M AY 20 1 7 BUSINESSPULSE
A FRESH NEW LOOK FOR CCI
MEMBERS TO GET MORE BANG FOR THEIR BUCK
DOWN TO BUSINESS
PREMIER OUTLINES VISION FOR FUTURE
COUNTDOWN TO BOUNCEDOWN Excitement builds as construction phase enters the last quarter
Print Post Approved No. 100004175 ISSN 1328-2689
CCI – now supporting more than 9000 Members MAY 2 017 BUSIN ESS PU L SE 1
HELLO TO SOME OF CCI’S NEWEST MEMBERS
Aurora Labs Ltd Nathan Henry Director of Marketing and Business Development Aurora Labs is a company specialising in the development of 3D metal printers, printer software and the supply of associated consumable materials. T (08) 9494 1934
AURORA LABS JOINED CCI TO MAKE FULL USE OF THE NETWORK IT PROVIDES, ALONG WITH OBTAINING HELP FOR THE COMPANY'S VISA AND PRODUCT SHIPMENT REQUIREMENTS
E enquiries@auroralabs3d.com W www.auroralabs3d.com
Coldpoint Refrigeration Pty Ltd Rob Mcwhirter Refrigeration Specialist
Catwest
North Perth Physiotherapy
Wayne Dagnall Director
Coldpoint Refrigeration, Karratha’s leading air conditioning and refrigeration specialist.
Catwest is a Geraldton-based, manufacturing and supplier of quality asphalt in the midwest region of WA.
T (08) 9144 2700
T (08) 9923 3957
E service@cprefrigeration.com.au
E admin@catwest.com.au
W www.cprefrigeration.com.au
W www.catwest.com.au
Autosweep is an efficient, cost effective specialist in hardstand area sweeping of government, commercial and industrial service providers within the metropolitan and regional areas of Western Australia. T (08) 9258 8070 E info@autosweep.com.au
North Perth Physiotherapy is dedicated to being a trusted and respected provider of physiotherapy and exercise services in North Perth and surrounding areas. T (08) 9328 8389 E da.zuiderwijk@gmail.com W www.northperthphysio.com.au
Autosweep Adam Lambert Owner
Claire Zuiderwijk Practice Manager
WE JOINED CCI FOR ACCESS TO THE LATEST EMPLOYMENT, HEALTH AND SAFETY REGULATORY ADVICE
WE JOINED CCI FOR ADVICE AND ASSISTANCE WITH RECRUITMENT AND ALL ASPECTS OF MANAGING EMPLOYEES
W www.autosweep.com.au
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A NOTE FROM THE EDITORS
IN THIS EDITION Message from the CEO
ROBYN MOLLOY & TONY BARRASS
Business Pulse Editors
Message from the Despatch Box - Mark McGowan
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elcome to the May edition of Business Pulse. It’s no secret WA has been facing tough times recently as our resources-driven economy recalibrates. But businesses are proving resilient, and as this month’s theme of HR in Tough Times reveals, there’s plenty of up-swing and opportunity when the economy is in its current shape. In our main story, we take a walk through what will be the Southern Hemisphere’s best sporting arena — the Perth Stadium. Despite it’s hefty price tag, CEO Mike McKenna — who grants Business Pulse exclusive access — will run it on a tight budget. It’s this State’s best example of how a major infrastructure project can open doors for maximum employment and tourism opportunities. We also look at how Volgren Australia has successfully restructured its bus manufacturing business, while scaffolding company SMS Group reveals how it used the downturn to explore new opportunities. In addition, CCI Chief Economist Rick Newnham explains why WA should change tack on the GST, stop harping on about the unfair distribution of the tax and instead argue the case for economic growth for the whole of Australia. We welcome what we hope will be the first of many columns from new Premier Mark McGowan, who shares his thoughts on what role WA businesses will play in the economic recovery of the State and how infrastructure will be front and centre. In our next edition, we’ll be examining the theme of “Going Green”. Email editor@cciwa.com with your ideas. ¢
Message from the Chief Economist Both Barrels – Joe Doleschal-Ridnell CCI@work In brief New look for CCI Cover story: Inside Perth Stadium Bus company reinvents the wheel Start-up invades venue hire space Up and up for scaffolder despite downturn Overhaul for government contracts Apprentices create opportunity for business HR watchdog in firing line Plan for unexpected disruptions
CC I A 2 MEM 0% BER DIS S G CO ET UN T
WINNERS
WINNERS ARE GRINNERS
CCI congratulates its award-winning members
Fermoy and Vasse Felix
Edith Cowan University
Top drops on China flights
Top 200 Most International University
China Southern Airlines has selected two Margaret River wines as premium on-board beverages for all its return direct flights between China and Australia/New Zealand, including the Perth-Guangzhou direct path. Fermoy Estate Classic White and Vasse Felix Sauvignon Blanc Semillon will be poured on-board from next month and are the first WA wines to be featured in the carrier’s inflight offering. “This new business development facilitated by Wines of Western Australia and the Margaret River Wine Association on behalf of China Southern Airlines and WA wine producers reiterates the significant opportunities China presents as a key export market for Western Australian wines,” said Wines of Western Australia CEO Larry Jorgensen. “The Margaret River Wine Association has been exploring a range of business development opportunities for producers to break into and grow their distribution in China.” Fermoy Estate General Manager Cameron Rhodes said the new opportunity was invaluable. “The Chinese market represents an enormous opportunity for all Australian wine producers and the fact that Chinese travellers will be able to enjoy our wine whilst flying on China Southern will help promote Australian wines and Australian quality produce even further,” Cameron said. Vasse Felix was named Winery of the Year, White Wine of the Year and Red Wine of the Year Runner Up in The West Australian Wine Guide 2016 by WA Critic Ray Jordan. Fermoy Estate, Vasse Felix and China Southern Airlines are all members of CCI.
ECU has been named in the Times Higher Education (THE) top 200 list of the Most International Universities in the world. The rankings assess universities on the proportion of international staff, students and international collaborators on published research. The announcement comes after a stellar year for the university on the world stage. In October, ECU was named in the Times Higher Education World University Rankings, placing it in the top five per cent of universities worldwide. ECU also appeared at number 90 in the influential THE 100 Under 50 2015 global rankings for the top universities under 50 years of age. ECU Vice-Chancellor Professor Steve Chapman welcomed the university’s recognition. “ECU is a modern, international institution that is developing rapidly and it is a great pleasure to be recognised for that,” Professor Chapman said. “With our three campuses throughout Western Australia, ECU already has strong connections with our local communities. But this ranking shows we are also globally-focused, attracting world-class people to ECU and providing exciting international opportunities for our students and researchers. “We have more than 65 international partnerships across 27 countries and we will be increasing these opportunities in the future.”
Q&A Negotiate wages skillfully Rewards for negotiating EAs
BUSINESSPULSE
0
WELCOME
MAY 2017
DATA
LOCATION SERVICE
How WA’s 2015 Entrepreneur of the Year is using mobile phones to take the guesswork out of customer behaviour.
CARRIE COX
n 2009, Clinton House was drawn to a magazine article that suggested a person was far less likely to start a business after the age of 30. Life, it said, got too messy after 30, full of mounting responsibilities, debt and dwindling self-belief. The window of opportunity quietly shut. At the time, House was 29, working in the cinema industry and with a wife heavily pregnant with their first child. He nursed a long-held desire to steer his own ship and recognised the call to action. “The GFC had just hit and I thought if I can make it work in this environment, I can make it work at anytime,” he says. “I gave up my job, started my own company and just put everything on the line.” House’s company, Inhouse Group, was built around a product called ‘iinsights’ he had developed with the backing of family and friends. Iinsights is a web-based analytics platform that provides businesses with real-time data about visitor movements in and around a premises – where people are coming from, how many people walk past, how many people enter, peak periods of activity, how one day compares within another, how long a customer spends in a shop, how many people walk past, how often a customer returns and more. “It’s data that works on the back of the things you’re already trying within your business,” House explains. “It’s information that helps you see what’s working and what isn’t. It’s not a people-counting technology, but rather data that monitors trends and gives businesses concrete information that would previously have come down to guesswork. But while the back end is highly sophisticated and complicated, the front end – what businesses see and ultimately use – is very, very simple and accessible.” The data, which does not identify the person, is collected via a small plug-in sensor that detects mobile phone and bluetooth activity which is aggregated into a user-friendly dashboard. “The beauty of our product,” explains House, “is that we’re able to process all this data in a way that’s very easy to understand. The dashboard is simple, live and you can log in anytime. It’s not an absolute solution to any business problem on its own, but it does provide the data that can tell you whether the things you’re trying within your business – social media initiatives or advertising spend, for example – are actually making a difference.” Like most inventions, iinsights grew out of a new, perceived necessity. “Back in 2009/10, everyone in retail was scared of what was happening online,” House says. “Businesses were seeing online sales growth doubling and sometimes tripling each year, just exploding, and there was a panic that they weren’t in a position to compete with that. But when you look at why online sales were doing so well, a
DATA COMES OUT OF EVERY SINGLE THING THEY DO AND IT FUELS EXPERIMENTATION
18 BUSIN ESS PULSE FE B RUARY 2 016
TALK DIRECTLY TO WA’S SMALL BUSINESS SECTOR ECU IS A MODERN, INTERNATIONAL INSTITUTION
Message from a Member - Tina Williams, Volunteering WA
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large part of it is that they were able to fine-tune their data and see what was working and what wasn’t. Data comes out of every single thing they do and it fuels experimentation. Traditional businesses didn’t have that and so we sought to create meaningful data for them.” As well as business-specific data, iinsights has attracted the attention of local governments keen to access ‘macro’ data about the public use of large spaces and major events. In 2015 the City Of Perth used Inhouse to provide pedestrian data around a trial revamp of Museum Street, the results of which prompted a permanent street renovation and place-making program. Similar analytics have been provided for the Fringe Festival. “The goal now is to get as many sensors out there as possible, to scale a footprint, to get more companies on board and therefore more aggregated data,” House says. “For businesses, that means accessing real data on how they’re comparing to other businesses in the same area, or perhaps how their street compares with others.” From kitchen-table dreams in Mandurah six years ago to a Perth CBD office of 12 staff and industry accolades, Inhouse has experienced a whirlwind six years reflective of the IT sector. Not getting lost in the maelstrom, House says, has come down to focus. “For the first couple of years, we tried to do everything – inevitably you do. But then you have to stop and ask yourself: is this (particular service) long term? It might be bringing you some money today but is that where you see your business? Or is there another part of your business you could invest more in? It’s such a hard decision to make. There’s always a squeaky wheel, other noises distracting you. But when you do make the decision, and for me that decision was putting everything into iinsights and letting go of everything else, you just feel liberated. You’re able to deliver a better product and a better experience.” ¢
Dine-in with Hungry Jack Winners and Grinners Five
CCI is offering Members a free, one-year trial of the visitor analytics platform, iinsights. Request your sensor before 1 March 2016 at cciwa.iinsights.co.
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Published monthly by Chamber of Commerce and Industry of Western Australia (Inc) 180 Hay Street, East Perth WA 6004 T (08) 9365 7555 F (08) 9365 7550 E info@cciwa.com www.cciwa.com
New Zealand
If you have a winning story you’d like to share, email
In the battle between Australia and New Zealand, Australia ranks a whopping 117th in wage flexibility, compared to New Zealand, which is ranked 23rd. The big difference between Australia and New Zealand is the award system. In 1991, the New Zealand Government made significant changes to its industrial relations system, which included abolishing their system of national awards. Employees are now covered by an individual contract or union collective agreement, underpinned by a minimum wage and statutory minimum entitlements, similar to our National Employment Standards. New Zealand employers can establish terms and conditions of employment appropriate to their business and adapt to market changes. As a result, penalty rates generally no longer apply for weekend work across the New Zealand retail and hospitality industry, where businesses can be responsive to demand and opener longer providing more employment opportunities In Australia, weekend penalty rates have meant many small retail and hospitality businesses don’t operate on Sundays or public holidays or if they do it’s with fewer staff.
editor@cciwa.com
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AUSTRALIA VERSUS THE WORLD Australia is falling behind other countries on important measures because of our outdated industrial relations system
United Kingdom
After making changes to its unfair dismissal system, the United Kingdom now ranks 20th for flexibility in hiring and firing practice compared to Australia, ranked 126th. Australia’s unfair dismissal system is plagued by ‘give-it-a-go claims’ in which terminated employees make speculative claims seeking compensation. The low cost for employees to make a claim versus the high cost to employers in defending them encourages businesses to make a commercial decision to settle a claim and pay ‘go away’ money. In Australia, it costs less than $70 to make an unfair dismissal claim with many employees choosing to represent themselves. However, for employers the cost of defending a claim often exceeds $20,000. The UK has addressed this problem by introducing a £250 [$A500] fee to make an unfair dismissal claim, with an additional £950 [$A1900] fee for the matter to be taken to hearing. This has resulted in the number of applications falling from more than 191,000 claims per year to a little over 61,000. The high fees discourage speculative claims but there has been criticism they also discourage genuine claims. So the UK established a free, alternative dispute resolution system which has settled 63 per cent of disputes, with just 15 per cent settled by way of a monetary payment.
IN AUSTRALIA, IT COSTS LESS THAN $70 TO MAKE AN UNFAIR DISMISSAL CLAIM
Canada
A PAUL MOSS Manager Industrial Relations and Safety Policy
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ustralians enjoy a good international rivalry. The oldest started in 1882 when the Australian cricket team beat England at the Oval and The Sporting Times published an obituary for the death of English cricket – and the Ashes was born. But in the area of industrial relations, Australia is finding itself outplayed and outclassed by other countries that have adopted IR reforms that have dramatically improved conditions for business. In the recent World Economic Forum’s Global Competitive Report, Australia ranked 36 out of 140 for overall labour market efficiency — well behind comparable countries, such as the United Kingdom (5th), New Zealand (6th) and Canada (7th). There is a lot that Australia can learn from other developed countries in establishing an industrial relations system that promotes workplace flexibility.
In Canada, industrial action is the option of last resort and that’s why they rank 26th in the world for cooperation in labour employer relations, compared to Australia, which ranks 70th. Australia’s industrial relations system encourages disputes. With very few legal barriers, it is easier for unions to threaten industrial action to promote their claims than undertake genuine negotiations. In Canada, like Australia, industrial action can lawfully be taken as part of enterprise bargaining, but the requirements are far more extensive. Before workers can strike, Canadian employers and unions are required to undertake significant formal conciliation to help the parties reach agreement. Industrial action can only take place if the Minister for Labour is satisfied that further third-party assistance is of no use and following a majority vote of employees and a further 21-day cooling off period. These restrictions encourage greater levels of collaboration and genuine negotiations in order to secure an agreement. In Australia, the threat of industrial action is frequently raised early in the bargaining process, setting the tone for the rest of the negotiations. The Federal Government has recognised the need for industrial relations reform, the challenge now is to establish a roadmap that will ensure our labour market is competitive with other developed countries. Join Minister for Employment, Hon Senator Michaelia Cash at CCI’s industrial relation conference [on 7 April] to hear more about the industrial relations challenges facing Australia. ¢
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Buildcciwa.com Visit your brandfor with more BP. information Contact Paula or Connell contact on: CCI: Call (08) (08) 93659365 75447555 or email or email advertising@cciwa.com info@cciwa.com
President Agu Kantsler Editors Robyn Molloy & Tony Barrass (08) 9365 7628 editor@cciwa.com
Chief Executive Officer Deidre Willmott Graphic Designer Katie Addison (08) 9365 7518 katie.addison@cciwa.com
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Disclaimer: This information is current at 1 May 2017. CCI has taken all reasonable care in preparing this information, however, it is provided as a guide only. You should seek specific advice from a CCI adviser before acting. CCI does not accept liability for any claim which may arise from any person acting or refraining from acting on this information. Reproduction of any CCI material is not permitted without written authorisation from the Director of Advocacy. © Copyright CCI. All rights reserved.
MAY 2 017 BUSIN ESS PU L SE 1
AWARDS SYSTEM CRYING OUT FOR REFORM A MESSAGE FROM THE CHIEF EXECUTIVE OFFICER
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uman resources, people management and industrial relations have been at the heart of CCI since the organisation began in 1890. For more than 125 years, CCI’s expert team of HR and IR consultants have been helping West Australian businesses work with their staff to achieve better outcomes for their business and the State’s economy. In recent years, this has become more challenging. The human resources landscape has faced continuous upheaval as the WA economy transitions from construction-led growth to long-term production, with HR practitioners battling strained budgets, uncertainty among the workforce and pressure from management to implement change. But the tide is slowly but surely turning. Businesses
conditions in the economy, WA entrepreneurs continue to prove that business can adapt and thrive despite difficult circumstances. While this Business Pulse celebrates their success and applauds their ingenuity, it is critical that WA business is supported by industry and government not only with commendation but action. CCI has long called for the Federal Government to prioritise reforms to Australia’s archaic industrial relations system to make it easier for HR practitioners. First and foremost, a clear and simple framework must be established to help HR professionals through the fair termination process. There is great uncertainty around what constitutes fair or unfair termination, and the cost of defending a business in an
SHIFTING FOCUS FROM COST REDUCTION TO IMPROVING WORKFORCE PERFORMANCE across WA are telling CCI they are now shifting focus from cost reduction to improving workforce performance and flexibility. In this edition, you will hear from WA businesses and CCI Members who have mastered HR in tough times and perfected the art of doing more with less. Despite challenging 2 B US I NE S S P U L S E M AY 20 1 7
unfair dismissal claim is high. This leaves employers unwilling to manage poor performers, for fear that a costly wrongful termination case will be brought against the business. Should a case be brought to the Fair Work Commission, many employers will settle — no matter how frivolous the claim
— simply to avoid the financial impost of undergoing such a costly process. Particularly for cash-strapped small businesses, these factors combined can act as a serious deterrent to hiring permanent workers, which both hinders the productivity and profitability of business and damages the economy. The so-called ‘modern’ awards system is also crying out for revision. Many awards are a major hindrance to the workplace flexibility desired by workers and employers in WA’s contemporary economy. Often awards will dictate things like start times, finish times, days worked or increased labour costs for non-standard work hours, which ties employers’ hands to the detriment of many workers, particularly working parents. Nowhere is the inadequacy of modern awards more obvious than in compulsory, exorbitant Sunday and Public Holiday penalty rates, particularly in the retail and hospitality industries. By demanding that kitchen hands, for example, be paid upwards of $50 an hour on these days, awards are ensuring that many employers will not be to afford to open on Sundays and Public Holidays, or will open but with reduced staff, leading to inferior service for consumers. CCI Members have welcomed the FWC’s sensible penalty rate decision as a win for SMEs in the retail and hospitality sectors. Employers tell CCI this important reform will help
businesses employ more workers, offer more hours to current staff and contribute to growth in the economy. Enterprise bargaining is another area of staggering inefficiency within Australia’s IR system. The current process is becoming more and more adversarial, which is undermining productivity and leading to enterprise agreement provisions that are too complex, technical and costly for underresourced SMEs to contend with. Overall, Australia’s industrial relations system is unstable, rigid and imbalanced — the exact opposite of what a modern IR system should be. CCI will continue to advocate for a simpler, more flexible system that gives employers the freedom to work with their employees to find the best arrangements for both business and the workforce. And finally, we are delighted that Premier Mark McGowan is sharing his vision with Business Pulse readers and with his offer to work with the WA businesses to implement the Government’s policy agenda, particularly when it comes to jobs. ¢
Deidre Willmott Chief Executive Officer
TO GET INVOLVED: cciwa.com @CCI_CEO
OPINION
INFRASTRUCTURE PLAN CRITICAL FOR WA’S FUTURE
New WA Premier Mark McGowan gives a snapshot of what direction he’s taking to get the WA economy back on track and the crucial role WA businesses will play
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’ve always said my first job as the Premier of Western Australia would be to deliver our election commitments and fix the budget mess inherited from the previous government. I’m looking forward to working with WA’s business community to implement the Labor Government’s policy agenda, particularly in the area of job creation.
Nevertheless, we are absolutely committed to getting the budget back on track. There’s no easy fix. Addressing WA’s budget situation will require years of careful financial management and all sections of the community have a part to play. As the incoming Government, we’ve already made moves to bring financial control and accountability back to our decision-making. The fact that under the previous government, Treasury was excluded from major government decisions is unforgivable. Upon forming Government, we immediately reinstated the expenditure review process to provide more oversight of spending decisions. We will keep
WE ARE ABSOLUTELY COMMITTED TO GETTING THE BUDGET BACK ON TRACK We come to office in challenging times. Already this year, we’ve learnt the budget situation is worse than we could have ever imagined. A review undertaken by Treasurer Ben Wyatt and Under Treasurer Michael Barnes this month revealed a $1.2 billion downward revision to revenue from pre-election estimates, meaning the State’s net debt is on track to reach $42.3 billion in 2020. Western Australia’s finances are not in good shape due to years of budget mismanagement from the previous government. The further deterioration in revenue has exacerbated the fiscal challenge we are facing. To put it simply, we’ve inherited the worst set of books in history.
the Royalties for Regions program but we are determined to focus spending on projects that will create sustainable, long-term jobs, attract investment and stimulate local economies. While we continue to support the program, it’s clear it needs to be directed towards projects that really matter to people in regional WA, particularly in times of record unemployment. In December last year, we announced our plans to drive change across the public sector to help put the State budget back on a more sustainable footing. We will introduce new across Government KPIs in the public sector. Directors general and chief executive officers will be measured against the KPIs and 20 per cent of their salaries
will be linked to that assessment to ensure there is real change. This will focus Government on outcomes, not process. Under the plan, the number of senior executive service positions in the public sector will be reduced by 20 per cent, representing a real saving for Government. A Service Priority Review of Government will also be undertaken, with a target of reducing the number of Government agencies by 20 per cent, focussing on delivering quality services to Western Australians. We recognise the role WA businesses will play in the economic recovery of the State, with business front and centre in our Plan for Jobs. We’ll make sure that, where possible, money spent by the WA Government is used to support local businesses and create new jobs for Western Australians. Big projects like METRONET will create ongoing jobs for Western Australians, through a 15-year strategy to achieve more than 50 per cent of local manufacturing of railcars. A State Infrastructure Strategy is critical to future business investment and job growth. Businesses need certainty that infrastructure projects will be delivered
before they make investments and create jobs. We need to move away from the stop-start chaotic way of building infrastructure projects and move to whole-of-State longterm planning. The State Infrastructure Strategy will ensure industry needs like ports, road, rail and energy, and community infrastructure – such as health, housing and education – are coordinated in an orderly and timely way. This is a small snapshot of the McGowan Labor Government’s plans to bring the budget back under control, stimulate WA’s economy and create jobs for Western Australians. We’ve got a big job ahead of us but we are getting on with implementing our plans as soon as possible. ¢
MAY 2 017 BUSIN E SS PU L SE 3
POLICY
THE GST CONVERSATION WE HAVE TO HAVE CCI CHIEF ECONOMIST RICK NEWNHAM
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ost Western Australians believe we’re getting a raw deal on the GST, but unfortunately that just isn’t going to cut a deal in Canberra. The GST debate needs to be reframed in the national interest. Love or hate it, the Commonwealth Grants Commission calculates the distribution under a principle agreed to by all the states and is doing exactly what it should. However, there is an argument to be made which is in the interest of Australia as a whole —and not any individual state — that we should reform the GST and restore the incentives for states to promote economic growth. Now that the current distribution model has removed the incentive for states to promote economic development, a case for change has emerged. I am pleased to be joining the delegation of Andrew Forrest, Michael Chaney, John Poynton and Nigel Satterley in pursuing a case for change in Canberra at the highest level. CCI will provide economics support leading up to the meeting. If we are going to be successful, we will need to argue this change is in the national interest. As it stands today, the GST is distributed on the principle that every person in Australia should live in a state that can provide services as well as the leading state government in Australia. This is called Horizon Fiscal Equalisation. This was agreed by all the states when the GST was established. It was sold to the nation as the “growth tax” that the states had longed for. The 4 B US I NE S S P U L S E M AY 20 1 7
distribution method, however, has removed the incentives the states need to grow all areas of the economy. The GST is distributed in the following way. First, each state is reviewed for its costs of delivering services. For example, some states have more remote populations than others (NT, WA), meaning it costs more to deliver services in those states. Secondly, each state is reviewed to determine how much tax they could raise if they applied the average tax rate from around the country. This avoids any one state “gaming” the system. We now have a list of states and their relative capacity to deliver services. All good so far. The next step is to raise all the states up to the national average of service delivery by distributing the GST. This ensures that each Australian citizen has access to a minimum standard (the national average) of healthcare, schooling, policing and other public services that we all expect. This is where the GST distribution should stop. The states should be ‘partially equalised’ up to national average and then any remaining GST evenly distributed. Instead, the GST is then further unevenly distributed to bring every state up to the leading state’s capacity. Each state is now the richest house on the street and well above the national average. Finally, any left-over GST is then distributed on a per-head basis. As you can see, the GST distribution formulae has removed the incentives for states to encourage economic activity or drive efficiencies in
their delivery because they can sit back and expect to be brought up to leading state’s capacity every year. Let’s look at New South Wales and Victoria’s on-shore gas industries, which, were they not subject to state-wide moratoriums, would be multibillion dollar industries with millions in tax revenues flowing to the state government. Instead, NSW and Victoria have banned on-shore gas development and, as a result, they have a perceived lower capacity to raise their own government revenue. They pick up more GST than if they had developed their own gas.
Over the last decade the WA Government has consistently increased spending above and beyond revenue growth, leading to a structural deficit. Whether you are managing a government or household budget, if you consistently spend more than you earn you will end up in the red. What’s more, WA Treasury has its own forecasts of GST distribution for WA so it saw the GST ‘cliff’ coming from a mile away. As iron ore goes up, GST comes down. If we are going to be successful in changing the way the GST is distributed, we need to make the case in the national interest. For too long this debate has centred
WHILST THE GST DISTRIBUTION CERTAINLY DOESN’T HELP, WA’S FINANCIAL PROBLEMS ARE ITS OWN CREATION Whilst I don’t believe that the decision to ban on-shore gas development was made with the GST in mind, the incentive for reconsidering the decision has been completely removed, leaving other states to pick up the bill via the GST. Too often the debate about reforming the GST is mixed up in WA’s self-interest, namely our budget deficit and debt position. Whilst the GST distribution certainly doesn’t help, WA’s financial problems are its own creation.
on our own state’s interest, which is why our arguments fall on deaf ears in Canberra. To help create the case for change, the Productivity Commission should be directed by the Federal Government to review the economic benefits of changing the GST distribution to partial equalisation. Without a change to the GST we will continue to redistribute our nation’s wealth into mediocrity as state government complacency gets the better of us all nationally. ¢
POLICY
LESS IS MORE IN ADDRESSING NATION’S COMPLEX PROBLEMS Let’s start with an innovative and common sense national energy policy
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usiness is increasingly attacked for not paying its fair share of taxes and often accused of operating outside community expectations. Inevitably, it becomes the whipping boy in some political quarters when it has the temerity to suggest, for example, that tax cuts can boost investment, productivity and real wages. On the other hand, government policy to solve complex problems can often be appealing, but can ignore more effective market solutions. Ultimately, there needs to be a balance between government setting the appropriate parameters — and involving itself in partnership with business — and trusting the market to deliver the best outcomes for the community. Increasingly, this balance is out of whack. This is no more evident than in energy policy. Business is particularly vulnerable to heavy-handed Government intervention in response to valid public and business uproar about the rising costs and insecurity of energy supply. It seems there’s little appetite for spending the time to work through intricate and complicated issues — and governments seem too quick to come up with short-term, eye-catching announcements. In South Australia, the Government has outlined a plan to fund, build, and own a gas-fired
power plant. This initial $360 million investment is apparently only to be used in emergencies when wholesale prices reach their peak, but it’s naïve to think there won’t be pressure on the SA Government to operate this asset at other times, for example, to alleviate price pressures. Unfortunately, this asset will inhibit future private sector investment in base-load generation in that State. Indeed, this has already played out, with AGL shelving plans to build its own gas-fired power plant. A critical consideration — where is the gas going to come from? — is a question for a public or private owner. It is this question the SA Government should have focused on — not spending money in an area that the private sector is best placed to deliver. Of further concern is the plan to create local powers over the national operator and direct a certain percentage of generation to come from SA. By removing supply from Victoria, upward pressure on wholesale prices will result. It also raises the question; why shouldn’t Victoria, likewise, take
steps to keep energy in their state when they need it? This signals a movement into very dangerous territory, and if we’re not careful, may be the beginning of the end for the national electricity market. Two days after the SA announcement, Prime Minister Malcolm Turnbull announced an expansion of the Snowy Mountains Hydro scheme. The $2 billion plan is an enormous investment by the Australian taxpayer. A News Corp Newspoll following this announcement showed a lift in the Coalition’s primary vote which was directly attributable to this grand plan, demonstrating that governments that “do something” reap the rewards. Taking a step back, let’s consider some of the reasons why we have an energy affordability and supply crisis in Australia. Over the past decade, much of the rise of electricity prices can be attributed to network costs. This is the case in states that have both private and public ownership, and let’s not forget, it’s a regulator that sets what networks can charge consumers for their service.
We’ve also seen the introduction of the Renewable Energy Target, which without any other emissions reduction scheme operating in the electricity sector, facilitates generation capacity in a specific technology without any regard to what electricity demand is. It also allows obligations to be met in one state with the generation coming from another state, without regard to what the technical security ramifications are for the network. And finally, we’ve also seen NSW, Victoria and the Northern Territory place bans on natural gas exploration and development, cutting off much needed supply of natural gas in the East Coast. These examples demonstrate how regulatory frameworks have not operated well and market participants can only play to the rule book provided. Rather than looking at how governments can address the problem, decision-makers would do well to consider how removing government interference from the market, or altering frameworks, will lead to better outcomes for consumers. ¢ MAY 2 017 BUSIN E SS PU L SE 5
CCI@WORK 1. Lighthouse Leadership Series 23 MARCH More than 130 business heads turned out for a special lunch with West Coast Eagles chairman and Hawaiian CEO Russell Gibbs. Gibbs, a member of a number of boards including Satterley Property Group, St Ives and Murdoch University Foundation, said CEOs can learn a lot from sitting on boards. He said the five essential traits of good leaders include creativity, bravery, energy, emotional quotient and authenticity. ¢
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2. Our Breakfast Club reaches great heights 24 MARCH Patrick Hollingworth offered his insights into business using mountaineering as an analogy at a breakfast attended by 40 people. Hollingworth signed copies of his book The Light and Fast Organisation. ¢
3. Ricky Grace’s golf day a hit 31 MARCH About 40 corporate golfers took to the greens for networking at Vines Resort and Country Club. Golfers joined former Olympian and Perth Wildcats legend Ricky Grace to raise funds for CCI’s charity of the year Role Models and Leaders Australia. Grace, who is CEO of the charity, was thrilled with the $1000 raised on the day and the opportunities for networking. ¢
3 DIARY NOTE:
WA Works Sundowner presents FORGACS Marine and Defence 31 MAY Forgacs Marine and Defence is a fast growing, agile company that has a rich history in supporting the Australian Defence Force. While not particularly well known in WA, Forgacs has been involved in major naval projects for mor than 30 years including Collins class submarines, Anzac Frigates and Air Warfare Destroyers. It has now committed to growing a significant presence here in Western Australia. Join us for informal drinks, networking and the opportunity to hear from Managing Director Mike Deeks, who will provide details of the planned developments and the opportunities available to Western Australian businesses. Go to cciwa.com/events ¢
To register your interest in receiving more information about any of our 2017 events, please email functions@cciwa.com 6 B US I NE S S P U L S E M AY 20 1 7
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4. All aboard
for WA Works Sundowner 4 APRIL Curtin University plans to begin work on what would be the State’s second-biggest bus station early next year at its Bentley campus. The Bus Interchange Project was in the planning stage but would be ready to begin construction in 1Q 2018, Curtin Chief Operating Officer Ian Callahan told the WA Works Greater Curtin Sundowner. More than 100 people attended the sundowner to hear about the transformation of the campus as part of the $500 million Greater Curtin project. ¢
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5. Big numbers at IR Conference 6 APRIL About 100 people attended the CCI IR Conference at the Parmelia Hilton to hear from experts, including former vice president of Australia’s Fair Work Commission Graeme Watson, and current Deputy President Geoff Bull, pictured here on the right with CEO's for Gender Equity Executive Director Tania Cecconi. CCI’s Principal Employee Relations Consultant Kate Schick gave a rundown of how changes in the WA economy have been reflected in bargaining outcomes for enterprise agreements, while ABCC Western Regional Manager Clifford Pettit spoke about the implications of the new building industry code.¢
GET THE GUIDE IN YOUR INBOX CCI’s The Guide email hits your inbox every Monday morning by 9am giving you a look ahead at the important events, courses and dates to help you do business better. For more information go to cciwa.com/the-guide
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WHAT’S ON THIS MONTH 12 MAY The Breakfast Club is an event series dedicated to bringing talented authors and their books to the WA business community. Join us for a light breakfast and the opportunity to meet Catherine Fox, author of the book Stop Fixing Women. Go to cciwa.com/events
25 MAY Join CCIWA and the Western Australian Road Transport Association as they host WA’s first WA Freight and Logistics Summit. This must-attend summit will explore a number of key issues and challenges the industry faces today. Go to cciwa.com/events MAY 2 017 BUSIN E SS PU L SE 7
IN BRIEF
A DAY IN THE LIFE OF...
LEANNE PHILLIPSON, BUSINESS DEVELOPMENT DIRECTOR, BINDOON BAKEHAUS
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live in Perth and sometimes I have to open the shop which is in Bindoon, so I have to get up at 4.30am. From the moment I wake up there’s a million things running through my head, so I always take the time to sit down and meditate before I leave the house. I find it’s an important part of my day, as I know the minute I step into work it’s non-stop from there. I drive up to the bakery which
takes about 50 minutes to an hour and at 6am we start getting everything ready for the day because we open our doors at 7am. That’s basically putting up furniture and getting orders ready, putting labels on all the products, making sure the counters are perfect, getting the till system ready, the coffee machine set up and so on. With that, we’ll usually have three shop people out the front,
we’ll have someone in the kitchen doing up rolls and then we’ll have two to four people in the back baking and prepping and so on. At 7am the doors will open and from 7am we’re pumping. Every day is different, depending on what I need to get done. If it’s an office day, I usually have wages, staff requests, human resources, emails and plenty more to do. Other days that I’m working out the front with customers, I split my time between making coffees, helping and training employees and supervising the general goings-on of the business. I also spend a lot of time with my business partner Anne Maree, working on product development, marketing strategies and reflecting on the week’s progress — looking at what works and what doesn’t — and how we can change that to get better.
Lunch is our busiest time, so to maintain a high-level of customer service, I will often assist out the front. I enjoy speaking with our customers, as many of them are locals and have been regulars for the Bakery for the past 17 years. On our busiest day on record we made over 800 coffees in 10 hours, but on a typical Sunday (our busiest day of the week) we tend to make between 500-600. As for our other best-seller, on a busy day we sell around 1000 hot pastries. When we start to close for the day our staff are trained to work in an efficient manner as determined by their roles. We also have a checklist that makes sure everything is done before anyone leaves. I tell my staff that like an artist, we need a clean canvas to start on the next day, so nothing can be left undone. ¢
BESTSELLERS LAST MONTH Business and Finance 1. B arefoot Investor: The Only Money Guide You’ll Ever Need – Scott Pape $29.95 2. Legacy What the All Blacks Can Teach Us About the Business – James Kerr $32.99 3. Unshakeable How to Thrive in a New Era of Volatility – Tony Robbins $29.99. 4. Tools of Titans: The Tactics Routines and Habits of Billionaires, Icons, and WorldClass Performers – Timothy Ferriss $32.99 5. The Harvard Business Review Manager’s Handbook: The 17 Skills Leaders Need to Stand Out – Harvard Business Review $44.99
LESSONS LEARNT Laurie Curro, General Manager, Power System Services, Horizon Power Growing up I learnt … Stability is a good thing for growing families as I moved schools three times in primary school and as many times at secondary school, involving different countries and different languages. It also takes many different sorts to make the world go around.
Source: Boffins Books in Perth CBD
YOU DIDN’T HAVE TO BE EINSTEIN TO FIGURE OUT THERE WAS A MARKET FOR FAST FOOD
From my family I learnt … My parents taught me to believe in yourself and to make something out of life or use (it) to benefit humanity, rather than waste it. If you are going to start something, make sure you finish it. My immediate family keep me grounded and help me to balance my busy life. The most valuable lesson I learnt in school … Follow your passion. In my case, it was anything to do with electricity and I have enjoyed every minute of the technical aspects of this. This year I’ve learnt … How lucky I am to have a good team around me as they make me look good by achieving so much. At home, I keep getting reminded what a wonderful family I have. One lesson I wish I had learnt earlier … To be patient with people, appreciate what you have, and to play a musical instrument, and not just how to use a soldering iron.
Jack Cowin, Australian founder of Hungry Jack’s, which now has 400 outlets. 8 B US I NE S S P U L S E M AY 20 1 7
A small but crucial lesson to learn is … Life is too short, so make the most out of it.
IN BRIEF
AN APP FOR THAT
A new app will allow employees to maintain their own diary of work hours using GPS and could be used as a backup if concerns of underpayment arise against employers. ‘Record My Hours’ was recently launched by the Fair Work Ombudsman Natalie James, who recently launched the smartphone app. It uses ‘geofencing’ technology to automatically and accurately record when an employee is at their workplace. She says it will becoming a helpful tool which will be closely considered by her Fair Work inspectors should there be a dispute between a business and an employee on hours worked. “Employees are able to manually edit their hours and add or delete shifts and any timesheets exported by the app will differentiate between estimated shifts and those that are manually entered,” she says. “For years we have encouraged employees to keep a diary of their hours, this app is not a new principle; it’s a useful tool to make this process a lot easier and more user-friendly.” In representing employers in underpayment claims, CCI frequently comes across situations where employees are keeping detailed records of their working hours, which makes it relatively easy for them to substantiate a claim. This app will reinforce the need for employers to ensure their time and wages records are kept in accordance with the relevant regulation.
$2.9 BILLION The amount the Australian Tax Office wants to recover from seven multi-national companies
THE STORY: LAY OFF THE SOCIALS
Social media is changing the industrial relations landscape, says Fair Work Commission Deputy President Geoff Bull
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“NINETY-ONE PER CENT OF EMPLOYERS ADMIT CHECKING SOCIAL MEDIA TO SCREEN POTENTIAL EMPLOYEES”
TBA
YOU ARE THE HR MANAGER HOW WOULD YOU HANDLE THIS SCENARIO?
SOME OF YOUR EMPLOYEES HAVEN’T BEEN GETTING ALONG LATELY. NO ONE HAS LODGED A FORMAL COMPLAINT YET, BUT YOU’RE CONCERNED THAT THE BEHAVIOUR IS STARTING TO IMPACT PERFORMANCE. WHAT DO YOU DO?
Y $86 BILLION Bill Gates’ fortune according to the Forbes billionaires list for 2017. This was $11b higher than last year.
ull says the obsession with social media is resulting in an increased number of related issues, especially unfair dismissals. He says lots of employees are using social media inappropriately during work hours, while others are saying things about their employer out of hours and its landing them in hot water. “It was never a problem 20 years ago or less but it is an issue that is increasingly coming before us where employees don’t understand that social media is very dangerous when they start talking about their employer or when they start using it in the workplace during working hours,” he told CCI’s IR conference. “Quite often in matters before us we get people showing us copies of Facebook pages, posts and blogs and whatever else and what’s been said. “Normally if it’s been said around the kitchen table or in a hotel or in a private discussion that’s the start and finish of it, but if you put it on social media you’re stuck with it.” ¢
ou’re right to be concerned. The behaviour you’re observing could be due to several factors. Common reasons why conflict arises in the workplace include: Organisational change Personality clash Lack of role clarity Personal circumstances Bullying Management style (or lack of management) and Over or under-worked.
If left, these issues may leave the business exposed to direct consequences, such as claims for workers’ compensation, anti-bullying orders, unfair dismissal and discrimination. Indirect consequences may include high absenteeism, poor performance, low productivity and low staff morale. Early conversations are often an effective way to identify the changes to workplace behaviour. Good managers will keep their finger on the pulse by having regular catch-ups with their staff to see how they’re going. ¢ MAY 2 017 BUSIN E SS PU L SE 9
BUSINESS NEWS
NEW ERA, NEW LOOK FOR ONE CCI We’ve come a long way since 1853, but our commitment to business is unwavering
T TONY BARRASS
1 0 B US I NE S S P U L S E M AY 20 1 7
he story of Western Australia’s peak business body continues to evolve, with 2017 heralding a corporate refresh that includes a new-look logo, a state-of-the-art website and an overhaul of our core business to give CCI Members more bang for their buck. The CCI rebranding and enhancement of membership packages reflects the complexities of our changing economy, but more importantly gives your company or organisation better access to CCI’s unique business services that capture any opportunities to grow and prosper in uncertain times. It’s what CCI does. In fact, it’s what the Chamber has been doing since 1853. Just 24 years after Captain James Stirling’s arrival, a gaggle of businessmen met at the Freemason’s Hotel and formed the first incarnation of what is now WA’s most vocal and respected voice of commerce.
Back then it was declared the Western Australian Chamber of Commerce by luminaries such as Mark Dyett, Luke Samuel Leake, George Frederick Stone, Samuel Waterman Viveash and George Shenton who were keen to kickstart the struggling economy of the Swan River Colony.
lobbied then Governor Charles Fitzgerald in more practical actions, such as removing the rock bar at the mouth of the Swan River, expediting the development of upstream Perth and opening various trading opportunities along the waterway. Through two World Wars, a
AS A MEMBER-BASED ORGANISATION, CCI EXISTS TO HELP BUSINESSES OPERATE AT THEIR BEST While the Chamber instigated public debate about such vexed issues as tariff regulation, postal arrangements, duties on imported goods and protecting the business community from fleeing debtors, it also successfully
Depression, numerous mining booms and countless recessions (one of which we had to have, apparently), CCI — in one form or another — has led the way in championing the cause of business, both big and small.
BUSINESS NEWS
CEO Deidre Willmott with past CCI leaders, and above, an early meeting of Chamber representatives in the South West.
And seeing it’s been 25 years since the Confederation of WA Industry and the WA Chamber of Commerce and Industry merged to become one CCI, there’s no better time to recalibrate what the Chamber does and how it does it, says Charles Kobelke, CCI’s Marketing Operations manager. “Six months ago we started a process that enabled us to get significant feedback from our Members about the services we offered — and this has allowed us to make sure our Members are front and centre when it comes to receiving the best possible advice and support from CCI,” he says. The new star logo will replace the image of an elegant swan atop the CCI acronym born in the 1992 merger, and was created by our federal affiliated body, the Australian Chamber of Commerce and Industry. By the end of this year, all ACCI’s statebased partners will have taken up
the uniform rebranding boasting that state’s colours — with ours, of course, being blue and yellow. “The market has changed. The economy has changed. Business has changed. There’s never been a period that has seen so much disruption to so many industries over such a short time,” Kobelke says. “The Chamber needs to identify the issues of the changing workplace before they happen. Our membership needs to know what’s ahead. If we are reacting to problems when they arise, then we are too slow.” The new CCI website will be relaunched on this month and give members an easy path to the CCI’s many tools, resources and advisory services available through various membership packages. “WA businesses are the lifeblood of our state,” he says. “Although running a business can be one of the most rewarding
endeavours, it can be also one of the most challenging, and the changing market environment has been challenging for most businesses small and large. Businesses have adapted to the change by tightening up, diversifying, looking for niches, aggressively seeking out new business and continuing to focus on customer service.
by using CCI’s professional advice services and resources. “The united strength, diversity and engagement from the considerable number of Members allows CCI to effectively amplify the business community’s voice to all levels of government. This means WA businesses can focus on what they do best — growing and creating value.”
“As a Member-based organisation, CCI exists to help businesses operate at their best and business leaders gain the confidence to make critical decisions as well as tackle growth
For more information regarding the benefits of the new membership packages, please contact Memberships on membership@cciwa.com or call 1300 422 492. ¢ MAY 2 017 BUSIN ESS PU L SE 1 1
HR IN TOUGH TIMES
COUNTDOWN TO
More jobs flow as construction of our world-class stadium enters the final quarter
ROBYN MOLLOY
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erth Stadium is now 75 per cent complete and procurement and employment opportunities continue to roll in. VenuesLive — the State Government-appointed operator — now has just months to prepare for the handover from contractor Multiplex on January 1 next year.
their lives in what will be one of the world’s best stadiums. While a lot has been made of the $1.3 billion price tag, McKenna is confident he will deliver West Australians much bang for their buck in terms of opening and managing the stadium. “Our remuneration for just doing our job isn’t fantastic . . . at the end of the day we’ll only make money if we exceed expectations, and that’s what we’re focussed on. That means cost control as well as income generation,” he says.
WA PUNTERS ARE IN FOR THE TIME OF THEIR LIVES IN WHAT WILL BE ONE OF THE WORLD’S BEST STADIUMS CEO Mike McKenna, in an exclusive tour of Perth Stadium with Business Pulse, says WA punters are in for the time of 1 2 B USI NE S S P U L S E MAY 20 1 7
“The build and the process of developing it has been well specified by the Government and it is a very tight process. Our job
is to make sure we get the most efficient result. Our remuneration as an operator is based on our ability to generate results over expectations.” McKenna says running the stadium on a tight budget is no different to many other businesses who are feeling the pinch right now. “Not too many people are having it easy any more. It’s not just tough times in Perth, it’s tough everywhere because there is a much greater focus on bottom line results and to a large extend that means you have to control your costs,” he says. “The upsides in revenues aren’t always there, and for us, if we don’t get the revenue we have to make sure we manage our costs, so it’s about profitability rather than just generating revenue at the top.” His excitement is palpable. “I couldn’t be more excited and I think I reflect the whole team — in fact, anyone who has worked on this site. I’m excited, but if you talk to any of the builders who have been working here, they’re all excited too.” And while he’ll soon be
running the show, his modest “digs” just a few hundred metres’ walk from the actual ground reflects his hands-on attitude. His office is tiny. On the other hand, the grand structure that is the stadium is an amazing place to behold once you pop out from the temporary buildings. McKenna has about 30 staff out of an eventual team of 72. He says the HR team probably has the biggest job to do. “They’ve got not only 70 permanent roles, which takes a lot of work, but (they’ve got) to recruit and train 2500 casuals — an enormous job.” Of those 2500, 1830 will be required to work at all sold-out events. “There’s everything from supplying us with staff uniforms right through to safety equipment, like requiring ambulances, carts to move food and beverages through the inside of the venue and a whole range of different things,” McKenna says. “We’ll spend about $20 million a year on supplies and services and of those, a large proportion will be catering. “Some will be contracted to
HR IN TOUGH TIMES
O BOUNCEDOWN preferred suppliers, but a lot of it will be available for the market and for West Australian businesses to provide. “We’re very focussed as part of our catering plan on locallyproduced food and beverages to make sure people coming to the venue are getting to experience West Australia, rather than just come to the stadium.” He says businesses should keep an eye out for the opportunities, which also include security and cleaning. “There’s a lot of glass in there to clean,” he quips. While construction is being completed by Brookfield Multiplex, Venueslive is responsible for the internal fitout — all the things that would fall out if you tipped the stadium upside down and shook it, says McKenna in the easiest way to describe the different roles of contractor versus operator. Once open, there will be ongoing opportunities around the stadium site as well, such as the 40 or so annual organised activity days in the surrounding parklands, or the 1500-person amphitheatre. > p14
WA Games could be a goer, says Beattie Hosting the 2022 Commonwealth Games could just be the shot in the arm the WA economy needs, says Gold Coast Games Chairman and former Queensland premier Peter Beattie. Perth Stadium CEO Mike McKenna says it’s the perfect venue. The 2022 Games is currently up for grabs after South Africa’s Durban was stripped of its right to host the Games due to missed deadlines and financial problems. Liverpool and Birmingham have already expressed interest in hosting but Beattie says Perth would be ideally placed to host it — and he would be happy to offer advice. “Perth is an ideal location, it’s got an international reputation as a city and it’s got a lot of infrastructure,” he says. “It’s up to (Perth) obviously, but what I do offer is if the State Government or the Lord Mayor of Perth wanted some advice about the economic benefits, how to work smart to reduce the costs, how to get the maximum out of a Commonwealth Games, then we’re happy to provide that advice. “We would bend over backwards in preparation of any submission they wanted to make.” Beattie says the Gold Coast is spending under $1.5 billion on the games but the economic benefits will be more than double the cost.
“Realistically, it’s a real shot in the arm and WA is going through the same sort of thing that Queensland is in. It’s sort of post-mining boom and we’re looking for things to drive the economy,” he says. “There’s no doubt that the widening of the roads, the extension of light rail and the construction activity that’s associated with the Commonwealth Games in the Gold Coast has really led to an economic boom. “That’s one of the reasons why you’ll see so much economic activity on the South-East corner of Queensland which is driving the Queensland economy and outside of that it’s flat.” McKenna confirmed the new stadium had the capacity to host the Games. “We’re here to host a wide range of sporting events and we can certainly manage Commonwealth Games as part of the design of the venue, but I’ll leave it to those who have to spend the money to decide whether it is the right time to attract that event,” he says. “It would be straight after the Gold Coast Games, which means it is probably less likely than a different time, but yes, the venue can host those events as well as things like athletics championships where you want to attract a world class event. This is the venue to do it.” Perth last hosted the Commonwealth Games in 1962.
MAY 2 017 BUSIN ES S PU L SE 1 3
HR IN TOUGH TIMES
> With up to 60,000 people regularly making their way to the stadium, mostly by public transport, suburbs near the stadium should benefit too. “One of the things we’ve just started talking about is how we can work with local businesses on the routes where the main public transport distributors are going to be dropping people off and picking people up,” he says. It may sound like a lot of work but McKenna, who was the architect of the Big Bash League and has run football and cricket events at stadiums around the country, says he and his team will deliver the best fan experience they can. “There is a whole raft of concerts, soccer games, rugby league and rugby union games we’ve attracted that wouldn’t be here otherwise. Bringing things to Perth that we otherwise wouldn’t get, I think is what we are seeking to achieve,” he says. “This will be one of the best stadiums in the world and 1 4 B US I NE S S P U L S E MAY 20 1 7
certainly the best in the region, not just Australia. It has facilities here that you won’t find anywhere else in Australia. It is bringing the very best of ideas into the one stadium is fantastic.” McKenna flags its best features as the largest screens in the Southern Hemisphere coming in at 10.24m x 33.28m, and the 15,000 LED lights which can enhance the fan experience by lighting or darkening the venue for team entrances or other celebratory moments. The seats are bigger than other stadiums and have cup holders, and most importantly, there are more toilets than any other venue — 1500 in all, of which 781 are female. “Every seat is about 40m from a food and beverage outlet or a bathroom, so the key for that is you don’t have to spend too long away from your seat and miss the action,” he says. “The look of the stadium is also something that is very striking. This is a real key feature and
ultimately an icon for Peth. If you are coming in from the airport, then it becomes one of those things that forms part of the gateway to Perth, and we’re pretty proud of the way it looks, too.” Perth Stadium will be a full-time operation with two restaurants and parklands open every day. When the footbridge is complete, it will open the Burswood Peninsula to East Perth. “The whole precinct is a sevenday-a-week destination. There’s an a la-carte restaurant that seats 150 people and a 500-person buffet next door to that. It is a top-range aspirational venue. “We can see people coming here for this facility and other things around the river as just part of your day-to-day life.” The area will be the heart of WA tourism, says McKenna, who’s planning a four to five month-long festival to celebrate the stadium’s opening and give everyone the chance to get in on the action. “There is real relief that this is going to be part of the solution
and growth of the tourism industry in Perth,” he says. “Tourism is a major driver of jobs in this State and is one of the key industries, with 93,000 people employed in the industry, and we will help feed the rest of the tourism industry. “That could be an Ashes Test match, people coming every weekend for AFL games, staying for the game but also for a weekend in Perth, a trip to Margaret River or, in fact, a week going up to Broome. That is a critical part of the reason why the WA Government spent $1.3 billion on this site. “To open the venue in a way that suits everybody, we will make sure that activity with local businesses is set up and wellorganised, and the whole thing can kick off in the most effective, efficient and fun way.” So, will the Ashes Test be the first event at the stadium? “The cricket wicket will be ready for the Ashes,” he says. “Absolutely. However, the
HR IN TOUGH TIMES
Stadium CEO Mike McKenna, top, shows off what will be one of the world’s best stadiums. rest of the building isn’t due for handover until January 1, 2018, so any decision around the Ashes is one that is really up to the builder and . . . the State Government until their commissioning period is technically complete.”
edge to the project, where some stadiums such as Adelaide Oval allow people to walk across the rooftops, a bit like climbing the Sydney Harbour Bridge? “We’ve got all sorts of ideas that are in play,” he says. “That’s something we’re interested in.
PERTH STADIUM WILL BE A FULL-TIME OPERATION WITH TWO RESTAURANTS AND PARKLANDS OPEN EVERY DAY The wickets were transferred from Gloucester Park in April and the playing surface was set to be laid in June. “It won’t be a brown dessert — it will be a green oasis. It is playable pretty quick. We’ve got plenty of time, but let’s get it in and make sure it is well established.” What about an adventurous
“We’re not doing it at this point in time, but it is of interest.” While completion day is closing in, the last five to 10 per cent involves a lot of the detail. “There’s a significant amount of work done on the external part of the venue, a lot of the stadium parklands are in place and growing, other parts are yet to be
finished, particularly where there is construction and car parking and those sorts of things. “There are 1100 workers now onsite and maximum of 1200 by the time they finish. “Almost all of the exterior is completed, including the building, a good proportion of the parklands around the riverside, and further around to the big community oval.” The activity going on inside the stadium is mesmerising to watch from our high vantage point. It’s like watching ants . . . Fluro-covered workers all on a mission. There’s people walking everywhere, up and down the fascinating five-storey construction site. Views to the west are magnificent and take in the city skyline and the iconic WACA. You can see the restaurants taking shape as they point towards the Swan River and our changing city skyline. You can just imagine them in another year’s time teeming with punters revelling in the views.
The landscaping is slowly but surely morphing into the 6.5ha Stadium Park. “What you find when you go into the venue on a weekly basis is a hell of a lot changes — finishing off interior passageways and corridors, concrete bricks being laid, glass being installed, plaster being put up, rooms being divided — things are starting to take shape.” Stadium Park sits between the Swan and the Graham Farmer Freeway and includes a sensory playground, billabong, two ovals and loads of options for various activities on any given day. McKenna’s right — the stage is set for this to be Perth greatest showcase. Interested in opportunities at Perth Stadium? Come to a Meet the Buyer breakfast with CEO Mike McKenna on May 23 at the CCI Function Centre, 180 Hay Street, East Perth. Visit events.ticketbooth.com. au/events/23098 or email functions@cciwa.com. ¢ MAY 2 017 BUSIN ES S PU L SE 1 5
HR IN TOUGH TIMES
TAKING CARE OF BUS-NESS
If you get staff along for the ride success becomes much easier, says transport leader
V HAMISH HASTIE
1 6 B US I NE S S P U L S E MAY 20 1 7
ehicle manufacturing is a tough business, but Volgren Australia is proof that if you don’t shy away from change in the face of stiff competition, there’s a lot of success to be had. The next time you step on a Transperth bus, chances are you’ll be on a Volgren vehicle. Based in both WA and Victoria, Volgren build coach, school and public buses using engines from the likes of Volvo, but in recent years has been struggling from overseas and other national competitors. After recognising the need to change their operation to improve quality and safety, they underwent massive operational and workforce changes under the careful direction of WA manager Matthew Smith. The improvements mean it now takes less than half the time to build a bus. The process was driven by a need to adapt to the evolving market, but to make it work they had to make sure staff were on board. Smith says the bus industry is
constantly evolving. “In the bus industry we certainly have seen major changes in the landscape . . . a high proportion of school buses are now imported from overseas competitors,” he says. “Like any manufacturing business in Australia if you’re not striving to improve, you’re not in the game.” He says initial attempts at culture or behavioural change were ineffective and they soon realised they needed a different approach. “One of the first things that we tried was to use consultant groups to see what could be done,” he says. “If anything this was a valuable but rather painful learning curve because it almost broke us. “It was an attempt at forcing change via a technical approach. “Of course, what this failed to consider was that people have emotional responses to change, and do not believe that change is better. “Without giving people the ability and confidence to transition, all it really did was
create an incredible amount of stress. Staff were still trying to do what they believed to be best practice . . . unfortunately in their experience this was what has been tried and proven in the past.” Smith says the build process became unmanageable. “Our quality defects at the customer inspection almost rose 1500 percent, we fell off the pace by almost three weeks on on-time delivery. These are critical factors that you cannot ignore,” he says. In their next attempt, they took a more people-driven approach, including better leadership and creating effective shop-floor groups. “To do this type of change you must have leadership . . . you cannot sit at a desk to manage it, you must get out on the shopfloor and spend a lot more time talking to people,” Smith says. “Secondly, we completely took a relook at how we selected our team leaders. “We had the usual fault that many companies have in promoting leaders based on technical knowledge — we began
HR IN TOUGH TIMES
State manager Matthew Smith and his workers at Volgren’s Malaga factory. looking for exactly the opposite. “We were looking for team leaders to actually lead the team, and so we were looking for a totally different skill set and that was how to have conversations, how to inspire confidence, how to draw out the best in other people.” He says they also worked on diversifying the groups to bring a range of ideas together.
a welder, a painter, an electrician, so when they had problems the ideas that came out were very different. “We keep the groups small to encourage conversations and introduced flexibility through allowances so leaders could be trialled and groups added or rearranged to suit workload volumes. “We removed individual targets
IF YOU’RE NOT STRIVING TO IMPROVE, YOU’RE NOT IN THE GAME “If you have four welders who are all the same age and all did their apprenticeships at around the same period and you ask them to solve a problem they will always come back with the one answer,” he says. “We started diversifying cross-functional groups with someone old, someone young,
and focused on a consistent, balanced group effort.” He says these groups mean workers are better equipped to deal with problems. “If you have one manger who’s trying to manage everything, he’s only got one set of eyes, he won’t see everything — problem solving needs to be delegated to the
lowest possible level,” he says. “If you can empower your entire organisation on fixing problems the results will exceed your expectations.” Volgren also changed the layout of their Malaga facility to complement the culture change. This included improving tool availability, material delivery systems, embracing lean manufacturing and improving the working environment. “Most, if not all, of our work processes have changed considerably,” Smith says. “We had a lot of operations that were done in situ on the vehicle, this involved a lot of platform work, a lot of climbing up and down, a lot of working at heights and a lot of heavy lifting. “Now over 80 per cent of operations are done in an ergonomic position as a sub-assembly on a jig, then the modules are assembled into a whole vehicle.” He says that philosophy means both efficiency and safety have vastly improved. “The operator has all the tools available at his fingertips to do
the job at a waist height bench so there is no possibility of strains or falls, and we have seen a dramatic reduction in the total number of injuries along with a reduction in the cost of managing our injuries,” he says. Five years ago, it took 45 days and 1000 hours to build each vehicle. Smith says that figure has been dramatically reduced. “Our CEO set a challenge to build busses in 10 days and less than 500 hours which was inconceivable at the time. We have exceeded these goals and are planning our next level of improvements,” he says. Customers are also a lot happier. “We’re back to an extremely good level on quality and our on-time delivery has recovered to being near perfect,” he says. He says the one lesson he learnt from the whole process was to get the staff on board first. “In essence you’re trying to achieve a revolution. Revolutions do not occur because somebody is ordering them to do it, but because everybody wants change,” he says. ¢ MAY 2 017 BUSIN ESS PU L SE 1 7
HR IN TOUGH TIMES
MEET THE NEW SPACE INVADERS A local innovative start-up is reaching for the stars
S ROBYN MOLLOY
HOPEFULLY WE’LL BE THE BIGGEST SPACE RENTAL COMPANY — YET WE OWN NO SPACE 1 8 B US I NE S S P U L S E MAY 20 1 7
pacetoCo founders are on a mission to disrupt the rental industry and open the floodgates as to how — and where — people communicate. Breaking with tradition and following the lead of Uber, which owns no cars, and Airbnb, which owns no hotels, SpacetoCo owns no space. And its three Perth founders, Jeremy Hurst, Daniel McCullen and Daniel Franco, are bursting with excitement. They’ve launched their website, finished their previous jobs to work full-time on SpacetoCo — space to co-share, collaborate, communicate and co-work — and are waiting for bookings to flood in via their cyber shopfront, SpacetoCo.com. It’s simple. Find and book a space for any type of purpose anywhere in WA. It’s free to list and spacers — those doing the hiring — are charged only for the time a space is booked. The venue gets its share, with SpacetoCo taking 5.5 per cent. You can see photographs online. Everyone is happy. Their maiden booking was for their first ever media interview — with Business Pulse, of course — via their shopfront website at a hip little room in the Technology Park function centre in Bentley. It’s here over sparking water —
included in the booking fee — the trio outline their grand plan. “It’s on,” Hurst declares. “We’re eating baked beans, as Dan puts it. We’re budgeting and putting our heart and soul and cash into this,” he says. They joke a lot, but this is serious. They all have wives and children. There’s a lot at stake. “It’s a bootstrap situation. We’ve funded this thing to date and there is a significant amount of investment that’s gone into the website,” Hurst says. With backgrounds in education, IT and business, Hurst, McCullen and Franco have spent more than a year researching the way people book and find space and have come up with what they believe will be a co-sharing revolution. “We are definitely going to be a disruptive force,” McCullen says. “Airbnb has no accommodation, Uber has no cars . . . hopefully we play in that space,” Franco says. “Hopefully we’ll be the biggest space rental company — yet we own no space.” Hurst has high hopes the business model will allow new opportunities.
“Like the wedding industry. We can potentially disrupt that. There’s going to be some amazing backyard venues and places that are not going to charge a motherload just because it’s a wedding,” he says. “They’re going to be beautiful and if you tie that in with something like Instagram where people are loving those off-beat experiences and unique and perfect moments, we’re going to enable a lot of that in your local area. “Or a yoga instructor can come up with a yoga course in 10 different locations in 10 weeks. That’s not possible right now, it’s really difficult to manage that. “My sister is going to do hair for a friend’s wedding. If she could just hire a chair in a salon that she’s never even been to, there’s an entire industry just based on that . . . a travelling hairdresser booking random chairs throughout the city.” The possibilities are endless, they believe. SpacetoCo is Hurst’s idea, born in the early hours while staring, ironically, at his newborn.
HR IN TOUGH TIMES
SUCCEEDING IN THE AGE OF DISRUPTION Australian businesses can become champions of disruption by learning how to reinvent themselves, says Tyro Payments executive director Jost Stollmann
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“I had a colicky young baby at home and in the early hours of the morning while feeding with my pinkie in his mouth giving him milk, this idea grew legs. “I was thinking about this little kid and the world he was going to grow up in and SpacetoCo literally just popped up into my head. “It was 1 November 2015.” McCullen’s response was swift when asked to join the adventure: “I’m in”, he said. Franco was also convinced: “I’d just had a baby as well so I was a bit all over the shop. I was so excited about the idea, that I forgot to tell my wife about wanting to invest before I spoke to Jeremy . . . whoops!” Hurst adds: “The three of us got together and it just worked straight out.” They’ve identified a gap in the market with many venues not even listed on a website. The business is focussed on targeting commercial spaces and existing venues, mainly because insurance has proved an issue for private homes. The team is ready to press the button on a cross-liability policy to cover
spacers and hosts once the funds are available. At the core of their values is the desire to be sustainable. “We don’t want people getting in cars and driving on the roads all the time, we’re really passionate about how our houses are vacant and severely underutilised,” McCullen explains. “We are passionate about reconnecting community. It really bugs us that the automatic garage doors mean that people drive up their street, hit the button and it comes down behind them and they walk straight inside their houses and there’s no conversation. “I can remember my old man getting out of his car and the neighbour leaning on his fence and saying, ‘Ritchie, what are you doing’. Then, suddenly it leads to all sorts of things, going over for drinks, going for dinner, whatever. It doesn’t seem to happen quite like that anymore. “This is a mechanism for community members to connect with their local community, that’s really important to us.” ¢
e says there are two camps in the marketplace — the disruptors and the disrupted. Industries are being disrupted as the world moves to cloud-based IT and an everyday richer world of mobile apps. Stollman knows a thing or two about being an effective disruptor, having launched Tyro back in 2006. Tyro is a digital challenger bank that serves Australian SMEs with fullyintegrated, mobile, cloud-based banking solutions and competes with the banking establishment. Under his leadership, Tyro was granted a full banking licence and raised about $100 million in equity capital while serving more than 18,000 SMEs, processing $8.6 billion in transactions and generating more than $95 million in revenue in FY15/16. “We want the Tyro story to inspire others to become disruptors within their industry. We need far more aggressive entrepreneurs who reach for the stars — some won’t succeed, but at least they will have tried,” Stollman says. He says those with limited resources and funds are often better placed to innovate and experiment with new ideas, as opposed to their cashed-up competitors. “My hypothesis is that the ones who have big profit margins do not feel the need to rethink, reinvent, remodel — they are too comfortable,” he says. “Smaller businesses often work on a shoestring budget and thinking outside of the box is a must for them. The thought process of, ‘I can’t reinvent because I don’t have the money’ is wrong because money finds good ideas and good ideas finds money.” “Reinventing yourself is not easy — you basically have to drop everything that you have learnt that made you successful and rethink your business model and what your future customer will expect from you.” Stollmann was there at the beginning of the digital age, having created German system and network integrator CompuNet in 1984, and turning it into a billion-dollar company. “Thirty years ago I would have said we are living in times of dramatic transformation and 30 years later I am still saying the same thing,” he says. “Thirty years from now, we will have digitised our world. We’ll have the physical world and a digital copy of it. Look at autonomous driving — it will only be possible with a digital copy of the real world.” Stollman will be in Perth to share his insights with the WA business community at a CCI Lighthouse Leadership event on 8 June. ¢
MAY 2 017 BUSIN ES S PU L SE 1 9
HR IN TOUGH TIMES
BUILDING ON SUCCESS Do your core business well and do it right, but don’t fear collaboration with other companies
T HAMISH HASTIE
YOU BALANCE COSTS AGAINST HOW DO YOU KEEP YOUR STAFF AND REMAIN VIABLE? 20 B US I NE S S P U L S E M AY 20 1 7
o weather a downturn, you need good people backing you and a thirst to diversify, according to SMS Group business development manager Ian Lewis, pictured above. SMS Group was started 15 years ago by Mark Welsh and Brad Willis as a small scaffolding company working mostly for metro commercial projects. Today, it’s grown into a major provider in heavy industry, supplying contract services to major commercial, industrial and mining, oil and gas projects, as well as providing rope access and sentry services. It recently opened a training institute. Lewis says in 2007 SMS Group secured a major greenfield project in WA’s Mid-West which gave them a platform and desire to expand and look at what other opportunities are out there. He says getting the teams right with the right commitment was
key to their success. “To respond to the recent downturn in the mining boom has been a balancing and analysing process,” he says. “It’s been one of those situations where you balance costs against how do you keep your staff and remain viable? “We recognised that the high-priced labour during the boom was never going to be sustainable, so we moved early to review our overall costs structure and we worked with all our staff and labour to reduce their costs to keep our services marketable and sustainable. “We’ve also recognised the importance of holding good staff — we have a 75 per cent retention rate with our scaffolders and our staff. “Safety and measurable productivity are the main things, putting the right people on that job where we know those people
and we know their capabilities.” Their approach is working, with the company avoiding any serious incidents in the past decade. This is, sadly, unheard of in this high-risk industry. Lewis says it is also important to open effective lines of communication with staff and clients. “It’s very easy in any business to say, ‘you’ve done a great job’ but one of the hardest things in business or supervision is saying, ‘hey guys, we didn’t make the level we needed to today’,” he says. “You need to do that in a way that its constructive, it’s a matter of saying, ‘well we didn’t make it, what happened, what did we learn from and what are we going to put in place to avoid errors.’ “Make sure you’re sincere about it. I’ve been in the mining industry where I’ve seen death and people get hurt and it’s
HR IN TOUGH TIMES
FOUR THINGS TO THINK ABOUT WHEN RESTRUCTURING
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uman Resources expert, Curtin Business School Associate Professor Byron Hanson, says there are four things you should consider when looking at restructuring or downsizing your organisation.
Communicate early, often and frequently “When senior guys get locked into a board room, everybody wants to know what’s going on in there and they will often leave those meetings and say, ‘don’t tell anybody until we get this perfect or until we get some sort of script’,” Hanson says. “Of course, it doesn’t work and the grapevine takes over and everybody knows something and if they don’t know something they usually make it up and makes the situation 10 times worse. “Even communicating that you don’t know what’s going on is communication and its helpful.”
Spend time on your new workforce
SMS Group Business Development Manager Ian Lewis.
“HR people spend way too much effort on communicating with the people that are leaving and they don’t do any work with the people that remain,” Hanson says. “You need to spend as much, or more, effort on what your strategies are with the people that are left, because it taints their view of the culture and it taints their view on how leadership handles people. “People say, ‘well, they have their jobs so they should be happy,’ but there has to be a strategy around what you’re doing with them and how you’re actually engaging with them.” He says restructuring often means staff take on extra workloads so it’s important to have an engagement strategy to focus on your remaining staff.
Target your redundancies a horrible industry when you hurt people. You soon start to understand that the value of mining is great, but the value of life and safety are the things you’ve got to push. “If you build that rapport with your team, honest results can be shared and actioned.” Lewis says the downturn also encouraged them to diversify and work with other businesses on new opportunities. SMS Group now offer sentry services for confined space management and a registered training organisation specialising in high-risk training and Verification of Competency assessments. They’re also embracing technology and are looking at providing virtual reality height simulation training and partnering with a drone company to offer bin, chute and silo inspections to check on wear and tear.
Lewis says business owner Mark Welsh recognised that diversification was important and is very open to opportunities that normally would not be placed in a scaffolding company. “It wasn’t a matter of saying, ‘there’s no work out there,’ it was a matter of saying ‘what else can we do’,” he says. “You’ve got to do your core business well and you’ve got to do it right. Collaboration with other companies like the drone generated chute imagery, will never replace needing to have labour services in those areas for repairs, but what we’re bringing in is a business that can support what we do and we, in turn, support theirs. “Looking at other businesses, agencies and best practices that can support your core business and make our business stand out in the crowd, that is what we challenge ourselves at SMS every day.” ¢
Hanson says you need to think about the short-term versus long-term when it comes to reducing staff. “What ends up happening in organisations, especially government organisations, who get this terribly wrong, is they often go voluntary (redundancies),” he says. “The challenge for that is the best people leave, and you’re left with the people that you didn’t necessarily want. It has to be targeted and be about making harder decisions around the performance of people that we want to actually let go of. “You need to think about where you are going to be when things start to get good again? Does this set you up for success or is it actually going to hold you back?”
Involve your staff While it might not seem like it, the idea of involving your employees with the company’s issue is a radical one, says Hanson. “The ‘what if’ question for me with organisations is always, what if we get through the downturn without losing one person in the organisation?” he says. “If you believe you’re going to uptick, ask that ‘what if’ question and then ask the group you’re working with, can we do this? “There’s many ways to cut costs, but if you just think the people are the easy number to do you’re not actually engaging them in the solution.” For more information, contact the Employee Relations Advice Centre on (08) 9365 7660 or email advice@cciwa.com ¢
MAY 2 017 BUSIN ES S PU L SE 21
SPONSORED CONTENT
Creating a healthier workplace Bupa Australia has helped some of the country’s largest and most recognisable employers design and implement effective workplace health and wellbeing programs.
How do you attract the best talent? What makes your employees get out of bed other than their pay cheque? These are some of the questions that motivate Bupa Australia, one of the nation’s largest health and care organisations - with more than 18,000 employees in Australia and New Zealand - to look after the health and wellbeing of its employees. Bupa also works with other organisations to identify and implement employee health and wellbeing strategies. Bupa’s Work and Student Health Solutions Manager Inga Vilkins shares some insights with Business Excellence.
What are some of the key benefits of workplace health and wellbeing programs? It’s quite simple. Research has shown that if people are happier and healthier, they tend to perform better. For example, research outlined in a Harvard Business Review article published in December 2010 suggests workplace wellbeing programs lead to lower absenteeism and increased productivity. Companies always ask customers what they want, but they rarely ask employees. We’ve found that many of the things that motivate people to come to work are non-financial. Looking after your employees’ health and wellbeing makes great business sense to help keep your people engaged, motivated, more productive and healthier.
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SPONSORED CONTENT
What are the first steps in introducing and designing a workplace health and wellbeing program? A workplace health program is a long-term project. When an organisation’s leadership team is focused on making the health and wellbeing of their employees a priority, the success and longevity of the program is generally greater. Once there’s commitment, the next step is to work out what health risks could be affecting the people within your organisation. Data collection is key when gauging what health risks and factors could be impacting an organisation’s workforce. We gather existing information from the organisation on performance and the work environment such as absenteeism data, engagement survey responses, claims reports and feedback from management. We also collate new information via a survey to measure perceptions and expectations of health and wellbeing within the organisation, as well as encouraging employees to take a short online health self-assessment. From this, we’re able to conduct a gap analysis and get a better understanding of the workforce’s health status and what health risks need attention relative to industry benchmark data.
How do you put together an effective program? Bupa works closely with our clients to target key business priorities and risk areas determined by our assessments. A program needs to strike a balance between the needs of individuals and a broader group. This includes, but isn’t limited to, on-site personal health checks; programs advising on smoking, sleep, nutrition, and stress management; online articles and resources; and group activities and challenges.
What do you think will be the top workplace wellbeing-related focus areas in 2017? Engagement (developing new ways to promote and effectively implement programs to increase participation, generate positive feedback and healthier habits), digital platforms (improving access and scalable delivery of health information, programs and benefits), behaviour change programs (assisting individuals with improving their health status through targeted and ongoing personal coaching to address key lifestyle factors) and financial wellbeing (providing access to information and advice on financial health to improve literacy and preparedness for different life stages, which can impact access to healthcare services and mental wellbeing). For more information, please visit www.bupahealthierworkplaces.com.au If you would like to join Bupa with the special benefits available to CCIWA members, please call 134 135 and quote Ref: 2097204 or email cciwa@bupa.com.au
MAY 2 017 BUSIN ES S PU L SE 23
BUSINESS NEWS
LABOR PROMISES BIGGER SHARE OF WA PROJECTS SME’s expect big things from Mark McGowan
HAMISH HASTIE
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ajor government projects and contracts will get their biggest overhaul in years following the election of a WA Labor Government, according to CCI Industry Connect manager Chris Pretorius. And he believes small and medium-sized businesses could be the big winners. During the campaign, Labor unveiled its Plan for Jobs that included legislation to improve opportunities for local SME’s to compete for government contracts. The Western Australian Industry Participation Plan Act will require businesses tendering for government work to submit “participation plans” for all projects and procurement that meet the WAIPP criteria. The plans will “include requirements to outline the likely number of local jobs that will be generated from the tender, what opportunities there will be for apprenticeships and training outcomes and the benefits for local business, including the enhancement of skills and knowledge.” As Opposition Leader, Mark McGowan promised Labor would 24 B US I NE S S P U L S E M AY 20 1 7
make sure West Australians would get a bigger share of work from all government projects. The participation plan will then be certified and evaluated by the Industry Capability Network WA. Pretorius says the scheme will follow the Victorian model, where ICN Victoria also track the performance of contractors to their committed participation plans. He says in general there will be a lot more transparency on what happens in these State Government projects and it should allow more local companies to get an opportunity to bid for work. “The whole program is primarily aimed at small to medium enterprises, the goal of the plan is to give those companies more opportunity by making sure that bigger contracting companies are advertising jobs openly to the market,” he says. “Because of the ongoing tracking of performance and reporting, government will have more consistent clarity on what is actually achieved in local content on projects. “As a Chamber we’ve consistently advocated for that level of transparency, as the current policy framework does not allow industry to scrutinise what has been achieved and where the contracts are actually going.” He says the policy would need to come into effect soon given the amount of major State projects
McGowan committed to during the election period and it was important to engage industry as early as possible.
Flank Iron Ore project. The project is in the Selection Phase Study stage which means BHP Billiton is currently studying
THE WHOLE PROGRAM IS PRIMARILY AIMED AT SMALL TO MEDIUM ENTERPRISES “In the Plan, there is a number of areas mentioned that will be targeted for small business opportunities, including defence contracts, State infrastructure strategies, Metronet and passenger rail rolling stock manufacture in WA. “From our experience, you achieve maximum success when you engage with local industry early in the project timeline. “This allows them to do things like work on their capability, bringing on new skills or joint venturing, but all these things take time. “Especially when it’s something new to our local industry, there’s a lot of preparation and early engagement work that needs to be done, so the sooner we can start working with industry the better chance we have of achieving that.” In the private sector ICN is now working with BHP on its South
options to sustain production. The South Flank deposit, about 100 km north-west of Newman and adjacent to their Mining Area C operation, is one option under consideration. The proposed project could have processing capacity of up to 80 million tonnes a year. Preliminary enabling works have started that will expand accommodation facilities to accommodate the construction workforce. A final Investment decision is expected in the first quarter of 2018. The cost of the expansion is estimated at $2 billion. ICN is working with BHP Billiton throughout the construction phase and its first two years of operation. All opportunities will be published on ICN Gateway (gateway.icn.org.au) and expressions of interest will be taken online. ¢
BUSINESS NEWS
DON’T GO SOFT WHEN IT COMES TO SOFTWARE
An overhaul of your IT systems can save your business big time
ROBYN MOLLOY
I
dentifying pain points and finding a cure can make savings to your bottom line — that’s the advice from Solution Minds Consulting director Jamon Johnston, right. He’s the Mr Fix-it when it comes to solving efficiency problems and updating enterprise software. His company worked closely with CCI last year to update its eight-year-old CRM system. “CCI’s CRM system needed modernising to increase agility and better serve its 9000 customers,” Johnston said. “Solution Minds Consulting performed a CRM-focussed business analysis, process mapping and an improvement initiative to document current ways of working, identify pain points, define improvement opportunities, document business requirements and determine if the incumbent CRM solution could be upgraded — or a new solution was required.
While CCI required a complete overhaul, other companies may need one aspect of their systems landscape analysed and replaced. “HR is commonly tackled as a stand-alone solution and doesn’t require the same implementation effort of broader ERP solutions including finance, sales, maintenance, warehousing and procurement, which all need to be woven together,” Johnston said. “We just completed a HR selection for a mining company
BEST-FIT SOLUTION FOR YOUR ORGANISATION CAN SAVE COMPANIES A LOT IN THE LONG-RUN “We then helped CCI conduct a rapid evaluation of alternative CRM systems, with Microsoft CRM being selected as the best platform for CCI’s objectives and needs. Solution Minds Consulting also helped to identify and evaluate a suitable implementation partner and support organisation, which involved an Australia-wide search.” The project is due to go live this month.
before Christmas. They were looking for a new solution to improve efficiency around recruitment and on-boarding particularly. The objective was to automate the entire process and rely less on manual document handling and emails. “They needed a system that could support employee learning and development. Employee self-service was also important to automate the leave application
process and would allow staff to access their pay slips, and so on. “We started with a review of current processes. When people talk about their current ways of doing things, naturally pain points are discussed — what’s not working well, what’s taking them a lot more time than it should, and where there was double-handling.” Inefficiencies were highlighted in the recruiting and on-boarding processes, which required emailing documents to prospective employees and getting them back by email. Losing track of specific versions, and where they were in the recruitment process, was not uncommon. “By introducing a portal with mobile access, candidates can complete forms directly and the information is available instantly in the database, which is much better than sending a form out via email and having to manually type it in when it comes back. That was a big driver. It also looks more professional to new candidates,” he said. Johnston said a HR system could help manage short and long-term employee incentives, which was important in a tight market, as people were a company’s greatest asset and retaining best talent was paramount.
Companies should allow three to four months to complete the process. “Companies often realise they need a new system, but they want to take the opportunity to improve what they do and save themselves money, rather than simply automating the existing inefficient processes,” he said. “It’s generally not about getting rid of people either — it’s about allowing them to spend more time on value-adding activities for the business. The best way to achieve this outcome is to conduct an extensive business analysis and process mapping initiative, and select a system to support how you want to operate, rather than how you are operating today. “There are hundreds of options out there for ERP, HR, CRM, etc, software and many implementation partners. Some software even has multiple partners, so the choices can be confusing. “Selecting and implementing the best-fit solution for your organisation can save companies a lot in the long-run because if you choose the wrong software or partner, it could be bad for your business for years and there could be significant costs to reimplement.” For more information visit www.solutionminds.com.au ¢ MAY 2 017 BUSIN ESS PU L SE 25
TRANSITION SMOOTHLY FROM EMPLOYEE TO SUPERVISOR, TEAM LEADER OR MANAGER Pathway to Management and Leadership training at CCI
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Learning pathway:
Course Fees (per course):
CCI recommends that participants have attended Introduction to Supervision Part 1: Pathway to Management before attending these courses. Upon successful completion of these courses, further learning opportunities at CCI are available.
CCI Member: $984.50
INTRODUCTION TO SUPERVISION PART 1: PATHWAY TO MANAGEMENT
INTRODUCTION TO SUPERVISION PART 2: PATHWAY TO LEADERSHIP
Becoming a manager can be a complex role as you are managing an array of tasks, including managing people. This training will provide you with the information and skills necessary to transition smoothly from employee to supervisor, team leader or manager.
Successful leaders understand who they are, their management style and, most importantly how this impacts their teams. This course will encourage you to reflect on your personal leadership style and consider how this impacts and drives your work area.
Upon completion of this course participants should be able to:
Upon completion of this course participants should be able to:
• Understand your role and responsibilities as a manager
• Understand your personal communication style using a behavioral
• Communicate effectively • Develop skills for communicating with your team • Understand the learning needs of your team • Manage your time for best outcomes • Understand performance management • Understand your duty of care obligations This course is designed for: Individuals new to a supervisory or management role, as well as those who have previously advanced from an employee to a management position, but did not receive any transitional training. Duration: 2 days, 9:00am – 4:30pm (8:45am registration)
Non-Member: $1,094.50 *Quote your promo code ‘Training’ to receive your 15% off discount.
DISCOUNT*
management tool • Build a collaborative and cohesive team • Explore employee engagement • Apply assertive communication with individuals within
your team • Manage the performance of your team members • Understand conflict management styles and when best to apply them • Apply mentoring within a leadership role • Manage change in the workplace
This course is designed for: Individuals in a management position who are ready to undertake a more strategic approach and apply leadership qualities in their role. Duration: 2 days, 9:00am – 4:30pm (8:45am registration)
Visit ccilearningsolutions.com for more information or contact Workplace Consulting: call (08) 9365 7500 or email learning@cciwa.com
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CCI ADVICE
APPRENTICES SMART CHOICE IN TOUGH TIMES
Incentives help attract motivated youngsters into the fold
HAMISH HASTIE
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usinesses shouldn’t underestimate the value of an apprentice or trainee in a downturn, says CCI Apprenticeship Support Australia manager Lena Constantine. According to the latest Australian Bureau of Statistics labour force survey, Australia has been experiencing unemployment rates around six per cent — levels not seen since 2003. Closer to home the unemployment rate has been hovering around 6 per cent since June 2015, but that figure jumps to 12.3 for young people aged between 15 and 24. When you look at regional areas like the South West or the Wheatbelt, that figure grows to more than 15 per cent. But a high youth
unemployment rate also means opportunities for businesses to train up young staff. Constantine says apprenticeships and traineeships allow employers to train and employ a new person on a trainee wage, while shaping and moulding staff to the specific needs of the business. “Employing an apprentice or trainee allows businesses to transfer knowledge to new employees. Apprentices require supervisors to teach them on the job as they work,” she says. “This style of learning allows employers to get their more experienced (and potentially retiring) staff to transfer their wisdom and knowledge on to the new team member. “It allows you to attract motivated new talent to your business . . . people seeking out apprenticeships and traineeships often want to learn a whole new skill set, are willing to put in the
hard work of working and learning at the same time, and are ready to start on a new career pathway.” Employing trainees or apprentices during slower times is a smart decision and Constantine says it sets employers up for growth in the long-term. “Apprentices and trainees allow businesses to employ new staff on a trainee wage, while training them to a national standard and to the specific processes and needs of the business,” she says. “Despite business being slow now, looking at the long-term picture WA will experience population and job growth. “Businesses who plan for this growth, through training their workforce, will not get caught with skill shortages when the economy is moving again. “Employers who train may be eligible for government incentives and funding to offset some of the costs associated with training. “In quieter times, employers
may have more time to invest in supervising trainees/apprentices, ensuring you can develop a well-skilled staff member for the future.” She says the financial incentives to help employers take on an apprentice or trainee are available. “Employers can usually attract up to $4000 in incentives throughout training. In Western Australia, employers are exempt from paying payroll tax for any apprentices or trainees they employ,” Constantine says. Talk to your Australian Apprenticeship Support Network (AASN) provider about the incentives and government support available to offset the costs of training. Apprenticeship Support Australia, powered by CCI, is contracted by the Federal Government to deliver Australian Apprenticeship Support Network (AASN) services. ¢
KAZAKHSTAN TRADE BOOST It’s now smooth sailing if you want to do business in the old Russian republic
HAMISH HASTIE
R
esource-rich Kazakhstan — better known for its most famous expat, Borat — is set to become the 77th country to allow Australian businesses to import various types of goods and equipment duty-free. The Kazakhstan Government’s decision to accept ATA Carnets, as they are known in international trade, creates new opportunities for West Australian companies to do business in the Central Asian republic which boasts major oil and natural gas reserves and ranks in the top 10 countries
for coal, gold, chrome, zinc, lead and bauxite. The carnet is an international customs document that permits duty and tax-free temporary importation of goods for up to one year. CCI is the only WA body with the authority to issue the document. From April 1, all professional equipment, commercial samples and goods for display at exhibitions and fairs can be covered by a carnet. It also allows Kazakhstan businesses easier access to Australian markets. Our annual exports to Kazakhstan are worth $19million and mainly consist of manufactured goods. CCI member Embed International sell games and leisure house card readers,
revenue management systems and point of sale solutions across a range of international markets. Embed’s warehouse and logistics manager Allan Armada says the Kazakhstan government’s decision was great news. “For our many shipments globally, the inclusion of Kazakhstan for the temporary and duty-free importation of different types of goods gives us a huge benefit because, we as a company that exports amusement game parts, are able to ship our products to Kazakhstan presenting fewer difficulties in customs-related clearances,” he says. “Also, by more straightforward shipment, we can always keep our promises to our customers by delivering the goods on time
making them satisfied at all times.” The Kazakhstan and Australian governments signed an Agreement on Economic and Commercial Co-operation in 2004 in a bid to facilitate trade, investment and economic cooperation. AUSTRADE has two offices in the region — Moscow and Vladivostok — that can help in understanding how business is done in Kazakhstan — from setting-up, finding suppliers, banking and finance, and even understanding social norms. This month, Kazakhstan will host the 8th International Mining and Metallurgy Congress and Exhibition in the capital Astana, with the event focusing on the growth of green energy and the economy that is built around it. ¢ MAY 2 017 BUSIN ES S PU L SE 27
BUSINESS NEWS
ACTIVISTS ARE UNDERMINING IR WATCHDOG Ex-FWC deputy slams system and calls for more consistency in decisions ROBYN MOLLOY AND HAMISH HASTIE
C
ontroversial ex-Fair Work Commission deputy president Graeme Watson believes political activists were getting in the way of predicable decisions and questioned whether the FWC was rewarding dud claims. Talking at the CCI’s recent IR Conference, Watson said the workplace relations system was undermining the objectives of the Fair Work legislation. Watson, who resigned in January, said inconsistencies in decisions between commission members in unfair dismissal cases meant it was becoming difficult for businesses to predict outcomes.
in a politically-charged area such as industrial relations, commission members needed to rise above partisanship and develop consistency when it came to unfair dismissals, he told the conference. “If people are dismissed and they can readily see whether their dismissal is likely to be viewed as fair or unfair, they’re less likely to make an application for unfair dismissal,” he said. Historically, unfair dismissal cases were found 60/40 in favour of employers, but this dropped to below 50 per cent in 2013/14 and below 40 per cent in 2015/16, Watson said. Between 14,000 and 15,000 applications for unfair dismissal were made to the commission each year, with applications and
BETWEEN 14,000 AND 15,000 APPLICATIONS FOR UNFAIR DISMISSAL WERE MADE TO THE COMMISSION EACH YEAR He speculated that judicial activism was the cause of the inconsistencies, with increasing interdependence between unions and the ALP. “The objectivity and predictability of the operation of the laws has been replaced by subjective attitude of particular people that are hearing cases, and that’s the reason for the levels of frustrations,” he said. “Unfair dismissal is different to an interpretation of law because there is discretion involved.” Where discretion was involved 28 B US I NE S S P U L S E M AY 20 1 7
appeals doubling since 2012/13. “I think there’s a difference in the approach and leading to what has become a sea of uncertainty for employers in unfair dismissal cases,” he said. “I don’t think advisers can easily predict the outcome of cases. We have issues of individual commissioners — it depends who has heard it. You are well served in WA, but it is more controversial in the eastern states.” Watson questioned whether the commission was now
rewarding unmeritorious claims because employers were faced with either the cost of the process or the cost of settlement. “The cost of the process is significant combined with unpredictability of outcome and the cost of settlement is also significant, and I wonder whether settlements are made based on an accurate assessment of the likely result of the case or because there can’t be an accurate assessment.” Watson said the settlement he liked most in his time at the commission was when the employer agreed to buy a cake for the employee. “They both thanked me for that outcome,” he said “If you get some positiveness in the room between the parties about the unfortunate circumstances that have led them there, people are prepared to go forward with their lives rather than be involved with litigation.” Watson had been at the commission since 2006 and worked on several high-profile cases including the Qantas industrial dispute in 2011, negotiations for modern awards and the Coles’ and McDonald’s’ wages decisions. FWC deputy president Geoff Bull also spoke at the conference and said there was a skyrocketing increase in applications to terminate enterprise agreements. There had been a 340 per cent annual increase, from about 70 termination applications in 201213 to more than 300 in 2015-16, he said. Bull says in the first three quarters of 2016-17 there has already been 416 applications. “The Act allows people to terminate their industrial agreements,” he says.
Normally and previously, agreements were only terminated once they passed their expiry date,” he says. “Mainly because the business has gone, there are no more employees, the agreement is out of date, the awards are more beneficial and so forth, they normally went through by consent and it wasn’t an issue.” He says what’s often happening now is that some employers are making applications because they’ve reached an impasse at the end of a bargaining period and they can’t reach an agreement. He says recent examples included Aurizon, where they argued they needed to change the restrictive nature of provisions that remained after the privatisation of rail by the Queensland Government in 2010. Negotiations had stalled and so Aurizon applied to have the agreement scrapped. “So they’re simply saying, ‘well, we want the agreements terminated, we want to go back to the award’,” Bull says. “That’s happening quite often in the resources sector and you can understand that the bargaining strategy immediately changes once an agreement is terminated. “While you’re negotiating an agreement that has all these beneficial terms in it, the union or the employer reps may not be keen on reducing any conditions or introducing any efficiencies because they’ve already got an agreement. “But once you’ve got rid of that agreement and get back to the award which has a set of minimum conditions, you’re obviously starting from scratch.” ¢
BUSINESS NEWS
EXPECT THE UNEXPECTED You can never spend too much time or effort preparing for the unforeseen
I HAMISH HASTIE
EVERY BUSINESS CAN EXPERIENCE A DISRUPTION THAT CAN PREVENT IT FROM CONTINUING NORMAL BUSINESS OPERATIONS
n February this year, most of WA was declared a natural disaster zone due to unseasonal rain and devastating floods that impacted businesses from Karratha in the north to Esperance in the south. Critical infrastructure was damaged, with several roads and bridges washed away and a damage bill for the table grape industry alone estimated between $10 and $15 million. Every business — large or small — can experience a disruption that can prevent it from continuing normal business operations. This can happen at any time. Although emergencies like earthquakes, floods and bushfires are front of mind when someone recalls a disaster, they’re not the only things that can cripple your operation. Influenza outbreaks can have a disastrous impact on staff numbers and even computer viruses can shut down entire IT systems, so modern businesses must be prepared to tackle any disruptive events effectively. Even organisations not directly impacted by a natural disaster or emergency can suffer significant disruption to their operations. This can result in financial hardship due to collateral effects such as continuity of supply chain, or retraction of a customer base or pool. With typically long intervals between events, it’s easy to understand why businesses
are complacent about preparing for emergencies, especially as crisis management is often unfunded and not part of the core business. CCI is helping businesses to be better prepared for disruptive events with the new Business Continuity and Disaster Recovery Workbook produced with the support of the Office of Emergency Management under the All West Australians Reducing Emergencies (AWARE) grant program. CCI People and Safety Consultant Jennifer Low says emergency planning and management are integral parts of business operation. “Yet many businesses the Chamber deals with regularly do not have sufficient emergency management systems or business continuity plans in place,” she says. “This can impact not only the business itself, but customers and the community more broadly. “Our members have found it hard to access employer specific information or guidance in this space. This project aimed to fill the gap.” The workbook walks businesses through a step-by-step process for developing a business continuity plan and covers principles that can be applied to any disruptive event. While the activities and principles are applicable to all business industries and sizes, the workbook has been developed
BUSINESS CONTINUITY AND DISASTER RECOVERY WORKBOOK Planning for the bad so your business can get back to the good
Business Continuity and Disaster Recovery Workbook
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with SME’s in mind who may not have existing comprehensive emergency business plans, policies and procedures. In a 2016 survey of its members, CCI found 61 per cent of respondents didn’t have any staff trained in critical incident management, while 66 per cent had not determined in how many days or weeks without a regular stream of income they would go out of business. When asked why they had not created a business continuity plan, almost 39 per cent said it was “common sense”, 33 per cent said they were “too busy doing their normal work to create one” and 28 per cent said they would “rely on their insurance”. Members also shared their own business disruption experiences, from power outages to fires, cyber-attacks and even an earthquake. ¢ MAY 2 017 BUSIN ESS PU L SE 29
BUSINESS NEWS
OUT OF THE SHADOWS
Patience the key to winning even a small part of the contract bounty, says defence veteran
L3 Oceania has won the right to supply new generation night goggles.
STEPHEN BELL
F
remantle-based L3 Oceania is a veteran in Australia’s defence industry, having helped pioneer noise assessment technology for the Collins submarine in the late 1990s when the company was still known as Nautronix. Nowadays the home-grown supplier has a new name and a growing military order book as it prospers under the ownership of big US defence conglomerate L3 Technologies. In October, for instance, L3 Oceania won a $307M contract to supply and support night fighting equipment — including new generation night goggles — to soldiers as part of the LAND 53 program. And with the Federal Government planning a $195 billion rebuild of Australia’s military capabilities over the next decade, L3 is in prime position to win more work on major programs including the Offshore Patrol Vessels (OPVs), Future Frigates and Future Submarines. For Scott Elson, an L3 Oceania
But he warns them to be ready for the long haul if they are to win even a small part of the bounty. “Defence is a particular culture and you have to be prepared to be part of it,” he says. “Secondly, you need to understand the true meaning behind the opportunities. “While defence is a very open procurement system, you can often be led to believe — because it’s open — that it is also easily achievable.” Not so, Elson says. “There is a lot of strategy, history and information needed to achieve results and, being an open system, it is very competitive at the same time.” Elson’s first rule is; “be patient”. “But also be very aware of the processes that you need to get in, win and deliver defence business.” One risk is the complexity of finding a way in to one of three main entry points: as a prime respondent to tenders, a provider of products or services to a
DEFENCE IS A PARTICULAR CULTURE AND YOU HAVE TO BE PREPARED TO BE PART OF IT veteran and Director of Sales and Marketing, it seems like a good time to give something back in the form of sage advice to industry newcomers. He says $195 billion might look like a particularly juicy prize to contractors feeling the pain of the post-boom resources economy. 30 B US I NE S S P U L S E MAY 20 1 7
defence “prime”, or supplying extra value as a contractor. If you do crack the entry code, there are also plenty more pitfalls to be aware of, Elson says, including the fact that defence represents a moving target: the constant rotation of Department of Defence personnel
means the average posting lasts only two years. And, contrary to accepted belief, the broader defence industry is not populated by a majority of ex-services personnel. In fact, it is a homogeneous community of “mostly middle-aged AngloAustralian men”, Elson says. And many of those men are on the other side of the continent. “We do quite a bit of business direct with the Defence and obviously that is Canberracentric,” he says. “And the other prime contractors we deal with are companies like Raytheon, BAE Systems, ASC, Thales and a few others who are mostly East Coast-based.” L3 Oceania’s current focus is Australia’s $3-4 billion OPV program. Elson says L3’s broader organisation in Australia has several products and services, and already boasts relationships with the three short-listed OPV designers — Damen of the Netherlands, and Fassmer and Luerssen of Germany — courtesy of prior projects. L3 Oceania will be pitching for the supply of navigation and communication equipment on the OPVs, which are scheduled to begin construction in 2018. The company has a number of its systems on the Australian navy fleet and is looking to augment or increase them to be part of the “common system” for the OPVs, he says. Defence Industry Minister Christopher Pyne has instructed OPV tender respondents to maximise their local industry participation by developing Australian Industry Capability Plans. Elson applauds the Government’s intention, but
warns there is a caveat: “They don’t want it to come with an additional cost. That is often the case — how you fit that particular requirement and how you can then add value without adding cost.” He also warns it is hard to define what Australian content is, as it often means “different things to different people”. Pitching for new work is really like “putting a business case together on why your system, being the Australian version, would be better than the customer already has”. L3 Oceania provides underwater sonars and communication devices alongside above-water systems found on the bridges of ships. It is hopeful of also being part of Australia’s two bigger marine defence projects, nine new frigate warships worth $35 billion and 12 future submarines worth about $50 billion. After a decade of doing the hard yards, the company now secures more than 90 per cent of its revenue from defence, with the remainder mostly oil and gas contracts. Elson is philosophical about the fact that L3 Oceania decided to dive deeply into defence just as the resources boom took off. It forced him to watch other WA contractors dine out during those hectic times. The WA Defence Industry Council is a CCI initiative comprising WA industry and representatives from state and federal government who advocate on behalf of the local defence industry and deliver the best value defence outcomes for Australia. ¢
BUSINESS NEWS
AMY ASKS; ARE YOU OK?
There’s a new cop on the beat as mining tries to improve its handling of mental health problems
STEPHEN BELL
A
n estimated 100,000 people work in the WA mining industry and Amy Douglas-Martens is in a unique position to help every one of them. The registered psychologist was recently appointed as the State’s first Mental Health and Wellbeing Inspector of Mines — a giant step for an industry traditionally focused on protecting workers from more obvious hazards such as falls, accidents and rockslides. Attitudes towards less visible mining risks changed significantly during the recent boom, when thousands more workers left their city jobs to join the fly-in fly-out (FIFO) cavalcade. Alongside those boom-time salaries and restaurant-quality food offerings came 12-hour work shifts and isolation from loved ones. The issue came to a head in 2014 when WA Parliament launched an inquiry, chaired by Liberal backbencher Graham Jacobs, after a spate of Pilbara suicides linked to FIFO work practices. Jacobs made a total of 30 recommendations on issues such as suicide prevention, anti-bullying procedures and regulatory changes that are now starting to filter through the industry. Andrew Chaplyn, Director Mines Safety and State Mining Engineer at the Department of Mines and Petroleum, says the appointment of Douglas-Martens is a culmination of years of work by the department to improve its mental health expertise. Some of the changes stem from the Jacobs report, others from various studies and committees that found DMP needed to incorporate more of the “softer” scientific skills in its directorate, alongside the traditional mining and engineering skills. “Over time we have slowly
expanded some of those psychosocial areas and this appointment of Amy is the next step,” Chaplyn says. “In addition, as part of the DMP’s graduate program this year we’ve also taken on a psychology graduate, Tyler van der Merwe.” Douglas-Martens says she is excited to join the department’s Winspection team and “figuring out how we can work together, and with industry, to improve mental health and wellbeing” across the sector.“There will definitely be challenges, but I am optimistic about the progress that is possible and feel privileged that I get to be a part of it.” Having worked as a consultant psychologist on mine sites in Australia and internationally, Douglas-Martens is no stranger to the industry. She says mental health risks may seem more ambiguous or less tangible than the hazards that mine sites are used to dealing with, but the consequences of allowing them to go unmanaged can become “just as real”. Mine site inspections and audits will be part of her remit. “The intention is to be a direct resource to industry through regular visits, and an internal resource for the inspection and investigation teams. “I expect that I will have time
for scheduled visits to site and availability to respond to specific needs as required.” She is not surprised it has taken until 2017 for the industry to establish her role in the department.
Prior to her appointment, the department collected information from 126 companies involved in mining operations and 17 operators of petroleum and major hazard facilities over a 10-month period to October, 2016.
MENTAL HEALTH RISKS MAY SEEM MORE AMBIGUOUS OR LESS TANGIBLE THAN THE HAZARDS THAT MINE SITES ARE USED TO “Given that there is still a stigma surrounding issues of this nature across society, it is not entirely surprising that what may be considered one of our most conservative industries has not employed a mental health and wellbeing inspector previously. “There are many organisations and individuals working hard to make a change to attitudes towards mental health and well-being in the workplace through building awareness and contributing to the existing body of research,” she says. “The department intends to be a significant part of this.”
The audit found there was room for improvement across all four criteria studied, but the most significant area needing improvement was the “level of consultation with the workforce on mental health and wellbeing strategies”. The results of this baseline study are being considered by the Mining Industry Advisory Committee Mental Health Strategies Working Group, which is tasked with identifying a framework to support good practice for positive mental health and wellbeing in resources sector workplaces. ¢ MAY 2 017 BUSIN ES S PU L SE 3 1
A
Q CCI ADVICE
&
A union organiser has started coming in and chatting with employees during their working hours. I’ve asked if he can leave, but he says that I can’t “hinder and obstruct” him. What can I do?
YOU CANNOT IMPEDE THOSE EMPLOYEES WHO MAY WISH TO SPEAK WITH THE UNION
Union officials are provided with a right of entry to workplaces to hold discussions with employees under the Fair Work Act. However, there are specific requirements to be met for a union official to exercise this right. Before arrival, the official must: Hold a valid entry permit issued by the Fair Work Commission Provide you with an entry notice at least 24 hours prior to the visit, specifying; 1. the reason for the entry 2. the day of the entry 3. the premises to be entered 4. the union of which they are associated 5. what section of the Fair Work Act authorises entry 6. the part(s) of the union rules which entitles them to represent the employees Only meet with employees during scheduled meal or rest breaks Comply with directions from the employer regarding the route to take to the meeting area and any safety requirements. Unless these requirements have been met, the official does not have the right under the Act to enter the workplace and should be directed to leave the premises.
DO YOU HAVE A QUESTION FOR ONE OF CCI’S EXPERTS?
32 B US I NE S S P U L S E MAY 20 1 7
YOUR EMPLOYEE QUESTIONS ANSWERED We’ve got a meeting room which we will set aside for the union’s visit, but they are refusing to use it and insist on using the lunch room. Many of the employees don’t want to talk to the union and just want to eat their lunch in peace. Currently the Act specifies that where an employer and a union official can’t agree on a meeting room, the default area is any room or area that the employees in question “ordinarily take meal or other breaks.” You cannot impede those employees who may wish to speak with the union. It may be suitable to provide notices to employees with details of the union’s attendance. Those employees who wish to attend can do so but those employees who do not want to attend will know to make alternative lunch arrangements on that particular day. ¢
editor@cciwa.com
@ CCI_WA #asktheexperts
CCI ADVICE
A RISING TIDE OF WORKPLACE CLAIMS But there are steps to minimise disruption and cost
PAUL MOSS
W
ith an uncertain labour market, many employers are reporting an increase in claims made by employees across a range of matters. This trend is most noticeable in the case of termination of employment, with over 18,000 unfair dismissal and general protection claims
made last financial year. Even in situations of genuine redundancies, which are exempt from the unfair dismissal system, claims are being made which have the effect of increasing the costs of valid decisions to terminate staff. Where performance management issues are being raised, CCI has also noticed an increasing propensity for employees alleging that their relevant manager or supervisor is bullying them, often followed by a workers’ compensation claim. Whilst some of these claims are likely to be based on a genuine
misapprehension of what bullying is, there is a clear pattern of the anti-bullying provisions being misused as a means of disrupting the performance management process and delaying any decision to terminate. For businesses undergoing restructures, there is also an increased risk of employees making workers’ compensation claims and/or delaying their return to work to reduce the likelihood of being made redundant, or to preserve an ongoing income base should redundancy occur.
These actions are resulting in increased costs to employers and in the case of many small to medium-sized businesses, the time involved in managing these claims is taking them away from running their business. While it is difficult to prevent claims, there are steps that employers can take to minimise the disruption and cost of many claims, and it is important to seek proper advice to discuss appropriate strategies. Paul Moss is CCI Manager, Industrial Relations and Safety Policy. ¢
CAREFUL HOW YOU CUT COSTS There are options to reducing wages — but it’s got to be fair to all players
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usinesses looking to cut costs should consider options to manage employee wages and benefits before considering ways to reduce their workforce. Ultimately, any changes to an employee’s contract can only be made either in accordance with the provisions of the contract, or by agreement. But some skilful negotiating may achieve an outcome that leaves both parties happy. There are two potential options; freezing or delaying wage rises, or reducing them. Let’s look at option one. If wage increases are guaranteed through employment contracts or enterprise agreements, employers would need to look for a provision which allows a temporary or indefinite freeze in wage increases, and notify affected employees. If there is no such provision in the contract or agreement, employers would need to seek permission to vary the
worker’s contract. Similarly, if a certain wage increase has been guaranteed through custom and practice, employers will need to seek agreement from affected individuals to implement a freeze. If wage increases are generally offered annually but no set amount is guaranteed, or it is based on the performance of the company, employers should still take steps to manage employee wage expectations during this time. Meetings may be held to update staff on the economy and the performance of the company, with a reminder that steps need to be taken to ensure the company’s ongoing sustainability. Any wage freeze must also not result in wages falling below minimum wage obligations, otherwise significant back-payments and fines may be enforceable. The second option is to reduce employee wages. But as this reflects a variation in contract, agreement must be obtained from
employees. Conversations should be approached in a sensitive manner and redundancies should not be used as a threat for non-agreement. Agreement should then be sought on an individual basis. Caution should be used to ensure employers do not coerce or force employees to accept a variation to contract — additionally, reductions must not result in wages falling below the minimum wage. If redundancies are considered, caution should be exercised to ensure that a decision to make someone redundant is not based on their refusal to decrease their wages. This would constitute adverse action and may place the organisation at risk of a general protections claim. If an employee who has refused a contract variation is eventually selected for redundancy, it is important to document the selection criteria that was considered (for
example skills, qualifications and experience) to demonstrate that the selection was objective and not influenced by a perceived lack of co-operation on the part of the employee. For employers covered by enterprise agreements and paying above legislative minimums, applications for variations to wages would need to go through a voting process with employees and an application to the Fair Work Commission. When steps need to be taken to adapt to changes in the economy, it can be quite unsettling for all levels of the business. It is important to strike a balance between effective communication with staff, and taking the necessary steps to implement change, while minimising the impact on the business and those affected. For more information, contact the Employee Relations Advice Centre on (08) 9365 7660 or email advice@cciwa.com ¢ MAY 2 017 BUSIN ES S PU L SE 3 3
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CCI ADVICE
THE ONLY CERTAINTY IN BUSINESS IS CHANGE
But there are smart—and not so smart—ways of taking your team with you
JENNIFER LOW
D
ownsizing, restructuring, and organisational change are all terms that no longer describe a process that a business may implement occasionally — they are now terms used to describe business as usual. The rate of change is only increasing. The thorough, mapped-out and strategised organisational changes of the past are gone. Change impetus can come from many angles, be they competition, globalisation, disruptive innovation, new share economies, digitisation, changing demographics, the lack of customer loyalty or variations to consumer tastes. To survive in such an environment, businesses must be constantly reinventing themselves. This may be in the form of major changes such as mergers, acquisitions or market expansion, or through more routine and traditional change processes such as adopting to new or upgrading technology, changing programs or redesigning systems and jobs. Regardless of the scale of change, these ongoing and seemingly endless efforts put a lot of strain not only on organisations but also on individuals. Change, and particularly poor change management, can lead to workers feeling anxious and uncertain about aspects of their
work or employment status. If we know that organisational change can be stressful, and that stress in the workplace is a wellknown factor for high turnover and sick leave, low morale, decrease in performance, and increased interpersonal conflict, it is a given that managing stress will be an integral part of the change management agenda. Yet for most businesses, it is not. Every business wants its changes to result in success, yet a significant barrier to achieving that success is being overlooked. If employees are stressed, they will be less receptive to change, or in some instances, openly resistant. Change-resistant employees may become retention risks as well as engagement and productivity challenges. It is not surprising then that only one in four change initiatives are successful and meet their objectives. Various studies over the years have identified several factors for successful organisation change. Some of the most critical include:
Good leadership fundamentals To effectively lead change, leaders need to firstly look at their own development. This involves understanding themselves and being open to changing their mindset, operating
style and behaviour to meet the context and needs of the initiative. It is important that they are seen to lead by example, and match words to actions.
Communication of change Communication is the most important strategy in achieving successful change. When communicating proposals for change, either concerning individual work conditions or larger changes to the workteam or company, key actions should include: Ensuring the right person has been chosen to communicate the change — do they have the skills and authority to do so? Explaining what the organisation is trying to achieve from the change (key objectives/vision) and discussing expected outcomes and timeframes with employees Being upfront about any significant adjustments that will follow the proposed change (for example a restructure or the need to retrain workers) and Establishing a communication system (for example meetings or emails) that keeps employees up to date with developments.
Paying attention to your employees
An organisation is only as good as its people. Even if the change process is done on time and budget, if employees are disengaged it is unlikely to be a success. Employee attitudes and readiness for change should be identified and the impact on employees should be monitored. Stress management and employee supports should be integral to the roll-out process.
Management training Change management brings unique challenges to an organisation’s management, so it’s important that managers are upskilled and trained to be champions of change. Skills gaps should be identified early against important characteristics such as communication skills, managing mental health issues such as stress, problem solving, emotional intelligence and conflict resolution. Jennifer Low is CCI’s People and Safety Consultant. CCI has a wide range of courses available to equip you with the skillsets you need to implement a successful change initiative. We also have a team of workplace consultants who can provide customised advice on planning or leading change. Contact CCI’s Workplace Consulting team on erconsulting@cciwa.com or call (08) 9365 7746. ¢ MAY 2 017 BUSIN ES S PU L SE 3 5
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CCI ADVICE
CHALLENGE EQUALS OPPORTUNITY Negotiating an EA in a downturn can be tricky—but there can be rewards for both sides
AMANDA CAMERON
T
here is no doubt that operating a business in a downturn presents a range of challenges for employers. It can also present an opportunity to wind back generous terms and conditions which an employer was forced to accept in more favourable economic times to attract and retain employees. But this is not without its pitfalls, and reducing employment costs can be a challenging exercise.
need to consider before you get to the bargaining table. Employees are unlikely to accept a reduction in terms and conditions unless you can put forward a business case which makes it clear why the reduction in rates is necessary. For this to be achieved, the reasoning for the proposed reduction needs to be carefully communicated. A reduction in terms and conditions can also have a significant effect on employee morale and result in increased employee turnover. Any reduction in employment costs will therefore need to be carefully weighed-up against potential losses in productivity. Strategies may also need to be put in place
ANY REDUCTION IN EMPLOYMENT COSTS WILL NEED TO BE CAREFULLY WEIGHED-UP AGAINST POTENTIAL LOSSES If you are proposing to negotiate a new enterprise agreement, or re-negotiate an existing agreement with reduced rates of pay, there are issues you
to retain key employees. One of the conditions for approval of an enterprise agreement is that it passes the Better off Overall Test (BOOT).
This essentially requires the FWC to be satisfied that each employee covered by the agreement would be better off overall if the agreement applied to them, as opposed to the relevant modern award. This requires the identification of terms which are more beneficial for an employee in the agreement, terms which are less beneficial for an employee, and an overall assessment of whether an employee would be better off under the agreement. Where rates of pay are significantly above the relevant award, passing BOOT is unlikely to be a challenge because the higher rates of pay can off-set some of the detriments in the agreement. However, where the proposed rates are the same as or very close to the award, close attention needs to be paid to the BOOT. The application for approval should clearly demonstrate how any detrimental terms are outweighed by the benefits of the agreement and that each employee is better off overall. If you present this material to the FWC in a clear and comprehensive way you will put yourself in a much better position to have your agreement approved. Even if you are successful in reducing the terms and conditions in your enterprise agreement, some employees may
have a contractual right to more beneficial terms and conditions. Like any contract, a variation to an employment contract requires the agreement of both parties. Therefore, to achieve the desired cost savings these contracts may also need to be re-negotiated with each individual employee. Several decisions of the FWC have made it clear that where an agreement is voted up by a group of employees who have more beneficial rates of pay/conditions, and those terms and conditions will not be affected by the introduction of the agreement, there may be difficulties showing that the agreement was genuinely agreed as required by the Act. This presents a difficulty for employers wanting to put in place base line agreements that will apply to future employees but have no impact on current employees’ rates of pay. Careful planning and consideration of these issues up front will put you in a better position to have your agreements approved. Amanda Cameron is a senior CCI Employee Relations Consultant. For assistance with enterprise bargaining, or any other industrial matter, please contact CCI’s Workplace Consulting team on erconsulting@cciwa.com or call (08) 9365 7746. ¢ MAY 2 017 BUSIN ESS PU L SE 3 7
OPINION
GIVE HAPPY, LIVE HAPPY Your business really can make a difference to people’s lives
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ith National Volunteer Week from May 8-14, it’s the perfect time to highlight the wonderful work of volunteers and what benefits corporate volunteering can mean to your business. Throughout the week, Volunteering WA will be supporting the national campaign — Give Happy, Live Happy — which evolved from research that tells us volunteering makes a difference in people’s happiness. It’s proven fact that volunteers are happier and healthier. Australia has about six million volunteers and while many states have seen a decline in numbers, WA has remained fairly stable. Volunteering WA has 760 Not-For-Profits as members who rely on the support of volunteers to deliver their services and programs. We act as a bridge between our members and corporate organisations, identifying and scoping different projects and then pairing corporate volunteers and teams with meaningful community projects.
creative and colourful children’s playgrounds. We set everything up from start to finish from the initial project scoping, a safety assessment, full evaluation of what’s needed to complete the project, followed by feedback and evaluations at the end. The benefit for the corporation is reduced staff turnover, higher productivity and much higher job satisfaction. We know this from internal and external evaluations and research. People take pride in their companies when they are involved in their community. Employees feel it is not just about the bottom line, but that their employer also cares and that together they can contribute to making a difference. Last year, Volunteering WA helped 663 employees who
LAST YEAR, VOLUNTEERING WA HELPED 663 EMPLOYEES WHO DONATED 3482 HOURS The bigger team events tend to be outdoors where volunteers help with the makeover of a building, or a conservation or garden project. We’ve had teams go in and clear overgrown areas that have had rubbish dumped in them and turned them into 38 B US I NE S S P U L S E MAY 20 1 7
donated 3482 hours to the community. From the feedback of employees who attended a team day: 80 per cent believed volunteering improved their teamwork and communication skills
78 per cent said that volunteering improved their sense of well-being and happiness, understanding and empathy toward other people 78 per cent agreed that volunteering improved their awareness of wider social issues 79 per cent believed that volunteering improved their pride in their company and job 82 per cent said they are more likely to undertake more volunteering 86 per cent agreed they would recommend volunteering to a friend 77 per cent said that since volunteering they would talk more positively about the company. Skills-based volunteering usually involves an individual or smaller team of volunteers giving their time to a specific skillsbased activity. For example, we recruited a skilled volunteer to help create a website for an Aboriginal art group in the remote North West. Now they can sell their art online and operate as a sustainable business, it is everything to them. Skilled volunteering has the capacity to help the community help themselves and provide long-term benefits. Volunteering WA helped 23 organisations with 832 volunteering hours last year: On a scale of 1-5, 90 per cent of volunteers rated their
experience a 4 or 5. 100 per cent of volunteers chose to volunteer to do something good for the community 100 per cent of volunteers would recommend volunteering to a colleague 100 per cent of volunteers would do a skills-based volunteering project again. There are other benefits as well. When corporate employees go out on these projects they could be working alongside somebody in a completely different department or level to them. This is great for building relationships with work colleagues. It gives them a chance to dip their toe into leadership challenges and we’ve been told organisations like it because it provides an opportunity to monitor how employees respond and behave in a leadership role. Most businesses give two days a year to volunteering. It’s not costly and the benefits are substantial — productivity increases, employee turnover is lower, and the overall result is a happier workforce that displays more pride in their company. I encourage all businesses — large and small — to get in touch and see how they can make a difference to the community.
Tina Williams is Chief Executive Officer of Volunteering WA. Visit our website for more information www. corporatevolunteers.org.au. ¢
BUSINESS NEWS
HJ’S FOUNDER OFFERS WHOPPER INSIGHTS Billionaire Australian Hungry Jack’s Founder and Domino’s Chairman Jack Cowin started out by borrowing money to fund his first KFC store in Perth – don’t miss the chance to dine-in with the fast food burger king
T ROBYN MOLLOY
he key ingredient for a fast food chain to remain successful after five decades is that people still get hungry. Jack Cowin should know, he jumped into the Hungry Jack’s frypan almost 50 years ago and hasn’t looked back, notching 400 stores under his belt along the way. He says people still eat three times a day, they want good tasting food and they want it quickly — so while the world may have changed since he started out, the fast food industry has not.
HOW DO I SPREAD THE RISK BECAUSE BUSINESS, AT THE END OF THE DAY, COMES DOWN TO RISK “We spend a lot on market research trying to find out what people want and what they don’t like. Business changes but when you are talking about what makes the industry I’m involved in work, in many ways it has remained the same over the 47
or 48 years since I started.” Cowin says diversifying your business interests and treating it like a horse race are important. “No one has a crystal ball to predict what the future might bring and it’s like a horse race. If you go to a horse race and you have more than one horse in the race you’ve got a better chance of winning,” he says. “Things go wrong, you’re not always right and if you have more than one entry in a race then that helps so diversification is important ...it’s a balancing act of trying to say how do I spread the risk because business, at the end of the day, comes down to risk. That’s a very important kind or criteria.” With Cowin now reportedly worth more than $1.7 billion, it’s a far cry from the days when he hit up 30 friends for $10,000 each so he could buy his first KFC store in Perth. It was December 1969. The store was on the corner of Canning Highway and North Lake Road in Alfred Cove. Hungry Jack’s was yet to come. It might have been 47 years ago, but he remembers it well. “The reality was I had come from Canada and I was 25 years old. I had a wife, a six-month-old child and this desire to get into my own business but no money
to speak of,” he says. “So I got 30 people to lend me $10,000 each. That was the stake to get started and it was kind of a dramatic moment of if that failed everything would fail. “It was all on the line to win or lose.” The rest, as they say, is history. His retailing, manufacturing and exporting company Competitive Foods Australia Pty Ltd now employs more than 16,000 staff in Australia and New Zealand. His tips for staying in business include understanding that the ups and downs are cyclical and placing a focus on structuring the business to stay in business. “Rule number one of business is stay in business. You have to think of the things that are going to take you out of the game," he says. “Borrowing too much money when you have an inconsistent cash flow can cause you problems .. but it comes down to risk.” Despite being 74, Cowin says he has no plans to retire, saying he’d only last 10 minutes on the beach. Hear more from Cowin including his life’s lessons as part of CCI’s Lighthouse Leadership series lunch on May 18. Visit events. ticketbooth.com.au/events/23098 to book your seat. ¢ MAY 2 017 BUSIN ESS PU L SE 3 9
CCI IR MASTER CLASS Managing Mental Health in the Workplace - from all angles
Mental health issues experienced by employees that are left unaddressed can cause significant disruption in the workplace affecting productivity, turnover and absenteeism – to the cost of $10 billion per year. Not only does poor mental health affect the bottom line of business, but left unaddressed it can expose employers to considerable risks under Occupational Safety and Health, Fair Work and Workers’ Compensation legislation. This comprehensive full-day workshop will be delivered by CCI’s employee relations, safety and workers’ compensation experts and will cover workplace mental health issues and the management of these issues from all angles.
For more information or contact Workplace Consulting: call (08) 9365 7720 or email erconsulting@cciwa.com
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Specific topics include:
WORKSHOP DETAILS
• Common mental health conditions;
Date:
• Identifying and managing psychosocial risk; • Workers’ Compensation legislation and
stress claims; • Recent case law highlighting lessons learnt in
relation to unfair dismissal, discrimination, and general protection claims; • How to have a difficult conversation; • Managing under-performing employees with
suspected or known mental health issues; and • Strategies for managing an employee who has
reported a mental health issue or is returning to work after an absence.
Tuesday, 13 June 2017 Time: 8:30am to 4:30pm Course Fees: CCI Members $880, Non-members: $1,150 (Prices include GST) Venue: CCI Building, 180 Hay Street, East Perth, Western Australia 6004
BOOK LOOK
THE SYSTEM NEEDS FIXING
Closing the gender gap will make workplaces more happy and productive, says best-selling author Catherine Fox
ROBYN MOLLOY
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top fixing women. That’s it. That’s the cry from Catherine Fox on how to make workplaces fairer. As one of Australia’s leading commentators on women and the workforce, the celebrated journalist, author and presenter believes workplace systems in place are biased and need sorting. Her latest book, Stop Fixing Women, released last month, says discrimination in the workplace might still make the headlines, and the statistics speak for themselves. With the pay gap at 17.9 per cent, with only three per cent of top CEO’s female, and women having half the superannuation
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savings of men, she says it’s high time things changed. “The point is this message has been reinforced so strongly to women that many women believe that the barriers they are facing — structural sexism and discrimination — are kind of their own fault, that they’ve made poor individual decisions,” she says. “What I am saying here is ‘no, don’t, we all make mistakes. We’re just human beings but when it comes to discrimination and bias, those are structural issues.” Fox says Stop Fixing Women offers practical tips on how to change the system to be fairer, such as flexible working hours, review of pay gaps, recruitment, promotion and progression methods. “The improvements we are talking about and I talk about in the book would definitely make workplaces more workable for
men. All the studies from around the world show that closing the gender gap and the inequality has benefits for all. It makes workplaces more productive, more efficient, happier and all those markers are very clear in many studies from around the world,” she says. Fox says the book is written for both men and women and dispels the idea that women are behind men because they are not assertive or aggressive enough. “I know it is well-meaning advice, but . . . they are not going to break the boys club down,” she says. “The other point about telling women to be assertive is very much a double-edge sword. “There’s a lot of research showing us that women who behave assertively are often labelled aggressive, and they face penalties.”
HR Link is WA’s best source for significant decisions, developments and news in state and federal Industrial Relations and Human Resources arenas. A digital newsletter delivered weekly, HR Link covers: • Legislative and prospective changes • Fair Work Commission, industrial tribunal and court decisions • Industrial Relations regulations and requirements
Hear more from Catherine Fox at the CCI-Boffins Books Breakfast Club on 12 May at the CCI function centre in East Perth. Stop Fixing Women is published by New South Books, (RRP $29.99) and available through Boffins Books in Perth CBD. ¢
• Human Resource practices • Equal opportunity matters • Practical analysis of HR and IR issues One subscription allows up to 10 people to receive everything. All subscribers get access to the HR Link portal on the CCIWA website.
Subscribe today to get the knowledge and industry insight to help you protect your business from making costly HR mistakes.
To take up this offer email hrlink@cciwa.com or call Paula Connell on (08) 9365 7544.
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Vanguard Press have pooled their resources with Lamb Print to provide an unprecedented service offering. Having invested in state of the art printing technology as part of this integration we are able to provide an enhanced fast efficient service underpinned by traditional values. Our service offering provides a one stop shop incorporating commercial offset, digital, web offset, continuous NCR sets, cut sheets and mailing. For a quote or more information contact Vanguard Press on (08) 9328 1388 or info@vanguardpress.com.au vanguardpress.com.au 42 B US I NE S S P U L S E M AY 20 1 7
ACHIEVEMENTS
WINNERS are GRINNERS CCI congratulates its winning Members on their outstanding achievements
RCT
Jahna Cedar
Innovative Mining Solution of the Year, Prospect Mining Awards
40 Under 40 awards
RCT has won Innovative Mining Solution of the Year with its ControlMaster Independent Guidance solution at the recent Prospect Mining Awards in Sydney. The national awards have been running for more than a decade and are one of the most prestigious mining industry awards in Australia. “We were absolutely thrilled to have received this award,” said RCT’s executive director and CEO Brett White, pictured above with founder and executive chairman, Bob Muirhead. “We truly believe in the solution and its ability to transform the underground mining industry,” he said. “Everything we do at RCT is a collaborative effort — our team’s technical insight is combined with the best minds and hands-on experience in the world, which enables us to produce solutions that we consider to be game-changers for the industry.” RCT’s ControlMaster allows underground vehicles to travel autonomously at greater speeds in narrow and difficult areas without effort, delivering significant gains in production, eliminating machine damage and ensuring KPIs are met. “The system is different to others available on the market today as it can be installed on all makes and models of underground loaders and trucks, making it ideal for sites that operate a mixed fleet,” he said. “The fact that this system won Innovative Mining Solution of the Year just reinforces just how advanced it is,” he added. RCT has more than 40 years in the mining industry. Its state-of-theart technology allows companies to achieve better bottom lines at a time when they are seeking ways to reduce costs. Over the years, RCT has evolved its technology to meet the markets’ needs and will continue to do so going forward. RCT is an innovative smart technology company with the expertise to evolve entire industries. It designs, manufactures and delivers technology and service solutions to support clients around the world.
Jahna Cedar, above, is a Nyiyaparli woman from the Pilbara and a strong Indigenous community leader. From the Gumala Aboriginal Corporation, she is also CCI’s Aboriginal & Torres Strait Islander Award winner and the 2017 First Amongst Equals winner. She won her awards for her work turning around Gumala following a period where the corporation’s income fell 80 per cent. She has also built capacity and independence for Gumala members in the areas of health and wellbeing, employment, housing, education and culture, and has represented her people internationally in advocating for children’s rights and equal access to employment, education and training for women. Cedar was even at the United Nations conference for women’s rights and equality. She says winning the 40 under 40 award was surreal and thrilling. It was also a humbling experience, she said. “I feel so honoured and proud to be able to represent my people, the Gumala community, and Aboriginal Australian women,” she said. “On a personal level, the award was fantastic, but I believe that the deeper message of recognising empowered Aboriginal people is more important. That recognition has had a greater positive impact across the wider Aboriginal community. “Aboriginal issues have always been there, but these days there is more awareness amongst the mainstream. Part of my job is to ensure these issues stay top of mind for the wider Australian community, if we are serious about closing the gap.” She says there is still have lots of work to do. “We need to keep up the positive momentum. We are making solid progress with our strategic plan,” Cedar said. “Looking after our 2000-plus members is still our number one priority, and I am happy to say that we are launching our Education Assistance Program for schoolchildren at the end of March."
If you have a winning story about your business or organisation you’d like to share, email
editor@cciwa.com MAY 2 017 BUSIN ESS PU L SE 4 3
FIVE
GOOD AND BAD BUSINESS RESTRUCTURES
IN 2015, CARMAKERS SOLD 17.47 MILLION CARS, BREAKING THE PREVIOUS RECORD
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Marvel In December 1996, Marvel declared bankruptcy following a huge decline in its comic book business. With no super hero in sight to save them, the company took matters into its own hands. They cut staff and turned their direction to more profitable licensing deals in the toy and film sectors. Films produced by other studios like Spider Man and Hulk were good, but Marvel wasn’t receiving enough profits from them. In the mid-2000s, it raised more than $500million to set up its own studio and began producing its own films. In 2010, Marvel was bought out by Disney for $4.5 billion.
General Motors The iconic American brand was in a free-fall in the late 2000s and hit a low point during the Global Financial Crisis in 2008-09. The company filed for bankruptcy, sacked thousands of workers and was forced to take billions in taxpayer-funded bailouts. In the years after the company rid itself of deadweight divisions like Saturn and Hummer. Within two years, GM was turning a profit again. GM has since played a huge part of the American auto industry revival and in 2015, carmakers sold 17.47 million cars, breaking the previous record of 17.41 million in 2000.
Apple Tech giant Apple is the perfect example of both what to do and what not to do in the face of adversity. After a promising entry into the technology sector in the 80s, it began unravelling in the 90s. Its free-thinking and creative approach to computers started to work against it when consumers started demanding lower cost PCs, and its business suffered. By 1997, the old CEO Steve Jobs came back into the fold and soon Apple restructured and ventured into consumer electronics, creating the iPod. In 2007 Apple released the iPhone. It remains one of the biggest companies in the world.
Firestone Firestone was one of the 20th Century’s biggest tyre manufacturers, but collapsed by the 1980s because its corporate structure couldn’t cope with the new radial tyre technologies. The company demanded loyalty from its staff to its vision and values, but was unable to adapt to the changing market. The company delayed closing its old model tyre factories while investing in the radial tyre. Quality quickly dropped and embarrassing recalls led customers away to Goodyear and foreign tyre makers like Michelin. Firestone was eventually bought out by Bridgestone in 1988.
Polaroid Polaroid prioritised research over all other business practices and paid the price. Founder Edwin Land pioneered instant photography technologies, sparking a culture that prided itself on innovation. Unfortunately, their devotion to research didn’t leak into other business areas like finance and marketing. It lived by the mantra that overcoming technological problems would disrupt markets and result in success. Sales slowed and in the face of digital photography, the company collapsed. Today, Polaroid is finding new success after refocusing its products to pay homage to its original direction.
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UPCOMING TRAINING COURSES Improve your workforce with CCI Workplace Consulting
SAFETY AND HEALTH REPRESENTATIVES TRAINING
MANAGING MENTAL HEALTH IN THE WORKPLACE
Our five-day Safety and Health Representatives training course is designed to provide the knowledge and skills necessary to become an effective Safety and Health Representative (SHR), accredited by the OHS Commission. It will also ensure that participants gain confidence, allowing them to help improve the overall safety performance of their organisation.
Is an employee not acting like themselves? Did you begin performance managing an employee and half way through they informed you they haven’t been doing too well and have depression?
Course Fees: CCI Member: $979.00, Non-Member: $1,278.20 (inc. GST) Upcoming dates: 15-19 May, 12-16 June, 24-28 July 2017 EMPLOYMENT LAW FUNDAMENTALS FOR PAYROLL PROFESSIONALS
This half day course is designed to assist managers, supervisors and HR to effectively manage these common scenarios. The course addresses common mental health conditions, signs and symptoms, identifying and managing psychosocial risk, how to have a difficult conversation and strategies for managing an employee who has reported a mental health issue or is returning to work after an absence. Course Fees: CCI Member: $330.00, Non-Member: $440.00 (inc. GST)
This course has been designed for payroll professionals and focuses on the application of employee entitlements. Payroll professionals provide pivotal support to their organisation through their knowledge of employee entitlements. There have been many changes to these entitlements in recent years and they are becoming increasingly complex. With this in mind, it is important to understand where employee entitlements come from and how to interpret these entitlements to apply them in a practical sense. Designed for anyone who is responsible for payroll function.
Upcoming dates: 26 May, 11 August, 3 November 2017
Course Fees: CCI Member: $544.50, Non-Member: $654.50 (inc. GST)
Upcoming dates: 31 May, 20 July, 19 September 2017
ENTERPRISE AGREEMENTS This practical course explores the current requirements for enterprise bargaining under the Fair Work Act 2009 (Act) and provides a range of techniques and strategies aimed at helping employers effectively manage the process. Course Fees: CCI Member: $544.50, Non-Member: $654.50 (inc. GST)
Upcoming dates: 22 May, 17 July, 4 September 2017
Visit ccilearningsolutions.com for more information or contact Workplace Consulting: call (08) 9365 7500 or email learning@cciwa.com
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