Ir december 2017 lr

ISSUE 8 | DECEMBER 2017

YOUR INDUSTRY NEWS PROVIDED BY MGA INDEPENDENT RETAILERS

OUR MEMBERS: “NEVER STANDING STILL” •

MODERN • INNOVATIVE • FORWARD THINKING

National Support Office

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1800 888 479

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www.mga.asn.au

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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.

CONTENTS 5 CEO welcome

INDUSTRY NEWS 6 Measurement – it rules

MGA NATIONAL

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

RETAILER DIRECTORS Rodney Allen (President) – Victoria Graeme Gough – 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: jos.debruin@mga.asn.au

CORPORATE PARTNERSHIP AND MEDIA SALES Steve Sellars 0407 399 240 E: steve.sellars@mga.asn.au

EDITORIAL AND PRODUCTION

E: courtenay.hirst@mga.asn.au

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7 Swimming sensation Emily Seebohm joins the Bulla family 8 Foodland 20/20 conference and dinner 10 Moving Australia’s eftpos to digital 11 Preston IGA Como WA – never standing still!

12 Harold Park Tram Sheds Supamart – Forest Lodge 15 COSBOA council meeting, council dinner and board meeting 15 Meetings at Parliament House 17 75th Anniversary of the “Forgotten People” speech by the then Prime Minister Robert Menzies on 22 May, 1942

19 MGAQ committee 19 MGA WA committee 20 MGA TMA Business Luncheon and Launch 22 MGA Business Breakfast and AGM – Sydney

LEGAL AND HR 25 The demise of Enterprise Agreements?

26 Payment upon termination of employment 27 Enjoying the staff Christmas celebrations – a reminder for 2017!

27 Can I use “split shifts”?

29 Conversion from casual to permanent employment status

LIQUOR NEWS 30 NSW Container Deposit scheme debacle 31 Retailer compliance vigilance required over Christmas and New Year!

35 MGA meets Victorian Shadow Minister for the Environment 35 Get ready to renew your Victorian liquor licence for 2018 36 East Ringwood IGA – 40 years 39 SA Government passes first major change 39 Introducing Australia’s new aperitif, A’tivo – the spritz with a twist

TRAINING 41 NSW Food Safety Supervisor training 41 Christmas / Summer: casual staff 41 Slips and falls in the workplace

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CEO REPORT

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CEO WELCOME Welcome to the final Independent Retailer magazine for 2017 First and foremost best wishes for a brilliant Christmas and new year trading period. Hopefully all members will make the time to be together with their families on Christmas Day and to enjoy as much of the festive season as possible.

Looking back over the past 12 months I am sure many members will wonder how they managed to get through what has been a very challenging and busy year of trading. Not only has bricks and mortar competition intensified, with more and more supermarket and liquor store floor space being added, particularly in WA and SA, but so too has the threat of online disruption become a reality with the entrée into the Australian market place by Amazon.

Despite this adversity, independent supermarket operators around Australia continue to invest heavily back into their businesses by refurbishing, renovating and developing greenfields sites all producing world class retailing results, delighting customers. There are many glaring examples in each state of world class independent supermarkets that customers just love to shop in. So what are customers looking for? That’s the trick – knowing the population around your store. Who are your customers and what are they looking for?

As Foodland CEO Con Sciacca recently said, “independent supermarket operators comply with their brands promotional programs but their real strength is for every independent retailer to bring to their market their own unique retailing experience” ...in other words what are you famous for!

Who would have thought 18 months ago that we would have a national energy

price crisis to the level we have had this year? Since February 2017 to November 2017, MGA members electricity prices alone have increased by over $100m. This increase has been a consequence of many retailers coming out of very affordable expired contracts and having to renew at new and much higher rates. This is unsustainable as we have strongly indicated with the Minster for the Environment and Energy Josh Frydenberg as well as in the recent ACCC Electricity Price Increase Inquiry. MGA members businesses are at a frightening risk level of rendering themselves as unviable if prices do not decrease soon.

We simply don’t have the margins to absorb these cost increases, which means our only pressure valve is to release staff members. We have indicated to the Minister this could cause more than 2200 job losses around Australia.

On a more positive note MGA is very proud to say that this calendar year has yielded some very good results at a State and Federal government level that will benefit members by helping to reduce costs to do business whilst striving for fairer competition.

At a Federal level, in October 2017, Competition Law reform has been legislated in s46 of the CCA with the inclusion of the “effects test” – “effect or likely effect of substantially lessening competition”, our next project will be to propose a no-cost orders process for “Access to Justice”, a reduction of Sunday penalty rates from 100% to 50%, a reduction in Company Tax – from 30% to 27.5%, the strengthening of Unfair Contract Terms provisions and the enormous work to highlight Illicit tobacco through public awareness programs that is costing our industry sector $200m in sales per annum. MGA is involved with the ACCC on many fronts, for example, opposing the BP application seeking authorisation for Caltex service stations

to offer 4c (or more) shopper dockets & Woolworths Rewards cards. MGA has been, and continues to be, a very active member of a number of key regulatory bodies. This enables MGA to represent members views and be involved. These include; ACCC – Small Business and Franchise Council; COSBOA – Council member and Director, ASBFEO – Kate Carnell. MGA is a member of 4 working groups, the Black Economy Taskforce and the National Measurement and Standards, Institute – unit pricing and weights, the Queensland Small Business Consultative Council, the Victoria Liquor Control Advisory Council and the ACT Liquor Control Council.

At a State level, to name one significant achievement, MGA together with QLD members has been very effective negotiating with the QLD government a 5 year moratorium for no further changes to QLD trading hours including 21 regions where Sunday trading is for exempt stores only. There is also a change to staffing levels in exempt stores from 20 to 30 staff members in a single store and in multi stores from 60 to 100. In Victoria, payroll tax for country and regional members has been reduced from 4.85% to 3.65% with the threshold increasing from $550k to $650k. In SA, packaged liquor legislation for supermarkets is progressing in the parliament and is ready for regulations to be developed to name a few.

MGA’s Board and the team look forward to supporting all members in 2018. We thank you for being our members and we take pride in fulfilling our higher purpose which is to “Make Life Easier”.

Best wishes and good trading.

Jos de Bruin, CEO, MGA Independent Retailers

www.mga.asn.au

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INDUSTRY NEWS

Measurement – it rules MGA is an active and contributing committee member of the National Measurement Institute. MGA members will need to be aware that a new national measurement policy statement, along with the review of Australia’s measurement laws announced by Assistant Minister for Industry, Innovation and Science Craig Laundy MP on the 20th November 2017 will touch the lives of

all Australians with benefits for consumers, business and industry alike.

“Measurement plays a critical role in the Australian economy and in our science, technology and innovation capabilities,” Mr Laundy said.

“In simple terms, a strong measurement framework protects businesses and consumers by ensuring we all get what we pay for at the cash register.

“This policy statement will help ensure regulations are easier for industry to comply with, and that consumers can have confidence they are receiving what they pay for.

Craig Laundy MP with Jos de Bruin

December 2017 – Edition 8

“Every time we buy a litre of milk or export a tonne of wheat, we rely on our national measurement system to

guarantee that a litre is, in fact, a litre, and a tonne is a tonne.

“The statement provides a benchmark and ensures the measurement framework supports the needs of Australia’s economy, industry and society today and into the future.”

The National Measurement Institute will carry out a review of measurement legislation to ensure that Australia’s national measurement laws are equipped for the future. This is the first comprehensive review of measurement legislation since the commencement of the National Measurement Act in 1960.

“The world has changed since 1960. Measurement technology has advanced along with advances in science, technology and innovation. Every aspect of

life, every sector of industry depends on ever increasing levels of measurement.

“From nanotechnology to drug testing in sport and weighing tomatoes in the supermarket, our measurement legislation needs to have the flexibility to deal with a modern society and an increasingly digital economy. “The Australian government is cutting red tape and actively partnering with industry to advance measurement science,” Mr Laundy said.

Minister Laundy encouraged all industry stakeholders and community groups to contribute to the review which MGA will carry out in accordance with the terms of reference.

Options for reform will be presented to government by 2020.

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INDUSTRY NEWS

Swimming sensation Emily Seebohm joins the Bulla family Promoting her healthy lifestyle with Cottage Cheese Bulla Family Dairy (Bulla) is proud to announce that Australian swimmer and Olympic gold medallist, Emily Seebohm will be joining its extended family as an ambassador.

25-year-old Emily, who was recently nominated for 2017 ‘The Don Award’, has competed for Australia at a number of Olympic and World Champion events over the last decade and currently holds the Australian record for 50m, 100m and 200m backstroke and is the current 200m world champion for backstroke, Emily is also the current world champion for the 200m backstroke, after her recent success at the World

Championships in Budapest.

Emily’s latest endeavour will see her showcasing her healthy lifestyle as part of her new ambassadorship role for one of Australia’s oldest family owned dairy companies, promoting the Bulla Cottage Cheese range.

After suffering some health issues last year that impacted her performance at the 2016 Rio Olympics, Emily has been working to overcome these challenges. She will be sharing her wellbeing lifestyle and journey to the 2018 Commonwealth Games in Queensland as she whips up delicious, healthy salads and recipes promoting her proteinrich diet.

The World Championship gold medallist and Australia’s

backstroke queen is thrilled to be joining the Bulla family. “Bulla Cottage Cheese has always been a big part of my daily diet due to it being a good source of protein and its overall versatility. I use it in everything, from smoothies to salads, it’s my go-to ingredient!

“Becoming an ambassador for Bulla’s Cottage Cheese range was a natural fit and I can’t wait to partner with an authentically Australian, family owned and run business that shares similar values to me.”

Born in Adelaide and growing up in Brisbane, Emily’s mother is a swimming teacher who kick-started her early years in the pool, while her father is an accomplished footballer in the SANFL. Emily won the hearts of the nation whilst competing

Emily Seebohm in Rio and taking out the silver medal in the 4x100m medley.

“We’re thrilled to welcome Emily into the Bulla family and are looking forward to seeing her showcase the relationship between healthy food and healthy living through the promotion of our Cottage Cheese range, says Nick Hickford, Bulla, General Manager – Marketing & Innovation. “We look forward to Emily bringing her wonderful energy, passion and drive to the Bulla team.” www.bulla.com.au

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FRESH THINKING

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K REFRIGERATION GROUP AUSTRALIA PTY LTD

W krefrigeration.com E salesaus@krefgroup.com T 1 300 225 665

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INDUSTRY NEWS SOUTH AUSTRALIA

Foodland 20/20 conference and dinner On Friday 17th November the Foodland Group held its annual 20/20 Foodland conference and supplier awards dinner at the prestigious Adelaide Convention Centre. Officially opened by SA Premier Jay Weatherall, this was a terrific event attended by Foodland retailers, managers, staff, industry stakeholders and many national and local suppliers. The content of the conference itself was insightful and inspiring – congratulations to Con Sciacca and the Foodland team for the seamless organisation of this event.

Australian Independent Supermarket operators can be very proud of the Foodland Group of retailers in South Australia. Three years ago the group recognised there would be many trading and business challenges confronting it with the entry of Costco and then ALDI into the SA market place as well as the heightened competition from Woolworths and Coles.

Whilst these overseas and large chain retailers can justifiably be recognised as a true threat to SA businesses, the Foodland Group, led by CEO Con Sciacca, together with a skilful management team and leading business operators, decided to shift their collective paradigm. They invested into strong marketing and promotion programs, further improved store presentation and quality of fresh departments, local products and national brands, many retailers embarked upon extensive renovations, refurbishment programs and the development of greenfields sites.

All these activities significantly added to the already strong deep, trusting and loyal customer base that Foodland has and continues to enjoy.

Foodland is driven by a number of core values that are intrinsic to the success of each Foodland business in each community. These values include being trusted, reliable and honest, promoting a fun and healthy lifestyle, caring about the community, providing great healthy food, being competitive and uncompromisingly, fiercely independent.

The Foodland Group was founded in 1962 and currently enjoys a 26% SA market share which is testimony to the Foodland brand having the highest brand equity of any independent brand in Australia. The 120 Foodland stores, employ over 9,000 employees and in adhering to their core values, from owners through to staff, have won the prestigious and sought after Canstar Award for the Foodland brand being ranked the number one recognised brand in Australia by consumers. Awards are no stranger to the Foodland Group as Roy Morgan Research has also found in the past recent years. Con Sciacca, the team at Foodland and the Board are certainly not sitting on their hands, as there are plans to open 24 new stores by 2020 and there will be a focus on bringing to the SA market, unique retail experiences in every store.

Congratulations Foodland!

Foodland CEO Con Sciacca

Bakery and Fresh Supplier of the Year – Goodman Fielder

Con Sciacca, Sales Executive of the Year Georgie Howman and Roger Drake

Supplier of the Year – Mars Petcare

December 2017 – Edition 8

INDUSTRY NEWS

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NEW

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INDUSTRY EVENTS

NATIONAL

Moving Australia’s eftpos to digital

By Mark Rayner, eftpos Chief Commercial Officer It’s an exciting time for eftpos, Australia’s domestic debit payments network, and in payments generally. It’s exciting because we are making the changes necessary to move eftpos into the digital world at a time when Australians are moving to a cashless economy.

In particular, debit contactless payments are increasing at a rapid rate and there are no signs that this is going to slow any time soon.

To be part of the digital and contactless revolution, eftpos needed to bring a much-loved and trusted Australian icon – eftpos CHQ and eftpos SAV – to consumers on new platforms with all of it’s attributes, including security, convenience and great value for consumers and merchants.

That meant catching up on decades of change in just a few short years.

So what is the eftpos story and why is it important to move into digital? eftpos was introduced in Australia more than 30 years ago – one of the first of its kind in the world, making it possible for Australians to make electronic transactions, securely and conveniently at point of sale.

The network was not centrally managed, making any significant change slow and costly. So change didn’t happen.

Fast forward more than 20 years, and eftpos the company was formed in 2009.

Why? To provide focus on upgrading the network to ensure that eftpos survived and continued to promote competition in the payments market, and to bring the network up to date by making eftpos available on platforms like contactless, online and mobile.

But there was a lot to be done. For example, when the company formed in late 2009 – it was almost 20 years after technology like online payments and

December 2017 – Edition 8

contactless technology first emerged.

So we faced a major challenge not just to catch up, but also to build platforms to compete in the future. To be nimble enough to meet consumer and merchant needs.

It was a long road to travel to enter the world of digital but we are now in it, we have arrived.

In the past month we’ve launched eftpos on two mobile platforms, only about two years after our competitors launched in this market. Mobile payments is an area we expect to grow very rapidly in the near future, and it’s important that eftpos is there to increase choice.

other types of transactions for our members, such as ATM transactions. And it has given us the ability to build new services for our members.

For example, we have launched Australia’s only domestic TSP – generating and processing Payment Tokens in place of sensitive card numbers – offering secure digital payments on mobile and other platforms, like online.

The eftpos Settlement Service that we launched earlier this year that enables the centralised settlement of CHQ and SAV transactions processed via the eftpos Hub.

So the 20 year gap became two years, and now we have the infrastructure in place, we are getting faster, and there are more announcements to come soon.

Recently we launched the new eftpos Disputes and Chargebacks service which helps our members resolve disputed eftpos transactions faster and more simply, supporting a better consumer experience.

What have we done in order to bridge a 20-year gap in a few short years?

With the support of our members, we developed our own contactless Tap & Pay capability and have already rolled out more than 22 million multi-network chipped cards and almost 2 million eftpos-only chipped cards.

While disputed transactions and fraud rates are low on the eftpos network, it is important that when a consumer decides that they want to dispute an eftpos transaction, there is an effective tool in place that facilitates the banks’ consistent and prompt resolution of the issue; maintaining consumers’ peace of mind.

eftpos contactless technology has also been rolled out to hundreds of thousands of POS terminals across the nation, covering about 86 per cent of eftpos transactions at the time of writing, with the rest to follow shortly.

Where to from here?

Our new platforms provide eftpos with the tools to be nimble and work with the industry to build new products and services quickly and cost effectively.

We’ve also built a centralised switch in record timeframes – the eftpos Hub – connecting our member financial institutions and member merchants. This enables us to make changes centrally – efficiently and cost-effectively and implement regular, consistent software updates and releases across the industry.

The Hub is now processing around 5 million transactions a day and it has performed with 100% reliability to date.

Now our rails can be used to process

We are now entering the digital market securely and purposefully – minimising exposure for the industry and consumers to the inherent risks of some current digital models. While also cementing our values – low cost, accessibility, security in the new digital context.

We can move fast in this market, with regular release drops and work with our members to tailor products for local needs. We’ve come a long way in a short time and we are now ready to compete in an increasingly digital world.

INDUSTRY NEWS

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WESTERN AUSTRALIA

Preston IGA Como WA – never standing still!

In the March 2017 edition of MGA Independent Retailer, MGA reported that 500sq metre Preston IGA in Como WA had embarked upon and completed a wonderful refurbishment that exuded a “wow” factor and delighted local customers – sales went through the roof with the additional range and uniqueness of the fresh and grocery offer that was able to be accommodated.

Not wishing to be complacent, store owner Pierre Sequira and General Manager Ashley Crannenberg decided after a few months that there need to be a further improvement made to the delicatessen. Whilst the deli provided a

very good range of products, it was time to go to the next step.

colourful and flavoursome meals being produced in the store.

Knock out a couple of walls, move the staff room and storage areas, expand the kitchen area within the deli with new commercial cookers and ovens and employ a professional chef.

Customers are loving the variety of the foods and the instore ambience that beautifully freshly prepared and cooked gourmet meals create in the store.

With the new chef on board, the Preston IGA store deli has now been transformed to include an exciting whole fresh meals and gourmet foods solution for at-once consumption for the many time poor customers in the area. New display cabinets and fridges have been installed to accommodate the many

Sales of the overall store have again increased – this is again testimony why members around Australia must be constantly vigilant to commit to reinvesting back into their stores to continuously delight customers and keep the competition at bay.

Congratulations to the team at Preston IGA at Como WA.

Before the renovations

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INDUSTRY NEWS

NEW SOUTH WALES

Harold Park Tram Sheds Supamart – Forest Lodge The Karellas family had a vision three years ago to create a new state of the art supermarket that would cater for the needs and aspirations of a growing and lifestyle conscious local population.

Formerly the old tram sheds just next to what was the Harold Park Trotting track, there is now a thriving stylish local shopping and dining precinct. New

L-R: Chris Gunn Store Manager with MGA Board members Grant Hinchcliffe, Debbie Smith, Steve Miller, Chris dos Santos, and Mick Daly

December 2017 – Edition 8

housing and apartment developments have continued with the local population increasing significantly in the past 2 years.

Last September this supermarket, managed by Chris Gunn, completed its first 12 months of trading and has proven to be everything the Karellas family, the store management and staff thought it could be. Customers are delighted with the amazing range of fresh foods, non-allergenic foods, gourmet products and general grocery items on offer. This coupled with exceptional customer service is a constant

that draws customers back into the store week after week.

This 1400 square metre store, boasting pristine concrete look flooring, stocks over 20,000 skus and has allocated more than 40% of the floor space to fresh foods comprising an extensive range of high quality fresh produce, a bakery department offering consumers crispy bread, pastries and cakes, a dedicated instore butcher offering 5 week old Dry Aged hung beef along with an 11 metre meat section and a well-stocked fresh fish section.

INDUSTRY NEWS

The 20 metre delicatessen, along with a rotisserie department offers consumers a wide selection of small goods and meals solutions to satisfy the very busy time poor local population.

The dedicated cheese bar located in the centre of the store, has an extensive range of local and overseas cheeses and is the envy of Sydney with consumers flocking to try and buy the many varieties of cheeses on offer.

Forty freezer doors are home to an extraordinary range of frozen foods along

with over 40 metres of chilled cabinets housing all the dairy, juices, cheeses, small goods and a huge range of other chilled products.

Boasting an extensive range of gluten free, dietary, nuts and organic products this store exudes personality and confidence. Shoppers love it.

The dry grocery area is also well stocked offering choice and variety. There are 8 gondola ends at the rear of the store and 6 at the front all fully stocked with store specials and enticements.

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Customer service has not been compromised with the store open 7 days a week and more than 110 staff members ready to serve customers at one of either 9 full service checkouts or 6 self service checkouts. The front of the store is a delight with numerous colourful product displays and consumer competition opportunities on show.

Congratulations to the Karellas family, Chris Gunn the store Manager and all the staff at this store – it’s a terrific store and a great place to shop!

www.mga.asn.au

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INDUSTRY NEWS

Helping lower your cost of doing business eftpos is committed to helping keep Australian payments competitive and convenient.

We can also help lower your cost of acceptance.

To find out more email info@eftposaustralia.com.au

December 2017 – Edition 8

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INDUSTRY NEWS CANBERRA

COSBOA council meeting, council dinner and board meeting MGA is a council member of the Council of Small Business of Australia (COSBOA).

On the 25th & 26th October MGA attended the COSBOA council meeting, council dinner and board meeting in Canberra along with a number of other industry association leaders, regulators and industry stakeholders. Keen and involved MGA member, Carmel Goldsmith from Jamberoo also attended.

The council meeting focused on many small business initiatives including cyber security, seamless small business accounting, single touch payroll from 1 July 2018, mental health of small business owners and the development of COSBOA policies for the 2018 calendar year.

COSBOA’s AGM was also held and resulted in MGA’s Jos de Bruin being re elected as Director to the COSBOA board. This privileged role allows MGA to have first-hand involvement in developing policy matters concerning MGA

members’ businesses, as well as all other small businesses, that can be influenced at a government level by COSBOA. The annual COSBOA Canberra dinner was once again a rich mix of industry association leaders, federal regulators and Federal Government and opposition MPs. This allowed easy access for various people to have casual and candid discussions between a number of attendees from different backgrounds.

Former Small Business Minister (& competition law reform warrior) and now Minister for Revenue, Kelly O’Dwyer was the special guest speaker accompanied

by Minister for Small Business Michael McCormack who always displays enormous enthusiasm toward the small business fraternity around Australia.

Shadow Assistant Small Business Minister Julie Owens was also a very keen participant in all the

Jos de Bruin, Kelly O’Dwyer and Carmel Goldsmith

COSBOA Board with Ministers Kelly O’Dwyer and Michael McCormack COSBOA events. Julie is a staunch supporter of family enterprises and privately-owned businesses.

Regulators in attendance included, the ATO, the FWO, the ACCC, ASIC and last but not least – our own small business warrior – Kate Carnell, Small Business and Family Enterprise Ombudsman.

CANBERRA

Meetings at Parliament House

Rod Allen, Katy Gallagher and Jos de Bruin

MGA President Rod Allen and CEO Jos de Bruin meet with a number of Government MPs on a regular basis to put forward the MGA members matters of concern and business opportunities.

Meeting with Opposition Leader Bill Shorten and Shadow Minister for Small Business, Katy Gallagher at a COSBOA forum in Parliament House Canberra earlier this year was no exception.

Jos de Bruin, Bill Shorten and Rod Allen

Both Bill Shorten and Katy Gallagher were very keen to assist Australian family enterprises and privately-owned businesses in any way they can –

unfortunately they were opposed to strengthening Competition Law by allowing the inclusion of the “effects test” into – section 46 – misuse of market power, they were opposed to the “reduction” of Sunday penalty rates from 100% to 50% and opposed to the reduction in company tax rates from 30% to 27.5% for businesses with sales of $50m or less. These recent changes were hard fought by MGA and many others and are fundamentally imperative if independently owned and operated supermarkets, liquor stores and timber and hardware outlets are to survive into the future.

www.mga.asn.au

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INDUSTRY NEWS NATIONAL

75th Anniversary of the “Forgotten People” speech by the then Prime Minister Robert Menzies on 22 May, 1942 On the 21st November MGA Director Steve Miller and CEO Jos de Bruin attended this event as guests of the Council of Small Business of Australia (COSBOA) and its CEO Peter Strong.

This speech delivered by Robert Menzies in 1942 recognised and celebrated the significance and importance of the “forgotten people”- family enterprises, privately owned businesses and the “unprotected middle class” communities as the backbone of the Australian economy. Similar to MGA members around Australia, this was true then and is still more than true today. Below is an extract of the first 6 paragraphs of the speech by Robert Menzies.

“Quite recently, a bishop wrote a letter to a great daily newspaper. His theme was the importance of doing justice to the workers. His belief, apparently, was that the workers are those who work with their hands. He sought to divide the people of Australia into classes. He was obviously suffering from what has for years seemed to me to be our greatest political disease – the disease of thinking that the community is divided into the relatively rich and the relatively idle, and the laborious poor, and that every social and political controversy can be resolved into the question: What side are you on?

what I mean when I use the expression “middle class.”

Let me first define it by exclusion. I exclude at one end of the scale the rich and powerful: those who control great funds and enterprises, and are as a rule able to protect themselves – though it must be said that in a political sense they have as a rule shown neither comprehension nor competence.

But I exclude them because, in most material difficulties, the rich can look after themselves.

From rear R – L: Steve Miller, Peter Strong, Jos de Bruin and Prime Minister Malcolm Turnbull with other guests

I exclude at the other end of the scale the mass of unskilled people, almost invariably well-organised, and with their wages and conditions safeguarded by popular law. What I am excluding them from is my definition of the middle class.

We cannot exclude them from problems of social progress, for one of the prime objects of modern social and political policy is to give them a proper measure of security, and provide the conditions which will enable them to acquire skill and knowledge and individuality.

Now, the last thing that I would want to do is to commence or take part in a false war of this kind. In a country like Australia the class war must always be a false war.

But if we are to talk of classes, then the time has come to say something of the forgotten class – the middle class – those people who are constantly in danger of being ground between the upper and the nether millstones of the false war; the middle class who, properly regarded represent the backbone of this country.

These exclusions being made, I include the intervening range – the kind of people I myself represent in Parliament – salaryearners, shopkeepers, skilled artisans, professional men and women, farmers and so on. These are, in the political and economic sense, the middle class. They are for the most part unorganised and unself-conscious. They are envied by those whose benefits are largely obtained by taxing them. They are not rich enough to have individual power. They are taken for granted by each political party in turn. They are not sufficiently lacking in individualism to be organised for what in these days we call “pressure politics.”

And yet, as I have said, they are the backbone of the nation.

We do not have classes here as in England, and therefore the terms do not mean the same; so I must define

The communist has always hated what he calls the “bourgeoisie”, because he sees clearly the existence of one has kept

Prime Minister Malcolm Turnbull British countries from revolution, while the substantial absence of one in feudal France at the end of the eighteenth century and in Tsarist Russia at the end of the last war made revolution easy and indeed inevitable. You may say to me, “Why bring this matter up at this stage when we are fighting a war, the result of which we are all equally concerned?”

My answer is that I am bringing it up because under the pressure of war we may, if we are not careful – if we are not as thoughtful as the times will permit us to be – inflict a fatal injury upon our own backbone...” ...Should you wish to read the remainder of this speech then simply Google The Forgotten People speech by Robert Menzies in 1942.

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INDUSTRY NEWS

AVAILABLE AT

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December 2017 – Edition 8

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INDUSTRY NEWS QUEENSLAND

MGAQ committee

A meeting was also held with the Queensland Department of Environment

Jos de Bruin, Terry Slaughter and Minister for Health Cameron Dick

Container refund scheme Clean up Australia Day found that beverage

containers make up

23%

of litter collected in Queensland

The problem with drink containers • They are the second most commonly littered item (after cigarette butts) with approximately 2.4 billion generated in Queensland alone.

• They pollute the natural environment and litter streets, parks and waterways.

• Nearly all drink containers can be recycled however most end up in landfill, and are not recycled.

What the Queensland Government is doing

Plastic shopping bag ban The Queensland Government is introducing a container refund scheme for Queensland.

The public consultation on the scheme received 2,600 submissions with the majority of people supporting its implementation.

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They pollute the natural environment and litter streets, parks and waterways.

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They endanger marine and other wildlife which can ingest, and become entangled, in them.

single-use plastic What containers are shopping included? bags

•

Most drink containers between 150ml and 3 litres will be are used in Queensland every year...

Plastic bag litter is often mistaken for food by turtles and other wildlife.

•

Millions of dollars are spent each year in litter clean-up costs.

900 million

Under the scheme, empty eligible drink containers with an approved refund mark can be returned to a container refund

2.4 billion containers are used in QLD

each year

The problem with plastic shopping bags

Over point for a 10 cent refund.

eligible for a refund under the scheme.

What the Queensland Government is doing

Some drink containers will be exempt, such as containers for The Queensland Government is introducing a ban on the supply of plain milk, wine and pure juice. This is because the focus of lightweight single-use supermarket-style plastic shopping bags. the scheme is on away-from-home drink containers which are The public consultation on the ban received more than 26,000 the most commonly littered.

Most are wasted or littered

submissions, with 96% of people supporting its implementation.

When will the refund scheme start?

...and up to

The government is also working with other states to develop complementary voluntary action to reduce the use of department

end up as containers from this date.

What bags are included?

The Queensland Container Refund Scheme will start on 1 July 2018. store-style plastic bags.

16 million You will be able to start getting a 10 cent refund for eligible

Reverse Vending Machines

litter...

Effect on wildlife

will be one

collection method

90%

under the CRS

of all seabird species have ingested plastic debris.

The ban will only apply to lightweight, single-use supermarketstyle plastic shopping bags. This includes biodegradable plastic bags which can take a long time to break down in the environment, causing the same harm to wildlife as conventional plastic bags.

The ban does not apply to heavier-weight reusable plastic shopping bags, fruit and vegetable barrier bags, or any other type of plastic bag.

When will the ban start?

1 July 2018.

What are the benefits?

•

Reduced litter and plastic pollution.

•

Reduced impact on wildlife.

What shoppers can do

The MGAQ Committee also met by teleconference on various occasions to discuss QLD elections, packaged liquor, retail tobacco licenses and planning and zoning matters.

30%

of all sea turtles have ingested plastic debris.

•

Take your reusable bags when shopping, instead of using singleuse plastic bags.

•

Keep a reusable shopping bag in your car or bag, so you are always prepared.

What retailers can do •

Check out the National Retail Association workshops and website dedicated to helping retailers prepare for the ban at www.qldbagban.com.au

•

Begin to prepare for the ban by sourcing and transitioning to alternative shopping bags.

•

Remember, the lightweight plastic shopping bag ban will apply to all retailers. Penalties apply to any retailer who does not comply with the legislation.

#31104

A number of other matters such as packaged liquor for supermarkets, industry development initiatives including training and reviewing the fairness and relevance of QLD planning and zoning were raised.

to discuss the Waste and Recycling Amendment Legislation 2017 and the forthcoming CDS and plastic bag ban initiatives due for implementation by 1 July 2018. Jos de Bruin and Terry Slaughter met with Director Kylie Hughes and Senior Project Officer Arianne Milovich to discuss the implementation strategies and launch plans and how our industry sector can be better involved in the smooth transition of both schemes.

A one page information sheet outlining the workings of both the Qld CDS and plastic bag bans have been produced as a part of the communication and education strategy to all Queenslanders – see the images below – full 2 page explanations can be viewed on MGA’s website.

#31104

On the 19th of October MGAQ Committee member Terry Slaughter and MGA’s Jos de Bruin teamed up with the Australian Lotteries and Newsagents Associations’ Government Relations Manager, Ben Kearny and Dolan Hayes from Townsville to meet with Qld Shadow Health Minister John Paul Langbroek and Qld Minister for Health Cameron Dick to discuss and voice our opposition to the topic of retail tobacco licensing that has been proposed by the current government. Both the Minister and Shadow Minister said they had absolutely no appetite to pursue this matter.

WESTERN AUSTRALIA

MGA WA committee The MGA WA Committee meeting led by MGA WA Director and store owner Gino Divitini was held at the South of Perth Yacht Club on 31st October 2017.

The committee, including store owners Gino Divitini, Greg Brindle, Rob Halvorsen, John Cummings and Ross Anile discussed many matters effecting WA members and also met with a special guest for the meeting; WA Small Business Commissioner, David Eaton.

David covers a broad spectrum of roles for the small to medium size business sector and can be described as a highly respected advisor and conduit between the state government and all family enterprises and privately owned businesses of a small to medium size up to 100 employees.

WA matters the committee discussed with David included; trading hours liberalisation, packaged liquor issues, the review of the WA industrial relations system and proposed new tobacco regulations requiring only persons 18 years of age or over to serve tobacco products to customers and also tobacco to be transacted from 1 cash register.

WA members please note – MGA will be conducting a WA Industry Business Breakfast in Perth on the 8th March 2018. Federal Employment Minister Michaelia Cash and WA Minister for Industrial Relations and Commerce, Bill Johnston will be special guests and speakers – PLEASE DIARISE as your presence is vital to help lift our industry sector profile in WA.

L-R: Small Business Commissioner David Eaton, John Cummings, Rob Halvorsen, Gino Divitini, Ross Anile and Greg Brindle

Other members of the MGA WA committee include, Tony Macris – Forrestfield, Wally Daly – Belmont, Greg Rice – Ballajura and Pierre Sequira – Como

www.mga.asn.au

20

INDUSTRY NEWS

VICTORIA

MGA TMA Business Luncheon and Launch As MGA members were made aware in previous communications, MGA absorbed the Timber Merchants Association of Victoria effective from July 2017. The TMA, as it was known, comprises of family enterprises and privately-owned businesses – just like MGA. The purpose of coming together was to strengthen and grow MGA for its members benefit and to also assist timber and hardware business owners with vital “back of house” support such as Legal and HR services. The MGA TMA will seek to grow its current membership of 120 Victorian outlets, with sales of $4b and employing 4000 staff into a national organisation incorporating timber and hardware business from around Australia.

MGA TMA held its inaugural Industry Business Luncheon and Launch at the Kooyong Tennis Centre on Tuesday 21 November 2017. Over 70 members, industry stakeholders and other guests

attended this event at a terrific and historical venue.

The MC for this event was MGA TMA Membership Manager, Ann Sanfey.

First speaker MGA TMA President Peter Alexander spoke eloquently about the 3 year thorough process taken by the TMA Board and MGA Board of Directors and TMA members to de-register the TMA and to join MGA and MGA CEO Jos de Bruin briefly shared many initiatives and activities affecting the viability of members businesses that were recently taken up with State and Federal governments.

Special guest and speaker for the event was the Acting Minister for Agriculture and Water and Minister for Forestry and Timber, SA Senator Anne Ruston. Ann spoke passionately about the timber and forestry industry sharing her many experiences and frustrations concerning the many laws, regulations and restrictions

MGA TMA committee

Phill Ibbotson, George Kovits, Steve Sellars, Jason Daniels, Brendan Peck and Rami Kulafi

December 2017 – Edition 8

effecting timber supply and logging in each of the states. Ann acknowledges there is a shortage of locally grown timber in Australia but indicated there are many opportunities for the logging industry to avail themselves to locally grown native and other forests if some of the ridiculous state laws could be relaxed.

JB Were Chief Investment Officer, James Wright, delighted the audience with a “plain language” explanation of the current and future state of both the local and global economies. The economic outlook for Australia is very bright with low unemployment and most economic indicators pointing in the right direction, to help give small businesses a degree of certainty and confidence to invest in their businesses and to “ramp up” innovation in their businesses.

A very successful event thanks to the support of all MGA TMA members who attended.

Minister Anne Ruston with Peter Alexander

MGA TMA’s Ann Sanfey

James Wright – JB Were

INDUSTRY NEWS

21

www.mga.asn.au

22

INDUSTRY NEWS

NEW SOUTH WALES

MGA Business Breakfast and AGM – Sydney MGA’s Board of Directors together with MGA members, industry stakeholders and government regulators held its Industry Business Breakfast and AGM at the Waterview at Bicentennial at Sydney Olympic Park, on the 16 November 2017. Special guests and speakers included the Assistant Minister Industry Innovation and Science, representing Prime Minister Malcolm Turnbull, Hon Craig Laundy and NSW Shadow Minister for Small Business, Jenny Aitchison.

Such was the complexity and red tape in running a family owned business that Craig became motivated to become a federal politician. Craig wanted to make a difference for family enterprises and privately owned business by instilling a culture in government that the government’s role is to “get out of the way” and help to make business easier and simpler to conduct.

As such Craig leads the business simplification project on behalf of the federal government.

Other guest speakers included; Warwick Ponder, Senior Executive from eftpos and James Glenn, Senior Economist from NAB who both shared some compelling financial transaction and economic outlook insights.

NSW Shadow Small Business Minister Jenny Aitchison also shared her experiences as a small to medium sized business operator. Jenny articulated the small business policies that she would like to pursue to help make business a lot easier to conduct in NSW.

Minister Laundy was very engaging with the audience by firstly acknowledging Prime Minister Malcolm Turnbull and then relating his own personal story in being a part of a family owned and run business in the NSW hospitality industry.

The NSW Container Deposit Scheme was a hotly discussed topic. MGA members businesses have been placed at a significant risk owing to this very bad scheme.

James Glenn from NAB and NSW Shadow Minister for Small Business Jenny Aitchison with MGA Director Steve Miller

Roberto Trinchero with Grant Hinchcliffe

PRIME MINISTER

MESSAGE FROM THE PRIME MINISTER MASTER GROCERS AUSTRALIA NSW INDUSTRY BUSINESS BREAKFAST AND AGM I send my greetings to everyone gathered in Sydney for the Master Grocers Australia Industry Business Breakfast and AGM. The Government recognises the value of the work done by the MGA to represent and advocate for the interests of independent supermarkets, liquor retailers and hardware stores.

As you gather this morning, please be assured of our ongoing support for your sector, and of our commitment to ensuring it remains a dynamic source of employment and activity.

To this end, we are taking action to boost the capacity of businesses to compete in an open economy, and removing impediments to trade and innovation. We are investing in infrastructure, cutting red tape and providing up front tax relief to support growth and profitability.

We also have a comprehensive energy plan to bring down prices for Australian businesses and ensure reliable power.

Aussie NRG’s Max Haas with Jos de Bruin

I hope these measures give a sense of the value that the Government places on your industry, and of the invaluable contribution it makes to our society and our economy.

Now more than ever we need to get the policy, planning and regulatory settings right to ensure that our nation remains productive in an increasingly connected and competitive world.

With these thoughts in mind, I pay tribute to MGA’s Board, staff and members—past and present—for all you have done to strengthen and extend opportunities to Australian business.

I offer my warmest wishes to everyone participating in this year’s Industry Business Breakfast and AGM, and trust you will have a productive meeting.

The Hon Malcolm Turnbull MP Prime Minister of Australia 9 November 2017

Letter to MGA from the Prime Minister Malcolm Turnbull

December 2017 – Edition 8

NSW Shadow Minister Jenny Aitchison with MC Steve Miller

23

INDUSTRY NEWS

As Craig Laundy put to the audience, “it is simply bad policy” by the NSW Government. Both Jenny and Craig committed to the audience that they would do their best to follow this matter up with the current government with the view of assisting to remove any anti-competitive consequences and ambiguity concerning the Container Deposit Scheme that will be implemented from 1 December 2017.

We also thank both eftpos and NAB for supporting this event.

MGA’s Board thanks all special guests, speaker, members and industry stakeholders for attending.

MGA’s AGM Directly after the NSW Industry Business Breakfast, MGA Vice President, Steve Miller brought together all members to conduct MGA’s Annual General Meeting.

The CEO and Presidents’ reports along with all audited financial

Mark McKenzie, COSBOA with Jerome Koh – EPA

reports for year ending June 2017 were accepted.

Vice President Steve Miller reported that the Australian Electoral Commission (AEC) report concerning the ballot that was conducted amongst all members to vote for 3 MGA Directors from 5 nominated candidates was received on Tuesday 14 November.

The three nominators with most votes who have been appointed MGA Directors for 2018 are as follows; Mick Daly, Graeme Gough and Grant Hinchcliffe – all re-elected.

MGA’s Board sincerely thanks both Jag Rawat and Carmel Goldsmith for their valuable nominations.

MGA thanks all MGA members for their ongoing membership but importantly and above all, for their unity and strength.

Together we have achieved a very high profile at both State and Federal government levels to address the many concerns MGA members have on a day to day basis.

Romeo’s retailers at the Breakfast

Minister Craig Laundy MP with Jos de Bruin

FoodWorks retailers at the Breakfast

Jos de Bruin speaking at the AGM

www.mga.asn.au

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LEGAL AND HR

25

LEGAL AND HR The demise of Enterprise Agreements?

Our restrictive system of workplace relations is not allowing for innovation and the freedom for employers and employees to negotiate their own terms and conditions of work. Many critics would say that we are free to negotiate a flexible enterprise agreement, either with or without a union, right now. But when it comes down to what can be “freely” included in an agreement, such freedom is not necessarily reflected either in the process or in the final agreement. There are just too many hurdles that have to be overcome before an agreement can finally be reached that satisfies all parties.

One of the first objectives set out in the Fair Work Act is to provide, “workplace relations laws that are fair to working Australians, are flexible for businesses, promote productivity and economic growth for Australia’s future prosperity…

“An important aspect of this section of the Act is the reference to “flexibility” in the workplace and how that is going to contribute to our economy. We have to ask ourselves just how much flexibility is possible in the current system and if that flexibility is not freely available then just how much productivity is likely? The answers are that there is very little flexibility

and therefore very little productivity.

There is no doubt that the current bargaining system is failing us if we are becoming too award reliant. None of us are strangers to the fact that to achieve a new workplace agreement it must pass the “better off overall test” (the BOOT) but, that does not mean the test is a general one because every single employee must be better off than being employed under the award. We have seen problems for large employers in the retail industry with the most recent Coles agreement failing the BOOT. Woolworths recently stated that it is sceptical about whether it will negotiate a new agreement. Even a former ACTU leader recently reflected on the need for workplace reform and publicly stated that employees should be able make their own individual agreements. But that sends fear and trepidation throughout most union supporters who worry that there will be widespread exploitation.

Perhaps there is some room for concern after the 7/11 debacle. Small and medium sized retailers are currently hesitant to make a move towards making new enterprise agreements, they fear they will just be wasting their time because meeting the BOOT is nigh impossible for them to overcome.

Currently negotiating an enterprise agreement poses an almost impossible task for both parties. Many large and small businesses, have voiced their dissatisfaction with the current system of enterprise bargaining but to no avail. The problem is undoubtedly, the BOOT, and until that is remedied by the government and greater freedom is provided to parties to negotiate their own terms, the award will unfortunately remain as the safer, but restrictive, haven for most employers.

In the independent retail sector there are thousands of small businesses that negotiated agreements when the “no disadvantage test” applied to the bargaining process. Whilst it was not ideal it was much better than the current test that stymies the employer at every turn when trying to gain some benefit from the bargaining process. Many of these old agreements still survive but sooner or later there will be a “drop dead” clause placed into the legislation or an employee or a union will call “time out” on these old agreements and then these employers will be faced with the prospect of making a new agreement from a very difficult bargaining position.

Why do we have to spend hours engaging in fruitless negotiation strategies around a bargaining table and get absolutely nowhere? Some employers try to be innovative and want to offer incentives to their employees but they can’t because unless they give a great deal more than what is contained in the award they simply cannot afford the cost. Let’s make laws that provide the ability to negotiate realistically where both parties are protected and are able to achieve fair and beneficial outcomes. Surely its time to give serious consideration to meeting the objectives of the Fair Work Act.

www.mga.asn.au

26

LEGAL AND HR

Payment upon termination of employment When an employee resigns or is terminated, there are nearly always certain payments that the employer is obligated to make once the employment relationship has ceased. Payments due on termination of employment may include: 1. Outstanding wages; 2. Payments in lieu of notice; 3. Accrued (but untaken) annual leave and long service leave; 4. Annual leave loading; or 5. Redundancy.

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December 2017 – Edition 8

This month, the Fair Work Commission (FWC) made a ruling about the appropriate timing of termination payments as part of their 4-yearly review of modern awards.

In the decision, the FWC recognised that it may not be sufficient for termination payments to be made during the next pay cycle, because in some cases that may mean an employee may have to wait up to a month to receive their payment.

The FWC ruled as follows: 1. Payments in lieu of notice must are paid at the time of the termination of employment; 2. Payments for outstanding wages for time worked must be paid no later than 1 month after the entitlement to payment arising in accordance with section 323 of the Fair Work Act 2010; and 3. All other termination payments (such as redundancy payments) must be paid no later than 7 days after the employee’s last day of work.

Therefore, if you wish to terminate an employee immediately by making a payment in lieu of notice, do not leave payment for the next pay cycle. You need to ensure the payment is made on the last day of employment, and wages be paid within 1 month. All other termination payments must be paid no later than 7 days after the employee’s last day of work.

Employers may be exempted from paying redundancy payments within 7 days if they apply to the FWC for a full or partial exemption from making redundancy payments in certain circumstances, such as on the grounds that acceptable employment has been obtained by the employer for the redundant employee.

Failing to comply with this ruling will leave you vulnerable to legal claims from affected employees and employers can also be ordered to pay a civil penalty of up to $126,000 for individuals or $630,000 for companies for contraventions of workplace laws.

27

LEGAL AND HR

Enjoying the staff Christmas celebrations – A reminder for 2017!

Each year we remind members about you and your staff enjoying your Christmas celebrations.

After Christmas we always hear of misbehaviour happening at Christmas celebrations which should be happy and enjoyable occasions. Although most party goers are able to enjoy themselves and celebrate the end of the year unfortunately there are some incidents of misbehaviour.

Even when there are functions that are “off

site” 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.

If there are juniors present make sure they have their parents’ permission to be there and ensure that they do not consume alcohol.

It is best to send out a written advice to your staff encouraging everyone to have a good time, but to take all precautions to make sure there are no unfortunate incidents.

Can I use “split shifts”?

A “split shift” is where an employee works on two or more occasions on the one day and does not get paid for the time in between. Members are advised that the General Retail Industry Award (“GRA”) does not permit split shifts, however please be aware that if your business operates under an enterprise agreement, different rules may apply.

The GRA requires that an employee must have a break of 12 hours between a shift on one day and a shift that commences on the next day. If the break is not granted then all work

performed when the second shift commences will be paid at double time and will continue until the 12-hour break is granted.

The employer and employee may reach an agreement that the break between the two shifts may be no less than 10 hours.

For further information please contact MGA’s Legal & HR Team on 03 9824 4111 (option 1).

www.mga.asn.au

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29

LEGAL AND HR

Conversion from casual to permanent employment status MGA has advised members previously that the Fair Work Commission has been considering providing casual employees with the ability to convert to permanent status. The Fair Work Commission has now made a decision that will allow this conversion, if requested, and therefore provide permanent employment status to employees who have been in casual employment for a specific period of time, on a regular basis.

This change does not apply to the General Retail Industry Award at the time of writing, but it will be implemented very soon and it is anticipated this will occur in 2018.

There is currently a model provision that will be inserted into the GRA in the near future and is expected to contain the following: • The employee will have to have been in an employment relationship with the employer for a qualifying period of 12 calendar months; • The casual employee must have worked a qualifying period which establishes a pattern of hours on an ongoing basis which, without significant adjustment, could continue to

•

•

be performed in accordance with the full-time or part-time employment provisions of the relevant award; The employer must provide all casual employees (whether they become eligible for conversion or not) with a copy of the casual conversion clause within the first 12 months after their initial engagement; and A conversion may be refused on the grounds that it would require a significant adjustment to the casual employee’s hours of work to accommodate them in full-time – OR part-time employment in accordance with the terms of the applicable modern award, or it is known or reasonably foreseeable that the casual employee’s position will cease to exist, – OR the employee’s hours of work will significantly change or be reduced within the next 12 months, or on other reasonable grounds based on facts which are known or reasonably foreseeable.

It is important that members be aware that the “Casual conversion” clause will be available to employees very soon.

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www.mga.asn.au

30

LIQUOR NEWS

LIQUOR NEWS NSW Container Deposit scheme debacle New container deposit laws in NSW will operate from 1 December 2017 and from that date independently owned retail businesses on the NSW borders and throughout the state will suffer the consequences of this very badly thought out container deposit policy because it disadvantages all independent retailers in favor of Woolworths and Coles supermarket and liquor businesses.

This badly thought-out policy (now legislation) has the potential to put many small to medium sized independent grocery and liquor retail businesses out of business and cost in excess of 1,350 jobs at a time when costs to run a business are spiraling and the consumer is more and more difficult to win over given the power of the chains, Coles, Woolworths and Aldi this is simply not good policy In Albury on Friday 17 November MGA

Liquor President, George Kovits along with over 50 concerned regional retailers attended a Container Deposit Scheme Cross Border information briefing.

The briefing was coordinated and chaired by the NSW Cross Border Commissioner James McTavish, and the group was addressed by EPA Senior Manager Alex Young and TOMRA Cleanaway CEO Ken Donley. Regrettably at the end of the meeting there were still more questions remaining than answers given.

Unanswered matters driving deep business uncertainty include; • Cross border issues such as – price differences between NSW CDS and non CDS states (between $3.50 and $5.00 per carton of 24 units) • National chains Coles and Woolworths national pricing

•

•

Bob Matthews with Peter Smith – BDM Metcash Albury

Bob Matthews – East Albury IGA Owner

December 2017 – Edition 8

Retailers at the CDS briefing in Albury

approach – they have the market power to smooth out CDS costs and significantly undercut NSW independently owned supermarkets across the state Weekly promotional programs – advertising products locally in catalogues, press and media such as TV and radio will be significantly compromised, particularly in regional areas. Cost efficiencies of national advertising programs will cease and regional TV, radio and newspaper advertising will have to cease owing to the retail price difference between states – this will give Coles and Woolworths supermarkets and liquor stores a significant advantage The unfair distribution of the Reverse Vending Machines (RVMs) – allowing the chains to obtain a very strong and unassailable competitive advantage.

LIQUOR NEWS

•

RVMs are being distributed according to a population principle of 1 for every 20,000 people – Woolworths and Coles are being given a priority, significantly disadvantaging independent retailers.

RVMs will offer consumers Woolworths or Coles supermarket vouchers as consumer refunds; • Consumer refund choices • Transfer funds into consumers own account via Pay Pal • Donate to 1 of 4 available charities (will be rotated) • Voucher to redeem cash in a designated store – Woolworths or Coles • Voucher for credit in designated store – Woolworths or Coles or others – latter is highly advantageous for stores with RVMs positioned in their carparks

•

•

•

The significant cost to adjust to the new CDS pricing – constant renewal of shelf tickets and price maintenance systems as well as the customisation of promotional programs (can no longer take a national approach) National pricing strategies differ between national suppliers (Lion, CUB, Coca Cola, Schweppes, etc.) and include various rates of cost recovery – it may be 10 cents a unit refund for the consumer but the consumer will ultimately pay up to 17 cents per unit more after recovery of costs and taxes are calculated into the final cost price by suppliers.

Managing the expectations of consumers – many NSW consumers (and retailers) have no idea of how the CDS will work and what impact it will have on them. MGA members require immediate NSW government assistance to better communicate the CDS to NSW consumers.

31

MGA is attending and will again raise our members concerns at the upcoming NSW State Government Community Cabinet Meeting being held in Albury and has briefed the ACCC on the unfair distribution of the RVMs and its impact on the independent sector.

MGA is not into opposing the NSW CDS but wants to work with the NSW Government to develop a strategy that will allow the CDS to be implemented in a seamless and fair manner across NSW. We often hear people in governments say that family enterprises and privately owned businesses are the back bone of the economy.

It is a great pity this principle was not adhered to at the beginning of the CDS planning or its economic ramifications to businesses were not considered in the NSW EPA’s Consultation Regulation Impact Statement.

NATIONAL

Retailer compliance vigilance required over Christmas and New Year!

Summer is a busy time for licensees across Australia, so now is the time for all packaged liquor licensees to ensure they know their responsibilities during the Christmas and end-of-year period.

In-store Liquor License Compliance Checklist

Licensees are reminded to practice responsible service of alcohol and ensure staff do not serve liquor to underage patrons.

When in doubt of a patron being under 18 years of age, staff should ask for proof of age. A range of resources are available to assist licensees in dealing with minors, for any assistance free call MGAL national support centre on 1800 888 479.

Are all your state’s compulsory signs up to date and displayed in a prominent place in your store?

When it comes to minors, licensees and their staff should also be aware of the laws around secondary supply. Under secondary supply laws if you believe a person is buying alcohol for a minor, you should refuse to sell them alcohol.

Make sure you and your staff are prepared by keeping your staff up-to-date with their Responsible Service of Alcohol training.

RSA training is mandatory for licensees and staff selling, offering or serving liquor at packaged liquor licences.

TICK

Is your current Liquor License displayed in a prominent place in your store?

Do your staff have up-to-date RSA training certificates or completed up-to-date refresher course?

Victorian Packaged Liquor License Holders must have an up-to-date ‘House Rules Manual’ that must be made available when requested by Compliance Inspectors?

If applicable, is a current Red Line Plan displayed?

www.mga.asn.au

LIQUOR NEWS

35

VICTORIA

MGA meets Victorian Shadow Minister for the Environment On Tuesday 24 October MGA CEO Jos de Bruin and MGA Liquor President George Kovits met with the Liberal Party Shadow Minister for the Environment Nick Wakeling MP. With the current Victorian Minister for the Environment Hon Lily D’Ambrosio taking a watch and see approach on the NSW CDS and its impact on NSW border retailers MGA felt it important to brief the Shadow Minister about the unintended consequence of Victoria being the only mainland state not to be introducing a Container Deposit Scheme (CDS).

Understandably a Container Deposit Scheme in NSW is not the concern of the Victorian government, and as an organisation MGA agree that one is not needed here (let alone in other states) as we have excellent kerbside and public street recycling collection bin systems.

However, having explained to the Shadow Minister that with South Australia and Northern Territory already having a CDS in place and the introduction of a CDS in NSW from 1 December and ACT and

Queensland introducing a CDS by 1 July 2018, leaving Victoria as the only mainland state not to have a CDS. The Victorian government not implementing a CDS in line with the other mainland states, coupled with the NSW government’s refusal to acknowledge that NSW border retailers will suffer substantial sales and job losses resulting from NSW consumers crossing the border to Victoria to do their shopping, and being simply viewed as ‘collateral damage’ by both the current Victorian and NSW governments, is just not good enough.

MGA stressed with the Shadow Minister Nick Wakeling that the NSW CDS is simply bad policy with extraordinary unintended consequences. The only way to resolve the matter is for all states to scrap or all states to participate. The CDS has added enormous cost burdens to all beverage businesses from manufacturers, retailers to importers and worst of all to the consumer.

We were assured by the Shadow Minister Nick Wakeling that he would take our

Shadow Minister for the Environment Nick Wakeling MP with MGA’s George Kovits

advice and information to the next Shadow Cabinet meeting for review and advise MGA of their position on a CDS. We wait hopefully!

VICTORIA

Get ready to renew your Victorian liquor licence for 2018 Victorian licensees can expect to receive their renewal notices in the mail early December.

trading unlawfully and may be subject to enforcement action and significant penalties.

Liquor licence renewal fees are due for payment to the State Revenue Office every year by 31 December.

Each licence incurs a separate fee and a number of factors determine how much a licensee is required to pay. There are several payment options available which are listed on your renewal notice.

There are ways that licensees may be able to reduce the annual renewal fee. This varies depending on the individual licence.

Applications to reduce or waive a renewal fee should be lodged prior to 31 December 2017. Information about reducing or waiving renewal fees can be found at www.vcglr.vic.gov.au/ reduce-or-waive-renewal-fee.

Licensees who do not pay their 2018 renewal fee and continue to supply liquor on their premises after 31 March 2018 will be

If you have any queries regarding your licence contact the MGA national support centre on free call 1800 888 479.

www.mga.asn.au

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LIQUOR NEWS

VICTORIA

East Ringwood IGA – 40 years When Arthur Corcoris joined his brother Nick and brother in-law Paul Vrondis in 1977 to run a small licensed grocery store in the Melbourne suburb of East Ringwood, they never imagined that in 2017 they would be celebrating 40 years in business.

Congratulations on achieving 40 years of successful retailing at your East Ringwood store. How and when did you become involved in the retail market?

I joined my brother Nick and brother in law Paul (thus 'Pauls IGA' in October 1977 after returning from a 12 month escapade overseas.

Prior to my overseas trip I was studying accounting, but decided it wasn't for me, so I managed the liquor section while Paul managed groceries.

Tell us about how you and your other partners became involved in the business and what was the vision for your business at the time?

When we purchased the business it was 360 sq. metres, now it's 1,800 sq. Metres. Our vision was to have a competitive,

December 2017 – Edition 8

customer service driven offer.

Through our experience every time we extended or made major alterations, the business increased in customer count and also basket size.

Keeping an up to date, clean and tidy store is of utmost importance in today's retail market.

The future of the independent supermarket is to have higher standards than the chains, offer local product, and develop a convenient food option in store for their customers to take home and consume quickly.

As for liquor, we must keep looking for quality alternatives, at reasonable prices in both wine and beer, to create a strong

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LIQUOR NEWS

alternative to the chains. With spirits we must be more competitive and follow the latest trends.

You have just completed a massive refurbishment of your store. You are obviously very positive about the future of the independent grocery/liquor retailing sector how do you see it evolving into the future?

IGA has developed a strong community brand with a sense of belonging to all Australians.

Without the recognition and focus the brand has created in our local community, business would be more difficult.

Metcash and IBA, the people behind the brand also provide a wealth of experience and help, which assisted us to take the next step with confidence. Independents that have not partnered with a banner group will struggle to stay competitive.

What do you see as the strengths and weaknesses of the current independent retail sector?

Online shopping is starting to grow in groceries and liquor with the two current major chains offering online service as do ALDI and now with Amazon, a massive online home delivery retailer entering the market, more and more consumers will give the online model a try. Some will stay and some will revert back to shop front retailers. Therefore independents must create and offer a combined option, to be able to compete going forward.

We believe that independents that keep up with modern retailing trends, offer excellent service and re-invest back into their business will continue to be successful. We are living proof of that in what is a very competitive retail environment.

What is your view on government changes, to liquor licensing and what impact does it have on our sector? Also, how do you view the relentless pressure by the health lobby groups on governments to have more restrictions on alcohol, advertising, availability and labelling?

Government intervention in the liquor industry is inevitable. I think we must expect the tightening up of licensing laws, and reduced or banning of alcohol products. This will help our cause taking the focus away from the bigger discount operators, who won't be as prominent in our market without heavy advertising campaigns. But we must stay focused with localized community requirements and be ahead with online services.

representation is outstanding. Our membership gives us unlimited access to these services and we have constantly used these services over the years.

If you had the ear of government what would be the one thing that you would have them do?

Unfortunately, with the introduction of Aldi, and other overseas multinational retailers entering our market, the independents’ market share is dwindling, and we have to say to governments that enough is enough.

How long are they going to allow these monster multinationals to diminish the business of the independents that have pioneered retailing throughout the community through good times and bad and who look after and support local communities, invest in local communities and invest profits back into the in Australian economy?

Governments must implement policy on anti-competitive behaviour and reduce their market dominance to allow small business to compete. A good incentive would be to delete tax on repayment of the principle of loans to small businesses that use it to buy equipment and make improvements on their businesses.

BROWN IS A SUMMER ROSÉ

How important is it to you to be a member of an employer organisation and what benefits does it offer?

MGA has been a great asset to the independent sector. Pushing our cause and helping to change legislation for our protection from predatory chain operators.

Also, the in house service benefit supplied by MGA such as training, legal and HR advice and government advocacy

www.mga.asn.au

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LIQUOR NEWS

SPRITZ WITH A TWIST

A LWAYS OV E R I C E Available in Spritzed White and Spritzed Rosé

Contact your Treasury Wine Estates representative on 134 893

December 2017 – Edition 8

LIQUOR NEWS

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SOUTH AUSTRALIA

SA Government passes first major change The South Australian Parliament has passed the first major changes to the state’s liquor licensing system in nearly two decades.

The State Government welcomed the changes, saying that they pave the way for a simpler, more effective licensing system. The changes have also seen tougher penalties for the secondary supply of alcohol to minors, with the maximum penalty now $10,000.

•

A minor who consumes or has possession of alcohol in contravention of the new laws will also face a maximum penalty of $2,500.

The other key changes to the system include: • New licensing categories, aimed at simplifying the process for venues and events to apply for a licence • Cutting red tape for new and existing licensees • Removing outdated restrictions on the sale of liquor on Sundays, Christmas Day, Good Friday, New Year’s Eve and New Year’s Day • Abolishing the anti-competitive ‘needs test’ The reforms will be implemented in phases, with consultation to take place with industry on some key elements of the reform prior to their implementation.

South Australia’s Consumer and Business Services Minister John Rau, welcomed the changes as a step forward for the state’s liquor laws.

“These changes help modernise our licensing regime and better reflect both community expectations and changes to the sector over the past two decades,” Minister Rau said.

“By streamlining our application processes and licenses, we are supporting and encouraging new businesses helping to contribute to Adelaide’s vibrant nightlife. We’re maintaining a strong level of regulation, to ensure public safety and a safe drinking culture.”

Introducing Australia’s new aperitif, A’tivo – the spritz with a twist Launched in association with this year’s spring racing season, A’tivo is the new Australian aperitif, perfectly crafted to be enjoyed over ice.

Designed to drive category growth, A’tivo offers lightly spritzed varietals that are ideal for capturing opportunities when consumers seek refreshment.

Far from a traditional wine style, A’tivo debuts two varietals – Spritzed White with a twist of lime and Spritzed Rosé with a twist of raspberry – which are now available to order through Treasury Wine Estates (TWE).

According to TWE Managing Director for Australia & New Zealand, Angus McPherson, A’tivo was designed to expand wine occasions. “Our research tells us that consumers are looking for refreshment in 30% of their drinking occasions, but in these situations traditional wine styles aren’t a popular choice. A’tivo is a wine category disruptor – we are giving wine products a place where beer, cider, aperitifs and cocktails usually dominate,” he said.

“A’tivo has been made with the consumer front of mind – it gives people a refreshing style, with flavours and packaging that is on-trend, and flexibility – this is not about tradition or rules. By

opening up new occasions, A’tivo complements other offerings in TWE’s existing Masstige portfolio.”

To drive shelf stand out, A’tivo is housed in stylish, monochrome bottles, which highlight the ‘enjoy over ice’ message and feature a signature ‘Sip Tip’, providing consumers with additional serving suggestions for enjoying the new aperitif.

Targeted at millennials for relaxed, social occasions, A’tivo launched by hosting The A’tivo Bar in The Park precinct at Flemington during Melbourne Cup Carnival. Styled to reflect the A’tivo aesthetic, the bar hosted thousands of visitors and provided racegoers the opportunity to taste A’tivo and enjoy a VIP A’tivo Hour experience, that celebrated the aperitif occasion.

Contact your local TWE representative on 134 893 for more information about A’tivo.

www.mga.asn.au

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41

TRAINING

MGA INDUSTRY TRAINING NSW Food Safety Supervisor training 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.

The Karellas Group recently engaged MGA Industry Training to facilitate face to face Food Safety Supervisor training at their store in Harold Park, west of Sydney. The store is located at the Rozelle Tramsheds and caters to what the locals need whilst focusing on fresh produce and quality products at great prices.

To assist in getting the 22 staff members trained in an area that the store promotes was very important. Christine Potter (MGA trainer and assessor) facilitated the training on site. 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 as well as the nationally recognised qualification.

Slips and falls in the workplace

Contact MGA Industry Training on 1800 888 479 for information face to face training courses.

Christmas / Summer: Casual staff “89% of customers begin business with a competitor following a poor experience (source Oracle). 61% of small businesses report that half of their revenue comes from repeat customers (source BIAKelsey).” Make sure your new staff (and current staff) are well trained to meet your customers’ expectations.

Get your staff trained up with our Christmas Special Bundle!* 5 courses for $19.95 Includes: Basic Food Handling, Manual Handling, Basic Customer Service, Health and Safety Induction and Tobacco training. *Expires: 31 December 2017

To access the bundle, please visit the link for your state below: ACT: mgaonline.com.au/product/bundle-act/ QLD: mgaonline.com.au/product/bundle-qld/ WA: mgaonline.com.au/product/bundle-wa/ NSW: mgaonline.com.au/product/bundle-nsw/ TAS: mgaonline.com.au/product/bundle-tas/ VIC: mgaonline.com.au/product/bundle-vic/ SA: mgaonline.com.au/product/bundle-sa/

The main cause of accidents in shops and supermarkets are the result of liquids being spilt on the floor and not cleaned properly, thereby posing a dangerous hazard for shoppers. As well as slipping over on wet floors you may be injured by tripping on an unseen boxes or objects on the floor.

All retailers must adhere to many procedures and precautions with the intention of keeping their premises safe for the customer to shop in. It falls under the duty of care to keep the shopping area as risk free as possible.

This would include staff training and daily procedures / routines to keep the store clean and hazard free. As people are only human, mistakes are made, accidents may still happen.

With training and procedures in place this will be reduced if not eradicated so there are no chances of claims for injury.

Contact MGA Industry Training on 1800 888 479 for information on work, health and safety courses.

www.mga.asn.au

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TRAINING

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

Call us on 1800 888 479 if you need your log in details.

Manage Training System (MTS) Manage Training System (MTS) is an easy to use training program – set up training per department, allocate courses to staff, monitor results and have complete training records for all staff. Either use included HR policies or upload your own including staff rosters!

Employment law seminars Essential for store owners, department managers and human resource managers. Be informed, save time and costs by attending an interactive session on employment law.

Areas Covered • Your legal rights and obligations as an employer • Knowing how to deal with employment issues • Managing a legally compliant workplace

December 2017 – Edition 8

TRAINING

43

Online & face to face training MGA Industry Training offers discounted training for all members. Courses are online or can be conducted face to face at your business for 10 or more employees! Responsible Service of Alcohol, Food Safety, Employment Law, Customer Service, plus more!!!

Tobacco training This course covers information on the legal obligations for the sale and service of tobacco, non-tobacco smoking products, smoking accessories, e-cigarettes and e-cigarette accessories in each respective state/ territory. Training ensures your staff comply with Tobacco Retailing Laws – protecting your business.

STATE BASED TRAINING Duration: 30 minutes Member price: FREE

Don’t forget to log in for your member discounts!

Visit www.mga.asn.au to see our range of training courses!

www.mga.asn.au

Ask your customers to press or to get cash out and avoid ATM fees.

CHQ

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.

SAV