MGA Annual Report - 2016

2016

COSBOA continues to strengthen its advocacy position with the federal government and government departments. A COSBOA Advocacy Framework was developed in February COSBOA continues to strengthen its advocacy position 2016. with the federal government and government departments. A COSBOA Advocacy Framework was developed in February 2016.

COSBOA, led by Peter Strong and a dedicated Board of Directors, has played a large role in advocating for a variety of matters on behalf of privately owned business and family enterprises including; COSBOA, led by Peter Strong and a dedicated Board of Directors, has played a large role in advocating for a variety of matters on behalf of privately owned business and family enterprises including; • Competition Law Reform – introduction of the effects test • Competition Law Reform – introduction of the effects test • Unfair Contract Terms • Unfair Contract Terms • Sunday penalty rates • Sunday penalty rates • Superannuation administration • Superannuation administration • Good Faith dealings • Good Faith dealings • Favourable taxation policies • Favourable taxation policies The COSBOA Small Business Summit was held in Sydney on 16th & 17th July 2015 The COSBOA Small Business Summit was held in Sydney on 16th & 17th July 2015

2

PRESIDENT’S

REPORT A time of change and opportunities On behalf of MGA’s hardworking and dedicated Board of Directors I wish to commence this report by firstly congratulating all MGA members on getting through another tough and challenging year. Each year we say the market place we operate in has been worse for adversity than the previous year and yet we continue to trade and compete against the might of the 2 big giant supermarket and liquor chains as well as the fast growing German discounter.

MGA continues to be a unique and aspirational industry employer association, that we and members can be proud of. Despite some revenue challenges, owing to the withdrawal of government training incentives and members unable to avail themselves of certificate training, MGA has been able to deliver a first class legal and HR, employment law support service as well as training solutions and other membership benefits to its members.

members, who are privately owned businesses and family enterprises.

A major milestone for our industry this year was achieved on 16 March 2016 when, Prime Minister Malcolm Turnbull, the Treasurer Scott Morrison and the Minister for Small Business and Assistant Treasurer Kelly O’Dwyer announced that the recommendation by Professor Ian Harper and his panel to strengthen section 46 of the Competition and Consumer Act would be fully supported and endorsed in the parliament by the Coalition for legislation.

The political world we live in continues to be predictably difficult with the recent federal election showing that the electorate is not aligned on many day to day issues affecting their lives and the Australian economy.

MGA’s board members and staff have been heavily involved in an array of advocacy issues affecting members, none more important than Competition Law reform. Strengthening section 46 of the Competition and Consumer Act (CCA) which gives the ACCC the imprimatur to tackle large businesses misusing their market power. This is of paramount importance to maintaining a robust, diverse and competitive grocery, liquor and hardware retail market place in Australia.

MGA will continue to be vigilant to drive the Harper Panel recommendations through the Coalition party room and into the Parliament itself for the further drafting of this vital legislation. MGA’s Board knows there will be enormous pressure brought to bear by big businesses and the Labor Party, to not change section 46 (misuse of market power). However, we know we have the commitment and determination from the Prime Minister, the Treasurer and the Minister for Small business and Assistant Treasurer to follow this through the Parliament to drive productivity, employment and prosperity that are in the best interests of the Australian economy.

MGA has engaged with federal members of parliament and government agencies (ACCC, Treasury) more than ever before, building strong and positive relationships with which to further the cause for MGA

MGA’s members hear it every day, “we are in times of rapid industry change” and “digital disruption” is a way of life.

In understanding what this all means our industry is required to be agile

MGA 2016 Annual Report

and resilient and able to quickly adapt through innovation to continuously engage with and stimulate a response from our customers.

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

In 2015 Jos brought together the power of 23 industry associations, representing 900,000 businesses, to let politicians know that they were a collective, formidable force. He was the driving force that made it happen convincing the Government to adopt the vital changes covered in the Harper Review.

MGA has had a challenging year from a finance perspective largely owing to the withdrawal of federal and state government training incentives and subsequent dramatic drop in trainees (-$388k) resulting in the organisation reporting an operational loss of $142k.

According to accounting standards, MGA will also report one significant impairment to its balance sheet. The asset value of the Compliance Management System (CMS) must be written down. In addition, a “below-the-line” report concerning MGA’s share portfolio at fair value (costs vs market value), as at 30 June 2016, affecting a loss, is required to be recorded in MGA’s FY 2016 financial report.

MGA‘s Board of Directors and dedicated staff continue to anticipate and embrace the many business condition changes our members are facing and has developed support service solutions that will “make life easier” for our members to take us into the new 2017 financial year.

Rodney Allen, President of MGA Independent Retailers

3

MGA INDEPENDENT RETAILERS

ANNUAL REPORT 2016 “Making Life Easier” Overview for Financial Year 15/16

In September 2015 and after conducting considerable member research and surveys, Master Grocers Australia Board made a decision to modify and launch a new trading name – MGA Independent Retailers.

It was determined that the fresher and more modern brand name, MGA Independent Retailers, has a broader capacity to attract new non supermarket and liquor retailers, opening up the opportunity to grow membership particularly, within the hardware sector.

To coincide with this brand modification MGA’s website, magazine, e-newsletters and general stationary were all modernised.

Throughout the year there were a number of very productive, team building staff workshops conducted to determine the cultural elements of a high performing industry organisation. Subsequently, in aspiring to be a high performing organisation, the group developed an overall objective, a higher purpose and a strong set of values to take MGA into the future.

MGA’s higher purpose and complete reason for being is “Making Life Easier” for our members, staff and industry stakeholders.

Objective

To be a highly respected national industry organisation led by an inspired and aligned high performing team.

OUR SERVICES

MGA’s workplace

Legal and HR

A workplace that has an enjoyable and productive culture. A team oriented workplace that values staff work performance and provides them with challenges and opportunities to grow personally and professionally.

MGA Values – C.I.R.C.L.E

Consult when decisions affect others Integrity in everything we do Respect for one another Communicate open and honestly Leadership take ownership Embrace change as a healthy part of growth

MGA’s Higher Purpose

“Making Life Easier” The MGA team are dedicated to caring for and supporting its members

Have a problem with wages or employees and don’t know where to turn? Don’t get caught... seek advice first. Call us – 7 days per week.

Training MGA can provide accredited training in the areas that matter to you. Speak to the retailer training specialist.

Advocacy

CHOOSE THE RIGHT ROAD

MGA tirelessly lobbies on behalf of the independent retail sector – what affects you, affects us! Visit our website to see the latest news and submissions.

Member Benefits From electricity to insurance, mobiles phone plans or banking – MGA gets the best deals for our members... Try us!

MGA...

“Making life easier”

Communications We’re your ears and eyes! MGA will let you know via Checkout or e-alerts all of the important news you need to know.

www.mga.asn.au Free call: 1800 888 479

MGA 2016 Annual Report

4

CEO

REPORT A concentration on sustainability, relevance and outcomes MGA’s Board and staff have worked exceptionally hard this financial year in looking after the best interests of members around Australia.

Members report that the 2016 financial year was by far the most challenging year of trading that they have experienced.

Increased competitive activity from the 2 major chains, the foray by Aldi into SA and WA, as well as the cautious and increasingly frugal consumer, owing to a fragile economy, have all been factors affecting sales and profits. In some ways we say the same every year. This just demonstrates that as adverse changes around us begin to affect our members, to their credit, they are agile and quick enough to recognise the issue and adapt their businesses accordingly.

We often associate the words resilience, innovative and determined with our members. They are the attitudinal hallmarks of privately owned and family enterprise businesses in our industry.

Early in the year MGA changed its brand name from Master Grocers Australia to MGA Independent Retailers. Research that was carried out suggested that more independent retailers would join MGA if the organisation was relevant and modern. All core pillar graphics and colours have been modernised and the appearance and usability of the website, magazine, e-Alerts and checkout newsletters updated. Members have been very positive toward these changes.

MGA’s dedicated staff continue to provide members with a first class support service, particularly in the area of employment law, legal and HR services as well as compliance training and industry representation. MGA staff conducted a number of workshops to determine MGA’s higher purpose and also to develop MGA 2016 Annual Report

the type of culture in the workplace that will drive toward MGA becoming a high performing organisation.

MGA, like many other registered training organisations have experienced a severe down turn in federal and state government training incentive funding.

Not only has this meant that Certificate 3 and 4 training is becoming virtually non-existent but it has meant that MGA has had to lose some very valuable and capable training staff members including Judy O’Reilly, MGA’s National Training Coordinator, who had served our members for more than 9 years.

Independent supermarket owners and operators rely upon training staff to secure their business future. Succession planning is a very important strategy in working toward the future growth and prosperity of privately owned businesses and family enterprises.

MGA will continue to highlight this drastic deficiency to federal and state governments at every opportunity.

In response to member needs and training sustainability, MGA has invested valuable resources into developing an online compliance and professional development training suite of products. Members have indicated that this is a more flexible and affordable form of training. Innovation in this area will drive revenue that will replace Cert 3 and 4 training revenue.

Advocacy and Industry representation have been one of MGA’s functions of paramount importance. Outcomes that benefit members take an inordinate amount of time but we persevere. Specific areas including; competition law reform, the Harper Competition Policy Review report, reduction of Sunday penalty rates, Productivity Commission red tape submissions, container deposit legislation, illicit tobacco, excessive excise tax on

tobacco, tobacco regulations in states, excessive payroll tax, packaged liquor licensing in Qld, Tas and SA, opposing the deregulation of trading hours in Qld, WA and SA, food labelling and country of origin labelling are just some of the matters MGA advocates for.

After 9 years of research, surveys, reports, submissions, consultations, lobbying both sides of federal government and bringing together 23 National Industry Association CEOs representing 900,000 business and 5,000,000 employees, the Prime Minister Malcom Turnbull, together with Treasurer Scott Morrison and Assistant Treasurer and Small Business Minister Kelly O’Dwyer announced on the 16 March 2016, that the Harper Competition Policy Review Panel recommendation to strengthen section 46 of the Competition and Consumer Act by including an effects test will be fully endorsed and supported. This announcement was both historical and a milestone achievement for every MGA member and industry stakeholder who worked tirelessly to achieve this goal. For this recommendation to be legislated it must go through the Coalition party room and then pass through both houses of parliament.

This legislation must be passed through parliament in its current form to provide all small and medium businesses around Australia with assurance and certainty to invest, innovate and operate robust businesses and realise the dream of operating a business.

MGA board members and staff have fostered and grown many vital relationships at state and federal government levels with MP’s and departments that have helped to lift MGA’s profile and to engage with decision makers at a very high level. This will be continued in FY 2017.

I wish to conclude by sincerely thanking MGA’s Board for their vision and contribution toward building MGA into the best industry employer association in Australia and to all MGA’s staff who work tirelessly toward making life easier for our members.

Jos de Bruin, CEO of MGA Independent Retailers

5

INDUSTRY

LANDSCAPE Membership MGA members around Australia continue to rely upon the strong support service that MGA provides. For the price of an allinclusive membership fee, members can avail themselves of MGA’s highly skilled and capable team for advice and support pertaining to many “back of house” matters, whether they be legal and HR, training or local advocacy matters.

MGA’s total membership of over 2,450 members remains steady in all states.

There have been some ownership changes – single store owners selling their stores to multi store owners e.g. SA – Foodland Ardrossan sold to Drakes Supermarket Group. Hardware store membership increased by 10 stores. Liquor store membership continues to be challenging.

MGA 2016 Annual Report

6 MGA Board of Directors MGA’s Board of Directors continues to dedicate their time and resources to serving MGA Independent Retailers and the needs of

MGA’s Board of Directors its members. Travelling from all parts of Australia, MGA’s Board meets on a regular basis and combines these duties with state and federal politicians and industry stakeholders meetings.

Photo taken June 2015 MGA’s Board of Directors, Marie Brown and Jos de Bruin with former Minister for Small Business and Competition Matters – Hon Bruce Billson MP MGA’s Board of Directors, Marie Brown and Jos de Bruin with former Minister for

New Small Business Minister Kelly

and Competition HonSantos Bruce Billson MP.Jos Leftde to Bruin Right: Marie Treasurer Scott Morrison L toSmall R – Business Marie Brown (MGA),Matters Chris –dos (SA), )MGA), O’Dwyer Debbieand Smith (Qld), Rod Allen Brown (MGA), Chris dos Santos (SA), Jos de Bruin (MGA), Debbie Smith (QLD), Rod with Jos de Bruin, CEO MGA (Vic), Steve Miller (Vic), Grant Hinchcliffe (Tas), Gino Divitini (WA), Andrew Bray (NSW/ASCT), Mick dale Allen (VIC), Steve Miller (VIC), Grant Hinchcliffe (TAS), Gino Divitini (WA), Andrew Bray (Vic) – Former Minister Bruce Billson seated (NSW/ACT), Mick Daly (VIC), Hon Bruce Billson MP – Minister for Small Business and Competition Matters

MGA team

MGA is very fortunate to have a team of truly passionate and dedicated staff members who are committed to the well being and prosperity of MGA’s members.

Suite 5, 1 Milton Parade, Malvern VIC 3144 MGA’s staff structure (particularly training), has again been forced to change significantly over the past 12 months owing to the P 1800 888 479 | F 03 9824 4022 | www.mga.asn.au | ABN 44 004 063 263 reduction of state and federal government training incentives. MGA’s online training offer will also be a focus for the training team © Master Grocers Australia Limited with continual development of new online training products to meet the needs of members and outside business owners.

MGA 2016 Annual Report

7 Corporate Partners

MGA Corporate Partners continue to strongly support the efforts of MGA to strengthen the resilience and sustainability of MGA’s members – independent retailers around Australia. Corporate partners are able to more easily engage and build relationships with members through a variety of advertising and promotion mediums and industry events. They enable MGA to be able to provide significant members benefits that will save members money.

Finance

MGA has had a challenging year from a finance perspective largely owing to the withdrawal of federal and state government training incentives resulting in the organisation reporting an operational loss. The dramatic downturn in Industry training activities did effect the financial performance of MGA despite cutting costs and moving quickly to developing on line training opportunities for members. Aside from a few modules, the Workplace Health and Safety System also ceased to be a source of income. The partnership with ICON Global ceased owing to operational and business relationship difficulties. MGA has been able to contain costs without compromising its excellent support services for its members.

Early in the financial year, MGA with the terrific financial assistance from members around Australia, joined other industry organisations and stakeholders to mount a strong case with the Fair Work Commission to reduce Sunday penalty rates from 100% to 50%. MGA sincerely thanks members, as a total of $90,000 was raised toward the legal and court costs associated with mounting this case. We are awaiting an outcome.

According to accounting standards MGA will also report one significant impairment to its balance sheet. The asset value of the Compliance Management System (CMS) must be written down (-$428k). In addition, a below-the-line report concerning MGA’s share portfolio (costs vs market value) as at 30 June 2016 which showed a loss of $142k, will be required to be recorded in MGA’s FY 2016 financial report. This will impact MGA’s profit and loss report by showing a significant accounting loss for FY 2016.

The outlook for MGA’s operational performance from 1 July 2016 is excellent with MGA’s Board and management team having developed a robust and sustainable business plan.

Goals and Objectives

MGA’s goals for this financial year focused on further developing and delivering exceptional member support services including; Legal and HR, Training and Compliance (online and Workplace Health and Safety) and timely industry information through improved communication mediums including; website, 8 magazines, e-Alerts and fortnightly checkouts.

Number of Hours Affiliations and Industry Associations • • • • •

ACCC Small Business andJuly Franchise Consultative 2015 - JulyCommittee 2016 Coalition of Small Business Organisations of Australia – MGA is a Director of COSBOA Victorian Liquor Control Advisory Committee (LCAC) – statutory state liquor body ACT Liquor Advisory Consultative Committee – statutory body Industry Skills Council Australia

Number of Hours July 2015 - July 2016 Number of Hours: July 2015 – June 2016

47% - Legal and HR

Number of Contacts Industry Stakeholders •

• •

Retail brands: July 2015 - July 2016 Farmer Jacks (WA), Foodland (SA), FoodWorks, Friendly Grocers, IGA, SPAR, IBA, Cellarbrations, The Bottle O, Bottlemart and Local Liquor Wholesalers: Australian Liquor Marketers, Metcash, SPAR and FoodWorks MGA partners: Adroit Insurance

Number of Contacts Contacts: JulyNumber 2015 - of July 2016 July 2015 – June 2016

47% - Legal and HR

64% - Legal and HR

45% - Industry Representation

24% - Industry Representation

5% - Membership Services

6% - Administration

2% - Administration

4% - Training

2% - Training

3% - Membership Services

Total: 5292

64% - Legal and HR

Total: 6243

45% - Industry Representation

24% - Industry Representation

5% - Membership Services

6% - Administration

2% - Administration

4% - Training

MGA 2016 Annual Report

8

2015 / 16

HIGHLIGHTS Legal & HR

Led by MGA’s National Legal Counsel for Workplace Relations, Marie Brown, the legal and HR team have played a significant role in assisting and supporting members on a day to day basis with anything from a wage enquiry to an unfair dismissal.

MGA’s legal and HR team have a significantly high level of capability and expertise which MGA is very proud of. An ongoing highlight includes; engaging with members from around Australia on a number of industry issues, including member workplace surveys, the National Wage Review and advocating for a reduction in Sunday penalty rates.

MGA’s legal and HR team continues to be a highly sought after source of information and provides insights from a number of external stakeholders including the Fair Work Commission, government departments and bureaucrats.

Training & Compliance

This year there have been many lowlights within MGA’s training and compliance pillar owing to a dramatic withdrawal in federal and state government training incentives funding. This caused MGA to lose some key highly valued members of staff. From bad comes something good, as they say, with MGA’s training team working very hard to create a new and innovative online training course offer.

A modern and engaging website has been developed offering a range of compliance based courses as well as professional development courses planned for development in FY2017.

Industry Representation & Advocacy MGA has experienced many industry representation highlights in FY2016. MGA’s board has actively engaged with the Federal Government in Canberra and a variety of politicians to advocate for Competition Law reform, a reduction in red tape and associated cost burdens and the reduction in Sunday penalty rates.

On 10 October 2015 and 3 March 2016, MGA brought 23 Industry Association CEO’s together in Parliament House, Canberra to meet with the Treasurer, Scott Morrison and Assistant Treasurer and Minister for Small Business, Kelly O’Dwyer to advocate strongly on behalf of 900,000 businesses and 5,000,000 workers to support Harper’s recommendation to strengthen Section 46 of the CCA. The major highlight for the year came on 16 March 2016 – this was the outstanding and historic announcement made by the Prime Minister Malcolm Turnbull, together with the Treasurer, Scott Morrison and Assistant Treasurer and Minister for Small Business, Kelly O’Dwyer (see photo) that the Harper Competition Policy Review Panel recommendation to strengthen Section 46 of the Competition and Compliance Act with the inclusion of an effects test, would be fully endorsed and supported in the parliament.

This announcement was the culmination and result of tireless and relentless efforts made by MGA members and industry stakeholders over many years.

Industry Community

MGA continues to be active in bringing members together in each state, along with industry stakeholders and members of parliament. These events and activities lift the profile of the independent retailer industry sector, as well as fostering goodwill and networking opportunities amongst members.

Industry breakfasts in Brisbane and Melbourne, the MGA Liquor Christmas forum as well as MGA’s GALA industry Ball were a huge success.

Assistant Treasurer and Minister for Small Business, Kelly O’Dwyer, Prime Minister Malcolm Turnbull and Treasurer Scott Morrison

MGA 2016 Annual Report

Industry Community MGA continues to be active in bringing members together in each state, along with i and members of parliament. These events and activities lift the profile of the indepe sector, as well as fostering goodwill and networking opportunities amongst member

The Industry Breakfast and AGM in held in Brisbane in November 2015 was a great success with special The Industry Breakfast and AGM heldManen in Brisbane in November 2015 was Michael a great success specialthe guest speakers including Hon Bertin and ACCC Deputy Chairman, Schaperwith delighting The Industry Breakfast and AGM inVan held in Brisbane in November 2015 was a great success with special guest speakers including Hon Bert Van Manen and ACCC Deputy Chairman, Michael Schaper delighting the 9 audience. guest speakers including Hon Bert Van Manen and ACCC Deputy Chairman, Michael Schaper delighting the audience. audience.

The MGA GALA Golf Day held at the Keysborough Golf Club in Melbourne was a sell out with groups The MGA Golf Day held at the Keysborough Clubattending in Melbourne was a sell outdinner. with groups playing in GALA the morning and afternoon and over 100Golf people the presentation This event The MGA GALA Golf Day held at the Keysborough Golf Club in Melbourne was a sell out with groups playing in the morning and afternoon and over 100 people attending the presentation dinner.

This event raised over $20k for the reach Foundation. playing in the morning and afternoon and over 100 people attending the presentation dinner. This event raised over $20k for the reach Foundation. raised over $20kevent, for theMC’d reachbyFoundation.

The MGA liquor Michael Reddrop, held just prior to Christmas 2015, included special The MGA liquor event, MC’d

by Michael Reddrop, heldPowell just prior to Christmas 2015, included guests such at Catherine Myers, CEO VCGLR and Mark PhilipMorris Corporate Affairs.special The MGA liquor event, MC’d by Michael Reddrop, held just prior to Christmas 2015, included special guests such at Catherine Myers, CEO VCGLR and Mark Powell Philip- Morris Corporate Affairs. guests such at Catherine Myers, CEO VCGLR and Mark Powell Philip- Morris Corporate Affairs.

MGA LIQUOR

COMMITTEE

MGA Liquor MGA Liquor MGA Liquor Brown photoCommittee (formerly LRA), led by chairman The MGABrothers National Liquor Brown Brothers photo and member’s support advocate, George Kovits, drives for outcomes Brown Brothers photo The MGA National Liquor committee (formerly LRA), that reduce red tape and lessens cost burdens for members to led do by Chairman and members support advocate, The MGA National Liquor committee (formerly LRA), led by andburdens members advocate, George Kovits, drives for outcomes that reduce red tape andChairman lessen costs forsupport members to do business.

LiquorLiquor Committee is representative of all independent The MGAMGA’s National committee (formerly LRA), led by Chairman and members support advocate, George Kovits, drives for outcomes that reduce red tape and lessen costs burdens for members to do business.

MGA’s national liquor committee is representative of all independent retailer brands and is the retailer brands and is the conduit between governments, their various George Kovits, drives for outcomes that reduce red tape and lessen costs burdens for members to do business.

MGA’s national liquor committee is representative of all independent retailer brands and is the departments regulating liquor and MGA liquor members. conduit between governments, their various departments regulating liquor and MGA Liquor members. business. MGA’s national liquor committee is representative of all independent retailer brands and is the conduit between governments, their various departments regulating liquor and MGA Liquor members. conduit between their various departments liquor and Liquor ACT, members.

More than 800 of MGA’s members have ahave packaged liquor license.

More than 800 ofgovernments, MGA’s members a packaged liquor regulating license. Members areMGA in Victoria, Tasmania Members are in Victoria, ACT, members Tasmania and NSW with workplace relations MoreNSW than 800 ofsupport MGA’s have aLSA packaged liquor license.

Members are in Victoria, ACT, Tasmania and with IR provided to the WA membership base.

This area of business is of paramount More than 800 to ofthe MGA’s members have a packaged liquor license.

Members are in Victoria, ACT, Tasmania support provided LSA WA membership base.

This area of business is and NSW with IR support provided to the LSA WA membership base.

This area of business is of paramount importance to stand aloneprovided liquor stores wellWA as membership licensed supermarkets.

The sale of liquorisisofheavily and NSW with IR support to theas LSA base. This area of business paramount of paramount importance to stand alone liquor stores asas well as licensed importance to stand faces alone liquor stores as wellstate licensed supermarkets.

The health sale oflobby liquorgroups is heavily regulated and often close scrutiny from and federal governments, as well importance to stand alone liquor stores as well as licensed supermarkets.

The sale of liquor is heavily supermarkets. The sale of liquor is heavily regulated and often faces close regulated and often faces close scrutiny from state and federal governments, health lobby groups as well as the media. scrutiny fromand state and federal governments, as well governments, health lobby groups as well regulated often faces close scrutinyhealth fromlobby stategroups and federal as the media. as the media. as the media.

It is vital all retailers selling packaged liquor are a member of an industry association such as MGA Liquor.

It is vital all retailers selling packaged liquor are a member of an industry association such as MGA Liquor.

It retailers selling packaged liquor are a member of an industry It isisvital vitalallall retailers selling packaged liquor are a member of an industry association such as MGA Liquor. association such as MGA Liquor.

P 1800 888 479 P 1800 888 479 P 1800 888 479

Suite 5, 1 Milton Parade, Malvern VIC 3144 |Suite F 03 5, 9824 4022 Parade, | www.mga.asn.au | ABN 44 004 063 263 1 Milton Malvern VIC 3144 5, 1 Milton Parade, Malvern VIC 3144 |Suite F 03 9824 4022 | www.mga.asn.au © Master Grocers Australia Limited| ABN 44 004 063 263 | F 03 9824 4022 | www.mga.asn.au | ABN 44 004 063 263 © Master Grocers Australia Limited © Master Grocers Australia Limited

MGA Liquor Committee with new committee members Tony Leon (far right) and Peter Karkazis (ACT) (fifth from left) meets at Brown-Forman.

MGA 2016 Annual Report

10

INDUSTRY REPRESENTATION

FEDERAL

In September 2015 Prime Minister Tony Abbot lost the leadership of the Liberal Party in favour of Malcolm Turnbull. As a consequence of this change, Minister for Small Business Bruce Billson was replaced by Minister Kelly O’Dwyer, Treasurer Joe Hockey was replaced by Scott Morrison and deputy leadership of the coalition transferred from Warren Truss to Barnaby Joyce.

By far the biggest industry representation matter that MGA has been advocating for is, Competition Law reform.

The Harper Competition Policy Review Panel recommended that section 46 of the Competition and Consumer Act be amended and strengthened to include an effects test.

Harper Competition Policy Review Panel’s recommendation to strengthen Sec46 of the CCA, despite the demonstrable protestations from the Business Council of Australia and many other large business corporations.

The PM announced the recommendation will be supported by the Cabinet and the Coalition Government in full. This is a major win for the entire business community in Australia – small, medium and large sized business will benefit from the strong Sec46 competition laws that will deter exclusionary behaviour, particularly those very large businesses that have substantial market power.

The entire business community, with the exception of those MGA, through its Directors and Staff, have built very close contact and relationships with a plethora of MGA has worked tirelessly with former Minister for Small very large companies who are part of oligopolies or are Ministers, backforbenchers and cross benchers theBCA), pasthave several years.

Business BruceShadow Billson andMinisters, current Minister Small Business monopolistic (andover also the applauded thisRelationships “common and the Assistant Treasurer Kelly O’Dwyer, as well as, numerous sense” decision. This has been lauded as being outstanding have never been stronger! members of parliament to have the Harper recommendations public policy that will benefit all Australians. Big business endorsed and legislated by the parliament. leaders felt there should be no change to the current Sec46 law – so they couldbig continue to dominate and crowd outcampaign smaller MGA’s members and industry stakeholders also played a very part in the success of this – On 16 March 2016 the Prime Minister of Australia, Hon businesses – this is fair competition they say! retailers and industry stakeholders have been constantly lobbying and making contact with their local MPs Malcom Turnbull, the Treasurer Hon Scott Morrison, and and Ministers advocating Competition big “Well Done” toindustry all members of CEO’s our Assistant Treasurer/Small Business for Minister Hon Kelly Law reform.

MGAA ledvery the campaign with 23 other association O’Dwyer, an historical announcement leaders. terrificmade industry for your incrediblyconcerning valuablethe efforts and in campaigning for this result. No matter how big or

small, every effort did make a difference!

What’s next?

After the election on 2nd July, providing the government is re elected, the State must be consulted, then the Bill for reform will go through the Upper House and Lower House for debate and hopefully safe passage.

MGA, its board members and many members met with numerous MP’s. For the first time in history MGA brought together 23 Industry Association CEO’s to meet with the Treasurer Scott Morrison and Assistant Treasurer and Small Business Minister Kelly O’Dwyer in Parliament House Canberra (14th Oct. 15 & 3rd 23 industry Association Heads meet with Kelly O’Dwyer, Scott Morison Former Minister for Small March to discuss asJos other matters of a common interest.

Deputy PM16) Barnaby Joyce this Competition matter as well with de Bruin Business Bruce Billson

23 Industry Associations are unified that the Harper Recommendation to amend Sec46 should occur – 900,000 businesses employing over 5,000,000 people

23 Industry Associations are unified that the Harper Recommendation to amend sec46 should occur – 900,000 business employing over 5 million people

MGA 2016 Annual Report

MGA was invited by Minister Kelly O’Dwyer to attend an historical roundtable meeting in Tamworth on th

11

Industry representation continued

After 9 years of member and consumer research, 4 major reports (and 2 NARGA reports before that) and intense lobbying with various governments a positive result has finally been delivered.

The former Minister for Small Business and Competition Matters, Hon Bruce Billson, led the charge for competition law reform – strengthening section 46, after the Coalition were successful in winning the 2013 federal election. A Root and Branch review of the Competition Act, the appointment of the Harper Competition Policy Review Panel, endless consultations and the final Harper Panel report released on 31 March 2015, led to the outstanding announcement by the PM on 16 March.

Jos de Bruin with Professor Ian Harper

Suite 5, 1 Milton Parade, Malvern VIC 3144

MGA, through its directors and staff, have built very close contact and relationships with a plethora of ministers, shadow ministers, back benchers and cross benchers over the past several years. Relationships have never been stronger!

MGA’s members and industry stakeholders also played a very big part in the success of this campaign – retailers and industry stakeholders have been constantly lobbying and making contact with their local MPs and ministers advocating for Competition Law reform. A very big “well done” to all members of our terrific industry for your incredibly valuable efforts in campaigning for this result. No matter how big or small, every effort did make a difference!

Treasurer Scott Morrison – Budget night 3 May 2016

P 1800 888 479 | F 03 9824 4022 | www.mga.asn.au | ABN 44 004 063 263 © Master Grocers Australia Limited

MGA board members, Rod Allen and Debbie Smith with Minister for Northern Australia Senator Matthew Canavan

What’s next?

Following the election on 2 July, providing the government is re-elected, the states must be consulted, then the Bill for MGA Board members Rod reform will go through the Upper House and Lower House for Allen,Rod Debbie Smith and Smith with Sen Captions above – MGA Board members Allen & Debbie debate and hopefully safe passage.

Andrew Bray with Minister for Jos de Bruin with Minister for Bruin Small Business Kelly O’Dwyer Small Business and Assistant MGA, its board members and many members met with and MGA’sSmith JosRod dewith Bruin Captions above – Rod MGA Board members Allen & Debbie Smith Treasurer Kelly O’Dwyer MGA Board members, Allen and Debbie Minister for Northe numerous MP’s. For the first time in history, MGA brought Canavan together 23 Industry Association CEO’s to meet with the Bruin Treasurer Scott Morrison and Assistant Treasurer and Small Treasurer Scott Morrison – Budget nightand 3rd May 2016 MGA Board members, Rod Allen Debbie Smith with Minister Business Minister Kelly O’Dwyer in Parliament House, Suite 5, 1 Milton Parade, Malvern VIC 3144 Jos de Bruin with Minister for Small Business and assistant Treasurer Kelly O Canberra (14 Oct 2015 & 3 March 2016) to discuss this Canavan P 1800 888 479 | F 03 9824 4022 | www.mga.asn.au | ABN 44 004 0 competition matter, as well as, other matters of a © Master Grocers Limited MGA Board members Rod Allen, Debbie Smith andAustralia Andrew Bray Minis Suite 5, 1with Milton common interest.

2016 Treasurer Scott Morrison – Budget night 3rd May O’Dwyer and MGA’s Jos de Bruin P 1800 888 479 | F 03 9824 4022 Jos de Bruin with Minister for Small Business and assistant Treasu MGA was invited by Minister Kelly O’Dwyer to attend an © Master Gro historical roundtable meeting in Tamworth on 29 January MGA Board members Rod Allen, Debbie Smith and Andrew Bray w 2016. MGA made another submission to Treasury on 12 There are many other matters MGA has pursued and continues to pur February explaining the benefits of fair competition and the O’Dwyer and MGA’s Jos de Bruin members including; opportunities the Harper Report could deliver should the recommendations be legislated.

• Unfair Contracts amendments – Thresholds increased

• Franchise Codeother of Conduct There are many matters MGA has pursued and continu MGA Board members Rod Allen & Debbie • Standards Australian – Unit PricingSmith working group members including; with Senator Nick Xenophon and Jos de Bruin • Excessive Credit Card Surcharges – Reserve Bank of Australia • Unfair Contracts amendments – Thresholds increased

• •

•

Merchant Fees – Reserve Bank of Australia

•

Franchise Code of Conduct

•

Standards Australian – Unit Pricing working group

•

Excessive Credit Card Surcharges – Reserve Bank of Au

Tobacco – Illicit tobacco and increases in2016 excise taxReport MGA Annual

National measurements Institute

preventing small businesses to surviv mission Inquiry – Red Tape and cost impediments toBusiness doing business - SundayOmbud Small and family Enterprise

12

• Federal workingKelly relationships - Austra In April 2016, Minister O’Dwyer announc Department, Australian Tax Office (AT former CEO of ACCI, Beyond Blue, AFGC and C

entatives Economics Committee - submissions and appearances - Barriers constructive working relationship with Kate Ca There are other matters MGA has pursued businesses tomany survive and prosper. and continues to pursue in the best interest of members including;

•

Productivity Commission Inquiry – Red Tape and cost impediments to doing business Penalty Rates• Productivity Commission Inquiry – Red Tape and cost impediments to do Penalty Rates ACCC House of Representatives Economics Committee - submissions and appearances - Bar • House of Representatives Economics preventing small businesses to survive and prosper. Committee - submissions and appe preventing small businesses to survive and prosper.

• Competition Law reform – numerous m Federal working relationships - Australian Competition and Consumer Commission (A • Federal working relationships - Australian Competition and Consumer Co Department, Australian Tax Office (ATO),Consumer Fair Work Commission • Australian Law (FWC) – 5 Year rev Department, Australian Tax Office (ATO), Fair Work Commission (FWC)

• Unfair contracts amendments –Competition thresholds increased and Consumer Commission (ACCC) Treasury relationships - Australian • • Franchise Code of Conduct Standards Australia – Unit Pricing working group Commission (FWC) tralian• Tax Office (ATO), Fair Work • • • • • • • • •

•

Excessive credit card surcharges – Reserve Bank of Australia • Merchant Fees – Reserve Bank of Australia Tobacco – illicit tobacco and increases in excise tax MGA meets Independent Senator Jacqui Lambie National Measurements Institute • Coles Supermarkets – oppose acquisiti FY 2017 Federal Budget input – Small Business thresholds- $10m/ reduction in company tax Photos • Australian Payments Clearing Associa COAG – payroll tax reform – nationally uniform Coalition government Small Business Committee – competition • Woolworths Low Prices ALWAYS – m law reform MGA meets Independent Senator Jacqui Lam Productivity Commission Inquiry – red tape and cost impediments to • Country of Origin Labelling inquiry – ne doing business – Sunday penalty rates Minister for Small Business michelle Rowland Photos Photos House of Representatives Economics Committee – submissions • Royal Auto Club Tasmania 8 cpl and Co MGA meets Independent Senator/Jacqui / Shadow Treasure Ch Senator Jacqui Lambie Shadow Treasure reassure Chrisreassure Bowen and and appearances – barriers preventing small businessesMGA frommeets Independent section 46 of the CCA /Lambie Dinner with Kelly O’D surviving and prospering formichelle Small Business michelle Rowland a meeting to discussof theaninclusio Minister for SmallMinister Business Rowland – a meeting to –discuss the inclusion effect • MGA is a member of the ACCC Small B Federal working relationships – Australian Competition and Consumer Dinner with Kelly ininKelly 46 of the CCA /O’Dwyer Dinner with O’Dwyerhouse in Parliament house Canberra section 46 of the section CCA / Dinner with Kelly O’Dwyer Parliament Canberra Commission (ACCC), Treasury Department, Australian Tax Office Parliament House Canberra (ATO), Fair Work Commission (FWC)

Small Business and Family Enterprise Ombudsman (SBFEO) National Australia Bank

MGA met with NAB Group CEO Andrew Thorb

In April 2016, Minister Kelly O’Dwyer announced the new and inaugural SBFEO as being Kate Carnell OAM – former CEO of ACCI, Beyond Blue, AFGC and Chief Minister of the ACT. MGA has a very strong and constructive working relationship with Kate Carnell.

Senator Jacqui Lambie / Shadow Treasure reassure Chris Bowen and Shadow MGA is a member of NAB Customer Service A ss michelle inclusion of anShadow effects test in ACCC Rowland – a meeting to discuss the Kelly O’Dwyer Minister for •

Competition Law reform – numerous meeting and teleconferences to Small Business Minister Kelly O’Dwyer launches the American Express sponsored Small Business Minister Kelly O’Dwyer launches the Express sponsoredof Shop Small c launches the American Small Business Michelle COSBOA – Council ofAmerican Small Business Austra discuss the Harper review Shadow Minister for Small Business Michelle Rowland also supports the campai Express sponsored Shop Rowland also supports Shadow Minister for Small Business Michelle Rowland also supports the campaign.

Australian Consumer Law – 5 Year review Small campaign. the campaign.

Coles Supermarkets – oppose acquisition of nine Supabarn COSBOA continues to strengthen its advocacy position with the federal government and government supermarkets departments. A COSBOA Advocacy Framework was developed in February 2016.

Australian Payments Clearing Association – credit card security COSBOA continues to strengthen its advocacy position with the federal government and government Small Business Minister Kelly O’Dwyer launch COSBOA, led by Peter Strong and a dedicated of Directors, has played a large role in advocating for a departments.

A COSBOA Advocacy FrameworkBoard was developed in February 2016. variety of matters on behalf of privately owned business and family enterprises including; overreach COSBOA, led by Peter Strong and a dedicated Board of Directors, has played a large role in advocating for a Woolworths Low Prices ALWAYS – misleading conduct • Competition Reform – introduction of the effects test enterprises including; variety of matters Law on behalf of privately owned business family Shadow Minister forandSmall Business Michelle Country of Origin Labelling inquiry – new regulations Competition Reform – introduction of the effects test • •Unfair ContractLaw Terms Suite 5, 1 Milton Parade, Malvern VIC 3144 Royal Auto Club Tasmania 8 cpl and Coles and Woolworths fuel discounts • •Sunday Unfairpenalty Contract Terms rates P 1800 888 479 | F 03 9824 4022 | www.mga.asn.au | ABN 44 004 0

inner with Kelly O’Dwyer in Parliament house Canberra • • • • • •

COSBOA – Council of Small Business of Australia

COSBOA continues to strengthen its advocacy position with the federal government and government departments. A COSBOA Advocacy Framework was developed in February 2016.

Suite 5, 1 Milton Parade, Malvern VIC 3144 © Master Grocers|Australia Limited | www.mga.asn.au ABN 44 004 063 263 • Superannuation administration © Master Grocers Australia Limited • Good Faith dealings Sunday penaltyadministration rates • •Superannuation P 1800 888 479 | F 03 9824 4022

•

•

Good Faith dealings

•

Favourable taxation policies

Favourable taxation policies

COSBOA’s Board of Directors – February 2016

The COSBOA Small Business Summit was held in Sydney on 16th & 17th July 2015 The COSBOA Small Business Summit was held in Sydney on 16th & 17th July 2015

COSBOA, led by Peter Strong and a dedicated board of directors, has played a large role in advocating for a variety of matters on behalf of privately owned business and family enterprises including; • Competition Law Reform – introduction of the effects test • Unfair contract terms • Sunday penalty rates • Superannuation administration • Good faith dealings • Favourable taxation policies • MGA is a member of the ACCC Small Business and Franchise Consultative Council

COSBOA’s Board of Directors – February 2016

Suite 5, 1 M

P 1800 888 479 | F 03 9824

© Mas

Minister Kelly O’Dwyer Farewell dinner for Kelly O’Dwyer launches the American Express sponsored Shop Small campaign. / and COSBOA CEO former Minister for Small Photos - Minister Kelly O’Dwyerand andCOSBOA COSBOA CEO CEO Peter received to support the the “Effects Photos - Minister Kelly O’Dwyer PeterStrong Strong- -Petitions Petitions received to support “Effects in sce46 CCA / COSBOAfarewell farewelldinner dinner for business andand Competition TestTest in sce46 of of CCA / COSBOA for former formerMinister MinisterforforSmall Small business Competition Matters Bruce Billson Matters Bruce Billson

Peter Strong

all Business Michelle Rowland also supports the campaign.

MGA 2016 Annual Report

Suite 5, 1 M P 1800 888 479 | F 03 9824 4 © Maste

Business Bruce Billson

Suite 5, 1 Milton Parade, Malvern VIC 3144

P 1800 888 479 | F 03 9824 4022 | www.mga.asn.au | ABN 44 004 063 263 Suite 5, 1 Milton Parade, Malvern VIC 3144 Master Grocers Australia Limited | ABN 44 004 063 263 P 1800 888 479 | F 03©9824 4022 | www.mga.asn.au © Master Grocers Australia Limited

13

INDUSTRY REPRESENTATION

STATES

MGA has had various meetings with state ministers and government department heads to discuss an array of matters of concern.

Several submissions have been developed and lodged by MGA in response to a variety of enquiries conducted by government departments including;

Western Australia • • • • •

Queensland

MGAQ Committee - FoodWorks – Wayne Mason – FoodWorks Qld State Manager - FoodWorks – Chris Antonieff – FoodWorks Oxley - FoodWorks – Debbie Smith – FoodWorks, 3 x Toowoomba - Friendly Grocers Group – Chris White CEO - IGA – Roz White – Whites IGA Group Sunshine Coast - IGA – Terry Slaughter – IGA Springfield Lakes - Metcash – Richard Hinson – GM Metcash Qld - Metcash – Zac Mina – Metcash Mgr Commercial and Finance - SPAR – John Costanzo – SPAR Qld State Manager - SPAR – SPAR Oxenford - Supa IGA – Peter Lee – Ritchies of stores - Supa IGA – Peter Piccone – Supa IGA Cairns

Oppose extending Sunday trading Oppose the building of Dan Murphy “Big Boxes” Payroll tax – increase threshold and decrease % State relationship – WA ERA MGA WA Committee to be formed in FY2017

Victoria • • • • • •

Oppose banning Plastic bags Food ingredient labelling – takeaway products Oppose the introduction of 2 additional public holidays – Easter Sunday and AFL grand final eve Oppose additional liquor and tobacco regulations MGA is a member of the Liquor Control Advisory Council (LCAC) statutory body State working relationships – Victorian Commission for Gambling and Liquor Relations (VCGLR) and Victorian Department of Health

• •

New South Wales • • • • • • •

•

Oppose Container Deposit Legislation Food ingredient labelling – takeaway products Payroll tax – increase threshold and decrease % Planning and zoning issues Tobacco – amend the Tobacco Act to allow more than 1 cash register to transact tobacco products Support E–Vapouriser legislation MGA is a member of the Tobacco Control Act Committee, the Small Business Commissioner Group, The NSW Planning Minister Environment and Planning Reform group State relationships – NSW Department of Health / Planning & Environment

Tasmania • •

•

• •

Liquor licensing discussion paper – liquor licenses for supermarkets – member of Attorney General’s consultative group Payroll tax – increase threshold and decrease % Tobacco – support E-Vapourisers

MGAQ Committee meets with

MGAQ meets with Qld Small

Photos MGAQ Committee with Ipswich Paul Pisasale / MGAQ withBusiness Qld Small Business Photos MGAQ Committee meets withmeets Ipswich Mayor PaulMayor Pisasale / MGAQ meets withmeets Qld Small Minister Leeanne Enoch Minister Leeanne Enoch Ipswich Mayor Paul Pisasale Business Minister Leeanne Enoch

Tobacco – oppose lifting minimum age to purchase tobacco from 18 years, support E-Vaporisers Opposing RACT and Coles and Woolworths fuel discounts

South Australia

• • • • •

Oppose introduction of Plastic Bag bans Opposing applications from NRA to the QIRC to deregulate trading hours Food ingredient labelling – takeaway products Payroll tax – increase threshold and decrease % Tobacco – oppose licensing, Support E -Vapourisers Liquor – packaged liquor licenses for supermarkets State working relationships – Queensland Industrial Relations Commission (QIRC)

ACT •

Tobacco – oppose suggestions to restrict the sale of tobacco products to geography and times, oppose increase to tobacco license fees, support E -Vapoursiers • Planning and zoning issues • Packaged Liquor – oppose the proposed increase in MGAQ meets Qld Industrialfees Relations Minister Hon Grace R JosRoz de White, Bruin, Roz White, Grace MGAQ meets Qld liquor Industrial Relations Minister Hon Grace Grace – L toGrace R Jos–deL to Bruin, Grace license Grace, Wayne and Peter Picconne Grace, Wayne Mason andMason Peter Picconne • MGA is a member of the ACT Liquor Review Committee Oppose introduction of Plastic Bag bans • Oppose•introduction of Plastic Bag (statutory body) –bans Peter Karkazis is the representative •

• applications Opposing applications from QIRC to deregulate trading hours Opposing from NRA to the NRA QIRCtotothe deregulate trading hours

•

• Food labelling ingredient labelling –products takeaway products Food ingredient – takeaway

•

• –increase Payroll taxthreshold –increaseand threshold and%decrease % Payroll tax decrease

•

Tobaccolicensing, – OpposeSupport licensing, E - vapourisers Tobacco• – Oppose E -Support vapourisers

MGA 2016 Annual Report

14

COMPLIANCE AND

TRAINING MGA Training continues to be a core pillar that is highly valued by members, particularly in compliance. MGA is a registered training organisation and plays a significant part in the development and implementation of training courses that will benefit members’ businesses.

The training team endured more staff changes, as a consequence of the continued reduction in federal and state based training incentive funding. Long serving MGA National Training Coordinator, Judy O’Reilly left MGA in May 2016.

MGA ONLINE TRAINING MGA delivers training and compliance solutions specific to the needs of independent retailers. Here are a few of our training and compliance solutions readily available for members.

Certificate 3 and 4 trainees have been significantly reduced and will be phased out by September 2016, unless new training incentives are reintroduced by governments.

MGA also ceased its arrangement with ICON Global to deliver the complete WH&S System owing to an array of logistical and managerial difficulties, in favour of developing its own online MGA training website that will specialise in Compliance Training – Food Safety, Responsible Service of Alcohol (RSA), Workplace Health and Safety and Safe Work Instructions.

Food Handling

Responsible Service of Alcohol

Legal and HR Seminars

Safe Work Instructions

Manual Handling

Work, Health and Safety

www.mga.asn.au RSA courses continue to be highly successful both online and face to face.

The ACT has been particularly robust for RSA online training. Adele Dyson’s NE Victoria regional face to face RSA courses are doing exceptionally well. During the year the ACT RSA Refresher online course was made available on the mgaonline website. The online Food Safety Supervisor (FSS) course continues to grow in sales particularly in VIC and NSW. MGA now has the NSW FSS online refresher course up and running with steady sales growth. Marketing this product will drive further growth in sales.

The suite of online training will continue to grow over the next 12 months. Food Safety Supervisor – National, Food Safety Supervisor – NSW, Food Safety Supervisor – NSW refresher course, RSA – SA, WA, QLD, ACT and ACT RSA refresher course. As well as non accredited courses such as customer service and leadership and management.

Safe Work Instructions (SWI) have been developed to sell online. At present there are 17 to choose from including; Ladder safety, Deli slicer, Manual handling, Pallet jack, Carton cutter, and Armed hold up.

ISSUE 4 | 2016

YOUR INDUSTRY NEWS PROVIDED BY MGA INDEPENDENT RETAILERS

POWER OF THE SMALL BUSINESS VOTE

1800479 888• 479 • www.mga.asn.au NationalNational SupportSupport Office •Office 1800•888 www.mga.asn.au

MGA 2016 Annual Report

Communication

Together with a change to a modern brand name and style, MGA modified all its logos for its training, employment law products and support services.

The website, magazine, e-Alerts and Checkout newsletters were all modified to project an organisation to members that is modern and agile.

The new MGA website continues to provide members with vital information across a range of business streams (access via password), and industry stakeholders with an overview of MGA’s activities.

The magazine layout and design (produced 8 times per year) has been modified to appeal to a broad audience within our industry to maximise readership.

15

LEGAL AND HR

SERVICES Sunday penalty rates

Led by Marie Brown, MGA’s Legal and HR team have had another year of addressing many Industrial relations and employment law matters. Members continue to face an increase in unfair dismissal matters which are both time consuming and costly issues to navigate through.

MGA will be conducting one day master classes in employment law in FY2017 to assist store owners, managers and department managers to handle employee workplace matters with care.

The industry was unsettled by a number of wages related news stories. Mainly to do with under payment of wages and other entitlements. The 7-Eleven group of convenience stores were particularly implicated as well as United Petroleum outlets.

Coles supermarkets were also implicated with their EBA renewal failing the BOOT test.

There are many state and federal issues and opportunities that have been addressed by way of representation, surveys or submissions. Some of these include; Federal National Wage Review, Productivity Commission Inquiries, Senate Committee Inquiries and Fair Work Commission liaison.

Staffing in MGA Legal team

MGA’s popular employment law lawyer, George Raptis left MGA early in 2016 to take up a role with the FWC. George’s professional and meticulous attention to detail will be missed

by MGA members around the country. Nikola Prestia, an employment law lawyer who has worked in a private legal firm, has replaced George. Crystal Ong, who spoke fluent Mandarin also left MGA after a short time.

Count of hours by- topic: Legal and HR Services Count of hours by topic July 2015 – June 2016 (1 July 2015 to 30 June 2016)

200

400

Total: 2462

600

Annual Wage Review

MGA researched and surveyed its members, made a submission to the Fair Work Commission in respect of the annual review of award wages. MGA made a recommendation of no more than 1.1% ($8 per week). The FWC announced a 2.4% increase. Other matters that are being addressed include; • SDA Application for District Allowances • Casuals become permanent after 12 months of employment • Portable Long Service Leave (LSL)

Queensland – deregulation of trading hours

MGA continues to oppose applications made to the QIRC by the NRA to deregulate trading hours in QLD. The MGAQ Committee policy is to oppose all applications. Hearings of particular note include SE Queensland, Robina, Mt Isa, Goondiwindi and before and during the Christmas period. This activity to oppose applications is very costly and resource hungry.

Contacts byHR Services topic: Legal and Count of contacts by topic July 2015 – June 2016 (1 July 2015 to 30 June 2016)

Agreements Bullying Employee Issues General Leases Liquor Litigation Online Training Policies Public Holidays Qld Trading Hours Submissions Transmission of Business Wage Claims Wages & Conditions WHS Workcover 0

By far the biggest single initiative MGA has embarked upon in FY2016 is the application made to the FWC to reduce Sunday penalty rates from 100% to 50%. Final submissions have been made including the discussion concerning reduced Sunday penalty rates then work on Sunday should be voluntary. Justice Ross from the FWC intends to issue a decision sometime in Spring 2016. Should the reduction be approved then this will save our industry sector $147m per annum. We thank our MGA members who contributed $90k toward the running of this case which will cost in excess of $1.5m.

800

1000

Agreements Bullying Employee Issues General Leases Liquor Litigation Online Training Policies Public Holidays Qld Trading Hours Submissions Transmission of Business Wage Claims Wages & Conditions WHS Workcover 0

500

1000

1500

2000

Total: 3970 MGA 2016 Annual Report

16

INDUSTRY

COMMUNITY MGA continues to organise high quality events for members, corporate partners, industry stakeholders and state and federal government representatives.

These opportunities are rich opportunities for members to network and share ideas with fellow industry colleagues.

The Annual MGA GALA Ball, held in August 2015 at the Docklands in Melbourne was again successful with over 400 industry people attending raising over $50k for the Reach Foundation.

Industry Community

The Industry Breakfast and AGM in held in Brisbane in November 2015 was a great success with special guest speakers including Hon Bert Van Manen and ACCC Deputy Chairman, Michael Schaper delighting the audience.

The MGA GALA Golf Day held at the Keysborough Golf Greens Senator Peter Whish Wilson, Mister Bruce Billson, HonClub in Melbourne was a sell out with groups Bernie Rippoll, Senator Nick Xenophon and Foodland SAplaying Roger in the morning and afternoon and over 100 Drake

Canberra Business breakfast

people attending the presentation dinner. This event raised over $20k for the Reach Foundation.

The MGA Liquor event, MC’d by Michael Reddrop, held just prior to Christmas 2015, included special guests such at Catherine Myers, CEO VCGLR and Mark Powell from Philip Morris Corporate Affairs.

GALA Ball 2015

Ritchies Annual Supplier update day February 2016

Insert golf day photo – March 2016

2016/17

FUTURE

MGA continues to organise high quality events for members, corporate partners, industry stakeholders and state and federal government representatives. These opportunities are rich opportunities for members to network and share ideas with fellow industry colleagues.

The Annual MGA GALA Ball, held in August 2015 at the Docklands complex in Melbourne was again successful with over 400 industry people attending raising over $50k for the Reach Foundation.

This financial year has been a difficult one for MGA, particularly with the training team having to be reduced.

It is MGA’s aim in the next 12 months to improve in the following areas: to continue to develop, grow and consolidate MGA online training and to further elevate the MGA’s legal team through the Suite 5, 1 Milton Parade, Malvern VIC 3144 P 1800 888 479 for | F 03 9824 4022 |and www.mga.asn.au | ABNbeing 44 004 063 263 MGA has prepared itself the future looks toward delivery of master classes in employment law around Australia. © Master Grocers Australia Limited a sustainable and highly effective industry organisation. MGA aims to more than adequately represent its members at local, MGA will continue member and support service discussions state and federal levels of government, as well as satisfy the with the Timber Merchants Association, and the Australian day to day needs of members with an extensive range of legal Hairdressing Council as well as an additional association yet and HR services and training solutions. to be selected.

MGA 2016 Annual Report