MGA Independent Businesses Australia mgazine Autumn 2024

mgazine

The voice of independent businesses in Australia

Congratulations go to:

Saints Foodland | Page 14

Whites IGA | Page 16

Drakes | Page 18

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Contents

5 CEO Welcome Advocating for our members

6 How new IR laws could impact your business

9 FWC Annual Wage Review 2023 - 2024

9 Merger Law reform

Grocery news

10 Inquiry into supermarkets says make voluntary code of conduct mandatory

13 New research on small business cybersecurity

14 Winning smiles all around for Saints Foodland SA

16 Whites IGA. 30 years of fresh and local

18 Drakes celebrates 50 year milestone birthday

19 Drakes Supermarkets is trialling GPS trackers

20 Rent Logic

22 If you suspect it, report it

23 UNOX. Build the bond through the sense of cooking

24 IGA VIC Conference

Liquor news

26 AUR raises a glass with Liquor Conference first

27 Metcash appoint new CEO of ALM

29 Hyoketsu Lemon sales skyrocket in Australia

Timber news

30 IHG Expo 2024

32 Tense times for timber

33 Positive notes from ASH despite Victoria’s timber troubles

34 How to build a mentally healthy workplace

35 MGAIBA Corporate Partners

Board of Directors:

Lincoln Wymer (President): Victoria & New South Wales

Grant Hinchcliffe (Vice President): Tasmania

Ross Anile Western Australia

Dimitri Syrakis New South Wales

Jeff Harper Victoria

Ripple Parekh New South Wales

Terry Slaughter Queensland

Debbie Smith Queensland

Chief Executive Officer

David inall 03 9824 4111 david.inall@mgaiba.org.au

National office:

Suite 5, I Milton Parade Malvern Victoria 3144

Phone: 03 9824 411 admin@mgaiba.org.au www.mgaiba.org.au

Front cover: Top to bottom: Roger and John Paul Drake. Saints Foodland. Roz and Michael White.

This page: Saints Foodland.

Image source: Saints Foodland FaceBook and LinkedIn

CEO Welcome

We recognise and understand that trading conditions are difficult, with the cost of doing business rising everywhere from the cost of goods, transportation and logistics, energy, insurance, labour and workers’ compensation just to name few. Not to mention the devasting impacts that illegal tobacco continues to inflict on grocery and liquor members.

Federal Budget

With around 12 months until the next Federal Election, we await the upcoming Federal Budget. Pundits are asking whether this will be a standard mid-late term budget, or will this be an election budget? What can we expect for small business given the Government has made several proclamations of support for the sector.

Inquiry Submissions

As outlined in subsequent articles in this edition, we have never seen a period with so many reviews. Whether this be Government inquiries into competition policy, an ACCC inquiry into supermarkets, a review of the Food and Grocery Code of Conduct and a Senate Inquiry into supermarket pricing. Furthermore, there have been several reviews in the Fair Work Commission regarding such matters as considering options to simplify awards and the role of paid agents and of course the upcoming annual wage review decision.

MGAIBA have lodged submissions into many of these inquiries, including technical submissions in the Fair Work Commission with the express objective of endeavouring to make members’ lives simpler in what is already an overly complex employment environment, our submissions and advocacy on these important matters reflects the feedback we receive from members, including from surveys we ask members to complete. This

is a work in progress as we remain committed to keeping pressure on the Government and regulators regarding the urgent need to better support business owners.

Merger Reform

In response to the Treasury consultation paper on merger reform, MGAIBA submitted recommendations aimed at revitalising competition within concentrated markets. Our submission advocates for several key reforms to be implemented, including a recommendation to amend the mergers test to prevent ‘serial’ acquisitions that significantly reduce competition. Among other things, we recommended making it clear that mergers that make markets even more concentrated should be considered as reducing competition significantly.

We are pleased to report to members that our recommendations have largely been adopted and a recent announcement by the Treasurer offers real hope that we can see a future where additional pressure can effectively be exerted through the mergers and acquisitions process on behalf of our members.

Internal changes at MGAIBA

And finally, there have been some significant changes within MGAIBA these past few months. We rebranded the organisation to accommodate a more contemporary and inclusive brand and membership positioning. Additionally, and following a review of our internal structure and functions, it was decided that a new role be created to drive membership and corporate partner engagement and value across all membership sectors.

This led us to appoint Mikaela McKenzie as our Director of Member Engagement at MGAIBA. With an extensive background spanning over a decade in member-based

organisations, Mikaela brings a wealth of expertise in strategic partnerships, marketing, communications, events, and business development to our grocery, liquor, and timber & hardware members.

Mikaela’s commitment to placing members at the forefront of every decision, coupled with a shared vision to empower independent businesses to flourish, makes Mikaela such a valuable addition to our small team. With her approach of prioritising the member experience in all endeavours, we are confident in her ability to foster meaningful relationships and drive impactful initiatives that will benefit both members and partners alike. Please join with me in welcoming Mikaela.

See you next edition!

David Inall CEO, MGA Independent

How new Industrial Relations Laws could impact your business

In September 2023, the Australian Government proposed extensive amendments to federal employment and industrial relations laws. These changes, detailed in a lengthy document, raised concerns for various industries, including grocery, liquor, timber, and hardware.

Key areas of concern included:

Changes to casual employment, Now, ‘right to disconnect’

Expansion of union rights, and the introduction of criminal offenses related to wage underpayment.

Advocating for Members

Martin Stirling, MGA Independent Businesses Australia’s Head of Legal, spearheaded efforts to address these concerns. Meetings with political leaders, including the Leader of the Opposition and the Shadow AttorneyGeneral, highlighted the potential negative impacts of the proposed laws. MGAIBA, in collaboration with the Council of Small Business Organisations Australia (COSBOA), engaged in robust advocacy to convey the implications of these changes, emphasising the potential for increased complexity, costs, and unintended consequences of such legislative changes on businesses and communities.

MGAIBA’s Submission

Our submission to the Senate inquiry outlined several key points. The proposed legislation would likely likely to burden businesses, disincentivise casual employment, and could lead to closures of local stores, affecting competition, prices, and employment opportunities. MGAIBA emphasised the importance of supporting local businesses for the broader economy and expressed concerns about the increased burden and complexity which would heavily impact local Australian businesses.

While some concessions were made for small businesses, the bulk of the legislation passed through both houses of the Australian Parliament in two parts. The first part of the Bill passed in December 2023 and the second part of the Bill passed in February 2024 despite opposition efforts.

Read our full submission here.

Key Changes Affecting Members

Definition of Employment: A revised definition of employment focuses on the actual nature of the relationship rather than the employment contract. This could potentially impact businesses reliant on contractors.

Casual Employment Definitions: The new definition of casual employment emphasises the absence of a firm advance commitment to ongoing work and will look at the practical reality of the employment relationship. This may complicate the determination of casual employment status. Whilst employment contracts will no longer be a sole indicator of casual employment, they will still be considered and the importance of clear employment contracts remains a key consideration for employers.

Casual Conversion: Eligible casual employees will be able to convert to permanent status after meeting specific criteria. Employers must respond to such requests within 21 days, with refusal only being permitted on specific grounds.

Right to Disconnect: The introduction of a ‘right to disconnect’ allows employees to refuse workrelated contact outside of their designated working hours, with safeguards against adverse actions taken by employers for exercising this right.

Union Right of Entry: Changes facilitate easier union access to workplaces for investigating suspected industrial instrument contraventions, lowering the threshold for obtaining exemption certificates for providing advance notice of attendance.

Delegate Rights: Delegates will now be entitled to reasonable access to paid time for related training during normal working hours in some businesses. The definition of “reasonable” depends on factors such as the size and nature

of the enterprise, the employer’s resources, and the available facilities. Management will have obligations to work with delegates to address workplace issues.

Underpayment of wages: Intentional underpayment of wages and certain statutory entitlements, such as superannuation, will become a criminal offence. Unintentional underpayments due to genuine mistakes are exempt from this penalty, however, MGAIBA is concerned that a broad interpretation of the legislation may capture members who could have made an administrative payroll error.

For a deeper understanding of the new laws, we encourage you to read the overview prepared by our employment law team. Changes to the Industrial Relations Landscape. To read, click below.

Part One Part Two

How Can MGAIBA help?

To understand how these changes might affect your business and the necessary steps to ensure compliance and risk management, members are encouraged

on 1800 888 479.

Important Dates:

FWC Annual Wage Review 2023-2024

On 28 March 2024, MGAIBA submitted its recommendation to the Fair Work Commission for the Annual Wage Review 2023-2024. After careful consideration of member feedback, we have advocated for a 2.7% wage increase in both the General Retail Industry Award (GRIA) and the Timber Industry Award (TIA) for the year 2024. This recommendation aims to support employees while safeguarding the economic stability of independent businesses, particularly in the face of escalating operational costs. We are concerned that by increasing the minimum wage beyond this amount will likely lead to decreased employment opportunities, significant increases in the price of goods (thereby exacerbating inflation) and even business closures.

Read the full submission.

Merger Law Reform

In response to the Treasury consultation paper on merger reform, MGAIBA submitted recommendations aimed at revitalising competition within concentrated markets. Our submission advocates for four key reforms to be implemented.

1. We propose amending the mergers test to prevent ‘serial’ acquisitions that significantly reduce competition.

2. We recommend making it clear that mergers that make markets even more concentrated should be considered as reducing competition significantly.

3. To prevent mergers from slipping through regulatory scrutiny, we propose mandatory notification for all mergers where the combined market share of the parties exceeds a threshold, such as 40%.

4. We suggest changing the rules for evaluating mergers.

a Firstly, we think the rules should consider ‘strategic barriers to entry’ to prevent actions that might push competitors out of the market or make it hard for new businesses to enter.

b Secondly, we propose adding a new rule to look at the importance of assets like data and technology that are involved in the merger.

These recommendations aim to promote fair competition and safeguard against anti-competitive practices in merger activities.

Access the full submission here.

Inquiry into supermarkets says make voluntary code of conduct mandatory but don’t bring in divestiture power

The food and grocery code of conduct should be made mandatory to help rectify the heavy imbalance between suppliers and supermarkets, an inquiry by former Labor minister Craig Emerson has recommended.

Emerson says in his interim report, released on Monday 8 April, that the mandatory code should apply to all supermarkets with annual revenues of more than $5 billion (indexed for inflation). This would cover Coles, Woolworths and ALDI, and wholesaler Metcash.

As well, the code “should be strengthened to better protect suppliers, with new protections against retribution, since suppliers’ fear of retribution compromises the code’s effectiveness,” the report says.

It says while many stakeholders said the voluntary code, introduced in 2015, had improved the supermarkets’ behaviour, the inquiry heard “many examples of opportunistic behaviours persisting”.

The voluntary code doesn’t contain penalties. Although it provides for compensation for suppliers (up to $5 million) if a code arbiter finds in the supplier’s favour, no compensation has been awarded. Since the

beginning of the disputeresolution provisions in 2021, only six disputes have been lodged with code arbiters.

The voluntary code applies only to supermarkets that elect to be bound by it. The inquiry says for the code to be effective it needs “to capture as much adverse conduct as possible, be subject to the credible threat of effective enforcement and not be undermined by the threat of signatories walking away from their commitments”. Only a mandatory code could achieve this, it says.

The report makes a number of firm recommendations, that won’t change, and others on the detail of which it will consult with stakeholders before the final report goes to the government mid-year.

To enforce the mandatory code the Australian Competition and Consumer Commission would be able to seek penalties of up to $10 million, 10% of a supermarket’s annual turnover or three times the benefit it gained from the breach – whichever was the greatest.

But Emerson – who served as competition minister in the former Labor government – says relying on legal proceedings alone wouldn’t be effective, and he proposes “a low-cost alternative” as well.

This would replicate processes for independent medication and arbitration operating in other industries, while also allowing for the way complaints are handled under the present voluntary code.

Supermarkets would be strongly encouraged to pay compensation where that was recommended, which could be capped at $5 million.

Among the firm recommendations is that the code should have more emphasis on addressing the fear of retribution. Also, supermarkets “should ensure that any incentive schemes and payments that apply to their buying teams and category managers are consistent with the purpose of the code”.

The draft recommendations on which the inquiry will consult are that the mandatory code should include informal, confidential and low-cost processes for resolving disputes, providing options for independent mediation and arbitration – various suggestions are made on how this could be done

supermarkets are encouraged to commit to pay compensation of up to $5 million to resolve disputes, where that is recommended specific obligations under the code should set minimum standards that cannot be contracted out of in supply agreements

the government should consider increasing infringement notice amounts for the code.

The inquiry rejects the recommendation from former ACCC head Allan Fels’ inquiry into price gouging for a power to force divestiture to address market power issues.

Divestiture could result in greater market concentration, or other problems, the Emerson report says. “This review’s recommendations to make the code mandatory, with heavy penalties for major breaches will, alongside effective enforcement of the existing competition laws, constitute a far more credible deterrent to anti-competitive behaviour than forced divestiture laws.”

Author Michelle Grattan

Professional Fellow, University of Canberra

Disclosure statement

Michelle Grattan does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

This article is republished from The Conversation under a Creative Commons license. Read the original article

Submission on behalf of our members

As part of MGAIBA’s submission to the Food and Grocery Code of Conduct review, we emphasised responsible business practices.

However, we also expressed concern over the increasing regulatory burden on independent grocery stores, especially amid challenging trading conditions and the economic pressures faced by businesses and consumers in the current cost of living crisis.

Advocating on behalf of our members, we oppose extending the Code to smaller retailers due to limited capacity to manage additional compliance burdens. For further details, read the full submission below.

New research on small business cybersecurity

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New research from the Council of Small Business Organisations Australia (COSBOA) and Cyber Wardens provides deep insights into what motivates cyber secure and insecure behaviour among small businesses.

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For one, the research found that 50% of Australian small businesses see cyber security as a high risk to their business in the next five years, while 45% see cyber threats as a low to non-existent risk, highlighting the significant divide in attitudes around cyber risks.

Furthermore, while 67% of small-business owners/ CEOs and employees say that major cyber-attacks on big companies have made them think more about cyber security, this has not necessarily spurred small businesses to do more towards protecting themselves. In fact, 61% of small businesses are not talking about cyber security regularly and four in 10 small businesses have little to no confidence in their ability to respond to a cyber threat.

Even when small businesses see the value in embracing a culture of cyber security, the research notes that they still face several barriers, such as not knowing where to begin with cyber security, feeling of intimidation by technical jargon, being overwhelmed by not knowing what steps to take, and doubtful that they have the time, resources and digital literacy to protect their businesses against cyber threats.

Given these challenges, 86% of small-business owners and employees have expressed keen interest in a program that simplifies cyber security and renders it attainable for businesses of all sizes. Moreover, there’s a resounding acknowledgement of the value of having team members adept at identifying and responding to cyber threats.

The findings were released on the occasion of the launch of the COSBOA Cyber Wardens program, which seeks to address the pressing need for simple and achievable cyber security measures tailored to small businesses, with resources to support building a culture of cyber safety in Australian small businesses.

“This new data shows us that small businesses simply cannot fall into the trap of thinking they’re too small to be a target for cyber criminals,” COSBOA CEO Luke Achterstraat commented. “It is important for small businesses to remain aware of the increasingly acute risk of cyber-attacks. COSBOA’s Cyber Wardens program can help give small-business owners the skills to help mitigate the risks.”

CommBank Executive General Manager, Small Business Banking, Rebecca Warren said acknowledged that small businesses are very time-poor and that this can make them an easier target for cyber criminals.

“Cyber security can seem very complex, so it’s easy to see why some find it overwhelming, which is why education is crucial in helping people realise the dangers that are out there, and how to protect themselves against it,” Warren said.

Telstra Chief Information Security Officer, Narelle Devine, states “cyber criminals are notoriously persistent and are constantly adapting their techniques to target all types of businesses and individuals”.

“No one is immune from the threat, which is why cyber security must be a team sport and a permanent mindset,” Deveine said. “Building support with a strong team culture where cyber security is everyone’s responsibility is critical. The Cyber Wardens program is helping equip Australian businesses to better protect themselves by pairing critical technical know-how with a focus on behaviour change.”

Learn more about the cyber wardens program at CyberWardens

Media Release COSBOA CEO Luke Achterstraat

MGA has worked together with William Angliss Institute to tailor a suite of courses that will give you access to accredited, industryleading training from compliance courses to management offerings. These short courses will equip you and your staff with the skills and certification you need to remain compliant. Visit: MGAIBAShortcourses

Winning smiles all around for Saints Foodland

Congratulations on winning the title of World’s Best Supermarket

A wonderful accolade for this amazing store to win IGA Supermarkets International Retailer of the Year in Las Vegas in early March.

Recognition among more than 6000 independent retailers from around the globe, reflects the passion and commitment to exceed customer and supplier expectations again and again.

Foodland Supermarkets CEO Franklin dos Santos said Saints Foodland has continued to drive its mission to deliver South Australians with an elevated, premium shopping experience. “We are incredibly proud of the Saints Foodland store which has reached the pinnacle of the retail industry and once again puts Foodland on the global stage,” Mr dos Santos said.

MGAIBA congratulates the John Chapley Group and team at Saints Foodland for continued support of their customers with world class service every day.

Source: story Saints Foodland LinkedIn. Images: Saints Foodland Facebook and Instagram

The Brehenys are the most influential family in Australian Brewing History with eighteen different Breheny brewers working in dozens of breweries from 1864 until 2022.

In 1891 ‘Breheny Bros. Breweries’ was established and barrels of tasty ale were made and enjoyed by thirsty drinkers around Australia until the 1930s.

Over one hundred years later descendants of the Breheny brothers found the original family recipe books from the 1920s. From these recipes a range of easy drinking beers are now available to quench the thirst of mainstream beer drinkers across Australia.

Orders can be placed through ALM or Paramount or direct via www.brehenybros.com

Whites IGA 30 years of fresh and local

If

you live on the Sunshine Coast, chances are, you’ve visited a White’s IGA store.

While now a much-loved brand, nown for championing local products and elevating exposure for Coast businesses, the White’s IGA story comes from the humblest of beginnings. Thirty years ago, Roz and Michael White took their first steps into the world of groceries and retail.

With a team of just three employees, the pair ran the seven-days-a-week NightOwl, located in the heart of Maroochydore. It’s in this small but bustling little store that the first sparks of the White’s IGA Group were ignited.

Fast forward to 2024 and White’s IGA Group now operates six successful stores with a growing team of highly skilled and passionate grocers. Every store showcases the Locavore program – a movement that supports producers, suppliers and community throughout the Sunshine Coast and beyond.

“Our Locavore program is something that is totally distinctive to our six supermarkets,” Roz White says.

“It helps customers to easily identify the abundant range of locally sourced, grown and produced grocery goodies.

“When food is sourced locally, it travels less distance and stays almost as fresh and nutritious as the day it was plucked from the soil, trees or plants.

“It also puts dollars back into our community and supports Sunshine Coast families.

“Our Locavore philosophy fits with the White’s culture of creating sustainable communities with purpose.

“Our stores source and stock 35 per cent of store purchases from local growers, producers and independent suppliers. A store such as IGA can’t survive without the support of the local community and we’re proud to support those who support us.” sausage sizzle, free face-painting for the kids, a coffee van and fairy floss.

Source: Whites IGA. Main image above, Roz and Michael White. Image below and image top of page 13, the interior of Whites IGA stores.

A sustainable future for all

Another core part of the White’s IGA value system is the focus on improving sustainability.

This applies to the machinery and technology the Whites use, the suppliers they partner with and how they support sustainable lifestyles for their team.

Environmentally friendly and energy efficient refrigeration, LED lighting and recycled water heating are all part of the White’s IGA eco-friendly approach.

30 years in the blink of an eye

1993: Roz and Michael buy the Maroochydore NightOwl store.

1997: A second NightOwl is ought in Mooloolaba.

2002: Roz and Michael take over a modest corner shop in Mt Coolum.

2004: Bli Bli IGA becomes White’s IGA.

2005: IGA Tin Can Bay was purchased.

2006: IGA Rothwell was the first new store built.

2007: White’s Grocers acquire the Mooloolah Valley store.

2013: After a renovation and rebuild, IGA Bli Bli reopens its doors as White’s Supa IGA Bli Bli.

2016: The purpose-built White’s IGA Peregian Beach opens for business.

2019: The new White’s Supa IGA Baringa begins trading in Aura.

2022: White’s IGA Forest Glen opens its doors.

Drakes celebrates 50 year milestone birthday

expansion [over the last few years], we remain focused on the important aspect of the supermarket business – our customers, striving to always provide superior customer service.”

With humble beginnings as a small, three-laned supermarket in 1974, the South Australian family owned and operated business has become Australia’s largest independent grocery retailer with over 65 stores across South Australia and Queensland, employing over 6,000 staff nationwide.

Reflecting on his 50 years in business, Roger Drake, Managing Director and Founder of Drakes, expressed gratitude to his supportive customers and hardworking staff. He attributes Drakes’ success to the unwavering commitment to their customers and dedication to giving back to the South Australian and Queensland communities in which they operate.

“Our customers are the most important people in our business” Roger Drake states, “Drakes’ strength lies in operating on the principles of supporting local manufacturers, farmers and suppliers. Despite our

John-Paul Drake, second generation Director of Drakes, recalls growing up entrenched in the family business, securing his first job at the age of 11 as a trolley collector. Watching and learning from Roger as he built the business from the ground up, John-Paul has a healthy respect for his dad and the team who have helped Drakes to grow into the success story it is today. He promises that Drakes will always remain a family business, with three generations of Drakes family members currently working in it.

“Drakes is long term and generational. This isn’t a business that’s been built for me or my kids – it’s for the future. We will always be a family business with family values that extend beyond our team, but our corporate structure will ensure that the decisions made are the most responsible ones security of our entire ecosystem” said John-Paul Drake. “It has been, and continues to be, a privilege and a responsibility to lead the best team in the business.”

“Roger’s best-known saying to our team is ‘I am not your boss, the customer is your boss, for without customers, none of us would have a job!’ I like to remind him of this when he tries to tell me off for something! But this really sums up the values of our business – to be customer led. We want to provide our customers with exceptional service, value for money, great range and an outstanding shopping experience. “We’re all about choice” he adds.

Drakes boasts one of highest staff retention rates in the industry with almost 800 staff with 10 or more years’ service with 7 having dedicated over 40 years working in the business.

“We are committed to the growth of the Drakes business, to serve Australians for generations to come” said Roger Drake, “Since the business commenced in 1974, we have employed over 50,000 staff; and customers often tell me that they have a family member or know someone who has worked in one of our supermarkets. I can assure you, we will be employing people from our local community for generations to come”

“We understand that for many of our team members, working in our stores will be their first job before they move into their chosen field. It’s our goal to ensure that when you see Drakes on a resume, you know that team member has come from good foundations,” adds John-Paul.

About Drakes

Drakes is a family owned and operated grocery retailer of 66 stores across South Australia (44) and Queensland (22). Drakes is Australia’s largest independent grocery group employing over 6,000 people with a turnover of more than $1Billion annually. Drakes remain committed to supporting local suppliers, farmers, and the local community.

In September 2019, Drakes opened their $125 million, state of the art Distribution Centre in Edinburgh North, signifying the official beginning of their independence.

The Distribution Centre fully funded by Drakes, is equivalent to 3 times the size of the MCG or 40 Olympic sized swimming pools, utilising $15 million worth of robotics and houses over 23,000 separate lines of products. It is the most advanced independent distribution and logistics centre of its kind.

A further three distribution centres service Drakes stores: their Fresh Produce distribution centres in Pooraka and Rocklea and Meat Distribution centre in Beverley.

Drakes opened four new stores in 2022 including Proserpine (QLD), Mundubbera (QLD), Yankalilla (SA) and Gawler East (SA) and an additional two stores in 2023 - Aston Hills in Mt Barker (SA) and Lightsview (SA); with plans to grow their store footprint to at least 80 stores by 2027.

Integral to Drakes’ sustained success is the company’s dedication to nurturing enduring, fair and personal relationships with suppliers who align with its commitment to quality, reliability and innovation. These partnerships ensure efficiency of the supply chain and play a pivotal role in consistently delivering fresh and locally sourced products to customers.

Drakes Supermarkets is trialling GPS trackers on meat products at two of its stores.

Drakes is trialling GPS trackers on packages of expensive cuts of meat at two of its stores in a bid to prevent theft.

Drakes Supermarkets started trialling the polycarbonate containers in March.

Director John-Paul Drake in an interview with ABC Radio Adelaide said that the containers alerted staff if removed from a store without payment.

He said the containers were being trialled at its North Haven and Eyre stores with expensive meat products like Wagyu steaks.

“We’re talking about meat that ranges from $50 to $100 per kilo, so it is the highest-end meat that we have,” Mr Drake said.

“If that person leaves the store, let’s say they accidentally forgot to pay for this massive box of meat that they walked out with, then the store would be notified.”

Mr Drake said it was hoped to help address the $12 million in theft from Drakes stores each year.

“The containers cost $35 so, every time we get one of these containers, we have to pay $35 and it just adds up,” he said.

“It’s like having security in your store 24/7.”

Source: Joshua Boscaini ABC .Read the full story here

MGA Independent Businesses Australia has an embedded Employment Law team.

Our service builds internal capacity and expertise that allows for a deep understanding and experience around those issues that affect members each and everyday.

Members requiring assistance or advice should contact the Employment Law team on 1800 888 479.

Rent Logic: How a fixed increase beats CPI increase for commercial spaces

When it comes to entering a Lease on a commercial space, there’s always the question of how to handle annual rent increases. Some Landlords like to tie the rent to changes in the Consumer Price Index (CPI), while others prefer to keep it simple with fixed increases. Let’s break down the pros and cons of both approaches and why sticking to fixed rent increases might be the smarter move.

CPI in Leases: Keeping It Fair

So, what’s the deal with using CPI increases in commercial Leases? Well, it’s a way to adjust rents based on how prices for goods and services are changing over time. This method can keep things fair and transparent between Landlords and Tenants, helping to avoid any disagreements over the need for rent increases. Plus, it can protect Landlords from losing out to inflation by making sure their rental income keeps up with rising costs.

However, there are some downsides to using CPI increases. For Tenants, it can mean facing unpredictable rent changes that make budgeting a headache. And for Landlords, relying solely on CPI might not always cover their actual increasing expenses, leading to financial strain. That’s where fixed rent increases come in as a more stable and predictable option.

Steady Rent Rises: Planning Ahead

Negotiating fixed rent increases means setting a specific amount for rent increases each year, giving both Landlords and Tenants a clear picture of what to expect. This predictability helps with long-term planning and budgeting, benefiting everyone involved. It also helps Landlords keep pace with their costs without having to worry about fluctuating CPI numbers.

Tenant Tranquility: Predictable Rent Bumps

For Tenants, fixed rent increases provide peace of mind, knowing exactly how much their rent will go up each year. This makes it easier to budget and avoids any sudden spikes in rental costs. It can also lead to better relationships between Tenants and Landlords, as everyone knows what to expect.

In the end, while CPI increases offer flexibility and transparency, opting for fixed rent increases could be the way to go in commercial Leasing. With stability, predictability, and protection against inflation, fixed increases can make life easier for both Landlords and Tenants. By finding the right balance between the two approaches, Landlords and Tenants can create Lease agreements that work for everyone in the long run.

Talking to Landlords: Dealing with CPI

If you find yourself in a situation where a Landlord insists on CPI increases in a commercial Lease, it is essential to approach the situation tactfully and strategically. Here are some steps to consider.

When a Landlord pushes for CPI increases, it is important to try to understand their stance first. You might decide to negotiate by suggesting compromises like capping CPI boosts or proposing fixed increases or a combination of both. Additionally, you could offer alternatives for stability, such as fixed rent adjustments. We recommend seeking advice, if negotiations get tricky. Above all, it is important to evaluate the Lease terms carefully and consider flexibility, if CPI increases are non-negotiable. And last, but not least, keep everything in writing for clarity.

Remember that open communication, understanding the Lease terms and exploring options, can help navigate a situation where a Landlord insists on CPI increases in a commercial Lease. Throughout each Lease negotiation, it is important to approach the situation professionally and seek mutually agreeable solutions whenever possible.

New Digs Hunt: When Leases Hit Snags

If negotiations stall over CPI increases, exploring other commercial premises may be a better and more strategic option. Finding a Lease that better fits your budget and objectives, can promote financial stability and operational efficiency. Moving to a space with more favourable lease terms, may offer a solution to avoid potential financial strain and uncertainties linked to CPI adjustments.

Your Leasing Co. specialises in Tenant/Landlord communication and representing Tenants to negotiate favourable lease terms. If you have any questions or need any help to get the best outcome from your Lease, you can call us for a free, no obligation conversation on 1300 356 702.

THE HEART OF QUALITY

If you suspect it, REPORT IT!

The Commonwealth Government recently pledged a major crackdown on illegal tobacco, committing almost $190 million for Border Force and Federal Police targeting Australia’s multi-billion dollar illicit tobacco market.

The Australian Border Force will be handed the extra funds over the next four years in a move that will see federal, state and territory agencies working in a coordinated effort to tackle all aspects of black market tobacco.

Since mid-2023, a total of $312 million in new resourcing has been announced by governments across Australia to address illicit tobacco and illegal vapes. This includes:

$188.5 million: Australian Border Force to deliver a partnership with states and territories to address illicit tobacco.

$75 million: $25 million to the Australian Broder Force to increase enforcement activities at the border and $50 million to the Therapeutic Goods Administration (TGA) to design and put in place the new vape permit regulation system.

$13.3 million: Compliance activity to crack down on the black market in nicotine vaping products and tobacco products.

$28.4 million: Reducing vaping in Queensland. This includes $2 million in 2023-24, and then $5 million annually, to support Public Health Units to better enforce vaping laws and establish a joint taskforce with the commonwealth.

$6.8 million: The NSW Government will invest in a crackdown on the sale of illegal vapes and increase for support for young people who are addicted to vaping. This includes $4.3 million to bolster compliance and enforcement.

As the cost of legal tobacco products continues to rise, serious and organised crime groups are taking advantage of the opportunity to make more unlawful profits, this funding will help bolster the disruption and deterrence of illicit tobacco in Australia.

Retailers choosing to become involved in the illicit tobacco trade are committing a crime. The sale and supply of illicit tobacco damages the livelihoods of honest retailers and communities alike. If you Suspect It, Report It at

Build the bond through the sense of cooking

Food is a magnet to get customers into the store. The smell of freshly baked pastries and loaves of bread could be your natural advertisement for the market without extra effort or cost.

Unox manufactures a range of innovative products that can be used every occasion. UNOX products are designed to fit the needs of all professionals working within the Supermarket and food service industry. Unox always has a perfect solution for your kitchen needs.

Whatever your goal may be, the result will always be perfect. Without compromise.

Unox ovens are made up of the same ingredients you insist on: uncompromised quality, innovative and bold choices, proven and measurable efficiency and reliability. Investing in innovation means seeing everyday challenges in a whole new light: from giving value to every single gesture to the simplification of the entire production process.

Unlike many other manufacturers, we offer the knowledge and guidance to help these businesses get the right machine to achieve the required outcome. Unox also offers help designing a tailored food offering for each business. We take care of your business with service, training, and ongoing support.

In retail, using space and time management are the secrets of success. UNOX ovens will grant you the best performance with the minimum footprint. Our UNOX

cooking stations and trolley ovens will maximise your productivity, optimise your workspace and maximise your return on investment. For you, this means maximum performance, freedom, ease of use and savings.

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Learn more at eftposaustralia.com.au/lcr

Interested? Contact UNOX for more information.

Driving growth and collaboration at IGA VIC State Conference

The 2024 IGA Victorian State Conference convened from 26 February to 1 March in the scenic Tasmanian capital of Hobart. Hosted at the Crowne Plaza Hotel, the event featured a comprehensive program aimed at providing valuable insights to the 120 attending delegates.

The conference commenced with an informal welcome cocktail party at the elegant AURA room of the Crowne Plaza Hotel, where Rob Pistritto, General Manager of METCASH, introduced the conference theme of ‘Driving growth by unlocking customer value’.

Throughout the three-day event, attendees were treated to a series of enlightening keynote speeches and engaging workshops. Notably, MGAIBA CEO, David Inall, and National Manager Licensing, George Kovits, addressed delegates on various topics, including recent rebranding and updates in employment law. A significant focus of their discussion centred on the issue of illicit tobacco, highlighting our decadelong dedication to addressing this complex issue on behalf of our members. Efforts such as letter writing campaigns, collaboration with other business entities, and strategic engagement with

key stakeholders in Canberra, including the Police Federation and Minister for Home Affairs, have been instrumental in raising awareness and advocating for solutions on behalf of our members.

Other keynote speakers included:

Hesh Syed Commercial Manager IGA Network

Growth Strategy - building a competitive, sustainable network.

Murray Gneil Retail Operations Manager

Leveraging NOTF compliance to drive sales/SQM growth and unlock customer value

Andrew North Logistics Operations

Project Arrow Update -Truganina to support the IGA Network Growth plan.

Belinda Fry Merchandise and Marketing Manager

Stretching the boundaries - driving customer value through Category Management, Price Competitiveness, and Events

Jeremy Goodale ALM GM

Leveraging liquor to unlock customer value - Southern Region

The conference ended with a memorable farewell dinner at Peppermint Bay, allowing delegates to network, reflect on insights, and build lasting connections. Networking sessions were invaluable, facilitating idea exchange and insights from peers and experts.

Photographs opposite page, from top: Andrew North, Metcash. Middle: David Inall, CEO MGAIBA. Bottom: George Kovits, Manager National Licensing, MGAIBA.

This page, from top: IGA delegates gather at Peppermint Bay farewell dinner. Jeremy Goodale, ALM GM. Farewell dinner greeting. Jeff Harper far right, MGAIBA Board Member with Michael Zervakis MS owner. Bottom: Lincoln Wymar, Board President MGAIBA alights the Red Decker bus behind Michael Zervakis.

Australian United Retailers raises a glass with Liquor Conference first

More than 110 retailers and suppliers attended Australian United Retailers’ inaugural Liquor Conference, including the who’s who of the nation’s beer, wine and spirits industry.

Held in the Barossa Valley in South Australia during March, the conference was based at the Novotel Hotel and featured business presentations, tastings and networking as well as visits to some of the region’s premier wineries.

Guest speakers included wine editor, custodian and educator George Samios who delivered an entertaining update on the latest wine trends.

Representatives from CUB and Lion provided insight into the outlook for the beer industry while CCEP and BrownForman presented on the Spirits and RTD markets.

Every topic was covered - from market conditions, NPDs and promotional programs to shelf labelling and general costs of doing business.

It was also an opportunity for retailers and suppliers to hear an update on the future strategy of Australian United Retailers, which has experienced strong recent growth across the liquor retail brand LiquorWorks.

An independent freestanding brand, LiquorWorks provides retailers options outside of the grocery space to focus on owning and operating a specialised liquor offer.

The event’s social calendar was packed with trips to Penfolds, Jacob’s Creek, Wolf Blass, Chateau Tanunda and Seppeltsfield as well as a welcome dinner and cocktails held at the Novotel Hotel.

Radio and television star Merrick Watts (above) closed off the formalities, combining his infectious humour with his wine expertise to leave everyone on a high.

Australian United Retailers national operations manager, Robert Markezic said the feedback on the event from attendees was overwhelmingly positive.

“This was the first time we’ve held a dedicated liquor conference and the event exceeded all our expectations,” Robert said.

“It provided a great opportunity for those attending to hear the latest market insights and trends as well as share stories and experiences.

“We had about 70 retailers, 30 suppliers and a number of our own support staff attend.

“Being an intimate, boutique-sized event allowed for more personal networking with fellow operators and key suppliers in the industry.

“It was a great few days packed with engaging presentations and fun social activities in a spectacular setting.”

The strong response to the conference has Australian United Retailers already planning for next year’s event.

Metcash appoint new CEO of ALM

Kylie Wallbridge has been appointed CEO of the Australian Liquor Marketers (ALM) following the earlier retirement of Chris Baddock as CEO of the Liquor pillar due to health reasons. Kylie took over from Acting Liquor CEO, John Barakat in March 2024.

Kylie is a very experienced executive with deep knowledge and understanding of the Australian and global liquor industries.

She has more than 25 years of commercial, brand and marketing experience and most recently held the title of Managing Director at Diageo in the United Kingdom. In addition to Diageo, Kylie has worked for multinational liquor organisations and brands including Heineken for thirteen years and Lion for seven years, in several senior roles across Africa, Asia and Australia.

Metcash CEO, Doug Jones said: “Kylie is a proven business leader with a track record for delivering results. Her alignment to our purpose of Championing Successful Independents and her passion for people is evident through her strong relationships with both retailers and suppliers. I

have no doubt Kylie will be a great asset to the Liquor pillar and Metcash more broadly. We warmly welcome her to Metcash. I would also like to sincerely thank John for acting in the role following the retirement of Chris last October.”

The Board of MGAIBA and Liquor Retailers Australia (LRA) National Committee wish Kylie every success in her new position and look forward to working with her and her team to continue to build on a successful independent liquor sector.

Leigh Ritchie:

Hyoketsu Lemon sales skyrocket in Australia

Sales of Hyoketsu Lemon have surged above Lion’s projections in Australia, selling more than five million cans since launching in August 2023.

Australia is the first country outside of Japan to experience the popular premix drink. Following its success, two new flavours – Peach and Pineapple –were recently added to its Australian line-up.

Crafted with frozen natural peach and pineapple juice, vodka, and soda, Kirin Hyoketsu’s Peach and

Pineapple flavours are created using the same proprietary Hyoten Toketsu technology as the Lemon flavour, with freshly squeezed juice frozen at below 18 degrees, to lock in an intense, sweet yet crisp finish. The drinks contain 6% alcohol, 0.7g of sugar, and only 116 calories.

Lion Brand Director RTD Penni Terrey said: “The success of our Lemon flavour in Australia has motivated us to continue delivering innovative and refreshing ready-to-drink beverages. We believe these new additions will further enhance the Kirin Hyoketsu experience in Australia.”

Hyoketsu’s success follows Suntory’s -196 Double Lemon being hailed as the company’s most successful Australian launch ever.

Suntory launched the brand in its first international market –Australia – in 2021, adapting its taste and packaging design to suit local preferences. It aimed to disrupt the seltzerobsessed Light RTD category with -196 and become a top three brand by 2030. Its distinctive ‘Extreme Japanese Spirit’ campaign established -196 as the No.3 Light RTD in Australia within one year of launch, outselling White Claw and Smirnoff Seltzer in the process.

The Japan Times reports that Kirin Holdings will sell its Kirin Hyoketsu Lemon beverage in kegs to restaurants and bars in Australia following the strong reception the canned drink’s launch received last year.

“The company hopes to make chūhai, or low-alcohol drinks containing spirits and soda, its key products overseas amid the shrinking domestic market for beer and quasibeer drinks,” the newspaper said.

Australia will be the first market in the world to sell the product in kegs.

Source: Drinks Digest 10 April 2024

Australian style yoghurt

IHG acknowledges ‘Best of the Best’ at 2024 Expo

‘Stronger together’ at 2024 expo

The Independent Hardware Group (IHG) united once again at their 2024 IHG Expo, held on the Gold Coast from February 12 to 14. The ‘Stronger Together’ theme not only reiterated the strong unity of the group evident at this year’s event, but also celebrated the group’s commitment to ‘Building Successful Independents’.

With just under 2000 delegates in attendance, including 400 stores representing over 82 per cent of IHG’s total sales volume, the IHG Expo brought plenty of buying power to the event, ready to deal with the 225 suppliers in attendance.

The theme ‘Stronger Together’ was shared with members and suppliers who had gathered to understand how IHG’s strategy and key business objectives would be executed over the next 12 months and beyond.

Addressing delegates during the week, IHG Chief Executive Officer Annette Welsh said “Our current strategy is to remain consistent and consumer-driven because it is working. Our mission is to build successful independents. This is underpinned by making sure we have great people on board as well as ensuring we invest in technology that future-proofs us and enables us to be here in 10-, 20- and 50-years’ time.”

IHG’s awards of excellence

As part of the event, the IHG awards of excellence were presented to honour the most outstanding achievers. Congratulations to all the winners for their remarkable accomplishments this year!

Supplier Award winners included:

2023 FINISH & EXTERIOR SUPPLIER OF THE YEAR – Dulux Australia (Recipients for the second consecutive year)

2023 BUILD SUPPLIER OF THE YEAR – Hume Doors & Timber

2023 FIX & FITOUT SUPPLIER OF THE YEAR – Makita Australia (Recipients for the second consecutive year)

Individual Award winners included:

2023 Paul Murphy ‘MIGHTY HELPFUL’ SERVICE AWARD – Laurence Moidin – Sunshine Mitre 10 Bundaberg

2023 BLUE BLOOD AWARD – Roger Cook

2023 CEO RECOGNITION AWARD – Peter Womersley of Womersley’s Mitre 10

Store Award winners included:

2023 VILLAGE OF THE YEAR – Northern Independents from New South Wales (Recipients for the second consecutive year)

2023 CONVENIENCE STORE OF THE YEAR –Kootingal True Value Hardware – Steve and Paul Summers

2023 SMALL STORE OF THE YEAR – Dunsborough Mitre 10 – Trent and Kristin Wilson

2023 HOME HARDWARE STORE OF THE YEAR –Home Timber & Hardware Biloela – Tim Kessler and Ken Hutton

2023 MEDIUM STORE OF THE YEAR – Wills & Co Mitre 10 Waikerie – Michael and Sharee Wills

2023 GARDEN CENTRE OF THE YEAR – Benalla Mitre 10 – Brad Collett and Stacey Stylianou

2023 TRADE CENTRE OF THE YEAR – Barossa Mitre 10 – Barossa Co-op – Craig Dodman

2023 LARGE STORE OF THE YEAR – Permewans Mitre 10 – Paul & Denise Bast

Barry Rosenberg inducted into the IHG Hall of Fame

THA extend our heartfelt congratulations to Barry Rosenberg, a member of Timber & Hardware Australia, for his induction into the IHG Hall of Fame.

Barry is the head of Provans Mitre 10 which has thrived within the same family for three generations under both the Mitre 10 and Home Timber & Hardware brands. He was joined on stage with wife of 53 years Sarah, son Jarrod, daughters Marnie and Emma – and his grandchildren. Jarrod and Marnie also work in the store full-time.

“Provans was established in 1903 as D. Provans and Sons Timber Merchants. David Provans left a legacy of a trusted name in the industry. Barry’s father bought the business in 1966 and asked his 19-year-old son, Barry, if he would like to run a timber yard. The rest is history,” Marnie said.

As the business moved from being a joinery to a timber and hardware merchant, Barry became wellknown for his ability to build strong relationships with suppliers and customers. These relationships have kept the business in good stead throughout so many challenges and will continue to for many years to come.

Read the full article at hardwarejournal.com.au.

Images from top: Barry Rosenberg Provens Mitre 10. Middle, L-R: George Kovits, Manager National Licensing MGAIBA with David Inall, CEO MGAIBA. Bottom: Northern Independents from NSW 2023 Village of the Year.

Tense times for timber

New South Wales is under pressure to align with other states and to cease native forest logging. Victoria has already called a halt to such logging this year following decisions by the former Andrews’ Government.

The repercussions of the RussiaUkraine war reverberate across global industries, and the timber markets are no exception. Russia, previously a major source of softwood lumber and hardwood, has experienced a significant drop in exports due to bans imposed by Western nations on commodity exports. This conflict has helped to propel the Global Hardwood Fibre Price Index (HFPI) to its highest level in over a decade.

China, a significant driver of global wood product demand, is grappling with a real estate crisis, exacerbated by the collapse of its largest developer, Evergrande. In 2023, Canada faced its most devastating wildfire season in modern history, resulting in over 18 million hectares of burned forest, as reported by Natural Resources Canada. The Quebec Forest Industry Council (QFIC) estimates a financial impact of approximately C$13.5 billion on Quebec’s sawmilling industry alone. Some European countries are already compensating for the drop in Canadian production by increasing lumber imports to the US.

Researchers at the University of Queensland have identified that a mere 5% improvement in timber production efficiencies could facilitate the construction of an additional 8,000 homes annually in Australia. Mass timber is in high demand globally due to its competitive pricing, its contribution to rapid construction, and prefabrication, and assembly

systems. However, the drive towards achieving net zero emissions by 2050 may lead to a surge in global demand for timber, potentially exacerbating illegal logging in developing countries due to supply constraints, according to the World Bank.

The building industry in Australia is currently experiencing high levels of insolvencies, largely driven by factors such as fixed-price contracts that did not anticipate inflation in building materials. Although many of these contracts have expired, builders’ net profit margins and cash flow have been severely impacted over the past two years, with lingering cash flow issues persisting.

The Australian Taxation Office (ATO), the country’s largest creditor, reports tax arrears amounting to $50 billion as of December 31, 2023. Consequently, the ATO has established a task force to liquidate companies with tax arrears if they fail to comply with repayment plans. ASIC reported a 40% increase in companies entering administration in February, the highest monthly figure since October 2015. Over the past year, 9,700 companies have entered external administration. Notable insolvencies in the building industry include Langdon Building, Porter Davis Homes, Mahercorp/ Urban Edge Homes, GCB Constructions, and RFC Group. Building approvals in Australia declined by 1.9% to 12,520 in February, with private sector dwellings, excluding houses,

experiencing a 24.9% decrease to 3,771, while private sector houses saw a 10.7% increase to 8,404. NCI received 129 claims in March and 145 debtor incident reports for the March quarter, encompassing issues such as cash flow problems, repayment plans, and dishonoured payments.

In conclusion, the intersecting forces of environmental advocacy, geopolitical conflicts, economic downturns, and industry challenges are reshaping the landscape of timber markets and construction industries globally. As nations navigate these complexities, there’s a growing imperative for sustainable practices, innovative solutions, and robust risk management strategies to ensure the resilience and viability of these vital sectors. Collaboration among stakeholders, investment in research and development, and proactive measures to address emerging threats will be essential in steering towards a more stable and sustainable future for the timber and construction industries worldwide.

NCI has partnered with MGAIBA to offer a program for members aimed at safeguarding trade receivables from debtor insolvency, non-payment, and preference demands. Inquire today for more information.

References: MarketWise Insights Reports, 2024. Global Timber Raw Material Market 2024-2026. Mitchell, Jason. 2022. Investment Monitor. Net zero could drive up the global demand for timber. Hopkins, Philip. 2024. Australian Rural & Regional News. End of an era for timber harvesting. ResourceWise, 2024. Leading Trends Affecting Global Forestry in 2024. Kehoe, John. 2023. Financial Review. ‘Beyond zombies’: Insolvency wave hits business far and wide. Clarke, Bernadette. 2024. ABC News. NSW one of last states to allow native forest logging, but timber business already facing ‘bankruptcy’.

Positive notes from ASH despite Victoria’s timber troubles

Despite all the upsets that 2023 brought to bear in Victoria, ASH has brought to light some of the upticks. Australian Sustainable Hardwoods (ASH) is an advanced manufacturer and operates one of the largest hardwood mills in Australia.

In 2023 the company produced more than 1.5 million products sold across three species – GoodWood, Plantation Oak, Glacial Oak with:

36% increase in sales of Glacial Oak

402,397 staircase components sold

3350 customers served through the Retail Centre

14,493,388kg of CO2 equivalent stored in long term timber products.

The MASSLAM area with 6050 MASSLAM members designed, pressed and CNCed 15 major commercial projects featuring MASSLAM and achieved EWPAA certification for MASSLAM SL35 and MASSLAM 45 –the only mass timber glulam in Australia to hold this certification.

The company also added a total of 4,688m2 of additional roof area for both manufacturing and storage spaces and developed 14,000m2 of new hardstand area in the airdry yard.

A major achievement though was launching its mass timber flooring solution – Advanced Timber Composite Floors.

ASH used extensive research and development to prepare ATC for market including acoustic performance, char tests, service penetrations, FRL and long-term serviceability.

To make all these things possible the company also onboarded 30 new employees resulting in a 17% increase to the workforce.

For 2024 the company will be launching Australia’s only 100% Australian-made, pre-finished engineered flooring, commissioning a new lean-manufacturing staircase component line and launching architectural joinery products in its new Plantation Oak range. And most importantly it will be installing its third mass timber CNC to significantly expand MASSLAM’s manufacturing capacity.ables us to be here in 10-, 20- and 50-years’ time.”

Source: Timberbiz January 2024

How to build a mentally healthy workplace

Ways small business owners can provide support to staff

As a small business owner, you’ll know the highs and lows of running your own company. While it can be incredibly rewarding, both mentally and financially, stress and challenges are not withstanding.

As an employer, you can face a range of unique challenges that can affect your mental health and the mental health of your staff.

Businesses have faced a number of challenges in recent years. If this has taught us anything though, it’s that fostering a healthy work environment is beneficial to everyone. And everyone across the organisation, no matter how big or small, has a role to play.

Small businesses are often familylike in nature, especially in smaller working environments such as retail and salons, so it’s only natural to become close with staff. That in turn can see you in a position to recognise when someone isn’t being themselves.

Supporting your team supports your business

When someone in your team is struggling, it is normal to worry about the impacts it will have on your business, but by supporting

your staff first, you will also support your business in the long-term.

It demonstrates that you value your staff and their wellbeing

If you support someone during a hard time, it will promote a sense of loyalty to your business

It will create a more open and inviting work place It will encourage others to speak up if they are struggling Reduce legal risk

What are the benefits of an R U OK? Culture in the workplace?

It supports your legal responsibilities

Under the Workplace Health and Safety legislation, employers must reasonably protect the mental and physical wellbeing of their employees.1 Under model work health and safety laws, psychosocial hazards and risks are treated the same as physical hazards and risks. Proactively managing psychosocial hazards at work not only protects workers, it also benefits businesses by improving organisational performance and productivity.

It’s good for your organisation

During 2021-2022, mental health conditions accounted for 9% of

allserious workers’ compensation claims, a 36.9% increase since 2017-18. The median time lost was more than 4 times greater than that of all physical injuries and illnesses (2020-21). The median compensation paid for mental health conditions was more than 3 times greater than that of all physical injuries and illnesses.2

It’s the right thing to do Putting aside statistics, there is also a strong human reason for creating an R U OK? Culture in your workplace. Friends (including those at work) are one of the most important sources of encouragement and support for good mental health. In addition, low work-related social support is associated with an increased likelihood of mental health problems and/or prolonged work absence.1 1

The mid strength