IR August 2016

ISSUE 5 | 2016

YOUR INDUSTRY NEWS PROVIDED BY MGA INDEPENDENT RETAILERS

NATIONAL RETAILER OF THE YEAR AWARDS ISSUE

1800 888 479 • www.mga.asn.au National National SupportSupport Office •Office 1800 •888 479 • www.mga.asn.au

Italy’s No.1 cheese brand now available at

Contents Our Mission

The mission of MGA Independent Retailers is to deliver the best possible industry specific business support services to independent grocery, liquor, hardware and associate store members.

MGA National

Support Office Suite 5, 1 Milton Parade, Malvern, Victoria, 3144 P: 03 9824 4111 • F: 03 9824 4022 admin@mga.asn.au www.mga.asn.au Freecall: 1800 888 479

Retailer Directors Rodney Allen (President) – Victoria Andrew Bray – New South Wales Michael Daly – Victoria Gino Divitini – Western Australia Grant Hinchcliffe – Tasmania Steve Miller – Victoria Chris dos Santos – South Australia Debbie Smith – Queensland

Chief Executive Officer

5 CEO Welcome

Industry News 6

COSBOA Small Business Summit

7 Recognition of an industry champion 9 Romeo’s Supermarket MLC Centre Martin Place Sydney 11 Beware of business scams impersonating the ACCC 12 IGA Retailer of the Year Awards 13 Dr Thomas Haggai’s Hall of Fame – Fred Harrison 14 Metcash Expo 2016 15 Tasmanian Independent Retailers (TIR) Expo and Conference 17 eftpos conference 19 FoodWorks Fortitude Valley Queensland 21 MGAQ meets QLD Minister for Industrial Relations – Hon Grace Grace 21 MGAQ meets QLD Minister for Small Business senior advisory group 21 Keeping your store safe 23 MGA meets Tasmanian Treasurer

Liquor News 25 Understanding the Australian beer market 26 Diversity is the key to successful for bricks and mortor liquor retailing

Jos de Bruin 03 9824 4111 jos.debruin@mga.asn.au

28 MGA

welcomes the Anderson Report – recommending South Australian supermarkets be given the ability to sell packaged liquor

Corporate Partnership & Media Sales

29 Top 10 spirits brands on social media

Steve Sellars 0407 399 240 steve.sellars@mga.asn.au

30 Current Modern Award review

Editorial and Production

28 New chair for NSW Independent Liquor & Gaming Authority Board

Legal and HR 31 Collective bargaining - the benefits of working with others 31 Buying or selling a business 33 Rewarding your manager

production@independentretailer.net.au

35 Name and shame boards

Follow us online:

Training

www.facebook.com/ MGAIndependentRetailers www. twitter.com/MasterGrocers

36 Training snippets

MGA Corporate Partners D

Diamond British American Tobacco Australia

Platinum

Gold

Silver

Bronze

Associate

Warehouse and Brand Partners

tasmanian independent retailers

August 2016 - Edition 5

CEO Report

5

CEO Welcome MGA “makes life easier” for our members The new 2017 financial year is upon us with winter in full swing, a long drawn out election process behind us and a new majority Coalition Government, which was voted in by the smallest of margins, now in place.

At the time of writing the Coalition had won 76 seats + 1 in doubt, Labor 68 seats and there will be 1 Greens, 1 Xenophon party and 3 independents in the House of Representatives. The Senate will, of course, be broadly represented by the Coalition, Labor and the independent cross benchers.

Hopefully all MP’s can work constructively together to help drive much needed strengthening of competition laws coupled with the May small business budget legislation, through the parliament as soon as possible. The public has lost its patience and wants a strong unambiguous government that will lead on strong economic measures to enable Australia to keep its AAA credit rating and continue to be a major economic force in the world.

Congratulations to all MGA members who have completed another financial year and best wishes for the new financial year ahead.

Consumer confidence is vital for businesses to invest and to innovate and for consumers to spend their money and provide for their families. Confidence to invest in business growth will definitely grow now that there is more certainty and the new financial year has commenced.

Whilst the election campaign has been running, MGA has been very busy engaging with members in a myriad of forms, whether it be directly over the phone, via website, e-newsletters, face to face and at meetings.

MGA’s commitment to members for the next financial year is to continue to further lift standards and to find solutions to match member’s needs and to “make life easier” in doing so.

MGA’s online training offer will provide members with a full suite of online compliance training courses, both accredited and non-accredited. MGA will be focussing on providing the highest quality and engaging forms of online training to maximise learning outcomes. All members are encouraged to take a look at MGA’s online training site at www.mgaonline.com.au for Food Safety, Responsible Service of Alcohol and Workplace Health and Safety courses. All proceeds will go to further improving MGA’s members support services.

Members are advised to contact MGA’s Legal and HR team for assistance concerning any staff and workplace related issues.

MGA is experiencing an unusually high rate of calls involving unfair dismissals at present which are onerous and costly to manage. Should members require any assistance at all with the most minor of workplace queries then please don’t hesitate to call MGA on 1800 888 479. This call may save members a lot of trouble, time and worry!

MGA looks forward to meeting with members over the coming months at expos, conferences, state meetings, industry breakfasts, the GALA Ball and so on. Please let us know if there is anything at all we can do to improve our support services to you.

Until next edition – good trading.

Jos de Bruin CEO – MGA Independent Retailers

www.mga.asn.au

6

Industry News

Nick Xenophon

Rod Allen and Grant Hinchcliffe

Kate Carnell

Grant Hinchcliffe, Debbie Smith, Jos de Bruin, Rod Allen, Kate Carnell

COSBOA Small Business Summit Brisbane – 7th & 8th July 2016

Leanne Faulkner, Fair Work Ombudsman – Natalie James and a number of other distinguished guests.

The 2016 annual COSBOA Small Business Summit was held at the Brisbane Hilton on 7th and 8th July.

The COSBOA dinner guest speaker was Kate Carnell, who delivered an informative and insightful address concerning the valuable contribution small businesses make to the Australian economy.

The COSBOA breakfast special guest and speaker as Queensland Minister for Small Business, Leeanne Enoch. Minister Enoch spoke insightfully about Queensland small businesses and her will and drive to help the be the best they can be as they play an important part in the health of the Queensland economy and the communities they trade in.

In the absence of CEO Peter Strong, who is recuperating after a sudden illness, COSBOA Chairman Paul Nielsen officially opened the Summit together with special guest speaker Greg Tonner who is the highly respected CEO of the North Queensland Rugby League Team, the Cowboys.

The theme of the summit was PEOPLE POLICY POWER with the major sponsor being Vodafone. This summit delivered an outstanding 2 days of professional development opportunities for small business owners and their industry associations. There is no other forum for small businesses to have all stakeholders in the one place addressing the needs and aspirations of small business.

Despite the difficult timing of this summit owing to the inconclusive election results the summit was able to once again deliver on an array of quality speakers and guests.

The final COSBOA summit speaker was Senator Nick Xenophon.

Senator Xenophon needed no introduction as he has always been a demonstrable supporter of small business as was evidenced in his passionate address to the audience concerning the immediate need for competition law reforms to allow small businesses to be able to compete on their merit and not on muscle. Senator Xenophon is a strong supporter of the inclusion of the effects test in section 46 of the CCA being legislated upon.

The speakers were outstanding and included speakers such as Greg Tanzer – ASIC, Deputy Chairman of the ACCC – Michael Schaper, Kate Carnell – the Small Business and Family Enterprise Ombudsman, Vodafone, Treasury Department, Google, American Express, small business mental health advocates Nick Arvantis and

COSBOA Chairman Paul Nielsen hailed the COSBOA Summit a success and a wonderful and unique opportunity for small businesses, their organisations, government departments and stakeholders to come together to discuss the myriad of common issues and opportunities.

August 2016 - Edition 5

Industry News

7

Recognition of an industry champion The Council of Small Businesses of Australia (COSBOA) chooses one outstanding person as its Champion each year. It is with great pleasure that we congratulate our CEO, Jos de Bruin as the winner of this coveted award for 2016. I am sure all MGA members, industry colleagues and supporters, numerous politicians, MGA staff and his many friends will join me in congratulating Jos on being deservedly recognised for all the hard work and tireless effort he has expended, resulting in him receiving this award.

Over many years, and particularly recently, Jos has devoted what has been an inexhaustible amount of energy, grit and determination to fight for the rights of small businesses to be given a “fair go.”

He has travelled far and wide, meeting with politicians, industry leaders, business representatives and MGA members to learn, persuade, influence and plead for improvements for small businesses.

In 2015 Jos brought together, in Canberra, the power of 23 industry associations, representing 900,000 businesses, to let politicians know that they were a collective, formidable force – and it worked! His determination resulted in a previously reluctant Government turning around and recognising that small businesses need a revamped Section 46 in competition legislation. He let them know that this is essential if small businesses are to succeed in fighting off the power of their bigger rivals.

It is people like Jos who make things happen and we know he will continue the fight on behalf of small businesses. He can rely on the continued support of all those who have been fortunate enough to be part of his journey and we thank him again for all his arduous and determined work. The fight isn’t over yet but with Jos at the helm MGA members, colleagues and staff can

Kate Carnell with Jos de Bruin

feel assured that there is truly a champion fighting on their behalf.

Rod Allen President MGA

www.mga.asn.au

OVER 500,000 LIGHTS OVER 500,000 LIGHTS BEEN LEDified BEEN LEDified #1 Full service LED specialist in Australia #1 Full service LED specialist in Australia

13LEDS (13 53 37) www.LEDified.com.au 13LEDS (13 53 37) www.LEDified.com.au MGA-May-16.indd 1

18/07/2016 2:59 pm

Industry News

9

Romeo’s Supermarket MLC Centre Martin Place Sydney Magnificent, amazing and terrific are a couple of choice words to describe the 800 square metre, Euro style, Romeo’s IGA supermarket located in the centre of Sydney under the MLC building off Martin Place which opened just before Christmas 2015.

Surrounded by skyscrapers and thousands of offices, this supermarket, staffed by more than 50 staff, provides consumers with a wide choice of beautifully presented fresh foods and groceries. Lunch times are manically busy with office workers visiting the deli for a huge range of healthy and fresh readymade salads, meals and soups.

The bakery provides a huge variety of freshly filled sandwiches, wraps, focaccia and bread rolls along with a range of freshly baked beef, lamb, chicken and quiche pies.

Store manager, Sarah Kenna, who formerly managed Romeo’s St Ives, says that this store is definitely famous for its fresh fresh fresh foods. The fresh produce department is a hallmark of this store and is superbly presented with the freshest fruit and vegies that are in season including; apples, bananas and pears all ready to go. Fresh and colourful vegetables are also displayed in large and prominent bins stacked neatly to resemble a market feel. Fresh meat, chicken and fish is readily available for consumers to take home for dinner. The incredible range of specialty cheeses, dips and fresh snacks, not to mention the Lindt chocolate bar are also an attraction to the many office workers wishing to take home something special.

Customer service is paramount with busy office workers wishing to get in and out of the supermarket quickly. There are 10 self serve checkouts, 5 of which take cash and 6 staffed registers that open on demand.

Planning for an energy efficient store was a priority. LED lighting is strategically placed around the store together with 16 upright freezers and 26 fridges all with easy opening doors, deli cabinets are fully enclosed by light weight glass for ultimate presentation.

The Romeo family, hailing from South Australia, now own 6 stores in Sydney.

Congratulations to the Romeo family for creating a land mark supermarket that provides the ultimate shopping experience.

www.mga.asn.au

10

Industry News

The Retailers Accountants

Experience ebm-papst

For 30 years we have worked closely with owners to build their business and their wealth.

With dozens of retail clients we have insights that...

• Best protect and structure your business • Get optimal tax treatment • Coach you to build your business • Develop smart business plans • Assist with finance applications • Introduce you to the right professionals • Develop industry specific reporting • Benchmark results • Really understand the Key Performance Indicators • Help with business succession planning • Optimise your business disposal

Call Amanda for a free copy of ‘Retail Insights – 5 steps to increasing profitability’ Phone: (03) 9824 5533 www.imaccountants.com.au

August 2016 - Edition 5

Reduce fan energy use by up to 50% and cut maintenance costs – retrofit highly efficient EC fans to your HVAC&R systems. The key to energy efficiency projects is capital return, making the savings exceed the costs as quickly as possible. ebm-papst are Australia’s leaders in high efficiency EC fans for quieter operation, lower energy bills and almost zero maintenance. www.ECupgrades.com.au

Industry News

11

Beware of business scams impersonating the ACCC Members should be on the lookout for bogus emails claiming to be from the ACCC. The ACCC is warning businesses to watch out for scam emails that claim to be from the ACCC but in fact contain links that can infect your computer with malware.

Recently, several businesses have reported receiving bogus requests from scammers claiming to be the ACCC. The emails asks businesses to respond to a complaint that has been made about them, or seek payment for an infringement notice for breach of copyright.

• •

Legitimate emails from government agencies will always have an email address that ends in .gov.au.

If you are uncertain about the legitimacy of an email you can call the ACCC’s Scamwatch call centre on 1300 795 995.

•

If you do receive an email of this kind there are a few things you can do to protect yourself: • Do not click on any suspicious links in emails and check the sender’s address very carefully. If you think it is a scam, delete the email

•

Ensure your business has up-to-date virus protection and firewall software installed Regularly back-up your computer’s data on a separate hard drive. If your computer is infected by malware or ransomware you can restore the factory settings and easily re-install all of your software and data Do not respond to contact details provided in unsolicited emails. Independently verify contact details from the phone book or search online for official details Keep your staff informed about security threats and provide them guidance on how to deal with scam emails

For more information go to the ACCC’s Scamwatch website https://www.scamwatch.gov.au/.

www.mga.asn.au

12

Industry News

IGA Retailer of the Year Awards – 18th July 2016 Held at Jupiter’s Casino Ballroom on the Gold Coast in Queensland and hosted by Lisa Wilkinson and Peter Fitzsimmons, IGA’s night of nights. The National IGA Retailer “Awards of Excellence” was one of celebration and jubilation recognising retailers from around Australia who have presented consumers with an exceptional shopping experience.

The spectacular opening featured flag bearers and their families representing each state and the marvellous Australian Girls Choir who sang the national anthem.

Focussing on excellent retailing standards, optimum customer service, exciting store ambience, inspirational retail innovation and tireless community involvement, these are awards are held in the highest esteem by all retailers and have become truly aspirational.

For the first time in the history of this event, and owing to the incredibly high retailing standards and inspirational instore innovation that nominees presented in their stores, 2 stores could not be separated for the final IGA National Retailer Store of the Year Award.

The outstanding winners were Taylor Road IGA, owned by James and Rita Kelly and located in Nedlands, Western Australia and repeating their exceptional performance in winning this award in 2015 was Foodland IGA Frewville in South Australia, owned by Spero and Nick Chapley and the Commercial Retail Group. To win this award twice for the same store is also an historical occurrence.

Congratulations to all nominees and winners of National Department of the Year Awards and a special congratulations to the overall two National Retailer of the Year Award recipients.

NATIONAL IGA RETAILERS OF THE YEAR

• Western Australia – Taylor Road IGA – James and Rita Kelly • South Australia – Frewville Foodland IGA – Spero and Nick Chapley Commercial Retail Group

NATIONAL IGA CHANNEL STORE OF THE YEAR AWARDS

Congratulations to the winners of the IGA Channel Retailer of the Year Awards.

• Channel 3 – IGA Xpress – Tasmania – Arthur Street Grocer – Nick, Marco and Niktar Nikitaris • Channel 2 – IGA – Western Australia – Taylor Road IGA – James and Rita Kelly • Channel 3 – SUPA IGA / Foodland – South Australia – Spero and Nick Chapley Commercial Retail Group

NATIONAL IGA DEPARTMENT AWARDS

Delicatessen • Channel 2 – IGA Market Place Wises Road Maroochydore – Brad Hopper QLD • Channel 1 – Frewville Foodland – Nick and Spero Chapley Commercial Retail Group SA Meat • Channel 2 – IGA Riverton Fresh – Robert Halvorsen WA • Channel 1 – Supa IGA Atherton – Michael Shakes QLD Bakery • Channel 2 – Ritchies IGA Mt Eliza – Fred Harrison VIC • Channel 1 – Frewville Foodland – Nick and Spero Chapley Commercial Retail Group SA Fresh Produce • Channel 2 – Taylor Road IGA – James and Rita Kelly WA • Channel 1 – Frewville Foodland – Nick and Spero Chapley Commercial Retail Group SA

Choir on stage

Grocery and General Merchandise • Channel 2 – Ritchies IGA Mt Eliza – Fred Harrison VIC • Channel 1 – Supa IGA Summer Centre – Ian and Rochelle Ashcroft NSW Dairy and Freezer • Channel 2 – IGA Beerwah – Grant Prince QLD

Flag bearers on stage

August 2016 - Edition 5

MC’s Peter Fitzsimmons & Lisa Wilkinson

• Channel 1 – Supa IGA Bli Bli – Roz and Michael White QLD

Industry News

13

Dr Thomas Haggai’s Hall of Fame – FRED HARRISON Each year the National Retailer of the Year Awards evening takes the opportunity to induct a new member into the Dr Thomas Haggai Hall of Fame.

James Kelly

James and Rita Kelly

This year the this prestigious and coveted award was presented to Ritchies IGA CEO Fred Harrison. Fred, who has been the revered CEO of the Ritchies IGA Group, has grown the Ritchies network of stores from 6 in 1980 to over 80 stores in 2016.

Fred is widely known to take on far more than most CEOs in the industry and does this with aplomb. Always affable, always able to give time to people and with the support of his wife and best friend Denise and sons, Ryan, Wayne and Taylor, Fred has become one of our industry’s most recognisable figure heads.

Spero and Nick Chapley with family

Nick and Spero Chapley on stage

This prestigious award is bestowed upon IGA retailers and their families for outstanding leadership and service to the independent supermarket industry in their respective states and in Australia for a long and consistent period of time. This award is presented to retailers who are highly respected and considered to be the heart and soul of their communities in which their stores trade.

Steve Longmore and Niktar Nikitaris

Fred has boundless energy for the Ritchies business but also cares very much for the wellbeing and prosperity of all independent supermarket and liquor store operators no matter how big or small. This is evidenced as Fred tirelessly spends time and effort on National and State Retail Boards, sub committees and industry committees.

Judging from the vigorous applause in the room from a very enthusiastic audience this was most definitely a very popular and well deserved recognition award for Fred and his supportive family.

Nick and Spero Chapley

Brad Tilbury and James Kelly

Service Department of the Year • Wonthella IGA – John Rigter WA

Fred receiving the award

Fred on stage

Fred, Denise and Taylor Harrison: Ryan and Wayne Harrison absent

Fred on stage

Retail Transformation and Innovation Award • IGA Thornlands – Tyrone and Leanne Jones QLD Community Award • Ashcroft Group – Supa IGA Orange – Ian and Rochelle Ashcroft NSW Team member / Rising star • Paul Scott – Cornetts IGA Cooktown QLD

www.mga.asn.au

14

CEO Report

Metcash Expo 2016 The Metcash Expo was held at the Gold Coast Convention Exhibition Centre in Queensland from Sunday 17th to Tuesday 19th July. Hundreds of suppliers of grocery and fresh products, technology solutions, equipment and support services were present to speak with many hundreds of independent supermarket operators that came from around Australia The theme of the Expo was the “Best Store in Town�. Exhibitors promoted and displayed many business opportunities and solutions to retailers to enable them to significantly improve their grocery and fresh offer, to grow and maintain trust and loyalty with customers. Having a point of difference to

August 2016 - Edition 5

the 2 big chain stores, as well as, discounter ALDI was a focus.

The fact that the greatest point of difference is the direct and personal relationships retailers have with their customers and communities is the by far the biggest strength that must be capitalised upon. Independent owners and operators need to win their customers over every day by providing superior customer service in a comfortable and convenient modern supermarket.

The Expo was an outstanding event for retailers to discuss these opportunities with suppliers and explore the possibilities for their stores.

MGA was certainly busy meeting with various members from around Australia to discuss their Legal and HR needs, as well as, to discuss online training opportunities.

As always it was a very busy 3 days with retailers attending the Expo, liaising with suppliers, engaging in forums, attending breakfast events and the Retailer of the Year Awards night, networking with fellow retailers and industry stakeholders and then trying to get some rest along the way.

Congratulations to the hard working organisers for putting on such a world class event.

Industry News

15

Tasmanian Independent Retailers (TIR) Expo and Conference Theme – Connect Collaborate Innovate On the 23rd and 24th of June, MGA attended the TIR annual Expo, Retailer of the Year Awards evening and conference in Hobart.

Retailers from around Tasmania gathered at the Wrest Pont Casino complex to attend the TIR Expo with national and state suppliers of grocery, chilled and frozen products, fresh produce, service providers and supermarket equipment providers.

Retailers were again treated to many new and innovative ideas, terrific supplier trade incentives and of course the opportunity to network and share ideas.

The Retailer of the Year Awards were held at the prestigious Hotel Grand Chancellor at which 400 industry participants attended.

Clearly Tasmanian independent supermarket retail standards continue to rise rapidly in Tasmania, as each year, the job for the judges to determine the winners from so many nominations has become increasingly difficult.

TIR Retailer of the Year Awards winners are as follows: • Supa IGA Retailer of the Year St Helens – congratulations Cassie and Kemuel Wood • IGA Retailer of the Year Norwood – congratulations Mark & Leanne Colson • IGA Xpress of the Year Hill Street Grocer – Arthur Street Hobart – congratulations Nick and Marco Nikitaras • Sam Richardson Perpetual Award IGA Xpress Latrobe – congratulations Brenda and Stuart Ritchie

David Grey-Smith and Nikola Prestia

Aaron Vince with Maxine and Michael Duke

Adrian Trantino

Mark Batenic with Mark Colson

Congratulations to all other department award winners who include; Supa IGA Prospect, IGA Everyday Blackmans Bay (Hill St Grocer) and Hilly’s IGA St Helens.

TIR CEO Grant Hinchcliffe continued on with the traditional industry breakfast function the morning after the awards night at which the final TIR end of year trading and business results were announced.

Tasmanian independent retailers continue to impress with strong sales growth largely owing to the investment many retailers are making into refurbishing their stores and improving their retail offer to consumers.

Shane Adams at right

Members of the Tasmanian and Federal Parliament attended this event to hear of the some of the issues Tasmanian retailers face on a day to day basis.

Congratulations to the TIR management team for conducting another well run TIR Expo and Conference.

Jane Willcock with Chester Willcock

Aaron Johnson

www.mga.asn.au

16

Industry News

Get Getsome somedough dough with withyour yourbread. bread. && Press Press every everyday dayin-store in-store to toget getcash cashout outand and avoid avoidATM ATMfees. fees.

CHQ CHQ

August 2016 - Edition 5

SAV SAV

Industry News

17

eftpos conference eftpos, a corporate partner of MGA recently held a 2-day conference at the Sofitel Hotel in Melbourne and Steve Sellars attended on behalf of MGA. The conference was opened by Bruce Mansfield, Managing Director at eftpos and he firstly explained the mission statement and values framework in which eftpos work, which includes: • Value to members • Value to eftpos • Value to Consumers and merchants • Ease of implementation • Security • Market opportunities and the ability to leverage As the industry rapidly moves to digital payment, eftpos believes these values will see them well placed to support their customers, be innovative and relevant in a rapidly changing technology time in a future that will continue to get faster and faster. eftpos contactless is ready to be rolled out with over 600,000 terminals already updated for their acceptance.

Through a partnership with Bell ID the eftpos contactless mobile payments are the first scheme with the additional security of tokens which give mobile payments a further level of security. eftpos cards already have the lowest level of fraudulent transactions and offer customers a safe environment to pay electronically.

• • • •

Security – eftpos has the lowest fraud rates Real Time Transactions Tap and Pay Less ATM fees

Remember to encourage your staff to ask whether you would like to select chq or sav and encourage cash out transactions to reduce your running costs and increase your profit.

The second key note speaker was Brett King. Brett King is an Amazon best-selling author, a well-known industry commentator, a speaker, the host of the BREAKING BANK$ radio show on Voice America (an internet talk-radio network with over nine million monthly listeners), and the founder of the revolutionary mobile-based banking service Moven.

King was voted as American Banker’s Innovator of the Year in 2012, and was nominated by Bank Innovation as one of the Top 10 “coolest brands in banking.” He spoke about the trends and changes that we will see with payments and the future will see 60-70% of commerce transacted by mobile phones.

The evening dinner was held at Luminare in South Melbourne hosted by the very funny Tom Gleeson and the entertainment was Guy Sebastian.

The first of two excellent key note speakers was Anders S’o’rmanNilsson, a ‘futurist’ speaking about change. One thing he noted was “change doesn’t worry whether you like change or not – it is going to happen regardless.”

The challenge for businesses is how do they win the ‘digital’ minds and the ‘analogue’ hearts of their customers. Mobile payments, apps and digital wallets will be the payment schemes of the future and he believes eftpos and their values will see them well placed for the future in a very competitive market.

David Orme, from Bell ID, spoke about their partnership with eftpos and the security system – ‘tokenisation’ which supports eftpos, it will be invisible to consumers and merchants but the consumers will have the knowledge of their transactions being secured by this added level of security, which in simple terms converts the numbers on your card to a token ID and therefore your number is not secured anywhere, the number of the token is different and cannot be traced to your card.

As more and more payments move to Apple Pay, Samsung Pay, apps and electronic wallets, etc. this partnership will ensure eftpos transactions are secure.

As well as the security eftpos has the following benefits: • Cash Out with PIN security (in many cases a payment to you rather than cost of credit transactions)

Following on from our very successful business breakfasts, this year we are adding a Retailer Forum to the agenda.

Date: Tuesday 13th September Time: 10.00am – 4.30pm Business breakfast: 7.00am – 9.30am Location: Leonda on the Yarra, 2 Wallen Road, Hawthorn, VIC 3122 For more information please go to www.mga.asn.au/mga-businessbreakfast-and-retailer-forum

www.mga.asn.au

18

Industry News

August 2016 - Edition 5

Industry News

19

FoodWorks Fortitude Valley Queensland Joe and Catherine Eid have developed a unique and dynamic FoodWorks supermarket offer in a very busy railway station hub in Fortitude Valley in Brisbane. Taking over the store from long serving retailer Angelo Carlotto in October 2012, the store has further increased sales every year.

The store was fully refurbished which “opened up the store. Large counters were removed to allow key departments such as deli, bakery and fresh food departments to be seen from outside the store. Sales have increased by 40% since the changes were made.

Fresh foods and excellent customer service are a focus, as most customers are either in transit to and from work or, are purchasing their prepared lunch or dinner needs. The Eid’s had to adapt the business very quickly in order to appeal and always be relevant to their ever changing customer base. Customers are constantly being researched to ascertain their needs and as a consequence the range of fresh and grocery items has increased markedly resulting in strong sales growth. This is particularly important when 65% of Joe’s customers are commuters and 35% are local. More than 50% of grocery customers are workplaces and office workers.

Representing 22% of the store sales, the “grab and go” market is significant, with the busiest trading times being early morning, lunchtimes and afternoons. Highly trained deli staff innovate, develop, prepare and serve salads, fruit salads, soups, hot and cold meals, baked items, sandwiches, wraps and a variety of fresh fruit snack packs that are ready to go every day! The deli has a 3 metre hot box, and 7 metres of fresh “ready to go” food items.

Strict food safety standards are a hallmark in the store with all food items produced instore, being of the highest quality and presentation.

The store trades 7 days per week and employs more than 30 staff.

Having a focus on fresh food is labour intensive, so highly trained staff to deliver excellent customer service are essential in running a business such as this.

The store boasts 4 grocery aisles, 5 metres of fresh meat cabinets, 10 metres of fresh produce and 10 metres of dairy fridges. There are 17 doors of upright freezers, one with ice.

Owing to the high customer traffic and impulse sales being high, there is more than 6 metres of open fridges for “grab and go” soft drinks, juices and milks products.

The entrance to the store has a large LED screen adverting instore specials and new freshly made products to attract passers-by into the store.

Congratulations to Joe and Catherine Eid and their staff for continually offering their customers an exceptional shopping experience!

www.mga.asn.au

20

Industry News

August 2016 - Edition 5

Industry News

21

MGAQ meets QLD Minister for Industrial Relations – Hon Grace Grace

Keeping your store safe

On the 6th June 2016, members of the MGAQ committee; Roz White (IGA Sunshine Coast), Wayne Mason (FoodWorks), Peter Piccone (IGA Cairns) and Jos de Bruin (MGA) met with Hon Grace Grace, to raise and discuss the opportunity for Queensland privately owned businesses, a family enterprise and independently owned supermarkets to grow their businesses – lifting productivity and creating employment.

MGA is aware of the alarming increase in the number of violent “break-ins” into supermarkets and liquor stores in recent months.

MGA is working with the police in the fight against aggravated burglaries in retail shops. These violent and drug related crimes are being committed in retail shopping strips and against stand-alone stores and thieves are particularly targeting stores selling cigarettes and liquor. Thieves often band together in groups to attack vulnerable, large and small retailers and although many crimes are committed after the store closure they also often enter stores during the day. This, of course, means staff are vulnerable and staff should be trained to deal with dangerous situations.

Discussions were particularly focussed on the fitness for purpose of some parts of the Allowable Trading Hours Act given the retail landscape has changed so much in recent years and how MGA members could seek more flexibility to address staff needs at certain busy times of the day. Minister Grace was very engaging, understood the issues and suggestions we raised and has committed to assisting in every she can. MGAQ will advise QLD members of any outcomes as they arise.

Jos de Bruin, Roz White, Hon Grace Grace, Wayne Mason, Peter Piccone

MGAQ meets QLD Minister for Small Business senior advisory group - Hon Leanne Enoch On the 6th June MGAQ Committee members; Roz White (IGA Sunshine Coast), Wayne Mason (FoodWorks), Peter Piccone (IGA Cairns) and Jos de Bruin (MGA) met with Minister for Small Business Leeanne Enoch’s Senior Small Business Advisor and also the Director for Small Business Queensland to follow up on a number of topics as discussed at a previous meeting.

These topics included; 1. A request for MGA’s members to be represented by

a MGAQ member on the Minister’s Queensland Small Business Advisory Committee, 2. Queensland planning and zoning matters, particularly Bundaberg, Townsville, Toowoomba and Mackay and 3.

Packaged liquor for supermarkets.

More information will follow as the Minister’s department responds to the MGAQ committee’s matters that were raised.

The police are well aware of criminals in organised groups that plan their attacks on stores and cause great loss and significant damage and unfortunately the situation is worsening. The theft of cigarettes is increasing and the criminals know that they can make informal sales at a lower price. It is likely that the theft of cigarettes and liquor will continue to increase unless retailers are more pro-active.

The police recommend firstly, reinforcement of access points, secondly strengthen surveillance, such as having back up cameras and thirdly, where possible, conceal or remove targets. Criminals find it very easy to get to cigarettes that are locked away in cupboards, so removing them to a highly secured area is safer.

MGA is continuing to address security issues on behalf of our members and will work with authorities to drive solutions which will help members to deal with this important costly issue.

www.mga.asn.au

22

Industry News

2 months free access fees for MGA members.

A Ready Business needs to be able to respond anywhere and anytime, while saving on its mobile costs.

Vodafone has partnered with MGA Independent Retailers to offer members 2 months free access fees on selected Red Business plans; including generous data, infinite standard national talk & TXT plus much more, all for use in Australia. That’s a huge saving of up to $260.

Become a Vodafone Ready Business today.

Call 1300 111 111 to take advantage of this offer.

Vodafone Power to you Excludes Red Business Grow and SIM Only plans. Max 4 connections. Offer ends 31.07.16.

The nitty gritty: Personal use only for customers with an ABN/ACN. Offer only available to members of eligible associations as advertised relating to this offer (‘Eligible Customers’). Eligible Customers must sign-up (excludes upgrades and rate plan change) to a Vodafone $60 or above Red Business 24 month plan or Vodafone $80 or above Qantas Business Red 24 month plan via calling 1300 111 111 and quoting this offer. Excludes Red Business Grow and SIM Only plans. Free access fees available for first 2 months only and forfeited if you cancel. Discount available for a max 4 connections and applied as an account credit. From months 1-2, min monthly spend is any applicable handset repayments. From month 3 onward, min monthly spend is $60, $70, $80, $100, $130 (for the $60, $70, $80, $100, $130 plans respectively) plus applicable handset repayments.

Early exit fee = month 3 onward min monthly spend x months remaining on contract. Not for commercial or resale purposes. Offer not transferable or redeemable for cash. Subject to change. Not available in conjunction August 2016 - Edition 5 with any other offer.

V05114 06.16

Industry News

23

MGA meets Tasmanian Treasurer – 22nd June 2016 MGA CEO Jos de Bruin together with TIR CEO Grant Hinchcliffe and a number of other industry representatives met with the Treasurer of Tasmania, Hon Peter Gutwein to discuss a serious upcoming issue regarding the sale of tobacco products in Tasmania.

The current Tasmanian Government is proposing to lift the minimum age to purchase tobacco from 18 to 21 (and maybe 25). MGA and other industry organisations and businesses are of the view that this is a very bad policy idea, that is generally bad for Tasmania and will have the potential to disrupt retailers and put them at risk of their compliance obligations.

Hon Peter Gutwein

Discussions ensued with industry associations suggesting to leave the current minimum 18 years of age legislation as it is and allow the retail sector to become more involved in educating the public of the health disbenefits associated with smoking. It was also suggested that retailers should be able to sell products that assist tobacco smokers to quit by being able to supply aids such as patches, gum and e-vapourisers.

Data security is serious business. From archiving financial records to sharing potentially game-changing innovations to contacts across the world, it is understandable why some business owners could be hesitant to move their work processes into the virtual frontier.

to you. Protecting your data can be stressful, but through Dropbox you can keep your data safe – giving you the confidence to stay connected and competitive in the fast-changing world of small.

Cloud storage leader Dropbox have raised the bar on data security. Dropbox for Business allows you to securely sync and store an unlimited amount of business data. And have greater control as you can decide which files can be accessed by who.

Vodafone Australia is passionate about helping small businesses embrace technology and work smarter. That’s why they’ve selected a range of apps to purchase that remove the hassle of admin and enable businesses to become more agile, better connected to their employees and better engaged with their customers.

Dropbox works through layers of process designed to secure your data, even when on the move. And though an optional feature, you can add an extra layer of security by having a security code texted

To find out how you can get up to $10 a month off Access fees on selected Business Red 24 month plans, plus a 2 month free Dropbox for Business trial visit vfau.co/MGA www.mga.asn.au

24

Industry News - Liquor

Mountain Goat started out as Dave’s weekend homebrew project in a suburban Melbourne backyard when a postcard turned up from his mate Cam who was backpacking overseas.

Cam had just discovered good beer in Vancouver and decided Melbourne needed good beer too. This was back in 1997.

So Cam and Dave had a great idea but no money to build a brewery. They were knocked back from every bank they approached but

Drink Responsibly.

August 2016 - Edition 5

luckily, with a little help from friends and family, they prevailed and Mountain Goat was soon tapped at a few local pubs.

Today, almost 19 years later, Mountain Goat is now found nationally and the brewery and bar still operates in the back streets of Richmond, with a lineup of old favourites on tap and constantly changing limited releases and barrel aged beers.

From Steam Ale, one of Australia’s first organic beers, to the refreshing Summer Ale and Pale Ale, through to the complex malt characters in Hightail Ale and Fancy Pants, there is a Mountain Goat beer for everyone.

To place an order for Mountain Goat please contact your Asahi Premium Beverages representative or call our customer service team on 1800 090 378.

goatbeer.com.au

Industry News - Liquor

25

Liquor News Understanding the Australian beer market The key to successful retailing is the ability of retailers to understand the market that they trade in. The largest segment within most retail packaged liquor outlets in both volume and dollar value is the beer category.

The beer manufacturing industry has undergone a shake-up over the past five years. Per capita beer consumption has declined sharply as drinkers have given up traditional brands, such as Victoria Bitter, in favour of premium and craft beers and other beverages like cider and wine. An ongoing shift in consumer preferences from quantity to quality has affected the industry and its product range. As beer drinkers purchase more premium, craft and internationally branded beers, the increase in per-unit prices has offset the decline in consumption.

Robust demand for craft beer has resulted in the number of craft breweries increasing over the past decade, to an expected 250 in 2015-16. At the other end of the market, Australia’s two largest brewers, Lion and Carlton & United Breweries (CUB),

account for over 80% of industry revenue.

Both of these companies are controlled by foreign interests and have been engaged in fierce price competition as they compete for market share. This competition has constrained growth in industry revenue and profitability. Industry revenue is expected to increase at a compound annual rate of 0.2% over the five years through 2015-16, to $4.3 billion.

Revenue is anticipated to drop by 1.1% over 2015-16 due to a continued drop in beer consumption. Industry revenue is expected to fall over the next five years as consumers continue to drink less alcohol. Furthermore, strong liquor retailing competition between the two supermarket chains, Coles and Woolworths, will put downward pressure on prices. The Australian beer market will become more fragmented, as drinkers continue to opt for quality over quantity.

Intense competition between the two major brewers is expected to hamper profitability.

Traditional brands are forecast to continue losing market share to premium beers. Sales of craft beer are expected to flourish, but the segment is likely to consolidate as the

two big brewers make acquisitions and small brewers exit the industry. Industry revenue is expected to decrease at an annualised 0.7% over the five years through 2020-21, to total $4.1 billion.

The liquor retailing industry is the most important distribution channel for beer manufacturers, and accounts for the majority of beer sold at the consumer level in Australia. Major supermarket chains have increasingly stocked their own private label beer over the past five years, constraining demand growth for traditional beer manufacturers’ products. Demand from liquor retailing is expected to grow over 2015-16, due to higher consumer interest in premium products.

IGA Liquor to be rebranded as Cellarbrations in Western Australia As a result of the IGA Liquor brand being removed from the Western Australian market, all 24 IGA Liquor stores will be rebannered as Cellarbrations.

A spokesperson for Australian Liquor Marketers (ALM) confirmed

the move, saying it will help to strengthen Independent Brands Australia’s presence in WA. IBA is the second largest retail group in Australia, with over 2500 members operating under the Cellarbrations, The Bottle-O, IGA Liquor and Duncan’s retail banners.

“From our perspective in terms of the brand exiting that market it is purely as a result of the strength of that brand and we're actually converting those IGA Liquor

stores to Cellarbrations. From our view it is strengthening the Cellarbrations brand and growing our offer in that market. So while the brand itself won't exist, we will still have the footprint from an IBA perspective.

When asked if the move would have any repercussions to existing Cellarbrations stores, the spokesperson said: “Not at this stage. I think one of the reasons why we have chosen this route is because of the minimal impact it will have on the existing footprint, so we don't envisage there being clashes at this point.”

www.mga.asn.au

26

Industry News - Liquor

Shane and Ryan Barrington

Diversity is the key to successful for bricks and mortor liquor retailing After fifteen years of successful liquor retailing, brothers Ryan and Shane Barrington have identified the importance of embracing modern technology and using it to promote and drive sales through their bricks and mortar retail outlets.

Ryan, you and your brother Shane have been involved in liquor retailing for 15 years now, tell us about how you became involved in the liquor industry.

I started my first liquor store business in the eastern suburb of Mooroolbark. It started as a joke between my uncle and father when they saw a shop for lease. They said we should open a liquor store so that we can get our scotch cheaper (Sri Lankan’s drink a lot of scotch, but are also tight... always wanting the best product at the cheapest price). Little did we know back then about the margins in spirits!

This was in 2001, and I had just finished high school and knew I wanted to run my own business, I managed to convince them to lease the shop and allow me to manage it. My younger brother Shane joined me when he turned 18, and partnering together we have owned and operated 8 liquor stores.

I didn’t really pick being in liquor retailing, it picked me. I just wanted to open my own business and this was the first opportunity I had so I took it.

August 2016 - Edition 5

We then diversified into take away food, creating our own brand ‘Wot A Kebab’, and currently operate 8 ‘Wot A Kebab’ outlets around the south east suburbs of Melbourne. Our latest venture is an online liquor delivery business called ‘Tipple’.

Over the past 5 - 10 years what major changes, if any, have you seen in the liquor industry and what impact, good or bad, have these changes had?

One of the major changes I have noticed is the changed drinking culture in Australia. This has come about through better education on the harm that can be caused to the drinker and the community from excessive drinking and the stronger drink driving laws.

It is a fact that consumers are now drinking less, however I have found they are willing to spend more to drink better and are more willing if presented with the right offers to try different beverages.

The negative impact has been a drop in volume sales, as consumers have been buying less. The positive impact is higher margins, as customers are up trading to boutique beers, premium spirits and quality table wines.

Do you have a business plan and how important is it to your business?

Yes, we have a business plan and would not be able to operate successfully without one. It is a plan that is always evolving,

Industry News - Liquor

27

Cellarbrations at Windsor

Ryan and Shanes’ liquor delivery scooter

especially with the way technology is constantly advancing, you need to be up to date and constantly reviewing, testing and measuring everything in your business. Otherwise your model will become outdated very quickly.

How important is it to be with a strong banner group and what role should the banner group play in your business?

I think it’s very important. There are a lot of benefits you receive from the banner group, which would be hard and extremely time consuming to achieve on your own. Being in a banner group allows you to focus on driving sales through the store whilst the banner group to an extent focuses on driving the marketing of your business.

However I do strongly believe you still need to develop your own market niche and maintain some independence of your store.

How do you see the independent sector evolving over the next 5 - 10 years?

Firstly, I think independent retailers need to form more alliances with suppliers, join forces with other retailers and find more ways to maximise their benefits when negotiating with suppliers.

Secondly, the internet is playing a big part in changing the industry and the way we do business, therefore retailers need to embrace the technology and use it to their advantage.

Cellarbrations at Windsor

Do you believe deregulation of the liquor industry in Victoria has been a positive one?

Plain and simply NO! What is your view of online sales and how important do you think it is to have an online presence?

The mobile phone is now the remote control of your life.

Everything is done on your phone or on the internet, It’s the way the market is moving. I recognised the shift in consumer behaviour first hand through our kebab shop business, noticing that with every new store we opened, more and more of our customers were ordering online. With our last store, 70% of all sales were coming from online purchases, and those customers didn’t even know where our store was.

After recognising the demand for online liquor purchases, we developed our own online platform app Tipple.

The Tipple phone app is a virtual bottle shop, which allows the user to have their liquor purchase delivered to their door in less than 60 minutes. By strategically locating our stores we can offer our customers over 1000 liquor products across 120 inner Melbourne suburbs.

We believe the combination of both bricks and mortar and an online presence will see our business grow into the future.

www.mga.asn.au

28

Industry News - Liquor

MGA welcomes the Anderson Report recommending South Australian supermarkets be given the ability to sell packaged liquor The review of the South Australian Liquor Licensing ACT 1997 commissioned by the SA Government and prepared by the Hon T R Anderson QC has recommended South Australian supermarkets be given the ability to sell liquor.

Although yet to be adopted by the government, MGA see this as positive first step towards South Australian supermarkets being able to sell packaged liquor.

IGA Melton

Key recommendations made by the Anderson Report are; 1. The removal of the ‘needs test’ when applying for a new license and replacing it with a ‘Community Impact and Public Interest Test’, the matters the Anderson report feel are relevant to the CIPIT can be viewed in the full report 9.7.2 page 172.

The Anderson report when recommending the removal of the ‘needs test’ referred to the 2003 draft report of the National Competition Review, where the review panel found that the ‘needs test’ was a serious restriction of competition because; a. “it excludes some entrants from the market entirely” b. “the cost imposed on impending entrants by the restrictions are by no means negligible and may be particularly onerous for small business” c. “it tends to limit the overall number of liquor businesses" 2. Amending section 37(2) of the act

requiring that liquor has to be ‘physically separate’ from the premises, to read “provided the licensed premises are separated by some form of permanent and physical substantial barrier, licensed premises can co-exist with the supermarket operation under the main roof of a supermarket premises”.

3. A separate point of sale or check-out, operated by an adult with a Responsible Service of Alcohol training and strictly supervised and managed at all times.

This is a big step forward for independent supermarkets. MGA will continue to work with other likeminded organisations to achieve the best possible outcome for members.

Should you require clarification on any part of the report please contact Jos de Bruin directly on 0418 312 723 or jos.debruin@ mga.asn.au. The full report can be viewed on Review of the South Australian Liquor Licensing Act 1997.

New chair for NSW Independent Liquor & Gaming Authority Board Philip Crawford has been appointed the new Chair of the Independent Liquor and Gaming Authority Board.

Deputy Premier and Minister for Justice and Police Troy Grant said Mr Crawford possesses the skills and experience to carry out the role of ILGA Chair.

“The ILGA Board is responsible for making independent decisions on high-risk licence applications for nightclubs, bottle shops and gaming machines and also about complaints against licensed venues and the casino,” Mr Grant said.

“People appointed to the ILGA Board must be of the highest integrity and promote fair, transparent and efficient decisionmaking and Mr Crawford fits that bill.”

August 2016 - Edition 5

First admitted as a solicitor in 1978, Mr Crawford went on to build a legal career at law firm Henry Davis York, becoming partner in 1984 and Chairman of Partners in 2010.

He is also a board director for two not-for-profit organisations – child protection advocacy group Bravehearts and the Thomas Kelly Youth Foundation, which encourages behavioural change in young people in order to create a responsible drinking culture and safe and healthy communities.

Mr Crawford has commenced his threeyear tenure and is supported on the ILGA board by Deputy Chair David Armati and four other new members who have been appointed since March:

• Craig Sahlin, a former NSW Government senior executive Philip Crawford with extensive experience in regulatory reform, policy development and implementation • Stephen Parbery, Chairman of PPB Advisory and a registered liquidator who has acted on a number of matters for the Commonwealth • Nicky McWilliam, a lawyer and director of a dispute resolution firm that has been engaged in workplace, commercial and corrections matters • Murray Smith, a restructuring and insolvency specialist who provides financial advice to company boards and a member of the Institute of Chartered Accountants.

Industry News - Liquor

29

Around the World Top 10 spirits brands on social media A key driver behind the marketing strategies of brands both fledgling and established, social media is no longer just a choice addition; it’s an absolute necessity in building brand loyalty.

1. Jägermeister

F acebook fans: 4.3m; Twitter followers: 73.1k; Instagram followers: 147k

2. Jack Daniel’s

F acebook fans: 5.5m; Twitter followers: 166k; Instagram followers: 151k

These figures are based on research conducted by The Spirits Business in May 2016.

3. Bacardi Facebook fans: 8.2m; Twitter followers: 96.9k; Instagram followers: 48.2k

In a digital world of Twitter tastings, Facebook fan groups, and clickable Instagram hashtags, there are endless possibilities for interaction – and therefore promotion – and brands serious about reaching new consumers, engaging their target audience and cementing their spirits’ stature would be foolish to avoid it.

To determine the 10 Social Media Heroes, their team evaluated brands’ status on the three largest social media platforms – Twitter, Facebook and Instagram – scoring each on their overall presence, engagement, creativity, and consistency. Each was assessed on the number of likes, shares, comments, retweets and favourites; frequency and creativity of posts; and consistency across both channels and any regional accounts.

This year’s Social Media Hero is Jägermeister, which championed social media activity on multiple regional accounts – particularly Twitter – by posting engaging, frequent and relevant content.

4. Patrón Facebook fans: 4.1m; Twitter followers: 237k; Instagram followers: 96.8k 5. Jim Beam Facebook fans: 2.9m; Twitter followers: 140k; Instagram followers: 50.3k 6. Aperol Spritz Facebook fans: 0.9m; Twitter followers: 7.8k; Instagram followers: 6.5k 7. Jose Cuervo Facebook fans: 2.7m; Twitter followers: 58.9k; Instagram followers: 15.7k 8. Grey Goose Facebook fans: 1.8m; Twitter followers: 84.1k; Instagram followers: 137k 9. Stolichnaya Facebook fans: 0.2m; Twitter followers: 23.5k; Instagram followers: 20.8k 10. Rémy Martin Facebook fans: 1.5m; Twitter followers: 12.1k; Instagram followers: 18k

Champagne loses its fizz as more Brits pick prosecco for New Year’s Eve Prosecco overtook champagne as UK drinkers’ fizz of choice for the first time in 2015.

Sales of prosecco continue to outpace those of champagne, according to new figures from retail insight leader IRI. Prosecco sales came to £356 million in the year to February 27, up 34 per cent on last year. Champagne sales increased just 1 per cent to £251 million, while sales in the wine sector as a whole grew just 0.4 per cent.

branded product. Own label prosecco claims 12 per cent of the total market, with the most popular brand – Plaza Centro – taking just 6 per cent.

Researchers said the data shows that sales of prosecco are not being driven by the cachet any one brand brings, but rather the ability to buy a highly drinkable, celebratory tipple at a reasonable price.

The continued demand for prosecco has led to a healthy sales increase in the overall sparkling wine category, which grew 15 per cent in the last year to £905 million.

IRI’s analysis is based on actual sales of products across the major supermarkets in the 52 weeks from 28 February 2015 to 27 February 2016.

Sales of cava, prosecco’s Spanish rival, are rebounding. Cava sales increased 11 per cent in 2015, Kantar said.

Analysis of grocery sales data shows that shoppers are buying more supermarket own-brand prosecco than any individual

Experts say prosecco’s rising prices, increased demand and decreasing quality are behind cava’s resurgence.

www.mga.asn.au

30

Legal and HR

Legal and HR Current modern award review The Fair Work Commission (FWC) is steadily progressing in their extensive review of the Federal Modern Award system which includes the review of the General Retail Industry Award (GRA).

In contrast to the 2012 ‘interim review’, the current review is broader in scope and will be more accommodating to the introduction of changes to the modern awards, where the proposed changes are found to benefit the modern award system.

The review process has been divided into 2 primary categories, the first being ‘common issues’ which effects all modern awards collectively and the second being ‘award specific’ groups which focuses on matters that are unique to individual awards.

There are a number of common matters that are under review that concern the GRA. These include for example: •

The reduction in Sunday penalty rates.

•

Voluntary Sunday work if a reduction in penalty rates occurs.

•

The right for employees to elect ‘cashing out’ of their excessive annual leave.

•

The inclusion of a ‘family & domestic violence clause’

•

The creation of simplified awards to enhance ease of use for employers.

•

A casual conversion clause which would allow casual employees employed on a regular and systematic roster to become part time or full time employees.

In addition there are also a significant number of proposed changes that are currently being considered in regards to the GRA. These include: •

A variation to the part time employee clause to allow greater flexibility in rostering.

•

A variation of the minimum shift to 4 hours for fulltime employees.

•

The proposed deletion of minimum 1.5 hour shifts for secondary students.

•

A variation to the junior rates clause so that it applies to Level 1 employees only.

•

A variation to the wages clause to ensure that wages are paid within 4 days of the end of the pay period.

•

A variation to the overtime clause which would provide casuals with overtime rates for work in excess of 38 hours per week.

•

A variation of the overtime clause to provide payment of double time after 2 hours worked.

Employer associations are continuing to oppose a number of the matters listed above. While some of the common matters are likely to be decided within the coming months, the GRA specific matters will not be decided until the later part of 2016, with the introduction of the changes (if approved) not occurring until 2017.

MGA will continue to keep members up to date with the progress of these matters and any changes that are likely to occur.

August 2016 - Edition 5

Legal and HR

31

Collective bargaining – the benefits of working with others!

Everyone has heard of the phrase “there is power in numbers” but have you ever considered negotiating as a group for better terms and conditions with larger businesses, suppliers or customers? If so, this is called collective bargaining and participants must seek approval by the Australia Competition and Consumer Commission (ACCC) before proceeding.

Collective bargaining occurs when two or more competitors get together to negotiate terms, conditions and prices with a supplier or customer. In addition to price, collective negotiations can include aspects of delivery, volume rebates, and supply of new products.

It could also involve a collective boycott where the group agrees to stop dealing with the supplier or customer unless the terms and conditions offered by the group are accepted.

There are many benefits for those negotiating as a group such as the reduction of time and costs of negotiating supply arrangements, creation of more commercial opportunities and information sharing.

The ACCC has approved many collective bargaining arrangements

by small businesses in various industries. For example, in late 2015 the ACCC approved the Tasmanian Chicken Growers Association to collectively negotiate the terms and conditions of chicken grower contracts with Inghams Enterprises Pty Ltd. There are many requirements and factors to consider when forming a bargaining group as collective bargaining is particularly suited where the group has common objectives and requirements. Further, without prior ACCC approval, those involved in collective bargaining groups risk breaching the Competition and Consumer Act 2010 which may result in significant penalties. The ACCC is likely to allow collective bargaining arrangements to go ahead where it considers that the public benefit will outweigh any public detriment and it is accepted by the ACCC that collective bargaining by small businesses is generally in the public interest.

For more information regarding collective bargaining, please contact MGA’s Legal and HR Team or visit the ACCC’s website at http:// www.accc.gov.au/business/anti-competitive-behaviour/collectivebargaining-boycotts.

Buying or selling a business The sale or purchase of a business can be complex when employees are involved and it is important to be aware of the rules relating to employee entitlements.

What does the seller need to be aware of in regard to employee entitlements in the event of making a decision to sell the business? If the sale is being made to a separate business and the employees are moving to the new employer into exactly the same position, then all entitlements to annual leave, personal leave, long service leave and parental leave will move across to the new employer. Payment for the accrued entitlements will generally be factored into the sale price negotiations. If however, the new employer changes the employee’s proposed positions, for example makes the positions casual or offers different or lesser roles, then the seller will be liable to make redundancy payments to the transferring employees.

What if the purchaser refuses to recognise the previous years of service of the employees? In this situation the purchaser may decide to treat the transferring employees as new employees.

Then the old employer would need to pay out the transferring employees entitlements to accrued annual leave, and redundancy payments, notice can be factored into the weeks

prior to the settlement date. Generally liability for long service leave will still transfer across but the payments that are due will be factored into the purchase price. The right to parental leave will automatically transfer and also the entitlement to personal leave. Not recognising previous service does give the new employer the opportunity to treat the employees as new employees and therefore provide the right to assess their suitability for the new positions. This allows termination within the first six months of employment with the new employer.

Should the new employer decide not to recognise previous service for the purposes of not being liable for redundancy or unfair dismissal, it is essential that each transferring employee receives written notice from the new employer, which must be signed by both parties before the new employment commences.

To allow ample time for all these issues to be addressed the actual transfer of business date should be planned well in advance so as to avoid any complications.

The transfer of a business is a complex matter and careful consideration of the process is needed when deciding to sell or purchase a business. Call MGA Legal and HR Services for assistance.

www.mga.asn.au

WE PUT THE POWER BACK IN YOUR HANDS Aussie NRG and MGA Energy Services understands that electricity is an essential part of your business. You may not have the time, or the expertise, to research and find the best options for your energy needs.

We will help to make this process painless and fast by combining your volume with others to maximize the best rate. We get the energy companies to bid against each other!

MGA Energy Services give you: • Price review • Network review • Load factor review • Loss factor review • Metering data review • Daily data transfer for monthly audit This is supplied monthly from data usage of electricity which enables Aussie NRG to challenge or reset to reduce costs for members where possible.

For an obligation FREE quote Just email both pages of your recent energy bill to: Phone Roger on: 0419 139 731 Email: mges@aussienrg.com

AUSSIE

NRG

MGA Energy Services has partnered with Aussie NRG to procure cheaper electricity which in turn will improve your profit!

Legal and HR

33

Rewarding your manager Rewarding your best employees by giving them a managerial role and paying them a salary is highly commendable. However, it is important for members to be aware that although having a management contract is a way of providing incentives to good employees, there are pitfalls to be considered.

All employees who earn less than $136,700 per annum are basically subject to an industrial award and they all have the protection of the National Employment Standards. Even for salaried managers, it is not possible to contract out of the NES entitlements such as, annual leave, personal leave and parental leave. Long service leave is also a statutory requirement for all Australians.

All retailers are aware of the high penalty rates that are payable under the General Retail Industry Award (GRA) on certain dates and times. Sunday penalties and public holidays are considered to be formidable

and can be extremely high depending on the classification. There are classifications in the GRA that cover managerial staff and it is these rates that should be taken into account when framing a “management contract.”

The GRA does not provide for a management contract that has an “all in rate”. if you intend to make a management contract you should carefully estimate the hours you expect your manager to work and then calculate whether your proposed “salary payments” compensate for what is payable under the award.

All entitlements that you would pay under the award should be referred to in the proposed management contract, including annual leave loading. The contract should show what the manager would be entitled to under the GRA and then an amount added to show there is an additional bonus for the leadership and management skills and

duties that expect to be carried out. The contract needs to be carefully worded to ensure that any employee who agrees to a management contract is given the assurance that all award entitlements are covered in the agreement. This also protects you as the employer in the event that the employee challenges the agreement at some time in the future. There have been instances where a well-intentioned employer has elevated an employee to a “managerial role”, paid what appeared to be a higher salary at the time but unfortunately had not factored in a specific penalty rate. This results in a massive claim for back pay, which can be substantial when calculated over several years.

MGA urges members to be cautious about drafting a management contract without seeking advice. We recommend that you discuss your proposals with the MGA Legal and HR team before entering into a management contract.

Name and shame boards MGA has recently been asked by some members whether retail stores are permitted to display a shoplifter’s photo on a “name and shame board” as a deterrent for others. Retail stores are considered to be “private land” and owners or occupiers are well within their rights to display a person’s photograph on their private land for a noncommercial use. However, these individuals whose photos have been displayed may claim that this is an invasion of privacy or defamation.

Currently in Australia the position as to whether someone is able to commence an action against another person for an invasion of privacy is unclear and there is no right to privacy which allows for this. An individual may claim that displaying their photo is a breach of their human right to privacy, but such a right is very difficult to enforce. Further they could also potentially make an action against the retail store for defamation, however this is unlikely as the process is extremely difficult and the individual must prove that they have a substantial reputation which the retail store has defamed by displaying their photo.

In conclusion, there is little that can be done to prevent retail stores from displaying the photos of shoplifters. However, MGA encourages members not to display the photographs of individuals unless you have conclusive evidence of shoplifting. MGA also advises all members to contact local police should you believe a crime has been committed in your store.

5 TO BE WON

PROMOTIONAL DATES 15 AUGUST – 30 SEPTEMBER 2016.

FOR MORE INFORMATION, CONTACT YOUR BROWN BROTHERS AREA MANAGER OR CALL 1800 032 248.

www.mga.asn.au

34

Training

August 2016 - Edition 5

Legal and HR

35

Business innovation Business innovation PERCEPTIONS PERCEPTIONS

In NAB’s Survey of Business Innovation in Australia we asked how businesses view Ininnovation, NAB’s Survey of within Business Innovation in Australia we asked how businesses view both Australia and their own business? innovation, both within Australia and their own business?

13% 13%

6%

6%

1 IN 4 1 IN 4

Australian firms across all Australian across allinnovative sizes say firms they are highly sizes say they are highly innovative

15 % 15 %

13% say highly innovative 13% highly innovative 6%say of very large firms 6% of very large firms 15% of SMEs 15% of SMEs 29% of very large 29% of very large businesses and businesses and SMEs say they are SMEs sayinnovative they are highly highly innovative

70 % 70 %

29 % 29 %

70% say 70% say Australia Australia is mildly isinnovative mildly innovative

NAB Special Report: A Survey of Business Innovation in Australia - September 2015.

NAB Special Report: A Survey of Business Innovation in Australia - September 2015.

www.mga.asn.au

36

Training

Training Snippets Jessica Casey Tumbarumba IGA Jessica works at the Tumbarumba IGA store. Before Jessica started at the store she had a role at McDonalds. Once Jessica left that industry she began her career in retail working for one of the chain stores. The chances there were good as Jessica got to learn the perishables department and also having a hand in ticketing and promotions. Moving on Jessica entered the construction industry but over time missed the connection with the people she was used to in the past. Hence landing a job at the IGA store.

The town is a very popular tourist destination where the population swells fourfold each summer and it can be chaotic there over this period. Congratulations to Cameron in completing his Certificate III in Retail Operations course.

Jessica completed her Certificate IV in Retail Management. Having the formal training will just enhance all the skills and knowledge that she has acquired over the years in other industries and businesses.

Congratulations on completing the course. I did not have the pleasure to meet Jessica but she certainly had the determination to complete and we wish her all the best.

David Smits O’Keefe IGA Plus Liquor (Seymour) David works for Peter and Sue O’Keefe in Seymour approximately 100 kilometres from Melbourne. It is a rather large town with the population over the 6,000 range. Congratulations to David in completing his Certificate III in Retail Operations course. He also has had the opportunity to develop his skills and knowledge in the retail sector.

Cameron Harris Inverloch FoodWorks Cameron is employed at the FoodWorks store in Inverloch. Located in the South Gippsland region nestled on the waters of Anderson Inlet, this is a picturesque town. The FoodWorks store caters to a population of approximately 5,000 local residents.

Over the time that Cameron has been undertaking the course he has received valuable training in all aspects of the retail sector. He has learnt the importance of workplace health and safety, along with working effectively within the retail sector to assist in servicing the customers and building relationships along the way.

The course has enabled David to expand his knowledge in areas that may not have been accessible to him. Completing the course allows the him to receive important formal training to enhance the abilities that have been learnt on the job.

Do you or any of your staff need an RSA Certificate?

MGA’s Malvern office (VIC) have added a new weekly night class. Now every Tuesday from 6-10pm.

Sign up today and get accredited!

Visit us at www.mga.asn.au/training or free call 1800 888 479 August 2016 - Edition 5

Training

37

www.mga.asn.au

38

Training

National Online Training Courses MGA delivers training and compliance solutions specific to the needs of independent retailers. We have a range of training and compliance solutions readily available for members. *Log in to our website with your member login to order you courses at these member prices.

Basic Food Handling

Duration: 20-30 minutes Member Price: $25 Food Safety Supervisors

Duration: 4-8 hours Member Price: $105 Food Safety Supervisors – NSW

Duration: 4-8 hours Member Price: $150 Food Safety Supervisors Refresher Course – NSW

Duration: 2-4 hours Member Price: $100 Monitor Food Safety Program

Duration: 2-4 hours Member Price: $105 Food Safety Supervisor & Monitor Food Safety Program

Duration: 6.5 hours Member Price: $180

August 2016 - Edition 5

Responsible Service of Alcohol This course deals with the skills and knowledge required to satisfy the requirements for responsible service of alcohol under state/territory legislation. All persons involved in the serving and sale of alcohol must complete this.

WA

RSA

SA

RSA

QLD

RSA

NT

RSA

RSA – WA, QLD, SA, NT

Duration: 3 hours Member Price: $45

ACT

RSA – ACT

ACT

RSA Refresher – ACT

VIC

RSA Face to Face – VIC

RSA RSA RSA

Duration: 3-4 hours Member Price: $45

(must be completed every 3 years) Duration: 1-2 hours Member Price: $30

Duration: 4 hours Member Price: $49

See our website for regional RSA courses and prices.

RESPONSIBLE SERVICE OF ALCOHOL COURSES Do you have 10 or more staff to train in RSA? Contact us to see if we can organise an instore course. *Available in MELB Metro and surrounds.

Training

39

Visit www.mga.asn.au to purchase our training courses Health and Safety These courses aim to provide employees with information and instruction on their responsibilities and the responsibilities of management with regard to workplace health and safety.

There is a large selection to choose from:

Health & Safety Induction

Duration: 30 minutes Member Price: $25 Administer Workplace Health & Safety

Duration: 60 minutes Member Price: $40 Emergency Management

Duration: 60 minutes Member Price: $25

Updated online courses on the MGA website The system and courses have been designed to be user friendly and work on most devices, including desktops, tablets and mobile phones. As long as you’ve got internet access, you’ve got learning opportunities.

Food Safety

Food Safety Supervisor course for all states except NSW: $105 Store Security

Duration: 30 minutes Member Price: $25 Manual Handling

Duration: 60 minutes Member Price: $25

Food Safety Supervisor course for NSW: $150 *Food Safety Supervisor refresher course for NSW: $100 *Food Safety Supervisor refresher course is a new course developed for NSW. It contains the extra information on raw egg safety and allergens that the Food Authority now requires. You need to refresh NSW Food Safety Supervisor training every 5 years.

Responsible Service of Alcohol – Special introductory price Workplace Violence, Bullying & Harassment

Duration: 30 minutes Member Price: $25 Hazard Identification & Risk Management

Duration: 40 minutes Member Price: $40

RSA Online for QLD, SA, WA, NT: $45

RSA Online for ACT: $45 *RSA Online Refresher course for ACT: $30 *The ACT RSA refresher course is to be completed every 3 years after your initial qualification. You must be able to supply evidence of your original RSA certificate to do this course. The online course can be completed in around 1 to 1.5 hours.

www.mga.asn.au

Access your member discounts

Exclusive and tailored insurance for your store

ABN 75 078 972 700 | AFSL 244348

we listen, we deliver