and resourcing - knowing the current situation must change.

They are Pathways to 2022.

 

 

 

 

 

 

Paul Goulter
NZEI Te Riu Roa National Secretary, Korimako Tangiata

3.0 NATIONAL EXECUTIVE REPORT TO ANNUAL MEETING 2020

3.1 KUA TAE TE WĀ AND THE ACCORD

In mid-2019 the successful Kua Tae te Wā campaign achieved significant pay jolts for school teachers and principals, and parity with their secondary school colleagues. However, pay was just one part of the campaign, which called for time to lead, teach and learn and ensure that teaching and school leadership were viable and attractive career choices.

A key part of the collective agreement settlements was the development of the Accord process to address time to do the job properly – workload – and the professional and However, the 2019 settlement didn’t give us more classroom release time to address our workload issues.

Instead, the Accord that accompanied the offer gave schools eight extra teacher-only days across the three-year term of the agreement, without extending the school year to cover them. The Accord partners have agreed on guidance about how and when to use these days.

In the Accord, the Government also recognised that the performance appraisal requirements contributed to a low-trust, high workload environment. They committed to removing the current legislative appraisal requirements and those changes have gone through the parliamentary process. The Accord partners are also working with sector groups to identify and share other models that support professional growth and development.

Other system reform and development signalled in the Tomorrow’s Schools review, including the management of change, wellbeing and an education workforce strategy are being incorporated into the relevant work areas of the Accord.

Work is also continuing to identify the increase in students with complex learning needs and how this impacts teacher and principal workload.

The sub-group looking at the workload impact of personalised learning has agreed to a new piece of kaupapa Māori research, on which NZEI Te Riu Roa is taking the lead.

Work got underway in 2020 to look at new ways to fund schools and ECE more equitably, including introducing a form of staffing entitlement for support staff.

As the group and sub-groups make progress across workload, future workforce, wellbeing and change management, a picture is forming of the campaigning work needed to mobilise members as we aim towards the renegotiation of collective agreements in 2022.

3.2 Responding to Covid-19

The value and importance of union advocacy came to the fore as New Zealand moved into Level 4 lockdown at lightning speed. While the ongoing salary payments of ministry employees and school teachers and principals were never at risk, NZEI Te Riu Roa strongly advocated to ensure the continued payment and employment of our more vulnerable members.

NZEI Te Riu Roa successfully lobbied the Ministry of Education to make Level 4 emergency payments to 13,000 day relievers and term-time support staff paid by time- sheet, and again to continue those payments as the country moved into Level 3.

NZEI Te Riu Roa also advocated for continued funding of the early childhood sector, and supported a number of members whose employers failed to pass on the government’s wage subsidy, or attempted to reduce or casualise their hours. We succeeded in convincing several ECE chains and employers to reverse unfair and unjustified changes to terms and conditions.

As the lockdown started to show signs of success, NZEI Te Riu Roa supported members and sought ministry answers to questions and concerns as schools and services began to reopen, first to the children of essential workers, and then to all children as we reached Level 2. A one-stop website covering all the issues relevant to educators was a valuable and frequently updated tool to assist members.

During the lockdown, all NZEI Te Riu Roa staff worked from home, including Member Support Centre staff, who were bolstered by many other NZEI Te Riu Roa staff stepping in to help with the huge numbers of member calls and emails.

To stay connected with members, engage and encourage, member leaders recorded a series of Zoom interviews with colleagues across the sector, talking about how their personal and professional lives were going under lockdown. Lockdown Lowdown / Te Kāhui Rāhui interviews were popular on social media, and four of the 14 interviews were held in Te Reo.

NZEI Te Riu Roa also set up Pareāwaha, a series of online conversations and professional learning and development opportunities for members to share knowledge and innovative practice. Professors Welby Ings, Peter O’Connor and Carol Mutch shared timely discussions about supporting students and keeping relationships at the forefront of learning and teaching from home. Well-known neuroscience educator Nathan Wallis also spoke to ECE members via Facebook Live about the issues services and whānau faced in the move to Level 3.

3.3 Budget 2020

NZEI Te Riu Roa welcomed the Government’s focus on people, jobs and reducing child poverty in Budget 2020, which came amidst extraordinary circumstances.

As the government looked to invest the $20b of spending it earmarked as part of
its Covid Response and Recovery Fund, NZEI Te Riu Roa encouraged a focus on social infrastructure, including education, which is vital in supporting and preparing all tamariki to face the challenges of the future.

Even in such financially straightened times, there were a number of wins for education:

  • A first step towards pay parity for ECE teachers – aligning their minimum rate with all other qualified teachers
  • Additional funding for ECE subsidies ($122.7m over four years) Additional funding for Kōhanga Reo ($93.4m over four years)
  • Support for Home-Based ECE educators to gain qualifications ($36.2m over four years)
  • Additional ESOL funding ($21.2m over four years)
  • A school property investment package of $115.1m
  • A $220 million expansion of the school lunches initiative
  • Funding for the Teaching Council to support a transition to an annual practising certificate fee of approx $157, with the increase deferred to February 2021 ($16.5m over two years)
  • Earmarked funding for the teacher aide pay equity settlement ($135.8m over two years)
  • Additional learning support funding so that it is linked to population growth ($38.859m over four years)
  • Support State Sector Decarbonisation to Deliver Low Emissions Energy Investments
  • The reintroduction of extra funding from 1 January 2021 for ECE services with 100% qualified teachers (announced following the Budget).

3.4 Early Childhood

Annual Conference saw the launch of ECE Voice, a major new NZEI Te Riu Roa campaign to engage potential new ECE members and highlight the crisis situation of the ECE sector’s pay and conditions to the wider public. The campaign’s core focus is on fair pay and closing the pay gap of up to 49% between qualified ECE teachers and other qualified teachers in kindergartens and schools. The campaign launch included TV ads featuring a large number of our members and supporters and starring well-known actor and ECE teacher Karen O’Leary.

In December, NZEI Te Riu Roa called for the urgent implementation of the newly released He taonga te tamaiti, the Government’s 10-year early learning action plan. In particular we welcomed the promise of a return to incentivising services with 100% qualified teachers, which happened in Budget 2020.

However, the lack of urgency to implement the vast majority of recommendations is cause for concern. The pursuit of public provision is key in quality ECE provision, but the sector is becoming increasingly privatised and profit-driven, to the great detriment of many community-based and teacher-led services that struggle to survive because of their focus on quality, such as good teacher-to-child ratios and small group numbers.

In early 2020 we surveyed ECE teachers, asking them to share personal stories of their experience working in the sector. The survey exposed distressing accounts of personal and professional impacts on teachers, and on the quality of education and care for children, that have resulted from the low pay and underfunding in early childhood education. These stories continue to help us illustrate teachers’ concerns to the public through social media and media stories.

In March 2020 ECE Voice supporters united across the country on Children’s Day, calling on the government to fix the pay gap. Members and supporters held stalls at public Children’s Day events and hosted their communities at events in their centres. In addition, a large crowd of New Educators Network members took to the steps of Parliament with President Liam Rutherford to promote the campaign. Children’s Day also saw the launch of the ECE Voice campaign on Facebook, with ECE Voice supporters driving its rapid growth - the page gained 1000 likes in its first day and thousands more in the coming weeks, with numbers continuing to increase.

While disrupting other campaign plans, the COVID-19 lockdown through April and May gave a further opportunity for the ECE Voice campaign to grow online. Thousands of campaign supporters came together to watch weekly professional learning seminars featuring sector experts and member leaders, delivered live on Facebook as part of NZEI Te Riu Roa’s newly launched Pareāwaha professional development series.

Throughout the lockdown we updated members and supporters with the most current information on their rights and entitlements. We lobbied on behalf of vulnerable workers as the lockdown’s financial pressures further exposed the precarity of private provision of early childhood education. A large number of centres applied for the wage subsidy and many dropped pay to 80% of staff salaries, with multiple redundancies and more expected. We have continued to advocate for the importance of publicly funded early childhood education and the quality and security it provides to staff and children.

In May, NZEI Te Riu Roa welcomed two major wins for early childhood education. Budget 2020 provided the first step toward pay parity for qualified ECE teachers, with a pay jolt to increase the minimum pay rate to align with all other qualified teachers. In response, members and supporters wrote to the Minister acknowledging this step but calling on him to prioritise a plan to finish the job and deliver pay parity for qualified teachers at all levels. While this increase is much needed, we are concerned that it will not prevent the widening of the pay gap when factoring in other pay increases due to take effect on 1 July 2020.

The increase in funding to Kōhanga Reo in Budget 2020 specifically for pay increases provided an opportunity to align the calls for parity and full pass on of funding to kaimahi and kaiako across the whole sector. A digitally-led unionising whakahau to engage both kaimahi and whānau, Te Ake Rautangi, was launched at Te Kāhui Whetū.

Budget 2020 also secured a reinstatement of incentives for services with 100% qualified teachers, which we have been advocating for since they were cut by the National Government ten years ago. These will provide much needed relief to centres that have struggled to pay their fully qualified teams since the incentive was cut, and contribute to increasing the quality of teaching services provided in early childhood.

Ngāmotu / New Plymouth
Ngāmotu / New Plymouth
Te Whanganui-ā-Tara / Wellington
Te Whanganui-ā-Tara / Wellington

3.5 Inclusive Education

The roll out of the Learning Support Action Plan over the past years has impacted on the work and workload of educators across the sector. The flawed implementation of the Learning Support Coordinator role – with less than half of schools and students being able to success this resource and no further tranche funded in Budget 2020 – has created an inequity in resourcing that will need to be a continued focus for member activism and advocacy.

NZEI Te Riu Roa started working with each of the occupational groups covered by the Ministry of Education Field Staff Collective Agreement to ensure issues faced by each group could be addressed, as well as identifying common themes that affect all of these members. The objective is to collate information and feedback from each occupational group so that we can organise in the lead up to the renewal of their collective agreement.

The Field Staff Working Group is due to pilot a workload tool in term 3 of 2020. It will be trialled in Tauranga, Hamilton, Tai Tokerau, Lower Hutt and Horowhenua, with a nationwide rollout planned for 2021. The tool is designed to identify whether an employee has the capacity to take on additional work or cases.

Work is ongoing to develop career pathways for Ministry of Education Communication, Education and Behaviour Support Workers, involving professional development, internal and external career pathways as well as qualifications via distance learning.

During the negotiations of Service Managers’ collective agreement in 2019, the Ministry agreed that the role needed to be reviewed, as the responsibilities and the requirements of the role exceeded the current expectations. The introduction of Learning Support Co-ordinators in schools and the facilitator functions also meant that the Ministry would need to review the role.

NZEI Te Riu Roa members are heavily involved in this work, which now has an extended timeline due to the disruptions of Covid-19.

We also set up a learning support project group with representation from RTLBs, special school principals, LSCs, SENCOs, early childhood, primary principals and SENRG (Special Education National Reference Group). The purpose of this group is to have a collective voice in the learning support space. That, in turn, will feed into the development of a national NZEI Te Riu Roa strategy, Umanga Te Mātauranga, covering all aspects of Learning Support to students in ECE and the compulsory sector.

In response to Covid-19, the government announced pay restraints for the public sector through until June 2021.

As field staff and support workers and have their collective agreement expiring within that period, the national leadership group (SENRG) met to discuss how we could pivot off these restraints to advance members’ issues.

The key issues identified include:

  • ensure the working group outcomes: addressing workloads for field staff and the career framework and qualification pathway for education, behaviour and communication support workers
  • employing more frontline staff
  • guaranteeing hours of work for support workers
  • professional development
  • addressing service manager workloads
  • shorter term collective agreements
  • align entitlements across the collective agreements

Zoom meetings were held for each occupational group to discuss member feedback and plan for a very different negotiating environment.

3.6 Support Staff

In late 2019, support staff in schools welcomed a huge breakthrough from years of campaigning to be fairly valued for their work when they accepted a new collective agreement offer with a minimum base pay rate of $21.15 per hour, the Living Wage at the time.

Previously, support staff on the bottom four steps of the pay scale had been paid the minimum wage of $17.70 per hour and ninety percent of teacher aides were paid below the Living Wage.

In the lead up to the offer, support staff had been writing to MPs, campaigning in schools, talking to parents and getting media attention. That tireless collective action was crucial.

For members on the lowest rates, the increase represented pay increases of up to 19.5%, funded through additional money to boards of trustees.

All other members earning at or above $21.15 per hour received an increase of 3% on printed rates, effective from 29 November 2019. All support staff would receive a further 3% increase on printed rates in 12 months’ time.

The offer also responded to several of our other claims including funding for cultural leave for support staff participating in Te Matatini, an increase in the motor vehicle allowance to align with the rate payable to teachers and principals, a PLD fund, revision of the overnight allowance to ensure members receive their correct entitlements, and renaming the dirty work allowance the “tiaki” allowance.

However, the collective agreement did not adequately recognise the skills and responsibilities of more experienced support staff. It would take a pay equity settlement the following year to rectify that for teacher aides, with other support staff groups still to follow.

On 1 July 2020, NZEI Te Riu Roa and the Ministry of Education launched a pilot fund to provide access to professional learning and development (PLD) for teacher aides. $790,000 was allocated to the fund as part of the settlement for the Support Staff in Schools’ Collective Agreement (SSSCA), but this was increased under the Teacher Aide Pay Equity settlement to $2.29 million over 18 months.

Teacher aides will be able to apply for courses through an online process administered by the Ministry of Education.

3.6.1 Support Staff Pay Equity

In June 2020, more than 22,000 school teacher aides accepted a life-changing pay equity settlement including pay increases of up to 28%, following a pay equity process that NZEI Te Riu Roa initiated with the Ministry of Education in 2016.

Taken together with Living Wage pay increases won during collective bargaining late last year, most teacher aides will receive pay rises of 23-34% across the course of 2020. That’s an increase of $4 to $6.60 an hour, recognising the value of teacher aides’ skills, responsibilities and experience that  has been undervalued on the basis of gender. Schools are being funded to pay the increased rates.

In the weeks following the announcement of the offer, thousands of teacher aides in schools and kura attended Zoom hui to discuss the details before voting online to endorse the settlement. NZEI Te Riu Roa also ran multiple Zoom hui to explain the details to principals, SENCOs and secondary school executive officers.

All teacher aides, including non-members, were invited to attend a hui and vote online to endorse the settlement. Support staff members then voted online to vary their collective agreement to include the settlement.

As the hui progressed, the number of teacher aide membership applications increased significantly, as non-members recognised the value of union membership and the efforts of their member colleagues who had made the life-changing settlement possible.

Over the latter half of 2020, the translation to the new grades will occur, with NZEI Te Riu Roa support for members to ensure they are on the correct grade, and paid union meetings to work through the changes.

Payment of the new rates and backpay to 12 February is expected by November 2020.

In addition to pay increases, the settlement changed the way skills are assessed, included a more flexible and increased Tiaki allowance (formerly “dirty work” allowance), made changes to how much hours can be varied, and increased professional learning and development funding. A commitment was also made to investigate central funding, the use of fixed term contracts and the development of career pathways.

The settlement also paves the way for pay equity settlements for other support staff groups, such as administrators and kaiārahi i te reo.

NZEI Te Riu Roa met with the Ministry of Education in early June to get the planning for the kaiārahi i te reo and administration staff processes moving again.

Calls to schools to set up administration interviews started in late June, with interviews themselves due to start at beginning of Term 3. The extensive interview process will explore the scope of administration roles and responsibilities and is an important part of the pay equity process.

Training for kaiārahi i te reo and administration interviewers is scheduled to begin in Term 3.

Teacher Aide Pay Equity negotiating team: Fa'a Sisnet, Annie Te Moana, Marcia Martin, Sue Poole, Ally Kemplen, Andrea Andrews, Te Whanganui-ā-Tara / Wellington
Teacher Aide Pay Equity negotiating team: Fa'a Sisnet, Annie Te Moana, Marcia Martin, Sue Poole, Ally Kemplen, Andrea Andrews, Te Whanganui-ā-Tara / Wellington
Breakfast TV
Breakfast TV

3.7 School Leader and Teacher Hauora

In 2019, NZEI Te Riu Roa commissioned Australian Catholic University to run a fourth round of principal health and wellbeing surveys. The study has been running since 2016 and aims to shed some light on exactly how principals’ work is affecting their lives, which will inform our campaigns and work with the ministry and on the Accord. In 2019 we also ran the survey for school teachers for the first time.

It is important to note that this research was conducted prior to the Covid-19 crisis. The survey was conducted from October to December 2019. It included data for school leaders for the fourth year running and the first year of data for teachers.

Teachers reported significant increases in stress during their second year of teaching. The data indicates that the second year is the most stressful year of a teaching career, consistent with research across the globe. Teachers also scored worse than school leaders in all health and wellbeing measures, with burnout and stress being the two most worrying.

2019 was the first year since the survey commenced that many stressors for school leaders diminished. The two most significant decreases are those of ‘sheer quantity of work’ and ‘lack of time to focus on teaching and learning’. This correlated with a positive trend for most of the health and wellbeing measures for school leaders,
including burnout, stress, and depressive symptoms. However, respondents are still scoring significantly worse than the general population in these health and wellbeing measures.

School teachers reported similar rates of work demands as principals. School leaders experienced more job satisfaction, less work-family conflict and family-work conflict in the 2019 year. However, work-family conflict is still significantly higher for school leaders compared to the general population. Women report significantly higher scores than men. Teachers rated their job satisfaction lower than school leaders did and about family life impacting on their work life than it did for school leaders.

For work demands, again, school leaders had a positive year in 2019 with work demands seeming to ease off slightly. In comparison to 2018, quantitative demands decreased by the greatest amount (4%), followed by work pace (3%). However, these demands are still significantly higher than the general population.

While the numbers are significantly higher than the general population, the 2019 data on threats of violence and incidents of physical violence towards school leaders has had a positive downward trend. School leaders were at increased risk compared to teachers, with women at more risk than men.

A similar number of school leaders and teachers are working 41 – 60 hours per week. However, 27% of school leaders are working more than 60 hours per work compared with 13% of teachers. Only 1% of leaders are working 40 hours or less compared with 12% of teachers.

This data reinforces issues teachers and principals campaigned on during the Kua Tae Te Wā - It’s time Campaign in 2019. NZEI Te Riu Roa members were clear that teaching needs to be made an attractive and valued profession through improved resourcing and systemic support. The key issues of high workloads, lack of support for students with additional learning and behavioural needs and undervaluing of the profession were raised throughout the campaign.

Not all these issues were able to be delivered through collective agreement processes. The Accord was entered into to address these outstanding issues. Further work needs to be done to improve resourcing and access to support for schools. The report identifies where the increase in resourcing is urgently needed.

The data gathered from these surveys provides clear evidence of the ongoing crisis the education sector is facing through persistent under-resourcing.

3.8 Curriculum

In late 2019, well into a review of NCEA, NZEI Te Riu Roa became aware of a plan to make NCEA assessments available to students as young as Year 7. This was alarming news for many members, who saw it as a back-door attempt by the Ministry to bring back a form of National Standards.

Members, and principals in particular, spoke out in the media and inundated the ministry with last-minute submissions, which were clearly heard. In a great win for collective action and common sense, the Ministry confirmed in February 2020 that it would not push ahead with the plan, which it had been treating as a done deal until members became involved.

NZEI Te Riu Roa was active in the online learning discussions held during the Covid-19 lockdown, and has pushed back against the risks of standardisation and deficit thinking as a result of Ministry work on school entry assessment, the Learning Support Register and learning long term in level one of the curriculum. NZEI Te Riu Roa has continued to advocate against PaCT and ensure that work to systematise the use of data, for example, with Te Rito and the development of the equity index does not work to the disadvantage of learners and educators by returning to a data accountability approach.

3.9 Climate Change

Climate change and just transition remain important issues, and Area Councils have been taking up the challenge to engage with the issue regionally.

New Zealand school students held their third climate strike in September 2019, following earlier strikes in March and May. While the participants were mainly secondary school age, NZEI Te Riu Roa expressed support and acknowledged that some primary students would attend with whānau.

Then-President Lynda Stuart joined more than 1200 New Zealand Professors, researchers and educators in signing an open letter supporting young citizens taking strike action around the globe that day.

The Taranaki Area Council continues to be closely involved with the Just Transition in Taranaki. Through the move to a low carbon economy they are pushing for an active role for Māori, early childhood and schools.

In January 2020 NZEI Te Riu Roa welcomed the government’s announcement of an initial $4.8 million to replace coal boilers with cleaner biomass boilers for heating in eight schools, with more to come. This move is part of the $200m New Zealand Public Service Clean Powered Upgrade Programme.

As part of the kaitiakitanga (guardianship of Papatuānuku), Miro Māori have focused their attention on local kawa and tikanga accompanied by simple karakia that could be used when entering ngā whare o Tāne Mahuta me Tangaroa.

Te Maramataka Māori have been resurrected for use by individuals more particularly kaiako to plan with and for the activities in their class while following the phases of the moon and the best time to practise particular activities like fishing, planting, planning and resting.

In the Pacific Islands the early closure of borders has stemmed the total effect of Covid on Pacific peoples but Climate Change is still the greatest threat to the Pacific Communities. The waters that hit the Pacific Island shores are infected by the actions of bigger, more affluent countries outside the Pacific borders as happens with the economics of supply and demand which also adversely affects the Pacific.

3.10 New Educators Network - Te Kupenga Rangatahi (NEN TKR)

The annual new educator activist hui was held in the last weekend of February. The focus of the 2020 hui was on developing the capacity of new educator members to lead in union. It was an exciting weekend that saw the contingent of 46 members plan and execute a tactic as part of the ECE Voice campaign, which was an empowering way for members to build their skills and confidence in engaging with NZEI Te Riu Roa campaigns.

The network’s plan for rolling out localised NEN TKR hui in term two was derailed by COVID-19. In order to meet the development and engagement goals that we were working towards through the regional hui, we pivoted to creating digital networks that are run by new educator leaders.

A cohort of ten new educator member leaders who attended activist hui run the Facebook group NZEI NEN Community – Te Kupenga, which is the online home for NEN TKR.

An offshoot of the member leadership group behind NEN Community also founded the NZEI Rainbow New Educators Network on Facebook during lockdown. The aim is to run this group as a digital network that is a space for rainbow new educators to build connections and support each other while entering the profession, but also feeds into local on-the- ground networks and activities where they already exist.

As well as the disruption to NEN TKR’s kanohi ki te kanohi plans, COVID-19 impacted student and in-training teacher members due to graduate in 2020 because of practica being cancelled. In order to meet Teaching Council registration requirements and be issued with a practicing certificate, graduates must have completed 14 weeks (for a one-year course) or 20 weeks (for a three-year course) of practical teaching experience. NZEI Te Riu Roa advocated with the Teaching Council on behalf of student members that students should not be negatively impacted as a result of a global pandemic. This was ultimately successful, with the Teaching Council temporarily decreasing the practicum requirement by 25% and introducing an ‘enhanced induction and mentoring’ programme that is funded by the Ministry of Education, to better support these affected graduates moving into the profession. This has opened up an opportunity for NEN TKR to have their voices heard regarding induction and mentoring, which is consistently a hot button issue for new educator members.

New Educators Hui 2020, Te Whanganui-ā-Tara / Wellington
New Educators Hui 2020, Te Whanganui-ā-Tara / Wellington

3.11 Tomorrow's Schools Review

The final report of the Tomorrow’s Schools Review Taskforce was submitted to the Minister of Education in July 2019 and NZEI Te Riu Roa responded in detail following feedback from members.

In November, NZEI Te Riu Roa welcomed the direction of the Government’s resulting reforms, which were underpinned by the Treaty of Waitangi and the rights of the child.

The reforms focus on greater support for school leaders and teachers to meet the needs of our students, while still empowering local Boards of Trustees.

It was particularly encouraging to see the report’s acknowledgement that teacher aides and cultural experts were undervalued in our schooling system and had precarious employment. Work got underway in 2020 to look at new ways to fund schools and ECE more equitably, including introducing a form of staffing entitlement for support staff.

The report also acknowledged the resourcing gap between primary and secondary schooling. This gap is significant and needs to be closed – NZEI Te Riu Roa will continue lobbying on this issue.

Another key aspect of the review was the introduction of the Educational Service Agency, which will have a strong presence at a local and regional level. It has decision- making and funding powers, with a focus on reducing bureaucracy and compliance issues. The sector was excluded from the initial design and we are keen to engage to ensure the change meets the needs of students.

NZEI Te Riu Roa will work with the Government on the details of change and implementation. The direction of the reforms is good - how we get there together will be key to their success, along with the necessary resourcing.

3.12 Teaching Council

In early 2020, the Teaching Council announced a doubling of registration fees by July 2020 to meet its requirements to become financially independent of Government.

NZEI Te Riu Roa supports the concept of an independent body “by teachers, for teachers” that can uphold teaching as a profession, support teaching leadership and be an advocate for teaching independent of the government of the day, and regulate and promote quality for the profession. However, the scale of the registration fee increase and the failure to ensure a sustainable transition created considerable anger in the sector.

As a result, NZEI Te Riu Roa sought member feedback and approached the Council with the concerns and anger of teachers.

In mid-May, the council announced it would increase registration fees to $157 annually, deferring the change to February 2021 when it will also begin moving to annual teacher certification.

This move as schools and centres were reopening following the lockdown angered many teachers and is still a doubling of the previous fee, just paid in annual instalments rather than every three years.

The lack of consultation with the sector was frustrating and the union sent a joint letter with PPTA to the Minister, pointing out that the Council’s tweaks to the changes failed to take into consideration the most critical concerns raised in our earlier letter that was based on feedback from members.

The key concerns are the timing, ineffective consultation, the circumstances of low paid teachers, the need for external funding to meet the costs of poorly functioning conduct and competence processes, and the unacceptability of requiring teachers to fund a Leadership Centre.

NZEI Te Riu Roa is in ongoing dialogue with the council to seek a fairer way forward and is also lobbying the Minister of Education, as any acceptable solution will require additional funding from government.

3.13 NZ Council of Trade Unions

NZEI Te Riu Roa continued to actively participate at all levels of the NZCTU. This included the National Affiliates Council, Runanga, Komiti Pasifika, Womens Council and Stand Up (the Young Workers Network). NZEI Te Riu Roa has also been actively engaged with the NZCTU in the pay equity discussions with government and also over the new Equal Pay legislation. The CTU has been helpful in moving things forward in these areas.

We have also participated in the government and state sector union discussions about working more closely together to enhance both the quality of the public service and the conditions of employment of public sector employees. This includes an ongoing claim from NZEI Te Riu Roa and other state sector unions for the government to use its procurement powers to ensure employment in contracted-out services meets public service standards eg the Living Wage.

The NZCTU also took a prominent role in the negotiations around wage assistance during the Covid-19 lockdown ensuring the wage levels in assistance packages were sufficiently high.

NZEI Te Riu Roa is also part of the union delegation in the tripartite discussions on the Future of Work, which is led by the Minister of Finance.

3.14 International

3.14.1 Australian Education Union

As usual, NZEI Te Riu Roa participated in the Australian Education Union (AEU) Federal Conference in February. This is a useful time to share experiences and knowledge as well as catching up on the ever-shifting story that is Australian politics. These interchanges cement a very strong relationship between the two unions both at a federal level and at a state level. We have also worked with various state branches on a range of topics including climate change and pay equity.

3.14.2 Education International

NZEI Te Riu Roa also participated in the AEU Womens Conference and played an active role in the AEU Student and Beginning Teachers Conference. During the lock down we also participated in the weekly Zooms of AEU Federal and State Secretaries. This proved a really useful opportunity to hear what was happening in the state education systems and federal and state government responses as well as explain our situation.

Beyond that, Covid-19 stymied international travel for a large chunk of this financial year, but many events and meetings went ahead online – all very late at night for NZEI Te Riu Roa representatives!

On June 3, President Liam Rutherford attended the International Summit of the Teaching Profession. It was meant to be in Spain, but instead was a three-hour Zoom meeting.

The ITSP brings together Government and union leaders from around the world. There were four themes that were discussed:

  • What has been the quality of dialogue between Ministries and the teaching profession during the crisis?
  • Which innovations introduced during the crisis could be continued afterwards?
  • How have new measures been implemented during the crisis and how has the teaching profession responded?
  • How have disadvantaged students been supported during the crisis and what support should be given afterwards?

It was great to be able to share about the constructive relationship that unions have had with government during Covid-19. We are going to need to keep and build on this as we work together on the recovery.

It was encouraging to hear that there is an awareness of equity issues, but also the opportunity that Covid-19 gives us to address them rather than seek a return to the status quo.

In April, we joined Education International in welcoming a major reform commitment from the World Bank’s private sector arm, the International Financial Corporation (IFC), to freeze any investments in private for-profit K-12 schools.

The IFC will freeze any direct or indirect investments in for-profit primary and secondary schools, with a consultative process to decide on a permanent policy.

This is a very positive move, as the assumption that private actors would take on public sector obligations with respect to the provision of quality education for all flies in the face of a growing body of evidence, which shows that privatisation does not improve access to, nor outcomes in, education but rather deepens inequality and segregation, denying the right of all children to quality education.

There is growing concern about the intrusion of private big tech (or big data) into public education using the crisis capitalism model. EI is finding this is widespread in the current crisis. NZEI Te Riu Roa sees the need to push back here in NZ too. We intend to do this with the Quality Public Education Coalition (QPEC) and the resources of EI.

In late June, NZEI Te Riu Roa presented on an ECE Education International panel, along with other speakers from Denmark, Canada and Chile. An international audience of 200 attended the webinar, where we were able to mould our presentation to show how we are taking a growth mindset approach to identifying and using the opportunities to create a better new normal – we used the re-build to show how we can do this to fix the pay gap, invest in the future of the workforce, centre tamariki and kaiako in the re-build and use these issues to highlight the detrimental impact of privatisation. We were notably the only union who talked about taking a campaigning and organising approach, while others focused on more industrial responses and the tension between pedagogy and health and safety requirements – understandable given they were all still facing very direct health impacts of the virus.

NZEI Te Riu Roa representatives also took part in the EI Asia Pacific roundup of Covid-19 impacts online meeting and a hui with the Council of Pacific Education (COPE), an EI affiliated umbrella body of teacher organisations in the Pacific, alongside 11 other Pacific nations.

All countries reported feeling the impact of Covid-19 and, despite many not having any/ many cases, education in most places was closed down. As they were in New Zealand, teachers were involved in preparing resources and in most countries, figuring out how to get them to children in remote areas.

NZEI Te Riu Roa continues to be a strong supporter of UnionAID, the NZ union movement’s international development organisation. This year funding from NZEI Te Riu Roa enabled 790 Dalit and tribal children of union members in southern India to attend evening education centres. These centres provide children ages 5-14 with help with their homework, additional literacy teaching and other subjects identified from student, parent and teacher feedback. Though the centres are very simple they also provide the children with holistic learning, including classes on Dalit history and culture, civic lessons and lessons on how to protect the natural environment.

NZEI Te Riu Roa also supported UnionAID’s 10th anniversary donation appeal. Through an annual donation of $3000, NZEI Te Riu Roa will be providing working people in Asia and the Pacific with the resources they need to organise and take collective action for better wages, safer working conditions and secure jobs so they can support themselves and their families with dignity. With COVID-19 expected to push hundreds of millions of working people into poverty, this support is vital.

4.0 Te Reo Areare Report to Te Kāhui Whetū and Annual Meeting

4.1 Mōku Te Ao

Māori First, the future is ours! What is good for Māori is good for Aotearoa!
A win for Māori is a win for all! We need to flip the Education System!
These statements are catch cries often used but with limited substance or support and unless we demand huge changes in the present education system those catch cries will remain just that, cries!

Yes, everyone promotes te reo Māori but only if it does not distract attention from other “important” kaupapa. Yes, Kura Kaupapa and Kōhanga Reo are crucially important for Māori and mokopuna Māori but a large percentage of mokopuna Māori are educated in the general stream with no te reo Māori, no tikanga and no regard for who they are.

NZEI Te Riu Roa is activating a Mōku Te Ao perspective across Aotearoa. Initially this will be through our structures but also at every meeting we attend outside NZEI Te Riu Roa where Māori are not mentioned or are the last consideration during any discussion.

Achieving excellence in education by Māori for Māori will need a unification of minds, to realise the future that Māori want for ourselves, our tamariki and our communities. A resetting of the education system through an Indigenous lens is achievable.

4.2 Karanga Paeko/ECE Voice

A journey to membership through connectivism – joining the campaign; unionising – acting collectively to organise around issues, and union – join the union. Participants can join at their level of comfort, making the journey non-threatening whether online or offline. This philosophical shift is a better fit for Kōhanga Reo whānau and the capacity and capabilities of Aronui Tōmua members.

Karanga Paeko (Assured Success) includes

Mana Taurite – same mahi; same value; same pūtea

Mana Ōrite – matching qualifications

Pūtea – changing the funding formula and the method of delivery of the funding

Collective Agreements – Individual; ECECA as an option; Kōhanga Reo Collective.

4.3 Mana Taurite

A looming problem with pay equity, specifically in the ECE teacher space, will be the way to link pay equity with pay parity.

Frustrations around the teacher aide space have now blossomed into a fantastic WIN for undervalued women workers and celebrations for teacher aides. They are the largest group of support staff members and are looking forward to that backpay and increased rates. Next up are administrators, closely followed by kaiārahi i te reo.

4.4 Kaiārahi i te Reo

From a potential list of 70 Kaiārahi i te Reo we estimate that we have a 50% membership of that rōpū.

Takawaenga and field staff are in the process of checking each named worksite to see if the person listed is still working there, is the position still available on that site and is the kaiārahi i te reo a member of either NZEI Te Riu Roa or PPTA.

Some resource personnel who are NZEI Te Riu Roa members are prepared to participate in the interviewing process to gather evidence and create profiles of the mahi of the kaiārahi i te reo. This will be used to seek out comparators in an equivalent male-dominated industry.

A kaiārahi i te reo reference group has been established for the surety tasks and kaiārahi i te reo are gaining in numbers and interest with requests for further information on their Facebook page.

4.5 Kōhanga Reo

Promoting Mana Taurite as an education pathway with positive outcomes for kaimahi within Kōhanga Reo has led to the mobilisation of ngā Kōhanga Reo kaimahi towards parity in quality, parity in delivery and parity in resourcing.

Researching Te Tohu Whakapakari for recognition as an indigenous qualification is linked to Mana Ōrite/Pay Parity. Te Reo Areare are clear that our mahi should be focused on the kaimahi, their pay and conditions. While we agree with the kaupapa of promoting te reo Māori, that is not our concern.

When Kōhanga Reo Kaimahi accompanied by Te Reo Areare members speak to their Kōhanga Reo whānau they should ask,

  • Do you believe that you are paid what you are worth?
  • Do the whānau have the pūtea to pay you what you are worth?
  • Do you think that the government should give Kōhanga Reo more funding?
  • What can we do to help increase the funding to pay Kōhanga Reo Kaimahi what they are worth?

In the 2019 and 2020 Budgets, over $200 million was allocated to Kōhanga Reo with clear instructions for payment to kaimahi and volunteers.

Mataatua Kōhanga reo tū pakari mō te kaupapa o te Kōhanga Reo protested around the perceived mistreatment of Kōhanga Reo kaimahi in that rohe.

4.6 Kōhungahunga/ECE

Presentations were made at ECE Voice campaign meetings about Te Kōhanga Reo kaimahi to canvas an agreement from those members present to support the stand of Te Kōhanga Reo kaimahi.

“Te Ope Kōhungahunga o Te Riu Roa” is the ingoa Māori for the NZEI Te Riu Roa Early Childhood National Caucus.

Demanding Mana Ōrite by using Mana Taurite as the best way to achieve Mana Ōrite. Is this our best option? We all need to be bold and united in developing our commitment and passion to lift pay for Kōhungahunga.

4.7 Kaiāwhina Tautoko/Support Staff

Discussions related to teacher aides showed an understanding was developing about the specific skills and knowledge teacher aides bring to the role that are complimentary to the skills of the teacher. Possible issues were already obvious for kura and Miro Māori members.

  • The current system creates job insecurity
  • Variable hours when an hourly rate is generally higher
  • What about backpay?
  • Transient teacher aides, teacher aides on LATs
  • The large proportion of teacher aides in kura sit on Grade A
  • 3,369 teacher aides identify as Māori
  • How do we treat teacher aides who should be re-categorised as kaiārahi i te reo?

4.8 Te Kupenga Rangatahi

Te Kupenga Rangatahi became a priority in each rohe during 2019/2020 and were supported to attend the NEN activist hui 29 Feb – 1 March.

Miro Māori members mai ia rohe have been identified by Te Reo Areare tauira representatives Michelle Haua and Virginia Heta.

Increased Te Kāhui Whetū attendance of Te Kupenga Rangatahi members has been pleasing for other tauira and NEN members who were requesting support for the Advice and Guidance programmes to be established as essential Professional Learning for Te Kupenga Rangatahi.

4.9 Primary Teachers Leadership Group

Representation from Te Reo Areare has reshuffled to include Tiri Bailey and Lovi Collier. A shared goal from Te Manukura is for each sector group to look carefully at how they can normalise te reo Māori within their rōpu in the first instance then to have their plans passed onto the Branches, Aronui Tōmua and Komiti Pasifika.

Mōku Te Ao has been introduced but members need further discussion across the whole rōpū to ensure that there is a clear understanding and a pathway to the rest of the membership.

4.10 Learning Support

Providing a culturally appropriate service for Māori is hindered by the capacity and capability of kaimahi Māori who currently work in that sector. This would be an opportunity for wharekura tauira to look at a career huarahi in Learning Support as educational psychologists, physiotherapists, occupational or speech language therapists. Aronui Tōmua engagement with kaimahi Māori in the Ministry of Education Learning Support has been encouraged and is ongoing.

Te Aroha Hiko, the representative for Te Reo Areare on SENRG (NZEI Special Education National Reference Group) has met with Ministry of Education national office managers to discuss issues raised by members.

Items discussed include the status and mahi of Kaitakawaenga and Pouārahi a Takiwā (District Māori Advisors), Te Tiriti o Waitangi and Te Reo Māori Cultural Competencies for kaimahi in Learning Support.

4.11 Māori Education Peak Bodies Forum

We meet once a term and have been updated by the Māori Education leadership in the Ministry of Education around the following kaupapa;

  • Ka Hikitia refresh
  • Treaty of Waitangi Policy for the Ministry of Education
  • Te Hurihanganui
  • Supporting the Development of a Māori Education Strategy.
  • Education work programme overview
  • Māori Initiatives in Budget 2020

4.12 Rāngai Māori

The Rāngai Māori Strategy was sent to the Minister of Māori Education and the Secretary of Education to present to the Peak Bodies Group.

The Rāngai Māori Rōpu stressed that the Māori Education Strategy is for Kōhanga Reo, Kura a Iwi, Kura Kaupapa Māori, Puna Reo and all other Kaupapa Māori worksites that deliver education in Level one te reo Māori. The recipients were advised that if there were any changes then those groups requesting changes needed to consult with the Rāngai Māori Rōpū.

The Rāngai Māori Rōpū promoted the Rangai Māori Strategy as an education pathway with positive outcomes for both ākonga and the workforce to inform and attract a workforce.

4.13 Tumuaki

In 2019 tumuaki across Aotearoa joined with teachers to participate in the largest industrial action ever seen in Aotearoa. The whole union approach had the desired effect for teachers and most principals.

Area school tumuaki introduced a health and wellbeing claim called ‘Te Rau Titoki’ This claim will allow tumuaki to take leave of up to 30 weeks consecutively in a year.

During the Teacher Aides Mana Taurite claim tumuaki Māori were supported to work through the process for their teacher aides with webinars and separate Zoom hui.

4.14 Mātauranga Māui

Kaitiaki practices, what are they and where are they used? Tikanga and karakia, why do we have them and where are they used? Simple karakia have been suggested for use on the sea and in the ngahere.

Understandings around rāhui are being shared from rohe to rohe. Why are rāhui set, what are the implications for the iwi and the public and who can be affected by a rāhui?

We plan to introduce Te Maramataka Māori into our classrooms for planning and programme purposes. Using our knowledge of the phases of the moon, students’ work programmes will be planned with high energy while ensuring times of high activity are not wasted. Seeds have been planted according to the Māori Maramataka.

Carbon offset is a constant that we need to keep working on because it is as much about how we work as well as for what we advocate.

Pest eradication of stoats and ferrets has increased along with checking domestic pets in the ngahere. Iwi are encouraging schools to include local wetlands in their protection programme.

Work in the Taranaki rohe by Aronui Tōmua and Area Council continues towards a Just Transition while highlighting the importance of schools and centres as constants within the Transition.

4.15 The Accord

There is a real need to shift the culture within the Ministry of Education around how system change can happen. At the early stages, Miro Māori indicated concerns about their place in this process. Assurance was given about the need for NZEI Te Riu Roa to introduce the obligations under Te Tiriti o Waitangi to introduce and prioritise Miro Māori before proceeding any further.

There is a genuine attempt to engage Māori by the Ministry of Education, but they do not know the ‘how’ part. Māori are always tacked on as a third column or box in Ministry of Education planning. We want to move to “co-design to co-decide”, power sharing rather than just being around the table.

The personalisation of learning is another aspect under scrutiny as part of the workload discussion for teachers in both primary and secondary schools. Agreement has been reached to include a desktop literature review based on a Mātauranga Māori perspective using a Mātauranga Māori research model.

4.16 Te Rito/Data Gathering

One Kura, Te Whata Tau o Putauaki, has been part of the pilot programme where the staff have completed the training and have developed an understanding of how to deliver better outcomes for tamariki Māori using Te Rito.

Te Rito is the name of the space where information will be transported and stored for every child. This information is moved from each school’s management system to Te Rito for access by others.

Information on Te Rito will assist in planning for resources and to empower teachers to have conversations with others about student needs.

4.17 Normalising Te Reo Māori

Normalising te reo Māori has become a project across the whole of the union, fronted by National Executive, Te Reo Areare and NZEI Te Riu Roa staff.

When considering this strategic priority, Te Reo Areare saw the value in a whole of union campaign to generate the required importance of the involvement of everyone.

Te Ahu o te Reo has been instrumental in getting non-Māori speakers to become involved in the process and funding allowed the continuation of the programme.

4.18 Pareāwaha

Pareāwaha, which literally means “word of mouth” was formerly a magazine published by NZEI Te Riu Roa with stories from Miro Māori but was discontinued some years ago.

Resurrecting the name Pareāwaha provides a platform and a space for members to suggest professional development options for each other that can be viewed and discussed across the motu.

Tāmaki Makaurau / Auckland
Tāmaki Makaurau / Auckland
Te Kāhui Whetū 2019, Ahuriri / Napier
Te Kāhui Whetū 2019, Ahuriri / Napier
Tāmaki Makaurau / Auckland
Tāmaki Makaurau / Auckland

5.0 National Pasifika Leaders Report to Annual Meeting

5.1 Tapasa

Tapasā workshops were exceedingly popular and over-subscribed all year, including catch up workshops around Carrying the Tapa. Next year there will be a move into workshops based on Turu 3 and Turu 4 of the Tapasā document.

The Ministry of Education appointed applicants to develop and produce Early Childhood to Secondary School Resources for Tapasā workshops funded from a $5 million budget. Other contracts have been let to Cognition and Lift to produce 100 Pasifika stories and other Pasifika resources.

5.2 Pasifika ECE

Concerns have been raised about Pasifika Early Childhood Education Centres being closed due to low attendance and limited funding. The low attendance does not generate enough funding and parents are unable to afford the fees.

The lack of qualified personnel has also come to light because applicants cannot pass the English Language requirements and each paper costs $285. There is also a high need for services for under 2s but most Aiga Mata do not provide that service.

Pasifika play-based learning has increased in popularity and has become a very successful workshop amongst both Early Childhood and Primary Teachers.

5.3 Climate Change

Caroline Mareko represented NZCTU at the Climate Change Meeting organised by the South Pacific Combined Trade Union held in Denerau, Fiji.

Involvement in Climate Change discussions has highlighted the need for the National Pasifika Leaders Group to develop a co-ordinated approach to what we can do about supporting Pacific Nations and Pacific peoples resident in New Zealand.

Representatives of the Tuvalu and Kiribati Societies based in Wellington will be invited to meet with the National Pasifika Leaders Group to develop a plan around what they perceive to be the issues for their people in the Pacific. Connections with the Tuvalu and Kiribati Teachers unions will be an additional resource for these discussions.

5.4 National Pasifika Fono

Due to Covid-19, the April 2020 National Pasifika Fono had to be postponed for 12 months. It will still be held in Christchurch, in April 2021, with the theme Na Leo I Ko′olau. On the navigational compass there are four quadrants and when the South Island is placed in the centre the connecting line pointing to the Pacific moves through Na Leo I Ko’olau.

Discussion around the theme focused on the migration of Pacific peoples to New Zealand who were blown south by the winds of family connections, the winds of family education and the winds of family employment to settle their families in the South Island.

5.5 NZCTU Biennial Hui

Extremely successful for Pasifika with recommendations being supported and passed with the most significant being the ability for the Pasifika Caucus to organise for elders to attend their meetings to support their discussion.

Komiti Pasifika 2020, Te Whanganui-ā-Tara / Wellington
Komiti Pasifika 2020, Te Whanganui-ā-Tara / Wellington
Tāmaki Makaurau / Auckland
Tāmaki Makaurau / Auckland

6.0 NZEI Te Riu Roa Collective Agreement Settlements (2019)

Area School Principals Collective Agreement 2019-2022

Area School Teachers Collective Agreement 2019 - 2022

Kindergarten Teachers Collective Agreement 2019-2022

Primary Principals Collective Agreement 2019-2022

Primary Teachers Collective Agreement 2019 - 2022

Support Staff in Schools Collective Agreement 2019 - 2022

Te Aho Kura Pounamu Specialist and Support Staff Collective Agreement 2019 - 2021

7.0 LIST OF NZEI TE RIU ROA SUBMISSIONS 2019-2020

April 2020 NZEI Te Riu Roa Submission to the Teaching Council of Aotearoa New Zealand: consultation on proposed urgent and temporary changes to Initial Teacher Education programmes as a result of COVID-19

Assurance was sought that any changes to the programme requirements have clear timeframes and are directly linked to the restrictions imposed by COVID-19.

April 2020 NZEI Te Riu Roa Submission to the Teaching Council in response on consultation on proposed changes to the Teaching Council of Aotearoa New Zealand fees.

The submission condemned the proposed increase in fees and the short consultation period. It included several recommendations to the Council including: any increase
in fees to be delayed, increases to be introduced at a more moderate level, the level of increase should recognise the low pay of some teachers and set up costs of the leadership college should be met by government.

March 2020 NZEI Te Riu Roa Submission to the Education and Workforce Committee on the Education and Training Bill.

The submission noted that while the proposed changes appear to support several of the United Nations sustainable development targets there is a lack of awareness of the financial implications of mandating school attendance, of addressing identified learning support needs in early childhood services or of teacher supply issues.

March 2020 NZEI Te Riu Roa Submission to the Ministry of Education: consultation on Guidance – Learning Support Coordinator: A guide to the role

While appreciating the development of guidance for the new roles the submission noted there was a lack of clear direction that the position is for qualified and fully certificated teachers only, the position must be recognised within collective agreements to ensure consistency and if existing resources are to be used then a key function of the role is identifying the most effective use of those resources.

March 2020 NZEI Te Riu Roa Submission to the New Zealand Productivity Commission on their report “Educating New Zealand’s future workforce: Technological change and the future of work”.

The decision to make a submission was based on the potential impact of the report, in its current format, on the education sector. The stated aim of the report was to answer four key questions. NZEI noted that while the report answered the question about attributes that “close off student options too early” it failed to convincingly answer the other questions about the role of the national curriculum, flexibility within the system and how well it prepares people for future certainty.

February 2020 NZEI Te Riu Roa Submission to the Governance and Administration Committee on the Public Service Legislation Bill

The submission, while supporting the intent of the Bill to provide a modern legislative framework to achieve a more adaptive and collaborativepublic service by expanding the types of agencies that comprise the public service, questions whether the principles and values as set out are sufficient, relevant or appropriate for educators whose first obligation is to the children rather than to state agencies or ministers.

January 2020 NZEI Te Riu Roa Submission to the Ministry of Business, Industry and Employment (MBIE) on the Review of Migrant Exploitation

The submission supported all ten proposals put forward in the October 2019 MBIE consultation document to address temporary migrant worker exploitation. The submission added that the proposals must be cognisant of the fact that exploitation can happen in any sector and potentially by any employer, including government agencies.

January 2020 NZEI Te Riu Roa Submission to the Education Review Office on The Indicators of Quality For Early Childhood Education: What Matters Most

NZEI Te Riu Roa supported the overall direction and tone of the Education Review Office document The Indicators of Quality For Early Childhood Education: What Matters Most, in particular; the focus on promoting quality improvement and the evidence base used to develop the indicators that support lifelong learning and the emphasis on Te Whariki. The submission also noted that the structural features supporting quality early childhood education are not suitably robust or well-funded to ensure it is delivered by suitably trained and qualified teachers who have access to ongoing professional learning and development.

November 2019 NZEI Te Riu Roa Submission to the Ministry of Education on The National Education Learning Priorities

The submission acknowledged that the proposed National Education Learning Priorities (NELP) reflected the themes of the Education Conversation and noted with satisfaction that the NELP replaces the ‘better public service targets’ and the previous government’s narrow conception of learning priorities. However, without better resourcing and the government addressing issues around poverty, lack of housing and the low-wage economy, the expectation that education can achieve wholesale societal change cannot succeed. The education workforce is already over-worked and under-resourced.

November 2019 NZEI Te Riu Roa Submission to the Ministry of Education on the National Certificate of Educational Achievement (NCEA) Review package

The submission noted the indication that the package would impact on primary education and formally took our opposition directly to the Minister of Education.

November 2019 NZEI Te Riu Roa Submission to the Ministry of Education on the Person Responsible

NZEI supported the move to allow primary qualified teachers, who are employed in an early childhood centre to be the person responsible in the centre as an interim only solution to the current qualified staffing crisis in the sector.

November 2019 NZEI Te Riu Roa Submission to the Ministry of Health on Healthy Food and Drink Guidance – Schools

And

NZEI Te Riu Roa Submission to the Ministry of Health on Healthy Food and Drink Guidance – early learning services

The submissions approved both the guidelines in principle on the basis they were not mandatory. Concerns were noted about the ‘healthy star rating’ system.

November 2019 NZEI Te Riu Roa Submission to the Ministry of Education on the Tertiary Education Strategy

The submission agreed with the broad outlines in the discussion document but with stated concerns with the proposed priorities and supporting actions underpinning the various objectives.

July 2019 NZEI Te Riu Roa Submission to the Environment Committee on the Climate Change Response (Zero Carbon) Amendment Bill

The submission supported the purpose of the Bill and considered the matters raised in the Bill as long overdue in receiving attention.

8.0 NATIONAL EXECUTIVE ACTION ON POLICY RESOLUTIONS FROM NZEI TE RIU ROA ANNUAL MEETINGS HELD 2016-2019

Policy document statements:

Remits passed at AGM will be tracked and reported on for three subsequent years. NZEI Te Riu Roa adopts as policy the practice of publishing on NZEI’S website, actions taken by the Institute to implement resolutions agreed to at Annual Meetings.

 ResolutionsAction taken
AM 2016Resolution A
That NZEI Te Riu Roa appoint a working party to investigate the implications of altering the fee structure from the current 5 bands to 10 bands, with each of the current bands split at the 50% point.
(Counties Manukau Area Council)
National Executive Fees Working Party met twice in 2017. Initial decision reached re the resolution was that the proposal was not feasible or financially sustainable.
See AM 2019 below
AM 2017There were no policy resolutions recorded in the Record of Proceedings for 2017
AM 2018There were no policy resolutions recorded in the Record of Proceedings for 2018
AM 2019There were two resolutions recorded in the Record of Proceedings for 2019 related to membership fees. Both related to Resolution A in 2016.
Resolution 1
Counties Manukau Area Council, Waitaha/Canterbury Area Council.
That the Gross Fortnightly Income Ranges for the January 2020 to January 2021 New Zealand Educational Institute Te Riu Roa membership subscriptions be:

Band: Gross Fortnightly Income
1. Up to $443.49
2. $443.50 to $886.99
3. $887.00 to $1,330.48
4. $1,330.49 to $1,844.93
5. $1,844.94+

National Executive consultation with Counties Manukau in 2018/19 resulted in proposals for change that would reduce fees for some members being put to Annual Meeting 2019
Action taken to amend the Rules.
Resolution 2
Counties Manukau Area Council), Waitaha/ Canterbury Area Council.
That rule 16.4 is amended and a new rule 16.5 is added as follows:
16.4 Members who earn less than certain income thresholds only pay part of the full subscription rate. The income thresholds will be adjusted each year in the same manner as set out in section 16.2.
16.5 The income thresholds and reduced proportions will be set by majority decision at the Institute’s annual meeting.
Action taken to amend the Rules
Included in the updated Policy Document by CL Penetito. If it is not considered policy then remove it.
Also Briefing Paper 2020/29 Financial Report to Area Councils.
Discussion of financial report at area council meetings in Term 3.

9.0 2019 NATIONAL EXECUTIVE ADVISORY GROUPS AND SPECIAL EDUCATION NATIONAL REFERENCE GROUP

Principals' Council

Paul Barker

Jenny Bernard

Trudi Brocas

Sonya Hockley

Peter Hopwood

Paul Hunt

Tony Hunter

Anne Johnson

Paul Johnson

Sharon Keen

Ripeka Lessels

Angela Lowe

Steph Madden

Jo Mahoney

Mark Potter

Terina Ranginui-Tahau

Greg Riceman

Rikki Sheterline

Cherie Taylor-Patel

Meralyn Te Hira

Karl Vasau

Martyn Weatherill

Kelvin Woodley

Joan Woods

Primary Teachers' Leadership Team

Jenny Albrecht

Tiri Bailey

Janene Butt

Jenna Clark-Hannah

Lovi Collier

Lorraine Guzzo

Trish Hunt

Zara Jackson

Nerra Lealiifano Tamarua

Tute Porter-Samuels

Karla Reay

Juliette Ridge

Jordan Shallcrass

Jo Tai

Siobhan Walker

Trish Weaver

 

Support Staff Caucus

Kaiawhina Tautoko

Jen Bennett

Adrienne Birch

Janet Bruce

Caroline Gilmour-Pope

Wayne Goodley

Maryann Hainsworth

Linda Jordan

Ally Kemplen

Sue Nimmo

Sue Page

Julie-Anne Roberts

Kahurangi Robson

Margie Robson

Suzanne Rogers

Carol Webb

Glenda West

Jo Westley

Special Education National Reference Group

Hannah Coleman

Mike Foxx

Conor Hendry

Te Aroha Hiko

Louise Hoggart

Kaye Hyams

Fiona McKenzie

Rosemary Miller

Johan Rall

Grant Ramsay

Byron Sanders

Elizabeth Tomlinson

 

Te Ope Kōhungahunga

Sandie Burn

Frances Carrell

Helen Hansen

Gemma Lynch

Virginia Oakly

Nicola Perry

Christine Rainbow

Shelley Shennan

Claire Southee

Kristen Stevenson

Megan Thompson

Tira Toki

Lee Turi-Welsh

Jill Wilks

Dianne Wright

10.0 2019 Financial Overview

An increase in subscription income allowed for a surplus to be reported for the year despite a surge of over $1.3 million spend on various campaigns and projects. This is in line with NZEI Te Riu Roa policy to run an operating surplus each year.

A rise in subscription income significantly reflected an increase in membership numbers during the year. This can be attributed to the constant efforts of both members and staff toward ensuring membership of NZEI Te Riu Roa remains relevant to both current and potential members as well as providing ongoing support for the major campaigns and projects.

Under the stewardship of the National Executive, expenditure continued to be monitored and kept within the overall budget, by the end of 2019 NZEI Te Riu Roa was well positioned to continue its commitment to funding the significant campaigns and projects it had committed to for 2020.

Overall income was also boosted by the return on AMP investment portfolio.

The overall financial position remained healthy, the surplus translated into an increase in the total equity attributable to the members. Cash flow remains subject to constant scrutiny and continues to be regularly and closely monitored as an integral part of overall financial management. The strong NZEI Te Riu Roa financial performance in 2019 allowed us to be better prepared in coping with emergency situations like COVID-19. As is common practice, the union prudently holds, at any point in time, sufficient cash reserve to cover 4 to 6 months’ worth of current operational expenditure while keeping planned campaigns and projects intact.

New Zealand Educational Institute Te Riu Roa

Summary of consolidated financial performance for the year ended 31 December 2019

Group
2019
$
Group
2018
$
Revenue20,141,97019,956,716
Expenses18,679,73719,498,370
Operating Surplus1,462,233458,346
Finance income563,863268,050
Fair value gain/(loss) on financial assets through surplus or deficit870,620(12,397)
Surplus before income tax2,896,716713,999
Income tax expense306,184180,266
Surplus for the year attributable to the members2,590,532533,733
Other comprehensive revenue and expense:
Gain on revaluation of land and buildings60,000108,942
Deferred tax from (revaluation) / disposal of land buildings391,820(13,704)
Total comprehensive revenue and expense for the year attributable to the members3,042,352628,971

10.1 Financial Performance

Total revenue increased by $185,254 from 2018 to 2019. The main contributor to this net increase was an increase in subscriptions of $1,283,629 reflecting membership growth attributed to the major campaigns of Kua Tae Te Wā (It’s Time) and Mana Taurite (Pay Equity). The increase was offset by a major reduction of $786,541 in rental income from investment property because of changeover of ownership of the Education House building in February 2019.

Total expenses decreased by $818,633 from 2018 to 2019. The main items contributing to this net decrease were $1,098,028 less spend on Education House Ltd, $677,042 reduction on Reserves funded campaigns and projects, and $162,024 less on Komiti Pasifika, Aronui Tōmua, Branch and Area Council levies. The cost reduction was offset by an increase in employee costs of $754,235 ($503,180 of it was directly related to additional staffing in campaigns and projects) and $456,688 more on operating lease spend. The hike in operating lease was mainly due to National Office rent being paid to the new landlord rather than to its subsidiary Education House Ltd within the Group.

10.2 Breakdown of income and expense

10.3 Breakdown of expense categories (excluding personnel)

10.4 Education House Limited (EHL)

The Education House building was placed on the market in early March 2018, sold two months later in early May, for a fair market price of $9.3 million with settlement, and change of ownership occurred in mid-February 2019. In light of COVID-19, the sale of the building was smart and timely. As a company, EHL continues to invest in short-term bank deposits to cover future moves and leases for new accommodation.

10.5 New Premises

With the sale of Education house in 2019, the search for new premises for NZEI Te Riu Roa in Wellington is underway at pace. In doing so, four key priorities are:
a) A building with good seismic strength

b) A building that will be fit for purpose in the long term

c) A building that reflects our aspirations for a healthy and sustainable planet

d) A place which reflects and feels like NZEI Te Riu Roa

In achieving this, we expect there to be significant capital costs and higher lease costs over what we are currently incurring. This reflects that we need a building fitout that is modern and that will last 10+ years and that seismically strong buildings in the Wellington property market are in limited number.

10.6 Financial Investments

National Executive is charged with stewardship of the Institute’s financial resources. This includes investment in financial assets (including the AMP Investment Portfolio, short term bank deposits and shareholding in the Trade Union Centre Canterbury Ltd), physical assets (including computer hardware, office furniture and equipment), and intangible assets (computer software and systems).

National Executive regularly reviews the union’s investments portfolio to ensure benchmark market returns are achieved and alignment with risk/return characteristics and objectives. This includes consideration of socially and environmentally responsible and ethical investments.

Since commencing in 2003/04, the AMP Investment Portfolio has recorded net gains of $4.92 million to end of 2019, with a closing market value of $8.09 million as at 31 December 2019 (2018: $7.28 million).

National Executive remains confident that the existing investment policy is appropriate and was confirmed by a review of the Statement of Investment Policies and Objectives (SIPO) performed during 2018.

However, the next few years will be financially challenging as the world responds to the COVID-19 crisis.

10.7 Income Tax Expense

For tax purposes, NZEI Te Riu Roa is designated as a mutual association and an incorporated society with its membership-related activities classified as not-for-profit. In this context, a mutual association is a self governing, non-government and voluntary organisation, most of whose income (i.e. subscriptions) is non-taxable, with expenses related to generating that same income consequently being non-deductible. Income tax is, however, paid on other income sources, such as gains in financial assets (investment portfolio) and interest income.

Consolidated income tax expense was $306,184 (2018: $180,266). Since the changeover of ownership of Education House building in February 2019, the Group no longer has deferred tax account arising from investment property.

10.8 NZEI Te Riu Roa Reserve Funds

At the end of 2018, Reserves Fund, including the Legal Assistance Fund, amounted to $3,308,746. During 2019, additional funds of $559,800 were transferred from Retained Earnings and $1,320,120 spent on various campaigns and projects. Major campaigns during the year were Kua Tae Te Wā (It’s Time Campaign), Mana Taurite (Pay Equity) and On-line Organising with the remaining amounts being spent across a range of smaller projects that included Hauora, The Accord and office relocation.

10.9 Subscriptions

Annual Meeting 2012 passed a resolution to amend the Rules of the Institute, approving membership subscriptions being adjusted on an annual basis to reflect movements in the annual Consumer Price Index (CPI) based on the twelve month period up to 31st December of the previous financial year. The purpose of this was to smooth out the unpredictability of subscription income increases that would be required to match cost increases, and hence future proof financial stability in the long term.

In the year to 31 December 2018 the CPI increased by 1.9%. In line with policy the increase was applied to subscription rates from January 2020. At the end of 2019, there were 49,563 members (2018: 47,224), equating to 33,708 FTE (2018: 32,704 FTE).

Looking to 2021, the increase that would apply in accordance with the rules is the December 2019 CPI rate of 1.9%. It should be noted though that there is a rule change proposal going before annual meeting this year to suspend the application of that increase on a one-off basis due to the impacts of COVID-19 on NZEI Te Riu Roa members. If this resolution is passed, there would be no increase in subscriptions in 2021.

Given the sound financial position of the union, National Executive supports this proposal noting that it is a time to show solidarity with members and it is economically viable because of a strong focus on building cash reserves over the years and tightly managed cash flows for emergency situations.

10.10 COVID-19

The COVID-19 outbreak has been declared a pandemic by the World Health Organization, causing huge impact on people’s lives, their whānau, social and economic communities.
NZEI Te Riu Roa manages its funds in a way that is reflective of the fact that we are a union that is 137 years strong, that we intend to remain a viable union for a long time to come and that our campaigns and projects should be funded from subscription income. The impact and effects of COVID-19 are being felt by businesses globally, this requires close attention to the financial position of NZEI Te Riu Roa and the maintenance of sufficient funds to withstand an economic downturn that is already affecting members directly and indirectly.

10.11 Acknowledgements

The National Executive wish to thank all those involved in the collection of membership subscriptions. The voluntary work of Chairs/Presidents, Secretaries and Treasurers of Komiti Pasifika, Aronui Tōmua, Branches and Area Councils in providing financial management for their respective groups is also recognised and appreciated.

Lynda Stuart

Chairperson

National Executive Finance Committee

July 2020

11.0 SUMMARY FINANCIAL STATEMENTS

The summary financial statements are for New Zealand Educational Institute Te Riu Roa Incorporated (‘the Institute’) and its controlled entity Education House Limited (together referred to as the Group).

The summary financial statements are presented in New Zealand dollars, which is the functional and presentation currency of the Institute and Group.

The summary financial statements are extracted from the full financial statements for the year ended 31 December 2019, which were authorised for issue on 13 April 2020, and upon which an unmodified audit opinion was issued by PricewaterhouseCoopers.

The full financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice. They comply with the Public Benefit Entity Standards Reduced Disclosure Regime (“PBE Standards RDR”) as appropriate for Tier 2 not-for-profit public benefit entities, for which all reduced disclosure regime exemptions have been adopted.

The Institute (Parent) and the consolidated Group are designated as public benefit entities (PBE) for financial reporting purposes.

The summary financial statements comply with PBE FRS 43: Summary Financial Statements.

No events have occurred between the date the full financial statements were authorised and the date the summary financial statements were authorised that require disclosures in these summary financial statements.

These summary financial statements cannot be expected to provide as complete an understanding of the financial performance or financial position of the Institute or its consolidated Group as that provided by the full financial statements.

The full financial statements are available by request via email addressed to lisa.dobbie@nzei.org.nz.

Statement of financial performance for the year ended 31 December 2019

NotesGroup
2019
$
Group
2018
$
Revenue
Revenue from exchange transactions119,918,48919,421,401
Other income223,481535,315
Expenses
Employee compensation and benefits210,626,4599,872,224
Depreciation and amortisation2209,337286,152
Operating lease expense21,121,441664,753
Other expenditure26,722,5008,675,241
Operating surplus1,462,233458,346
Finance income563,863268,050
Fair value gain/(loss) on financial assets through surplus or deficit 870,620(12,397)
Surplus before income tax2,896,716713,999
Income tax expense4306,184180,266
Surplus for the year attributable to the members2,590,532533,733

The above statement of financial performance should be read in conjunction with the accompanying notes.

 

For and on behalf of the National Executive

Liam Rutherford

National President 

20 August 2020

Paul Goulter

National Secretary

20 August 2020

Statement of comprehensive revenue and expense for the year ended 31 December 2019

Group
2019
$
Group
2018
$
Surplus for the year attributable to the members2,590,532533,733
Other comprehensive revenue and expense:
Gain on revaluation of land and buildings60,000108,942
Deferred tax from (revaluation)/ disposal of land and buildings391,820(13,704)
Other comprehensive revenue and expense for the year (net of tax)451,82095,238
Total comprehensive revenue and expense for the year attributable to the members3,042,352628,971
The above statement of comprehensive revenue and expense should be read in conjunction with the accompanying notes.

Statement of changes in net assets/ equity for the year ended 31 December 2019

Group
2019
$
Group
2018
$
Retained earnings
Retained earnings at 1 January19,088,80618,197,566
Net surplus for the year2,590,532533,733
Other comprehensive income391,820-
Net transfers from asset revaluation reserve on disposal of properties3,431,834-
Transfers from retained earnings to reserves fund(559,800)(1,321,473)
Transfers from retained earnings to legal assist fund--
Utilisation of reserves fund1,320,1201,678,980
Retained earnings at 31 December26,263,31219,088,806
Reserve fund and legal assist fund
Reserve fund and legal assist fund at 1 January3,308,7463,666,253
Transfers from retained earnings and reserve fund559,8001,321,473
Transfers from retained earnings to legal assist fund-
Utilisation of reserves fund(1,320,120)(1,678,980)
Utilisation of legal assist fund--
Reserve fund and legal assist fund at 31 December2,548,4263,308,746
Revaluation reserve
Revaluation reserve at 1 January3,745,1083,649,870
Gain on revaluation of land and buildings (net of tax)60,00095,238
Net transfers from asset revaluation reserve on disposal of properties(3,431,834)-
Revaluation reserve at 31 December373,2743,745,108

The above statement of changes in net assets/ equity should be read in conjunction with the accompanying notes.

The Asset Revaluation Reserve is maintained for the purpose of recording the surplus valuation of an asset that arises when an asset is valued over and above it's historical cost.

The Reserves Fund is maintained for the purpose of supporting and furthering the goals and objectives of the Group by such action or means as the National Executive may from time to time deem fit. The Legal Assistance Fund was set up in 2013 for the purpose of providing legal assistance. During the year a total of $2,610,000 was committed from retained earnings to fund various activities approved by the National Executive (2018: $2,747,000).

Statement of financial position as at 31 December 2019

NotesGroup
2019
$
Group
2018
$
ASSETS
Current assets
Cash and cash equivalents2,744,7342,793,192
Short term deposits18,831,9467,851,858
Income tax receivable-18,006
Trade and other receivables709,398622,375
Property held for sale5-9,238,656
Financial assets8,085,8677,283,188
Total current assets30,371,94527,807,275
Non-current assets
Financial assets70,00070,000
Provident fund loans8,51011,723
Intangible assets42,35059,650
Property, plant and equipment31,211,4531,103,914
Total non-current assets1,332,3131,245,287
TOTAL ASSETS31,704,25829,052,562
LIABILITIES
Current liabilities
Payables from exchange transactions1,883,6911,925,993
GST Payable344,875346,973
Income tax payable290,680-
Total current liabilities2,519,2462,272,966
Non-current liabilities
Deferred tax liability4-636,936
Total non-current liabilities-636,936
TOTAL LIABILITIES2,519,2462,909,902
Net assets attributable to the members29,185,01226,142,660
EQUITY
Reserves2,921,7007,053,854
Retained earnings26,263,31219,088,806
Total equity attributable to the members29,185,01226,142,660

The above statement of financial position should be read in conjunction with the accompanying notes.

Statement of cash flows for the year ended 31 December 2019

Group
2019
$
Group
2018
$
Cash flows from operating activities
Cash from subscriptions19,735,58018,468,033
Cash from property rentals123,460910,001
Sundry income226,357535,315
Interest received560,852343,338
Tax paid(174,673)(134,238)
Payments to suppliers and employees(18,539,026)(18,966,934)
Net cash inflow/(outflow) from operating activities1,932,5501,155,515
Cash flows from investing activities
Purchases of property, plant and equipment (PPE)(251,306)(106,588)
Purchases of intangible assets-(5,165)
Investment in short term deposits(23,309,046)(4,069,637)
Sale of property held for sale9,250,386-
Divestment from short term deposits12,328,9583,174,052
Net cash (outflow)/inflow from investing activities(1,981,008)(1,007,338)
Net increase/(decrease) in cash and cash equivalents(48,458)148,177
Cash and cash equivalents at beginning of the year2,793,1922,645,015
Cash and cash equivalents at end of the year2,744,7342,793,192

The above statement of cash flows should be read in conjunction with the accompanying notes.

Statement of cash flows for the year ended 31 December 2019

Note 1 Revenue from exchange transactions
Group
2019
$
Group
2018
$
Subscriptions19,795,02918,511,400
Rental income from investment property123,460910,001
Total revenue from exchange transactions19,918,48919,421,401

 

 

Note 2 Total expenditure
Group
2019
$
Group
2018
$
Operational expenditure
Employee compensation and benefits:
Salaries and wages9,836,6459,169,719
Pension costs (defined contribution plan)722,416640,320
Other employment benefits67,39862,185
Total employee compensation and benefits10,626,4599,872,224
Financial and administration expenses852,514810,959
Depreciation and amortisation209,337286,152
Operating lease expense1,121,441664,753
National office operations586,705568,379
Field office operations145,416178,405
Māori team operations66,30470,655
Total operations13,608,17612,451,527
Organising expenditure
Field office organising123,444132,571
Māori workplan11,97715,934
Membership support116,213130,186
Membership organising101,65893,403
International activities164,857215,293
Legal services68,70143,843
Branch/Area council levies1,306,2921,468,316
Inter-Union activities267,575257,017
Communications309,433265,903
Strategies (excluding personnel costs)1,462,0872,139,129
Pasifika26,87770,155
Total organising3,959,1144,831,750
Governance expenditure
National executive362,961390,024
Annual meeting418,879414,794
Māori governance203,515185,155
Total governance985,355989,973
Education House expenditure
Education House Ltd127,0921,225,120
Total Education House127,0921,225,120
Total expenditure18,679,73719,498,370

 

 

 

Note 3 Property, plant and equipment
CONSOLIDATEDProperty
(valuation)
$
Computer Hardware
(cost)
$
Furniture & Fittings
(cost)
$
Other Equipment
(cost)
$
Leasehold Improve.
(cost)
$
Work in Progress
(cost)
$
Total

$
At 1 January 2018
Cost or valuation4,049,350559,641219,909145,558451,54965,0495,491,056
Accumulated depreciation-(408,204)(181,787)(135,051)(305,293)-(1,030,335)
Net book amount4,049,350151,43738,12210,507146,25665,0494,460,721
At 31 December 2018
Cost or valuation740,000434,95098,85727,055258,350-1,559,212
Accumulated depreciation-(241,539)(64,848)(13,412)(135,499)-(455,298)
Net book amount740,000193,41134,00913,643122,851-1,103,914


Year ended 31 December 2019
Opening net book amount740,000193,41134,00913,643122,851-1,103,914
Revaluation60,000-----60,000
Additions-----210,826210,826
Transfers to/(from) WIP-198,2269,8912,709-(210,826)-
Depreciation charge-(119,634)(16,536)(7,789)(19,328)-(163,287)
Disposals at cost-(97,577)(19,941)-(69,894)-(187,412)
Disposals accumulated depreciation-97,57719,941-69,894-187,412
Closing net book amount800,000272,00327,3648,563103,523-1,211,453


At 31 December 2019
Cost or valuation800,000535,59988,80629,764188,456-1,642,625
Accumulated depreciation-(263,596)(61,442)(21,201)(84,933)-(431,172)
Net book amount800,000272,00327,3648,563103,523-1,211,453

 

 

 

Note 4 Income taxation
Group
2019
$
Group
2018
$
Income tax expense:
Current tax306,184180,266
Deferred tax--
306,184180,266
The tax on the Group’s surplus before tax differs from the theoretical amounts that would arise
using the weighted average tax rate applicable to surplus of the consolidated companies as follows:
Surplus before tax2,896,716713,999
Tax expense @ 28% (2018:28%)811,080199,919
Tax depreciation on buildings adjustment-7,027
Non taxable income and expenses adjustment(628,705)(58,210)
PIE tax paid on managed funds123,80931,530
306,184180,266


Deferred tax liability
Group
2019
$
Group
2018
$
The gross movement on the deferred income tax account arising from property is as follows:
Beginning of the year636,936577,123
Charged/(credited) to surplus or deficit-46,109
Charged/(credited) to other comprehensive revenue and expense(391,820)13,704
Transferred to current tax liability for tax on depreciation recovered on sale of property(245,116)-
End of the year-636,936

 

 

 

Note 5 Property held for sale
Group
2019
$
Group
2018
$
Beginning of the year9,238,656-
Transferred from property, plant and equipment-3,369,350
Transferred from investment property-5,930,650
Disposals(9,238,656)-
Impairment-(61,344)
End of the year-9,238,656

 

On 9th March 2018, the building owned by Education House Limited was placed on the open market for sale and reclassified to property held for sale. A sale and purchase agreement was subsequently signed on 11th May 2018 and settlement occurred after balance date on 14th February 2019. At the time of signing the sale and purchase agreement, a contract for repairing and repainting the building was in progress. The agreed price of $9.3 million was accordingly subject to a potential reduction to reflect any amount remaining to complete that contract as at the settlement date. An independent assessment determined that value to be $61,344 and this amount was recognised as an impairment against the property held for sale value at balance date.

Note 6 Events occuring after the reporting date

On 11 March 2020, the World Health Organisation declared COVID-19 a pandemic. On 23 March 2020 the New Zealand Government escalated the pandemic to a Level 3 crisis, with a further escalation 48 hours later to level 4, ultimately putting New Zealand into a lockdown. If the pandemic, and the measures which the New Zealand Government puts in place to slow the pandemic, continue for a prolonged period there may be an impact on members of the Institute, and consequently on subscription revenues of the Group. All non-essential and discretionary expenditure is currently being managed closely. Such measures will be reviewed on an enduring basis as the situation evolves. Consequently the pandemic may have an adverse impact on the financial results of the Group in the 2020 financial year.

As the declaration by the New Zealand Government was made after the reporting date, the Group does not believe it constitutes an “Adjusting Event”, as defined in PBE IPSAS 14 – Events after the Reporting Period.

The Group will continue to monitor the impact of COVID-19, but at the date of this report it is too early to determine the full impact the pandemic may have on the Group. The business has established clear business continuity processes and is confident it can continue to operate effectively in this new environment to serve both its members and its staff. Furthermore, the Group has significant cash reserves which will help mitigate any adverse financial impact COVID-19 may cause.

There are no other significant events subsequent to the reporting date which would materially impact the financial statements.

For the 'Report of the independent auditor on the summary financial statements' please refer to the PDF.