ISSUE 8 | DECEMBER 2016
YOUR INDUSTRY NEWS PROVIDED BY MGA INDEPENDENT RETAILERS
FOODWORKS NATIONAL CONFERENCE, THAILAND 2016
STORE REFURBISHMENTS DELIGHT CUSTOMERS – PG 9 888•479 • www.mga.asn.au National National SupportSupport Office Office • 1800• 1800 888 479 www.mga.asn.au
‘Mount Franklin’ and ‘The Nation’s Hydration’ are registered trade marks of Coca-Cola Amatil.
CONTENTS 5 CEO Welcome
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.
SUPPORT OFFICE Suite 5, 1 Milton Parade, Malvern, Victoria, 3144 P: 03 9824 4111 • F: 03 9824 4022 email@example.com 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
MGA CHIEF EXECUTIVE OFFICER Jos de Bruin 03 9824 4111 E: firstname.lastname@example.org
CORPORATE PARTNERSHIP AND MEDIA SALES Steve Sellars 0407 399 240 E: email@example.com
INDUSTRY NEWS 6 Foodworks National Conference THAILAND October 2016 6 Foodworks National Conference Expo 7 Foodworks National Conference 7 Foodworks Store Excellence Awards 2016 9 MGA members around Australia are delighting their customers by investing back into their stores
11 Romeos Foodland Mitcham 12 Ritchies Supa IGA Dromana 14 Tasmanian Retailers excel 14 Hill Street Grocers Blackmans Bay 15 Salamanca Fresh Huonville – IGA Express 17 Hill Street Grocers West Hobart 18 MGA Industry Business Breakfast and AGM 20 Victorian members meet Shadow Ministers 20 IGA upgrade in Balwyn steals the show at 2016 AIRAH Awards 21 Dave Redden from Refrigeration Innovations wins an Ariah Award 21 MGA welcomes GPK as a new gold level corporate partner 23 ACCC Chairman discusses the increasing concentration in Australia’s economy 23 New Small Business Commissioner – VIC 24 Businesses remove unfair contract terms before new law 25 AFL Grand Final public holiday: adds costs & costs jobs 27 Ban on excessive surcharging by large businesses
Part Public Holidays: Christmas Eve and New Year’s Eve
28 Shopper behavior Christmas….all YEAR
MGA Board of Directors 2016 Elections
29 Liberalisation of SE Queensland Shop Trading Hours
LEGAL AND HR 30 Employer obligations during workers’ compensation 31 Developing loss prevention strategies 31 Proposed parental leave changes 33 Enjoying the staff Christmas celebrations – A reminder for 2016! 35 Review of Queensland trading hours
37 Alcohol advertising ban on WA public transport 37 New state manager for Liquor Marketing Group 38 MGA national liquor update and Christmas drinks 39 Cricket Australia and DrinkWise partner on moderation 41 Matua named New Zealand Wine Producer of Year 42 Supporting the prosperity of independent retailers 43 Around the World
EDITORIAL AND PRODUCTION
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44 Australian Apprentice of the Year Award 2016 44 Mental health and bullying 45 Karellas employees obtain their NSW Food Safety Supervisor certificates 45 Certificate IV Retail Management www.mga.asn.au
MGA CORPORATE PARTNERS DIAMOND
British American Tobacco Australia PLATINUM
WAREHOUSE AND BRAND PARTNERS
tasmanian independent retailers
CEO WELCOME In recent months I have been fortunate enough to have visited many members’ stores in most states and territories. I am very pleased to observe that the presentation of stores and the customer service standards are lifting rapidly. Congratulations to all members who have taken a risk and put their hard earned cash into substantial store refurbishments, extensions and upgrades. Your customers continue to be impressed too and love to see the ongoing improvements and their shopping experience continually escalate. In this edition we will highlight a few of the stores in South Australia, Tasmania and Victoria who that made significant improvements to their stores and where the customers are benefitting. Christmas and the festive season is nearly upon us and I am sure no one needs to stress with you the urgency to make the most of this significant period of trading ahead of us, where discretionary consumer spending can be maximised with some thoughtful buying and merchandising in store. In recent months MGA’s team has been busy workshopping various concepts and ideas as to how MGA can continue to improve and be more effective for our members. MGA’s higher purpose is to “make life easier” for its members but most of all MGA’s role is to help its members make more money! All MGA support activities centre around MGA fulfilling this aim – so take advantage of your industry association support service – it’s at no extra charge! Congratulations to Rod Allen (Vic), Debbie Smith (QLD) and Gino Divitini (WA) who have been re-elected by members to
be MGA Board Directors in 2017. Thank you to NSW retailers, Graham Gough, Bob Little and Dimitri Spyrakis and Victorian, Andrew Spark for nominating to become a MGA Board Director. This year MGA had 7 nominations for 3 board vacancies which is fantastic and demonstrates the interest members are taking in their industry organisation. It is with great satisfaction that I report to members that the Prime Minister of Australia, Hon Malcolm Turnbull, announced in his speech at a very large industry event in Canberra on 9th November, that the “effects test” or strengthening of section 46 of the CCA is a priority policy commitment for the Government and will hopefully be before the Parliament very soon after being discussed at COAG in December 2016. 2017 holds many exciting new initiatives for MGA. MGA is seeking to diversify its support services to facilitate a stronger and more sustainable organisation for its members. MGA urges its members to use the many training courses that are available both online and face to face. All profits go back into providing stronger member support. In closing and on behalf of MGA’s Board of Directors we wish all members and industry stakeholders a very prosperous festive season and hopefully, if you can make the time, have a very relaxing break. Best wishes and good trading – see you in 2017! Jos de Bruin CEO – MGA Independent Retailers
BETTER BUSINESS PLANNING Wednesday 22nd March 2017
Following on from our very successful business breakfasts, in 2017 we are introducing a specific business workshop (VIC) to build your business without compromising your lifestyle. What you will learn? We will share with you 7 simple steps on how to secure your business future, benchmark your performance, identify and minimise major risks and maintain your work/life balance. Who should attend? Anybody who wants to build the value of their business or those preparing a short or medium term exit strategy.
Foodworks National Conference THAILAND October 2016 Pattaya Beach Thailand 600 Foodworks retailers and staff, suppliers and industry stakeholders came together in idyllic Pattaya Beach Thailand for their national conference and expo.
Rick Wight, CEO FoodWorks
The venue was the magnificent Red Cliff Beach Hotel complex where all conference attendees could network and exchange ideas. This was a unique experience to have most stores represented by their owners and or managers. This conference opportunity is as much about professional development as it is having a relaxing and fun time with colleagues. All delegates were treated to a superb selection of freshly cooked gourmet meals in various locations around the hotel including; the pool area, the ballroom, the breakfast room and function centres.
Hien Nguyen & mother, FoodWorks Redbank Plains with Debbie Smith
Deborah & Peter Ramsdale, FoodWorks Wedderburn
Nicole Harvey, FoodWorks Dalby & Wayne Mason, State Manager QLD
Alexander Odger & Michelle Taylor, FoodWorks Loganholme QLD
Mark Paladino â€“ CUB & Dale Brennan â€“ TWE
Michael & Christine Burge, FoodWorks Charters Towers QLD
C-R: Adam Buckingham, Mildura & Robert Parkhurst, Tugun
Paul Holmes, Bulla & Billy Bui, FoodWorks Wycheproof
Foodworks National Conference Expo Foodworks national grocery and liquor suppliers and support services set up a well laid out pop up expo in one of the main conference rooms at the hotel. Foodworks retailers had the opportunity to engage with a plethora of suppliers on a face to face basis which is something regional and remotely located stores may not be able to avail themselves to. There were expo deals available, together with the introduction of many new
December 2016 - Edition 8
products on display. This was a perfect setting for all industry stakeholders to engage in industry based discussions and activities in a relaxed and informal setting. Foodworks management and staff are to be congratulated for the seamless execution of this most rewarding business activity.
Foodworks National Conference CEO Rick Wight and his senior management team, including Kym Coventry and Anthony Abdallah, presented a plethora of valuable industry insights and trends including suggestions as to how store owners could take advantage of those opportunities to excite and invigorate their customers. They also shared their vision for the Foodworks business network and presented plans to achieve continued sustainable Foodworks retailer business growth in the face of many challenges including competition pressures.
An inspirational group of speakers including renowned economist Peter Switzer, global supermarket consultant and former ALDI CEO Paul Foley, business mentor and motivator, Peter Thurin, Retail Operations and Supply Chain Strategist, Olive Sargent and Coca Cola National Category and Planning Manager, Paul Rathborne who are all experts in their fields provided the enthusiastic audience with valuable information and tools to assist attendees better understand their businesses in a tough trading environment.
Kym Coventry, CCO FoodWorks
Foodworks Store Excellence Awards 2016 Every year FoodWorks independent supermarket retail standards improve. Customers around Australia are continually benefitting from retailers investing back into their stores and providing shoppers with an excellent shopping experience. This year there were many very impressive FoodWorks stores nominated for various national departmental awards and of course overall store excellence awards across various size categories of stores around Australia. MOST OUTSTANDING FOODWORKS DEPARTMENT AWARDS – 2016 Produce – Marrickville Meat – Macksville Deli – Bundaberg Bakery – Wagga Wagga Seafood – Bacchus Marsh Grocery – Yackandandah Dairy/freezer – Agnes Waters General Merchandise – Griffith Liquor – Orbost
MOST OUTSTANDING NATIONAL FOODWORKS STORE AWARDS – 2016 Convenience: East Corrimal NSW – Richard Rabay Country Town: Barham NSW – Terry and Vicki Scott Destination: Marrickville NSW – Joe Khouri Local: East Ivanhoe Victoria – Paul and Debbie Schroder Regional: Agnes Water Queensland – Greg and Kylie Dempsey Seasonal: Summerland Point NSW – Guy and Bianca Fitzgerald Local Area Marketing: Mansfield VIC – Reddrops Group Express store of the year: Tugun Queensland – Robert Pankhurst Medium store of the year: Yackandandah Victoria – Andrew Reid & Nick Cook Large store of the year: Agnes Water Queensland – Peter and Michelle Kinder Congratulations to all the nominees and winners of the FoodWorks National Store Excellence Awards.
FoodWorks large store of the year – Agnes Water QLD
FoodWorks medium store of the year – Yackandandah VIC
FoodWorks express store of the year – Tugun QLD
FoodWorks convenience store of the year – East Corrimal NSW
FoodWorks country town store of the year – Barham NSW
FoodWorks local store of the year – East Ivanhoe VIC
FoodWorks seasonal store – Summerland Point NSW
FoodWorks Local Area Marketing – Mansfield VIC
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For more information or to order please contact Liaise Marketing: Ph: 1300 542 473 December 2016 - Edition 8
INDUSTRY NEWS SOUTH AUSTRALIA
MGA members around Australia are delighting their customers by investing back into their stores Foodland Market Fresh Brighton
Together with fresh food, customer service is a hall mark of this store with well trained staff always available to assist customers.
Tim Rugless, owner and operator of the Foodland “Market Fresh” in Brighton SA, invested significantly in a superb refurbishment of his supermarket just a couple of years back and his customers have been reaping the benefit since. Fresh sales went up and so too did grocery.
Customers enter the store via the “market fresh” produce section of the store. The store has a warm and welcoming ambience owing to the thoughtful fit out, timber flooring and subtle lighting. The product range is immense giving consumers a very wide choice. The brilliant market fresh area includes; freshly cut flowers, a bakery, “easy living” prepared meals to suit busy lifestyles, 6 fridge doors of milk, prepared salads and readymade meals bar, and an 18 metre full service deli with a very large range of small goods, olives, seafood, prepared value add meats and chicken.
The store retail trading area was extended from 1000 sq metres to 1200 sq metres and refurbished to expose a superb fresh food offer. 50% of the floor space has been allocated to a full service deli, fresh loose and pre packed and organic produce, meat, fish, chicken, homemade meals, dips and a large range of local and imported cheeses.
There are 20 fridge doors of freshly cut
meat, chicken, turkey, organic chicken, mince, lamb and kangaroo along with a significant amount of fridge space dedicated to gourmet cheese, cheeses of the world, dips, seafood and feta cheeses. There are 19 large fridge doors of chilled products including; yoghurts, prepared meals and dairy products and there are 7 fridge doors of meal solutions. The large range of frozen products is made available in a 24 door fridge with an extensive range of groceries represented in 8 well-lit aisles with specials displayed on each gondola end. Tim and the team are again looking to extend the store to further delight customers in the very near future.
Aly Lyall – staff member
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Romeos Foodland Mitcham The Romeo family, who are accustomed to presenting an exceptional shopping experience for their customers recently completed a superb extension and refurbishment of their Foodland Mitcham store. Rob Coburn, who is the store manager, takes great pride in his team providing customers with the best of customer service and friendliness. The ambience of the store is extenuated with superb lighting, timber look flooring, new customer service area and bulk displays of products all through the store. At the front of the store is a large bay with hundreds of trolleys. There are 9 full service registers, 2 self serve checkouts and a “fast service” 4 register, customer service counter at which tobacco can be purchased. Extended by 500 square metres to 2200sq metres this store now boasts a huge range of fresh, chilled and frozen food products. This store oozes “fresh” with a very large colourful and extensive fresh fruit and vegetable section encompassing more than 210 square metres. Fresh flowers are a feature at the front of the store. There are 54 metres of dairy case dedicated to chilled products including 5 metres of juice and 10 metres of milk. There are 48 doors of frozen products, 7 metres of newspapers and mags and 12 aisles of groceries with 18 bulk display ends. The enormous range of fresh meat is displayed in a 23 metre dairy case with the amazing and magnificent cheeses of the world range displayed in a standalone fridge display unit and an 11 metre dairy case. The enormous 27 metre deli has a very large display of olives, feta cheese, prepared meals and salads, small goods, as well as fresh seafood. A beautiful store which customers love to come back to over and over again.
Ritchies Supa IGA Dromana With summer almost upon us, fresh food shoppers on the Mornington Peninsula in Victoria have been tantalised with the very latest innovative, new concept supermarket, that was officially launched on 9th November 2016. This store has focused on delivering to customers the freshest gourmet foods through dedicated fresh food hubs within the store. Extended by 500 square metres to 3200 square metres, this store has allocated 50% of all floor space to fresh food. Everywhere you look there is a mouth-watering fresh food offer.
Karl Loh – GM, Gary Rowelly – State Manager Ritchies Liquor, Fred Harrison – Ritchies CEO and Ken McCafferty – Dromana Liquor Manager
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This “fresh market” style store boasts a sushi bar made by Sushi & Co, Leonards chicken bar, a 50 square metre fresh fish section with fresh live mussels, a large ready meals to go area with fresh pasta dishes, gourmet salads, ready to heat meals and so on. The 30 metre deli has an amazing offer including 8 meters of fresh aged beef as well as a Dry Aged Beef room. In this room, which is lined by slabs of Himalayan rock salt, beef is hung in 85% humidity for 60 – 90 days and then sliced for the meat department. There is a superb dedicated area for magnificent cheeses of the world, baked artisan bread and ground coffee beans. Cheeses are displayed on an open table top as well as 8 metres of dairy case. The 8 metre fresh dips section is outstanding with a large range of local and national brands being stocked.
Fresh meat is unique in this store as it is cut fresh daily and contains no artificial colours, no artificial flavours, no preservatives and is gluten free. There are 34 chilled doors of fresh meat & chicken. There are 5 milk fridge doors, 32 chilled doors with eggs, small goods, cream and yoghurts as well as 52 chilled doors of fruit juices, butter, cheeses, pasta, pizzas and soups. Pet owners are also well catered for with 4 chilled doors of pet food. A very large range of frozen food is accommodated in 47 large freezer doors. Thera are 10 spacious aisles of groceries along with 20 gondola ends for specials and instore food theme displays.
All staff are trained to provide outstanding customer service. There are 6 full service registers and 2 express self-serve registers. The Ritchies Liquor section is outstanding and caters for all the needs of the community. This spacious, clean looking, well-lit packaged liquor outlet has been thoughtfully laid out by the Ritchies team in liquor categories and then segments within categories â€“ the way shoppers shop. For example, all sauvignon blanc and shiraz wines are located together, as are all bourbons, scotches and beer styles for ease of shopping. Stocking a strong mix of local Peninsula wines and products as well as national brands sets this store apart from any other liquor retailer in the area. This is the new bench mark store for all independent supermarket store owners to aspire to. Congratulations to the entire Ritchieâ€™s team!
Tasmanian Retailers excel Like their mainland colleagues, Tassie independent supermarket operators continue to raise the benchmark for excellent retailing. They have taken the risk, invested their funds into new store fit outs and refurbishments and their customers are happy. Fresh food and grocery sales have gone through the roof.
Hill Street Grocers Blackmans Bay The 400 square metre Hill Street Grocers Blackman's Bay, refurbished in late 2015, is the epitome of what customers would like from a convenience style store. Terrific fresh, top quality, gourmet and continental foods readily available. Once again the Nikitaris family led by Nick and Marko, are leading the way with innovation and investment back into their stores. Stavros Zavros is the store manager and is committed to the Hill Street Grocers philosophy of quality fresh foods coupled with exceptional customer service. Customers love it, so naturally there is a high volume traffic managed by an efficient customer service ethos at the registers. This store has 50% of its space allocated to fresh which yields 75% in sales. Freshly baked continental bread and cakes, a large range of small goods in the deli, a superb range of gourmet cheeses, fresh prepared meals and salads, along with a first class local fresh produce and meat offer combines to drive an increase in basket size. The store has a distinct European feel with fully tiled walls around the deli and the incredible range of continental products stocked. Unique ceilings and lighting throughout the store facilitates a modern and clean ambience. The shelving around the fresh area is no taller than eye level to give the store a market place feel and visibility of all fresh departments. The store has very high quality fit outs including 18 metres of built in recessed dairy cases surrounded by timber which exudes a farm like warm ambience. Customers love shopping at Hill Street Grocers. Congratulations Stavros Zavros and his team at Blackmans Bay.
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Stavros Zavros â€“ Store Manager
Salamanca Fresh Huonville â€“ IGA Express Almost 3 months ago, Tasmania was inundated with floods. Huonville was no exception with the township experiencing terrible flooding and subsequent damage to homes and businesses. The 260 square metre Salamanca Fresh supermarket was a victim of the flooding with high waters filling the store to knee height (.5 metre) and sustaining serious damage to flooring and equipment. Salamanca Fresh is a renowned family owned business in Tasmania. After assessing the damage, owners and founders of Salamanca Fresh, Dennis and Maria Behrakis and daughter Soula made the decision to invest heavily back into the store and completely refurbish the store. Everything is brand new including, all new equipment, fridges, freezers, deli and shelving. 50% of the space has been allocated to fresh returning 60% in sales for the store.
with 7 doors of frozen products, 9 metres of dairy case including; milk, dips, butter, cheese and juices along with 3 metres of fresh meat. Fresh food is a specialty in this store, particularly, in the deli. Pricing on all fresh and grocery items is very competitive. Salamanca Fresh have 7 stores around Hobart and this allows their pricing to be at market prices. The store may be a convenience size store but stocks a great range of mainstream ready to go meals. Soulaâ€™s mother, Maria makes all the fresh and uniquely made ready to go meals herself. There are 5 small aisles with a great range of basic grocery items including gluten free. There are 6 gondola ends to display local products and specials. The customer friendly register area is fast and convenient.
After being closed since July the store opened on the 13th November. Congratulations to the Behrakis family.
When the store opened, locals expressed excitement and exuberance to have their local supermarket back in operation. The locals warmly welcomed back the Behrakis family and the team.
Under management of Lance Hawkins the store now operates
Congratulations Maria, Dennis and Soula Behrakis.
Maria Behrakis with daughter Soula
CORPORATE PARTNER ADVERTISING
December 2016 - Edition 8
Hill Street Grocers West Hobart The Hill Street Grocers West Hobart is an amazing store. It was truly deserving to win the IGA Express National Store of the Year in July 2016. Marko and Nick Nikitaris have thrown caution to the wind and invested into not only a supermarket but a lifestyle. The Nikitaris family have put their heart and soul into their business providing customers with a upmarket range of fresh foods and choice at value prices.
with 50% of floor space allocated to fresh food which generates 60% in fresh sales. The store ranges over 9000 skus with many unique products being sourced on a direct basis, as well as an area for high quality homewares and fresh flowers. Omiros prides his store an supporting Tasmanian producers and suppliers. This store is famous for itâ€™s quality products, an extensive range at value prices â€“ what customers want thatâ€™s important!
There is no doubt this is a flag ship store in every respect and is mirrored in all other Hill Street Grocer stores around Hobart and Tasmania.
The staff in this store are trained to provide the best in customer service which generates a unique customer loyalty.
Omiros Polikretis is the store manager and presides over 60 staff members. He has had extensive supermarket experience.
Social media (Facebook, Instagram and website) is an important medium for the group to connect with their customers.
This 550sq metre convenience store boasts an incredible range of departments
Whilst in the store we witnessed the great chef herself, Stephanie Alexander,
as she launched her latest cook book to Tasmanians in the West Hobart store. This store is unique as it stocks a very large range of locally produced wines and beers which it has on offer to be sold as part of providing a whole of meal solution. The full service deli, with dedicated gourmet cheese section, prepared meals and a mouth-watering range of prosciutto is tremendous. There are 6 freezer doors and 16 doors for chilled products. Omiros said that employing people with the right attitudes toward supreme customer service and a love of food was a priority and that training was ongoing as part of their people development strategy. This store has everything a customer may want for their fresh food and grocery needs. Congratulations to the Nikitaris family and all their staff!
Grant Hincliffe, Steve Longmore and Nick Nikataris
Omiros Polikretis, Store Manager
MGA Industry Business Breakfast and AGM Over 70 SA MGA retailer members, industry stakeholders and supporters attended MGA’s SA Industry Business Breakfast and AGM event held in the Adelaide Oval’s Ian McLachlan room on Friday 11th November. The venue itself was terrific with superb views of the oval and surrounding grounds. Special guests and speakers included; representing the Prime Minister, Hon Malcolm Turnbull, Nicolle Flint MP, SA Member for Boothby who read out a letter on behalf of the PM, SA MP Member for Florey, Frances Bedford, representing Deputy Premier Rau, who was a late apology,
Australian SA Independent Senator Nick Xenophon and ACCC Commissioner Roger Featherston. The Master of Ceremonies was MGA’s SA Director and local retailer Chris dos Santos. Nicolle Flint addressed the audience, and on behalf of the Prime Minister thanked everyone for coming and stressed the need for such events, to keep lifting the profile of privately owned businesses and family enterprises. In between speakers, MC Chris shared his stories about the Adelaide Oval, Frances Bedford spoke about a number of SA related issues and initiatives, Roger Featherston spoke about many competition matters and shared his insights into the Harper Panel Review recommendations to strengthen section 46 of the CCA and Senator Nick Xenophon summarised his very busy week in Canberra and the myriad of issues they are handling all
Top: Spero Tsapaliaris, Edward Ibrahim; Bottom: Robert Johnston, Phil Funnell and Sean Chapley
Nicolle Flint MP – Member for Boothby, reading out a letter from the Prime Minister Hon. Malcolm Turnbull
John Chapman – Small Business Commissioner SA, Jos de Bruin – MGA CEO and Roger Featherston – Commissioner of the ACCC
Steve Hagidiakou and John Chapman
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Warwick Ponder – eftpos, Nick Xenophon – Independent Senator for SA and Debbie Smith – MGA Board member
Breakfast attendees listening to Nick Xenophon’s presentation
Adelaide Football Oval
Roger Featherston – Commissioner of the ACCC
at once. Nick, as always, was demonstrably supportive of MGA’s members, small businesses and specifically referred to supporting any initiative to save SA jobs as a consequence of the withdrawal of motor vehicle production in SA in 2017. MGA’s Board of Directors came from around Australia to attend as well as industry leaders such as Lou Jardin, CEO SPAR Supermarkets, Con Sciacca Foodland CEO, Metcash SA GM, Steve Xenikoudis and SA Small Business Commissioner John Chapman attended this event. MGA’s AGM was held immediately after this event with the MGA board meeting then held shortly after in the SACA Board Room overlooking the magnificent Adelaide oval.
Here’s to a safe and happy festive season MGA board meeting with guests Jo Chapley and Colin Shearing – CEO South Australian Independent Retailers
What does the new year hold for your business? Of course you’d like to improve your return on investment! Why not call and speak to Phil or Rami for an appraisal?
Senator Nick Xenophon addressing the breakfast
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Francis Bedford – State Labor MP with Jo Chapley
Rick Ellis – IGA State Operations Manager, Stephen Xenikoudis – Metcash General Manager and Shane Wisman – Metcash Warehouse Manager
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Shadow Ministers • No maintenance • Up to 70% fan energy reduction On the 26th October, MGA members Tony Ingpen • No maintenance and Andrew Spark together with MGA’s Jos de Bruin met with Shadow Minister for the Environment Hon Brad Battin to discuss a number of issues effecting Victorian members including the proposed banning of plastic bags and the possibility of a Container Deposit Legislation (CDL).
Leader of the Opposition Matthew Guy MP, Andrew Spark, Brad Battin MP, Jos de Bruin and Tony Ingpen
Advantages of EC Upgrades Whilst it is MGA’s policy position to not stand in the way of the likelihood of a CDL, MGA has communicated Advantages of EC Upgrades with various governments, including the Victorian government that it would like to be part of the policy development stages to ensure the least impact of red tape or cost burdens on members.
IGA upgrade in Balwyn steals the show at 2016 AIRAH Awards Fan upgradeNovember at IGA Ormond 2016. Installation process Refrigeration Innovations were able to Energy savings Sydney, develop a system-based solution. AwareNew EC RadiPac The IGA supermarket in Ormond in Over the course of one afternoon the old fan fans save between 40 Fan upgrade at IGA Ormond Installation process Energy savings A major refurbishment at that the refrigeration system alone uses Melbourne’s South-East an upgrade was removed, a the separation built the to compared to belt The IGA needed supermarket in Ormond in Over course ofwall one was afternoon old 70% fan electrical New EC power RadiPac fans save between 40 Boccaccio Cellars IGA inneeded anand 60% of the store’s energy consumption, of its air-handling unit fan.South-East The old double Melbourne’s upgrade the newwas ebm-papst EC plug fan was removed, a separation wall was built systems driven identicalpower but compared variable to belt to 70%atelectrical Dave Redden was careful in his product Balwyn, VIC recently of itswas air-handling unit fan.belt The old double and the new ebm-papst EC plug fan was drivenThesystems at identical but inlet forward-curved fan assembly with installed. performance. fan system can be variable selection. With the assistance of EC fans inlet forward-curved fan assembly with belt installed. performance. The fan system honoured with the HVAC&R drive had failed and needed replacing. ebm-papst, Boccaccio Cellars was upgraded at any time to temperature control. can be Thefrom upgrade was undertaken by contractor drive hadrecognition, failed and needed replacing.able to expand upgraded at any time to temperature control. 2400m2 reducing The upgrade was by contractor industry’s The upgrade main was undertaken to replace MB Refrigeration andtothe fan undertaken waswhile supplied Performance their energy consumption by 20-30%. The MB Refrigeration and theairflow fan was supplied the AIRAH old fan and a upgrade solution was was undertaken found in toviareplace Markair Components. The original an Award. There is anPerformance additional 30% capacity reserve
the old fanMBandRefrigeration, a solution was was foundcalculated in via Markair Components. The fan original airflow There fan is anshould additional capacity collaboration between on the run existing in the selected more30% airflow be reserve Starting as abased small family Italian collaboration between MB Refrigeration, was calculated based on the existing fan in the selected fan should more airflow be Markair Components and Dave ebm-papst to specification and in duct work. (Since the fan Refrigeration Innovation’s Redden supermarket 1963, Boccaccio required in the future. Markair Components and ebm-papst to specification and duct work. (Since the fan ebm-papst EC fans on top of the required in the future. led the the project, focusing on long-term quickly select most energy efficient fan for the hadCellars failed the airflowbecame could notabelocal measured.) Bocaccio Cellars roof required No service or maintenance select the most energy efficient fan institution for the had failed the airflowof could not be in measured.) solutions. The refurbishment saw the for the people Balwyn, customer. No service or maintenance required Controls ebm-papst EC fans don’t use belts, store footprintcustomer. double in size, with a 60% Melbourne’s East. Over time it has grown Controls ebm-papst EC fans don’t use belts, The newin EC fan is limited refrigeration to 70% of The new fan was set to fixed speed operation. increase lowThe temperature its range of offerings, attracting the keyand factor selection. In addition to pulleys, thein fan fans’ bearings are new EC fan is limited to 70% of The new fan was set to fixed speed operation. pulleys, and the fans’ bearings are its capacity match the increase original infan sales capacity,toand a 380% attention of food and wine lovers from their high efficiency, ebm-papst EC fans The fan can be set via a potentiometer maintenance-free. its capacity to match the original fanspeedThe fan speed can be setindependent via a potentiometer maintenance-free. medium temperature across the country. Now the are comparatively quiet, in part due to performance, but it onlyrefrigeration consumes 3.45sales kW. outside the AHU and can easily be adjusted. performance, but it only consumes 3.45 kW. outside the AHU andwine can easily be adjusted.their excellent blade aerodynamics. capacity. This expansion made space for supermarket is a leading merchant The original fan required a 15 kW 4-pole To 4-pole ensure that the fan is not over- or under Thegreen originalgrocer, fan required a 15 kW To ensure thatoperated the fan is not or under a butcher, baker, a 40-foot in Australia. In 2014, by overthe next motor. performing a performing minimum and maximum speed motor. cheese cabinet, delicatessen section, and generation, Boccaccio Cellars began the speedIn the refurbishment of Boccaccio a minimum and maximum easily adjustable using the using was programmed. aThe wineairflow cellar ishosting over labels, process refurbishment Cellars, improving efficiency and noise The airflow is3,000 easily adjustable the of was programmed. of the store, unveiled in October 2015. aiming to expand store size and reduce through technology was paramount. The potentiometer on the outside of the AHU. potentiometer on the outside of the AHU. energy consumption. retrofit of high-efficiency condensers Tasked with the refurbishment of a and EC fan units resulted in large energy supermarket into a high-efficiency, Given the residential location of savings while keeping store-generated energy saving and future-proof store, Boccaccio Cellars, reducing noise was a noise to a minimum.
www.ECupgrades.com.au | www.ebmpapst.com.au www.ECupgrades.com.au | www.ebmpapst.com.au
December 2016 - Edition 8
Dave Redden from Refrigeration Innovations wins an Ariah Award The winners of the prestigious 2016 AIRAH Awards have been announced at a black tie gala event at Sydney’s Luna Park. Refrigeration Innovations was awarded Best HVAC&R Retrofit or Upgrade for the refurbishment of IGA Boccaccio Cellars, Balwyn VIC project. The IGA Boccaccio Cellars project consisted of a multi-million dollar refurbishment, including an enlarged supermarket and liquor area, refurbished and enlarged wine cellar, delicatessen, butcher, green grocer, basement car park and aboveground apartments. With energy savings and carbon reduction objectives, the project team lead by the project consultant Dave Redden of Refrigeration Innovations, adopted a holistic approach, which included a Kirby hybrid CO2 / R134a parallel rack system to deliver heating and cooling, Copeland digital scroll compressors, variable
speed drives, EC fans, an advanced Emerson control system, enclosed refrigeration cases, LED lighting and rooftop solar panels. The supermarket increased from 1200m2 to 2400m2. The low temperature refrigeration increased by 60% sales capacity, while the medium temperature refrigeration increased by 380% sales capacity. As a result of all the technologies employed, initial estimates indicate the owners will achieve savings in the region of 20-30%. Mr Redden accepted his award acknowledging the wider project team consisting of Fuller Refrigeration, the installing contractor, Heatcraft Australia responsible for the design and supply of the refrigeration system, including the hybrid parallel rack system and remote condenser; Emerson Australia, responsible for the supply of the refrigeration control system and Copeland digital scroll compressors LMOB Electrical Control – project electricians. He commented; “We first approached Heatcraft with the idea of producing a hybrid rack that was dimensionally acceptable for the sound proof container plant room we would need to use for the project. Right from the start Heatcraft rose to the challenge. Coupled with the great efficiencies produced by the Copeland CO2 scroll compressors, we felt we were on the right track of achieving the client’s goals of a sustainable energy efficient system. From there we expanded the holistic approach to the store comfort cooling and heat of rejection from the plant to warm the store when needed, the plant performed these duties admirably.”
Dave Redden with his Ariah Award
“It was definitely a team effort with a common goal of high efficiency, energy saving and sustainability for the future.”
MGA welcomes GPK as a new gold level corporate partner GPK are a complete IT solutions company who already provide support to Ritchies, Morgan’s, Champions and other IGA and FoodWorks stores. GPK have partnered with MGA to support the independent supermarket sector and work closely with MGA and their members. Their recent acquisition of Merlin software gives them a POS solution, one of the 7 approved by Metcash and FoodWorks.
Lee Matthews – Senior Systems Engineer and Grant Klaysen – CEO GPK GPK Group have worked with Ritchies Stores as their trusted technology partner for a number of years. The successful refurbishment of the Ritchies Fine Food and Wine Merchants Dromana store saw GPK Group manage the installation and integration of computer and networking equipment, internet connectivity, cabling, IP phone systems and IP CCTV high definition security cameras, as well as working closely with other contractors such as electricians and POS software vendors. This ensured the store was not only running state of the art equipment but was completed in an efficient timeframe with minimum impact to business operations. For more information please visit gpk.net.au or call Lee Matthews, Senior Systems Engineer on 1300 000 475.
22 INDUSTRY NEWS BEWARE: THE HIDDEN ELECTRICITY COSTS
METERING COSTS Metering Cost $8,892.00*+
Was $6.79 per day Now $1.92 per day Electricity $33,000.00*
Tariff Review $30,000.00* Peak Reset $22,800.00* Billing Errors $1,350.00*
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THE ICEBERG? A recent case study done by Aussie NRG on one of MGA’s very own members stores, has identified approximately $96,042.00 worth of savings over a 5 year contract! Aussie NRG can assist you with all aspects of your electricity costs to secure savings and improve your profit. If you are paying more than $1.92 per day for your metering costs give us a call.
*These figures represent dollars saved in ONE store over a 5 year contract negotiated by Aussie NRG
For an obligation FREE quote Send both pages of your recent energy bill to: MGA’s dedicated account manager on: 1300 139 731 Email: firstname.lastname@example.org December 2016 - Edition 8
ACCC Chairman discusses the increasing concentration in Australia’s economy The revenue of Australia’s largest 100 listed companies increased from 27% of GDP in 1993 to 47% of GDP in 2015. Australian Competition and Consumer Commission Chairman Rod Sims discussed increasing concentration in the Australian economy at the October RBB Economics Conference in Sydney. “The rise of large corporations in the Australian economy has been substantial. Indeed it seems we have outpaced the US,” Mr Sims said. Analysis prepared by Port Jackson Partners Limited shows the revenue of Australia’s largest 100 listed companies increased from 27% of GDP in 1993 to 47% of GDP in 2015. This compares to the US figures of 33% to 46%. “In Australia many markets are concentrated or are likely to become concentrated as firms pursue efficiencies from scale. In some markets there may not be room for more than a few efficiently sized firms given the size of demand,” Mr Sims said. “From a competition perspective, what we need to understand is whether smaller rivals or new entrants can readily contest the position of larger, more established firms.” “We should, therefore, have an eye to how often the identity of large firms change,” Mr Sims said.
Again, drawing on work by Port Jackson Partners Ltd, of the ASX top 100 companies in 1990, only 29 companies remained in the top 100 as at Oct 2015. Mr Sims, however, questioned the increasingly put view that we need not be concerned with industries becoming heavily concentrated, and with monopolies and their behaviour. “It seems to me that, absent a clear and convincing economic and evidence based explanation of how a merger will avoid harming consumers, the standard economic wisdom should prevail,” Mr Sims said. “This wisdom is that mergers resulting in high levels of concentration in markets with substantial barriers to entry will usually reduce competition and cause harm to consumers and our economy.”
He also said circumstances where monopoly pricing has no effect, or only a small effect on economic efficiency, are rare. • While not advocating any positions, Mr Sims then raised a series of questions for further consideration about market concentration and merger analysis, including: • Why is it that economic argument and opinion increasingly down plays conventional economic theory and wisdom on high levels of
consolidation and monopolies? Do we need to consider something similar to the approach adopted by US courts where once markets are defined and the merger is likely to result in a significant increase in concentration, there exists a “rebuttable presumption” that the merger should not proceed absent evidence to the contrary? There will be times when a merger to high concentration is acceptable, due perhaps to low entry barriers, but logic says it will not be the norm. Why shouldn’t those arguing the unconventional have the burden of producing evidence to support their position? Are regulators able to analyse and act where large incumbent firms continue to acquire promising start-ups? Is there too much focus on overlap in specific narrow market sectors? Should we focus more on the wider actual and potential competitive constraints and the extent or strength of those constraints? How many different forms of remedy should a competition regulator need to assess before saying “enough”?
“All of us here today understand the importance of strong actual or potential competition to the effective working of our market economy. This is why we all have an interest in these questions,” Mr Sims said.
New Small Business Commissioner – VIC Ms Judy O’Connell has been appointed as Victoria’s new Commissioner, replacing former Small Business Commissioner, Geoff Browne. The VSBC provides a range of mediation, dispute resolution and other services for small businesses. Ms O’Connell has had a long and distinguished career both nationally and internationally in roles with the Organisation for Economic Co-operation and Development and more recently with the Australian Taxation Office, as Assistant
Commissioner for Small Business. Ms O'Connell is an accomplished small business engagement leader with a proven track record of achievement across the public sector. She also brings with her a wealth of knowledge and experience working with Victorian small businesses. Ms O'Connell will commence in the role of Victorian Small Business Commissioner on 29 November 2016.
Businesses remove unfair contract terms before new law The Australian Competition and Consumer Commission’s new report into potentially unfair contract terms details its review of 46 contracts across seven industries, which resulted in a range of businesses making changes to their small business standard form contracts. The ACCC will begin enforcing the new law from 12th November 2016 when consumer protections against unfair contract terms are extended to include up to 2 million Australian small businesses. The law will apply to a standard form contract entered into or renewed on or after 12 November 2016. Contracts covered include those between businesses where one of the businesses employs less than 20 people and the contract is worth up to $300,000 in a single year or $1 million if the contract runs for more than a year.
Only a court or tribunal (not the ACCC) can decide that a term is unfair. However, if a court or tribunal finds that a term is ‘unfair’, the term will be void – this means it is not binding on the parties. The rest of the contract will continue to bind the parties to the extent it is capable of operating without the unfair term. The report, Unfair terms in small business contracts, provides an industry-byindustry breakdown of the common terms of concern identified by the ACCC following its engagement with businesses in seven industries, including advertising, telecommunications, retail leasing, independent contracting, franchising, waste management, and agriculture. “Businesses should be aware that from the 12th of November the ACCC is moving from its education phase to an
Dr Michael Schaper – ACCC enforcement approach where we will be targeting unfair contract terms,” ACCC Deputy Chair Dr Michael Schaper said. “Small businesses sign an average of eight standard form contracts a year and from November 12 these contracts will be covered by a law preventing unfair terms in contracts that are offered on a ‘take-it or leave-it’ basis.” Previous research has shown almost two thirds of small businesses claim to have experienced unfairness in contract terms and conditions they have signed, with almost half reporting experiencing some harm as a result. For more info go to www.accc.gov.au.
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December 2016 - Edition 8
INDUSTRY NEWS VICTORIA
AFL Grand Final public holiday: adds costs & costs jobs As Victorian MGA members know, MGA has been calling for the Andrew’s Government to reverse its decision to grant a public holiday on the Friday prior to the AFL Grand Final. This public holiday alone has added an additional $3m to MGA members wage bills. How can Victorian privately owned and family enterprise businesses afford this in such challenging times? Shadow Minister for Small Business in Victoria, Neale Burgess, recently released the statement below. “In early 2015 the Andrew’s Labor Government, declared both Easter Sunday and the day before the AFL Grand Final to be additional public holidays in Victoria. Victoria now has 13 public holidays, the highest of any state or territory. After two years in office Premier Daniel Andrews is still unable to clearly explain his reasons for imposing these two additional burdens on Victoria’s businesses and economy. While the Easter Sunday public holiday added significant cost, inconvenience and frustration for many areas of Victoria’s economy, the majority of anger has been directed at the public holiday celebrating the day before the AFL grand final. While there is no doubting the passion Victorians have for their football, there was no ground swell of support for a public holiday to mark the grand final and certainly no call at all to celebrate the day prior. Over recent months I’ve travelled around Victoria talking to business owners about the damaging effects of the Grand Final Parade Public Holiday (GFPPH). While the vast majority of traders are understandably anxious about the damage this ill-conceived public holiday
is inflicting on their businesses, many also expressed serious concern for the employees they were unable to give work to on that day. While much has been said and written about the damage caused to business and the economy by the two new public holidays, little has been reported about another group that has also been seriously impacted by this reckless and irresponsible decision; Victoria’s 500,000 plus casual workers. Casual worker’s jobs are often temporary, have irregular hours and don’t attract sickness or holiday entitlements. When casual workers don’t work on a public holiday, they don’t get paid. While employers are required to pay casual staff as much as two and three quarters times their usual rate per hour on a public holiday, if the business cannot afford to open or opens by using family members, the casual employee misses out altogether. A survey conducted by the Australian Industry Group (AIG), found that 85% of businesses were closed for last year’s GFPPH, and of those that opened many reduced their opening hours and/or ran their business with family members. In the Herald Sun letters to the editor on Sunday 25 September, Mr Jim Ryan, Director of the Gippsland Hotel in Sale, reported he had been forced to put off 14 of his casual staff for last year’s GFPPH, because the trade on the day would not cover the extra cost. Faced with a major increase in the cost of employing staff on a public holiday and with little or no ability to increase prices, small businesses must rely on a substantial increase in patronage, reduce costs or suffer the losses. Most Victorian small businesses are run by Victorian families and are not large organisations that can absorb significant losses. Over the last 2 years reports such as Jim Ryan’s have become wide spread and all too familiar. Last year’s GFPPH alone cost more than
Neale Burgess, MP 350,000 casual workers a day’s pay. Victoria’s casual employees are often our most disadvantaged workers and among those least able to absorb the loss of a day’s pay. Of Victoria’s more than 530,000 casual workers, more than half are women and 40% are aged between 15-24 years. Most casual workers are in relatively low skilled occupational groups, with 41 per cent employed as labourers or sales workers. The industry with the highest proportion of its workers employed on a casual basis is accommodation and food services, at 64.5 per cent. This industry also has one of the highest unemployment rates of any industry sector. For many casual workers an additional day without pay can mean being unable to pay the rent, buy groceries or afford a power bill. We all love our days off and Victorian’s work hard to earn theirs; however, few people I’ve spoken to around the state believe that the same small businesses we rely on to provide the majority of jobs for our young people or those that can least afford it, our casual workers, should have to pay such a heavy price so those in more secure employment can have a day off. Neale Burgess, Victorian Shadow Minister for Small & Medium Enterprises
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December 2016 - Edition 8
Ban on excessive surcharging by large businesses MGA wishes to remind members that the ban on charging consumers excessive payment surcharges, commenced in September 2016. Whilst it is not a practice of supermarkets or liquor outlets to charge customers for credit card surcharges this serves purely as a reminder. “The new law limits the amount a large business can charge customers for use of payment methods such as most credit and debit cards. Businesses can only pass on the permitted costs of the payment method such as bank fees and terminal costs,” ACCC Chairman Rod Sims said. “The new law has caused many large businesses to review their pricing practices. We expect to see a move from flat-fee surcharges for purchasing items like flights, towards percentage-based or capped surcharges. The ACCC is aware that some event ticketing companies are intending to change their pricing practices from 1 September such that consumers will no longer be charged fees based on the payment method chosen.” The RBA has indicated, as a guide, that
What makes a large business?
Gross revenue of
Gross assets worth
Number of employees
The ban on excessive surcharging: Large business is defined as having 2 of the above. the costs to merchants of accepting payments by debit cards is in the order of 0.5%, by credit card is 1-1.5%, and for American Express cards it is 2-3%. Some merchants’ costs might be higher than these indicative figures. For the first year the law only applies to large businesses, defined as having two of the following: gross revenue of $25 million or more, gross assets worth $12.5 million or more, or with 50 or more employees. It will apply to all businesses from 1 September 2017. “We will be enforcing these new rules from today, and the ACCC encourages all large businesses that haven’t already to
ensure their payment charging methods are in line with the new law,” Mr Sims said. It is important to note that businesses can still charge other fees, such as ‘booking fees’ or ‘service fees’ which apply regardless of the method of payment. In doing so, those businesses must still comply with the Australian Consumer Law in terms of ensuring the disclosure of any such fees is upfront and clear. Passing on the cost of processing debit and credit card payments is not mandatory for businesses. The ban has no effect on businesses that choose not to impose a payment surcharge. For more info go to www.accc.gov.au
Part Public Holidays: Christmas Eve and New Year’s Eve Summary of letter written to Chief Minister Gunner in the NT – We refer to the recent proposal by the Northern Territory Government to introduce two new part-day public holidays in the Northern Territory from 7pm to 12am on Christmas Eve and New Year’s Eve. Our members are extremely concerned about the proposal of two new part-day public holidays over their busiest trading period of the year.
burden on small businesses. There are a number of independent retailers, including our members who have stores that remain open on these two days for the convenience of shoppers. However, with these additional part public holidays, our members will consider closing their stores altogether due to the significant wage cost, which will not only limit consumer convenience and choice but also result in a loss of potential revenue for those stores.
There are already a number of public holidays in the Northern Territory public holidays calendar that require employers to pay heavy penalty rates on these days and the addition of these two part holidays imposes a further financial
We urge the Northern Territory Government to reconsider the proposal that will force retailers to either close their stores or pay exorbitant penalty rates on these two additional days. We are also disappointed that there was no public or
industry consultation to this proposal and in this instance we ask the Government to conduct a proper consultation process before the proposal is considered further. We believe the additional cost imposed by the proposed amendments will have a serious detrimental effect on small business in Northern Territory and any economic benefits certainly will not compensate for the angst, stress and extra burden of staffing and administration for these additional part public holidays. MGA is awaiting a response from the Chief Minister for the opportunity to make this submission and to explain our position further should they require additional information.
Shopper behavior Christmas….all YEAR What do Australian shoppers want over the Christmas break? Research, conducted by Pureprofile in late 2015, revealed key consumer insights into what Australians want (or don’t want) from businesses over the Christmas break. Businesses need to play to their strengths to get shoppers through their doors, and strengthen their weaknesses. Key findings include: • 56 per cent of shoppers say they would leave a product behind if the checkout line is too long • Over two thirds (68 per cent) would not make a purchase based on rude sales assistants • 77 per cent of Australians list Christmas crowds as a key deterrent to shopping in-store, although 72 per cent would like to see the product in person • Many Australians will buy their clothing and homewares online, with 28 per cent and 29 per cent buying online instead of in-store respectively CEO and founder of Retail Doctor Group, Brian Walker, says the survey shows that once again, it’s good customer service that
provides a competitive edge for retailers. “The advice for retailers wanting to maximise their share of wallet this Christmas is simple – give your customers a good experience and they’ll repay you in sales and repeat business. What’s essential for retailers is that they have enough staff to help customers, are transparent about the full cost of goods and drop point of sale surcharges. This research shows that unexpected charges are a nasty sting in the tail for what should otherwise be a happy shopping experience.” The survey shows customer service is king over the Christmas and festive season – during the stress of last-minute shopping, people appreciate the advice and assistance they receive in store (32 per cent), as well as additional services like free gift wrapping (22 per cent). Other key findings include: • 68 per cent of people will change their mind on a purchase if staff are rude or unhelpful • 56 per cent will not make a purchase if there are long queues at check out • Poor customer service is enough to make 53 per cent of shoppers abandon a purchase
72 per cent of people go in store to browse and see products in person 39 per cent of customers will change their mind on an item if the price is different at the check-out, and 25 per cent if they incur unexpected charges to use their preferred credit card 45 per cent will cancel an online transaction if there are unexpected surcharges on their preferred credit card, while 65 per cent will shop elsewhere if there are unexpected delivery charges 28 per cent cited credit card surcharges as a chief annoyance online, and 20 per cent in store
Source – Pureprofile conducted a survey amongst 1,006 adult Australian in November 2015. The research was funded by American Express.
MGA Board of Directors 2016 Elections
Master Grocers Australia Limited Stage 1 - Directors
Declaration of Results for Contested Offices E2016/162 Below are the results of the election for the following offices, conducted in accordance with the provisions of the Fair Work (Registered Organisations) Act 2009 and the rules of the organisation. Directors Total number of names on the roll of voters Ballot papers issued Replacement ballot papers issued Total Ballot Papers Issued Ballot papers / envelopes returned for scrutiny Less ballot papers / envelopes rejected at preliminary scrutiny Adjusting balance Total Ballot Papers Admitted to Scrutiny Percentage of ballot papers returned to number issued Ballot papers returned as unclaimed mail Ballot papers not returned
2216 2216 0 2216 473 25 0 448 21 7 1736
Directors (3) Candidates
ALLEN, Rod DIVITINI, Gino GOUGH, Graeme LITTLE, Bob SMITH, Deborah SPARK, Andrew SPYRAKIS, Dimitrios
312 233 108 132 307 108 87
Total votes Formal ballot papers Informal ballot papers
1287 429 19
I declare Rod Allen, Gino Divitini and Deborah Smith elected.
Rosemary Darwinkel Returning Officer Australian Electoral Commission 27 October 2016 Report Printed: 27 October 2016
Page 1 of 1
December 2016 - Edition 8
As most, if not all members may know, the Australian Electoral Commission (AEC) recently conducted MGA’s Board Director nomination and ballot process. This year by way of rotation there were 3 MGA Directors positions available. For the first time in recent memory, 7 MGA members from around Australia nominated for 3 vacant board positions. This meant the AEC had to conduct a member ballot to ascertain who would be voted onto MGA’s Board for 2017. After a few hiccups with Australia Post and the AEC granting a time extension of 1 week the ballot closed on the 27th October.
The Returning Officer declared Rod Allen, Gino Divitini and Deborah Smith were elected. MGA’s Board of Directors would like to sincerely thank all MGA members who nominated to become board members and also all members who returned their ballot papers. As said this is the first time there has been contestability of this nature for 3 vacant board positions. Thank you to Graham Gough – Ballina, NSW, Bob Little – Maclean, NSW, Andrew Spark – Gembrook VIC, Dimitri Spyrakis – Sussex Inlet, NSW for showing your strong interest to become board members.
INDUSTRY NEWS QUEENSLAND
Liberalisation of SE Queensland Shop Trading Hours The most recent order made by the QIRC to allow Coles and Woolworths to extend their trading hours was in South East Queensland (SEQ decision). This was a monumental blow to the business survival of independent community retailers and the jobs of their employees who will be affected by this decision. South East Queensland is the largest trading area in Queensland covering approximately 80% of the state’s population. The National Retailers Association (NRA) representing the giant retail duopoly, has claimed that the SEQ decision will create 1000 additional jobs and $100 million worth of additional sales. There is no evidence to support these claims and the most this decision will achieve is to perhaps offer jobs to those who are put out of work from independent stores and to redistribute the money that is currently being spent in Queensland independent community shops across a wider spectrum of retailers, including particularly Woolworths and Coles. Hours of trading for independent community retailers are governed by the Trading Hours (Allowable Matters) Act 1990 (the Act). The legislation originally provided an opportunity to small to medium independent community shops
AVAI L A B LE N OW
throughout Queensland to trade whenever they wished, subject to no more than 20 employees being on the shop floor at any one time. Larger grocery retailers, who now have 75% of market share, have over a period of 10 years successfully engaged in litigation, urging the Queensland Industrial Relations Commission (QIRC) to make orders that have encroached on the early, late and Sunday trading hours which were previously the prerogative of smaller independent community retailers. The Queensland Government has recently ordered a review of the state’s trading hours and the independent community supermarkets will happily participate in that review. However, it is disappointing that the South East Queensland decision was handed down at such a crucial juncture in this enquiry and we believe it would have been prudent for the Queensland Government to have sought the delay of this decision until all submissions to the enquiry had been considered.
For more information on the review of Queensland trading hours – please see page 35.
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LEGAL AND HR
LEGAL AND HR Employer obligations during workers’ compensation Employers must provide a safe and healthy workplace for all workers and take workers’ compensation or WorkCover insurance for the cost of benefits if your workers are injured or become ill because of their work. When an employee becomes ill or injured because of their work, it can be a difficult time for the employer as well. Members should ensure that all employees are cared for and have every opportunity to recover and return to work. But you also need to make sure that you follow the rules, not only for workers’ compensation but also for employee entitlements during the workers’ compensation period. Most of the rules are set by each state or territory’s laws, but you should also check your award or agreement to make sure you don’t have extra obligations. What is workers’ compensation? Workers’ compensation or WorkCover is a compulsory type of insurance payment to cover an employee’s wages and medical expenses when they are injured at work or become sick due to work-related activities. Employers in each state or territory have to take out workers’ compensation insurance to cover themselves and their employees. The insurance may cover: • Replacement of lost income • Medical and rehabilitation treatment costs • Legal costs • Lump sum compensation in the event of a serious injury Workers’ compensation payments are not wages. It can be paid to the employee directly from the insurance company/regulator or from the insurance company via the employer. Workers’ compensation laws in each state and territory will say who makes the payments in a particular case. What about taking and accruing leave? Under the Fair Work Act 2009 (FW Act) an employee does not accrue leave and cannot take leave (other than unpaid parental leave) while on a period of workers’ compensation. But the FW Act does not stop an employee from taking or accruing leave if it is permitted by the applicable state or territory workers’ compensation laws. Check with MGA or your local workers’ compensation authority about the rules that apply to you. Superannuation Superannuation guarantee contributions are generally not payable when an employee is absent from work on workers’ compensation, however the General Retail Industry Award provides that superannuation is payable on workers’ compensation payments up to a maximum of 52 weeks.
December 2016 - Edition 8
Members should also check any applicable workplace agreement which may require employers to pay superannuation on workers’ compensation payments. Other entitlements Awards and agreements can include an entitlement called ‘accident pay’ or ‘makeup pay’. This is a payment to cover the difference between the employee’s usual wage and the workers’ compensation payments they receive. This payment is usually only available for a limited period of time. The General Retail Industry Award does not allow for accident pay however other awards and agreements may provide otherwise. Suitable employment There may be occasions where a medical practitioner has advised that an injured employee may return to work with “modified duties”. Employers have an obligation to provide suitable employment, including modified duties to an employee in accordance with a medical certificate, unless it is not reasonably practicable to do so or outside of a period of time contained in state and territory workers’ compensation laws. If you believe that you may not be able to provide suitable employment as it is not reasonable, you will need to demonstrate why you cannot do so to your insurer or state regulator. Examples of reasons why an employer cannot provide modified duties could be it would cause extreme cost to the business or unfairly disrupt other employees to their detriment. If you refuse to provide the employee with modified duties that are reasonably practical, you may be breaching discrimination legislation as well as causing an impact to the cost of your workers’ compensation premium. Return to work If the employee has regained full capacity which is confirmed in writing by a medical practitioner within the specified time period in state and territory laws, the employee must be provided with pre-injury duties or equivalent employment. Termination of injured worker If an employee has not regained full capacity within a specified time period and the employer has complied with suitable employment obligations, then the employer may not be required to continue to provide suitable employment. However, if you decide to terminate the employee because of their incapacity, this may breach anti-discrimination legislation, or result in an unfair dismissal or general protections claim. It is therefore advisable to contact MGA Legal and HR Services for guidance on this issue.
LEGAL AND HR
Developing loss prevention strategies Store theft is reputed to be one of the largest crime categories in Australia and it is more important than ever to be alert to increasing levels of theft in your store. MGA members are confronted by two types of theft in their stores on a regular basis and they are customer theft and employee theft. The most commonly recognised form of theft is customer theft. Training your staff in preventative measures to avoid customer theft is your best defence in protecting your store. It is important that training your staff to be alert to incidences of customer theft is high on your induction program from the time they start work, with refresher courses throughout their employment. Staff should be advised to be observant of customer trolleys and baby carriages; never to leave the checkout unattended; check all credit cards and cheque signatures carefully; and ensure that they count cash out of the customer’s line of vision. A prominent sign at the entrance of your store advising customers that bag inspections are a condition of entry, will also deter potential thieves from your store. If you suspect a customer has concealed an item while in your store, ask the customer whether they need help with the item, or to remove the item from the place of concealment. If you suspect a customer of theft and who has left the premises, ask the customer to return to the store and have another employee
to call the police immediately. Do not forcibly detain a customer and ensure that two employees accompany the customer at all times while waiting for the police to arrive. The second form of theft that is often discovered in MGA stores is employee theft. MGA provides a range of policies that can assist in minimising employee theft including staff bag check policies, clocking in policies, gifts and gratuities policies, and employee purchases policies. Ensure that you have a check-seal system in your store and let your employees know that you will not tolerate the removal or consumption of any item in the store no matter what its value and that serving yourself or serving family members is totally unacceptable. In the event that you suspect an employee of theft, please contact MGA immediately so that we can assist you in dealing with the matter, and where necessary, guide you through the termination of employment process. By following some basic processes you will be able to at least reduce shrinkage in your store but it is advisable to be vigilant in following strict policies and procedures in order to avoid serious problems.
Proposed parental leave changes Current parental leave entitlements Currently the government provides 18 weeks’ leave paid at the minimum wage to new parents earning less than $150,000, and this is in addition to any leave provided by employers following the birth or adoption of a child. The General Retail Industry Award does not provide any additional paid parental leave entitlements, however such entitlements may be included in other awards or agreements which may apply to members. Proposed changes The Turnbull Government looks set to pass cuts to paid parental leave to stop “double dipping” with consequences for prospective parents around Australia. The proposed changes are contained in a bill before parliament which aims to prevent new mothers from claiming money from
both the government’s scheme and their separate employer arrangements (if any). The bill provides that for mothers accessing employer based parental leave entitlements, the government will only top up leave to a maximum of 18 weeks. So if a new mother got 10 weeks’ paid leave from her employer, the government would pay an extra eight weeks at the minimum wage. If a new mother got 18 weeks’ paid leave from her employer, she would not receive any payments from the government. This bill also provides that employees on parental leave will be paid directly by the government as compared to the current arrangement where they are paid the government payments via their employers. This new rule was due to start from January 2017 meaning women who are already pregnant may be impacted.
At the time of writing, the bill was being blocked by Senate crossbenchers who are concerned about its fairness and whether it will impact women who were already pregnant. As a result, Prime Minister Turnbull has reportedly proposed a more generous alternative scheme. This alternative scheme would increase the proposed limit from 18 weeks to 20 weeks and commence 1 October 2017 to try and get the policy approved through the Senate. The new scheme is expected save taxpayers between $600$750 million, however many mothers would be worse off financially. This scheme has also been criticised as a deterrent for employers to voluntarily provide paid parental leave as it is no longer an incentive or extra payment in addition to the government scheme.
LEGAL AND HR
Enjoying the staff Christmas celebrations – A reminder for 2016! Each year we remind members about you and your staff enjoying your Christmas celebrations. Once again we remind members that the employer remains responsible for the well-being and safety of their employees during these celebrations. It is essential to make sure that employees abide by appropriate standards of behaviour and safety in order to avoid any employer liability in case things go wrong. Sexual harassment is one of the most common problems that arises out of the staff Christmas party. If an incident of sexual harassment occurs whether at the worksite or off site, if it is work-related then the employer can be held responsible. Make sure that a copy of the company policy on sexual harassment is well-known to all employees. Over indulgence in alcohol is generally the cause of Christmas workplace problems. Sometimes disagreements occur due to excessive drinking and they have been known to end up in physical fights.
Here are some tips to assist employers to manage the Christmas celebrations: • Tell your employees, in writing, that you want everyone to have a good time and that you expect them to behave responsibly. Warn employees that they should exercise caution in regard to the consumption of alcohol. Consider making cab vouchers available for staff to get home from the party or call for volunteer drivers amongst staff who don’t drink alcohol. • Do not allow anyone from your company to serve alcohol to staff, and advise bartenders not to serve anyone who appears intoxicated. • Make sure there are plenty of soft drinks available, and make sure that food is served. • Do not make the function compulsory, and don’t insist that staff have an alcoholic drink as part of their “networking obligations”. This could be seen as part of the job requirements and the employer may be liable if there is any accident on the way home. Providing your employees with a few simple reminders will ensure that everyone has a good time during their festive celebrations.
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eftpos is a great way to give your customers added value with their everyday purchases. The more cash they get out from your store, the less cash you will have on the premises, helping to reduce the cost and risk of doing business.
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LEGAL AND HR
Review of Queensland trading hours On 31 August 2016 QLD’s Palaszczuk Government established an independent review of QLD’s retail trading hours’ arrangements. The review is in response to concerns by MGA members and the community that QLD’s trading hours arrangements provide an unfair advantage to the National Chains and act as a disincentive to smaller business expansion, employment and growth. The Government appointed a Trading Hours Review Reference Group, comprising of MGA and other key business groups and unions to consider and report to the government on Queensland’s current trading hours’ regulatory framework. It is hoped that the Reference Group will make recommendations that will improve trading hours regulation to promote employment and economic growth while continuing to balance the interests of consumers, workers and small and large businesses. Following extensive engagement with the MGAQ Committee in Queensland, MGA filed a significant and well evidenced submission which endeavours to protect and promote the best interests of our industry as the national chains’ trading hours continue to expand across the state. As part of our submission, MGA engaged Factuality to conduct a survey of 996 Queensland residents comprising of a representative sample of the adult population across QLD. Factuality was engaged to examine all aspects of Queenslanders’ shopping habits and their satisfaction with several aspects of shopping in their local areas and to determine and rank the retailing priorities that Queenslanders believe their state government should focus upon in determining whether opening hours of large retailers should be altered in their local areas. In addition to its other findings, the Factuality report found that after considering the major related issues, Queenslanders
(outside the BCC) provisionally support extended trading hours for larger retailers by slim margin of 53% to 42%. However of this 53%, only 19% support extended hours without any conditions or caveats. The remaining 34% lean to supporting extended hours but would oppose them if the government cannot show why they would not lead to reduced competition or the consequent higher grocery prices. MGA’s submission was unequivocal when arguing that while the current legislative framework and previous decisions of the QIRC have significantly harmed the independent retail sector and provided the national chains with the unfettered capacity to harm the retail industry. MGA maintains that the independent retail sector can remain vibrant across the state by implementing the following changes: 1. Amending the Liquor Act to allow independent retailers to participate in the packaged liquor market; 2. Introducing a five year moratorium on the extension of trading hours for the national chains; 3. Only restricting the trading hours of the national chains and no other retailers including all MGA members; and 4. Only allowing government and not the QIRC to alter retail trading hours across the state. This position was devised in consideration of the fact that MGA members face a highly competitive environment in Queensland with a significant number of our members operating within 5km of a national chain store. As a result we believe that the opportunity to trade when the national chains are closed and participate in the packaged liquor market is of particular importance to our members. MGA is confident that the changes proposed in our submission will reinvigorate business confidence, create incentives for further investment, drive innovation, employment growth and inspire independent retailers to compete on a level playing field.
INDUSTRY GOLF DAY Date: Thursday 9th March 2017 MGA Independent Retailers and the Grocery and Liquor Association (GALA) is again hosting the Annual Industry Golf Day to help raise funds for the Reach Foundation.
Visit www.golfdays.com.au/gala2017 to register!
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LIQUOR WESTERN AUSTRALIA
LIQUOR NEWS Alcohol advertising ban on WA public transport mooted by dumped minister Helen Morton Alcohol advertising would be banned from buses and other stateowned public transport infrastructure under a proposal from Western Australia’s former mental health minister. Helen Morton said she had been planning to take the proposed ban to Cabinet before she was dumped as a minister earlier this year, and had now asked Transport Minister Bill Marmion to implement the policy. Mrs Morton said the government received about $7 million from advertising on buses and other transport infrastructure each year, with alcohol promotions responsible for $160,000. She said it was a double standard for the government to spend money trying to reduce problem drinking while at the same time profiting from alcohol promotions regularly seen by children. “[Alcohol] costs $730 million in taxpayer dollars [in WA] every year, but as a government we advertise alcohol on our own facilities,” she said. “This is about helping to close off alcohol advertising impacting on children and young people that cannot be switched off. It is there for them 24 hours a day, seven days a week. “If the government does not adopt this policy, I hope that all political parties will take this to the election.” The Parliamentary Secretary for Transport Jim Chown said processes
were already in place to ensure advertising was responsible, but indicated the proposal could be looked at. “I would assume at some stage in the future the [Public Transport Authority] advertising of alcohol will come under review and will be given consideration by a future government,” Mr Chown said. South Australia and the Australian Capital Territory have moved to implement similar policies, along with a range of jurisdictions around the world. Labor’s Upper House leader Sue Ellery said it was appropriate for the government to consider the idea if it was sending “double messages” by allowing alcohol advertising on its infrastructure. However, Liberal backbencher Peter Katsambanis said he thought the proposal would only make a “miniscule difference”.
New state manager for Liquor Marketing Group The Liquor Marketing Group have appointed Aidan Desmond to the role of NSW State Manager on a permanent basis. Aidan has been with LMG for almost 6 years, in which time he has undertaken roles including Business Development Manager, State Sales Manager and acting NSW State Manager. Aidan’s performance in each of these roles, but particularly his efforts in the past 4 months while leading the NSW team, has demonstrated his
experience and expertise to continue to advance the LMG NSW business on behalf of members. Aidan is responsible for the day to day operations and programs of LMG NSW, including team leadership and direction, and will be a member of the LMG Senior Leadership Team (SLT). Frank Palumbo has agreed to take on a new role of General Manager Retail Sales & Member Services in which he will provide strategic, marketing and
operational guidance to Aidan along with maintaining his responsibilities for the LMG Victoria business. Please take the opportunity to congratulate both Aidan and Frank. We look forward to the continuation in the improvement of the support which is provided to LMG members.
MGA national liquor update and Christmas drinks On Thursday 24th November Treasury Wine Estates hosted the MGA Liquor annual ‘National Liquor Industry Update’ meeting at their Southbank office Barrel Room, with over fifty independent retailers, corporate partners and industry suppliers attending. Addressing the meeting MGA Liquor President George Kovits was pleased to announce that “membership continued to grow nationally as independent liquor stores recognise the value of being a member of an organisation that fights for their growth and prosperity”. “During the fiscal year 2015/16 MGA fielded nationally a total of 6,243 member call queries, an average of 24 calls per day and engaged with members for 5,292 man hours, dealing with issues regarding legal & HR, training, advocacy, membership services and administration, all done by our in house support team of lawyers and support staff. Here at MGA, we do not outsource our support services which saves our members any additional charges”. As a national organisation MGA continues to engage with government at both a state and federal level advocating on issues affecting all members, such as; • Successfully lobbied the ACT government for the threshold of the proposed 25% liquor license fee for off premise outlets to be lifted from annual purchases of $1m to $3m per year, with a 4 year freeze on any further increase • Supported the recommendation to the NSW government by the Callinan review to lift the 10.00pm trading restriction of packaged liquor outlets • Submission to the Fair Work Commission on penalty wage Rates to be reduced after 6.00pm on weekdays and Sundays • Re introduction of online RSA training in NSW and Victoria Key note speaker was Mr Tony Leon with over 36 years of liquor retailing experience, starting with Dan Murphy in 1980 and voted by his peers as one of the 21 most influential liquor identities from over 73 nominations by the Drinks Trade Magazine. Tony, known as a strong negotiator and a respected innovator in liquor retailing, addressed the meeting by sharing his knowledge and insights of the packaged liquor retail market. Tony’s message is that the industry needs a strong and diverse independent retail sector. The MGA liquor committee would like to thank Treasury Wine Estates and all the attendees for supporting this major industry event.
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Jos de Bruin – MGA, Bernard Hughes – ALM, George Kovits – MGA Liquor, Chris Christofi – LMG
Nick Cook – FoodWorks, Michael Reddrop – Reddrop Group, Ryan Barrington – Windsor Cellarbrations, Tony Ingpen – IGA Mt Evelyn
Bernard Hughes – ALM, Darren Campbell – Mitchelton Wines
Tony Leon – Steve’s Liquor
Joseph Vitale – Cellarbrations Blackburn, Peter Yeoman – The Wine Co, Steve Sellars – MGA, David Seymour – De Bortolli, Trent Touhy – Asahi
John Rodriguez – AML, John Charleston – Cellarbrations Swan Hill, Alex Gianetta – Cellarbrations Strathmore, Jeremy Goodale – Bacardi, Angelo Gianetta – Cellarbrations Strathmore
Cricket Australia and DrinkWise partner on moderation Cricket Australia and DrinkWise will partner for the first time this summer, promoting responsible alcohol consumption and encouraging cricket fans not to miss a moment of the action. Through the DrinkWise campaign ‘You won’t miss a moment if you DrinkWise’, cricket fans will be reminded of the benefits of pacing themselves and drinking in moderation. The campaign has proven effective when integrated into other sporting events, with independent research commissioned by DrinkWise finding that 76 percent understood that drinking in moderation would ensure they didn’t miss a moment, and close to 6 in 10 citing a change in their attitude to drinking at the event as a result of the campaign. Cricket Australia CEO James Sutherland said: “We are very pleased to partner with DrinkWise in this campaign, which will supersede our usual summer message, ‘Know When To Declare’. “Cricket was the first sport to actively encourage moderation in alcohol consumption in 2009, when we launched that campaign with the support of our commercial partners in this sector. “It’s pleasing to see DrinkWise will now be able to co-ordinate that message across a wide range of sports. “We are also into our fourth year with Red Frogs Australia, a support program for young people which provides a positive environment for them. “At each day of the Commonwealth Bank Test series and the Victoria Bitter ODI matches this year, Red Frogs volunteers will again offer cups of water, sunscreen, icy poles and red frog lollies to fans, as well as spraying the crowd with water when heat becomes an issue.
DrinkWise CEO John Scott welcomed the partnership with Cricket Australia and the ongoing collaboration across industry to encourage responsible drinking behaviour during the summer of cricket. “We’re excited to bring DrinkWise’s campaign to cricket venues and remind fans that they can enjoy a drink without going too far and missing the great moments that cricket has to offer.” Cricket Australia and DrinkWise will also communicate the messages through social media and broadcast advertising during all forms of the game, reminding those at the ground or watching the telecast to enjoy all the great cricket moments by moderating their alcohol consumption. You won’t miss a moment if you DrinkWise is an integrated initiative supported by an alliance of industry, event sponsors, media and sporting codes who have come together with DrinkWise to present a unified approach to affirming the importance of drinking in moderation, and getting the facts about alcohol consumption out into the public arena. This initiative marks an industry first, conveying a unified moderation message which encourages sports fans, music lovers and festival-goers to drink responsibly and ensure they don’t miss the most memorable moments of an event.
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NEW ZEALAND WINE PRODUCER OF THE YEAR 2016
INTERNATIONAL WINE & SPIRIT COMPETITION
Matua has been awarded the prestigious title of ‘New Zealand Wine Producer of the Year’ at the 2016 International Wine & Spirit Competition (IWSC), announced in London on 16 November 2016. The winery, which produced New Zealand’s first Sauvignon Blanc in 1974, entered 12 wines and incredibly they all received medals. The IWSC is recognised as the most prestigious and respected wine and spirit competition in the world. This is the second time Matua has won this award, having also been celebrated as New Zealand Producer of the Year at the 2012 IWSC.
www.matua.co.nz December 2016 - Edition 8
Matua named New Zealand Wine Producer of Year Matua has taken out the top prize for all New Zealand wineries at one of the world’s most prestigious wine shows, the International Wine and Spirit Competition (IWSC), winning the trophy for New Zealand Wine Producer of the Year, announced in late November in London. Matua, which produced New Zealand’s first Sauvignon Blanc in 1974, has a medal tally incorporating the Trophy alongside 12 medals, including Gold Outstanding for the 2013 Matua Single Vineyard Pinot Noir, five Silver Outstanding medals, four
Silvers and a Bronze; outperforming all other New Zealand wineries at the Show. This now means that Matua has received the title of NZ Wine Producer or Winemaker of the Year at a major international wine competition four years consecutively – 2013, 2014, 2015 and 2016 – after having already been bestowed this honour at the 2013 and 2015 New Zealand Royal Easter Show Wine Awards and the 2014 New Zealand International Wine Show. Matua was up against Giesen, Kim Crawford and Brancott Estate for the coveted 2016 IWSC Trophy.
Greg Rowdon, Matua Chief Winemaker
Greg Rowdon, Matua Chief Winemaker is absolutely thrilled with the result. “More than ever New Zealand is producing wines that stand up on the global stage and to be acknowledged as the IWSC New Zealand Producer of the Year is testament not only to the quality of Matua
wines but also the breadth of our portfolio and the consistently high standards we are achieving,” he said. “We entered 12 wines and received 12 medals – so we are so pleased to have a 100% strike rate. It wasn’t a case of one particular wine outshining the rest either, but our portfolio as a whole consistently performing well, which is our ultimate aim,” Rowdon said. Founded in 1969, the IWSC is widely recognised as the original, the most prestigious and the most respected wine & spirit competition in the world. Receiving entries from nearly 90 countries worldwide, the Competition uses a two stage judging process taking place over a six month period to ensure the IWSC produces the industry’s most credible results.
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George Kovits MGA Liquor Committee President George has been involved in the national wholesale marketing and distribution of liquor products for more than 36 years. Having worked in senior national and state roles with companies such as Wynn’s, Penfolds and CUB, he went on to be co-founder and executive director of Concorde Liquor Distributors, later pioneering the launch of Independent Distillers into the Australian market, before moving into retailing in 1997. George has served on the committee and as chairman of the Wine Slashers group and as president of the LSAV.
Supporting the prosperity of independent retailers Since absorbing the Liquor Stores Association of Victoria (LSAV) in July 2008 and forming a national MGA Liquor Committee, MGA’s 1,200 national, financially independent liquor store members have had a stronger voice than ever when dealing with government at both federal and state levels.
GA is the peak national industry employer organisation, dedicated to supporting the current and future prosperity of its members – independent liquor and licensed grocery stores. Reporting to the Australian Securities and Investment Commission and the Fair Work Commission, MGA and MGA Liquor have four core support pillars that provide a rich source of vital day-to-day ‘back-of-house’ assistance for members. These are: UÊ Legal and HR. UÊ Training and compliance. UÊ Industry advocacy (state and federal). UÊ Industry and community connection – lifting the profile of our industry sector. MGA believes a strong, resilient and diverse independent retail sector is crucial for any trading market to be truly competitive and has worked tirelessly towards that goal. To create a more competitive environment, in August 2012 MGA released a 49-page report, ‘Let’s have fair competition’, which was presented to ACCC Chairman Rod Sims, 45 federal ministers, shadow ministers and 200 federal politicians. This was followed up in 2013 with ‘Let’s have fair competition – finding a solution’, which was sent to more than 400 federal politicians. MGA’s submission to the Government’s commissioned Harper root-and-branch review of competition law in Australia, advocated strongly for amendment to Section 46 of the Competition and Consumer Act to include an ‘effects test’. As stated by Prime Minister Malcolm Turnbull, an effects test will prohibit big businesses with substantial market power from behaving in such a way that has the “purpose, effect or likely effect” of substantially reducing competition without
MGA Liquor Committee: Back row: Jos de Bruin (MGA CEO), Peter Karkazis (ACT committee), Darrian Williams (Brown Forman), Andrew McNamara (Brown Forman), John Rodriquez (ALM committee), Jeff Harper (IGA committee), Tony Ingpen (IGA committee), Nick Cook (Foodworks committee), Michael Reddrop (Reddrop Group committee), Tony Leon (Steve’s Liquor committee). Front row: Bernard Hughes (ALM), Michael McShane (Brown Forman), Angelo Giannetta (Cellarbrations committee), Frank Palumbo (Bottlemart committee), Alex Giannetta (Cellarbrations), George Kovits (MGA Liquor Committee President).
any economic justification. With the re-election of the Coalition, Treasurer Scott Morrison announced the new legislation to the federal parliament’s upper house on September 5 and stated there would be a four-week consultation period led by the ACCC. MGA is optimistic the legislation will be adopted and the bill passed, which will be a great step forward for all members and small to mediumsized businesses. Other wins for members have been: UÊ Repealing of the carbon tax. UÊ Capping petrol shopper dockets. UÊ Red-tape reduction. UÊ ACT Government abandonment of a flat 25 per cent licence fee increase for all offpremises with annual liquor purchases of $1 million-plus. UÊ Advocating for the introduction of packaged liquor as a new category of licence in South Australia. Key advocacy areas on the go are: National: UÊ Sunday penalty rates. UÊ Fair competition laws. N O V E M B E R 2 016
UÊ Opposing deregulation of trading hours (Queensland, SA and WA). UÊ Tobacco. UÊ Inappropriate planning and development. UÊ Plastic bag bans. UÊ Container deposit legislation (ACT, NSW, Queensland, Victoria and WA). State: UÊ Packaged liquor licences for supermarkets (Queensland). UÊ Licence fee and trading hour anomalies (Victoria). UÊ Limited packaged liquor licences (Tasmania). The national MGA Liquor Committee comprises a diverse and experienced group of packaged liquor store owners and industry personnel, representing brands such as Cellarbrations, Liquor Legends, Local Liquor, Duncan’s, The Bottle ‘O’, Steve’s Liquor, IGA Liquor and FoodWorks. It is committed to the growth and prosperity of the independent liquor sector, its members and associate members.
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Around the World Half of alcohol sold in Scotland ‘below minimum price’ At least half of the alcohol sold in Scotland does not meet impending minimum pricing legislation, a survey suggests. More than two-thirds (69%) of the spirits currently sold fall below the 50p per unit threshold, according to analysts Nielsen. They assessed till sales data from nearly 1,200 Scottish stores. The Scottish government has said it plans to bring in minimum price legislation “as soon as possible”.
Support for the DrinkWise schoolies campaign MGA Liquor and member stores throughout the east and west coast holiday regions in Victorian have partnered with DrinkWise Australia to launch their annual campaign ahead of the schoolies holiday period. MGAL wish to thank these member stores for agreeing to promote the message of responsible drinking by displaying fridge decals, shelf wobblers and utilising branded message wine bags during the schoolies period. For more information regarding the DrinkWise messages that have been implemented to educate young adults on the proper ways of consuming alcohol visit https://drinkwise.org.au/
According to Nielsen’s survey more than two-thirds of beer (67%) was priced below the minimum 50p per unit threshold, followed by 51% of cider. Blended Scotch on average would need to rise in price by 20% to meet the threshold, while vodka will have to go up by 16.3%, according to the study. By contrast, just 3.4% of wine sales made during the survey would be impacted by the new legislation. Nielsen senior client manager Marika Pratico said: “Wine is, by far, the least impacted and so has the most to gain from minimum pricing. She predicted there could be an increase in cross-border alcohol shopping among the Scottish to England and Ireland, where prices would be cheaper, “mirroring what many Britons already do with the annual Calais run”. In October the Court of Session in Edinburgh ruled against a challenge led by the Scotch Whisky Association (SWA), which argued that minimum unit pricing was a breach of European Law. The SWA is considering whether to appeal the decision at the UK Supreme Court in London. MSPs passed legislation at Holyrood in 2012 to bring in minimum pricing, which would initially be set at 50p per unit.
TRAINING Australian Apprentice (Trainee) of the Year Award 2016 Certificate IV in Retail Management; Runner-up: Josiah Clayton It is with great pleasure that MGA can share the exciting news that one of our trainees, Josiah Clayton, has received the runner up award for Australian Apprentice (Trainee) of the Year Award. The award is presented to an individual who has undertaken a traineeship and has been outstanding in all aspects of their training. Josiah, or Joe as he is called, was inspired by his first manger to make a career in the retail sector. Joe one day hopes to start his own business that helps out troubled teenage boys growing up without a father. In the past Joe has been bestowed with other awards such as the 2015 Achiever of the Year in South Australia, given for high excellence in his area of work. In April 2016 the department he manages won Best Fresh Produce for South Australia. What a great achievement for such a young man who shows such enthusiasm for his job.
Josiah Clayton with his Award
It was always a pleasure to assist and guide a person with such passion for the retail sector during the course of his training. Congratulations Joe!
Mental health and bullying Bullying and mental health issues in the workplace are two related topics that we usually find are too hard to deal with and consequently sweep them under the rug. The Australian Bureau of Statistics indicated that nearly half of Australians will experience some form of mental health issues in their lifetime. Even though there are various legal exposures that need to be carefully considered, there are also practical solutions that can be implemented in the workplace to reduce the risks associated with workplace bullying and mental health. Although bullying can take on many different forms, it is generally considered to be consistent behaviour that is victimising, humiliating, intimidating or threatening in nature. Some of these may include: • Name calling and derogatory comments • Creating a hostile work environment • Setting unreasonable timelines • Physical contact or assault • Practical jokes
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In saying this there are exceptions to the rule as bullying will not include: • Reasonable management actions carried out in a reasonable manner or • One off instances of rudeness, insensitivity or other inappropriate behaviour There are some solutions that the business should implement to manage the risks associated with workplace bullying and mental health. These may include: • A written grievance and bullying policy • Ensure the policies are implemented • If you receive a complaint it should be investigated • Have a conversation to discuss any issues • If a single poor behaviour is an issue follow it up straight away • If an employee has disclosed a mental health issue then managing it is just as important as addressing any allegations of bullying.
TRAINING NEW SOUTH WALES
Karellas employees obtain their NSW Food Safety Supervisor certificates A new supermarket brand – Supamart, owned by the Karellas Group, opened its doors in September. It is in the newly restored heritage-listed Rozelle Tramsheds in Sydney’s Harold Park. The 2440sqm Supamart is offering a one-stop shopping experience, concentrated on fresh local food. The Supamart concept is all about tailoring and offering to what the locals need whilst focusing on fresh produce and quality products at great prices. Supamart offers fresh produce, a delicatessen and seafood counter, onsite butchery, bakery and a dedicated health and wellbeing section alongside valuepriced supermarket staples.
Completing their assessments
To assist in getting the new staff trained in an area that the store promotes was very important. Christine Potter (trainer and assessor) facilitated NSW Food Safety Supervisor training within the new store. The staff that attended the course completed all the required assessments to receive the NSW Food Safety Supervisor certificate that is required under state regulations. It is very important that all stores adhere to the food regulations set by the state or territory. Part of this is to ensure that all food safety supervisors hold a current and valid certificate.
Glitterbug hand washing exercise
Certificate IV Retail Management Bob De-Simone – Inverloch FoodWorks Bob De-Simone is employed at FoodWorks in the lovely seaside town of Inverloch. Bob has recently completed the Certificate IV Retail Management qualification. Bob has had many jobs prior to commencing with the team at the Inverloch store. Not having any prior training or experience in retail, the Certificate IV in Retail Management training was very valuable for Bob to get an insight to the functions of a retail supermarket. This has assisted him to succeed to become a vital member of the team. Developing his management skills has allowed Bob to take on a managerial role. Bob had the opportunity to attend the FoodWorks conference in Thailand. He came back from the conference full of inspiration and ideas to implement in the store.
Fresh fruit and veg section as you walk into Supamart Harold Park
Cheese selection in Supamart Harold Park
For more information on the Certificate IV Retail Management qualification please call the training team on 1800 888 479, option 2.
NATIONAL ONLINE COURSES MGA delivers training and Responsible Service of Alcohol compliance solutions specific This course deals with the skills and knowledge required to the needs of independent to satisfy the requirements for responsible service of alcohol under state/territory legislation. All persons retailers. We have a range of involved in the serving and sale of alcohol must training and compliance solutions complete this. readily available for members. *Log in to our website with our 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
RSA – WA, QLD, SA, NT
Duration: 3 hours Member Price: $45
RSA – ACT
RSA Refresher – ACT
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.
Duration: 2-4 hours Member Price: $105
RESPONSIBLE SERVICE OF ALCOHOL COURSES
Food Safety Supervisor & Monitor Food Safety Program
Do you have 10 or more staff to train in RSA? Contact us to see if we can organise an instore course.
Duration: 6.5 hours Member Price: $180
December 2016 - Edition 8
*Available in MELB Metro and surrounds.
Visit www.mga.asn.au to see our range of 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 Store Security
Duration: 30 minutes Member Price: $25 Manual Handling
Duration: 60 minutes Member Price: $25 Workplace Violence, Bullying & Harassment
Duration: 30 minutes Member Price: $25 Hazard Identification & Risk Management
Duration: 40 minutes Member Price: $40
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 Food Safety Supervisor course for NSW: $150 Food Safety Supervisor refresher course 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 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.
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