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H O T E L I N D UAustralian S T RHotels Y Association YEAR BOOK Yearbook 2012 | 1


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PRIME MINISTER CANBERRA

MESSAGE FROM PRIME MINISTER JULIA GILLARD AUSTRALIAN HOTELS ASSOCIATION 2012 HOTEL INDUSTRY YEARBOOK

Australia’s first hotels were licensed by Governor Phillip in 1796. It was clear from the outset that this new country was going to be a thirsty one. More than two centuries later, our hotels remain an integral part of Australian life; places to relax, have a quiet drink and enjoy the company of friends, as well as a vital source of employment and activity. It’s important that governments of every level keep working with the industry to ensure our hotels are safe and happy places for patrons, neighbours and the wider community. Though we differ sometimes on how this may be achieved, our shared goal remains the same – a sustainable hotel industry that benefits our economy and our society. I therefore offer my very best wishes to all AHA members, suppliers and stakeholders as 2012 unfolds. I sincerely hope it will be a year of achievement and success for you all.

The Honourable Julia Gillard Prime Minister of Australia


Contents

Message from the Prime Minister................... 3 Message from the Opposition Leader ............ 5 Origins of the AHA .......................................... 6 Australian Hotels Association’s Objectives ... 7 National Life Members .................................... 8 National Board Members and Staff................ 9 Current National Policy Issues..................... 10 National CEO’s Report ................................. 12 Interview with the National President ....... 30 Labour Trafficking Awareness .................... 14 DIAMOND PARTNERS MESSAGES Hostplus ........................................................... 19 Diageo............................................................... 21 Tabcorp............................................................. 23 Coca-Cola Amatil ........................................... 25 LION ................................................................ 27 Carlton United Brewers ................................ 29

TOURISM ACCOMMODATION AUSTRALIA Message from the Minister for Tourism ..... 32 Message Shadow Minister for Tourism ..... 34 Message from Rodger Powell ...................... 36 Tourism Accommodation Contacts ............ 37 Tourism Australia ......................................... 39 AAA Tourism ................................................ 41 Food Safety ...................................................... 42 Service Skill Australia ................................... 43 National Tourism Alliance .......................... 45 NATIONAL CORPORATE PARTNERS ME Bank .......................................................... 47 APRA ............................................................... 49 DSICA.............................................................. 51 Treasury Wine Estates ................................... 53 AON ................................................................. 55 AHA NATIONAL EVENTS 2011 National Awards of Excellence ........... 56 Overview of the night .................................... 61 Spotlight on Winners ..................................... 62 Johnnie Walker Hall of Fame ..................... 63 National AHA Board Luncheon ................. 65 National AHA Golf Day .............................. 66

STATE BRANCH REPORTS New South Wales ........................................... 68 Victoria ............................................................. 70 Queensland ...................................................... 72 Western Australia ........................................... 74 South Australia ............................................... 76 Tasmania .......................................................... 78 Northern Territory ......................................... 80 Australian Capital Territory ......................... 82 Report on Gaming.......................................... 85 Monitoring smoking laws ............................. 87 Cultural Change ............................................. 89 ALM Regulation in hotels............................. 91 WORKFORCE ISSUES Workforce Development............................... 93 Employer Broker Program ........................... 94 Workplace Innovation Project ..................... 97 Work Health and Safety Harmonisation .100 Fair Work Ombudsmen..............................103 Disability Employment ...............................103 Building the hospitality workforce ............104 Mature workers.............................................105 Hospitality Group Training .......................106 Default Superannuation ..............................107 Employ Outside The Box ...........................108 Fair Work Act 2009 Review .......................115 Modern Awards Review 2012 ....................121 Hospitality Industry General Award 2010 ....................................125 Corporate Partners Directory .....................131


The Hon Tony Abbott MHR Leader of the Opposition Federal Member for Warringah

Message from the Leader of the Opposition, the Hon Tony Abbott MHR

AUSTRALIAN HOTELS ASSOCIATION Hotel Industry Yearbook 2012 I am pleased to offer this message to the Australian Hotels Association’s Hotel Industry Yearbook 2012. The Australian Hotels Association is the peak body for more than 5,000 businesses. Your members form a vibrant and dynamic part of the Australian economy. The Coalition well understands that we can’t have strong communities without strong local economies to sustain them. There are few local economies that don’t feature a hotel. There are a number of national issues which affect those in the hotel industry, from tourism policy to taxation concerns. In recent months, proposed gambling reforms have also become a key issue for the AHA and its members. The Coalition supports a measured response that doesn’t just look at poker machines but addresses the broader issue of problem gambling. The Coalition is wholly unpersuaded that a mandatory pre-commitment scheme will effectively address this problem. The hotel industry is very important to Australia. You are a part of nearly every suburb and town. You employ tens of thousands of young people. You provide a social focus for millions of Australians. As the Australian Hotels Association looks forward to 2012, I wish you and your members a successful year. Yours sincerely

TONY ABBOTT 31 January 2012 ________________________________________________________________________________________________________________ PARLIAMENT HOUSE CANBERRA ACT 2600 Telephone: 02 6277 4022· Fax: 02 6277 8562 www.tonyabbott.com.au


The Origins of the AHA

T

he AHA is the principal body representing most of Australia’s 6,000 hotels, which in turn collectively represent an industry with an annual turnover of $2.5 billion and employment of 300,000. But this powerful organisation comes from more humble beginnings long ago in Van Diemen’s Land, or Tasmania, where the Society of the Licensed Victuallers of Van Diemen’s Land was formed in April 1839. This historic event took place at a meeting held in the White Horse Tavern, which occupied a site on the corner of Liverpool and Elizabeth Streets in Hobart. Several preliminary meetings had been held at the tavern from 1836 when the idea of an organisation of licensed victuallers was first conceived. A general meeting of the trade was convened on 24 April 1839 where a committee and trustees were elected and membership fees were fixed at twenty-four shillings per annum together with a one-pound joining fee. In 1856, seventeen years after the movement was inaugurated in Hobart, a Licensed Victuallers Association was formed in Launceston. Although known as the United Licensed Victuallers Association, the two in fact remained independent until they amalgamated in 1959 to form the Tasmanian Branch of the Australian Hotels Association. This gives Tasmania the honour of producing possibly the oldest employer

organisation in Australia. The only other organisation which could possibly contest this claim would be the printing industry. Victoria followed Tasmania’s lead in 1850 when hoteliers in Melbourne established the Licensed Victuallers Society of Port Phillip. The Society functioned more or less happily until 1904, when “differences of opinion and petty variances” gave rise to a breakaway group which styled itself the Victorian Hoteliers Association. The two remained divided until 1916 when they merged under the title of the Licensed Victuallers Association. South Australia formed a Licensed Victuallers Association in 1871 and likewise New South Wales in 1873. In 1885 the Queensland United Licensed Victuallers Association was formed. Prior to World War II, however, there was no association which actually represented all of Queensland; with several geographically based local groups acting autonomously until a 1941 merger into the Queensland United Licensed Victuallers Association. In Western Australia the United Licensed Victuallers Association was formed in 1898, after years of regional based associations interested in local issues. The first national body, the United Licensed Victuallers Association of Australia was set up in 1917, with Mr Pat Flanagan of South Australia serving as the inaugural National President.

In 1959 the ULVA Federal Committee of Management decided to change the name of the organisation to the Australian Hotels Association. This was influenced by several factors, not least of which was the fact that by this time the term “victualling” had become associated almost entirely with the provisioning of ships. Furthermore, it was felt that “Australian Hotels Association would be more descriptive of hotelkeepers function in the community, and that the AHA logo would, in the course of time, become familiarly known in Australia.” The Northern Territory Branch of the AHA was formed in 1979, before which time members had been serviced by the South Australian Branch. In 1994 the Australian Capital Territory Branch was formed. Until this point AHA members in the ACT were part of the NSW Branch. In the 1950s tourism became an increasingly important part of the Australian economy. In addition to general post-war prosperity providing more people with the means and time for leisure, technological improvements and lower prices for passenger travel helped to further encourage both leisure tourism and business travel. The AHA’s membership began to include a growing umber of accommodation hotels around this time, eventually leading to the formation of a specific accommodation hotels membership divisions within AHA branches. The AHA became one of the country’s leading tourism industry organisations, representing nearly 1000 accommodation properties employing around 90,000 people. In 2011 the AHA established Tourism Accommodation Australia (TAA) as a new and distince body to represent the specific interests of accommodation hotels. TAA is funded to provide dedicated accommodation policy and service delivery directed by a board of senior industry operators from the country’s leading accommodation providers. The TAA Chairman sits on the AHA’s National Executive to ensure coordination on issues of mutual concern. TAA has quickly established strong parliamentary relationships and is actively engaged in the implementation of the National Long Term Tourism Strategy in the accommodation sector.


Australian Hotels Association’s Objectives

What it is The voice of more than 6,000 hotels across Australia, the National Body of the Australian Hotels Association represents each of the state and territory Branches at a national level, having been originally established in 1836 as the Licensed Victuallers Association in Tasmania. The National Body (or National Board) is formed by delegates from each of the Branches, with the number of delegates being determined by the population of each state or territory. The Board meets once per year. The President of each Branch, together with the President of the Accommodation Hotels Division (Tourism Accommodation Australia), and the honorary Secretary/ Treasurer constitute the National Executive which meets regularly to formulate policy and determine action between the annual meetings of the Full Committee of Management (the National Board). Each year the National Board holds elections to determine the holders of the office-bearing positions National President, National SeniorVice President, National Vice President and National Secretary Treasurer. The AHA is an organisation of employers registered under the Fair Work (Registered Organisations) Act 2009 and maintains a National Secretariat in

Canberra at 24 Brisbane Avenue, Barton. The current National President of the AHA is Peter Hurley from South Australia and the National Chief Executive Officer is Des Crowe.

What it does The AHA exists to develop and protect the interests of Australia’s 6,000 hotelkeepers. It is the means by which the hotelier can be represented on a national basis is such matters as taxation, excise duty, industrial relations and tourism. Research and the collection of data concerning the hotel industry is an important role of the National Office, which is often called upon to supply information to the Government, news media, consultants and other professional bodies, and members of the public generally, as well as AHA members. Possibly the most important role carried out by the National Office is in the field of industrial relations, both in the sense of employer/employee relations and in the broader sense of industry representation. The National Office is involved in negotiations with unions and is the employer’s voice or advocate on matters such as the annual Minimum Wage Case or on matters relating to the Hospitality Industry General Award

2010, the instrument under which most AHA members employ staff. The AHA also ensures the hotel industry is represented on critical national bodies such as the Australian Chamber of Commerce & Industry (ACCI), National Tourism Alliance (NTA), Tourism Transport Forum (TTF), Australasian Gaming Council (AGC), National Alcohol Beverage Industries Council (NABIC).

Objects of the AHA Apart from the continued essential service provided to its members, the AHA through the National Office will continue to strive for recognition from Government and other responsible authorities of the role the hotel plays in the community. Strong efforts will continue to be made to obtain Government assistance and encouragement for the tourism industry, which plays an increasingly important part of the Australian economy. The AHA will continue to push to reduce unnecessary red tape on the industry and pursue an advocacy agenda that will enable hotels to reach their potential as vibrant contributors to their local communities and the national economy.

Australian Hotels Association Yearbook 2012 |

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National Life Members

Victoria

New South Wales

Queensland

Western Australia

P. Burnett P. Gromotka C. Grummisch J. Haddad T. Hardiman J. Kortom I. Larkin J. Mulcahy R. Nesbit N. Nikakis T. Payne R. Sierakowski D. Washington

J. Conry J. Flitcroft (Snr) A. King R. Mahony J. McInerney OBE L. Plasto C. Ritchie J. Ross E. Wales R. White C. Wright

H. Baines C. Dunlea R. Hagan R.J McGuire R.K McGuire R. Ogilvie P. Potter C. Stewart Sir E. Stewart J. Watt

J. Fardon A. Higgins M. Monaghan AM T. Murphy

Tasmania

M. Burns

J. Noble

Northern Territory

South Australia A. Basheer OAM P. Brien M. Flanagan P. Hurley R. Lambert R. Whallin AM


National AHA Board and Staff

FIRST ROW – L to R: Michael Capezio, ACT President; Tom McGuire, QLD President; Des Crowe, National AHA CEO; Peter Hurley, National AHA President; Peter Burnett, National AHA Senior Vice-President; Colin Waller, National Secretary/Treasurer; Scott Leach, AHA National Vice-President; Doug Sallis, NT President. SECOND ROW – L to R: Rodger Powell, TAA Managing Director; Michael Burke, VIC Representative; Lynnette Humphreys, NSW Representative; Gwyn Rees, ACT General Manager; Amy Williamson, NT Chief Executive Officer; Robert Humphries, Accommodation Division Representative; Brian Kearney, VIC Chief Executive Officer; Sally Fielke, NSW Chief Executive Officer; Paul Brockschlager, WA Deputy CEO. THIRD ROW – L to R: Ian Larkin, VIC Representative; Ian Horne, SA Chief Executive Officer; Justin O’Connor, QLD Chief Executive Officer; Michael White, Qld Representative; Mark Sproat, Accommodation Division Representative; Darren Brown, TAS Representative; David Strom, WA Representative; Ashok Parekh, WA Representative. LAST ROW – L to R: Neil Randall, WA President; John Dickson, Accommodation Division President; Pat Gurr, NSW Representative; David Curry, VIC Representative; Andrew Rendall, NSW Representative; Steve Old, TAS Chief Executive Officer. Absent: Paul Jubb, Tas President; Don Goode, Accommodation Division Representative;

National Chief Executive Officer

Corporate Affairs Manager

Workplace Relations Director

Des Crowe

Steven Fanner

John Sweetman AM

Tourism Accommodation Australia – Managing Director

Marketing and Events Executive

Prabhu Fernando

Rodger Powell

Sarah Maguire

Financial Controller

Responsible Gaming Director

John Whelan

Accountant

Michelle Cheng

Australian Hotels Association Yearbook 2012 |

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Current National Policy Issues CURRENT ISSUES BEING ADDRESSED BY THE NATIONAL OFFICE

Portfolio

Resources, Energy & Tourism

Health

Justice & Home Affairs

Trade

Communications

Finance & Deregulation

Treasury

Responsible Minister

Policy Area

Issues

Additional Ministers & Parliamentary Secretaries

Shadow Ministers & Parliamentary Secretaries

Tourism 2020

Labour & Skills, Tourism Access, Domestic/regional tourism, Tourism accreditation, TQUAL grants

Senator The Hon Chris Evans, The Hon. Anthony Albanese MP, The Hon Chris Bowen MP

The Hon. Bob Baldwin MP, The Hon. Chris Pyne MP, The Hon. Scott Morrison MP

Airline Policy

Ensuring adequate supply into Australia from key tourist markets

The Hon. Anthony Albanese MP; The Hon. Craig Emerson MP

The Hon. Bob Baldwin MP, The Hon. Warren Truss MP; The Hon. Julie Bishop MP

Tourism Marketing

Funding for Tourism Australia

Tourism Infrastructure

Airports, planning, development, roads

The Hon. Anthony Albanese MP, The Hon. Bob Baldwin MP, The The Hon. Catherine King MP Hon. Warren Truss MP, Darren Chester MP

Preventative Health

Alcohol policies including taxation, NHMRC healthy drinking guidelines, labelling, National Binge Drinking Strategy, National Alcohol Strategy

The Hon. Catherine King MP, The Hon. Mark Butler MP, Senator the Hon Joe Ludwig, The Hon. Peter Garrett MP

AUSTRAC

Anti-Money Laundering legislation, compliance, cost recovery, exemptions

Labour Trafficking

Employer education

National Security

Prevention of / response to terrorist attacks, disease outbreaks etc.

Mr Michael Keenan MP

Crime Prevention

Natioanl Armed Robbery Roundtable, Australian Institute of Criminology research

Mr Michael Keenan MP

Australia in the Asian Century

Role of tourism within broader strategy. Need to address labour shortages. Making tourism businesses ‘Asian-ready’.

The Hon. Martin Ferguson MP, Senator The Hon. Bob Carr, The Hon. Tony Burke MP

The Hon. Julie Bishop MP, The Hon. Bob Baldwin MP, the Hon. Scott Morrison MP, Senator The Hon. Eric Abetz, Senator Michaelia Cash

Export Market Development Grants

Access to funding for hotels to develop new tourist markets

The Hon. Martin Ferguson MP

The Hon. Julie Bishop MP; The Hon. Bob Baldwin MP

Broadcasting

Foxtel/Austar merger, Race broadcasting (Sky Channel/ TVN)

The Hon. Brendan O’Connor MP The Hon. Malcolm Turnbull MP; Senator Scott Ryan

Copyright

Music licensing, conduct and role of collection societies (APRA, PPCA)

The Hon. Brendan O’Connor MP The Hon. Malcolm Turnbull MP, Senator Scott Ryan

National Broadband Network

Improved online capabilities for hotels, particularly in regional areas.

Business Regulation

Deregulation

The Hon. David Bradbury MP, The Hon. Andrew Robb MP, The The Hon. Brendan O’Connor MP Hon. Bruce Billson MP, Senator Scott Ryan

Taxation

Depreciation, FBT, tax loss carry-backs, capital investment incentives, duty free alcohol sales, tourist refund scheme

Senator The Hon. Penny Wong, The Hon. David Bradbury MP, The Hon. Bernie Ripoll MP

The Hon. Joe Hockey MP, Senator Mathias Cormann, The Hon. Tony Smith MP

Banking

Business Banking, Reserve Bank of Australia, ATM legislation, cash rates, lending practices

Competition Policy

Australian Consumer Law compliance, ACCC matters, AHA collective bargaining

The Hon. Brendan O’Connor MP, The Hon. David Bradbury MP

The Hon. Joe Hockey MP, The Hon. Bruce Billson MP, Senator Scott Ryan

Carbon Tax

Impact on hotel cost structures

The Hon. Wayne Swan MP

The Hon. Greg Hunt MP, The Hon Joe Hockey MP

Energy Efficiency

Access to funding for efficiency The Hon. Mark Dreyfus MP improvement projects

The Hon. Greg Hunt MP

COAG

Natioanl harmonisation of state/ Senator Jan McLucas territory laws and regulations

The Hon. Tony Abbott MP, Senator Marise Payne

Competition Policy

Australian Consumer Law compliance, ACCC matters, AHA collective bargaining

The Hon. Wayne Swan MP, The Hon. David Bradbury MP

The Hon. Bruce Billson MP, Senator Scott Ryan

Disaster Relief & Reconstruction

Flood and cyclone recovery, emergency funding

Senator The Hon. Joe Ludwig

Privacy

Privacy Act & National Privacy Principles

The Hon. Martin Ferguson MP

The Hon. Tanya Plibersek MP

The Hon. Bob Baldwin MP

Senator The Hon George Brandis SC; Michael Keenan MP; Senator Gary Humphries The Hon. Chris Bowen MP, The Hon. Bill Shorten MP

The Hon. Jason Clare MP

The Hon. Craig Emerson MP

Senator the Hon. Stephen Conroy

Senator the Hon. Penny Wong

The Hon Wayne Swan MP

Climate Change & Energy Efficiency

The Hon. Greg Combet MP

Prime Minister & Cabinet

The Hon. Julia Gillard MP

Small Business

The Hon. Brendan O’Connor MP

Attorney-General

The Hon. Nicola Roxon MP

The Hon. Peter Dutton MP, Andrew Southcott MP

Senator The Hon George Brandis, Michael Keenan MP, Senator Gary Humphries, The Hon. Scott Morrison MP, Senator The Hon. Eric Abetz

The Hon. Malcolm Turnbull MP

Senator The Hon. George Brandis SC


Portfolio

Agriculture, Fisheries & Forestry

Families, Housing, Community Services & Indigenous Affairs

Immigration

Financial Services & Superannuation

Employment & Workplace Relations

Regional Australia, Regional Development & Local Government & Arts Tertiary Education, Skills, Science & Research

Responsible Minister

Policy Area

Issues

Additional Ministers & Parliamentary Secretaries

Shadow Ministers & Parliamentary Secretaries

Disability Access Standards

Impact on hotel investment

The Hon. Martin Ferguson MP

Senator The Hon. George Brandis SC, The Hon. Bob Baldwin MP

Food Regulation

National Food Plan, harmonisation of food safety regulations, FSANZ, Wine Label Integrity Program, labelling

The Hon Sid Sidebottom MP, The Hon. Tanya Plibersek MP, The Hon. Catherine King MP

The Hon. John Cobb MP, The Hon. Peter Dutton MP

Gambling

Pre-commitment policy

The Hon. Bill Shorten MP

The Hon. Kevin Andrews MP

Indigenous Health & Employment

Northern Territory intervention & alcohol policy.

The Hon. Warren Snowdon MP

The Hon. Nigel Scullion MP, The Hon. Peter Dutton MP, Senator The Hon. Ian MacDonald & Andrew Laming MP

Building Code / Disabled Access Standards

The Hon. Martin Ferguson MP Disability Discrimination Act impacts on hotel developments & redevelopments, short term accommodation in residential apartments (Class 2 and 3 building definitions).

The Hon. Kevin Andrews MP;

Paid Parental Leave

Employer impacts

The Hon. Bill Shorten MP

The Hon. Kevin Andrews MP, Senator the Hon. Eric Abetz

Overseas Workers

Skilled migrants, short term working visas, working holiday visas, student visas, labour agreements, regional migration agreements.

The Hon. Bill Shorten MP, The Hon Martin Ferguson MP, Senator The Hon. Kate Lundy; The Hon. Tony Burke MP, Senator The Hon. Bob Carr

The Hon. Bob Baldwin MP, the Hon. Scott Morrison MP, Senator The Hon. Eric Abetz, Senator Michaelia Cash

Visitor Visa Policy

Visa charges, ease of access

The Hon. Martin Ferguson MP, Senator The Hon. Bob Carr

The Hon. Scott Morrison MP, The Hon. Bob Baldwin MP, The Hon. Julie Bishop MP

Superannuation

Employer contribution, Award default funds, employer reporting obligations.

Workforce Development

Training, apprenticeships, traineeships, hospitality higher education, workforce participation

Senator The Hon. Chris Evans, The Hon. Sharon Bird MP, The Hon. Mark Butler MP, The Hon. Peter Garrett MP

The Hon. Chris Pyne MP

Workplace Relations

Fair Work Act, Hospitality Industry (General) Award, Fair Work Ombudsman, registration of industrial organisations, Work Health & Safety harmonisation

Senator The Hon. Jacinta Collins

Senator The Hon Eric Abetz, The Hon. Scott Morrison MP

Regional hotel issues

Tourism Connect, regional tourism, regional infrastructure.

The Hon. Anthony Albanese MP, Senator Barnaby Joyce; The The Hon. Martin Ferguson MP Hon. Bob Baldwin MP

The Hon. Simon Crean MP

Arts

Cultural events, exhibitions, cultural tourism, live music industry.

Senator The Hon. Chris Evans

Workforce Development

Training, apprenticeships, traineeships, hospitality higher education, workforce participation, career pathways, Workforce Development Fund

Senator the Hon. Joe Ludwig

The Hon. Jenny Macklin MP

The Hon. Chris Bowen MP

The Hon. Bill Shorten MP

The Hon. Bill Shorten MP

The Hon. Chris Pyne MP

National Measurement Institute Trade measurement legislation

The Hon. Mark Dreyfus MP

Sophie Mirabella MP

Enterprise Connect

Business support funding and services

The Hon. Martin Ferguson MP

The Hon. Bob Baldwin MP

Green Building Fund

Access to funding for sustainable hotel development and redevelopment

The Hon. Martin Ferguson MP

Sophie Mirabella MP

Workforce Development

Training, apprenticeships, traineeships, hospitality higher education, workforce participation

Senator The Hon. Chris Evans, The Hon. Sharon Bird MP, The Hon. Bill Shorten MP, The Hon. Peter Garrett MP

The Hon. Chris Pyne MP

Airports, planning, development, roads, National Road Safety Strategy

The Hon. Catherine King MP

The Hon. Warren Truss MP, Darren Chester MP

Product packaging

Container deposit schemes, National Packaging Covenant

Senator The Hon. Don Farrell

The Hon. Greg Hunt MP, Senator Simon Birmingham

Regional population

Regional tourism, migration programs

The Hon. Chris Bowen MP, The Hon. Martin Ferguson MP

The Hon. Scott Morrison MP, The Hon. Bob Baldwin MP

Heritage

Impact on hotel investment

Senator The Hon. Don Farrell

The Hon. Greg Hunt MP

The Hon. Greg Combet MP

Social Inclusion

The Hon. Mark Butler MP

Infrastructure & Transport

The Hon. Anthony Albanese MP Transport Infrastructure & Policy

The Hon. Tony Burke MP

Senator The Hon. George Brandis SC The Hon. Sharon Bird MP, The Hon. Mark Butler MP, The Hon. Peter Garrett MP, The Hon Bill Shorten MP

Industry and Innovation

Sustainability, Environment, Water, Population & Communities

Senator Mathias Cormann

Australian Hotels Association Yearbook 2012 |

11


National CEO's Report

Des Crowe

T

he AHA’s National Office is charged with monitoring and responding to the agenda of the Federal Parliament on issues that impact the hotel industry, and with the Gillard Government’s increasing intervention in traditionally state government policy areas, our staff have been kept very busy in recent times. With the Parliament adjourned for its April break and preparing for the May budget session we have had an opportunity to review recent developments and look forward to upcoming matters that appear likely to concern the industry. The hotel industry is highly regulated and complex, and deals with Government through many different channels. The chart on the previous pages gives you a snap shot of the policy areas and issues that are monitored and addressed by the AHA nationally. The two most significant recent issues have related to workplace relations and mandatory pre-commitment for gaming machines. Firstly to workplace relations, which impacts on every one of the AHA’s more than 5,000 members. The message from our members has been clear. Reform of the Fair Work Act and the Award structure is badly needed to address flagging productivity levels in labour intensive businesses such as hotels. The AHA has advocated for changes to unfair dismissals and adverse action claims, clarification of public holiday payments on additional and substitute days, changes to make Individual Flexibility Agreements more attractive, and for the Fair Work Act to include directions to the Minimum Wage Panel to take into account increased superannuation contributions in future Annual Wage Reviews. It is hoped that through the Award modernisation process the issue of penalty rates

will be considered. The current industrial regime discourages part-time employment, and the structure of penalty rates impedes hotel trading on weekends and public holidays. Given the platform of Labor not to reduce penalty rates and the opposition of the union movement to any reduction in penalty rates it appears this will be a difficult argument for the AHA to win. Fortunately there is increasing evidence and public opinion on the side of calling for less punitive penalty rates. The Productivity Commission’s recent inquiry into the retail industry found that its award-based penalty rate structures were a major factor constraining productivity. Businesses are discouraged from trading at the times when consumers want to shop due to the significant extra wage costs. It is important to note that the hospitality penalty structure is even more punitive than faced by retailers, something the AHA will be pointing out in its representations. Hoteliers are also concerned about the procedures relating to unfair dismissals and adverse action claims. The reality is that in most cases it is cheaper and easier for an employer to pay “go away money” to settle rather than defend a claim. This is a major problem with the system which needs to be rectified. In 2011 the AHA also questioned the Prime Minister during a tourism leaders summit on how the Government can be more receptive to the tourism industry. Tourism and hospitality is not a high-ranking industry within government circles, as evidenced by our industry being the big loser out of the Critical Skills Priorities policy on the basis that most work in the industry is low-skilled. Service sectors were initially fighting for a paltry $2 million out of the Workforce Development Fund, the priority of hospitality apprentices had been downgraded by the Government’s expert advisory panel, and chefs and cooks continue to be excluded from the Skilled Occupation List. Despite this discrimination hospitality is still seen as one of the better pathways for the unemployed to get back into the workforce along with mature age workers and single parents returning to work. After strong protestation from the AHA and other sectors of the tourism industry, the Government got the message and within days made further funding available to our sector under the Workforce Development Fund. Within Cabinet one of our best advocates is the Tourism Minister, Martin Ferguson. Minister

Ferguson has strong support within the industry and it was pleasing to see him retain the portfolio in the recent reshuffle. The Minister has been particularly strong in promoting industry labour and skills initiatives to address areas of shortage, which has required some considerable diplomacy when dealing with agencies and departments of Government not within his portfolio. These initiatives, including the Pacific Seasonal Worker Pilot Scheme and a template Tourism/ Hospitality Labour Agreement, are starting to come to fruition and will be of great assistance to members. The AHA’s significant involvement in federal workplace relations policy would not be possible without the contributions of our Workplace Relations Committee, particularly John Sweetman, Joanna Minchinton and Trevor Evans who have each represented the AHA on national forums and committees. The AHA’s IR advisory services at branch level are an outstanding resource for members and one of our Association’s best assets. Looking back over the last 12 months the AHA has played an active role in opposing mandatory pre-commitment for electronic gaming machines but supporting voluntary pre-commitment. Having authorised the AHA posters prepared for this campaign the feedback was that it was an effective campaign encouraging sitting members to consider the impact of a Wilkie proposal on their local community. The Prime Minister’s decision to rescind the Wilkie deal has provided temporary relief to our members looking for certainty. When the full details of the legislation and regulations are released we will be able to further assess the impact of the laws on members. In addition to our members the hotel banking sector, hotel brokers and future investors also anxiously await further developments in this area. Prior to the election of Mr Wilkie, the regulation of gaming machines was a state/ territory responsibility and we continue to insist that gaming matters are best addressed at the state/territory level by the local regulators in consultation with the industry. Overall, 2011 was a challenging year for the AHA in which we were able to deliver some valuable outcomes, including: • Affecting a change in Government policy in the decision to exclude hotel menus from strict ACCC pricing laws. • The access to East Timorese labour was an issue raised by the AHA at the Minister’s


Tourism Roundtable and the extension of East Timor into the seasonal workers and the accommodation sector. • The AHA was able to convince AUSTRAC to exempt small businesses from the application of many of the compliance requirements of the Anti-Money Laundering legislation. • Working with Service Skills Australia on the Hospitality Training Package broaden the training focus beyond just kitchens to other working areas in hotels and pubs. • Working through the proposed codes and providing Worksafe Australia with detailed feedback from the industry’s perspective. • Defeating the push towards a zero bloodalcohol concentrate limit on drink driving through the National Road Safety Strategy. • Supporting the voluntary codes proposed by major alcohol producers on pregnancy awareness labelling on beverages but opposing the move towards mandatory pregnancy warning signage at point of sale on premise. • Working with the Australian Wine and Brandy Corporation to correct anomalies for hotels within the Wine Label Integrity Program, leading to exemptions for hotels to onerous record keeping requirements intended to be brought in further up the supply chain. • Successfully delivering the Work Innovation Program on approaches to improving productivity, The Shared Industry Assistance Program on the hospitality award and the Employer Broker Program placing apprentices and unemployed in regional Victorian hotels. • Raising with Treasury on the treatment of business tax losses, arguing for the ability to carry these back and offset against previous profits. In the accommodation sector, the appointment of Rodger Powell to head up Tourism Accommodation Australia and the more recent appointment of Tony South to chair the TAA Board have been important developments in our improved service to accommodation hotels. Rodger is working closely with accommodation division managers in our branches to ensure TAA delivers on its well-received five-year strategic plan for the industry. I would like to thank the AHA National Executive and National Board for their work and guidance over the past year, particularly National President Peter Hurley and Secretary-Treasurer Colin Waller. The members of the National Accommodation Division have played a crucial role in assisting Rodger Powell in establishing

TAA, and the CEOs of our eight state/territory branches are all major contributors to the development of AHA national policy. The staff of the National Office are also deserving of thanks for their work over the past year. Steven Fanner, Sarah Maguire, Rodger Powell, John Sweetman, John Whelan, Prabhu Fernando, Michelle Cheng, Beverley Clench and Luisa Davidson are an excellent team of dedicated professionals working on behalf of the industry. The support of our corporate partners is integral to the functioning of the National Office. A full list of our partners is contained within this Yearbook but I make particular mention of our Diamond Partners HostPlus, Diageo, Tabcorp, Coca-Cola Amatil, Lion, Carlton & United Brewers and Treasury Wine Estates. At last year’s National Board Luncheon we were able to give thanks to three AHA members who have made extraordinary contributions to the industry over their long careers. AHA Life Membership was conferred on Peter Burnett, Ian Larkin and Mick Burns as a well-deserving trio. A recap of the Luncheon also features in this Yearbook. Our AHA National Awards for Excellence were held in Sydney’s Four Seasons Hotel in 2011 and will shift to Hobart on 5 September this year in conjunction with the Australian Hospitality Conference – I look forward to seeing members there. Looking forward to some of the items on the AHA agenda for the remainder of 2012, the AHA is working closely with suppliers to measure the impact of the introduction of the carbon scheme. It is predicted that goods and services will increase from suppliers in excess of the Treasury forecasts of 0.08%. In addition to these additional carbon scheme related costs, electricity costs will increase, excise taxes will increase and suppliers will pass on wage increases. In 2012 it is essential for the hospitality sector to have access to an appropriately skilled and qualified workforce as well as general labour. It is pleasing to report that the AHA has been successful in its application for funding 100 training places under the National Workforce Development Fund (NWDF). The $230,855 in funding will be used by the AHA alongside contributions for training opportunities for supervisory level staff. The NWDF was established by the Federal Government to support the training of existing workers and new workers in areas of identified business and

workforce development need. The NWDF is part of the Australian Government’s Building Australia’s Future Workforce package. To meet the labour shortage the AHA is also advocating inviting more overseas workers to fill the gaps. The new Pacific Seasonal Worker Pilot Scheme will partly address the needs. We need to be better utilise the working holiday makers, the international students and the graduates from our hotel schools. As we move into the ‘Asian Century’ Australia must work closely with its neighbours in Indonesia and East Timor and request assistance from these countries with our labour shortage. We will not achieve the Government’s goals identified in Tourism 2020 unless the labour shortage is addressed. Alcohol policy will need to be carefully monitored and addressed going forward, as the Commonwealth continues its unjustified intervention in another area of state responsibility. The readiness of Commonwealth agencies dealing with alcohol to consult with industry is sadly lacking, and we do not enjoy the same relationships with the Department of Health & Ageing as we do with the Department of Resources, Energy & Tourism or the Department of Immigration & Citizenship. Unfortunately the Department of Health appears more than willing to involve dedicated anti-alcohol campaigners in policy development, advisory committees and by providing generous grants to fund questionable ‘research’ on the harms of alcohol with no consideration of trying to quantify the obvious benefits. The gaming campaign is good evidence of a grassroots campaign amongst members and their patrons incensed and opposed to proposals for unreasonable Commonwealth regulation. The AHA will not hesitate to also campaign against unreasonable alcohol regulation should the socalled ‘health’ lobby attempt to get its way. For many members, the profitability of their businesses has been reduced as a result of regulation, the weather, and the economy generally. I encourage our members to continue to provide the wide range of services demanded by your communities and wish you more prosperous trading conditions for 2012. Des Crowe National AHA Chief Executive Officer

Australian Hotels Association Yearbook 2012 |

13


Overseas workers in the hospitality industry

A guide for hospitality industry employers prepared by the Australian Hotels Association and the Attorney General’s Department – February 2012 What is people trafficking? People trafficking is the physical movement of people across and within borders, through deceptive means, coercion or force, for the purpose of exploitation. People trafficking is different from people smuggling, which is the organised, illegal movement of people across borders, usually on a fee for service basis. Men, women and children from all backgrounds are trafficked in a range of industries including hospitality. Opportunities to traffic people into Australia are limited because of our strong migration controls, labour regulation and geographic isolation. However, Australia is seen as a destination country for victims of trafficking. Any kind of people trafficking is a crime in Australia under the Criminal Code Act 1995.

What does people trafficking have to do with hotels? There are several areas of the hospitality industry that can come into contact with people trafficking. • Employment of overseas workers: Hospitality is one of many industries which can be used by people traffickers, particularly in areas such as cookery, where engagement of workers from overseas is commonplace. • Contracted labour: Many hotels also engage private labour hire companies to provide workers at short notice or during labour shortages. In these cases workers in the hotel are not employed by the hotel but by a third party provider. • Supply chain: By sourcing a variety of products and services from

numerous sources, hotels may also come into contact with suppliers utilising exploitative labour conditions on their workers. With the support of the Australian Government through the Attorney General’s Department, the AHA is pleased to prepare this guide providing advice to employers in the hotel industry on how to help combat people trafficking and providing advice on the legal employment of overseas workers.

What penalties apply to employers? The Migration Act 1958 makes it an offence to knowingly or recklessly employ or refer for work a person who does not have a valid visa or is working in breach of their visa conditions. Penalties are up to $13,200 and two years’ imprisonment for individuals and up to $66,000 per illegal worker for companies. For aggravated offences - where a person is exploited through forced labour, sexual servitude or slavery (section 245AH) - maximum penalties rise to $33,000 and five years imprisonment for individuals and $165,000 per illegal worker for companies.

Why are people trafficked? The most visible form of trafficking involves the sexual exploitation of women or children. But across the world men, women and children are trafficked for a wide range of other purposes, including forced industrial, domestic or sweatshop labour, illicit adoption, street begging, forced recruitment into militia and the harvesting of body organs.


Overseas workers in the hospitality industry

What is the Australian Government doing? The Commonwealth Attorney General’s Department has funded the AHA to conduct the Labour Exploitation Awareness Project for employers in the hotel industry. The Project is part of an anti-trafficking strategy which addresses the full trafficking cycle, from recruitment to reintegration, and includes measures for prevention, detection, prosecution and victim support. Since 2003 the Australian Government has committed more than $100 million towards a range of domestic, regional and international antitrafficking initiatives.

How do I know if a person has been trafficked? There are a number of signs that can indicate that a person is a victim of people trafficking. Watch out for the following: • The person appears to be servicing a debt to a third party (such as a recruitment service); • The person is unable to terminate their employment at any time; • Personal documents, such as passports or residency documents, are being held by the employer or a third person, and the worker is not allowed to access these document when they wish to do so; • There are indications that the worker is being subjected to, or threatened with, violence in connection with their employment; • The person is being confined or isolated in the workplace or only leaves at odd times. • The person is living at the workplace, or another place owned/ controlled by their employer; • The person is subject to different or less favourable working conditions than other employees because he/she comes from overseas; • The person is in the control of another person and is not allowed to speak for himself/herself. • The person has an intermediary who “holds” or “invests” the person’s money for him/her; and • The person does not understand the terms or conditions of his/ her employment.

What can employers do to combat people trafficking? As an employer you can help fight people trafficking. Some of the steps you can take are: • Be aware of, and educate staff on, practices that might constitute people trafficking or forced labour; • Ensure your company policy sets out the rights and responsibilities of employees under the law, including on minimum wages, working hours and overtime; • Ensure that all employees have a written contract, and understand the terms or conditions of their employment; • Use only reputable recruitment and employment agencies as a source of contract labour, and make yourself aware of their practices. Carefully monitor agencies that supply your company with contract labour, in particular from overseas workers; • Treat overseas workers fairly, and ensure they are not subject to

different or less favourable working conditions than other employees; • Check supply chains to ensure slave labour has not been used and ensure that the human rights of workers are upheld in the workplace; • Provide training to managers and human resource personnel on identifying exploitative labour practices, and advice on how to seek appropriate remedies; • Build bridges between government, workers and law enforcement agencies, promoting cooperation in action against exploitative labour practices; • Check with the Department of Immigration & Citizenship whether prospective workers are entitled to work in Australia. This can be done online at www.immi.gov.au/e_visa/vevo.htm; and • Encourage and share best practice in employment conditions. Some useful resources may be found on the AHA’s national website www. aha.org.au.

What if you suspect someone has been trafficked? If you are aware of, or suspect someone has been trafficked, reporting it to the Australian Federal Police by calling 131 AFP (237). If you are aware of someone subjected to exploitative working conditions, report it to the Fair Work Ombudsman by calling 13 13 94. In an emergency, call 000. The Australian Government provides support for victims of trafficking through the Support for Trafficked People Program, which is run by the Australian Red Cross. The 24-hour service operates 365 days per year to deliver support services to trafficking victims including accommodation, income support, medical treatment, counselling, legal and migration advice, skills development training (including English language training) and social support.

Legally employing overseas workers Ensuring that a prospective worker is legally entitled to work in Australia is the responsibility of the employer. All applicants for employment should be required to confirm they are either an Australian resident or hold an appropriate visa enabling them to work in Australia. The Department of Immigration and Citizenship offers an Employers’ Immigration Hotline (call 1800 040 070) which allows employers to check the working rights of potential employees.

Australia’s employment migration system – Types of Visas Australia has a number of employment migration programs each with a different purpose. A range of visa options available to overseas workers in the hospitality industry are outlined on the back cover of this brochure. The most commonly used visa used in the hospitality industry is the Temporary Business (Long Stay) Visa, also known as the 457 Visa. This is a temporary visa providing working rights for eligible skilled migrants whose residency in Australia is conditional on being sponsored by an employer.

Australian Hotels Association Yearbook 2012 |

15


Overseas workers in the hospitality industry

The most common occupations in the hospitality sector for 457 visas are cooks, chefs, café/restaurant managers, hotel/motel managers, pastry cooks, sales and marketing managers, project administrators, marketing specialists, and accountants. A complete list of eligible occupations under the 457 Visa Program is available from the Department of Immigration & Citizenship website at www.immi.gov.au/skilled/skilled-workers/ legislative-instruments. If the vacancy in your business is not an eligible occupation you will not be able to use the standard 457 Visa. The only option available to employ a 457 Visa holder for ineligible occupations is to negotiate a ‘labour agreement’ with the Department of Immigration and Citizenship for those workers. The Department is currently developing a template labour agreement for tourism and hospitality employers. There may also be opportunities for employers to engage the holders of Working Holiday Visas, which are available for people aged 18 to 30 years of age and allows the holder to work in any occupation for a maximum of six months per employer. Student Visas also permit work in any occupation, although holders are limited to 20 hours of work per week when their course of study is in session.

Employer requirements To nominate skilled overseas workers for a 457 Visa, the employer must first become an approved standard business sponsor, which includes demonstrating you are a lawfully operating business, having a strong record of employing local labour and non-discriminatory working practices, and demonstrating a strong record of training Australian workers. 457 Visa sponsors must also ensure that overseas workers are paid at least as well as equivalently experiences Australians in the same workplace. Essentially this means that overseas workers cannot be used to undercut Australian wages or conditions. In addition, the employer must also demonstrate that the annual market salary rate paid to the 457 Visa holder is at least equal to the Temporary Skilled Migration Income Threshold, which is currently $49,330.

Worker requirements There are also a number of requirements made on overseas workers, and employers must be aware of these. For example, all 457 Visa applicants must provide evidence of health insurance for the period of their intended stay in Australia. They must also be able to speak, write and understand a sufficient level of English to satisfy the International English Language Testing System that relates to their specific occupation.

CONTACT INFORMATION Attorney General’s Department ..................................................................................................................................................................... 02 6141 2778 Department of Immigration & Citizenship – Immigration Dob In Line........................................................................................................ 1800 009 623 Department of Immigration & Citizenship – Employers’ Immigration Hotline .......................................................................................... 1800 040 070 Fair Work Ombudsman.............................................................................................................................................................................................. 13 13 94 Department of Foreign Affairs & Trade – People Smuggling, Refugees and Immigration Section........................................................... 02 6261 1111 Australian Federal Police................................................................................................................................................................................. 131 AFP (237)


Visa information for employers This information is for comparison only and does not represent an exhaustive list of visas or their requirements.

Employer sponsored options

For more information and updates go to www.immi.gov.au Type of visa

Visa duration

Long Stay Temporary Business (457)

One day up to four years

Employer Nomination Scheme (ENS) (121 and 856)

Regional Sponsored Migration Scheme (RSMS) (119 and 857)

Permanent

Permanent

Sponsorship required? Yes, by an employer

Yes, by an employer

Yes, by a regional employer

Work entitlements Must continue to work in the nominated occupation for the sponsor. The terms and conditions of employment must be no less favourable than those that are provided to an Australian performing equivalent work Must be offering full time work for at least three years. Employee to be paid minimum salary with equivalent working conditions in-line with relevant Australian legislation

Must be offering full time work for at least two years

Skill /qualification requirements Occupation must be on the relevant legislative instrument Must have English language skills unless exempted Must have relevant qualifications and experience to perform the occupation Skills assessment by relevant Australian authority. Threeyears full time work experience and registration or licensing if required

Additional information

May apply for ENS with a formal skills assessment Employers have additional or after two years continuous work in the obligations occupation in Australia The 457 program provides May apply for RSMS a way for employers with ongoing skill shortages to recruit overseas workers, while ensuring that these employers also invest in the training of Australians Dependants have full work/study rights

Occupation must be on the Employer Nomination Scheme Occupation List (ENSOL) and meet the minimum salary requirement

May apply for citizenship after four years of lawful residence in Australia including at least 12 months of permanent residence

A certification process applies

May apply for citizenship after four years of lawful residence in Australia including at least 12 months of permanent residence

Must have English language skills unless exceptional circumstances apply Relevant diploma or higher qualification and registration or licensing if required Must have English language skills unless exceptional circumstances apply

General Skilled Migration (GSM) categories

Pathways to permanent visa types/citizenship

Labour Agreement (LA)

Dependent on terms negotiated under the agreement

Yes, by an employer Dependent on terms who has entered into negotiated under the an agreement with the agreement department

Dependent on terms negotiated under the agreement

Labour agreements can Dependent on terms provide a flexible response negotiated under the to industries with ongoing agreement skill shortages while ensuring that employment and training opportunities for Australians are not undermined

Skilled – Independent (175)

Permanent

No

Unrestricted

Nominated occupation must be on Skilled Occupation List (SOL) and skills assessed by relevant assessing authority

Must have recently completed an Australian qualification in Australia or have recent skilled employment

May apply for citizenship after four years of lawful residence in Australia including at least 12 months of permanent residence

Skilled – Sponsored (886)

Permanent

Unrestricted Yes, by a state/ territory government or an eligible Australian relative

Nominated occupation must be on SOL and skills assessed by relevant assessing authority

Must have recently completed an Australian qualification in Australia or have recent skilled employment

May apply for citizenship after four years of lawful residence in Australia including at least 12 months of permanent residence

Skilled – Regional Sponsored (provisional) (487)

Three years with Yes, by a state/ option to apply for one territory government further 12 month visa agency or by an eligible Australian relative

Must live/work/study Nominated occupation in a specified regional must be on SOL and area in Australia skills assessed by relevant assessing authority

Must have recently completed an Australian qualification in Australia or have recent skilled employment

May apply for the Skilled – Regional visa after 2 years residence and 12 months full-time work in a Specified Regional Area May apply for a visa under the RSMS at any time

Skilled – Regional (887)

Permanent

No

Unrestricted

Must have lived for at least This visa is not points two years and worked tested full time for at least 12 months in a Specified Regional Area while holding a provisional GSM visa

May apply for citizenship after four years of lawful residence in Australia including at least 12 months of permanent residence

Skilled – Graduate (485)

18 months

No

Unrestricted

Nominated occupation must be on SOL, skills assessed by relevant assessing authority and English language threshold met

This visa is for overseas students who have completed an Australian qualification in Australia in the last six months and need additional time to gain the skills needed to apply for a permanent GSM visa

May apply for a permanent GSM or employer sponsored visa at any time

Skilled – Recognised Graduate (476)

18 months

No

Unrestricted

Must have completed a bachelor degree or higher qualification in a specified discipline at a recognised overseas educational institution in the past 24 months

This visa is for engineering graduates from recognised overseas educational institutions who have skills in demand in Australia

May apply for a permanent GSM or employer sponsored visa at any time

Disclaimer This document has been produced by the Australian Hotels Association with funding by the Australian Government through the Attorney General’s Department’s Labour Exploitation Project Funding Scheme. The Scheme aims to assist organisations like the AHA to help identify and support victims of people trafficking and increase awareness of this issue in Australia. Further information to assist hotel industry employers in understanding people trafficking may be found on the AHA’s website, www.aha.org.au.


Manrique Rodriguez General Manager InterContinental Melbourne The Rialto

Choose a quality service When you’ve served the tourism industry for over 24 years, you can’t help but develop an appreciation for the importance of service. That’s the reason we brought the HOSTPLUS contact centre in-house when many others are being outsourced. So our members are assured they’re always speaking to a HOSTPLUS employee. And with offices nationwide, our employers can call our employer services team anytime. That’s why InterContinental Melbourne The Rialto and almost one million Australians choose HOSTPLUS. You can too at choosehostplus.com.au or call 1300 HOSTPLUS (1300 467 875). Choose quality.

7

The information in this document is general in nature and does not consider any of your objectives, financial situation or needs. Before acting on this information, you should consider obtaining advice from a licensed, financial product adviser and consider the appropriateness of this information, having regard to your particular investment needs, objectives and financial situation. You should obtain a copy of the HOSTPLUS Product Disclosure Statement and consider the information contained in the Statement before making any decision about whether to acquire an interest in HOSTPLUS. Issued by Host-Plus Pty Limited ABN 79 008 634 704, AFSL No. 244392, RSEL No. L0000093, HOSTPLUS Superannuation Fund ABN 68 657 495 890, RSE No. R1000054. For further information on Chant West ratings visit http://www.hostplus.com.au/members/calculators/chant-west-disclaimer INH_0373_12/11_01


Innovation at its best

H

David Elia

“As a testament to our strong member focus, HOSTPLUS has won two of our industry’s leading awards – not once, not twice – but three years running.”

OSTPLUS is not only recognised as a quality super fund. For 25 years, we’ve also been recognised as an innovative industry partner helping members and employers alike. Aligned with quality brands and respected leaders in the industries in which they specialise, across hospitality, tourism, recreation and sport, HOSTPLUS is proud of its heritage and quality service offering. Coupled with the recent launch of the HOSTPLUS ‘Choose Quality’ campaign across Australia, featuring three industry leaders who have achieved recognition for quality in their respective fields, HOSTPLUS has been busy developing a state of the art, best practice website. Launched early November 2011, the site includes a dedicated Employer Business Centre aimed at ensuring employer needs are immediately addressed – think of it as your online concierge – from making online payments to downloading forms right through to having your questions answered via the Employer Help Centre, another service designed specifically to meet your needs. HOSTPLUS understands that with competing priorities, the market’s need for responsive and timely information demands constant review. The web is ever changing and improving, at HOSTPLUS we look to not only keep pace with ever changing complexities but ensure through our innovation ethos we stay ahead of the market. Our website does exactly that. Proud of our innovation and ability to stay ahead of the market, HOSTPLUS is always developing new and interesting ways to help members and employers alike to get the most from their super. HOSTPLUS works hard to be the leading provider of superannuation, related financial services and ancillary benefits in Australia – exceeding the expectations of our members, their families, employers and stakeholders, servicing the hospitality, tourism, recreation and sport industries. Our ongoing mission is to contribute to the financial growth and security of members and their families during their working years and maximise their financial wellbeing in retirement.

As a testament to our strong member focus, HOSTPLUS has won two of our industry’s leading awards – not once, not twice – but three years running. A feat no other fund has achieved. And in 2011, HOSTPLUS was not only awarded the Gold Top Performing industry super fund by Your Money Magazine but also Super Fund of the Year. In 2010 we won BRW’s Private Business award for the Fastest Growing Private Business of the year and we were again a finalist in 2011. We have also been awarded ASFA’s Super Innovator of the Year and Excellence in Member Communication awards both in 2010 and 2011. We believe this is a further testament to HOSTPLUS being a market leader in the superannuation arena. Winning awards is always a great compliment, but we are especially proud of the fact this demonstrates how fully committed to, and focused on, providing quality service and innovation to our members and employers we really are. HOSTPLUS began in 1987 as the industry superannuation fund for the hospitality, tourism, recreation and sport industries. Today, HOSTPLUS has grown into one of the largest super funds in Australia with close to one million members, over 78,000 employers and funds under management worth over $9.4 billion. We provide competitive fees, don’t pay commissions to financial advisers and we’re run exclusively for the benefit of our members. HOSTPLUS is proud of its partnership with the AHA, which continues to do a great job in addressing the big issues facing the industry. If you want to join a quality superannuation provider and be associated with people who value quality service find out more at hostplus.com.au or call 1300 HOSTPLUS (1300 467 875). David Elia CEO HOSTPLUS

Australian Hotels Association Yearbook 2012 |

19


BLACK.

BLACKER.

A MORE INTENSE, RICH, SMOKY BLEND.

CONTACT YOUR DIAGEO REPRESENTATIVE FOR DETAILS

KNOW YOUR DRINK. DRINK RESPONSIBLY. The JOHNNIE WALKER and BLACK LABEL words and Striding Figure Device are trade marks. © John Walker and Sons 2011.


Diageo Australia

2

Tim Salt

“We will also continue to invest in our award winning on-premise training program Alchemy, which offers customised bartender training to meet the needs of our customer’s venues.”

011 was a fast paced year for Diageo Australia in what has been a challenging market. The alcohol industry as a whole has found it tough to deliver the growth we’d all like to see, however despite the challenges we all faced this year I’m very proud of Diageo’s performance in driving sales with hotels – our customers. Over the course of 2011 Diageo drove some great wins for our on-premise customers, proving that spirits continue to be a resilient and profitable category and remain a key point of difference for consumers. Our innovation pipeline was a crucial driver for our business and our customers businesses this year. We created new ways to drink old favourites, added new flavours, offered new packaging formats and developed completely new products. In June we released Bundaberg Five white rum which has been performing strongly since its launch. Bundy Five is clear in colour, aged in white oak and filtered five times to create a clean taste, which is versatile for mixing behind a bar. Still in the Bundaberg Rum stable, we launched the Bundaberg Rum Master Distillers’ Collection in February. The 10 year old rum received worldwide recognition, winning a silver medal at the 2011 International Wine and Spirits Competition (IWSC) – a first for any Bundaberg Rum product. In spirits, the consumer trend of premiumisation continued to drive growth within the spirits market. Diageo responded in October by welcoming the arrival of a bold new addition to our Scotch whisky portfolio - Johnnie Walker Double Black Label, and our luxury offering Johnnie Walker Blue Label underwent a stylish packaging transformation in August. Looking forward to 2012, we will continue to innovate against our category leading and well-known brands to ensure spirits remain relevant to consumers in the on-premise. We will also continue to invest in our award winning on-premise training program Alchemy, which offers customised bartender training to meet the needs of our customer’s venues. This year Alchemy trained over 13,000 bartenders around

Australia on product knowledge, cocktail solutions, bar presentation and service skills. I realise that from a wider industry perspective it has been a challenging year for some, and I particularly recognise the increased pressure that producers and hoteliers are coming under from regulators, which is affecting our ability to do business. You are our route to our consumers and therefore we have a genuine interest in working with you to maintain our mutual license to operate. As the largest supplier of spirits in Australia, we continue to see full-strength spirits and RTD products targeted for licensing restrictions in hotels even though there is no sound basis or evidence to justify such measures. Diageo will continue to fight for the fair and equal treatment of spirits. At the same time, it is important that industry takes positive steps to deal with issues, which is why we worked with the AHA (NSW and QLD) to develop and launch the RSA training workshop – Better Nights. This initiative was positively received by licensing authorities and governments around Australia who are looking for industry to take proactive action to address public concern and problems. More broadly we need to ensure we work together as an industry to have a stronger and more united voice. Looking back on the year, a particularly proud moment for me was being named as the number one alcohol supplier in Australia as ranked by the Advantage customer survey. This survey is the annual industry measure of customer relationships. Building better relationships has been a key focus for Diageo over the past year, particularly within the on-premise, and I’d like to take this opportunity to say thank you for allowing Diageo to partner with you. I look forward to sharing a successful 2012 with you. Tim Salt Managing Director Diageo Australia

Australian Hotels Association Yearbook 2012 |

21


YOUR LOCAL TAB IS NOW A BOOKIE TOO! TAB FIXED ODDS NOW AVAILABLE ON MOST RACES

Think! About your choices. Call your state based gambling help services on 1800 858 858. In NSW call Gambling Help on 1800 858 858 or visit www.gamblinghelp.nsw.gov.au. In WA visit www.gamblinghelponline.org.au. Gamble responsibly.


Tabcorp

T

Adam Rytenskild

“Tabcorp has continued to expand the roll-out of self-service Easy Bet Terminals with more than 3,600 now deployed across its network.”

abcorp’s longstanding partnership with Australian hotels continued to grow in 2011. Our partnerships with the hotel industry are crucial to our collective success and Tabcorp continues to work with the AHA to deliver more opportunities for growth and patronage to hotels. Tabcorp is Australia’s premier wagering, gaming and Keno operator. In wagering, Tabcorp operates its retail business through a network of agencies, hotels and clubs in NSW and Victoria. Tabcorp is the market leader, holding an estimated 43% share of the Australian wagering market. Tabcorp has a number of key competitive advantages in the distribution of wagering services to customers. At the heart of this is the broadest range of products, cash-based betting and a differentiated product offering around Keno, Trackside and live sports betting. In 2011, Tabcorp focused on the introduction of a number of new exciting products, which improve the customer experience and make the overall wagering offer in a hotel more compelling. Hotels are considered an important channel to connect to our younger customers with research showing 65 per cent of customers aged 18 to 34 bet at licensed venues. The company’s investments have been based on improving the customer experience, focusing on self-service technology and delivering growth for our hotel partners. These included Trackside and fixed odds racing, which were introduced into the NSW market in 2011, and the continued roll-out of self-service East Betting Terminals. Trackside is Tabcorp’s hugely popular animated racing game, which combines the excitement and bet types of all racing codes with the simplicity and payout characteristics of number games such as Keno. Following regulatory change in NSW, Trackside became available in NSW in 2011 and as at 30 September 2011, was available in 1388 venues statewide. It, along with the availability of fixed odds racing, has contributed to the growth in the NSW retail network this year. Live sport betting is a key growth area for Tabcorp’s wagering offer and strongly

complements the entertainment experience in pubs. Live betting grew 50 per cent in 2010/11. Customers can only place a live bet on sport in retail or on the phone – it is illegal to do so online - providing another competitive advantage for hotel operators. Tabcorp continually introduces new products and refreshes its offer. Super Multis have recently launched and enable a customer to effectively ‘all-up’ their investment across sport, racing and other betting options. A Super Multi can have up to 10 legs and is Flexi and Parlay enabled. A straight multi (win bets only) can have up to 20 legs. Sport is increasingly an entry point to wagering for many patrons and the new Super Multi product will introduce customers to mixing racing and sport betting. Tabcorp has continued to expand the roll-out of self-service Easy Bet Terminals with more than 3,600 now deployed across its network. Patrons continue to respond positively to the EBTs and they have driven revenue growth. In NSW, selfservice utilisation accounts for more than 20% of NSW retail wagering sales, while in Victoria where the technology is more established, more than 50 per cent of the tickets sold are done via self-service. Hotels remain a critical part of the wagering landscape. Customers continue to want access to a wide range of wagering products and to have a social experience. We are proud of our strong partnership with the AHA and will strive to continue to provide benefits for its member hotels in 2012. Adam Rytenskild General Manager National Distribution Tabcorp

Australian Hotels Association Yearbook 2012 |

23


Over beer? AD?

FOR MORE INFORMATION PLEASE CONTACT YOUR CCA REPRESENTATIVE ON 13 2653


Coca- Cola Amatil

David Halliday

2

011 was a successful and landmark year for CCA Licensed Australia in many ways. Firstly, we signed a new 10 year commercial agreement with Beam Global for CCA to continue as the manufacturer and sales distributor of the Beam Global portfolio in Australia. Our portfolio continues to go from strength to strength led by Jim Beam White, the No1 spirit and RTD by volume and Value in Australia, supported by a strong premium portfolio that continues to grow ahead of the market. During the 2011 year, Jim Beam Black was reinvigorated with new sleek and contemporary packaging, new advertising creative highlighting the premium cues and increased investment in trade activity earlier in the year. The relaunch positioned Jim Beam Black as THE premium quality bourbon. Jim Beam Black full spirit

experienced growth of 11%, well ahead of the premium North American Whiskey category, which has experienced growth of approx. 3%. Canadian Club (CC) ended 2011 as the fastest growing dark spirit/RTD trademark MAT August (Source: Aztec), well on track to surpass a million cases MAT in early 2012. CC has positioned itself as a refreshing alternative to premium beer through the ‘Over Beer?’ campaign. The strategy has achieved great success, cementing the brand as a serious player in the spirit category by redefining the role of dark spirits (i.e. introducing them as a first drink of the night). Secondly, 2011 marked the first full calendar year of full production from the new Greenfield site Bluetongue Brewery Warnervale, one hour north of Sydney on the central coast. Bluetongue Brewery was designed and built for variety and flexibility, with the operation now producing three of the four international premium brands, namely Peroni Nastro Azzurro, Grolsch Premium Lager and Miller Genuine Draft together with the increasingly popular domestic premium range of Bluetongue brands (for sale in Australia and New Zealand). The SABMiller acquisition of Foster’s was completed late in 2011 which resulted in CCA’s selling its 50% interest in Pacific Beverages to SAB Miller. This joint venture was set up in 2006 and over this 5 year period with the tremendous support of our customers, CCA developed expertise in manufacturing, selling and distributing premium alcohol brands and alcohol remains a core growth strategy for CCA. We want to make our relationship even more profitable and productive in the years to come as we focus on our premium spirits, RTDs and soft drinks portfolio, ahead of reentering the beer category in January 2014, post 2 year exclusion period. Finally in 2011, we co created and launched a number of new initiatives and services within the on premise, all developed in close partnership and dialogue with the CCA Licensed On premise Excellence group (OPEG). The main developments from the year included:

1) An industry Training “App” across Beer, Spirits, Coffee and Soft Drinks called FORMULA, which helps teach the basics of Bar Operations to staff. 2) Managerial/Floor Staff training and development utilising CCA’s leadership development modules with courses run in house for Customers at CCA 3) A Wi-Fi initiative that that drives consumers to the bar in return for access to Free Wi-Fi in Venue. 4) A range of On premise Jugware and Glassware using the latest Co Polymer technology as a high quality alternative to glass 5) Exploration of and access to a number of cost savings initiatives available to our customers via OPEG In 2012 we will continue to work closely with the on premise and retail customers in developing and bringing to life a number of new initiatives, innovations and new products, to further drive growth and excitement back into the industry and our valuable hospitality customers and retail partners. In the months ahead we will bring forward both operational and product innovation, including: • New premium products and profit enhancing category development initiatives • New RTD packaging formats targeting new consumer occasions • A new portfolio of non-alcoholic premium glass flavours and range for the on premise • Total equipment and preventative maintenance service teams • Frozen beverages innovation and occasion based solutions • A new premium and super premium Vodka portfolio We look forward to working closely with you and thank you for the tremendous support, enthusiasm and feedback during 2012. David Halliday General Manager Sales (Australia) CCA Licensed Division

Australian Hotels Association Yearbook 2012 |

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he story goes that when James Squire was discovered stealing ingredients from the stores to make the colony’s first batch of beer, the Judge ordered 150 lashes... plus 2 barrels of ale. Thankfully for us, James Squire was a far better brewer than he was a thief. Contact your Lion representative or call 13 15 13 for further information.


LION

F

James Brindley

“It has not only been a big year for innovation in product but also in the way we bring our brands to life and engage our consumers.”

ollowing the merging of Lion Nathan and National foods under the ownership of Kirin in 2009, in 2011 we moved to a one company identity, being “Lion”. It was a year characterised by subdued consumer spending, an uncertain political environment, and natural disasters that have wreaked havoc across our country. Similar to most companies across the retail, grocery and consumer goods sectors, Lion has seen poor weather, low consumer confidence, uncertain economic conditions and the high Australian dollar create a set of conditions that lead to an unprecedented decline in the beer market. This already challenging environment was then compounded by devastating natural disasters. When the worst floods in fifty years hit Queensland in January, the XXXX Brewery was not immune to the rising waters – with the significant flooding ceasing production for a week. Through the hard work and dedication of our people and business partners we were able to recover quickly, and help those around us to do the same. Despite these challenges, we have continued to invest in the development of our brands, breweries, business processes and people to cultivate and sustain beneficial relationships with all of our customers, and through them, Australian beer consumers. We are encouraged by several industry surveys which rate Lion as the leading supplier in terms of customer satisfaction and engagement. While this is a positive sign we will continue to strive to improve our service and offer to all customers! We have also continued to invest in innovation to match consumer tastes and drive some growth into the beer market. XXXX Summer Bright Lager, which was introduced in 2009, has close to doubled volumes over the past year and continues to be one of the fastest growing beers nationally. Our latest mid-strength offering, Hahn Super Dry 3.5, also continues to grow rapidly across the country. We also unveiled a new look for Australia’s leading craft trademark, James Squire, to reveal more about the brand and make it easier for consumers to engage with. We added two new variants to the trademark – 150 Lashes Pale Ale, and a draught cider called

Orchard Crush, made of apples from, of all places, Orange! James Squire continues to grow at above 20% per year, in line with the craft segment. 2011 also saw the introduction of the new 5 Seeds Cloudy Apple Cider from Tooheys, and with the significant popularity of the cider segment we expect this new addition will help 5 Seeds continue on its growth trajectory. This year one of our biggest brands, Tooheys New, introduced the Tooheys New Crew – a team of skilled tradies and good mates, led by Paul ‘The Chief’ Harragon, who are doing a million beers worth of favours for Australian communities. They are on the road looking for building projects that will make a real difference in towns around the country. So far the team has tackled a number of projects, big and small, from renovating surf clubs and sporting clubs to community and disability centres, and they are well on their way to reaching their million beer milestone. In addition to our efforts to build our brands we also recognise our responsibility with other members of our industry in promoting the responsible consumption of alcohol products. In July of this year, in partnership with DrinkWise Australia and other producers, we launched new consumer advisory messages on the labels of our products – starting with our biggest beer, XXXX GOLD. The new labels build on the existing industry investment in DrinkWise’s education initiatives and encourage consumers to be mindful of their consumption and the impact misuse has on themselves and others. As we move into 2012, The Year of the Dragon, we will take from 2011 the thought that we cannot take this wonderful industry for granted. After several years of strong growth, the beer market experienced a significant downward adjustment. But, as we are all custodians of this industry, in the face of short term obstacles it is even more important than ever to remain focussed on doing the right thing for the long term - the right thing for customers, the right thing for our consumers and the right thing for the community as a whole! James Brindley Managing Director Lion Beer, Spirits & Wine Australia

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27


Carlton United Brewers

Ari Mervis

1. What are some of the changes we can expect to see from the completed acquisition of Foster’s? Foster’s Group/Carlton United Brewers enters 2012 as Australia’s leading brewer and part of the world’s second biggest brewing group SABMiller. Being connected to a global network of “beer people” will cement CUB’s renewed focus on beer over the long term. Ultimately customers will benefit via access to world’s best practice across consumer insights, shopper marketing and customer support. Our entire team is focused in making the transition as streamlined as possible, with the core principle of minimal disruption to our customers. The integration of SABMiller, CUB and Pacific Beverages will also see a significantly increased brand portfolio being offered to customers, including Peroni, Grolsh, Miller and Bluetongue. 2.How will these changes affect the sales team or customers? For retailers, the changes will be minimal. In terms of our expanded portfolio, for existing CUB customers it means a simplified ordering process by receiving more brands from the one supplier. For former PacBev customers new to CUB, it means accessing the potential of the leading beer and cider portfolios. CUB will continue to invest in developing solutions to help drive growth in our customers’ businesses, focusing on product innovation and shopper marketing resources. We will continue to support these category initiatives, as well as maintaining brand promotions designed to increase foot traffic. 3. SABMiller brings the Pacific Beverages portfolio with it to CUB. How do you plan to integrate this portfolio into the CUB? In the coming months the team will embed the PacBev portfolio into CUB. Transition is always an exciting time and we want to ensure that we maintain the excellent momentum these brands currently have in the market. Peroni Nastro Azzurro continues to perform well and is one of the fastest-growing international brands across all states. The increased offering in the growing premium beer segment will create new

opportunities for customers. Consumer awareness and trial are important activities set to continue, with growth potential available as part of the CUB network. 4. What are your predictions for the beer and cider categories for 2012? Retailers will continue to see benefit from the beer category by ensuring Australia’s leading, traffic-driving brands are complemented with portfolio solutions that capture the growth in easy-drinking beers, international brands and craft. Cider’s momentum will accelerate over the next year, as more consumers discover its appeal and suitability to Australia’s climate. This year will see further development across CUB’s portfolio, with category leaders Strongbow and Bulmers continuing to grow rapidly. 5. You were named as the new chief executive of Foster’s in December 2011. What is your background and what is your vision for CUB? I am excited to be now based in Australia, working as CEO of this great Australian company. I have been part of SABMiller since 1989, with roles spanning across Africa, Europe and Asia. CUB and Foster’s Group are both icons of the global brewing industry, and beer remains the inherently Australian choice when socialising with friends and family. CUB’s leadership position in the market and proud history in the community will continue, as will our commitment to enabling commercial success for our customers with a dedicated team of beer professionals and an unparalleled portfolio of brands. Ari Mervis Chief Executive Officer, Foster's & Managing Director, SABMiller

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Interview with the National President

Peter Hurley

Q. As National president, how do you view the AHA’s role at a national level? A. There are an increasing number of national issues that affect our industry. The national body is the glue that binds our State bodies together and keeps our focus, and it gives us real negotiating and lobbying strength by being united. Q. How have you seen the last year (2011)? A. What a year it’s been. Our industry has been flogged everywhere but the soles of our collective feet. And the only reason the soles of our feet have escaped the flogging and the subsequent welts is because as an industry we refuse to lie down. • There has been the ongoing saga of the ill conceived Gillard/Wilkie agreement. • There was an attempt to ban smoking in the industry’s purpose built outdoor smoking areas. Tell me that’s not moving the goal posts. • We endure around 40 Federal government funded so called research organisations, not researching the alcohol industry but demonising it and morphing into lobby organizations. Additionally they peddle a proven fictitious figure of $36 B as the cost

to community of harm caused by alcohol. • The Gillard Government has harmonized us into a Federal Award which increases the cost to company of bar wages on Public Holidays from around $31 per hour to around $55 per hour. There’s a lot more harm than harmony in that burst of insanity. • We are having a Carbon Tax imposed on us. • High Australian dollar is a double whammy. More Aussies heading overseas and declining inbound numbers due to Australia becoming a more expensive destination. • Legislation has passed to increase employer Superannuation contribution by 33% I know it’s a corny cliché. But give us a break!

stance, on behalf of the Clubs and Hotels of Australia.

Q. At the end of 2012, the Gillard/Wilkie agreement was a major concern for our industry. How do you see things? A. The only place in the world with mandatory pre commitment is Norway, and we are told they have experienced a near doubling in prevalence of problem gambling.

There are however some key dangers requiring amendment:

Of course the reason for the increase in problem gambling in Norway is because this “new form of gambling” sent recreational gamblers and one assumes problem gamblers to foreign based, un-regulated online gaming operators. Some say mandatory pre-commitment will contain those likely to lose control of their spending yet the Gillard/Wilkie arrangement simply requires a limit to be set, that could be no limit. In fact no-one knows! This deal has trashed the accumulated goodwill that has been carefully cultivated over the last two decades. The anti-gaming zealots, have ensured that any compromise and concessions, any respect for each others perspective has been irreparably damaged. That’s to no-ones benefit except a politician seeking notoriety or a second term.

And while our side of the Gillard/Wilkie argument are accused of dealing in the “crack cocaine of gambling”, Anthony conducts himself in a calm and dignified manner. We speak as one with the Club sector. Q. You place a strong emphasis on safety in your own hotels, Peter, but how do you see the changes to legislation this year? A. The Federal Government’s efforts to ‘harmonise’ work safety laws is appropriately delayed in our Upper House.

• The first is the new laws reverses the Australian’s right to silence. • The legislative structure allows for abuse of the prosecution process. • The ‘harmonised’ laws have excluded the word control, so people will be held responsible for what is ‘reasonable and practicable’. • The definition of work place is to broad. • It is inevitable that prosecutions will occur against people who will have had no control of a work incident. • The codes of practice will smother industry in red tape. It’s time to make amendments. Q. The industry has been the target of many new claims about alcohol. I understand that you have some concerns about the integrity of the research being tabled? A. You may not be aware of a body called the NAAA – the National Alliance for Action on Alcohol. The NAAA is a collective of some 44 organisations involved in alcohol and health research - and propaganda.

It won’t work and it will cost jobs.

The problem is, as with gaming, they have a ‘winner takes all’ ambition.

I also want to thank Anthony Ball, CEO of Clubs Australia- I thank him for his stoic

They want to see the overall consumption of alcohol reduced – not just for problem


drinkers but everyone – even the 90+% of responsible consumers. They advocate price controls like floor pricing and volumetric tax, effectively prohibition through pricing. These same organisations who were claiming a $15b community cost of alcohol, took it upon themselves to inflate that figure to $36b – which then gets repeated and becomes fact. A comprehensive paper produced by Dr Eric Crampton of the University of Canterbury and presented in July of this year proves it could be no more than $3.8b. (which is considerably less than the direct taxes i.e. excise and WET) Australians are right to remain sceptical of the anti-alcohol movement which views all alcohol as being bad all the time. One spokesperson for the ‘lobby’ even suggested earlier this year that one glass of alcohol was as risky as exposure to asbestos or tobacco! Australians rightly want to do something about the problems of alcohol abuse, but what the NAAA fails to highlight is that almost 90 per cent of Australians consume alcohol responsibly.”

Binge-drinking is a multi-faceted cultural problem that cannot be solved with one-sizefits-all approaches and prohibition disguised as other well meaning strategies won’t work. Q. Can you comment on the launch of the TAA this year? A. Tourism Accommodation Australia (TAA) is now the nation’s premier accommodation industry body. It has an exclusive contract between TAA and the American Hotel and Lodging Education Institute to be the provider of their extensive range of hospitality, education and training packages throughout the region. It also has a partnership with AAAT Star Ratings regarding the implementation of the new Star Ratings System and TQUAL accreditation for members. This new organisation will build on the good work done over the years by the Australian Hotels Association. With an independent board, business plan, resources and the full weight of the AHA behind it, TAA will continue to build on the success of the last 150 years.” We have seen enormous social and economic change in Australia since World War 2 and the changes to hotels reflects these changes. Hotels have a highly evolved, sophisticated

product offering that reflects very high consumer standards. Tourism has always been an integral part of our industry. Accommodation is still the core business for the majority of country hotels, and in this respect they have a lot in common with the four and five-star hotels in metropolitan Australia. Q. On a brighter note, the Hotel Industry’s Hall of Fame inductions struck a special chord with you? A. Yes, this year for the first time it went to a South Australian. To a pair of South Australians in fact. Brothers, Guy and Tony Mathews have been in the industry all their lives, and for many years have managed the Mathews Group established by their colourful parents Dos and Seymour Mathews. They have been industry innovators in hotel decor, in high quality food. Guy is on the AHA|SA Council, Tony has been on the Sip n Save Board for over thirty years. They stand tall beside all those inducted in the past.

Peter Hurley National AHA President

“Hotels have a highly evolved, sophisticated product offering that reflects very high consumer standards”

Australian Hotels Association Yearbook 2012 |

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Minister for Tourism

W

The Hon. Martin Ferguson AM MP

ith a challenging 2011 behind us, I look forward to continuing to build on the plan Government and industry have in place to support the Australian tourism industry in 2012 and beyond. In 2011 we faced the full force of Cyclone Yasi and some of the worst floods in Australia’s history, the Qantas grounding and bushfires in Margaret River. These events impacted greatly on Australia’s tourism industry. In addition, we also had to battle the strong Australian dollar and increased competition from overseas destinations, the legacy of the global financial crisis, renewed economic woes in Europe and North America and natural disasters in Japan. As a result, we can expect a continued impact on visitor arrivals this year. Yet despite these setbacks, our industry showed great resilience and strong growth in visitors from emerging markets such as China and India. Tourism’s contribution to the economy increased by 2.5 per cent to $34.6 billion in 2010-11. A record 5.9 million international tourists came to Australia. To respond to these challenges and opportunities, the Prime Minister asked me to update the National Long-Term Tourism Strategy. Tourism 2020 continues the partnership between governments and industry puts our industry in the best position to achieve the potential $115-$140 billion in overnight spend by 2020. Tourism 2020 is our plan for a more productive, innovative, sustainable and resilient industry. Investment in both infrastructure and skills will benefit the tourism industry for many years to come. Reducing labour and skills shortages is a priority for 2012. The tourism industry has around 36,000 vacancies and by 2015 it will require an additional 56,000 people. Labour shortages are more pronounced in regional areas where businesses are competing for workers with the booming resources sector. Tourism remains Australia’s largest services export industry worth $23.7 billion. Even though direct tourism employment increased to 513,700 last year, there’s still more to do.

So I welcome the leadership of the Australian Hotels Association in supporting Tourism 2020 and influencing the agenda of the Labour and Skills Working Group. The working group is implementing a range of initiatives to improve the tourism industry’s ability to attract and retain staff. Eight ‘hot spot’ regions will be equipped with Tourism Employment Plans. Broome in Western Australia and the Red Centre in the Northern Territory are the first projects for 2012. These plans will deliver practical solutions to address the immediate to mid-term labour and skills shortages with an emphasis on making the most of existing government and industry programs. The Australian Government will carry out a three-year trial to bring workers from the Pacific and East Timor to support the accommodation sector in selected seasonal destinations. This follows the decision to support a small-scale trial for tourism operators in Broome. These trials are a good first step to make a real difference to our industry and support economic development in the regions. The Government is developing a template labour agreement for tourism firms and a central online recruiting and training tool for tourism businesses. On the investment and regulatory front 2012 will see action to reduce barriers to hotel and tourism infrastructure development with Commonwealth and State Governments working together through the Tourism Ministers Meetings and in the Investment and Regulatory Reform Working Group. Six priority areas such as land use definitions and zoning have been identified and will be prioritised. While reform is never easy and take time, the reforms being pursued under Tourism 2020 are vital to ensuring a competitive tourism industry. I look forward to working with AHA over the coming year. The Hon. Martin Ferguson AM MP Minister for Tourism

Australian Hotels Association Yearbook 2012 |

33


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Shadow Minister for Tourism

2

The Hon. Bob Baldwin MP

012 will be an important year for the hotel industry; and I’ll be fighting for the interests of both licensed hospitality venues and accommodation hotels. In all central and Eastern States and Territories, Labor’s policy assault on poker machines will threaten the viability of many pubs, without helping those who need it. As a member of the Coalition’s Gambling Reform Working Group I will be working hard to promote solutions that pub owners can live with, and suggesting practical measures to help those who have gambling problems. On 1 July this year, Labor’s Carbon Tax will begin. The Coalition will not rest until the carbon tax is scrapped. It won’t just increase electricity prices in hotels by at least 10 per cent in the first year, it will also increase transportation costs for tourists getting to their hotel destination. The cumulative effect of this great big new tax, the Passenger Movement Charge, Visa application charges, the GST (which is exempted from food and beverages in Europe) and other taxes means Australia is at a competitive disadvantage vis-a-vis other destinations. In 2011, I was dismayed to learn that hoteliers were being bullied not to complain about the effect of this tax or risk an ACCC investigation. Until the Coalition returns to government I’ll be focusing my efforts on positive initiatives to help hotels, such as: • Identifying ways to reduce red tape through an online survey I launched late last year; “Get the Red Tape Gorilla off your back”. Hoteliers can help us help you by filling in this survey at: www.surveymonkey.com/s/ RedTapeGorilla • Finding new ways to encourage Aussies to take local holidays instead of jetting off overseas. Last year 132 million nights were spent overseas by Australian tourists. • Starting work on the 111 policy recommendations that the AHA and other industry groups brought to me in November last year at the Coalition’s Industries For Australia’s Future review. It will be vital that the Coalition hits the ground running after the next election. There’s a lot of work to be done to restore hope, reward and opportunity to a sector that

provides employment to around a million Australians – one in twenty people. Last year, some 18 months out from an election, I was the third Shadow Minister to have my policy document signed off. 2012 will be the year for refining these policy goals and generating more fresh ideas. The Coalition is rearing to go, and I’m excited about the prospect of an election being called so we can reveal the detail of what we’ve been working on over the past year. This is only possible with your help. The AHA’s national office and state divisions are doing a tremendous job supporting the interests of their members and partnering with the Coalition to develop policies for a vibrant and profitable hotel sector. Yours is one of the country’s best advocacy organisations, freeing up its members to focus on doing what they do best. That’s providing genuine hospitality to tourists, entertainment to your customers, and jobs to for your employees. I’m looking forward to continuing this work with the AHA in 2012. The Hon. Bob Baldwin MP Shadow Minister for Tourism

Australian Hotels Association Yearbook 2012 |

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TAA making its mark in Canberra

I

Rodger Powell

Tony South

n establishing Tourism Accommodation Australia as AHA’s newly formed voice representing accommodation hotels, I have been pleased with the quickness with which TAA has been able to become an active and respected advocate in the Federal Parliament and with relevant Government agencies. The Minister for Tourism, Martin Ferguson, attended a luncheon in December with senior industry leaders where the TAA strategic plan was launched. Minister Ferguson and his staff have been very receptive to our messages around labour shortages and their impact on our industry, leading to recent Government announcements of the Pacific Seasonal Worker Pilot Scheme and the development of a template Labour Agreement for the tourism and hospitality sector. These initiatives are not the ‘silver bullet’ to solving the industry’s labour crisis but they were hard-won concessions to the Government’s tough policy on immigration that will have a positive impact, and I thank Minister Ferguson for his role in championing these across various Government agencies. I have also developed a strong dialogue with the Shadow Minister for Tourism, Bob Baldwin, who recently hosted a forum of tourism industry leaders to guide the development of Coalition policy for the next election. It was pleasing to see so many leaders of the various tourism sectors speaking in agreement on the key issues facing the industry at this forum and engagement with Mr Baldwin’s staff since the event indicate that our input has been taken on board. TAA has a broad policy agenda to pursue on behalf of the accommodation industry including taxation, immigration, hotel investment, labour and skills, workplace relations, tourism marketing and business regulation. Having just appointed Luisa Davidson to assist me in Sydney, and receiving support from the AHA’s National Office staff in Canberra, TAA is well resourced and across the major issues facing the industry. The recent appointment of distinguished industry figure Tony South as the inaugural TAA Chairman gives me great confidence that we are on the right track with our

strategic plan announced in December 2011 to meet the needs of accommodation members. Tony is a leader in the accommodation industry both in Australia and overseas, and will be an outstanding advocate for TAA due his extensive experience in government relations, his experience and the respect with which he is regarded within the industry. On a personal level, having worked with Tony 20 years ago as members of the Australian Association of Convention Bureaux Board, I am delighted he has come on board and agreed to lend his support to TAA as Chairman. Tony is best known for an outstanding local and global career with the InterContinental Hotels Group (IHG), most recently with 9 years in Singapore where he took Asia Pacific wide responsibility for IHG’s regional growth. Prior to the Singapore role he was Sydney based as CEO of IHG’s Australia, New Zealand South Pacific business As a Chartered Accountant Mr South was a partner of Horwath in Australia, and joint founder of Horwath’s tourism and leisure consultancy. He was also Managing Director of then publicly listed hotel investment company TAHL (Tourism Asset Holdings Ltd) and MD of the former Sydney Visitors and Convention Bureau. Mr South is a former board member of Tourism NSW and Deputy Chair of TTF Australia, where he is also a life member. It was with pleasure that I recently announced the appointment of a highly experienced board to drive the TAA Strategy and the accommodation industry’s advocacy agenda. The significant contribution to be made by this group of energetic and highly experienced hoteliers lends further weight to the Strategic Plan announced by TAA only a few months ago. With experience in owning, investing, operating and managing substantial accommodation businesses this board will provide a high level of expertise and credibility to TAA as it pursues its advocacy and strategic agenda for the accommodation industry.


The TAA Directors are: • Anthony K. (Tony) South Chairman • Peter J. Hurley CEO – Hurley Hotels, National President – Australian Hotels Association • Peter Crinis Group Executive General Manager – Crown Hotels and Retail President – AHA National Accommodation Division • Nigel Greenaway Fund manager – Eureka Funds Management, Director – TAA NSW • Ashley Spencer Vice President Operations Australia – Hilton Worldwide • Sean Hunt Regional Vice President – Starwood Pacific Hotels Managing Director, Sheraton on the Park • Jonathan Wooller Senior Vice President – SilverNeedle Hospitality • Robert Dawson Area Director, Pacific – Hyatt Hotels and Resorts

• Trent Fraser CEO – Choice Hotels Australasia • Rodger L. Powell Managing Director – Tourism Accommodation Australia This impressive group of accommodation industry leaders brings experience to the table in management, destination marketing, asset management, franchising, human resources and the operation of a variety of accommodation properties from Star Rated Hotels, Serviced Apartments and Motels to Holiday Parks. TAA has brought together a group of individuals whose combined skills and track records will be essential to delivering on our ambitious agenda for the accommodation industry. We will make one or two further appointments as individuals who have the skills to add additional value become available.

With a strong political advocacy history and networks established by the AHA in both regional and metropolitan areas, TAA is well positioned to be the influential voice the accommodation industry needs. Rodger Powell Managing Director Tourism Accommodation Australia

Tourism Accommodation Australia Contacts Rodger Powell – Managing Director Level 15, 131 Macquarie Street Sydney NSW 2000 P: (02) 8218 1840 M: 0417 488 881 E: rodger@tourismaccommodation.com.au TAA NSW Carol Giuseppi Director Level 15, 131 Macquarie Street Sydney NSW 2000 P: (02) 8218 1840 E: carol@tourismaccommodation.com.au TAA VIC Darryl Washington General Manager P: 03 9326 3544 E: darryl@washington.com.au Michelle King Executive Officer E: m.king@taavic.com.au Level 1, 1 Little Collins Street Melbourne VIC 300

TAA QLD Judy Hill Manager Level 14, 270 Adelaide Street BRISBANE QLD 4000 P: (07) 3221 6999 E: jhill@qha.org.au

TAA TAS Steve Old General Manager 25/93 Salamanca Place Hobart TAS 7000 P: (03) 6224 7033 E: taa@australianhotels.asn.au

TAA WA Sarah O’Connor Manager 38 Parliament Place West Perth WA 6005 P: 08 9321 7701 E: taa@ahawa.asn.au

TAA NT Amy Williamson Chief Executive Officer 20/24 Cavanagh Street DARWIN NT 0800 P: 08 8981 3650 E: taa@ahant.com.au

TAA SA Ian Horne General Manager 4th Floor, AHA/SA House 60 Hindmarsh Square ADELAIDE SA 5000 P: (08) 8100 2490 E: taa@ahasa.asn.au

TAA ACT Gwyn Rees General Manager 24 Brisbane Avenue BARTON ACT 2600 P: (02) 6273 6633 E: act@tourismaccommodation.com.au

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Positioning Australia for the Asian Century

T

Andrew McEvoy

he growth of Asia, led by China, and encouraging signs of a bounce back in domestic travel were real stand outs for me in 2011 and both these trends should see Australian tourism continue to grow in the next twelve months. Australia remains a highly desirable place to visit, and 2012 will be about converting this enduring appeal into more visits, longer stays and increased spending by matching our industry’s resources where the best growth opportunities exist. China - already our most valuable market in financial terms - remains a priority international market for Tourism Australia and the Australian tourism industry in 2012, with our focus moving beyond Beijing, Shanghai and Guangzhou and on to the huge opportunities presented by China’s largely untapped ‘tier 2’ cities. ‘China-readiness’ is a key issue for Australia operators and those hotels which are clearly focused on delivering the right product and experience for their Chinese guests will, in the long term, reap the benefits of our fastest growing single inbound market. This is unquestionably the ‘Asian Century’ and this is where our industry must focus its resources. Apart from China, we foresee strong growth from right across Asia – India, Indonesia, Korea, Singapore and Malaysia. There will also be growth from Brazil, Vietnam and other growing economies. Don’t write off the UK, Europe and the Americas either. These markets – as with Japan - are part of our balanced portfolio approach and will come back – in time, when their economies begin to grow again. To help respond to such shifts in our global markets, Tourism Australia is evolving its current There’s nothing like Australia campaign to include new advertising creative. The new creative will be unveiled mid-year and demonstrate what I like to call ‘world’s best in Australia’. There will certainly be a role for the hotels to get involved in cooperative marketing activity around this, and we’ll share these opportunities with you in the coming months. Building tourism demand is not just about campaigns and marketing though. Tourism

Australia is broadening our focus beyond demand-side marketing, to play more of an active role in some of the supply-side issues which prevent our industry realising its full potential. Expect to see more of this in 2012. Australia boasts some of the finest hotels in the world but investment is undoubtedly needed to bring some of our product back up to world class. At a basic level, we need more capital city beds, better beds in regional areas and new attractions. We need new investment and reinvestment into quality hotel stock throughout Australia if we are to achieve our Tourism 2020 goal of doubling overnight visitor expenditure to up to $140 billion by the end of this decade. As part of our new investment development remit, we intend to work with investors, the industry and all levels of government to help facilitate this. And for this, we look for your support. We have to keep improving to stay in touch with a competitive global pack that is tourism today - by continuing to invest in quality products, experiences and better infrastructure to better reflect and encapsulate the modern Australian offering and continue to demonstrate our strategy in a line, There’s nothing like Australia. Andrew McEvoy Managing Director – Tourism Australia

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Australia’s All New STAR Rating Scheme Australia’s official accommodation accreditation program has been relaunched following an extensive review. The Scheme has been developed with broad industry consultation and is underpinned by robust consumer research, which defined a clear mandate to assess ‘quality’ and have an increased focus on cleanliness: z 94% of travellers rate cleanliness as the most important aspect of a STAR Rating z 90% of travellers want STAR Ratings to measure quality Research also confirmed STAR Ratings are the third most influential source of accommodation information, behind property images and family/friend recommendations.

Key outcomes: z New quality-based assessment model replacing facilities-based system z Consolidation of categories from ten to six: Hotel, Motel, Serviced Apartments, Self Catering, Hosted Accommodation, Caravan-Holiday Parks. z Australian Government recognition via partnership with T-QUAL Accreditation z Moratorium policy to give industry time to familiarise itself with the Scheme

For more information about Australia’s new official STAR Rating Scheme please visit starratings.com.au


AAA Tourism

New STAR Rating Scheme Has Landed

Peter Blackwell

“Over the past four years we have overhauled our Scheme to ensure it remains equitable and relevant for travellers and industry alike”

The new Australian STAR Rating Scheme supports government and industry plans to develop an accommodation product that satisfies the expectations of emerging and traditional markets. Central to the changes we have made is a focus on the consumer choice-drivers of cleanliness and quality. Independent research established that 90% of Australian travellers wanted the official STAR Rating Scheme to incorporate quality. This research also found that 94% of Australian travellers rated cleanliness as the most important aspect of an official STAR Rating and the new Scheme unashamedly exceeds their expectations. STAR Ratings were found to be the third most influential source of information behind images of accommodation and recommendations from family and friends. The new criteria have been ranked according to their importance to the consumer and endorsed by industry leaders across the six rating categories. Industry advisory panels comprised representatives of major brands such as Accor, IHG, Choice, Outrigger, Mantra, TOGA, Best Western, the Oaks Group and Stayz, together with independent operators and peak industry bodies such as Tourism Accommodation Australia, Accommodation Association of Australia and Hosted Accommodation Australia. The calibre of the industry advisory panels we engaged to help review and establish the new assessment criteria was a huge factor in the success of our four-year Scheme Review and the launch of our new Scheme. Recognition as a keystone partner of the Australian Government’s new T-QUAL Accreditation is testimony to the role the new STAR Ratings Scheme will play in addressing the supply-side issues Australian tourism must overcome to compete on the world stage. Over the past four years we have overhauled our Scheme to ensure it remains equitable and relevant for travellers and industry alike. Importantly, we have agreed on a Moratorium Policy with our industry advisory panels that will allow operators up to two

years to undertake property refurbishments or upgrades if they are downgraded under the new Scheme and so they can retain their existing STAR Rating. Despite a challenging commercial environment, the “STARS” remain synonymous with independently assessed and qualified accommodation standards, with 85% of Australian travellers using the information when choosing a place to stay. According to the Australian traveller, there is a real need for an independent champion of standards. The Australian STAR Rating Scheme is now positioned to take advantage of consumer demand for a trusted and truly independent source of travel information, as well as to help the Australian accommodation industry capitalise on growth opportunities across emerging and traditional markets.

Club Tourism Club Tourism, a joint venture partnership between the Australian and New Zealand Auto Clubs, manages the Australian STAR Rating Scheme. As such, STAR Rating licensees gain exclusive advertising and promotional benefits via Club Tourism’s channels. Club Tourism is an integrated publishing and marketing business targeting more than 8.4 million Australian and New Zealand Auto Club members. More than 3.5 million guides and 3.5 million maps are produced annually by Club Tourism, promoting over 12,000 properties and attractions. Club Tourism also publishes dynamic travel content via nine websites including across all Australian Auto Clubs, aaatourism.com.au and aatravel.co.nz. To grow and promote your business with Club Tourism and leverage this broad target audience please visit aaatourism.com.au or call (03) 8601 2200. We would welcome a discussion of your business needs and growth planning. For more information on STAR Ratings, visit starratings.com.au. Peter Blackwell CEO Club Tourism

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Food Safety

Jim Smith

F

ood safety and its related legislation has remained an ongoing focus of governments throughout 2011. In the last three years the requirement for food safety programs in the heath and aged care sectors have been implemented in all states and territories and the Federal governments’ attention has now turned to consider what further requirements may be needed for the food services sector i.e. restaurants, catering and hotels. In its submission to Food Regulation Policy Options Consultation Paper on the Review of the 2003 Ministerial Policy Guideline Food Safety Management in Australia: Food Safety Program, the AHA stated that any such additional requirements needed to be based on risk assessment and the best available evidence of the effectiveness of any proposed interventions. The AHA acknowledges that effective interventions will involve both voluntary and mandatory food safety management tools. After consideration of submissions, the government issued its Regulatory Impact Statement in September 2011 in which

(Option 2) was the preferred policy approach (this was favoured by industry including the AHA) as it provided the basis to develop the most cost-effective approach to food safety management by considering a range of risk management tools and assessing their appropriateness in relation to each business type. This approach may result also in lower compliance costs. In 2012 there will be many discussions on the specific tools and requirements for the food service sector. Another major food safety legislative issue has been labelling of food. The Federal Government’s review of food labelling was undertaken and reported in Labelling Logic: Review of Food Labelling Law and Policy (2011). Several recommendations were made by the Review Panel including a recommendation for a multiple traffic light (MTL) front-of-pack labelling system. The recommendation is for the proposed system to be voluntary initially except if health claims are made. It was also recommended (Recommendation 54) that chain food service outlets across Australia and New Zealand be encouraged to display the MTL system on menus/menu boards thus having implications for the broader food service and catering sectors. The Panel also recommended (Recommendation 7) that: ... there be more effective monitoring and enforcement of the existing requirements in the Food Standards Code to provide mandatory warning and advisory statements and allergen declarations on packages of food not for retail sale, foods for sale at restaurants and other food outlets, foods from mobile food vendors and vending machines, and foods for catering purposes. The issue of allergen management within food service establishments has been of concern to consumers, government and the industry. From the industry level there is a clear legislative requirement to provide allergen information to consumers

“The Federal government has embarked on the development of Australia’s first Food Plan through the Minister of Agriculture, Fisheries and Forestry.”

and the implication that by providing this information due care has been undertaken to effective manage allergens during the storage, preparation and serving of meals. The Federal government has embarked on the development of Australia’s first Food Plan through the Minister of Agriculture, Fisheries and Forestry. It is intended that the development of the national food plan will encompass the entire food chain (paddock to plate) and thereby integrate food policy and protect Australia’s food security. Following a national set of Roundtable Consultations with industry, a Green Paper will be released summarising issues raised and options for further exploration. In terms of food safety issues, the consumption of improperly handled uncooked, or lightly cooked products, containing eggs has been of concern to food safety regulators in Australia. A survey was conducted by the Sydney City Council and the NSW Food Authority of raw egg dressings and sauces (mayonnaise, Caesar and tartare dressings) which are widely used in the restaurant and café sector between January and May 2010. A total 107 samples of raw egg products were collected from 46 premises and thirteen samples were classified microbiologically unsatisfactory and one potentially hazardous. Most businesses surveyed required improvement in: • temperature control of raw egg products during and in between use • date coding of raw egg products • egg separation technique during processing to prevent cross contamination. Clearly there is a need for better management of raw eggs within the food services and it is expected that this area will come under closer scrutiny. In 2012 it is expected that government will call for discussions on the Food Plan, proposed specific food safety legislative requirements for the food services sector including allergen management, food handler education and suggestions on voluntary food safety industry schemes. Jim Smith 25 January 2012


Hospitality Training Package

National hospitality training standards under review Concerned about the skills and knowledge of staff working in the hospitality industry? The national training standards for Hospitality are currently under review. The standards cover jobs within a range of hospitality settings including restaurants, hotels, motels, holiday parks and resorts, catering operations, clubs, pubs, cafes, cafeterias and coffee shops. The review is being conducted by Service Skills Australia, the national industry skills council for the services industries. Australian Hotels Association has been working with Service Skills Australia to ensure that the needs of their members are represented. The review takes into consideration the breadth of hospitality skills, including the technical skills of commercial cooks and patissiers, and the skills of reception, concierge, food and beverage, housekeeping, and gaming staff. This is a key opportunity for industry to engage in influencing and informing the next generation of skills required for our workforce. Key themes and trends emerging from the review include: • Employability skills such as communication, teamwork, initiative and self management • Regulatory requirements of responsible service of alcohol, responsible conduct of gaming services and work health and safety • Skill sets in business management, customer service, food safety and housekeeping • Food hygiene and non-food hygiene • Menu planning, costing and knife skills for entry level commercial cooks • Specialisations in Asian Cookery and Patisserie Service Skills Australia is a not-for-profit, independent organisation. It is one of eleven industry skills councils funded by the Australian Government to support skills development. It is the Skills Council’s job to listen to industry and interpret their needs for the future in the skills framework for our sector – the training package.

What is a Training Package? A training package is a document (rather large one) that describes work – in particular, the tasks and activities required by industry to work in the sector. Furthermore, it describes to providers of training in our sector, the conditions required to undertake assessment of work performance. Our training package is not curriculum as such – it is training providers’ job to turn the units of competence and standards into training programs. Of course, the quality of the programs depends on great standards – and this is where you, our industry come in. To make sure that your standards are clear about what we need our workers and leaders to be able to do, it is important that you provide feedback to this review process. To get involved go to: www.serviceskills.com.au/tourism-hospitality-and-events-continuous-improvement

AHA Response The Australian Hotels Association is an active supporter and participant within Service Skills Australia and the AHA is keen to talk to hoteliers about concerns and issues they may have with the hospitality training system. The Hospitality Training Package is currently under review and AHA members have had the opportunity to provide input to this review through Service Skills Australia consultations conducted across Australia and also through dedicated AHA Members consultation and discussion forums conducted in Sydney and Melbourne. These AHA member forums have provided invaluable feedback to Service Skills Australia. It is the work of the AHA and other hospitality industry associations that forges the industry driven training system into the future. Service industries have been experiencing a shortage of suitable job candidates in recent years and also industry has complained about the training system and the quality of candidates graduating through the system. The AHA working with the hotel industry and other hospitality industry associations in an endeavour to reflect the views of members into the training system with a longer term objective of continuously raising the service levels within our growing industry. Members input into this training package review, your continued commitment to training of your employees and your ongoing support of recognised hospitality industry training providers will assist the industry and also assist Service Skills Australia to drive the training agenda.

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National Tourism Alliance

Juliana Payne

N

ow in its 10th year of existence, it is timely to recall that the National Tourism Alliance was created to provide a single voice to government on issues of common interest. With national membership comprising the major tourism, travel and hospitality associations, and all the State and Territory Tourism Industry Councils, the NTA is the forum where industry bodies come together to present their unified position in the federal arena. The need for a unified voice was thrown into sharp relief in 2011, as tourism and hospitality went through what is now called the perfect storm of disasters: from floods in Queensland and Victoria, fire in WA, and Cyclone Yasi, to the tsunami and aftershock in Japan, earthquake in Christchurch, and not one but two ashclouds throwing aviation and travel into chaos. The recent action by Qantas had the potential to cause further disruption and reputational damage, but fortunately was contained swiftly. The ongoing volatility in the Eurozone and the soft US economy form the backdrop to Australia’s two-speed economy driven by the mining boom and the robust Aussie dollar. These extreme conditions helped to drive home some very clear lessons for tourism

businesses, industry associations, and the government: how important it is to have clear, consistent messages and communications coming out of the events, particularly between government and industry, and how we communicate to the public and media; in the case of Queensland, we saw how vital it was to have swift cooperative marketing and information in place to help with the recovery and to minimise fallout to the untouched areas who were still open for business. We saw how it is essential to have strong, updated disaster preparation and recovery plans at all levels of business and government – particularly we saw how those businesses who had done their risk management, who had their recovery plans set up, and who had the right insurance, are the ones who have survived to thrive again. In the meantime, the NTA and industry associations kept busy through the year on our ongoing policy advocacy to government, which rapidly included the issues of recovery assistance to businesses, and extra marketing and infrastructure rebuilding funds. Some of the other policies that we wrote and talked to government about included streamlining business and skilled migration visas, revisiting the changes to the international student market to rebuild the sector, updating and improving working holiday maker visas, reinstating ABS data for small accommodation providers, cutting red tape and barriers to tourism development, tax breaks for accommodation developments, and retaining funding incentives for apprentices. We have been protesting the cuts to Customs which will affect passenger times in major airports. We have been pushing for Tourism Australia for have an increased budget for marketing Australia, and at least to retain its current budget in real terms in what will be a tough budget year in 2012. Some small wins were achieved with the government agreeing to a trial Pacific-worker type scheme for tourism, and to amend the component pricing legislation which was leading to costs and fines for venues over weekend surcharges on their menus. As we look forward to 2012, there is one positive perspective on the many harsh events that have affected tourism and hospitality.

It has highlighted very clearly what a huge role tourism plays in the economy, with up to 1 million employees, and particularly in regional areas where nearly half of each tourism dollar is spent. Tourism has been saying this for years, and we intend to build on this renewed awareness of the importance of this sector. We will be working with the Federal government to seek real outcomes from its 2020 tourism strategy, as the industry seeks to target the rising Asian and other high yield sectors, such as business events. We need government to focus on its role in providing public and tourism infrastructure, on national marketing and on how it can reduce the red tape and costs that are burdens to tourism businesses. Businesses can then do what they do best: deliver high quality, highly desirable products and services visitors. The ongoing labour shortage will continue to limit growth in tourism and hospitality, where businesses are inherently reliant on human capital and quality customer service to add value and differentiation, and the industrial relations system will continue to be a challenge to the 24/7 needs of tourism and hospitality businesses. We will continue to advocate for a more flexible and open labour market, for more temporary skilled migration, and for improving productivity and participation in the workforce to help allay the labour shortages. In a year when we will see the implementation of the carbon price, and its as yet unknown impacts on tourism businesses, we also see significant political pressure to bring in a Federal budget surplus. We will continue to work with industry associations to advocate tourism’s policy issues to the Federal government, Opposition and minor parties, to ensure government is there to facilitate business success, rather than be a barrier to growth and profitability. The NTA acknowledges the ongoing hard work of its current member associations, and looks forward to welcoming new members who wish to support a national voice on tourism. Juliana Payne Chief Executive Officer National Tourism Alliance

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APRA

Life’s Better with Live

Jennifer Gome

“If we are to realise the cultural and economic potential of live music, we need to gain the support of people from every aspect of the industry”

The live music industry holds a significant place in Australian history. It has and continues to contribute heavily to our sense of national identity and culture. From 1920’s jazz bands, 60’s rock’n’roll, and 80’s pub rock through to breaking acts of today– the entertainment culture of these decades have been defined by the popularity of the live music of the time. As well as forming part of our national identity, our live venues have nurtured some of Australia’s biggest music exports – ACDC, INXS and Tommy Emmanuel all began their musical careers in pubs, bars and clubs off the beaten track across the country. These and many other artists have always sought a stage to perform on, and an audience to play to. But it’s not only these internationally recognised acts who owe their careers to local live venues. In pubs, hotels and restaurants across Australia, emerging artists are getting their career kick-start. These establishments provide them opportunities to develop and refine their skills as musicians both creatively and technically. The bottom line is that live music venues provide a livelihood for musicians at all stages of their career. For example, jazz songstress Katie Noonan performing at The Basement, dance outfit Art Vs Science playing the Oxford Arts Factory, The Drones rocking out at The Tote or Sarah Blasko wooing audiences at The Settlers Tavern in Western Australia. Pubs, clubs, bars, restaurants and cafes that present live music provide performing musicians with the opportunity to extend their fan base, generate income and contribute to the national creative landscape. In addition to benefits for musicians, and our culture, the potential of live performance is considerable. Cultural tourism is an exciting opportunity that awaits. Over the last decade gaming, the change in entertainment spend, government red tape and regulation have all contributed to issues surrounding live music in venues. Intense lobbying in NSW finally saw the removal of the ‘live music killing’ POPE licence; and in Victoria a 20,000 strong march down Swanston Street provided the impetus for the Live Music Accord. At this point, I would like to take this opportunity to acknowledge the

efforts of groups like SLAM in Victoria and individuals like John Wardle, and thank them for their commitment to change. To varying degrees live music has suffered in each state and territory on the back of regulations relating to liquor licensing, planning, noise restrictions and security. The problem? Policy decisions being made without a complete understanding of the live music industry value chain. The results from the recently released report, ‘The economic contribution of the venue-based live music industry in Australia’, provide a platform for discussion with both Federal and State governments about the need for a strategic approach to the development of the venue-based live music industry. If we are to realise the cultural and economic potential of live music, we need to gain the support of people from every aspect of the industry –performers, venue owners, hospitality sector officials, politicians and media.

Life is Better with Live – Key Findings From the study, ‘The economic contribution of the venue-based live music industry in Australia’, as commissioned by APRA|AMCOS, Arts NSW, Arts Victoria, Australia Council of the Arts and Live Performance Australia, and conducted by Ernst & Young. The live music industry generated gross revenues of $1.21 billion during the 2009/10 financial year. This was driven by patron spend at live music performances which included ticket sales to live performances and food and drink. • These revenues were generated from an estimated 41.97 million patrons attending approximately 328,000 venue-based live music performances at 3,904 live music venues across Australia. • $652 million total profits and wages, or value add, were generated by the industry. • And the venue-based live music industry supports employment of over 14,800 full time equivalent positions. For view the full report, head to www.apraamcos.com.au Jennifer Gome, Director of Licensing APRA|AMCOS

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DSICA’s new publication on the social aspects of alcohol in Australia, Alcohol in Context is available on request from DSICA. Please send your details and no. of copies to: Email: Or by phone:

info@dsica.com.au 03 9696 4466

stock is limited


Distilled Spirits Industry Council of Australia

T

Gordon Broderick

“If we are to realise the cultural and economic potential of live music, we need to gain the support of people from every aspect of the industry”

he Distilled Spirits Industry Council of Australia (DSICA) is the peak industry association for the major manufacturers and importers of distilled spirits in Australia. We represent the interests of several global distillers to the federal and state governments. DSICA campaigns strongly for alcohol tax reform on the rational basis that all alcohol is alcohol, and it should be taxed on the same basis, irrespective of how it is made. DSICA calls for a volumetric taxation system across all categories of alcohol, because the tax burden on different manufacturing sectors varies hugely and the current system is simply unfair to spirits consumers. Even beer is over-taxed compared to the tax paid on most wines. The Henry Tax Review suggested a rational and fair tax system for alcohol, and DSICA supports the Commonwealth Government introducing that system over a long time period, taking several years. The Henry Review’s recommendation to equalise taxes on beer, wine and spirits is to hold spirits taxes at a constant level over time, and let wine and beer taxes catch up through the normal process of increasing alcohol taxes in line with inflation. This process would avoid huge market disruption and instantly dropping the price of bottled spirits by a great margin. The alcohol industry as a whole should get behind the Henry Tax Review, because it recommends that governments stop taxing alcohol for simply revenue raising. Instead, alcohol tax should be set at a level to recover external social costs. These external social costs (policing, health care, etc) would be properly and honestly worked out, and would probably be less than what the industry currently pays. Another area that DSICA works on is to combat unjustified and illogical discrimination against distilled spirit products in licensed premises. Some licensing regulators take the view that ‘hard liquor’ is the cause of most trouble and informally suggest to licensees that some spirit products not be sold, or be heavily restricted. Sometimes these bans are made formal regulation. For example, some licensing areas ban serving double nips after midnight,

shots and cocktails, yet are perfectly happy for bottles of wine and jugs of beer to be sold until closing. DSICA believes that ‘alcohol is alcohol’ and it has exactly the same impact if it is in a beer, a wine or a spirit. Nominating a type of drink as the problem merely shifts the focus away from Responsible Service of Alcohol and the personal responsibility away from the patron. It certainly does nothing to stop someone who wants to drink to intoxication. DSICA members are very mindful that alcohol advertising and marketing has to be responsible and avoid linking alcohol to several issues, such a driving or being socially successful. To enhance that, DSICA developed a Statement of Responsible Practises for Alcohol Advertising and Marketing. This document acts as a code of practise and covers all marketing activity, and includes new areas such as social media, product placement and alcohol energy drinks. For a long time, DSICA has been concerned that the debate about alcohol in Australia is too episodic and media-driven. The public debate focuses briefly on ‘problem’ areas or ‘problem’ types of drinkers. The answers are always more regulations on drinkers, licensed premises, or manufacturers. Very rarely is the debate about possible wider reasons and causes, or what other changes are going on in society. To foster that wider view and generate broader debate, DSICA has published a book - Alcohol in Context - on the social aspects of alcohol in Australia. We hope that this book leads to a deeper and better informed debate about alcohol and society. Gordon Broderick Executive Director DSICA

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What issues have affected hoteliers in 2011? Over the past 12 months, Aon has noticed an increasing number of claims relating to theft, fire and flood. Anthony Boi, National Practice Group Executive, Aon discusses these issues and how hoteliers can plan for 2012.

Theft

Anthony Boi

“It’s important to clearly understand what type of cover is in place and how it will respond in the event of storm damage versus a flood.”

Aon has noticed an increasing trend of hotels being the victim of armed hold-ups and breaking and entering, particularly with gaming machines on-site meaning hotels have become cash targets. Aon see claims for situations that could have been avoided had the hotel staff followed basic risk management practices and procedures, such as: • Regularly clearing cash from bar and TAB tills to a safe. • Checking the entire premises at close of trade before locking up. Use security staff where necessary. • Securing the hotel premises before attending to hotel cash registers and poker machines. Using hotel security staff where necessary. • Performing regular cash deliveries to the Bank and varying the times and frequency of deliveries • Consider using professional money carriers

Fire In recent years an increasing number of hotel fire claims have been submitted to Aon. Not only can fires cause significant property damage and disruption, you could also suffer a major financial loss as a result of being underinsured. Make sure you know your hotels true replacement value (and insure against this) and also have the correct insurance for your hotel’s trading revenues. Business interruption insurance provides protection for the loss of profits while unable to trade, for example, if a fire caused closure of part closure, subsequent lost hotel profits would be insured to cover fixed hotel expenses.

Floods Following the devastation caused by floods in QLD, northern NSW and VIC, hoteliers need to assess their business continuity plans and prepare for the unexpected.

By taking the time to read through policies in detail, hoteliers can work on mitigating potential losses in the future. Key points to keep in mind when reviewing documentation include: • How will the policy respond to a particular event? • Do you understand the implications of one coverage option over another? • Does your policy address all your business concerns? In the case of natural disasters, if flood is a real exposure and insurance cover is required, this would need to be investigated with your broker as policies often do not automatically include flood cover. You’ll also need to consider an adequate predetermined flood limit cover and a flood specific deductible appropriate for your hotel. It’s important to clearly understand what type of cover is in place and how it will respond in the event of storm damage versus a flood. The definition of flood can vary from policy to policy with different insurers.

Looking ahead to 2012 It’s time to take stock of your business and plan for the rest of 2012. Some key points you should consider are: • Make sure you are fully covered – underinsurance can be costly • Understand the full replacement value of your assets - new for old • Value and protect your income • Identify the hazards and risks to your business • Make sure you understand your policy and what’s covered • Establish a relationship with a trusted insurance broker who understands your industry and your individual risk exposures Aon is the leading insurance broker to the hospitality industry with experience in catering to the risk and insurance needs of hotels. For further information please contact us on 1800 633 402, au.hotels@aon.com or visit www.aon. com.au/hotels. Anthony Boi National Practice Group Executive Aon Risk Services Australia Limited

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Winners Summary by State/Territory ACT Diamant Hotel Canberra Best Marketed Hotel – Accommodation Division Now reopened after being damaged by a recent fire, the Diamant Hotel Canberra promises to bounce back quickly thanks to the innovative promotional flair of its in-house marketing team. Lucrative partnerships with the nearby National Gallery of Australia, Australian National University and National Museum of Australia along with a modern style have helped this refurbished heritage hotel to quickly become a Canberra icon after opening in 2008.

conference and event facilities overlooking beautiful Coogee beach, an eighteenhundred person live entertainment venue, two retail liquor outlets and a brassiere, the multi-award winning Coogee Bay Hotel offers everything you’d expect to find in a great Australian pub. The hotel’s owners have also shown great community spirit by donating more than $200,000 in cash, in-kind donations and sponsorships to groups such as the Coogee Lions Club, Sydney Children’s Hospital and Randwick Surf Rescue.

Bilson’s Restaurant, Radisson Blu Plaza Hotel Sydney Best Restaurant – Accommodation Division Bilson’s, located in Sydney’s Radisson Blu Plaza Hotel, has a long track record as one of the city’s finest dining destinations with its famous French-style degustation menu.

Eastwood Hotel John Savona, Hyatt Hotel Canberra Best Front of House Employee Courteous, well-presented and highly knowledgeable, John Savona is everything a hotel wants at the front of house and provides guests Canberra’s leading five-star hotel with outstanding customer service.

NEW SOUTH WALES Coogee Bay Hotel Overall Hotel of the Year (Metropolitan) Boasting seven bars, Sydney’s biggest beer garden, budget to boutique accommodation,

Best Gaming Venue – Metropolitan The open plan design of the renovated Eastwood Hotel and its unique ‘Dragon’s Den’ theming complement its responsible gaming materials and the availability of complimentary snacks and hot beverages.

Mike Enright, Ivy Bar

Est, Establishment Hotel

Bartender of the Year With 20 years’ experience in bartending and a keen interest in mixology, Mike Enright also boasts an impressive knowledge of bar products and the preferences of Ivy’s diverse clientele. Mike’s passion and commitment shine through in his exceptional service standards in one of Australia’s leading venues, and he is also a regular contributor of columns to many leading industry and consumer publications.

Best Restaurant – Metropolitan Consistently recognised amongst Sydney’s finest dining venues, Est in the Establishment Hotel provides an overall experience to remember from the greeting in the guest foyer to advice on wine and cheese selection combined with outstanding food presentation.


S U N DAY 2 1 AU G U S T F O U R S E A S O N S H OT E L SY D N E Y Gary Johnson, Hilton Sydney & Greg Bookalil, Epping Hotel Chef of the Year (Joint Winners) Leading Hilton Sydney’s team of 50 chefs across six kitchens, Gary Johnson prides himself on his pursuit of perfection in all aspects of the business. From demanding the freshest local produce to engaging with guests and meeting demanding KPIs, Greg is one of the Australian accommodation industry’s finest executive chefs. Passionate and creative, Greg Bookalil is a strong supporter of his kitchen team which has helped him to oversee the growing success of food operations across three hotels which together serve over three thousand meals per week.

1930s Tudor-design Camden Valley Inn is set amidst 5 acres of award-winning gardens and features a country-style pub and sports bar, restaurant, hotel lodging with function facilities.

NORTHERN TERRITORY Walkabout Lodge Nhulunbuy Best Mid-Range Accommodation Culturally sensitive to the local Yolgnu people, Walkabout Lodge offers a range of accommodation for visitors to Arnhem Land. The furnishings including swimming pool, restaurant, bar and function facilities accentuate the tropical surrounds and the business is being rewarded for its recent refurbishments.

Ivy Bar Best Entertainment Venue The stunning Ivy Bar offers a range of entertainment options catering to a wide cross section of patrons, excellent bar staff and a top notch security team in one of the industry’s most glamorous settings.

Wisdom Café & Bar

Hilton Sydney Outstanding Achievement in Training Team members at the Hilton Sydney have access to the global Hilton University, while in-house training was delivered through 97 class-based training courses and 48 practical training sessions over the past year. Incoming Hilton Sydney staff undertake a three-month induction process providing skills in service and teamwork.

Camden Valley Inn Best Pub-Style Accommodation 45 minutes southwest of Sydney, the

The Mill Hotel Best Redeveloped Hotel The Mill Hotel in Sydney’s south west has undergone a complete redevelopment and transformed from a tired 1970s roadhouse to a state of the art modern hotel offering the full range of hotel facilities including four bars, gaming room, wagering facilities, outdoor entertainment area, 21 accommodation rooms, a drive through bottleshop with convenient pizza menu, bistro and outdoor beer gardens.

Outstanding Community Service & Achievement In its brief five-year history in Darwin’s busy Mitchell Street, Wisdom Bar & Café has strived to support local community groups and charitable causes while engaging patrons through a variety of events and activities. Organisations benefitting from Wisdom’s community spirit include the Blue Foundation, Camp Quality, the Queensland Flood Appeal, Pink Foundation, Darwin Children’s ward and a host of local sporting groups.

Dee Mulligan – Shennanigans Hotel Industry Rising Star Born in Ireland and coming to Melbourne Australia, Dee travelled and worked

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her way up the East Coast of Australia. She finally arrived in Darwin to work at Shennanigans. She started as a Waitress in Sept 2008. In her words she ‘instantly felt at home’…she progressed to a Floor Supervisor, then Duty Manager and finally General Manager in early 2011. She is well qualified to be a Manager having obtained an accounting degree back at home in Ireland.

demographic of patrons. The hotel’s attentive staff make visitors feel instantly welcome.

Fitzy’s on Church Best Restaurant (Country) Since completing a multi-million refurbishment in 2009, Fitzy’s on Church has raised its game in the dining stakes through its improved 220-seat Fibber Magee Restaurant.

Cloudland Bar

Monsoons Best Marketed Hotel In late 2009 the ownership of Monsoons set out on a quest to broaden its customer base through more inviting branding, marketing and a venue culture change. Following extensive market research into Darwin’s late night market, Monsoons has been hugely successful in marketing its improved entertainment offerings through direct marketing, use of interactive technologies and public relations activity.

Best Bar Presentation & Service (Metropolitan) Best Redeveloped Hotel Cloudland Bar’s standout façade lighting display is only the tip of the iceberg for this impressive three-story redeveloped hotel in Brisbane’s Fortitude Valley. Inside the hotel are separate bar rooms featuring a retractable roof, 14 tons of Chinese marble and 19,000 glass balls. The striking physical features are matched by the outstanding service standards of Cloudland’s attentive and knowledgeable staff.

Pineapple Hotel QUEENSLAND Exchange Hotel Townsville Overall Hotel of the Year (Regional) Best Bar Presentation & Service (Regional) With four themed bars representing the great exotic trade routes from across the globe, the Exchange Hotel Townsville sets a new standard for bar presentation and service in regional Australia. Featuring live entertainment, impressive bistro menu, world-class design and furnishings incorporating modern technology, function facilities, the hotel caters to Townsville’s wide

Best Sporting Entertainment Venue The Pineapple Hotel’s restyled Fifth-Quarter Sports Bar brings together the hotels PubTab, lounge bar and public bar areas within of Brisbane’s oldest hotels. The hotel also puts its money where its mouth is, sponsoring a host of local football, cricket and golfing clubs.

Holiday Inn Townsville Best Redeveloped Hotel (Accommodation) A seven million dollar top to bottom refurbishment of the Holiday Inn Townsville has already delivered significant return on investment through improved environmental sustainability and by creating a more attractive guest experience across all aspects of the hotel.

SOUTH AUSTRALIA Guy and Tony Matthews Inducted into the AHA Johnnie Walker Hall of Fame.

Walkers Arms Hotel Best Environmental Practice Best Outdoor/Non-enclosed Facility Winner of five awards at the recent AHA


S U N DAY 2 1 AU G U S T F O U R S E A S O N S H OT E L SY D N E Y South Australia Awards night including Best Overall Hotel, the Walkers Arms has been triumphantly rebuilt after being destroyed by fire in 2007. The new building generates its own electricity and includes a 91,000 litre water tank which captures rain water on those occasions when it does rain in Adelaide for use in the surrounding gardens and in providing hotel grey water. The $11.7 million rebuild includes a generous outdoor space licensed for 290 people and offering a comfortable and entertaining open-air facility within the venue catering for both smokers and non-smokers.

Stillwater River Café Best Stand-Alone Restaurant On the banks of Launceston’s Tamar River, Stillwater glows with the authentic warmth only an 1830s timber building can offer with a six-course evening degustation menu or casual breakfast, a corporate lunch or a coffee with friends.

Port Lincoln Hotel Best Tourism Initiative The Port Lincoln Hotel has developed a tourism initiative to attract visitors to the Eyre Peninsula through the introduction of personalised itineraries and tourist information packages sent in response to accommodation enquiries.

Cremorne Hotel Best Bar Presentation & Service (Metropolitan) The Cremorne Hotel, with its main bar, restaurant, sports bar, gaming and fabulous outdoor area has something for everyone, but its amazing staff and high service standards are what most impressed the AHA’s judges.

The Highway Best Retail Liquor Outlet Featuring one of Australia’s first drivethrough bottleshops, The Highway’s retail outlet offers a huge selection of boutique beers & wines, knowledgeable staff and long opening hours. An innovative loyalty program, a free delivery service and regular tasting sessions help keep The Highways retail customers coming back time and time again.

TASMANIA Saffire-Freycinet Resort Best Overall Hotel (Accommodation) Best Deluxe Accommodation Featuring luxury suites with views of Great Oyster Bay and the Hazards Mountains, Saffire is one of Australia’s most unique accommodation developments, and an icon of the Tasmanian tourism industry. The luxury extends beyond the hotel’s boundaries, with guests able to relax at Saffire’s own lounge at Hobart Airport while awaiting transfer.

VICTORIA Flowerdale Hotel Outstanding Community Service & Achievement When the tiny town of Flowerdale was devastated by the 2009 Victorian bushfires which killed 13 people and destroyed 221 of the 350 homes in the area, the Flowerdale Hotel became the pillar of the community. Providing shelter and free meals, the hotel became the meeting place for the local community as it first regrouped, and then began the recovery effort with the arrival of reconstruction workers. A charity cricket match pitting the recovery workers against the locals raised more than $20,000 towards the cause, and today the Flowerdale Hotel continues to support the redevelopment of its local community.

Olive Tree Hotel Best Gaming Venue (Country) The Olive Tree Hotel’s clean and comfortable gaming room is serviced by friendly and courteous staff and offers excellent hotel

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facilities and a generous outdoor area with facilities for smokers and non-smokers.

is the oldest hotel in its district. Owners Ken Price and Michael and Susan Burke took over the hotel in 2009 and have placed an emphasis on food operations.

Eco Beach Wilderness Resort Best Bistro (Country) Lord of the Isles Tavern Recently renovated, the modern bistro, alfresco area, separate function facilities, and comfortable bar make Geelong’s Lord of the Isles Tavern one of Australia’s great regional hotels. But the real standout in this category was the exceptional service and attention to detail provided by the venue staff, both on the floor and in the kitchen.

Best Suite/Apartment Hotel

Richelle Zealley – Grand Terminus Hotel Melbourne Hotel Industry Rising Star Richelle has worked in the hospitality sector nearly all her life. Starting work in her parents Motel in Echuca she has progressed from cleaning rooms to becoming a leading personality and businesswoman in the Victorian hospitality Industry. She has worked in Melbourne and in country Victoria and has solid Industry experience from country pubs to fine dining. Now managing the Grand Terminus Hotel in Bairnsdale for the last 4 years, she has also squeezed in time to complete 2 Diplomas of Hospitality and Tourism to go with her Communications Degree.

Citadines on Bourke Melbourne Citadines on Bourke Melbourne, in the heart of the city’s CBD, offers access to major business and financial offices as well as many world-renowned restaurants, entertainment areas, shopping precincts and theatres.

Best Environmental Practice Eco Beach is a multi award-winning resort comprising 25 luxury suites set amongst the pristine and untouched Kimberley an hour south of Broome. Accommodation provides guests with an unforgettable and unique wilderness experience whilst having minimal impact on the surrounding landscape.

Cable Beach Club Resort Best Resort-Style Accommodation Located on Broome’s picturesque beachfront, Cable Beach Club Resort & Spa offers studios, bungalows, private villas and luxury suites as well as three restaurants and the indulgent Chahoya Spa and Salon. The excellent visitor activities ensure there is always plenty to do amongst the relaxing surrounds of Cable Beach.

WESTERN AUSTRALIA Settlers Tavern

Best Bistro (Metropolitan) Malvern Hotel The Malvern Hotel was built in 1853 and

Best Entertainment Venue With a longstanding reputation as a live music venue, Settlers Tavern in WA’s Margaret River stages a remarkable 250 live shows per year ranging from local unplugged sessions to major international acts.

Els Jennings – The Breakwater Employee Excellence in Service


S U N DAY 2 1 AU G U S T F O U R S E A S O N S H OT E L SY D N E Y Helping a guest deal with planning authorities to organise a Harley Davidson motorcade across an overwater footbridge and into the venue for his wife’s fiftieth birthday party shows how far Events Manager Els Jennings will go to ensure a great function at The Breakwater in Perth.

Esplanade Hotel Fremantle Best Superior Accommodation Heritage style meets modern facilities at the harbour side Esplanade Hotel Fremantle, which offers superb four-star accommodation and beautiful water and parkland views.

2011 National Awards for Excellence – General report

T

he AHA National Awards for Excellence were held on Sunday 21 August at the Four Seasons Hotel in Sydney. The National Awards is the hospitality’s Night of Nights and brings together the industries leaders for a night of recognition, celebration and reflection of the past 12 months. With over 220 award finalists and more than 500 attendees the event was well attended by Australia’s finest accommodation hotels, pubs, restaurants and key industry suppliers. The night was kicked off to a cracker start with an explosion of glitz and glamour as Girls on Film took to the stage. The scene was then set for the night by the Road to the Nationals montage, showcasing the highlights from each AHA state awards which led to the National Awards. Girls on Film

Carbon Sports Bar – Burswood Entertainment Centre Best Sporting Entertainment Venue Carbon Sports Bar in the Burswood Entertainment Complex features a 12 metre dedicated sports screen, and sixteen other television screens dedicated to sport.

The Hon. Martin Ferguson AM MP, Federal Minister for Tourism

The Hon. Martin Ferguson AM MP, Federal Minister for Tourism made an opening address on behalf of the Federal Government and presented the award for Best Tourism Initiative to the Port Lincoln Hotel in South Australia. Ian Cover did a fantastic job as the Master of Ceremonies for the evening, steering through all 33 awards in swift fashion and with good humour.

The Four Seasons Hotel was an exceptional venue, with food that couldn’t be faulted and attentive staff. The highlight of the night was the induction of Tony and Guy Matthews into the Australian Hotels Association’s highest individual honour, the Johnnie Walker Hall of Fame. In making the induction speech, AHA National President Peter Hurley highlighted examples of Guy and Tony’s successes in the industry over seven decades including introducing counter meals to bar rooms in South Australia in the 1960s, bringing the all-you-can-eat smorgasbord concept to the state a few years later, pioneering the concept of the outdoor beer garden and accidentally inventing the drivethrough bottle shop. The formalities came to an end with the entertainment of the sensationally outrageous Peter Dee and his lyrical comedic talents. The AHA would like to thank our sponsors for their strong presence at the Awards. The night wouldn’t have been a success without all of their support and a special mention goes to the supply of refreshing beverages from Diageo, LION, CUB, Coca-Cola Amatil, Treasury Wines, Coopers, and Schweppes. The 2012 National Awards for Excellence will be held on Wednesday 5 September in Hobart. Eligible finalists will be contacted to submit their nominations in early March 2012, ticket sales for the dinner will also be opening at this time. For more information, please contact Sarah Maguire, AHA Marketing and Events Executive on 02 6208 2165 or maguire@aha.org.au.

Hotel industry rising star The AHA believes that it is important to recognise the work and dedication of up and coming employees forging their careers in the hospitality – after all, they are our future. Being a national finalist for this prestigious award is an achievement in itself, and all finalists in the category were invited to the stage and were presented with a plaque from Peter Hurley, AHA National President, and Des Crowe, AHA National CEO.

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patrons through a variety of events and activities. Organisations benefitting from Wisdom’s community spirit include the Blue Foundation, Camp Quality, the Queensland Flood Appeal, Pink Foundation, Darwin Children’s ward and a host of local sporting groups.

Finalists present on the night L to R: Richelle Zealley, Tatenda Manduku, Taryn Spicer, Dee Mulligan, Robby Lippett

Steve Hopkins, Coca-Cola Amatil with Todd and Matt McCourt from Wisdom Bar & Café

Des Crowe, National AHA CEO; Pinar Altinova, ME Bank; Dee Mulligan, Shenannigans; Richelle Zealley, The Grand Terminus Hotel; Peter Hurley, National AHA President.

Finalist included; Richelle Zealley, The Grand Terminus Hotel Bairnsdale VIC Hayley Sice, Cradle Mountain Chateau Cradle Mountain TAS Tatenda Manduku, Amora Hotel Jamison Sydney NSW Kate Stenning, Rydges Melbourne Melbourne VIC Taryn Spicer, Holiday Inn Perth Perth WA Dee Mulligan, Shenannigans Darwin NT Robby Lippett, Independent Pub Group Magill SA As the calibre of finalists were so high, the judges decided to award two winners, Dee Milligan from Shennanigans in Darwin and Richelle Zealley from the Grand Terminus Hotel Melbourne. Born in Ireland and coming to Melbourne Australia, Dee Mulligan travelled and worked her way up the East Coast of Australia. She finally arrived in Darwin to work at Shenanigans. She started as a Waitress in Sept 2008. In her words she ‘instantly felt at home’…she progressed to a Floor Supervisor, then Duty Manager and finally General

Manager in early 2011. She is well qualified to be a Manager having obtained an accounting degree back at home in Ireland. Richelle Zealley has worked in the hospitality sector nearly all her life. Starting work in her parents Motel in Echuca she has progressed from cleaning rooms to becoming a leading personality and businesswoman in the Victorian hospitality Industry. She has worked in Melbourne and in country Victoria and has solid industry experience from country pubs to fine dining. Now managing the Grand Terminus Hotel in Bairnsdale for the last four years, she has also squeezed in time to complete two Diplomas of Hospitality and Tourism to go with her Communications Degree.

When the tiny town of Flowerdale was devastated by the 2009 Victorian bushfires which killed 13 people and de stroyed 221 of the 350 homes in the area, the Flowerdale Hotel became the pillar of the community. Providing shelter and free meals, the hotel became the meeting place for the local community as it first regrouped, and then began the recovery effort with the arrival of reconstruction workers. A charity cricket match pitting the recovery workers against the locals raised more than $20,000 towards the cause, and today the Flowerdale Hotel continues to support the redevelopment of its local community. Shown on the night was a moving montage put together by the AHA showcasing the amount of community spirit the Flowerdale Hotel had inspired in their grief stricken community.

Outstanding Community Service & Achievement In recognising the amazing achievement of service of our members to their communities, it was very hard to go past awarding the Wisdom Bar & Café and the Flowerdale Hotel. In its brief five-year history in Darwin’s busy Mitchell Street, Wisdom Bar & Café has strived to support local community groups and charitable causes while engaging

Viv and Steve Phelan from the Flowerdale Hotel with Steve Hopkins of Coca-Cola Amatil

The Exchange Hotel Townsville The Exchange Hotel Townsville took out two awards on the night, firstly for best bar presentation and service in the regional


S U N DAY 2 1 AU G U S T F O U R S E A S O N S H OT E L SY D N E Y division and most notably best overall regional hotel of the year. With four themed bars representing the great exotic trade routes from across the globe, the Exchange Hotel Townsville sets a new standard for bar presentation and service in regional Australia. Featuring live entertainment, impressive bistro menu, world-class design and furnishings incorporating modern technology, function facilities, the hotel caters to Townsville’s wide demographic of patrons. The hotel’s attentive staff make visitors feel instantly welcome.

David Stingl of Carlton United Brewers presenting the Exchange Hotel Townsville with the award for Best Overall Regional Hotel of the Year

Coogee Bay Hotel Sydney’s iconic Coogee Bay Hotel took out one of the top honours of the night by being awarded the best overall metropolitan hotel of the year. Boasting seven bars, Sydney’s biggest beer garden, budget to boutique accommodation, conference and event facilities overlooking beautiful Coogee beach, an eighteen-hundred person live entertainment venue, two retail liquor outlets and a brassiere, the multi-award winning Coogee Bay Hotel offers everything you’d expect to find in a great Australian pub. The hotel’s owners have also shown great community spirit by donating more than $200,000 in cash, in-kind donations and sponsorships to groups such as the Coogee Lions Club, Sydney Children’s Hospital and Randwick Surf Rescue.

AHA National CEO Des Crowe paid tribute to the winners. “The Coogee Bay Hotel is an industry icon, and a worthy winner of this prestigious award. Offering outstanding facilities and a commendable dedication to its local community, the CBH is a great example of the central roles played by pubs in Australian society”.

Saffire-Freycinet Resort in Tasmania Saffire -Freycinet Resort in Tasmania was also the recipient of two prestigious awards in the Accommodation divisions; Best Deluxe Accommodation and Best Overall Hotel. Featuring luxury suites with views of Great Oyster Bay and the Hazards Mountains, Saffire is one of Australia’s most unique accommodation developments, and an icon of the Tasmanian tourism industry. The luxury extends beyond the hotel’s boundaries, with guests able to relax at Saffire’s own lounge at Hobart Airport while awaiting transfer.

Bevan Douglas, HOSTPLUS Director, presenting Saffire-Freycinet Resort the award for Overall Hotel of the Year

Rodger Powell, Managing Director of Tourism Accommodation Australia said that “Saffire has utilised its Tasmanian coastal surrounds to great effect in creating the ideal wilderness retreat destination. Its luxury suites, premium service and attention combine with a truly unique setting to form an iconic tourism experience and is a worth recipient of this industry honour.”

Johnnie Walker Hall of Fame This is an edited version of the induction speech given on the night by National AHA President Peter Hurley. Doug May and James Brindley from LION, congratulating the Coogee Bay Hotel on their award for Best Overall Hotel of the Year

Brothers Guy and Tony Matthews were inducted into the Australian Hotels

Association’s highest individual honour, the Johnnie Walker Hall of Fame. The Matthews brothers were selected for this honour for their dedicated involvement over a seventy-year period, spanning across three generations, including proprietorship of many of South Australia’s most famous hotels along with a history of innovation and industry leadership. The Mathews legacy to the hospitality industry commenced with Seymour and Doris Matthews during world war two. In 1942 Seymour Matthews took his family to Whyalla and commenced their involvement in the hotel industry. Tony was seven and Guy three years of age.

Peter Hurley, National AHA President, paying tribute to the Brothers, Guy and Tony Matthews

Matriarch Doris like many women of the time, was thrust into leadership roles because of the war, being the Licensee of many of the establishments to ensure compliance. In fact in the frontier town of Whyalla, Doris provided the catering for the launching of the first thirty-two ships produced in the fledgling Whyalla shipyards. At the Matthews peak they held some 36 licences or freeholds. These included the Bayview, Spencer and Eyre Hotels in Whyalla. The Spencer in Whyalla in fact was sold by the Matthews to a very young entrepreneurial former school teacher named Peter Hurley in 1978. Other great hotels included the Seacliff, Largs Pier, Buckingham Arms, the Feathers in Adelaide, the Hotel Victor, the Tasman in Port Lincoln and the Naracoorte Hotel. Overseeing these diverse holdings required young Tony and Guy to undertake fourteen-hundred kilometre round trips. The family also established a serious presence in South East South Australia when they purchased the Molony Brewery liquor distribution business including hotel freeholds

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Guy Matthews, Hall of Fame inductee, accepting the accolade

in Mount Gambier. This stable of hotels included such icons as the Jens, the Mount Gambier, the South Eastern and the Parks, a number of them being State and National AHA award winners. Seymour passed away in 1991 and Doris in March 2009 at age 97. Doris was inducted into the AHA South Australia Women in Hotels Hall of Fame. Seymour and Doris produced two sons, Tony and Guy and Tony and Guy subsequently added Brett, Lisa, Shaun, Scott, Ward and William to the expanding family register. All three adult generations are involved in the family enterprise with some expanding out in their own right. The fourth generation is no doubt already being coached or coaxed into a hotel career. Tony and Guy’s official involvement in the hotels commenced in the mid 1950s. It was at this stage Tony joined the business after serving his time in the Royal Navy National Service. Guy followed in 1956. Seymour was taking on some big ventures at this time, including the iconic Largs Pier Hotel where with the SA brewery, they built a Beer Garden Lounge seating 250 undercover and 200 outdoor, and by accident during the course of renovations happened to invent the first drive through liquor store, reputed to be the world’s first and in their time saw the Largs Pier become known as the Rock Capital of Australia being the original home of Jimmy Barnes, Cold Chisel and AC DC.

Some of their “innovations” included their battle to introduce counter meals into front bars in the early 1960s. Tony was called to task over this by the AHA and was fined ten pounds for his trouble. Not being swayed by this, Tony then instructed staff to set up the meal table just inside the dining room door for bar customers to collect their own meals to take back to the bar. Therefore sidestepping the technicality of ‘serving’ the meal in the bar! Seymour, Tony and Guy implemented the first smorgasbord in South Australia at the near city Buckingham Arms Hotel. What began as a serve yourself table for ten shillings per meal is still currently serving about fifteen-hundred covers a week.

The family has been represented for many years by brothers Tony and Guy. Tony has been a significant contributor to the wellbeing of the Industry through his long service to the Board of Sip and Save, South Australia’s industry liquor marketing group and Guy has and currently serves on the AHA South Australia State Council. Some of Seymour and Doris Matthews grandchildren also serve on the AHA State Council and various sub committees of the Industry. The extended family interests remain at the forefront of hotel innovation with three Matthews family related venues representing South Australia in categories here tonight. The Matthews family is so much more than this brief overview. Its commitment to training is reflected in their contributions in time, energy and resources to the TAFE and Regency Park training networks, and regional training. Their commitment to high standards whether provision of food and dining services, accommodation, packaged liquor sales, bar and gaming services, entertainment or tourism is part of their DNA. To use the words of Tony’s daughter Lisa Matthews, who by the way, runs the company’s central office and I.R. functions, the Matthews Family Hotel Group has evolved over seven decades and four generations thanks to foresight, luck and a hard grind. Such is the formula for all successful people and successful families.

Tony Matthews, Bob Rayner Corporate Relations Director from Diageo, Guy Matthews and AHA National President, Peter Hurley.


National AHA Board Luncheon S U N DAY 2 1 AU G U S T F O U R S E A S O N S H OT E L SY D N E Y

T

he AHA’s most anticipated event on the calendar, the National Board Luncheon, was held on Monday 31 October at the Royal Botanical Gardens, in Melbourne. The Luncheon was organised in conjunction with Treasury Wines Estates and was well attended by the National AHA Board and corporate partners and the hotel industry’s major players. Guests were entertained by a Phantom call of the Melbourne Cup by Melbourne radio personality Shawn Cosgrove, also infamous for his voice over work on the television show “Price is Right”. They also received some expert punting advice from former jockey Gary Willets. Peter Hurley addressed the 220 guests highlighting the AHA’s long and proud history, making note that an organisation such as the AHA would not survive without the generous contribution of all previously honoured national life members of which some were present at the luncheon, Darryl Washington, John Haddad, Peter Gromotka and Tom Payne. The President then continued by announcing three new life members; Peter Burnett, Ian Larkin and Mick Burns. Long one of the AHA’s most senior members, Peter Burnett brings 44 years of experience as a publican to the Association in his roles as Victorian President and National Senior Vice President.

Shawn Cosgrove Ian Larkin, Peter Burnett and Mick Burns – new AHA National Life Members, with National AHA President, Peter Hurley

For the past 31 years Peter, Jan and their family have run the award winning Lord of the Isles in Geelong, establishing a reputation for providing superior quality pub hospitality. In 1984 Peter became a Councillor and then a member of the State Executive of the Victorian AHA. Having served as State President since 1997, Peter is the longest serving Victorian President in the 128 year history of the Association. Peter has twice served as National President of the AHA. Between 2000 and 2002 he oversaw the implementation of the GST and led the AHA’s discussions with the Democrats to cut a deal which saw $115 million in alcohol excise refunded by the Federal Government. In his second term from 2006 to 2008, Peter stepped in at a time

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National AHA Board Luncheon

Colin Waller, National Secretary/ Treasurer with the 2011 Emirates Melbourne Cup

when the AHA needed strong leadership and delivered welcome stability and credibility to the Association nationally. Ian Larkin was born into hotel life. Learning the ropes as a child while his parents ran the successful Royal Hotel in Donald,

Ian moved at age sixteen to Melbourne and began a chef’s apprenticeship at the Matthew Flinders Hotel while training at the William Angliss Institute. Gaining international experiences for four years in Europe as a chef on a Rhine River cruise boat, Ian developed a different perspective for the family business. Returning to Australia, Ian and his wife Trish went on to own and operate a number of hotels in Ballarat including the Blue Bell Hotel, Red Lion Hotel, Larkin’s Bar & Grill and the Grand Hotel. More recently Ian has owned and operated Irish Murphy’s Ballarat for the past 9 years. His pubs have won a number of AHA awards at both state and national level. Ian is the Country Vice-President of the AHA Victoria. He is a member of the State Executive and has been a Councillor for the Ballarat North Division for many years. He is also a long-serving Victorian delegate to the AHA National Board. Michael John Burns first entered the hotel game in the mid-1980s when he took on a small rural hotel named the Daly River Pub. In the early 90s, Mick bought the historic ‘Victoria Hotel’ located in the Darwin CBD which had huge success and has since over the years developed and owned a numerous pubs, hotels and nightclubs in the Darwin CBD. Although Mick remains heavily involved in the hotel industry, his biggest passion is

crocodiles – he owns the largest Australian salt-water crocodile farm and has recently been developing a crocodile tourist attraction right in the heart of the Darwin CBD which boasts the largest display of Australian reptiles in the world. Mick’s involvement with the AHA Northern Territory Branch started when he became a Board member shortly after purchasing the Victoria Hotel. He became President of the Branch and a member of the AHA’s National Executive in 1999. In May this year, after 13 years at the helm, Mick stood down from the top job although he has remained on the AHA (NT) Board as SeniorVice President. Mick’s contribution to the AHA was acknowledged earlier in his tenure as President in May 2004 when he was awarded life membership of the Northern Territory Branch. It was Mick’s foresight that one strong voice was needed for the Territory’s hospitality industry that saw a transformation from a very small hotel based representative body to the strong Association which now represents all of industry including hotels, accommodation hotels, wayside inns, clubs and restaurants. The other highlight of the day, however, was certainly the presence of the Melbourne Cup itself – guests were invited to have their photo taken with the Cup, which most took up the opportunity.

National AHA Golf Day

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he AHA National Golf day, sponsored by Austar, was held on Wednesday 31 August 2011 at Hamilton Island during the AHA NSW Annual Conference. A total of 55 players attended the day representing NSW, QLD, VIC and ACT to play for the AHA National “State of Origin” Golf Trophy which was awarded to the Victorian Team in its first year. The Trophy was accepted by Peter Burnett, President of AHA VIC, and will reside in Victoria until next year’s event. Other results for the day are as follows; 1st Prize: Bob Porter & Curt Schatz from QLD - Score = 64.75 2nd Prize: John Ashley & Proko Athanasakos from VIC - Score = 65 3rd Prize: Helen & Rolly De With from NSW - Score = 66.75 Nearest the pin: John Ashley on the 14th hole Longest drive: Brett McGovern on the 18th hole


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NSW Branch Report

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Sally Fielke

he last year has been an extremely active one for the AHA (NSW) on many fronts, from policy and service delivery for members right though to media and special projects. The pivotal event of the year was the change of Government in NSW - after 16 years in the wilderness, the Liberal/ National coalition were unequivocally elected in a landslide victory. The AHA (NSW) has wasted no time in briefing new Ministers on all aspects of legislation that affect our members. We had been harried in our efforts for some time by a dying Labor Government crippled and ineffective in its last few years – witness the ill-conceived “Top 48” list cobbled together by a desperate Premier for example so we welcomed a dynamic new Government that is keen for change in NSW. However, AHA (NSW) has not hesitated in taking the Government on in relation to some issues affecting our members. The best example of this is the recent “Three Strikes” legislation. The Government initially rushed to announce a flawed Bill in June this year to meet their self-imposed “100 day” deadline. The original intent was to address ‘rogue’ operators and drive them out of the industry. While AHA (NSW) supports this intent, it cannot come at the expense of the vast majority of operators who are doing a great job. The law as it was would have stripped hoteliers of the common law right of “innocent until proven guilty” and seen a simple accusation of wrongdoing – such as supply alcohol to a minor - put a business on the brink. The use of alleged, unproven offences to score strikes ignored the fact that allegations can be incorrect and successfully challenged. A straw poll of eight of our Associate Member legal firms revealed that 97% of ‘permit

intoxication’ matters were successfully defended or withdrawn when taken to court. This statistic alone should cause Government some concern, however faced with a Bill that threatened to deny the opportunity to defend these incidents, industry too were rightly distressed. Needless to say, AHA (NSW) immediately took action and strong representations were made to various Ministers and the Premier pointing out the obvious flaws in the legislation. The result? A completely revised Bill that recently passed parliament – a major change being the replacement of “allegation” with a “conviction” before a strike is recorded against an hotel. The amendments are still tough but much fairer than what was originally drafted. It is possible to unscramble an egg! At all times members were kept appraised of developments as they occurred with many hoteliers playing a crucial role with advice and consultation and briefing their local MP’s. Obviously, consultation and representation of members is a vital role of our association – each week we send out an electronic member update to all members – outlining the latest industry developments. It includes everything from media and policy issues to information about upcoming events including legal and training seminars. This last year saw a massive revamp of the update – streamlining it into a sleek new format easily accessible for members. Members are also kept informed through Hotel News – a monthly publication which includes the latest news and views of the industry – from hotel renovations and redevelopments right through to media releases and events. AHA (NSW) also runs a continuous series of seminars on major issues

“A straw poll of eight of our Associate Member legal firms revealed that 97% of ‘permit intoxication’ matters were successfully defended or withdrawn when taken to court.”


AHA NSW | Level 15, Hudson House 131 Macquarie Street SYDNEY NSW 2000 Phone: (02) 9281 6922 | Email: enquiries@ahansw.com.au Industrial Relations enquiries: Joyce Broomhead | Phone: (02) 9281 6922 | Email: Joyce.Broomhead@ahansw.com.au

– such as changes to the law - to make sure members are informed and properly trained. We also have committees and working parties on events ranging from the Women in Tourism Scholarship to Hotels Have Hearts and the TAB. Some of our most successful new initiatives developed by members include the Great Country Pub Song Competition and the Good Pub Food Guide – both now in their second year. The Pub Song Competition sees dozens of entries from across NSW from people keen to write about their experiences at their “local” and perform at the Tamworth Country Music Festival. The Good Pub Food Guide – sponsored by the Sydney Morning Herald – was a best seller last year. The guide lists the best food in NSW hotels – from bangers and mash right through to fine dining with a range of categories including the best beer gardens, burger, chips, beer lists, pizzas and value-for-money pubs. The Guide will be published again in December. As part of our proactive media strategy, another project about to be launched is the regional advertising campaign which will focus on the good work hotels do in their communities across regional NSW. There are three parts to the campaign – cinema, print and radio advertising - set to start in thirteen key regional markets towards the end of 2011. This year also saw the publication of a special 12-page AHA (NSW) brochure containing photographs and comments from several of our leading publicans along with a range of fact sheets about the industry itself, the mandatory pre-commitment legislation, charity drives and examples of media spin. The brochure is targeted at politicians at all levels and has been very well received. Other yearly highlights included our very successful Women In Tourism Scholarship

which this year went to a very worthy recipient – Natasha Moss of the Mittagong Hotel. So impressed were the judges with the calibre of candidates that two extra, part scholarships were awarded on the night at Sydney’s prestigious Ivy. The 2011 AHA (NSW) Awards for Excellence were another highlight with more than 200 hotels vying for 35 major industry categories. This year’s event saw over 900 people in attendance with the Yamba Shores Tavern picking up Overall Country Hotel of the Year and the Australian Hotel and Brewery taking home Overall City Hotel of the Year. Our much cherished and valued, long term industry stalwart Peter Beaumont was also inducted into the Hall of Fame. AHA (NSW) has also been extremely active on the media front in the past 12 months defending members interests where necessary and promoting positive news stories where possible. Major media issues include anti-social behaviour in some parts of Sydney and the regions, the uprise of local council’s micromanaging licensed venues – and obviously at a national level the on-going battle with mandatory pre-commitment. Sally Fielke Chief Executive Officer AHA (NSW)

Article written by Sally Fielke prior to her departure as Chief Executive Officer of AHA (NSW) in Dec 2011. Paul Nicolaou has since commenced as the CEO in January 2012.

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VIC Branch Report

Brian Kearney

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010/11 was a year when Victoria’s pubs and hotels along with many other sectors of the Australian and Victorian retail and business community have had to meet the challenge of a significant decline in consumer confidence and a resultant reduction in discretionary spending. The benefits to Australia of the mining boom, a seeming escape from the full ravages of the Global Financial Crisis and continuing low levels of unemployment are significant. However the cumulative impact of global economic concerns, civilian unrest in many countries, stock market volatility and Federal Government political uncertainties have resulted in a climate in 2010/11 where many Australians are not confident about the future and their place in it. Significant Federal Government policies directed to commonly-shared community and business aspirations e.g. ensuring a sustainable environment, expanding Broadband accessibility, sharing the wealth of the mining boom and compassionately and effectively addressing concerns of illegal migrants etc. are increasingly seen by the community and business through a prism of mistrust, cynicism and disappointment. In the face of the challenges of this environment, it is pleasing to report that

most pubs and hotels in Victoria are meeting or exceeding 2009/10 performance levels. There is no doubt that customers are increasingly discerning in their demands; however Victoria’s pubs and hotels are rising to the occasion through quality and innovative beverage, food, accommodation, entertainment, gaming, wagering and hospitality offerings that are well-pitched to and appreciated by the market. There were three (3) elections of note in 2010/11: • Election of the minority Julia Gillard Federal Labor Government; • Election of the Ted Baillieu / Peter Ryan Coalition Victorian Government, with a majority in both the Legislative Assembly and the Legislative Council, and • Election of Peter Burnett for a further 2 year term as President – AHA (Vic) which will see Peter as the longest-serving AHA (Vic) President, exceeding the 14 years served by Jack Kellaway (1955 – 1969) Whilst we harbour misgivings regarding the policies of the Federal Gillard Labor Government, such is not the case with the Ted Baillieu / Peter Ryan Coalition Victorian Government. It is particularly pleasing that the Coalition liquor policy under the leadership of Minister Michael O’Brien is underpinned by a recognition of the personal responsibility of the drinker, particularly those that choose to drink to excess. For too long draconian regulatory interventions have been solely directed to the licensee, with minimal if any regard being had to the responsibility of those who cause damage to themselves and others through drunken and anti-social behaviour. The Coalition’s commitment to the implementation of a voluntary pre-

commitment scheme for poker machines in the face of the efforts of the Federal Government demanding a mandatory scheme reflects a proper understanding of the issue of problem gambling by the Victorian Government. The measured approach of both Premier Baillieu and Deputy Premier Ryan, whilst frustrating to the media, is valued and appreciated by Victoria’s licensed hospitality industry. The Coalition is focussing on delivery of election commitments as a first priority, with any new and emerging issues dealt with through having regard to the evidence-base, rather short-term political advantage.

Liquor – Giving effect to State Coalition Government Policy There is an increasing understanding in both Government and the community of the impact of packaged liquor on excessive consumption and the resultant consequences. With approximately 75% of liquor consumed in Victoria purchased through packaged liquor outlets, we have difficulty in comprehending the unrelenting focus on the on-premises environment by Government, the media and the police over recent years. The efficacy of such prioritisation within Police Command surely warrants re-assessment when it is apparent that drunken behaviour on the streets, on public transport, in non-licensed public settings and in domestic residences is of a significantly greater prevalence than that occurring in pubs and hotels. A recently commissioned performance audit by the Victorian Auditor General into “Effectiveness of Justice strategies in preventing and reducing alcohol-related harm” is welcomed by AHA (Vic).

“It is particularly pleasing that the Coalition liquor policy under the leadership of Minister Michael O’Brien is underpinned by a recognition of the personal responsibility of the drinker, particularly those that choose to drink to excess.”


AHA VIC | Level 1, 1 Little Collins Street Melbourne VIC 3000 Phone: (03) 8631 7922 | Email: k.oconnor@ahavic.com.au Industrial Relations enquiries: John Sweetman | Phone: (03) 8631 7907 | Email: j.sweetman@ahavic.com.au

Poker machines, wagering & keno in Victoria– Going Forward Two significant challenges continue to face Victorian hotels with poker machines: • the transition to the gaming venue owner/ operator model from 16 August 2012, and • the threat of the introduction of a national mandatory pre-commitment system by the Gillard Federal Government. With the auction of poker machine entitlements completed in May 2010, gaming venues are now very much focused on securing a seamless transition to the owner/ operator system from 16 August 2012. Priorities in this regard have included securing ownership of poker machines either by purchasing or replacing machines currently owned by Tabcorp or Tatts Pokies and preparing and implementing Business Plans to take venues successfully forward. It is pleasing that the Victorian Commission for Gambling Regulation (VCGR) and the Gambling Licence Review Team (GLR) are working closely with AHA (Vic) and gaming venues on the shared objective of a seamless 2012 transition. The Gillard/Wilkie Agreement of September 2010 that sees the Federal Government committed to the introduction of a national poker machine mandatory pre-commitment scheme is, in AHA (Vic)’s view, a misplaced proposal which will do very little to further address problem gambling; but rather, significantly inconvenience occasional players, if not totally dissuade them from playing. We support the Victorian tripartisan (Coalition Government, Labor Opposition, gaming industry) proposal for the introduction of a voluntary precommitment system – mandatory for all poker machines / voluntary use by the player. AHA (Vic) welcomed the decision of the Ted Baillieu / Peter Ryan Coalition Government

to award both the Victorian Wagering Licence and the Keno licence to Tabcorp. The introduction of a new Keno offer from April 2012 will provide an opportunity for pubs across Victoria to offer an exciting new Keno product to customers. Based on pub-based Keno turnover in NSW and Queensland, AHA (Vic) has high expectations that the new Keno will appeal to many pub customers.

2010/11 in Review 2010/11 was a complex and demanding year, issues requiring priority attention included: • Canvassing AHA (Vic)’s 2010 Election Agenda with both Labor and the Coalition in the lead-up to the November 2010 Election; • Building on the already effective working relationship with the successful Baillieu/ Ryan Coalition Government, particularly in respect of portfolios directly impacting on Victoria’s pubs and hotels; • Continuing input to Federal and State Government proposals to further address the consequences of the misuse of alcohol, particularly in regard to underage drinking, binge drinking and violent behaviour; • Responding to the Gillard Federal Government policies and announced intentions which have a high potential to negatively impact on the pub and hotel sector, including: • the Gillard/Wilkie agreement in regard to “gaming machine reform”; • further consideration of alcohol tax reform, and • the continuing consequences of the Labor Government’s “Back to the Future” workplace relations reform. • Initiation of the “Who Voted for a Licence to Punt” campaign in response to the Gillard Government’s announced intention to implement a mandatory pre-commitment

requirement on all gaming machines; • Continuing preparation for the post-2012 owner-operator gaming arrangements, including identifying and addressing key transition issues, and • Asserting AHA (Vic)’s standing as the pre-eminent industry association representing the interests of Victoria’s accommodation hotels through the launch of Tourism Accommodation Australia (Vic) – a division of AHA (Vic).

Conclusion and thanks We greatly valued and appreciated the support and active participation of our major partners during 2010/11 – Carlton & United Brewers, Treasury Wine Estates, Tabcorp, HOSTPLUS and Aon Risk Services. We also thank the many companies who support AHA (Vic) through their involvement as Corporate Partners and Associate Members. Such involvement reflects their commitment to join with us in ensuring a viable and successful hotel and pub sector. Many such members have been part of the AHA (Vic) family for many years. I must thank the Executive Committee under the leadership of our President Peter Burnett and the Council of AHA (Vic) for their guidance and support of the Administration during the past year. The Council of the Association is an excellent forum for discussion and decision-making where robust debate, diverse views and a passion by all for the pub and hotel industry can be harnessed to the advantage of our members. Finally my thanks to the staff for their considerable efforts in what has again been a challenging and rewarding year. Brian Kearney Chief Executive Officer Australian Hotels Association (Victoria)

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QLD Branch Report

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Justin O’Conner

ntroduction: The year 2011 will go down in the history books as a nondescript year where the economy was flat, politicians were unpopular, and beer and cigarette sales continued their steady, historical decline. But that’s not the real story. 2011 was in fact an important consolidation year for the Queensland hotel industry after two disastrous previous years involving the Global Financial Crisis, the weakest consumer sentiment in modern Australian history, and a large contraction is Australia’s tourism industry on the back of weak inbound and domestic tourists due to high fuel prices, and a very strong Australian dollar exchange rate. So, 2011 was a year in which hoteliers went back to basics, retained their key staff, responded to changed consumer demand and tastes, and continued to invest sagely and cautiously for the future. The floods: First, the bad news. In late December 2010 and early January 2011 the combination of the wettest spring on record and two large tropical cyclones brought torrential rain across much of Queensland. During this period, 107 separate communities in Queensland recorded their highest ever monthly rainfall. At one stage, an area larger than France and Germany combined was under water, and the volume of flooding water simply overwhelmed the river and drainage infrastructure. Thirty people drowned, nine are still missing believed drowned, more than 200,000 people were relocated, and the damage bill was conservatively estimated at $6 billion. Closer to home, more than 30 Queensland hotels were flooded, with the Grantham Hotel washed away and never to re-open, and hotels in Chinchilla and Condamine being flooded on multiple occasions. Now, the good news. During the flood crisis, hotels and their staff shone out of the gloom by helping

the community in its time of need. Around 20 hotels acted as official evacuation or emergency centres, and many more provided emergency accommodation for displaced people. A national fundraising campaign jointly coordinated by the AHA and the QHA raised more than $1 million, with the ALH Group donating a further $500,000 from its own funds to the Flood Disaster Relief Appeal. These funds were well used, and we thank all those who assisted in this fabulous fundraising effort. We also helped our fellow hoteliers who suffered flooding or damage by coordinating the donation and distribution of surplus hotel furniture, refrigeration, gaming machines, pool tables, crockery and linen, and all manner of other goods to help hotel businesses get back on their feet. In all, more than $200,000 worth of goods was donated by hoteliers for their fellow hoteliers, raising their morale and esteem at a difficult time. One good idea (from AHA President Peter Hurley) was the purchase and distribution of a number of high pressure water pumps by the Association to help flooded hotels in their clean up. One big lesson from the floods was to get the mud out of flooded buildings as soon as possible – once the mud sets, you’re buggered. Business regulation: As in other States, Queensland licensees have endured quite heavy regulatory intervention in recent years, culminating in a new liquor trading regime involving no general liquor sales prior to 10am, quite a bit of mandatory industry training, and the introduction of a State liquor tax in the form of annual liquor licence fees for hotels and like businesses. In 2011, government fees and charges continued to rise at a much higher rate than inflation as cash-hungry governments looked for new sources of funds with which to stimulate a comatose economy. In addition, a newly

“In 2011, government fees and charges continued to rise at a much higher rate than inflation as cash-hungry governments looked for new sources of funds with which to stimulate a comatose economy.”


QHA | Level 14, 270 Adelaide Street BRISBANE QLD 4000 Phone: (07) 3221 6999 | Email: reception@qha.org.au Industrial Relations enquiries: Joanna Minchinton | Phone: (07) 3221 6999 | Email: jminchinton@qha.org.au

“During the flood crisis, hotels and their staff shone out of the gloom by helping the community in its time of need. Around 20 hotels acted as official evacuation or emergency centres, and many more provided emergency accommodation for displaced people. A national fundraising campaign jointly coordinated by the AHA and the QHA raised more than $1 million.” regressive national industrial relations regime involving complex employment standards and reduced employment flexibility increased the cost of labour at a time of very low consumer spend and reduced hotel sector revenue. Clearly, and right across Australia, it’s time for the government jockey which rides the business horse to visit Jenny Craig. The good news is that Queensland enters a period of regulatory certainty over the next few years, with both sides of politics, and a majority in the community, happy that we’ve got the liquor regulation environment “about right”. Two noteworthy exceptions to this are: firstly, there currently exists a state-wide 3am lockout provision wherein, if a patron leaves a licensed venue for any reason after 3am, they are forbidden to return. While this is not a seminal hotel industry issue, this measure fails the evidence-based test and should be revisited. Secondly, the upper limit on gaming machines per hotel is about to be raised from 40 to 45, within an overall hotel sector cap number. This measure should stimulate hotel gaming businesses, and help to increase the capital base of hotel businesses. Country hotels: Sadly, 2011 continued the ongoing trend of a handful of country hotels closing their doors each year. Amongst

those Queensland pubs to close forever this year was Pat Ogden’s famous Globe Hotel at Barcaldine. Pat and his family had run the Globe for 41 continuous years, with six years at the Barcaldine’s Union Hotel before that, all the while a loyal QHA Member. Improved communications and transport, and increased business and compliance overheads, mean that bush hotels no longer compete on an even playing field. What we must continue to do is respect, support and encourage our bush publicans who are often the heart and soul of their local towns, and who epitomise the spirit of generosity for which our industry is renowned. Hotel Industry training: There’s quite a range of mandatory industry training these days, and the QHA is a major supplier of best-practice courses such as RSA, RSG and other gaming and liquor courses. In 2011 the Association joined with the local TAB operator, TattsBet, to develop and present a home-grown and formal TAB Operators Course, based out of the QHA’s very own TAB outlet built into the QHA Training Centre. This course was developed in response to industry demand, and we are proud to now be the sole supplier of TAB operator training to Queensland’s hotels,

licensed clubs, racecourses, and the TAB itself. Outstanding industry achievement: We’ve already mentioned Pat Ogden’s magnificent 47 year career as a publican in Barcaldine, and there are many more Pats out there in the local Queensland hotel industry. Brian Fitzgibbons, of the famous Queensland hotelier clan, was named QHA Hotelier of the Year in 2011 in recognition of his 45 years in hotels, and a career which saw Brian progress from washing cars in the pub carpark to running a large, multi-faceted family hotel business. Also noteworthy is the opening of the magnificent Eatons Hill Hotel & Function Centre on Brisbane’s northside. The Comiskey family has used all of its expertise to develop one of the largest hotels in the country, replete with cutting edge technology and logistics, and of a quality and scale that challenges all who went before. This grand new hotel underlines the inexorable trend in Queensland where country hotels are closing, and being ‘replaced’ by large, modern hotels in the coastal growth corridors as the population continues to drift to the coast. The future: In 2011, the Queensland hotel industry has a bright future. Accommodation hotels are profitable with high occupancy and yield, and trading hotels have weathered the bad times of 2008 to 2011 with their skills teams and core markets intact, ready for a return of consumer confidence. Happily, both Generations X and Y have been drawn to hotels as their natural place to recreate and socialise, thus introducing the next generations to the delights of a safe and enjoyable Queensland hotel experience. We’re proud of our industry, and extend a warm invitation to all readers to come up and visit us sometime. Justin O’Conner Chief Executive Officer QHA

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WA Branch Report

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n 2011, the Western Australian hospitality industry faced significant challenges that the AHA (WA) has been at the forefront of addressing.

Liquor Control Amendment Bill

Bradley Woods

The Liquor Control Amendment Bill 2010 came into effect in 2011 with positive changes for the hotel and hospitality sector. The AHA(WA) secured outcomes including: • Flexibility for approved managers to move between licensed premises without having to apply for approval; • Barring notices with the ability to ban person(s) for up to 1 year; • Juveniles aged 16 or 17 years with approval will be able to serve liquor ancillary to a meal on licensed premises; • Government commitment not to increase licence fees; and • Key commitments achieved by the AHA(WA) included: any proposal to introduce lockouts must undergo a regulatory impact assessment; no intention of introducing lockouts at midnight; consultation on any proposal to introduce lockouts; hotel and taverns will not be prohibited for operating in accordance with Extended Trading Permits.

Glassware Media interest in glassing assaults elevated calls for plastic glassware in licensed premises. The AHA(WA) supported an industry selfregulatory approach with the endorsement of the WA Government for venues to gradually introduce tempered and toughened glassware at their own pace.

Report on Alcohol The two-year long WA Parliament Education and Health Standing Committee Report on

Alcohol was delivered in 2011 and threatened the industry with 60 plus proposals designed to damage the hotel and hospitality sector including : • Raising the drinking age to 21; and • Introducing minimum penalties of $10,000 The AHA (WA) was able to secure a significant outcome after a long and comprehensive consultative process involving 11 ministers including the Premier. The Government finally tabled an appropriate response dismissing nearly all of the Report’s recommendations in October 2011.

Tourism Direct AHA(WA) action was responsible for the Western Australian Government’s significant injection of a $60 million increase in the tourism portfolio budget over the next four years. The AHA(WA) lobbied State Government publicly for a significant increase in events tourism, particularly developing and marketing iconic, WA home-grown events. The latest State Budget outlined some fantastic funding elements for the hospitality and tourism including: • Record funding to Tourism WA through a major increase in events; • $10 million per annum additional funding of events to drive tourism in regions; and • New funding allocated to develop the China market and direct aviation routes to China.

AHA(WA) Action to address staff shortages In July the AHA(WA) together with the WA Minister for Training and Workplace Development spearheaded a delegation of industry and government representatives to the United Kingdom and Ireland to promote Western Australia to potential workers. In 2011, submissions and strategies to address the WA labour and skills shortages

“Direct AHA(WA) action was responsible for the Western Australian Government’s significant injection of a $60 million increase in the tourism portfolio budget over the next four years.”


AHA WA | 38 Parliament Place WEST PERTH WA 6005 Phone: (08) 9321 7701 | Email: exec@ahawa.asn.au Industrial relations enquiries: Ron Balluci | Phone: (08) 9321 7701 | Email: em@ahawa.asn.au

were submitted to the Commonwealth Department of Immigration and Citizenship and WA Minister for Training and Workplace Development to assist hospitality businesses in accessing staff. The AHA(WA) promoted jobs and careers at the Skills West Expo 2011 attended by 25,000 prospective workers.

Through member contributions, the AHA donated $50,000 to the north-west of WA to assist in the rebuilding of the communities of the Pilbara, Gascoyne and Mid- West regions affected by cyclone activity and floods and $15,000 to support orphans of the Japan Tsunami and Earthquake.

• Drove the introduction of new barring notice legislation that provides licensees with the ability to have unruly patrons barred from their premises with the support of WA Police; • Drove changes to approved manager legislation that now provides greater flexibility in venues being able to employ staff across a range of premises; • Successfully represented and resolved unfair dismissals, unlawful terminations, adverse actions and Fairwork Ombudsman complaints resulting in successful outcomes for AHA(WA) members; and • Conducted performance management and termination of employment training for several accommodation hotel members.

CHOGM 2011 & WA Service with a Smile

Meetings and Working Groups

The AHA(WA) played a pivotal role in supporting logistics for accommodation for the 2011 Commonwealth Heads of Government Meeting (CHOGM). The AHA(WA) developed and launched an innovative and free customer service program incorporating a business recognition campaign and online customer service training. Over 7000 people undertook the AHA(WA)’s Service with a Smile, Customer Service program prior to the commencement of CHOGM. The number of smiles exhibited during CHOGM as a result = too many to count. The WA Service with a Smile online training will continue to be available to all WA hospitality and tourism businesses into the future. AHA(WA)’s direct action with Government also resulted in: • $4 million funding increase into the State Government’s skilled migration strategy; • Preservation of outdoor smoking areas; • Increased training places for chefs/cooks within the hospitality and tourism sector; and • Improved and flexible plot ratio bonuses for accommodation hotel developments.

In 2011 AHA(WA) hosted regular divisional meetings for hotel, restaurant and bar members across metropolitan and regional Western Australia. Accommodation Division General Managers and relevant guest speakers gathered every two months to discuss the latest issues affecting the accommodation industry. The AHA(WA)’s Workplace Relations consultancy group consisting of 28 human resources managers met every six weeks to discuss the latest employment and regulatory developments in the industry. Workshops and seminars were specifically tailored towards industry concerns, including the Drug Awareness Seminars, Fraud Awareness and Workplace Relations Workshops.

Service Achievements by the AHA(WA)

AHA(WA) Events

Disaster Relief Appeal

• Assisted members in implementing Modern Award annual wage increase and State transitional arrangements;

days held in Australia. • WA Hospitality Supplier Awards – 30 May 2011 Recognised outstanding suppliers, promotions and products provided to the West Australian hospitality industry. Overall Supplier of the Year went to Carlton United Brewers and the Hospitality Industry Achievement Award was presented to Lester Brett of Peacock’s Bedding. • AHA(WA) Hospitality Expo – 31 May & 1 June 2011 In its 13th year, WA’s largest and most comprehensive annual hospitality industry conference and expo came together under one roof for a two day extravaganza. The AHA(WA) Expo delivered the latest information, products and services to over 2500 attendees, with speakers including the WA Director of Liquor Licensing and the WA Police Commissioner, as well as many industry experts. • AHA Accommodation Hotel Industry Awards – 22 August 2011 As a showpiece event on Perth’s social calendar this event celebrated the outstanding levels of excellence and high standards upheld by the Western Australian Accommodation Industry. Over 500 guests experienced a night of style, grace and culinary brilliance at the Burswood Grand Ballroom as it was transformed with a 35 metre screen spanning across an entire wall. Guests were entertained by exciting and innovative illusionists Adam & Selina Murby, and the vocals of Soul Empire Duo. Bradley Woods Chief Executive Officer AHA (WA)

Communication to Members The AHA(WA) communicated regularly in 2011 with members and stakeholders through personal contact, e-mail alerts, member bulletins, new website features media releases and the AHA(WA)’s magazine Hospitality WA.

• AHA(WA) Schweppes Golf Classic – 1 March 2011 This sell-out event was attended by 220 golfers resulting in one of the largest corporate golf

WA Schweppes Golf Classic

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SA Branch Report

Liquor Licensing

Ian Horne

• A major State focus during the year was the introduction into State Parliament of potentially severe restrictions on all licensed premises and the granting of extraordinary powers to Police and the Office of Liquor & Gambling to close venues, impose on the spot conditions and remove licensee’s rights of review. The final Bill that passed Parliament reflected a more balanced outcome as advocated by AHA|SA. And while it is a sensible solution for late night venues, more importantly, it contains and corrals broad based Police and OLGC ambitions for additional and extensive powers that could be used against all licensed venues at any time of the day with limited remedy available to Licensees. The amendments to achieve the outcome as pursued by the Association were supported by the Liberals, Greens, Dignity for the Disabled and Independents. • The Association’s recommendations for personal infringements notices were also part of the final Bill that will empower police to issue personal infringement notices of $160 to individuals who behave badly. • Codes of Practice are part of the discussions being held with regulators and industry. Much of the draft Codes reflect agreed positions with the Association and will go a long way to setting common sense standards for the promotion and conduct of all licenced premises.

Gaming • The Independent Gambling Authority conducted a bi-annual review of Codes of Practice relating to all forms of gambling including gaming. The AHA|SA made extensive submissions and recommendations to ensure a balance is maintained in the regulation and compliance of the industry. The recommendations of that review are expected in 2012.

Smoking • South Australian hotels responded in a pro-active manner to the banning of all indoor smoking from November 2007. The Association believes that

many millions of dollars were invested in extensive and appealing outdoor facilities to cater for non-smokers and smokers. • The Association was disappointed that a push by health interests to further restrict outdoor areas with aims for a total ban by January 2016 was on the Minister of Health’s wish list. • The Association was able to persuade the Minister that a trial of voluntary smoke free areas was of greater use than imposing more regulation and red tape on business. The trial will be monitored through 2012.

Tourism • South Australia works particularly hard to maintain its domestic, national and international share of tourists. • The Association has direct input into this strategy through the CEO of AHA|SA who has been a Director of the South Australian Tourism Commission for a number of years. • The Association works closely with the Tourism Minister to ensure accommodation and food/beverage/hospitality issues are always at the forefront.

CONSULTATION AND REPRESENTATION WITH AHA MEMBERS • The Association conducts 18 members’ meetings throughout the year. 16 of these are in regional and remote locations to ensure all members have an opportunity to be briefed on issues affecting their business. • The AHA|SA Council meets monthly to discuss current issues and to develop Association policy. • Various sub committees are activated from time to time to address specific challenges. The Industrial Relations Committee made up of various operators and HR managers meets fortnightly to oversee the IR/HR challenges of the Industry. • The Association provides an extensive advocacy service in the areas of Human Resource/IR Management, Equal Opportunities Legislation, OH & S, Gaming and Liquor Licensing administration and Local Government. • The Association meets regularly with various Government agencies to ensure


AHA|SA House 4th Floor, 60 Hindmarsh Square Adelaide SA 5000 Phone: (08) 8232 4525 | Email: acaretti@ahasa.asn.au Industrial Relations enquiries: Tina Fahy | Phone: (08) 8100 2422 | Email: tfahy@ahasa.asn.au

that members’ interests are understood and that members’ rights are preserved. • These agencies include Consumer & Business Services, SA Police, Local Government Association and individual Councils, Health and Drug Agencies, Treasury, Safework SA to name a few. • The AHA also provides a highly competent representative service before various tribunals.

INFORMATION & NETWORKING • Members received over 110 electronic member updates during the year on a range of topics and issues that impact on their business in South Australia. • In addition, the highly acclaimed Hotel SA magazine with a distribution of over 2,000 was published bi-monthly. • The Association also conducted the Hotel and Restaurant Expo at the Adelaide Showgrounds in June that attracted several thousand trade visitors. • The bi-annual Women in Hotels conference was a great success with around 100 industry women coming together to share, compare and learn from each other’s knowledge and experience. Key note speakers were of a high calibre. • The AHA|SA’s Awards of Excellence were held in July at the Adelaide Entertainment Centre. They were attended by over 800 operators, sponsors and staff.

venues. The purpose is to support and empower venue management and staff in managing patrons and identifying and supporting those that may be identified as having a potential gambling problem. • Gaming Care is funded entirely by hotel subscriptions to the Independent Gaming Corporation – the central monitoring system owned by AHA|SA and Club SA. • Gaming Care (and Clubs SA’s Club Safe) are unique strategies in Australia and deliver practical support and solutions for front line staff.

HGT – Hospitality Group Training • The Industry’s apprentice/trainee and employment company has completed its 28th year of operation. Started by AHA|SA in November 1983 it currently employs over 200 apprentice cooks and F & B trainees who are ‘hosted’ by employers for the term of their training contract. • The HGT recently bought licensed premises adjacent to the AHA|SA to develop as a skills centre for all trades and occupations in hospitality. Ian Horne Chief Executive Officer Australian Hotels Association (SA)

PROJECTS Gaming Care • The Association operates our early intervention agency knows as Gaming Care. Gaming Care employs 6 field officers who visit and engage with management and staff of SA based hotel gaming

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TAS Branch Report

T

Steve Old

he Tasmanian Hospitality Association (THA) which incorporates the Tasmanian Branch of the Australian Hotels Association (AHA) has once again had a very busy but productive year representing the Hospitality Industry in Tasmania. The THA has quickly become one of the most influential and powerful lobby groups in the state with membership numbers continuing to grow year on year. Corporate relations and support are at an all time high and the Associations media profile is one of the strongest in the state. The THA takes a very proactive approach when looking at where the industry in the state needs to be well into the future. They not only focus on ‘current’ issues but remain committed to looking at where the industry needs to be in ‘the future’ for members to remain viable and prosperous and to allow members to make decisions on their businesses that reflect this vision for the future. As part of this approach the Association and State Government in Tasmania will soon sign a Partnership Agreement (PA). This will recognise the important role that the THA fulfils in representing the interests of enterprises in the Hospitality Industry. It will also recognise the THA as the peak body for the Hospitality Industry in the state. It is agreed in the PA that by acting together in partnership more can be achieved for the growth and development of the industry. The THA has had a successful year collaborating with the Tasmanian Government. After several years of lobbying

the Association has achieved significant success to see the first dedicated Hospitality Minister for Australia appointed. This relationship was cemented in January though successful lobbying for funding to implement a Workforce Development Program (WDP). The THA was able to employ a dedicated Hospitality Workforce Development Officer (HWDO) to undertake workforce planning with 60 member businesses across Tasmania. The program involved business operators being interviewed by the HWDO, who would then compile the information into a data base and provide the business with a comprehensive report on the challenges, constraints and opportunities they are facing. Participants were encouraged to consider future activities to improve their operations which were summarised in a Workforce Action Plan (WAP) as part of their individual reports. The WAP’s gathered information on employee qualifications and asked respondents to nominate employees that could potentially participate in training. The reports then made training recommendations and provided contact information to facilitate access to providers in an effort to encourage operators to consider formal training options for staff to improve skill levels, job satisfaction and decrease staff turnover rates. The WDP not only allowed participants a rare opportunity to review their business and identify new opportunities, the program gathered valuable data on Tasmanian Hospitality Industry businesses and their workforces. This data was used to seek

“As part of this approach the Association and State Government in Tasmania will soon sign a Partnership Agreement (PA). This will recognise the important role that the THA fulfils in representing the interests of enterprises in the Hospitality Industry. It will also recognise the THA as the peak body for the Hospitality Industry in the state.”


THA 25/93 Salamanca Place Hobart TAS 7000 Phone: (03) 6224 7033 | Email: sue@australianhotels.asn.au Industrial Relations enquiries: Ben Walker | Phone: (03) 6224 7033 | Email: ben@australianhotels.asn.au

additional funding to implement a range of initiatives based on the challenges, opportunities and constraints identified through the WDP. Those initiatives included offering free workshops (funded by State Government) to industry on marketing and promotion strategies. These workshops attracted a strong attendance around the State and received positive feedback from all who attended. Several other projects were commenced and are due for completion mid 2012. Some of these projects include the development of a Workforce Retention Initiative which will aim to arrest attrition of Hospitality workers to other industries in a bid to address skills shortages being experienced. Other activities that have been undertaken at the THA include working with Skills Tasmania to seek funding to develop a skills plan for the industry in response to the identified skills shortage in the region. The Skills Plan combined with the Workforce Retention Initiative will be important projects for the Tasmanian Government, the THA and the broader Tasmanian Hospitality Industry and will form an important focus for the Strategic Plan to be commenced in 2012. The THA prides itself on offering its members timely and accurate Industrial Relations (IR) advice and support. The THA receives numerous calls and emails each year from members regarding IR issues reflecting the importance of this service provided free of charge to our THA members. The need for accurate, prompt IR information in response to their queries about this ever-changing, complex area is a highly regarded part of their membership. As part of the proactive approach taken by the THA’s IR Manager, meetings have been held with the Minister for Workplace Relations as well as the Minister for Hospitality to lobby regarding IR-related issues affecting THA members. The Fair Work Ombudsman’s State Director and the THA’s IR Manager meet monthly on hospitality related IR issues including providing industry input on possible audit campaigns. Each week the THA emails members a newsletter which includes two or more

hospitality relevant IR updates. Members receive comprehensive bulletins which detail well in advance members’ public holiday obligations. In addition, where necessary, the THA sends member bulletins on urgent issues to help keep members abreast of relevant IR developments. Recently the THA ran regional marketing workshops which included a well received IR session outlining some key tips on how to avoid IR hassles. The THA also has an IR reference group that is used to seek industry feedback on current issues of concern. The THA has actively lobbied and made submissions to the State Government on a variety of IR issues affecting members’ interests including: • Reduction of the qualifying period for Long Service Leave which saw, as a specific consequence of THA lobbying, the original proposal revised to include a phase-in to ease this initiative’s burden on employers; • Made submissions to the Anzac Day Act Review. which saw easing of proposed Anzac Day gaming restrictions that would have excessively harmed some THA members interests; and • Active member of an OHS Committee which lobbies government on OHS issues on behalf of Tasmania’s major employers. The THA appears at liquor license hearings where appropriate to represent the industry and members e.g. the THA provided advice, support and formal advocacy to members involved in an ultimately successful campaign against an off-license application in regional Tasmania that would have had a devastating effect on the local community. The THA also provides general advice to members on licensing matters e.g. how to obtain a new licence and/or vary a current one. As part of this the THA has built a productive working relationship with the Liquor and Gaming Branch of Treasury which helps the THA quickly obtain information on licensing matters including new applications of interest. After achieving a renewal rate of over 95% at the end of 2010 the association had an 11% increase in membership during 2011. The corporate partnership between the THA and Aurora Energy has been a valuable tool

in recruiting. With smaller member venues now able to take advantage of contestability in the Energy market, many THA members have become eligible for a discount on their energy costs. Add this to the already popular corporate discounts and THA members are now saving more on their running costs than ever before. Once again THA events during the year have proven to be more popular than ever with events such as the Launceston Cup Cocktail Function, THA Awards for Excellence Dinner, THA Race Day, TAA breakfasts and luncheons all proving to be a hit and well attended. These are great opportunities for members to mingle with fellow venue operators and to be kept up to date with what’s happening in the industry with many events being well attended by state and local politicians from all sides. The association is a leading member of the six Liquor Accords currently operating in the state. The THA took an active role in establishing the Hobart Liquor Accord during 2011 after attempts by the government during 2009 were unsuccessful. We were able to gather the support of our member and non-member venues in the city and had the accord up and running within a four month period. All accords meet quarterly around the state with the objective of addressing alcohol related issues within their boundaries. The THA will remain actively involved in all Accords around the state into the future and provide advice and assistance as required for the benefit of the industry and its members. Steve Old General Manager Tasmanian Hospitality Association

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NT Branch Report

2

Amy Williamson

011 was certainly a hectic year for the AHA (NT) and our members with a bundle of legislative reforms being introduced and implemented by Government, all with significant impacts on the Territory’s hospitality industry. Stage 2 of the Northern Territory Government’s smoking reforms commenced on 2 January, which had the effect of banning smoking in all outdoor public eating and drinking areas with the exception of licensed premises that can designate a maximum of 50% of their outdoor space as an ‘Outdoor Smoking Areas.’ The AHA (NT) continued to assist members to comply with these changes throughout the year. The reforms, particularly the absurdity of smokers not being able to take their own meals into a smoking area to consume, has had a significant impact on business. On the other hand, it has also been satisfying to see that many have taken the opportunity to renovate and refresh their

cost of running the system is also likely to be passed on by the manufacturers which could be anywhere from 7 to 18 cents per container. In an already tightening market, such a price increase is likely to have a considerable impact on spending at our hospitality venues. Also this year, we saw amendments to the Liquor Act (NT) that represents the biggest changes to liquor licensing laws the industry has seen. July marked the introduction of the Government’s Enough is Enough Alcohol Reforms right throughout the Territory. These reforms represent the first of their kind in Australia (if not the world). The Enough is Enough Alcohol Reforms have a number of facets aimed at targeting and banning problem drinkers from purchasing alcohol and mandating rehabilitation and treatment. From a practical perspective, the Northern Territory Government has issued and installed ID scanning systems (which are linked to a database called the ‘Banned Drinker Register’)

“The AHA (NT) joined the Responsible Recycling Campaign lead by the Australian Food and Grocery Council earlier in the year to launch a public awareness campaign in the Northern Territory opposing the Government’s proposed Container Deposit legislation (CDL).” venues and are now reaping the benefits of their refurbishment. The AHA (NT) joined the Responsible Recycling Campaign lead by the Australian Food and Grocery Council earlier in the year to launch a public awareness campaign in the Northern Territory opposing the Government’s proposed Container Deposit legislation (CDL). Unfortunately, CDL was on the wish list of an Independent Member who holds the balance of power for the current Labor Government and the legislation was passed in Parliament and will now commence on 3 January 2012. Not only will manufacturers be on-charging the 10 cent deposit in the wholesale price but the

into all takeaway alcohol venues across the Northern Territory. All licensees must scan a customer’s photo identification prior to selling alcohol products. The ID scanning equipment will identify whether or not the customer is on the Banned Drinker Register. Where someone is on the Banned Drinker Register then a licensee is not permitted to sell alcohol to that person. There are a number of ways one can find him or herself on the Banned Drinker Register including being charged or convicted with an alcohol related offence, high-range drink driving offence, supplying alcohol to someone on the Banned Drinker Register and frequent attendance in protective custody. Banning


NT 20/24 Cavenagh Street Darwin NT 0800 Phone: (08) 8981 3650 | Email: admin@ahant.com.au

notices can be issued by Police, a newly established alcohol tribunal or a Court. Surprisingly to date, there has been nothing in place by way of clinical intervention or other assistance for those persons who regularly front in protective custody for alcohol misuse. The Government, under these reforms, has promised just this, by the implementation of administrative and court ordered voluntary and mandatory treatment orders for those problem drinkers. After nearly 6 months since commencement, there are now 1800 people on the Banned Drinker Register. It is clear from history that alcohol supply restrictions do not work on their own so it is refreshing that the Government is starting to take a more multifaceted approach to tackling alcohol-related harm in the Territory. On the flip side, the industry also witnessed amendments to the Liquor Act (NT) which have provided greater procedural fairness to licensees by: • overhauling the enforcement provisions and penalties with a greater focus on achieving compliance rather than convictions; • removal of the double-jeopardy provisions whereby licensees traditionally had to face penalties from both the Licensing Commission and the Court; and removal of the presumption of intoxication when facing an allegation of serving an intoxicated patron. In November, over 40 members from Darwin, Palmerston and Katherine attended a luncheon hosted by the Minister for Racing, Gaming and Licensing, Hon. Delia Lawrie at the Dowling’s Parap Tavern. This event provided members with a fantastic opportunity to hear directly from the Minister on the year’s numerous reforms and current Government policy as well as raise any concerns with her. Skill and staff shortages still prove to be a huge problem for our members and we

continually lobby Government to invest more heavily in attracting and retaining staff to the Territory’s hospitality industry. In September, I was asked to be part of the Northern Territory delegation to Ireland for a ‘Working Abroad Expo’ and “Working in the NT” seminars. During my time in Ireland, I was able to talk face to face with hundreds of Irish people looking to move to Australia to work. Hopefully the industry will have some success stories of vacant positions being filled by some of the Expo and seminars attendees. In July accommodation division members had the opportunity to sit down over lunch with Tourism Accommodation Australia’s (TAA) Managing Director, Rodger Powell. It was the first time Rodger had been to Darwin since commencing his role with TAA and provided a great introduction for AHA (NT) members to both meet and listen to what Rodger was tackling on a national level. Skill shortages and uncertainty surrounding the impending carbon tax were common concerns amongst all those that attended this lunch. In order to keep our members abreast of the many legislative changes, the AHA (NT) over the course of the year provided free member workshops throughout the Territory on a number of areas including Paid Parental Leave, Unfair Dismissals and Terminations and Work Health and Safety. It was also great to see members supporting our social and networking events, with record numbers attending the AHA (NT) OAMPS Trade Show and AHA (NT) Aristocrat Awards for Excellence, as well as a very strong showing at the AHA (NT)’s harbottle onpremise Gold Plate Awards. A highlight of the year was the strong performance of AHA (NT) members at the National AHA Awards for Excellence, which generated a lot of local media attention and put the spotlight back on the great industry we have here in the Territory and the wonderful

people that make it happen. It was the most successful National Awards to date for the Territory with 4 winners overall including Dee Mulligan, General Manager of Shenannigans who was the joint winner of the Industry Rising Star Award. It would be remiss of me not to make mention of Mick Burns, who stood down as President in May this year after 13 years at the helm. Mick has worked incredibly hard for the Association over the years and it is due, in no small part, to Mick and his dedication and enthusiasm for the hospitality industry that our Association is as strong as it is today. Mick is the AHA (NT)’s longest serving President and was recognised accordingly at our Awards for Excellence Gala Dinner in June. Each of the AHA (NT)’s Chief Executive Officers who had worked with Mick over the years made the journey up to Darwin from across Australia for the dinner including Sally Fielke, Greg Weller, Nick Healy and Des Crowe. Mick’s huge contribution in his 13 years as AHA (NT)’s President and member of the National AHA Board Executive was recognised in November this year in Melbourne when he was awarded National Life Membership. On behalf of AHA (NT) members, I congratulate Mick on this fantastic achievement. Lastly, on behalf of the AHA (NT) Board, staff and members a big thank you to our major sponsors, Coca-Cola Amatil, Australian Liquor Marketers, Lion, Carlton United Brewers and HOSPLUS, for their support and invaluable assistance throughout the year and to all of our many other sponsors and associate members for your continued involvement with our Association. I look forward to continuing to represent our members in 2012. Amy Williamson Chief Executive Officer AHA (NT)

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ACT Branch Report

2

011 has been a busy year with new layers of regulation posing new challenges to the way the hospitality industry in the ACT operates. The ACT is entering an election year it will be important for political parties and the current Government to recognise that business owners are quite practical and operate their businesses because they are passionate about their industry and the products and service they deliver. It’s that simple. They support policies that benefit their business and the community whilst removing red tape, not adding to it. The following is brief of activities the AHA ACT has been engaged in locally on behalf of industry:

Liquor Fee Review Gwyn Rees

In 2011 the AHA made a submission to the ACT Liquor Fee Review. The submission covered aspects of the liquor fee determination and was distributed to members at the time. In particular, the submission called for no further increase in the quantum of fees, that both the $100,000 purchase threshold and concessions for under 80 occupancy venues be removed. The AHA attended both Liquor Fee Round Table meetings and made comment on a number of harsh regulations. The AHA argued for an extension to the Responsible Service of Alcohol 1 December deadline and was successful in lobbying this for industry. The AHA was also provided opportunity to present an alternative liquor fee model. The AHA then met with Attorney-General Simon Corbell on two subsequent occasions. The ACT Government recently released a new liquor fee structure which places an unreasonable weight on larger venues (>350),

whilst off setting costs in the Off licence sector and on micro operators. A nightclub operator’s licence on a like for like basis, are amongst the most expensive in Australia. The AHA gained significant media exposure after challenging the introduced Liquor License Fees arguing that once again they had failed to find a balance in the structure. The AHA also exposed a move by regulators to introduce a new clause allowing them an unreasonable amount of discretion to determine a licence type and enabling them to levy a higher fee. As a result of meetings and discussions held with the Opposition and the Greens by the AHA, the fees have been referred to the Justice Committee of the Legislative Assembly for a review. This is an outcome that the AHA pushed for and it is a good result. It means that industry will have the opportunity to question the government on the new fee structure; inform committee members on how fees impact our memberships and provides opportunity to forward alternatives. The committee will be reporting in March 2012 and the inquiry will involve public hearings where AHA members can have the opportunity to give evidence.

Food Safety Review In September the AHA made an extensive submission to the food safety review. The AHA made a number of recommendations and supported that information should be made available to the community however the community, should not be misled into believing that ACT food businesses are or are becoming unsafe. The food safety discussion paper provided no evidence of a systemic problem

“The AHA ACT branch is working closely with its national and state counterparts to remove regulatory loopholes that give short-term accommodation providers significant and unfair advantage in the tourism marketplace.”


ACT Level 4, 24 Brisbane Avenue Barton ACT 2600 Phone: (02) 6273 6633 | Email: rees@actaha.org.au

in the ACT. The AHA submitted that if any of the proposed measures were undertaken they must demonstrate the benefits that flow on to the community. The AHA had asked for the community and industry to be provided with the reported cases of food-borne illnesses in the ACT, evidence of an increase in food-borne illness and evidence of an increase in non-compliance. ACT Health has yet to provide this information and has advanced the review process without first responding to these crucial elements in the discussion. The Food Amendment Bill 2011 was put forward in the Assembly 8 December however, is not yet law. A number of recommendations in the Bill however are positive for industry and with no cost impact. A ‘Scores on Doors’ scheme remains up for debate in 2012 and the branch will remain engaged in this process.

Short-Term Furnished Accommodation The AHA ACT branch is working closely with its national and state counterparts to remove regulatory loopholes that give short-term accommodation providers significant and unfair advantage in the tourism marketplace. The rising prevalence of furnished apartments in residential buildings in the ACT being rented out as tourist accommodation is a growing concern. The AHA met with the Opposition and held discussions regarding concerns. The AHA has had cause to address a number of operators with who are operating illegitimately and without appropriate licencing. The AHA has also made representations to AAA Tourism about operators claiming Star Ratings. The AHAs efforts have resulted in questioning regarding these operators in the ACT Assembly and will remain in the debate locally to ensure a level playing field for members. Nationally the AHA made a submission to the Australian Building Codes Board.

National Binge Drinking Strategy Project In October 2011, the AHA and the Youth Coalition of the ACT formed a partnership to apply for federal funding available under the National Binge Drinking Strategy. The funding will support the development, marketing and promotion of a proposed Champions ACT campaign. Binge drinking and alcohol-related incidents (including violence and antisocial behaviour) involving young people have been highlighted at a number of the ‘entertainment precincts’ within the ACT, primarily around licensed venues. These issues are increasingly prominent in local media sources; and have been the topic of several research projects specifically looking at young people and alcohol within the ACT. The proposed strategy by the AHA will provide industry with a positive counter message anchored in its long-standing mantra of personal responsibility. The Champions ACT Project will specifically target young people aged 18 – 24 at these entertainment precincts, and will address the problem of binge-drinking by focusing on prevention, harm minimisation, community safety principles and behaviour change. It will do this through strategies such as providing online resources (www. championsact.com.au, to be developed) and print materials to licensed venues in local precincts that have a focus on behavioural change through peer support. A Community Level Initiative Working Group has been established by the Australian National Preventive Health Agency to assess the applications following an initial compliance screening process. An announcement on projects which are successful in securing funding under this measure is due early 2012. Gwyn Rees General Manager AHA ACT

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Gaming

A

John Whelan

fter a turbulent and uncertain 18 months in hotel gaming, it appears sense has finally prevailed and the Government will not be implementing Andrew Wilkie’s mandatory precommitment. As a key Independent with the power to determine whether Julia Gillard or Tony Abbott formed Government Wilkie, with counsel from fellow anti gambling parliamentarian Senator Nick Xenophon, was able to dictate the terms of his support to both leaders. The end result was an agreement signed with Julia Gillard committing the entire hotel industry to a range of unproven restrictions, including the introduction of mandatory pre-commitment by 2014. Ignoring advice from International Gaming Technology (IGT) the world’s largest poker machine manufacturer that the cost to implement his proposal will be greater than $3 billion, Mr Wilkie insisted on mandatory pre-commitment, an element of his agreement he claimed was ‘carved in stone’ with the Prime Minister. In response, hotels, along with our industry colleagues from the Clubs, Casinos and Manufacturers had no choice but to campaign strongly against these Wilkie reforms - in electorates and communities that would be hardest hit by these unproven measures. The industry’s concerted and co-ordinated campaign focused on the fact that Wilkie’s pre-commitment system simply won’t work because problem gamblers would still be able to: 1. Gamble on poker machines and set a loss limit as high as they like 2. Gamble without restriction on racing, sport or online 3. Problem Gamblers will be the first to sign up for a gambling card

Victoria, radio and TV commercials featuring local football coaches, newspaper ads, freeway signage, posters & coasters displayed in venues and millions of newsletters dropped to voters in key electorates. In anyone’s language the campaign was successful. From the outset it was clear that finally the Commonwealth politicians were beginning to listen to industry, our staff and the thousands of community groups we support – rather than an Independent from Tasmania. Finally, on 21 January this year the Australian Prime Minister held a press conference to announce she was breaking her agreement with Mr Wilkie and would not be legislating the introduction of mandatory pre-commitment. I know all in the hotel industry sincerely hope we now have the certainty needed to run our businesses – and we’ll continue to strongly support proven gambling harm minimisation measures that will see problem gambling reduced even further.

John Whelan Responsible Gaming Director Australian Hotels Association

In addition, the campaign highlighted the fact Wilkie’s proposal will hurt the community as millions of dollars that are currently pumped into local sporting and community groups by pubs and clubs will be under serious threat. The campaign included community rallies held throughout NSW, Queensland and

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AHA continues to monitor smoking laws

T

he recent trend of local and state governments implementing further restrictions on outdoor areas is something the industry is paying close attention to. The absence of conclusive and proven evidence that passive smoking in outdoor areas is more harmful than other outdoor environmental factors, such as exhaust fumes from automobiles on streets in front of alfresco areas, suggests that this is just another example of unnecessary bureaucracy.

New South Wales and Victoria that a 10m radius ban on smoking in council owned outdoor areas could lead to approximately 24% and 18% reductions in customer numbers respectively. Compounding this with; projected reductions in average customer spend, increased venue maintenance, unfair advantage to those with privately owned outdoor areas and redundant capital investment paints a grim picture of ill advised policy making.

Local council bodies in particular, are implementing complete smoking bans on areas such as council owned footpaths, which has a raft of unforeseen consequences which risk pose unintended health and safety risks for patrons.

We see this as yet another example of the disturbing trend of Government at all levels implementing restrictions and bans rather than working with industry to develop sensible solutions. Hoteliers understand business, understand their customers and are in the best position to create environments and areas which cater to all customers, whether they are smokers or non-smokers.

The incidence of smokers who are excluded from venues and pushed out onto the street raises issues of safety; nuisance and butt litter, not to mention extending, yet again, the area which we as responsible operators are forced to monitor and keep clean. In addition to the social impacts, research conducted by Deloitte on behalf of the AHA in 2010 demonstrates the extent to which these regulations could harm our industry. For example, the finding in

Any changes to the way in which smoking restrictions are placed upon hospitality venues must use a careful and considered approach involving consultation with industry on the likely impact on businesses. The AHA state and territory branches will continue to monitor developments in this area within State and Local Governments in the interests of hoteliers across Australia.

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Cultural change W H AT C A N YO U R V E N U E D O TO M A K E A D I F F E R E N C E ?

M

Trish Worth

“DrinkWise Australia has adopted a long term approach to bring about generational change.”

ost Australians enjoy their favorite alcohol beverage in moderation. However, many in our community drink to excess or drink too young, and we have a culture that accepts (and sometimes even celebrates) that. Drinking alcohol involves balancing the pleasures of socialising and enjoyment with food with the health and social risks. Getting the balance right is everyone’s responsibility. And the Australian Hotels Association (AHA) through its membership of DrinkWise Australia and presence of AHA President, Peter Hurley, on the DrinkWise Board, is helping to drive a healthy & safe drinking culture in Australia. Education is at the heart of the DrinkWise Australia activities. Changing our drinking culture, so that consuming alcohol too young or to excess is considered undesirable, involves greater community awareness about the issues associated with alcohol misuse. Through the voluntary financial support of alcohol producers and distributors, DrinkWise Australia has adopted a long term approach to bring about generational change. We do this through the development of national information and educational campaigns and practical resources that support the community about moderation alcohol consumption. In 2011 DrinkWise Australia launched ‘Get the Facts’, a campaign that provides Australians with evidence based information to help them make informed decisions on their approach to drinking. A major achievement in the ‘Get the Facts’ campaign was the introduction of the key messages on alcohol labels. The core message encourages consumers to ‘Get the Facts’ from the DrinkWise website (www.drinkwise.org.au), which provides evidence based information on alcohol to help people make informed choices about their drinking.

This core message can be used alone on labels or in tandem with three other messages: • Kids and Alcohol Don’t Mix • Is Your Drinking Harming Yourself or Others? • It is Safest Not to Drink While Pregnant (an alternative to text is provided via a pictogram) The label messages are being supported by a retail point-of-sale campaign, with educational material available to consumers in outlets where alcohol is purchased. An advertising campaign supporting the initiative commenced in October 2011 and will run until the end of January 2012. It is important to recognise that consumer information messages on product labels is just one part of the on-going community awareness and education campaigns that DrinkWise Australia delivers. We accept that label messages alone will not change consumer behavior and are likely to have more impact when coupled with retail point of sale brochures, a pointer to our website that has up-to-date evidence based factsheets, and continued support through our ongoing educational efforts. DrinkWise Australia is encouraged by the positive response to the labeling initiative. We will monitor its rollout and conduct regular community attitude evaluations to assess its impact. We encourage members of the Australian Hotels Association to become actively involved. Venues can play a vital role in promoting a safer and healthier drinking culture. ‘Get the Facts’ factsheets and A4 posters are readily available from the DrinkWise website or by contacting the DrinkWise office. www.drinkwise.org.au or phone 02 61624132 for further information.

Hon. Trish Worth Chair DrinkWise Australia

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T 1300 305 600 E sales@customersatm.com.au W www.customersatm.com.au


AML regulation in hotels W H AT YO U N E E D TO K N OW

A

Anthony Seyfort

ll hotels with gaming machines are caught, to some extent, by Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/ CTF) regime. The regime arises from federal legislation administered by a federal regulator known as “AUSTRAC”. Each licensed entity that operates gaming machines must “enrol” (register) with AUSTRAC, even if it only operates a small venue that is exempt from most of the AML/ CTF operational requirements (explained below). Enrolment can be done on-line through AUSTRAC’s website at http:// www.austrac.gov.au/register_your_business. html . Enrolment has been compulsory since 1 November 2011, and any entity that had voluntarily enrolled before that date must re-enrol. Whether the regime requires more of you than just enrolment depends on how many gaming machines are operated by your corporate group. If a licensee and its related companies together have 15 or fewer gaming machines (exempt groups), most of the regime described below does not apply. All that is required of the licensee is that suspicious matters must be reported (but there is no obligation to be trained in such detection or reporting). Exempt groups do not need to lodge compliance reports with AUSTRAC. The AHA will continue to seek to have the 15 machine threshold for exemption lifted, and to lighten the regulatory burden on those not exempted.

For hotels that are not part of an exempt group, the AML/CTF regime requires that the enrolled entity: • Have an “AML/CTF Program” • Appoint an “AML/CTF Compliance Officer” • Provide some AML/CTF training to staff • Report suspicious matters to AUSTRAC. In practice, AML/CTF law requires: • customer identification on the paying out of winnings and credits over $10,000 • reporting suspicions of money laundering or terrorism financing • not dealing with persons who are using the proceeds of crime • monitoring your customers to be alert to these above issues. The AHA National Office and state/ territory branches have given guidance on how to meet your AML/CTF obligations in the most efficient manner. Updated guidance will be issued to members over 2012 through your AHA state/territory branch.

Anthony Seyfort AHA Regulatory Adviser

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LIBERTY GAMING Matthew Hamilton 0418 675 178

ALBuRY Kim Braslin 0459 146 346

NEWCASTLE Trevor Crow 0408 966 299

NoRThERN NSW Murray Kirshaw 0419 460 527

SouThERN NSW Darcy Nelson 0439 038 724

CENTRAL WEST NSW Mark Baumer 0419 218 135


Workforce Development and the Hotel Industry

other industries and for employees to have their choice of the hotel industry satisfied through feeling valued by their employer through secure and rewarding jobs that offer coherent career paths and competitive salaries. Employers need to look beyond traditional workforce issues and consider how they can develop attractive, productive, secure and rewarding workplaces.

The Aim of the AHA Strategy is:

John Sweetman AM

I

n 2008, the Australian Hotels Association (AHA), in consultation with industry, developed a “Workforce Development Strategy – Attracting and Keeping Good People in the Tourism and Hospitality Industry”. A copy of this Strategic Plan can be found on the AHA National website at www.aha.org.au Continuing demographic and economic challenges mean Australian business are confronted with continuing skill and labour shortages. The AHA Workforce Development Strategy was developed to provide an overarching framework to address the workforce challenges confronting the hotel sector and the broader tourism and hospitality industry. It was designed as a document to spread the message that collective, concerted action will be required to overcome these shortages. We must continually plan for the future if we are to ensure that labour and skill shortages do not derail the projected growth in the industry and our requirements to improve the overall business performance. The industry challenge is greater than finding sufficient people to meet a growing market. An increasingly demanding customer is expect higher quality product and service levels. The aim of the AHA through workforce development is to ensure that quality staff will choose to work in the hotel industry over

People working across tourism and hospitality will be appropriately skilled and able, through the application of their expertise, to contribute to the growth and development of a sustainable, productive and profitable tourism and hospitality industry.

The Goals of the AHA Strategy include: GOAL 1 There are enough people to do the work required, to the standard required, to consistently deliver a world-class visitor experience. GOAL 2 The people who work in the tourism and hospitality industry have appropriate skills and the personal attributes to deliver a quality experience. There are education and training systems in place to recognise and deliver the skills and knowledge required to resource the tourism and hospitality industry. GOAL 3 People with experience and expertise are retained within the tourism and hospitality sector because they have opportunities to grow and build satisfying careers. GOAL 4 Businesses in the tourism and hospitality sector have the right information, management systems and processes in place to maximise the contribution of their people. GOAL 5 The tourism and hospitality industry has the structures and mechanisms in place to address its future workforce and skill needs on an ongoing basis. This AHA Strategic Plan was provided to Service Skills Australia and through consultation with the Service Skills Australia

Tourism and Hospitality Industry Advisory Board (on which the AHA has two positions). Service Skills Australia funded further extensive industry consultation and developed the Tourism and Hospitality Workforce Development Strategy which has been adopted by the tourism and hospitality industry as “an important step in continuing to address the skills and labour shortages in the tourism and hospitality industry. The document represents a commitment from industry to work together. It is a way for industry to articulate their vision for workforce development”. “The Workforce Development Strategy focuses on four key priorities: • The creation of a highly skilled workforce. • Access to quality employment. • Shaping the future through better workforce planning. • Expanding the traditional workforce”. A copy of the Service Skills Australia Tourism and Hospitality Workforce Development Strategy can also be found on the AHA National website at www.aha.org.au. Workforce development focuses on all aspects of a business’ workforce, including: the recruitment of employees with the right skills, experience and attitude. Remuneration, developing an individuals’ skills and potential through industry recognised training and development and career progression opportunities. In a highly competitive labour market, hoteliers need to focus on these issues if they are to be successful in attracting and keeping good people. An ageing workforce and the migration of young regional people to major cities continues to be an issue and a continuing workforce challenge for our industry. The AHA continues to work to address the workforce challenges for our industry and continued consultation and member information provision will continue into the future.

John Sweetman AM Workplace Relations Director Australian Hotels Association

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Employer Broker Program for the Hotel Industry

T

he AHA National Office was successful in securing a small grant from the Department of Education, Employment and Workplace Relations (DEEWR) for the piloting of an Employer Broker program for the hospitality industry and the AHA is grateful to the Federal Government for this opportunity. AHA’s commitment to the Employer Broker role had been motivated by feedback received from Hotel (Pub) and Accommodation members on the limitations of the existing Jobs Services Australia (JSA) system, and the labour market in general, to meet their recruitment needs. The focus of the project was on assisting members to meet their recruitment needs through creative employment and training partnerships, in part been driven by raising hotel awareness of the realities of the current labour market conditions, and their engagement in approaches to prepare job seekers. AHA (Vic) took a significant role in co-ordinating and targeting the efforts of JSA and other employment service providers to match the needs of job seekers with the labour vacancy requirements of AHA Members. To develop the brokerage model the following project elements were required; • Key stakeholders having a good understanding of the local labour market; • A commitment to the initiative from AHA, AHA members, JSAs, and training organisations; • The involvement of AHA (Vic) being committed to achieving outcomes and having the initiative replicated across the industry; showcasing the project to others and helping building relationships between stakeholders; • Stakeholders, in particular AHA members being consulted at all stages—this includes being consulted about their labour and skill needs, the content of training courses, any work experience component and their general employability needs; • Establishing a strong business case for JSAs—so they can see there are genuine ongoing employment opportunities for their clients; • Ensuring the right job seekers are selected—careful screening is the key, with a focus on the right attitude and basic employability skills as indicated by AHA members.

The design of the employer broker model, and the operational framework underpinning involved extensive discussion with the Victorian hotel industry, and representatives from AHA and DEEWR. The model was been designed to encompass a range of issues that needed to be addressed, including; • The extent of the immediate employment needs of Hotels; • The need to recruit acceptable good basic customer service skills; • The need to access support for training or introducing more flexible working arrangements; • Overcoming difficulties in attracting the right and committed people with the appropriate skills and the time taken to train/retrain recruits in the required skills; • Recruitment issues which are impacted by external agencies not presenting people appropriate to identified industry needs; • A need to better engage with AHA Members and promote the opportunities in the industry; • A need to change ‘old-school’ industry ways and showcase flexible arrangements; • A need to address both recruitment and retention issues by reviewing procedures for transition from benefits to employment; • Opportunities to promote the industry through quality communication; • The provision of pre-employment support for potential employees; It was agreed that the operational framework needed to comprise the key elements outlined below. Identifying industry entry points – Processes needed to be established to understand the skills needed in the regions and to identify vacancies and the competencies required by jobseekers. The AHA (Vic) took on the role to: • consult with the Hotels to identify genuine ongoing employment opportunities for disadvantaged ` people; • demonstrate how the AHA can grow the JSA’s share of vacancies and job placements in the hospitality industry; • enhance how the industry can use the provider of employment services to assist with meeting their recruitment needs and improving recruitment strategies;


• work in partnership with members at a local level to support them to understand their business and recruitment requirements; • identify and select potential employers and consult with them to; o confirm job vacancies, job locations and job structure; o develop a profile of the minimum skills needed for the job; and o identify the employer needs with a focus on the entry-level employment opportunities.

• Hospitality Customer Service Skills • Personal Development Skills • Basic work experience/sampling within the industry sector • Work preparation/industry orientation; • On-the-job skills development, mentoring and training; • Access to recognition of prior learning; • Accredited education and training (linked to work experience);

Customised Screening Processes – All participants in the project must be educated so to improve the match between job-seekers and job vacancies through a defined process aimed at; • identifying the type of job seeker who would be suitable for industry placement; and • identifying pre-employment training and support to ensure jobseekers are appropriately prepared to enter the industry, with skills that maximise sustainable employment outcomes

Placement Options – The placement of a job-seeker in a confirmed vacancy was determined through the job-seekers screening process. Potential job-seekers will fall into the following categories – • unsuitable • those they may be suitable but need some pre-employment assistance to ensure they are appropriately prepared to enter the industry • those who may be ready for direct employment • those who may be suitable to enter into a traineeship/apprenticeship

The screening process included gap analysis relevant to each participant’s industry entry point and to identify customised preemployment skills training, mentoring, counselling and other support required by the job seeker to ensure that they make an easy transition into hospitality employment.

Supported Transition to Work – The project identified the need to focus on intensive support to encourage job-seekers to overcome the barriers they face when initially placed in work. This required greater attention to the quality of the initial job placement with a focus on building hotel capability – through orientation/induction/settling/ training processes and providing in-work follow-up support to help ensure a smooth transition to work in the immediate period after job placement. Support for retention, up-skilling and progression - Closer working relationships were developed between employment service providers and hotels to improve an understanding of the skills and qualities employers are seeking, and to encourage employers to take action to improve retention and help their employees’ progress via training, mentoring and access to flexible working opportunities.

Customised Employment Pathways – This involves designing and delivering targeted work-preparation assistance matched to the identified employment opportunities and based on the outcomes of the screening process. Pre-employment training and support has involved preparing job-seekers for the challenges they will face in the job and giving them a clear picture of what it will be like working in the industry - to ensure that participants are job ready. Packages of training and work experience that have been specifically tailored to meet hotel needs were examined in collaboration with employers, GTCs and training providers to provide a menu of support measures (programs and short courses to make participants more readily employable and provide the required certification to work in certain areas within the industry) that can be customised to individual participant needs, identified through the screening process. These programs focus on; • Work Related/Employability Skills

Retention Strategies – service providers need to work with hotels to raise their awareness of the benefits of employing a diverse workforce. A major impediment to this is the general level of understanding among hotels of the work culture of disadvantaged job seekers and of the range of factors that can mitigate against direct assimilation into the workforce.

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Employer Broker Program for the Hotel Industry

On-Going Training and Skill Development – improving skills are essential to achieving sustainable employment. The challenge that most low-skilled employees face is that the people with lowest skills are least likely to be trained by employers. Employers will need to be supported and encouraged to provide a combination of formal and non-formal training to vulnerable new labour market entrants in the Industry.

• increasing the workforce participation of job seekers on income support or registered with a JSA provider; • developing innovative recruitment, employment and retention strategies; • establishing strong business relationships between the industry sector and JSAs

Difficulties finding clients to fill vacancies for Apprenticeships – JSAs have found it extremely difficult to find suitable candidates that meet the entry level requirements for traineeships and apprenticeships. The range of issues that need to be addressed include: o the ability for young people to access and negotiate support from JSA agencies; o enhancing education levels which are too low to access Apprenticeships; o poor self-esteem and low levels of confidence in their ability to cope with education, training or work environments; o little or no understanding of employers’ expectations; and o personal circumstances, which inhibit their capacity to function socially o Flexibility to work weekends, split shifts, public holidays and nights is an element of any training arrangement

AHA has utilised the pilot in Victoria to develop and demonstrate best practice applicability through a sustainable employment model that encourages cooperation between participating AHA Members; Registered Training Organisations (RTOs); JSA and other employment related providers. It is clear that a future Collaborative Employment Model will rely upon the combined commitment of: • Hotels: being the heart of the success of the program and they need to be able to identify the jobs vacancies and employ the suitable job seekers. The model needs to provide opportunities for hoteliers to improve their capacity to recruit, induct and retain long-term unemployed or otherwise disadvantaged job seekers. • Employment Related Service Providers: JSA providers need to commit to work with Hotels to confirm their vacancies and identify suitable job-seekers. This will be achieved through a customised screening process aimed to identify barriers to employment and ensure that disadvantaged job-seekers are job ready, can compete effectively in the hotel labour market and can move into and remain in work in the hospitality area. They need to provide both general preemployment support and support their transition to employment. • AHA State Branches: Will be asked to support workplace strategies to ensure the industry is adequately flexible to support disadvantaged job-seekers in their workforce. This includes providing support for specific upskilling measures and mentoring targeted to hospitality industry jobs through commitment, job design and other adjustments in employment arrangements in order to facilitate increased participation in the workforce.

Transport Issues – A major obstacle to job seekers gaining or being able to access identified job vacancies on an ongoing basis is the lack of a current drivers licence. This is particularly the case in rural or regional areas. The need for Employer Mentoring – there is a need to improve the capacity of hotels to recruit, induct and retain long-term unemployed or otherwise disadvantaged job seekers. A major impediment to this is the general level of understanding among hotels of the work culture of these job seekers and of the range of factors that can mitigate against direct assimilation into the workforce. The AHA remains committed to the process of developing a relationship between hoteliers, JSA’, training organisations and other stakeholders for further develop these relationships and especially for regional areas where the difficulties in finding and recruiting suitable hotel employees continues to be of significant concern. A priority of AHA has been on establishing and refining an operational model of best practice that can be replicated throughout Australia by the AHA State Branches, JSA Providers and other labour market intermediaries focussing on;

John Sweetman AM Workplace Relations Director Australian Hotels Associations


Workforce Innovation Project THE CREATING MORE PRODUCTIVE SERVICE ENTERPRISES PROJECT

I

ncreasing workforce productivity is one of the keys to success in any business, in any industry. But in a labour intensive, servicedriven hotel business where wages and salaries are often amongst the largest operating costs, it is even more critical to maximise efficiency. Productivity is too often associated with job losses and cost cutting, especially in the media, and it is really about creating value, working smarter, adapting to changes and technologies and taking advantage of opportunities to grow the business. The AHA received funding from the Department of Education, Employment and Workplace Relations (DEEWR) under the Workforce Innovation Program (WIP) to undertake the Creating More Productive Services Enterprises project. The project aimed to develop, trial and evaluate measures to improve productivity in the hotel and accommodation sector by trialling new arrangements and developing productivity improvement tools as a precursor to wider industry acceptance. The project included: • Developing a workforce productivity measurement tool for the hotel and accommodation sector; • Undertaking training and workforce development analysis in hotel and accommodation sites and formulating training and workforce interventions to increase the productivity of these sites; • Establishing processes to measure the effect of interventions on the productivity of these sites; and • Developing, formulating and evaluating productivity improvement strategies and tools for the hotel and accommodation sector. Given the diverse nature of the hotel industry and the difficulty in devising a homogenous measure for productivity across different business models, the project focussed on the factors and workplace practices that can directly influence productivity enhancements in Hotel and Accommodation enterprises and on developing industry-specific tools that can assist in the process. For the purpose of the project, Hotel and Accommodation enterprises were categorised into four distinct types; 1. Hotels (comprising the Larger/Luxury Hotels) 2. Resorts 3. Pubs with Accommodation 4. Pubs without Accommodation

There is considerable difference in the views between these different organisation types on how productivity and productivity measures can be developed and applied. While there are definitely steps being taken to create better workplace environments that can enhance customer satisfaction it is clear that there is some way to go before a general approach can be seen operating effectively across the whole sector. The project identified five complementary and reinforcing drivers of productivity: 1. Investing in people and skills (training) 2. Building leadership capability 3. Creating productive workplace cultures 4. Encouraging innovation and the use of technology 5. Organisational and workplace design. The project is now developing a Productivity Measurement Tool that can be used by hotels to assess the value of any investment they make in these areas to improve workplace productivity. The distinctions between large and small hotels and between independent and chain hotels require a customised approach to each sector to provide data that is quantifiable, linked to productivity measurements and linked to organisational and employee goals. There are significant differences in the sophistication of existing employee engagement strategies in the hotel industry, and also in the capacity of hotels to engage. A small pub-style hotel is not able to commit the same resources to staff training as an international accommodation chain, for example. The development of this tool will provide all hotels with the ability to measure the outcomes of productivity-based investments and help members to develop more productive workplaces over time. Jim Symes Workforce Innovation Consultant Australian Hotels Association

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Work Health and Safety Harmonisation

Trevor Evans

P

rogression of Model Work Health and Safety (WHS) Laws across Australia has seen a number of states and territories adopting the model legislation. However, it appears that the commencement of the National harmonisation target of 1 January 2012 will not be met by all states. This is due to either a delay in the legislative program in certain states, a desire to implement an appropriate and consistent transition period for the whole implementation of the Harmonised legislation across all jurisdictions (the preferred position of AHA) or continuing difficulties with the content of the Model Harmonisation Legislation, and progress through the respective Parliaments. The Australian Hotels Association supports the intent of the harmonisation process of Work Health and Safety Laws across Australia. The Commonwealth, NSW, Queensland, and ACT have passed legislation for commencement from 1st January 2012. While it is expected Tasmania and the Northern Territory may pass, Model Work Health and Safety Legislation in their respective jurisdictions during 2011, for a January 2012 commencement, this is not assured. Delays

in South Australia and Victoria suggest a potential mid 2012 or later start for those states. Western Australia remains opposed to many aspects of the model legislation and is likely not to lodge legislation into Parliament until sometime during 2012. All jurisdictions, except Queensland, have made or are likely to make some changes to the model laws, including the Regulations, to reflect local conditions but none of those will impede the harmonisation intent. Consequently, harmonisation for all States and the Commonwealth will not occur from the 1st January 2012, either in terms of the commencement date or the same content of the WHS Act and Regulations. As well as the model Work Health and Safety Act, subordinate legislation including the Regulation and eleven first stage Codes of Practice have been developed by Safe Work Australia for adoption. There are 15 more Codes of Practice currently out for public comment, with 6 identified as critical, and likely to be part of the Model National WHS Act, Regulations and 11 priority codes already approved to commence from 1st January 2012. The impact for Hoteliers across all states and territories from the introduction of this legislation will be mixed. That’s due to the differing Work, Health and Safety Laws generally operating as “Occupational Health, Welfare and Safety (OHS) Legislation that are currently operating in each of the nine (9) jurisdictions. Standards are similar but there is a variance between the more traditional “Occupational Health and Safety” systems and contemporary models. The new laws will be regarded as best practice and all jurisdictions will have to adapt accordingly, some more than others. Although there are many changes in terms of concepts, terminology and ways to meet statutory obligations, the fact is, if a business is currently compliant with state or territory Work Health and Safety legislation (OHS) then there is every likelihood it will meet the major Duty of Care provisions under the new model laws. The Regulations and Codes of Practice provide more detail on compliance than currently applies, that the Hospitality Sector will need to make some changes. However, there is overarching commonality

between the old and the new – for instance, eliminating or controlling hazards in the workplace, maintaining safe systems of work, managing health and safety risks. These general duties remain the same in principal. A significant change in the National Model Legislation is that whether you employ one employee or 1000 employees, there are no exemptions due to the size of the business, in applying the obligations of the Act and subsequent applicable Regulations and Codes of Practice, in particular relating to Health and Safety Representatives, Consultation, Compliance/Penalties. Each jurisdiction’s regulator will also operate by using comparable enforcement methodology to ensure consistency. They’ll continue to carry out workplace based inspections as they do now to monitor compliance and primarily use tools such as improvement notices, prohibition notices and infringement notices to manage work health and safety breaches. The ‘upside’ to this substantial increase is that historically it has been very rare for a Hotel to be prosecuted for breaching Health and Safety legislation in Australia. The industry is generally low risk and prosecutions of this type are only commenced in circumstances of serious injury or death, of which there are few in the Hotel industry. Usually, any lack of compliance is dealt with by regulatory authorities by means of notices e.g. improvement notices, prohibition notices etc., that may include some minor levies or fines. There will be transitional arrangements put in place to ensure a crossover from current discrete state and territory legislation to the new model laws. This will ensure that businesses have time to be informed of the requirements of the new Legislations as it applies in their particular State/Territory and the nature of their particular Business/ Industry sector and the variations, if any, from their current obligations/practices. In addition it will allow regulatory authorities some degree of legal flexibility in the process and to work with and inform business. Most of these arrangements are administrative in nature. One of the concerns about the new legislation has been the increase in penalties


for offences committed under the model laws. There will be a three (3) tier system in place with categories based upon the level of culpability and degree of risk/harm. At present, there is a substantial variance in set penalties throughout the states and territories. In harmonising these provisions, Safe Work Australia has, in the worst case scenario, increased the penalty threshold tenfold. Some key concepts and impacts of the new model laws relate to the change of roles and responsibilities and terminology to apply across all jurisdictions, are as follows: PCBU: The new term for an Employer is Person Conducting a Business or Undertaking. The obligations under the Act have moved away from the traditional relationships of employers and employees, and instead have broadened the coverage to encompass Persons Conducting a Business or Undertaking (PCBU). A PCBU will include employers but will also extend to persons or businesses who influence one or more elements that go to the performance of work. A PCBU can be a corporation, partnership, contractor, self employed person, franchisee, unincorporated association etc. A Hotel will fall within this category. Workers: The term worker (previously Employee) also will have a broader role under the new system if the person carries out work in any capacity for a PCBU and must take reasonable care for their own and others health and safety, comply with reasonable instructions and co-operate with policies and procedures. A worker includes an employee, contractor, sub-contractor, employee of a labour hire company, outworker, apprentice or trainee, work experience student and a volunteer. • The impact on our industry for the PCBU will be around their: Primary Duty of Care: A PCBU has a primary duty of care to ensure the health and safety of workers, and for all workers engaged by the PCBU or whose activities are influenced and directed by the PCBU, as far as is reasonably practicable. • The responsibility of the PCBU to meet its Duty of Care is qualified by :

Reasonably Practicable: This legal test means that which is, or was at a particular time reasonably able to be done to ensure health and safety. Duty holders must satisfy the duties as far as they are reasonably able to, taking into account all relevant factors e.g. the likelihood of the hazard or risk occurring, the degree of harm that might result from the hazard or risk, what the person knows about the hazard or risk, the availability and suitability of ways to eliminate or minimise the risk. The cost of eliminating or minimising the risk is a factor that can also be taken into account. • Duty of Officers: A new and positive obligation has been introduced for officers of a PCBU which requires that they exercise due diligence at all times. An ‘officer’ is someone who makes or participates in decisions that affect the whole or substantial part of the business, or its financial standing. Hotel owners, licensees, General/Hotel managers and chief financial officers would generally fall within the officer category. If they are responsible for only implementing those decisions, they are not considered an Officer. • Due Diligence: An officer is essentially required to ensure PCBU compliance with the model laws including identifying, eliminating or mitigating hazards and risks in the workplace, allocating appropriate resources to this task and having work health and safety processes in place to meet all those legislative obligations. An officer is legally liable if the PCBU fails to meet its compliance obligations. An additional expansion of the roles responsible for Duties of Care is that of - “Other Persons” at the Workplace. Although they have limited control, they must take reasonable care for their own health and safety when at a place of work. “Others” include persons at the workplace or other PCBU’s, such as visitors, customers, clients, passersby, relatives and associates of workers and trespassers.

Consultation: Consultation with workers is a legislative requirement currently operating in most jurisdictions. Under the new model work health and safety laws, PCBU obligations are expanded to include consultation with upstream entities e.g. suppliers, and other PCBUs at a workplace. Representation: Representation for workers is now enhanced as part of the consultation process. Health and Safety Representatives (HSRs) are eligible for appointment in the workplace regardless of the number of employees at that site and can be appointed to multiple workgroups. The appointment of an HSR is only compulsory if worker requested, as are work health and safety committees. Training for HSRs has been extended to five days, at PCBU expense. Right of Entry: The model act provides entry rights consistent with the Fair Work Act 2009 (Commonwealth). Permit holders, usually union representatives, can enter a workplace without prior notification if they suspect a breach of the work health and safety act may affect the safety of workers. However the general Notice provisions as prescribed in the Model Act is at least 24 Hours Notice, with information about the request to enter the premises. The new suite of compliance measures won’t be pain-free for all, but realistically, the Duty of Care obligations as currently in place in all jurisdictions, will see not much change at the coalface for hoteliers as a result of the introduction of the model laws. To re-iterate, if you are compliant now there is every likelihood you will be compliant with some adaption as applicable to the nature of your business and current jurisdictional OHS obligations after the new laws take effect. Trevor Evans Manager - Industrial Relations & Human Resources Australian Hotels Association

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Disability Employment

Nicholas Wilson

FWO & AHA working together to assist hoteliers The Fair Work Ombudsman and leading employer organisations such as the Australian Hotels Association (AHA) are working together to ensure employers have access to the information and resources they need to understand and comply with workplace relations laws. Under our Shared Industry Assistance Project grant program, the AHA produced user-friendly, industry-specific resources to assist hoteliers with the transition to Modern Awards, including an information booklet, seminars, teleconferences and an Online video. Some of these resources continue to be available on the AHA website. A number of hotel industry employers have participated in the Fair Work Ombudsman’s National Employer Program and gained free expert advice about how they can improve and strengthen their workplace practices and policies. We have now also launched a National Franchise Program to assist franchisors in all industries to increase their franchisees’ understanding of workplace laws. An Employer Obligations Guide, which can form part of a franchises’ business operations manual, has been produced as part of the Program and can be accessed on our website. A section of our website – www.fairwork.gov.au/hospitality contains information specifically tailored for the hospitality industry operators, including detailed information on the main Modern Award covering hotels and bars, the Hospitality Industry (General) Award 2010. The Fair Work Ombudsman’s strong relationship with the AHA helps to inform all our efforts to promote compliance within the hotel industry. We meet regularly with the AHA to gain important employer perspectives, discuss Award interpretation, formulate communication campaigns and share ideas about how best to assist employers. The ultimate result of the collaboration between the Fair Work Ombudsman and peak bodies such as the AHA is a wealth of information in the public domain to assist employees and employers alike understand their respective rights and obligations. Any employer or worker in the hotel industry seeking assistance should contact the AHA, visit our website or call the Fair Work Infoline.

Ken Baker

Disability Employment Despite significant jobs growth in Australia over recent decades and the tight labour market, the employment rate of people with disability remains low. Like other Australians, most of the 18% of Australians who have a disability want to work, but many don’t get the opportunity and others struggle to overcome the low expectations that society has of them. The good news for AHA members is that people with disability are a great potential source of employees. Some people with disability need support to work. Disability Employment Services provide a free placement and support services to people with disability seeking employment in the mainstream labour market. AHA members should consider utilising the services of these specialist organisations which are able to offer advice, incentives and other types of assistance to employers. Employer surveys repeatedly confirm that workers with disability are reliable and loyal employees. Employers using Disability Employment Services also express high levels of satisfaction with their services. As well as employing people with disability, AHA members should consider purchasing from an Australian Disability Enterprise (ADE). There are over 600 ADEs employing over 20,000 people with disability. Many ADEs are involved in the production and distribution of some of the country’s most iconic goods. Most Australians would have recently purchased a good or a service produced, packaged or distributed by an ADE, often without realising it. Purchasing from an ADE makes good business sense as well as supporting the employment of people who would otherwise be denied the dignity, mateship and financial rewards of work. For information on how to find an ADE relevant to your needs: www.australiandisabilityenterprises.com.au For information on Disability Employment Services: http://jobsearch.gov.au/provider/ProviderLocation. aspx?ProviderType=DES& Ken Baker Chief Executive National Disability Services

Nicholas Wilson Fair Work Ombudsman

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Building the hospitality workforce

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Sean Mahoney

ne of the enduring issues for the Industry is the on-going issue of sourcing, training and retaining staff. Of course AHA members are well versed in this. There are a few more areas that may be of interest to members which may assist them to find suitable staff, and equally, may provide opportunities for members to expand their Corporate Social Responsibility (CSR). The Australian Government has had a range of programmes which its funds which may interface with Industry needs. The Government develops programmes involving Indigenous Australians, disabled people and it also funds Aid programmes off shore. Indigenous Australians are faced with many barriers to find employment. Various programmes are available around the country and include apprenticeships, support through Job Services Australia network and local community groups. Indeed some infrastructure projects around the country have an emphasis on guaranteeing employment for Indigenous people, and this assists both employers and jobseekers. AHA members around the country already assist local projects in their communities through sponsorship and a commitments to employing Indigenous people. Another group of people in the community that need assistance is those who are disabled. Many people need assistance to regain work and disabled workers are a tremendous source of skilled labour, and are often employees who remain loyal and committed to employers. Again assistance for employer and employee is available. The Government also is heavily involved in capacity building internationally. The Government funds various Aid projects around the globe. One project targeting the development of skills in the hospitality sector has been occurring in Timor Leste for the last 3 years, providing Australian qualifications to Timor Leste women. These young women now possess a Certificate 2 in Kitchen Operations and have had 12 months experience in an international standard kitchen.

The Department of Immigration and Citizenship has been working with the AHA and other bodies to develop pathways for workers from overseas to come to Australia and work. The new seasonal workers scheme for hospitality workers from Timor Leste (starting July 1st) is an example of this. Sean Mahoney Chief Executive International College of Advanced Education


Mature workers: the untapped talent pool

Heidi Holmes

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ature workers appear to be the hot topic in 2012. But while researchers want to research them, and journalists want to write about them, which organisations want to employ them? For every new labour market entrant there are seven available workers over the age of 45. Despite the doom and gloom, many Australian businesses continue to face skills shortages across a vast range of industry’s and occupations. While the mining boom continues to demand and attract the best workers, if other organisations don’t adapt their recruitment practices, they are at risk of facing continued labour shortages. The mature age worker profile presents a strong business case for employment - lower turnover, higher productivity – all resulting in a better return on investment for the employer. A study by Griffith University in 2006 found that the hotels industry in Australia typically loses about half (50.74%) of its employees every year. The average benchmark for staff turnover across all Australian organisations is a rate of about 15%. For an industry such as the hotels and hospitality sector, the reliability and work ethic of a mature worker might present a refreshing change, not to mention a reduction in labour expenses. The Federal Government also offers incentives for employers of mature age workers through the Experience + program launched in 2010. This includes advice relating to recruitment and retention strategies as well as financial support for training. Experience+ Training allows eligible employers to apply for $4,950 (including GST) to pay for, or contribute to, the cost of approved training for a mature age worker. Funding must be used to pay for, or contribute to, the cost of a Certificate III (or above) level course for a mature age worker. This presents a fantastic opportunity for those in the hospitality and tourism sectors to train and up-skill employees at a minimal cost, while proactively providing a solution to the industry’s skills shortage. For anyone interested in finding our more about mature age workforce solutions please visit www.adage.com.au or email Heidi@ adage.com.au Heidi Holmes Managing Director, Adage.com.au

Ewan Brown

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he AHA has been working with the Australian Chamber of Commerce and Industry (ACCI) to assist in developing a series of practices to increase the retention and/or recruitment of mature age workers. These practices are outlined in the “INVESTING IN EXPERIENCE” EMPLOYMENT CHARTER. 1. We know our workforce & We plan for the future. 2. We recruit the best, regardless of age. 3. We believe in lifelong learning & we encourage skills & knowledge transfer. 4. We are proactive in retaining our staff. 5. We support our employees in the transition to retirement. 6. We practice age diversity. 7. We provide a safe working environment. 8. We involve our staff. 9. We promote and share better practice. A Tool Kit is available from the Federal Government (DEEWR) to assist with the development of recommended practices. The primary component is to identify the age structure of the workforce. The next stage involves a discussion with the employer to ascertain any future skills or workforce needs, gaps or specific training or advice programs suitable for retaining older workers. These programs are then arranged & the outcomes assessed. Some programs can be as simple as providing pre-retirement advice to older employees so that they are more aware of the options available for planning for retirement. In order to assist employers with the Experience+ Charter and Toolkit and to understand the range of government programs for mature age workers the AHA is contributing to the development of a new guide titled “The Business Case for Recruiting and Retaining Mature Age Workers”. This aid can help employers to come to grips with older worker issues, such as overcoming barriers, and provides guidance on creating an age-friendly workplace.

Ewan Brown Project Manager, Mature Aged Engagement Australian Chamber of Commerce and Industry

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Hospitality Group Training has their finger on the pulse!

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Wendy Ettridge

GT the not for profit initiative of the AHA/ SA was formed over 30 years ago. Today it is the largest employer of hospitality apprentices and trainees in South Australia covering all areas of hospitality, including commercial cookery, kitchen-hands and front-of-house staff. HGT is the only industry owned organisation in Australia offering Group & Registered Training. Skill drainage is an ongoing concern for the hospitality industry and the current financial pressures have further compounded the issue with low take up of apprenticeships combined with increased use of casual unskilled labour creating a future skill shortage. The hospitality sector employs 5% of South Australia’s workforce, based on employment growth forecasts coupled with natural attrition of current workers, it is expected the sector will need 15,000 new workers in the next 5 years. “With the growing skills shortage in the industry HGT has worked with our board of directors to make plans to sustain staffing levels and assist Industry members with trained staff for their venues” says AHA president Peter Hurley. “The launch of our new Hospitality Skills Centre is one way we are working to address this skill shortage”. HGT main focus for the industry is to assist with retention of existing workers to equip chefs with the skills to cope with the elements of their job leading to better retention rates, training to support new job roles - to assist in the transition from chef to kitchen manager with support structures in place, training to improve the quality of services/products - better trained personnel to be able to produce better chefs and increasing participation of particular labour market segments - increased demand being met for suitably trained management staff. HGT’s role as “Not for profit” means it is dedicated to working with the industry to ensure it continues to meet member’s needs. “Over the last 4 years we have been successful

in targeted funding proposals to assist with the many workforce needs of the industry including LLN programs to assist with apprentice completions. The new “Hospitality Skills Centre” is the first of many steps we have planned for reshaping how we manage, support and provide skilled staff and apprentices to the changing face of hospitality for AHA members in South Australia” says Wendy Ettridge, CEO HGT. A major aim of HGT is to ensure an ongoing effective training and employment model for the future of the hospitality industry.

Wendy Ettridge CEO Hospitality Group Training


No rewards in fiddling with award super

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he Productivity Commission is currently reviewing the selection of default superannuation funds within the Award system. Currently employers must give their employees the chance to choose which super fund their 9% superannuation contributions will be paid to. For those employees that don’t choose a fund, which is the overwhelming majority, the employer is then responsible for selecting a fund for them – a default fund. Choosing an appropriate default super fund is a task that places a legal burden of responsibility on employers, in addition to the ongoing need to ensure regular super payments are made for employees. The current award system names a selection of super funds for employers to choose from. The Hospitality Industry (General) Award 2010 names six funds. Often, though not always, the named funds are industry super funds established specifically to serve the industry particular awards relate to. The current system has worked well to date, with many default funds providing above-average returns and recent survey results showing the vast majority of employers are satisfied with existing arrangements. The Productivity Commission has been asked to consider awards being opened up to all funds, rather than providing a manageable panel of default funds for employers to choose from. This ‘open slather’ approach would require employers to research and decide on a super fund for their workers from literally hundreds of different funds. This would be an unreasonable task for employers who are already time poor from dealing with extensive business regulation, and many will feel the need to either enlist the services of an external consultant or make a less than informed decision that may prove not to be in the best financial interests of their employees or business. Altering what is currently a successful model would certainly provide a benefit to the retail super fund and banking sectors. However, it is hard to see what benefits would flow through to the types of workers employed under an Award and, as often happens with this kind of reform, the additional workload and responsibility will fall at the feet of business owners. In 1987 the AHA, along with United Voice (or the LHMU as it was known at the time), took the collaborative step of establishing the Hostplus Superannuation Fund as the industry fund for hospitality, tourism, recreation and sport. Hostplus has been a hugely successful fund and now has almost one million members, deals with 80,000 employers and controls almost $10 billion in member funds. Hostplus has also been recognised as the SuperRatings Fund of the Year for 2007, 2008 and 2009 and as Money magazine’s ‘Best of the Best’ awad for Best Super Fund Manager for 2007, 2008 and 2009. Like many industry super funds, Hostplus returns any profits made back to members in the form of improved products and services and through

keeping its fees as low as possible. The fund is governed by a Board made up of three representatives from the AHA, three from United Voice and three independent Directors. This structure, which was cited in the recent Cooper Review of superannuation as best practice, ensures the interests of employers and workers are met and provides the Fund with a strong understanding of the intricacies and employment nuances of our sectors. As a strong contributor to our industry well outside of merely providing super services, Hostplus is one of the proudest achievements the AHA and United Voice share. Our industry is one where employees move between jobs and in and out of the industry. Hostplus provides the valuable ability for them to be able to stay with the one fund and enjoy continuity of membership. Employers also benefit through minimising the number of funds they need to deal with, given most industry workers will already have an existing Hostplus account. Our discussions with our members confirm that most employers see default superannuation arrangements as a matter that should be dealt with within the industrial system and are NOT in favour of a system that places the burden (and potentially cost) of these important decisions at the foot of each employer. There is also a moral responsibility that for many employers weighs heavily upon them. Of course there is a clear need for a rigorous process to be in place in relation to the selection of default funds, and this currently exists within the modern Award system. Any future model should retain this safeguard. The AHA’s submission to the Productivity Commission inquiry called for the process of naming default funds to be retained with in the industrial relations system and adjudicated by Fair Work Australia in consultation with employer and employee representatives. This process would be an open and transparent system that would require all default funds named in an Award to have demonstrated the ability to provide sound investment strategies and a range of member and employer services relevant to the industry. Ultimately, employers play a critical role in managing the payment process of superannuation for workers and they have a significant responsibility in appointing a default fund for a workforce that is often not interested in, or equipped to choose their own fund. Many businesses, however, will struggle to make this decision appropriately if they are entrusted with reviewing the merits and capability of potentially dozens or even hundreds of funds. Dramatic change to the existing, successful system would be a reform with few winners. Steven Fanner National AHA Corporate Affairs Manager

Changes to the way super is reported on payslips The Government has proposed new regulations requiring employers to provide workers with more information on payslips in relation to super contributions. Currently employers are required to advise the amount of super to be paid for employees. However, new legislation will require employers to also show the date this payment will be made. This change will make it easier for workers to track the payment of their superannuation entitlements and is set to take effect for payments paid on or after 1 July 2012.

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The rewards of a diverse workforce


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killed labour is vital for Australia’s future. Our population is ageing. To maintain our standard of living we need to both prolong the working life of those who are in the later stages of their working life and to draw as many new entries into the workforce as possible. Our economic growth and future prosperity depends greatly on our ability to supply business with the labour force needed to operate productively. An enormous shift in demographics through the aging of our population means that this is not going to be easy. Right under our noses, there’s an enormous untapped resource of workers, and all it will take to open this reservoir is for organisations to embrace hiring practices that are outside the box, hiring people who are capable of doing the job, not just the type of person we’ve always hired. Widening the base of potential employees and contractors is good for business and good for the economy. There are some challenges to overcome for business and government in boosting work opportunities for all Australians. Business people need to be encouraged to rethink their engagement strategies, to learn there can be real benefits to hiring someone who may not be the norm. For government, of course, it is getting the policies and support mechanisms right to assist both business and job seekers. ACCI and the AHA calls on business to employ outside the box when hiring new employees or contractors. Hiring someone from outside the traditional pool of workers isn’t about taking a risk or an act of charity. It makes sense from an economic as well as a business perspective to embrace the opportunity to diversify the workforce, securing future skills and labour and boosting the nation’s economic prosperity. The aim of this series is to encourage businesses to diversify their workforce. By providing a clear business case and a simple, systematic approaches to reviewing internal policy and procedures, we hope to help businesses employ outside the box.

Setting the scene The economic argument for increasing workforce participation is well established. Australians are aging and our productivity needs boosting. The 2010 Intergenerational Report estimates that the number of people in Australia aged from 65 to 84 will more than double over the next 40 years, with the number of people 85 years and older set to quadruple. Australia will need to grow its workforce in order to fill the void left by workers leaving the workforce and ensure that we have the skills and capacity to support both an older population and a growing economy.

The population’s median age in 2010 was 36.9 years, up from 32.1 years in 1990, and this is expected to continue to rise. • The workforce aged over 45 is now around 31% and those under 25 only 17%. • By 2050, nearly one-quarter of the population will be aged 65 and over, compared to 13% today. • By 2050, there will only be 2.7 people of working age for every person 65 and over, compared to 5 people of working age today for every person 65 and over. • Today’s older workers intend to retire later, at around 64 years for men and 62 years for women, compared to 58 years for men and 47 years for women in 2007. • Increasing the participation of mature age workers by 5% in the next 40 years would increase real GDP per capita by 2.4%.2 To address the shortfalls created by retirement of our aging workforce and the new jobs created in the economy calls for a radical rethink in human resource strategies. Future competitiveness is likely to rest substantially on the performance and productivity of Australia’s workforce and on the more effective use of its potential workforce. Although part of the answer comes from migration, the supply of overseas labour to meet our domestic skills needs is by no means assured. Australia faces increasing competition from other economies seeking skilled migrants. Also, the economic growth of emerging economies which are often the source countries for skilled migrants will encourage more nationals to remain in their home country.

Where is this untapped potential? With only 65% of Australia’s working age population seen as being in the labour force (see definitions) this leaves considerable untapped potential for building the nation’s wealth and meeting the skills and labour needs of the nation’s businesses. Skilled labour does not grow on trees. Essentially Australia can only get labour from two sources. We can either import from overseas or we make full use of the existing potential workforce. But with 35% of our working age population not in the workforce, we have an enormous, untapped resource, a reservoir of literally millions of people who are capable of both skilled and unskilled labour. Several attempts have been made to reach this resource, with varying degrees of success, but with the pressure building—as Australia’s population continues to age—the need to access this resource steadily increases. We simply cannot afford to ignore it.

The extent of the problem presents a stark reminder for employers seeking to fill vacancies in the future1: National Seniors Australia Barriers to Labour force Participation: Interim Recommendations - Facilitating the Labour Force Participation of Older Australians” August 2011 Intergenerational Report 2010 3 Productivity Commission, 2007; Workforce Participation Rates - How Does Australia Compare? 1 2

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The 35% of the population that is not currently in the workforce is made up of groups such as stay at home parents, people with disabilities, early retirees and other disengaged people. Many of these people have the capacity to find and keep a job and make a valuable contribution to the nation’s wealth if they are given the support and opportunity required to make the transition into work. Not included in the 35% of non-participants, but still an important source of future labour, is the t630,000 unemployed Australians who represent some 5.3% of Australia’s twelve million strong labour force.

Projections from the 2010 Intergenerational Report, estimate Australia’s participation rate will fall from 65.1 % in 2010 to 63.9% in 2025 largely because of the exit of mature aged employees from the labour market. If Australia is to remain a prosperous nation, we must secure our workforce so that we can maintain our standard of living and continue our economic growth.

Outside the Box Figure 3: The Workforce Participation Box

Although Australia’s workforce participation rate increased from 61.3 per cent in 1980 to 65.2 per cent in 2012, it still compares unfavourably with other prominent OECD countries3. Figure 1: Workforce Participation Rates – International Comparison

Also, the rise in the participation rate, masks divergent trends between participation rates for males and females. The participation rate of males declined over the last 30 years from 78.3% in 1980 to 71.9% in 2012, while the female participation rate increased from 43.5% in 1980 to 58.7% in 2012 as more women entered the workforce. Figure 2 highlights the recent trend of declining male participation rates against the growth in female participation rates. Figure 2: Workforce Participation Rate, 1978 - 2012

The potential for growth in employment participation has a broad base. There are many groups of people that are underrepresented in the working population and as such present opportunities for businesses seeking to diversify their workforce and employ outside the box. People not participating come from all backgrounds and across all regions of Australia, and the key groups include:

People with Disabilities There is currently in excess of 800 000 Australians on the Disability Support Pension with only 8.5% of those reporting earning outside the DSP. Additionally, 40% of new DSP recipients moved from Newstart unemployment benefits onto the DSP. In the 2010-2011 year there were 91 000 new DSP recipients, while only 58 000 stopped receiving the DSP, of whom 62% transferred to the aged pension.

“If Australia is to remain a prosperous nation, we must secure our workforce”

4 5

Mature Aged Workers People aged 45 and over will need to provide 85% of workforce growth in the next decade in order to meet the labour demands of employers.4

VECCI, 2009, Grey matters ABS 2010, Labour Force Characteristics of Aboriginal and Torres Strait Islander Australians, Estimates from the Labour Force Survey, 2010


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Indigenous Australians In 2010, there were an estimated 166,100 Indigenous people aged 15 years and over who were employed. This represented 46% of the Indigenous population of working age. Additionally, underemployment for Indigenous Australians remains consistently higher (18%) than the non-Indigenous population (12.6%)5 Indigenous Australian remain an underutilised source of labour, especially in regional and remote areas

Long term unemployed and underemployed There are currently some 630,000 unemployed6 Australians. In addition, around 880,000 of the employed labour force are seeking more hours or want more work.

Women returning to work Estimates show that Australia could increase its GDP by 13% or $180 billion if it closed the gap between male and female participation rates.7 While the participation rate for women has increased significantly since the 1980’s, it still lags well behind that for men and we sit at 18th amongst the OECD nations.

Men not at work8

Economic Benefits from Increased Participation Increasing the hiring and retention of people from those who are unemployed or currently not participating offers considerable benefits to businesses and the economy. Business has a leading role, in conjunction with government and the broader community, in driving the policy agenda and developing new strategies to address the issue of lifting workforce participation rates. Cyclical pressures on the labour market create fluctuations in the supply of labour over time, but in the longer term, Australia will need to maximise the number of people in the workforce to keep pace with an economy set to continue expanding into the foreseeable future. This workforce will have to be smarter and better skilled to cope with changes in operating environments, competitive pressures and economic circumstances. If Australia as a society is to continue to maintain its relative standard of living then the productive capacity of the labour market must rise at least in concert with those of our trade competitors.

Of the 8 million Australian males in the adult male civilian population, at any one time over 2.2 million or nearly 30 per cent were outside the labour force - neither working nor looking for work. These may be men who have taken early redundancy, be carers, have been injured or ill or working in the “grey economy” doing cash jobs.

ACCI and the AHA does not suggest that business should engage people at the expense of their capacity to compete in the marketplace, rather that businesses can improve their assurance of long term labour supply and benefit their own businesses by providing sustainable employment opportunities for those currently outside the workforce.

Unemployed youth

Benefits to Employers of diversifying their employment base

Between 2008 and 2011 the rate of non-participation among teenagers who were not in full-time education rose from 12.2% to 18.5%, the highest level since the recession in the early 1990’s9. The number of 20 to 24-year-olds not engaged in full-time work or full-time education also rose considerably, to around 25 per cent, reversing the downward trend of the previous decade. Previous economic downturns have shown that it takes up to a decade for youth unemployment to drop back to pre-downturn levels.10

Workers with different industry backgrounds The Australian economy is undergoing significant structural adjustment which is resulting in the need for some workers to look for new career opportunities outside the industry within which they have honed their skills. Businesses seeking workers are encouraged to look beyond the lack of experience in their own industry, and to the skills that these people can bring to the business.

The ACCI Survey of Investor Confidence has consistently listed the Availability of Suitably Qualified Employees in the top five most pressing constraints on business investment despite an otherwise gloomy economic outlook. Accessing skilled employees, even during the Global Financial Crisis, has been a major issue for many employers and in some cases, can have a significant impact on a business’s ability to grow. While the benefits of engagement in work for the individual and for the nation more broadly are well documented, the benefits to the business are less so. Although being a good corporate citizen is a noble aim, ultimately the effectiveness of plans to increase workforce participation require businesses to see an economic benefit of adopting diverse employment practices. There has to be a positive business case. Employ Outside the Box is about better understanding the very real and tangible benefits to business of employing people currently outside the labour force. These include: • Creating a competitive advantage – Research has shown that for businesses seeking a competitive advantage, focusing on diversity is an

Australian Bureau of Statistics, Labour Force, Australia, Nov 2011 Goldman-Sachs Economic Research, Weekly comment: Productivity, Much ado about nothing, 26 August 2011. 8 Productivity Commission 2008, Men Not at Work: An Analysis of Men Outside the Labour Force 9 ABS 2011, Labour Force, Australia, Nov 2011 10 OECD, 2011, Rising Youth Unemployment During the Crisis 12 Noble, J. (1999) Entrepreneurial Research Project, Telstra Australia. 6 7

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effective way to become product or service innovators. Businesses that mirror the community are part of the community. • Securing your future workforce – the future labour market is likely to be characterised by considerable competition between employers seeking workers rather than the competition for workers seeking jobs, diverse employment practices can help overcome skills and labour shortages in a tight employment market. • Being an Employer of Choice – Diversifying your employment base can help the business be seen as an employer of choice, a company that people WANT to work for. There are also awards and recognition schemes that recognise employers’ commitment to diversity. • Building employee loyalty – Employees who feel they have been given an opportunity by an open-minded employer usually respond with enthusiastic and loyal service. • Growing the skills of your current workforce – Diversifying your employment base can open opportunities for existing workers to upskill into higher level positions or to act as trainers and mentors for new employees or contractors. • Taking advantages of Government incentives – financial incentives, training support and workplace modification support are the types of government support provided for employing some disadvantaged job seekers. • Employing locally leads to longevity – regional and remote areas benefit from increasing their workforce base through employing locals who are far more likely to stay in the region. This is a particularly strong business benefit for businesses employing a local indigenous workforce. • Meeting legal obligations and managing risks – All employers and service providers are obliged to comply with national and state antidiscrimination legislation. You are less likely to receive a complaint of discrimination if you take active steps to comply with antidiscrimination legislation and Substantive Equality principles. Some employers have previously expressed concerns about perceived risks of employing people outside the labour force, including workplace safety issues, the new employee not fitting in to the workplace culture and the cost to changing existing infrastructure. However, there is strong evidence to refute these perceptions. For example, people with disability have a lower number of occupational health and safety incidents compared with employees without disability. Workers’ compensation costs are also lower for people with disability compared with other employees.11 Research conducted by Telstra into call centre staffing found that over a 15-month period, people with disability had 11.8 days absent, compared to people without disability who had 19.24 days absent.12 Changes to the workplace to allow better access for employees often also translates to better access for clients and customers, there is also government funding available that can contribute to the cost of modifications.

What Can Governments do to help? Employers alone should not shoulder the entire burden of lifting workforce participation. Access to training, government support and incentives should continue to be available to support businesses looking to diversify their employment base. ACCI and the AHA believes that a medium to long term (4 -5 five year) strategy, starting with a clear action plan, is needed to promote engagement of those outside the box. Past experience has shown that short term projects and initiatives show some success during their operation but rarely continue beyond the initial funding period, resulting in lost momentum, lost initiative and lost talent. Most importantly, ACCI and the AHA considers that a broader strategy for promoting engagement and participation is needed. There have been fragmented approaches to promoting employment for those outside the workforce based on the various categories of equity groups. A single comprehensive strategy should be developed to promote increased participation involving: • Targeted industry campaigns; • Broad communications to employers and the community; and • Welfare reforms and enhanced mutual obligation requirements.

Increasing participation need not be at the expense of skills ACCI and the AHA supports participation policies that enable all Australians to be competitive in the employment market. This means providing people with marketable skills and delivering a training system that keeps pace with the skill needs of business. Government policies must foster a commitment to work and life-long learning for all those capable of participating in employment. More effort is required to ensure those groups outside the box have the skills they need to be competitive in the labour market. For example, latest figures show that people with a disability represent some 18.5% of the population13 yet only 5.9% of total VET enrolments of students in 2005 identified themselves as having a disability. In addition to the low numbers of people with a disability engaging with VET, of the 97,000 people with a disability who undertook a VET qualification on 2009, only 16,000 registered a completion; and of those, only 56% recorded an employment outcome. A national strategy to increase participation must include a strong skilling component to ensure that those people outside the box have skills that will enable them to be competitive in the labour market. This is particularly important for those people moving from one industry to another during their working life as part of structural adjustment occurring in the economy.

Australian Safety and Compensation Council 2007, ‘Are people with disability at risk at work?’. Noble, J. (1999) Entrepreneurial Research Project, Telstra Australia. 13 ABS, Disability, Australia, 2009 11 12


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Language, Literacy and Numeracy

Employability skills

According to research by the OECD, basic education and training contribute to better public health, lower crime, the environment, parenting, political and community participation, and social cohesion. The same research indicates that a 1% rise in average literacy across a nation’s population will lead to a 1.5% increase in GDP per capita and a 2.5% rise in labour productivity.

In the modern business environment of productivity and efficiency, workers are required to perform many different tasks and be able to understand the holistic goals of the organisation. They must be adaptable to change, able to fit into many differing roles across the scope of the organisation and be able to adapt to new technology and work practices quickly.

The 2006 Adult Literacy and Life Skills Survey (ALLS) shows that approximately 7 million or 46% of Australians aged 15 to 74 years lack the prose literacy skills and approximately 7.9 million (or 53%) lack the basic numeracy skills to function effectively in the workforce and in everyday situations.

Employability skills are the essential ingredient for employees to have the adaptability and personal attributes to fit this new model for the workforce. For those outside the box, employability skills represent the skills that they need to gain employment or establish an enterprise, but also to progress within an enterprise or expand employment capability, so as to achieve their potential in the workforce.

Basic levels of language, literacy and numeracy underpin the ability of an individual to progress into further education and training.

Vocational Education and Training For those outside the box, developing occupationally specific vocational skills is, in many cases, an essential step in gaining employment. ACCI and the AHA believes that the focus of VET for non-participants in the workforce should be on basic vocational skills development in entry level qualifications, such as Certificate 1, 2 & 3, and skills sets linked to real job outcomes. Further, training (and government support for training) should be focussed on occupational areas that are likely to lead to sustainable job outcomes. This would involve individuals undertaking training for jobs that are in demand in their region, and are likely to be in demand in the future. Past experience has shown that supply driven approaches, such as those where government or training providers dictate what offerings are made to individuals increase the likelihood of a mismatch between the skills needs of employers and the skills of the individual upon the completion of training. This can cause the individual to question the value of skills development, as past experience has not achieved real outcomes and for employers to lose faith in a training system that does not deliver the skills they need. Essential to developing work ready skills for those outside the box is the need for training to contain strong component of work based learning. Many individuals outside the box may have little or no contemporary work experience. It is essential that these people gain some exposure to a current work environment in their training, either real or simulated, to prepare them adequately for the world of work. Exposure to a real work environment also helps to contextualise and confirm the skills they have learnt so that they have an understanding of how those skills are used on the job.

Key skills, which describe the learned capacity of an individual under the Employability Skills Framework, include: • Communication skills that contribute to productive and harmonious relations between employees and customers; • Team work skills that contribute to productive working relationships and outcomes; • Problem-solving skills that contribute to productive outcomes; • Initiative and enterprise skills that contribute to innovative outcomes; • Planning and organising skills that contribute to long-term and shortterm strategic planning; •Self-management skills that contribute to employee satisfaction and growth; • Learning skills that contribute to ongoing improvement and expansion in employee and company operations and outcomes; and • Technology skills that contribute to effective execution of tasks.

Careers advice For those outside the box, career development is important to give them an understanding of the jobs that are available and the training that can help prepare them for work. Career development advice, providing accurate, complete and current information about occupations and industries assists individuals in making informed choice about their future employment path and sets them on the road to developing the skills necessary to gain employment. There should be more opportunities for industry-provided career advice and reforms that link students with direct business and industry information not just websites that indicate general information or individuals without an understanding of the broader skills and labour needs of business. Without an industry perspective on this information, individuals may make decisions without being fully informed about that industry and may form unrealistic expectations about the type of work they will be doing.

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Employ outside the box T H E R E WA R D S O F A D I V E R S E WO R K F O R C E

Employment Service Providers ACCI and the AHA stresses the importance of involving employers in developing strategies that will ultimately lead to sustainable employment outcomes for those outside the box. Job Services Australia (JSA) and Disability Employment Services (DES) providers need to work with employers to ensure that jobseekers have both the required skills and a work ready attitude to ensure a smooth transition. Communication between JSA/DES providers and employers could benefit from the involvement of intermediaries (such as business and industry associations where appropriate). The concept of “Employers as clients” for JSAs and DES requires greater focus. In particular, ways in which small and medium employers can be supported to establish employment opportunities for unemployed persons is needed. The work of individual JSA/DES providers should tie into overall government, industry, regional and local strategies. Employer engagement should be central to this approach. Services provided by JSA and DES should be mainstream to employer options for filling job vacancies. The use of JSA by employers has fallen to as low of 5% of recruitment. These job services should be part of the general job market, not just a service for the disadvantaged and disengaged. Employers and job seekers alike need to see it not as a welfare offering, but a legitimate part of the job market. Industry feedback suggests that some JSA providers do not have sufficient specialist industry knowledge to make a satisfactory placement, so opportunities for real employment outcomes in industry are lost. Stronger engagement between employers and JSAs would lead to JSAs developing a stronger understanding of the needs of employers as well as employers developing an appreciation of the JSAs offerings to employers.

Recommendations ACCI and the AHA have identified a number of other key recommendations aimed at promoting the employment of people currently outside, or marginally attached to, the workforce. ACCI and the AHA recommends: 1. That business leaders across Australia take shared ownership of the employment participation issue and drive change within their own organisations as well as promoting the benefits of a diverse workforce more widely. 2. A national below the line marketing campaign aimed at employers to dispel the myths of employing people from disadvantaged groups as well as promoting the economic and business advantages of diverse employment practices. 3. A strong interface between employers and Employment Services Providers driven through industry associations to improve understanding and practices and to build confidence in providers.

4. Through data analysis, identify where there is a good fit between the jobs available and target groups. 5. Establish, in conjunction with peak business bodies, a “Corporate Champions” initiative and other awareness programs that actively promote employment of people from disadvantaged groups. 6. Streamline incentives to employers for employing people from disadvantaged groups. Establish one basic category for incentives funded from a single source agency that recognises the variety of disadvantaged groups and the challenges faced by employers in offering employment to them. 7. Increase Mutual Obligation requirements and introduce compulsory participation requirements in employment related activities across all streams such as Work for the Dole and training activities for people receiving payments deemed capable of working in order to boost their skills and employability. 8. Increase access to skills development, employability skills and vocationally specific Language, Literacy and Numeracy for people currently outside the workforce. 9. Provide VET courses for those outside the workforce in areas of employer demand at appropriate entry levels of Certificate I, II and III and skills sets including a strong component of work experience in a real employment environment linked to occupational outcomes. 10. Provide industry driven careers advice to those outside the workforce to assist them in making informed choices regarding training and employment prospects.


Fair Work Act 2009 Review

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he Federal Government is undertaking a review of the Fair Work Act 2009 and the following are extracts from the AHA submission in respect of this review. In addition, the AHA has had the opportunity to meet with members of the Fair Work Act Review Committee who are required to make recommendations to Government by 5 May 2012. 1.1. Definition of Service 1.1.1. Under the s87(2) and s96(2) (respectively) of the Fair Work Act, annual and personal/ carers’ leave accrues during periods of ‘service’, which is defined at s22 as being any period during which an employee is ‘employed’ but does not include any unauthorised absences or unpaid leave (except for unpaid community service leave). 1.1.2. The AHA’s concerns relate to the fact that neither the NES or Modern Awards reference or define ‘service’ for the purpose of leave accrual. In our experience, this has led to significant frustration on the part of payroll administrators, who have been unable to refer to an easy definition of service. THE AHA submits that this should be remedied by including a legislative note to s87(2) and 96(2) of the Fair Work Act which references the fact that service is defined at s22. Recommendation 1 Legislative notes be added to s87(2) and s96(2) referencing the definition of service in s22. 1.2. Payment for public holidays 1.2.1. The AHA members have experienced uncertainty regarding the operation of s116 of the Fair Work Act, which indicates when an employee is to receive payment for absence on a public holiday. 1.2.2. Section 116 provides that an employee who is ‘absent from his or her employment on a… public holiday’ must be paid at the employee’s base rate of pay. However, in the AHA’s experience this has led to some ambiguity in respect to employee absences

on unauthorised or unpaid leave (except in relation to community service leave). 1.2.3. The AHA submits that s116 should be amended to make it clear that payment does not have to be made to those employees who are on extended authorised unpaid leave, or to those on unauthorised leave. 1.2.4. While the AHA considers that s116 does support the exclusion of public holiday pay to those employees who are either on extended authorised unpaid leave or unauthorised leave, it would be preferable for a subsection to be added to s116 to put this matter beyond doubt. The AHA submits that such employees should not be entitled to payment for public holidays, as this is an entitlement which is supposed to accrue only to those employees who would have otherwise worked on that day. Employees who are on unauthorised or unpaid leave (apart from community service leave) do not accrue paid annual or paid personal carer’s leave, due to the fact that they are not providing ‘service’ as defined under s22 of the Fair Work Act. The AHA submits that ‘service’ could be similarly used in s116 regarding public holiday payments, to resolve the ambiguities that we have raised above. Recommendation 2 Payment for public holidays only be available where an employee is providing service as defined under s22. 1.3. Preservation of certain State and Territory industrial laws 1.3.1. Section 130 of the Fair Work Act indicates that leave will not accrue and cannot be taken where an employee is absent from work but receiving workers’ compensation. Because this exclusion is itself subject to State and Territory law, which will apply where it provides accrual to employees on compensated absences, employers must have regard to confusing and often uncertain State and Territory workers’ compensation laws. This, in the AHA’s experience, leads to uncertainty about entitlements, particularly where the hotel business operates in at least two States or Territories.

1.3.2. However, the exclusion at s130 is directed only at leave arising ‘under this Part’, i.e. Part 2-2: the NES. This means that where modern awards or enterprise agreements supplement the NES, any entitlement in addition to that provided under the NES will accrue while an employee is on a compensated absence. For example, if an enterprise agreement provided five weeks annual leave per year, four weeks would arise under the NES (which would be excluded by s130, unless State or Territory law stated otherwise) while one week would arise under the enterprise agreement, which would continue to accrue to an employee on a compensated absence. 1.3.3. The AHA submits that s130 should be redrafted, to make it clear that employees on compensated absences are not able to accrue or take leave, whether arising under the NES, a modern award or an enterprise agreement, unless a modern award or enterprise agreement specifically states otherwise. No State or Territory exclusion should be permitted. This would not only make the provision simpler, it would also be fair: employers should not have to pay employees who are absent from work when they are being separately remunerated under a State or Territory workers’ compensation regime. Recommendation 3 Leave entitlements should not accrue nor be available to an employee on a compensated absence, unless a modern award or enterprise agreement says otherwise, with no State or Territory exceptions. 1.4. Transfer of business 1.4.1. As the Explanatory Memorandum to the Fair Work Bill indicate : Although the provisions of… Part [2-8] use the term transfer of business, they are not intended to require the focus under [the Workplace Relations Act] on what the ‘business’ of the old employer is and whether the new employer has in some way taken over that ‘business’. They instead focus on whether there has been a transfer of work between two employers and the reason for the transfer of that work or, viewed another way, the connection between the two employers.

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1.4.2. The rationale for this shift away from focusing on whether a business has transferred is unclear. What is evident is that certainty in business transfers has been replaced by inherent uncertainty and risk. This uncertainty affects the employment prospects of workers, as risk averse businesses shy away from complex laws. 1.4.3. Section 311 of the Fair Work Act imputes a transfer of business when the following criteria are met: • the employment with the old employer has terminated; • within three months of the termination, the employee becomes employed by the new employer; • the work the employee performs in the new role is substantially the same as the work performed in their old role; and • there is at least one connection between the new and old employer. 1.4.4. The AHA has concerns in relation to the tenuous nature of the ‘connection’ required between the old employer and the new employer. These are indicated at s311(3) to s311(6) of the Fair Work Act and include circumstances where there has been: • a transfer of assets between the old and new employer (or associated entities of those employers (s311(3)); • outsourcing (s311(4)); • insourcing (s311(5)); or • the two entities are associated entities (s311(6)). 1.4.5. If any of the above connections are made out, the prior enterprise agreement will apply to the transferred employee and to potentially later workers engaged to perform the transferred employee’s role. Complex rules about accrued ‘service’ for the purposes of annual leave and redundancy also apply. Importantly, unless FWA orders otherwise, the transfer of business rules apply automatically. Employers are put to an expensive process where they seek a tribunal order that a prior industrial agreement not apply to the transferred employee. 1.4.6. The types of connection described under s311 of the Fair Work Act deny the reality of

industries (such as the hotel industry) which are subject to transfers of materials and employees as a matter of course. 1.4.7. Large parts of the hotel industry is characterised by intermittent work and an itinerant workforce. As a result many employees are engaged on a daily hire basis. Daily hire employees regularly move from one employer to another, depending on which employer has work available. In this circumstance, all necessary elements of the ‘transfer of business’ rules are met, other than having the requisite connection. The AHA submits that the fact that a connection can be made out simply based on a transfer of assets or association between entities leads to poor outcomes for both employers and employees and should be changed. 1.4.8. In relation to a transfer of assets connection under s311(3) of the Fair Work Act, it is common practice for a contractor who has excess materials following the completion of a project to sell those materials to other contractors. There is no guidance in the Fair Work Act as to what constitutes ‘assets’ for the purpose of s311(3), but a plain reading of the word asset would include materials, as stock and inventory are considered assets at least in an accounting sense. This creates an absurd situation where competing hotels with no real connection could be exposed to a transfer of business situation simply by employing a person from their competitor only to find that they are obliged to pay the employee based on the previous industrial instrument. 1.4.9. The AHA recommends that the previous transmission of business rules, based on the transfer of a business, be reinstated. Attempts to expand the scope of transmission of business rules beyond this common sense limitation injure employment prospects rather than protect them. Recommendation 4 Transfer of business rules be limited to circumstances where a business has actually been transferred 1.5. Extension of time: Unfair Dismissals 1.5.1. There is growing anecdotal evidence

that the needs of business in the hotel industry (especially small businesses) not being met. The procedures for dealing with unfair dismissal are neither quick, nor flexible, nor informal. Compliance is not easy nor free of significant cost. Employers are forced to spend time and money defending often speculative claims, with the vast majority being resolved through commercial settlements. Unfortunately it appears, from the experience of the AHA and its members, that Fair Work Australia remains a jurisdiction of ‘go away’ money, where reinstatement remains impracticable. 1.5.2. The AHA is concerned that the increase in administrative costs faced by firms, especially smaller ones, by the introduction of the new unfair dismissal system may reach a level that jeopardises productivity growth and redeployment of labour. This is especially true in the hotel industry given the below average profit levels of hotels. 1.5.3. The need to reduce the time limit for lodgement of unfair dismissal claims was recognised as a necessary change in order to enable the quick resolution of claims, and to increase the ‘feasibility of reinstatement as an option. To achieve this objective the time limit was to be reduced from 21 days to 7 days, and the discretion for FWA to accept late applications was to be limited to ‘defined exceptional’ circumstances. 1.5.4. This intent was undermined when the Fair Work Bill was amended to increase the time limit from 7 to 14 days. Furthermore, in relation to the extension of time application, FWA does not always take a consistent approach as to what constitutes ‘exceptional circumstances’. 1.5.5. As a result, the reality is that claims are not resolved quickly. The initial conciliation conferences are generally not being held until well after a month following the termination has taken effect, meaning it is often already too late for reinstatement as the position has been filled. A formal conference or hearing outcome is generally several further months down the track, making reinstatement completely impracticable. This is borne out in the statistics, with only 15 of around 11,000 unfair dismissal


applications made in 2009-2010 resulting in a FWA ordered reinstatement. 1.5.6. If the emphasis of the Fair Work Act is to remain on reinstatement, the time limit for lodging a claim should be reduced to the originally envisioned 7 days. Extensions of time should only be granted in truly exceptional circumstances, remaining true to the test used in Shields v Warringarri Aboriginal Corporation. Otherwise, unfortunately, it appears that the primary role of FWA in practice will continue to be as conciliator/ facilitator of ‘go away money’ outcomes. Recommendation 5 Extensions of time should only be granted in truly exceptional circumstances, remaining true to the test used in Shields v Warringarri Aboriginal Corporation. 1.6. Genuine redundancy exemption 1.6.1. The implications of s389(1)(b) and s389(2) of the Fair Work Act concern the AHA. Those provisions mean that, even where an employee has been terminated as a result of their position genuinely being made redundant, there may still be jurisdiction to make a claim by alleging that the employer did not meet an obligation to consult, and/or, did not take reasonable steps to redeploy them elsewhere within the employer’s enterprise or any associated entity. 1.6.2. The AHA submits that these are matters that might go to the fairness, rather than the genuineness, of the redundancy and will generally necessitate a formal conference/ hearing. Moreover, the current expansive definition of ‘genuine redundancy’ provided at s389 therefore does not provide employers with a clear ability to dismiss employees in cases of genuine redundancy. 1.6.3. AHA submits that the definition of genuine redundancy should be limited to s389(1)(a). An unfair dismissal claim should fail on jurisdictional grounds if the employer can demonstrate that it no longer required the person’s job to be performed by anyone because of changes in the operational requirements of their enterprise.

Recommendation 6 The definition of genuine redundancy should be limited to an assessment of whether a person’s job is still required to be performed by anyone. 1.7. Small business 1.7.1. Section 23(1) of the Fair Work Act defines an employer as a small business employer if ‘the employer employs fewer than 15 employees at that time’, including within associated entities (s23(3)). 1.7.2. However, small business has long been defined as a business employing fewer than 20 people. The current definition used in the Fair Work Act therefore fails to capture many legitimate small businesses and should therefore be amended. 1.7.3. The definition of small business should be changed to a business employing less than 20 people; and should not include related entities. Related entities are often operationally and financially distinct. It does not follow that an employer will have sufficient resources to justify being described as other than a small business simply because they are related to other organisations, which in the aggregate employ 15 or more people. Recommendation 7 The definition of a small business be increased to an entity that employs fewer than 20 people (not including related entities). 1.8. Reasonable grounds: Unfair Dismissals 1.8.1. The Explanatory Memorandum for the Fair Work Bill 2008 stated that the overall focus under the new IR laws was to be on early intervention and informal processes’ making it ‘simpler and easier for all parties to use’. Conferences were intended to be able to be conducted at alternative venues such as the employer’s place of business, which was to minimise the cost in time and lost earnings an employer could face in defending a claim. Legal representation would only be allowed where FWA deemed it appropriate. This was contrasted with the previous system which required an initial conciliation stage, which

then went on to arbitration if not able to be resolved. 1.8.2. In practice, the only substantive change between the old and new systems has been that more employees are making unfair dismissal claims and conciliation conferences are now done by telephone, rather than face-to-face. Where they are not resolved by commercial settlement (i.e. by way of ‘go away money’) the matter then proceeds (often significantly later) to a formal hearing or conference. Legal representation remains the norm, with cases reaching appeal stages. 1.8.3. Furthermore, the objective of early intervention would be aided by placing a greater obligation on the unfair dismissal applicant to demonstrate in their application (i.e. Form F2) that reasonable grounds are held for asserting an unfair dismissal has occurred. Too often, employers are forced to go to the time and trouble of defending baseless and speculative claims, the details of which are only disclosed at the conciliation stage. 1.8.4. Putting greater onus on unfair dismissal claimants to demonstrate reasonable grounds prior to a matter going to conciliation is therefore an important first step. This combined with strict enforcement of deadlines and the ability for jurisdictional matters to be determined on the papers, would enable FWA to deal with legitimate claims quickly. This in turn would significantly increase the likelihood of reinstatement as an outcome. Recommendation 8 A greater onus be placed on unfair dismissal applicants to demonstrate they have reasonable grounds for their claim. 1.9. Adverse Action (General Protection) claims: Reverse onus and removal of ‘sole or dominate reason’ exemption 1.9.1. The ability of employers to defend adverse action claims is diminished under the Fair Work Act due to the reverse onus of proof under s361 and the removal of the ‘sole or dominant reason’ exemption. 1.9.2. The Court in Barclay v Bendigo

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TAFE noted that the only way the employer can succeed in their defence is to show the reasons for taking the adverse action were ‘disassociated’ from the fact that a person had a workplace right. The Court in Barclay also stated that the Fair Work Act does not require a comparison between the treatment of the employee and any other employee acting in the same way and such a comparison is not to the point of the adverse action provisions of the Fair Work Act. 1.9.3. Under such an approach, it appears that the Fair Work Act has dramatically redefined freedom of association so that it is no longer concerned with whether or not a union member employee is treated differently than a non-union member employee in the same circumstances. In fact, some would argue that employers are now effectively required to discriminate against non-union members, as any misconduct of an employee in a union capacity is arguably immune to any disciplinary response from the employer. The Fair Work Act should therefore be amended to make clear that a comparison between the treatment of the employee and any other employee acting in the same way is a primary consideration. Recommendation 9 That the test for whether adverse action has occurred should require a comparison of whether the action taken against the employee concerned would have also been taken against other employees in the same circumstances. 1.9.4. If the reverse onus of proof is to be retained, the Fair Work Act should be amended so that the alleged ‘prohibited’ reason must be the sole or dominant reason that has consciously motivated the action. In Stephens v Australia Postal Corporation the Court held that an employer took adverse action and discriminated against an employee even though (on the evidence before the Court) it was unable to determine the ‘true’ reasons for the employee’s termination. However, it found that: • the employee’s compensation claim and his disability had either consciously or subconsciously influenced the employer’s decision to dismiss the employee; and

• the employer had failed to establish that the real reasons for the employee’s dismissal were disassociated from the circumstances of his workers’ compensation rights. 1.9.5. The Fair Work Act must be amended to ensure that a common sense approach prevails. An employer should only have to demonstrate that on the balance of probabilities the alleged ‘prohibited’ reason was not the sole or dominant reason consciously motivating the employer’s action. Recommendation 10 Section 360 should be amended so that an employer will be held to have taken action for a particular reason only if it is the sole or dominant reason. 1.9.6. Even with such changes, the reality is the system enables an employee to make an unsubstantiated claim against their employer – with the employer having to prove otherwise. Small business, which is provided ‘assistance’ when it comes to unfair dismissal claims, has no protection from what is a more legalistic and potentially much more expensive exercise of defending a general protections application. 1.9.7. Accordingly, in addition to the introduction of the sole or dominant reason test outlined above at s360 of the Fair Work Act, the reverse onus of proof provision contained at s361 should be amended to provide an exemption for small business employers. Recommendation 11 The reverse onus of proof at s361 should not apply to small businesses. 1.10. Time limit for adverse action (General Protections) claims 1.10.1. The current role of FWA in these matters is limited to holding conferences, which are compulsory where an unlawful termination or a breach of the general protections involving a termination is alleged. The focus of such matters is to deal with a dispute through mediation or conciliation. In practice, these conferences are similar to unfair dismissal conferences where there is a clear focus on resolving the dispute through

reaching a financial settlement, i.e. the employer pays ‘go away’ money. 1.10.2. Anecdotally, unions are increasingly using general protection claims where they do not find jurisdiction for an unfair dismissal, i.e. if the claimant is a small business employee of less than 12 months. A small business owner finds themselves with the prospect of settling the matter at conference or running the risk of defending a claim through the Federal Magistrates Court or Federal Court. More often than not, they will elect a commercial settlement. 1.10.3. Employers are often completely blindsided by a claim that may occur months or even years after the alleged incident occurred. Whilst an employee has 14 days to lodge an unfair dismissal claim, an employee has 60 days to lodge an unlawful termination or general protection claim and no time limit whatsoever in lodging a general protections application not relating to a dismissal. It is unclear why such expansive timeframes exist. What is clear is that it does not assist the speedy resolution of disputes. The timeframe for making a general protections application should be reduced to 14 days to be in line with the timeframe applied to unfair dismissal applications. Recommendation 12 The time limit for making an adverse action (General Protections) claim should be limited to same timeframe that applies to unfair dismissal applications. 1.10.4. The Fair Work Act provides FWA with an obligation to advise the parties if it considers that a general protections court application in relation to the dispute would not have a reasonable prospect of success. Currently this rarely occurs in practice, presumably because even the most speculative claim has a chance given the reasons outlined above. 1.10.5. However, should the necessary changes be made, FWA would be able to take a more active role in minimising the number of speculative claims being made. The practice of simply issuing a certificate where the parties have been unable to reach a financial settlement at conference should end.


1.10.6. FWA could ensure the integrity of the system by requiring an applicant to demonstrate that they have reasonable grounds for alleging adverse action has occurred and the interim injunction exemption under s371(b) should be abolished. Recommendation 13 Adverse action (General Protection) applicants must show reasonable grounds for their application in their application to Fair Work Australia. 1.11. Individual flexibility agreements 1.11.1. Individual flexibility arrangements (IFAs) provide employees to whom modern awards or enterprise agreements apply with the option of varying the terms of those instruments in order to meet the ‘genuine needs of the employee and employer’. However, in contrast to the Australian Workplace Agreements, IFAs do not exist independently of an award or enterprise agreement, but rather as enforceable terms of those instruments. IFAs must also ensure that the employee is better off overall in comparison to the terms of the relevant modern award or enterprise agreement. 1.11.2. IFAs are a central part of the Government’s workplace relations policy. In its Forward with Fairness – Policy Implementation Plan, it was indicated that the ‘aim of the flexibility clause is to enable individual arrangements which are genuinely agreed by the employer and an individual employee.’ Elsewhere the then workplace relations minister, the Hon Julia Gillard stated that IFAs ‘will remove the need for any individual statutory agreements and the associated complexity and bureaucracy attached to those agreements’. Workplace flexibility for the benefit of businesses and employees is also invoked in the objects to the Fair Work Act. 1.11.3. AHA submits that the operation of IFAs must be an integral part of the Fair Work Act review being undertaken from 1 January 2012.

1.11.4. Under modern awards, IFAs are only able to be made in relation to hours of work, overtime rates, penalty rates, allowances and leave loadings. This restriction impedes the making of meaningful flexible arrangements. The AHA submits that IFAs should be able to be made in relation to any aspect of a modern award. As long as such agreements are required to leave an employee better off overall in relation to the modern award it is difficult to see why any restriction on IFA content should exist at all. 1.11.5. In theory, enterprise agreements are able to permit the making of IFAs in relation to any matters pertaining to the employment relationship. The Government has indicated that ‘the terms of [flexibility] clause[s] are best decided at the enterprise level in the bargaining process’. However, in practice, flexibility clauses often unduly restrict the scope of IFAs. 1.11.6. In the experience of the AHA, many members are wary of entering into IFA’s due to a lack of certainty in their standing if challenged and this is reflected in a very limited uptake of IFA’s in the industry. 1.11.7. Unions often oppose the inclusion of broad flexibility terms in enterprise agreements, instead limiting their scope so as to render any meaningful IFA illusory. 1.11.8. Restricting the making of IFAs to such matters obviously provides almost no flexibility to employers as a trade-off for offering higher wages and conditions. Where an enterprise agreement does not contain a flexibility clause, a model flexibility clause is implied, which again appears to restrict the matters which can be varied to hours of work, overtime rates, penalty rates, allowances and leave loadings. The AHA submits that the model flexibility clause should be varied to remove any restriction on IFA content and that it should be made a mandatory term of all enterprise agreements. Recommendation 14 The model flexibility clause should allow IFAs to refer to any matter pertaining to the employment relationship and that it be a mandatory term of an enterprise agreement.

1.12. Other matters relating to IFAs 1.12.1. Other aspects of the IFA regime under the Fair Work Act make them an unattractive and uncertain alternative to modern awards and enterprise agreements. The fact that IFAs can be terminated at 28 days’ notice discourages employers from going to the trouble of making special arrangements for individual employees. The fact that IFAs cannot be made a condition of an offer of employment (without breaching the adverse action provisions of the Fair Work Act) also means that flexibility arrangements are less likely to be negotiated. 1.12.2. The greatest disincentive to making an IFA is the fact that there is no certainty as to whether it in fact leaves an employee better off overall in relation to the modern award or enterprise agreement. IFAs which do not meet that test are not void, but may be terminated by not more than 28 days written notice and expose an employer to breach of the flexibility clause of the modern award or enterprise agreement, which could lead to the imposition of civil penalties under Part 4-1 of the Fair Work Act, or even to an adverse action claim under Part 3-1. However, because there is no external agency via which an employer may verify whether an IFA does leave an employee better off overall, employers are left with significant contingent liabilities about whether they have breached the Fair Work Act. Understandably, this makes employers wary about entering into IFAs. 1.12.3. The AHA submits that there must be an independent approval test conducted by a third party of IFAs. The AHA considers that the FWO would be best placed to provide such a service, which could act as a guarantee that the FWO would not prosecute an employer in relation to a breach of a flexibility term under a modern award or enterprise agreement. Recommendation 15 The FWO provide an independent approval mechanism to determine whether an IFA passes the better off overall test in relation to a modern award or enterprise agreement.

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1.13. Superannuation cost offsets 1.13.1. The terms of the minimum wages objective and the modern awards objective in the Fair Work Act are significantly different to equivalent provisions in the Workplace Relations Act 1996. 1.13.2. In particular, the AHA notes that s134(1) of the Fair Work Act states: FWA must ensure that modern awards, together with the National Employment Standards, provide a fair and relevant minimum safety net of terms and conditions, taking into account: a) relative living standards and the needs of the low paid; and b) the need to encourage collective bargaining; and c) the need to promote social inclusion through increased workforce participation; and d) the need to promote flexible modern work practices and the efficient and productive performance of work; and e) the principle of equal remuneration for work of equal or comparable value; and f) the likely impact of any exercise of modern award powers on business, including on productivity, employment costs and the regulatory burden; and g) the need to ensure a simple, easy to understand, stable and sustainable modern award system for Australia that avoids unnecessary overlap of modern awards; and h) the likely impact of any exercise of modern award powers on employment growth, inflation and the sustainability, performance and competitiveness of the national economy. 1.13.3. As previously stated, the hotel industry is a significant employer, with more than 278,000 persons employed between the pub sector (188,000) and the accommodation sector (90,000) , and an annual wages and salaries contribution of $5.41 billion. In addition there are an estimated 20,000 employees in the casino sector . 1.13.4. The AHA’s members operate highly labour-intensive businesses and as such are significantly impacted by cost increases relating to employment. The Australian Fair Pay

Commission identified that wages amount to 24 per cent of total expenses in the hospitality industry compared to the average across all industries of 15.8 per cent. The average AHA member therefore has relative wage costs that are nearly 52 per cent higher than the average Australian business.

Recommendation 16 The Fair Work Act be amended to provide for costs to be awarded in a way similar to s170CJ of the Workplace Relations Act 1996.

1.13.5. Any increase in modern award wages that does not fully consider the ability of employers to pay will, in the AHA’s opinion, lead to curtailment of employment in the hotel industry.

4.16.1 The public holiday provision under the NES requires amendment to reflect the AIRC’s Public Holidays Test Case on the 1990’s of a set number of public holidays each year.

1.13.6. The AHA believes that the cost of the future increases in superannuation from 9% to 12% by 2019-20 must be fully considered by the Minimum Wage Panel as part of it’s Objective in reviewing Award wages and that to this end greater emphasis must be given to s134(1)(f). Recommendation 16 Section 134(1) of the Fair Work Act be amended to include a new point (i) allowing for a superannuation cost trade off: (i) the likely impact of any increases to the superannuation guarantee that employers must contribute on behalf of its employees.

4.16 National Employment Standards and Public Holidays

4.16.2 The problem occurs where a public holiday falls on the weekend and State Government determines through their State Legislation that an additional day is given to Federally covered employees. For example in Western Australia, the State Public and Bank Holiday Act prescribes an additional day for a public holiday for Federally covered employees but employees working for non constitutional corporations are not given any additional days. 4.16.3 The result of this is that there are additional and substantial costs for businesses who work and operate 7 days of the week as they have to pay two days at public holiday penalty rates for each public holiday.

4.15 Costs recovery 4.15.1 AHA has noted a dramatic increase in unfair dismissal proceedings brought before FWA since the introduction of the Fair Work Act. In one State, matters before FWA have increased from 9 in 2009, to 23 in 2010 and to 30 in 2011. 4.15.2 It is considered by the AHA that claimants bring many of these matters unreasonably, vexatiously and without reasonable grounds of success. 4,15.3 Section 170CJ of the Workplace Relations Act 1996 set down the circumstances whereby costs could be awarded. 4.15.4 The AHA believes that a return to a costs regime would do much to balance and curtail unfair dismissal proceedings brought without unreasonable cause or vexatiously

Recommendation 18 The AHA seeks amendment to the NES to reflect that “where a day is a Public Holiday, and falls on the weekend, only that day can be deemed and paid as public holiday with any additional day or substituted day granted to not be recognised as a public holiday for the purposes of the NES”. 6. Conclusion The AHA has provided a number of recommendations for amending the Fair Work Act 2009. The recommendations are based on the experience of the AHA’s employment relations advisers in its State and Territory offices, and reflect those of its membership.


Modern Awards Review 2012

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art 2 of Schedule 5 to the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 requires Fair Work Australia to conduct a review of all modern awards (including transitional provisions), other than modern enterprise awards and State reference public sector modern awards, as soon as practicable after the second anniversary of the Fair Work (safety net provisions) commencement day. The Fair Work (safety net provisions) commencement day was 1 January 2010. Therefore the tribunal must conduct the review as soon as practicable after 1 January 2012. The following is an overview of the AHA submission in relation to a review of the Hospitality Industry (General) Award 2010: MA000009 – HOSPITAILITY INDUSTRY GENERAL AWARD 2010 A. The following variations are sought by the Australian Hotels Association to the Hospitality Industry General Award 2010 (the “Award”): Variation 1 – Part time 1. The proposed variation seeks to introduce flexible part time arrangements into the award and compensate employees with a 5% allowance for the lack of regularity of hours that would flow from this more flexible arrangement. 2. Prior to the introduction of the Award the majority of part time employees in the industry were free from the restraints of the notion of “regular” part time employment that is embodied in the Award. Indeed, this concept of regular part time employment did not exist in most State awards and was only present in the Federal award namely The Hospitality Industry - Accommodation, Hotels, Resorts and Gaming Award 1998. 3. The existing provisions for regular part time employment is leading to, or resulting in: i. an increase in casualisation in the industry; ii. a reduction in the security of employees; iii. a reduction in the income of part time employees; iv. an increase in the cost of operating hotels and a consequent reduction in profit.

Variation 1 – Part time 4. That clauses 12.2 to 12.8 be deleted and replaced with the following clauses numbered 12.2 to 12.5: 12.2 A part-time employee is an employee who: (a) works more than 15 hours and less than full-time hours of 38 per week; and (b) receives: (i) at least two nominated days off each week, which must be the same days each week; or (ii) the Flexible Part-time Allowance; and (c) receives, on a pro rata basis, equivalent pay and conditions to those of full-time employees who do the same kind of work. 12.3 Arrangements for work (a) At the time of engagement the employer and the part-time employee will agree in writing on the arrangements for work specifying: (i) The guaranteed number of hours (at least 15) the employee will be required to work each week; and (ii) Either: (I) the nominated days each week which will the employee will not be required to work; or (II) that the employee will receive the Flexible Part-time Allowance. (b) The guaranteed number of hours and whether the employee receives nominated days off or the Flexible Part-time Allowance may be varied by agreement. Any agreed variation must be recorded in writing. 12.4 An employee who does not meet the definition of a part-time employee and who is not a full-time employee will be paid as a casual employee in accordance with clause 13 - Casual employment. 12.5 A part-time employee employed under the provisions of this clause must be paid for ordinary hours worked at the rate of 1/38th of the weekly rate prescribed in clause 20 Minimum wages, for the work performed, subject to clause 32-Penalty rates. 5. That a new definition be inserted into clause 3 – Definitions and interpretations, as follows: Flexible Part-time Allowance means an amount equal to 5% of the employee’s minimum weekly wage under clause 20.1, which is paid on a daily basis.

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6. That a new clause 33.2(b) be inserted into clause 33.2 – Entitlement to overtime rates as follows: A part-time employee is paid at overtime rates for any work performed: 1. In excess of the guaranteed number of hours agreed to under clause 12.3(a)(i); or 2. On either of the two nominated days off under clause 12.3(a)(ii)(i). Variation 2 - Breaks 3. The existing award provisions for breaks are overly restrictive and do not meet the needs of employers and employees in the industry. This is particularly evident when: ii. The employee is working a six-hour shift; iii. The workplace is a resort or other hospitality workplace that is spread over a wide space of land, and the employee takes 5 to 10 minutes to get to the tearoom; and iv. The hospitality industry experiences peaks and troughs in workload making it difficult to roster meal breaks effectively. 1. In today’s workplace there is less need for a fixed half hour break after five hours of work than there has been in the past. Many employees have approached members of the AHA seeking to either (a) work through their break when they are working a six-hour shift (so that they can leave work earlier than they otherwise would be able), or (b) delay the break until later in the shift (for personal reasons). Variation 2 - Breaks 2. That clauses 31.1 to 31.7 be deleted and replaced with the following clauses numbered 31.1 to 31.7: 31.1 Every employee shall be granted meal breaks as follows: Length of Shifts

Entitlement to Break

Six hours or less:

No break, unless requested in writing by the employee.

More than six and up to ten hours:

One half hour unpaid meal break.

More than ten hours:

One half hour unpaid meal break, two twenty minute paid breaks.

31.2 The unpaid meal break must be given no earlier than one hour after starting work and no later than six hours after starting work. 31.3 An employee not released for a meal break by six hours after starting work must be paid an extra hourly or part thereof payment at the rate of 50% of the ordinary hourly rate from the end of six hours until either the meal break is given or the shift ends. 31.4 An employee may request in writing an unpaid meal break for a shift of six hours or less. The employer will not unreasonably refuse such a request. This written request will apply for all shifts undertaken by the employee of six hours or less. This arrangement may be reviewed at any time. 31.5 By mutual agreement in writing between the employer and the employee the half hour unpaid meal break may be taken in two fifteen minute unpaid meal breaks. 31.6 An employee required to work more than five continuous hours after being given the unpaid meal break must be given an additional twenty minute paid break. 31.7 An employee required to work more than two hours’ overtime after completion of the employee’s rostered hours must be given an additional twenty minute paid break. Variation 3 – Additional public holidays 7. In addition to the public holidays specified in section 115 of the Act, State and Territory Governments can specify additional days or substitute days as public holidays. 8. Recent changes to State and Territory laws relating to public holidays have seen an increase in additional public holidays across Australia. For example, an additional public holiday may be declared where the public holiday falls on the weekend. In this case, both days must be treated as a public holiday and penalty rates apply to both days. 9. For example, in 2011 and 2012 every State and Territory either has had additional public holidays days or will have additional days. 10. The AHA contends that the application of NES provisions in the award have resulted in skewing the decision of the Full Bench of the Australian Industrial Relations Commission in Re Public Holidays (‘Public Holidays Test Case’) (unreported, AIRC, L4534, Hancock, MacBean SDP and O’Shea C, 4 August 1994) (‘Public Holidays Test Case’). In that case, the Full Bench dealt with applications by various trade unions to vary provisions in awards dealing with public holidays. The principal application was for a minimum of ten public


holidays plus one additional public holiday ‘as a safety net standard for workers covered by federal awards’. The Commission made an order in accordance with the application. In the course of its reasons the Commission said (at 19-20): Although the leave which employees enjoy under the broad characterisation of “public holidays” is a significant benefit and, as such, ought not to be excluded from the “safety net” concept, the safety net standard goes more, we think, to the quantum of leave than to the specification of days. There are, however, some days which have special significance in community mores – a significance which the awards may well reflect. These days are Good Friday, Anzac Day and Christmas Day. Otherwise, the specification of days should be seen as variable over time and between States, Territories and even localities. No arguments have been put to us which justify either an expansion or a contraction in the standards which had developed by the early 1990s. Though there are some variations between States, we think that a prescription of ten days (excluding Easter Saturday) gives reasonable effect to the criterion of minimum change. With that standard in mind, we think that award provisions at this time should normally provide: • that holidays (or payment in lieu) be observed in respect of New Year’s Day, Good Friday, the Monday thereafter, Anzac Day, Christmas Day and Boxing Day; • that holidays (or payment in lieu) be observed also in respect of the days specified in the relevant States and Territories as Australia Day, the Queen’s Birthday and Labour Day; • for an additional holiday (or payment in lieu) which may be a day identified by a governmental prescription (for example, Melbourne Cup Day) or a day otherwise specified (for example, for a union picnic); and • that when a prescribed holiday, other than Anzac Day, falls on a Saturday or Sunday, a substitute day is provided. An effect of the above provisions is that the amount of leave is reduced by one day in those years wherein Anzac Day falls on a Saturday or Sunday. This accords with current practice in most States and, with respect to those States, is accepted by the unions. In some States, the provisions which we have outlined fall below existing “State” standards. The unions propose that the additional leave should be provided in the Commission’s awards. This implies that the States and Territories may add to but not subtract from the safety net leave provisions. Upon consideration we have decided to accede to this proposal,

notwithstanding its inconsistency with the safety net principle. We do so because it is not open to us to prevent a State or Territory from creating “extra” public holidays. Where it does so, the existence of a lesser standard in the Commission’s awards would be a likely source of industrial unrest. We do not, however, accede to the union request that where “extra” public holidays – above the safety net standard - have existed in the past but are eliminated by a State or Territory, their continued observance should be enforced by the Commission. The Commission’s commitment is to the safety net, not the status quo (however defined). In effect, our decision allows for State or Territory autonomy, subject to meeting, as a minimum, the safety net standard. We do not intend our accommodation of State-determined holidays above the safety net standard to be the basis of double-counting, achieved by identifying the additional day in some other manner. For example, we envisage that in Victoria the additional day which is part of the safety net standard will normally be Melbourne Cup Day or a local equivalent. If the additional day is a union picnic day, this will be in lieu of Melbourne Cup Day. (Emphasis added) 11. The declaration of additional days rather than substitute days results in a de facto increase in the number of public holidays established by the Public Holidays Test Case and has a profound affect on the cost of operating a hotel. As can be seen by the (above) underlined excerpt from the Public Holidays Test Case decision, it clearly was not the Full Bench’s intention that additional days be provided for, or countenanced in the test case. 12. This matter can be addressed by ensuring that the award takes account of recent practices in the declaration of additional public holidays. 13. The AHA will present evidence from members on the impact of additional days. This evidence will deal with, amongst other things: i. Operating hours; ii. Hours of employment; iii. Operating costs; and iv. Security of employment. Variation 3 – Additional public holidays 1. That clause 32.1 be renumbered to clause 32.1(a) and a new clause 32.1(b) be inserted as follows:

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32.1(b) Where two public holidays for Australia Day, ANZAC Day, Christmas Day, Boxing Day or New Years Day are provided for in the NES, only one of the public holidays for each of Christmas Day, Boxing Day or New Years Day shall be paid in accordance with clause 32.1(a). The other public holiday will be recognized as a public holiday for the purposes of the NES and the Award and all work performed on that public holiday shall be paid at an employee’s ordinary hourly rate. The day on which the public holiday shall be paid at the rate prescribed in clause 32.1(a) shall be agreed to by the employer and the majority of employees. In the absence of agreement, the following days shall be paid for at the rates of pay prescribed in clause 32.1(a): • Australia Day – 26 January • ANZAC Day – 25 April • Christmas Day – 25 December • Boxing Day – 26 December • New Years Day – 1 January Variation 4 – Multi hiring 2. The purpose of the proposed variation is to make provision for employees to voluntarily undertake additional cross-functional work in order that the employee may supplement their remuneration. 3. There has been a long-standing arrangement in the hospitality industry for employees to undertake additional work in jobs other than their primary job. Often this additional work was undertaken on a lesser pay scale (i.e., at a lower classification level) and without benefit of overtime payments. 4. This arrangement benefited employees, as they were able to work additional hours that would otherwise have gone to a casual employee. Variation 4 – Multi hiring 5. That a new clause be inserted as clause 34 (numbered 34.1 to 34.8 as follows) and consequent renumbering be applied to the remaining clauses in the award: 34. Multi hiring 34.1 Full time employees may request the opportunity to undertake additional cross functional work for the employer in order to supplement an employee’s remuneration. 34.2 Employees working under this provision will be engaged and paid as a casual per additional employment contract

34.3 Such additional cross functional work will be only offered to permanent full time employees outside of: (a) The work areas assigned to them by their existing rosters; (b) Their usual classification (according to Section D – classification definitions); and (c) Their regular rostered hours. 34.4 The hours worked in accordance with this provision shall not count as service for the purpose of annual leave or personal leave accruals and leave accrued in an employee’s permanent position will be paid at the rate applicable to that position. 34.5 Work performed under this clause will be at the option of the employee at all times. 34.6 Work performed under this clause shall be paid at the appropriate level for the work performed and shall be paid at the applicable rate. 34.7 Any full time employee will be restricted to working no more than two shifts totalling 10 hours per week under this clause. 34.8 The employee will request in writing to the employer that they shall be paid and engaged as a casual worker. Variation 5 – Penalty rates 6. Consultation with members in relation to the review of the Award has raised the issue of the level of penalty rates. We are also aware that Fair Work Australia is also proposing to do some research work in this area and we would be keen to peruse any completed reports in due course. 7. It is our current intention bring a penalty rates application before Fair Work Australia but not within this 2012 modern award review process as we would prefer this to be dealt with as a single issue. However if Fair Work Australia does undertake a thorough examination of this issue in the 2012 modern award process, then the AHA reserves the right to intervene in such a hearing in the interests of employers responding to the Hospitality Industry (General) Award 2010. 8. We anticipate that any future application in relation to penalty rates would be made after consultation with United Voice who have not been consulted on this matter, to date. At the time of going to print we were awaiting hearing dates in respect of this variation application.


Hospitality Industry General Award 2010 The Application and Understanding of the Hospitality Industry General Award 2010 (HIGA) (MA000009)

T

he HIGA commenced on 1 January 2010 and must be read in conjunction with the National Employment Standards (NES). It replaces all former State and Federal hospitality awards: The Hospitality Industry (General) Award 2010 (HIGA) applies throughout Australia to employers engaged in the hospitality industry. This includes: Hotels

Private hotels

Resorts

Motor inns

Guest houses

Casinos, Function areas and Convention centres

Motels

Wine saloons

Serviced apartments

Wine bars/taverns

Ski lodges

Liquor booths

Hostels

The current edition of the HIGA was published on 4 October 2011 and a copy of this award can be downloaded from the AHA Branch Offices websites.

Managerial & Professional Employees Employees whose salary is more than $118,000 per annum (indexed on 1 July each year) are not covered by the HIGA or any Modern Award but are still covered by the National Employment Standards (NES).

NATIONAL EMPLOYMENT STANDARDS (NES): The National Employment Standards (“NES”) form part of the HIGA and are referred to throughout the HIGA. The NES took effect on 1 January 2010 as the new minimum conditions and is enshrined in the new fair work legislation. The NES replaces the Australian Fair Pay and Conditions Standard. The ten NES are: 1. Maximum Hours of Work – 38 ordinary hours per week for full time employees, plus reasonable additional hours. 2. Flexible Working Arrangements – The ability for an employee with parental or guardian responsibilities to request a change to working arrangements to assist with the care of the child. The child must: a. Be under school age; or b. Be a child who is under 18 years of age with a disability. 3. Parental Leave – The entitlement to 12 months unpaid parental leave entitlements, plus an additional 12 months to extend leave to 24 months, with the consent of the employer. Paid parental leave is outside of the HIGA and the NES. 4. Annual Leave – Four weeks per annum for full time employees and pro rata for part time employees. Potential for an additional one week’s annual leave for a shift worker whose employment meets the shift worker definition. 5. Personal / Carer’s Leave (including Compassionate Leave) – Two weeks per annum for full time employees and pro rata for part time employees. Compassionate leave is payable to full time and part time employees on the basis of two days per occasion and is not taken from accumulated personal leave. 6. Community Service Leave – Unpaid leave to undertake eligible community service such as jury service or voluntary emergency

management activities. Community service leave is unpaid except for jury service where the employer pays the employee for time spent on jury service less monies paid to the employee by the courts for the employee’s jury service attendance. 7. Long Service Leave – This entitlement will reflect state and territory entitlements subject to any alternate long service leave entitlements that may be derived from a workplace agreement. . 8. Public Holidays – Public holidays that are set out in the NES including additional public holidays that are declared under respective state/territory public holiday legislation. 9. Notice of Termination and Redundancy Pay – Requirements for the giving of notice by an employer and for severance payments in the case of a position being made redundant. 10. Fair Work Information Statement – A requirement for employers to provide all new employees with this Statement. Please note there is substantially more detail to each of the above NES points. Where they relate to a term in the HIGA that is noted in this overview, some, but not all, detail is provided at that section. Several of the NES are not included in the HIGA. This includes the NES numbered 2, 3, 7 and 10 above. The NES represents minimum conditions, therefore, where the HIGA is silent on the NES listed above, the NES will still apply as legislated minimum conditions for all employees, whether they are covered by an Award or otherwise. Note: HIGA Clauses 5 and 6 refer to the application of the NES and state that a copy of the HIGA and the NES must be conveniently accessible to employees within the workplace. A copy of the National Employment Standards may be downloaded from the AHA Branch Offices websites.

HIGA CONTENT: The main (but not all) provisions of the HIGA are detailed, in alphabetical order, in this section of this overview. They include: 1. Accommodation and Meals (Clause 39) When an employer provides their employees with accommodation, meals, or both, the award allows an employer to deduct an amount of money from the employee’s wages in accordance with the award clause. Deductions for adult employees are: Service provided

Deduction per week (as at 01Jul 2011) (adjusted 1 July annually)

Single room and 3 meals a day

$171.55

Shared room and 3 meals a day

$167.26

Single room only, no meals

$162.97

Shared room only, no meals

$158.68

A meal

$6.86

2. Annual Leave (Clause 34) The annual leave entitlement in the HIGA is in accordance with the NES. It provides 4 weeks of paid annual leave per year for permanent employees.

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The Award provides the following additional annual leave arrangements: a. Permanent employees who are shiftworkers receive 5 weeks paid annual leave per year. A shiftworker is defined as “a seven day shiftworker who is regularly rostered to work on Sundays and public holidays in a business in which shifts are continuously rostered 24 hours a day for seven hours a shift”. b. An annual leave loading of 17.5% is payable on all annual leave taken. c. An employer may require an employee to take an amount (as determined by the employer) of annual leave by giving at least four weeks notice in the following circumstances: i. To take annual leave as part of a close-down of its operations; or ii. To take annual leave where more than eight weeks leave has been accrued by the employee. d. Annual leave accumulates from year to year and unused annual leave is paid out upon termination e. Annual leave cannot be cashed out for employees under HIGA Casual employees do not accrue paid annual leave.

The agreement must: • Be in writing; • Name the parties to the agreement; • Be signed by the employer and the individual employee and, if the employee is under 18 years of age, the employee’s parent or guardian; • State each term of the HIGA that the employer and the individual employee have agreed to vary; • Detail how the application of each term has been varied by the agreement between the employer and the individual employee; • Detail how the agreement does not disadvantage the individual employee in relation to the individual employee’s terms and conditions of employment; and • State the date the agreement commences to operate. A copy of an agreement is to be provided to the employee, with a copy kept as part of the employee record. The agreement may be terminated on 4 weeks notice. This is a new provision for hospitality employers and was not contained in former hospitality Awards and NAPSAs.

3. Annualised Salary (Clause 27) This provision applies to non-managerial staff. A manager is defined in Schedule D.2.9 of the HIGA. An employee may be paid an annual salary that represents at least 25% above their classification rate. This is an annualised salary arrangement. The arrangement must be agreed to between the employer and the employee and must not provide any disadvantage to the employee (i.e. having regard to normal work patterns). Payment of a salary means: • Clauses 32 (Penalty Rates) and 33 (Overtime) do not apply. • An annualised salary employee is entitled to 8 days off per 4 week cycle. • Where an annualised salary employee works on a public holiday, they are entitled to a day off in lieu or a day added to their annual leave entitlement. The employer must keep daily records of working hours with this to be countersigned weekly by the employee. Those records must be kept for a period of 6 years.

5. Breaks (Clause 31) Unpaid breaks of no less than 30 minutes are provided for in the HIGA. The HIGA provides: • No employee (including a casual) can work for 5 or more hours without an unpaid meal break of at least 30 minutes. The break must be given no earlier than one hour after commencing work and no less than five and a half hours after commencing work • Where the break is rostered to be taken more than 5 hours after starting work the employee must receive a 20 minute paid break • Where the break is not taken as rostered, a 50% penalty on the employee’s ordinary rate applies until the break is taken or the shift ends • If the break is not rostered and no break is provided, the employer must pay a 50% penalty on the employee’s ordinary rate from the end of 6 working hours to end of the shift or until the break is taken • If employee is required to work more than 2 hours overtime an additional 20 minute paid break must be provided.

4. Award Flexibility Clause (Clause 7) The HIGA has the AIRC’s model ‘award flexibility’ clause allowing for the employer and employee to agree, in writing, to individual arrangements covering: • Work arrangements; • Overtime rates; • Penalty rates; • Allowances; and • Leave loading. The clause represents an opportunity for employers and employees to reach more flexible, practical and specific arrangements for their workplace.

6. Casual Conversion (Clause 13.4) The HIGA provides that a casual who has worked regular and systematic hours for a period of at least 12 months may elect to have their employment converted to permanent employment. An employer can refuse the request for permanent employment on “reasonable grounds” which may be determined having regard to: • The size and needs of the workplace or enterprise • The nature of the work the employee has been doing • The qualifications, skills, and training of the employee • The trading patterns of the workplace or enterprise • The employee’s personal circumstances, including any family responsibilities; and • Any other relevant matter. Once a casual employee has converted to permanent employment, they may only revert back to casual employment with the written


The Application and Understanding of the Hospitality Industry General Award 2010 (HIGA) (MA000009)

agreement of the employer. The casual conversion clause does not oblige a casual employee to convert to permanent employment, nor does it require an employer to agree to it (i.e. having regard to the dot points above). 7. Community Service Leave (Clause 36) The HIGA refers to the NES for this entitlement – the concept of Community Service Leave is new. Community Service Leave includes jury service where the employer pays the employee for time spent on jury service less monies paid to the employee by the courts for the employee’s jury service attendance. Community Service Leave also includes other voluntary emergency management activities which is unpaid leave. 8. Consultation Over Changes (Clause 8) The HIGA outlines a requirement to consult if the employer is introducing ‘major change’ that may have ‘significant effects’. In such cases the employer must notify and consult with the affected employee/s and their representative (if any). 9. Dispute Resolution (Clause 9) The HIGA’s dispute resolution procedure requires parties to attempt to resolve disputes at the workplace in the first instance. If not resolved, a party may refer the dispute to Fair Work Australia (“FWA”). Where the dispute is unresolved FWA may “exercise any method of dispute resolution permitted by the Act”. This includes: • Mediation, • Providing recommendations or opinions, and, • Conciliation, • Where the parties agree, arbitration. A party to the dispute may appoint someone to represent them during the dispute resolution process. 10. Employment Types (Clause 10) On commencement, the employer must inform the employee of their employment status as either a full time, part time or casual employee: a. Full time employee The Award provides the following with regard to full time employees i. They are “engaged to work an average of 38 ordinary hours per week (Clause 11)” ii. Hours of work are a minimum of 6 hours and a maximum of 11.5 hours per day (exclusive of meal breaks) (Clause 29.4 (a)) iii. They cannot be rostered for more than 10 hours on 3 consecutive days without a 48 hour break (Clause 29.4 (b)) iv. They cannot work more than 8 days of 10 hours in a 4 week period (Clause 29.4 (c)) v. They must have a break of 10 hours between working days (Clause 29.11) vi. Where subject to a rostered day off (“RDO”) arrangement 160 hours per 4 week period with a minimum of 8 days off plus a paid RDO. If a RDO falls on a public holiday the next day is taken to be the RDO. (Clause 29.5) b. Part time employee (Clause 12) The Award provides the following with regard to part time employees -

i. They work less than 38 hours a week and have “reasonably predictable” hours of work ii. On engagement the employer needs to agree, in writing, with the employee on a regular pattern of work (i.e. hours worked each day, days of work and starting and finishing times) iii. Any changes to hours must be agreed to in writing iv. They are to be rostered for / paid a minimum shift of 3 hours including work on weekends and public holidays v. All time worked in excess of contracted hours are to be paid as overtime. An employee who does not meet the part time employee definition, and who is not a full time employee, is a casual employee. c. Casual employee (Clause 13) The HIGA provides the following with regard to casual employees i. A casual employee must be paid a 25% casual loading. The casual loading is paid as compensation for annual leave, personal/carers leave, notice or termination and redundancy benefits and other entitlements of full time and part time employment. ii. A casual employee is paid an additional loading for working after 7pm Monday to Friday and for working on Saturdays, Sundays and Public Holidays (refer clause 32 of the Award). iii. Each occasion a casual attends work they are to be paid for a minimum of 2 hours work, including work on weekends and public holidays. iv. A casual must be paid at the end of each engagement (shift) unless otherwise agreed to. 11. Make Up Time (Clause 29.9) An employer and employee may agree that an employee may take time off during their normal duties and make up those hours of work later. The employer may also agree with the majority of employees to enter into formal make up time arrangements for the workplace. This is subject to certain conditions, as specified in the HIGA. 12. Higher Duties (Clause 25) The HIGA provides that an employee engaged for two or more hours on one day on duties carrying a higher rate than their ordinary classification must be paid the higher rate for such day. If rostered for less than two hours the employee must be paid the higher rate for the time so worked. This clause does not apply to food and beverage attendants grade 2 and 3 as defined in Schedule D – Classification Definitions. 13. Overtime (Clause 33) In accordance with the HIGA, an employer may require a permanent employee to work “reasonable” overtime at overtime rates. An employee may refuse to work the additional hours if that would result in the employee working unreasonable hours. When determining if the requested additional hours are unreasonable, the employer and employee should have regard to a. Any risk to the employee’s health and safety b. The employee’s personal circumstances including any family

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responsibilities c. The needs of the workplace or enterprise d. The notice (if any) given by the employer of the overtime and by the employee of their intention to refuse it; and e. Any other relevant matter. The following overtime rates are payable to an employee, depending on the time at which the overtime is worked: • For full time employees – for work done outside of hours set out in the Ordinary Hours of Work clause. • For part time employees – for work done outside of hours set in accordance with the Part Time Employees clause. Overtime does not apply to casual employees. Overtime rates paid to permanent employees are: • Monday to Friday: 150% of their ordinary hourly rate for the first two hours of overtime and 200% of their normal rate of pay for the rest of the overtime. • Between midnight Friday and midnight Sunday: 200% of their ordinary hourly rate for any work done. • On a rostered day off: 200% of their ordinary hourly rate for any work done with a minimum payment of four hours (even if they work less than four hours). • Overtime worked on any day stands alone. 14. Payment of Wages (Clause 26) • Wages will be paid weekly or fortnightly by cash, cheque or EFT. 15. Personal/Carer’s Leave and Compassionate Leave (Clause 35) • This leave is accrued and paid in accordance with the NES which provides for two weeks personal leave per annum for full time employees and pro rata for part time employees. Personal leave accumulates from year to year and is not paid out upon termination. • Personal leave cannot be cashed out for employees under the HIGA • Compassionate leave is payable to full time and part time employees on the basis of two days per occasion and is not taken from accumulated personal leave. Casual employees do not accrue personal leave 16. Public Holidays (Clause 37) Public holiday arrangements in the HIGA refer back to that provided for in the NES. The NES recognises the following gazetted public holidays: • 1 January, New Years Day • 26 January, Australia Day • Good Friday • Easter Monday • 25 April ANZAC Day • Queen’s Birthday Holiday (as the day gazetted in the relevant state public holiday legislation) • 25 December, Christmas Day • 26 December, Boxing Day Plus any other day that is declared under state or territory public holiday

legislation as a public holiday, except where the Regulation excludes a day as a public holiday The NES addresses employer requests of employees to work on a public holiday – it is taken that an employee is entitled to a day free from work on a public holiday – and the circumstances where an employee may refuse to work on a public holiday because the request was unreasonable. The HIGA provides, in addition to the provisions of the NES, that: a. By agreement between the employer and the majority of employees in the relevant enterprise or section of the enterprise, an alternative day may be taken as the public holiday in lieu of a prescribed public holiday. b. For full time employees whose rostered day off falls on a public holiday they must either: i. Be paid an extra days pay; or ii. Be provided with an alternative day off within 28 days; or iii. Receive an additional day of annual leave. A rostered day off means any continuous 24 hour period between the completion of the last ordinary shift and the commencement of the next ordinary shift on which an employee is rostered for duty. 17. Redundancy (Clause 17) With regard to redundancy, the Award refers back to the provisions of the NES for redundancy pay requirements, and the circumstances where the employee is entitled to such payment. Those circumstances are that the: • Termination was by the employer because the employer no longer requires the job done by the employee to be done by anyone, except where this is due to the ordinary and customary turnover of labour, or • Termination was by the employer because of the insolvency or bankruptcy of the employer. In summary, the main elements of the redundancy provision in the NES are: a. Exemptions: i. Employers with fewer than 15 employees do not have to pay severance, and ii. Employees with less than 12 months continuous service (regardless of the size of the employer) are not entitled to severance pay. b. Severance – the amount payable is based on length of service: Employee’s period of continuous service with the employer on termination

Redundancy Pay

At least 1 year but less than 2 years

4 weeks

At least 2 years but less than 3 years

6 weeks

At least 3 years but less than 4 years

7 weeks

At least 4 years but less than 5 years

8 weeks

At least 5 years but less than 6 years

10 weeks

At least 6 years but less than 7 years

11 weeks

At least 7 years but less than 8 years

13 weeks

At least 8 years but less than 9 years

14 weeks

At least 9 years but less than 10 years

16 weeks

At least 10 years

12 weeks


The Application and Understanding of the Hospitality Industry General Award 2010 (HIGA) (MA000009)

The HIGA provides detail on the following additional redundancy elements: • Transfer to lower paid duties arrangements. • The employee leaving during the notice period (notice as per the termination provision in the NES). • The employee’s entitlements with regard to job search. • Transitional provisions. The transitional provisions in the HIGA provide that where a NAPSA that applied prior to the operation of the HIGA provided a more beneficial severance payment, the more beneficial severance payments in that NAPSA will prevail until 31 December 2014. From 2015, all severance payments are in accordance with the NES. 18. Rostering (Clause 30) The HIGA provides: • The roster for full time and part time employees must show the start and finish times and name of each employee. • A roster may be altered by mutual consent, or by 7 days notice. • Employees are to be provided 14 days notice of rostered days off where practicable. 19. Superannuation (Clause 28) This clause is as per the relevant superannuation legislation with a number of funds listed as possible default funds – in the absence of the employee utilising their right to choose a fund. The HIGA recommended superannuation funds are: a. HOST-PLUS: b. Sunsuper: c. InTrust Super; d. HostWest Superannuation Fund; e. Westscheme Superannuation Fund; f. Asset Limited: or g. any superannuation fund to which the employer was making superannuation contributions for the benefit of its employees before 12 September 2008, provided the superannuation fund is an eligible choice fund. The HIGA provides that: •Voluntary employee contributions are available when authorised by an employee • The superannuation threshold for employer contributions is $350.00 a month • Employees are entitled to superannuation whilst on paid leave or receiving workers’ compensation payments (while still employed). 20. Termination (Clause 16) Notice Given by Employer: The notice of termination an employer is required to give to an employee is provided for in the NES, and is notice based on length of service. The notice an employer must give an employee is:

Period of Continuous Service

Period of Notice

Not more than 1 year

1 week

More than 1 year but not more than 3 years

2 weeks

More than 3 years but not more than 5 years

3 weeks

More than 5 years

4 weeks

In addition to the notice above, employees 45 years old or over and who have completed at least 2 years continuous service with the employer shall be entitled to an additional weeks’ notice. The NES also provides that an employer cannot terminate an employee’s employment unless they have given the employee written notice of the day of the termination (i.e. the day the termination of employment has effect). The notice cannot be given after the termination date. This requirement represents a new obligation on employers, and employers must comply with it. Notice Given by Employee: The NES does not provide for employee notice requirements and defers to the HIGA for notice requirements. The HIGA provides that the notice an employee gives is the same as the notice an employer must give, except for the additional weeks’ notice based on the employee’s age. In addition, the HIGA provides that where an employee fails to give the required notice, the employer may withhold from any monies due to the employee on termination an amount not exceeding the amount the employee would have been paid under the HIGA if they had worked the period of notice required, less any period of notice actually given by the employee. Where an employer has given notice of termination to an employee, an employee must be allowed up to one day time off without loss of pay for the purpose of seeking other employment. The time off is to be taken at times that are convenient to the employee after consultation with the employer.

WAGE RATES, CLASSIFICATIONS AND ROLES The HIGA wage rates and classification structure as at the first full pay period on or after 1 July 2011 (revised 1 July annually). These rates are subject to transitional arrangements, where applicable. Classification

Minimum Weekly

Hourly

Introductory

$589.30

$15.51

Level 1

$606.40

$15.96

Level 2

$629.70

$16.57

Level 3

$651.30

$17.14

Level 4 (Trade)

$686.20

$18.06

Level 5

$729.30

$19.19

Level 6

$748.80

$19.71

Note: Detailed wage rates are provided to AHA members through their state/ territory branch offices.

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Hospitality Industry General Award 2010 The Application and Understanding of the Hospitality Industry General Award 2010 (HIGA) (MA000009)

These wage rates are reviewed by Fair Work Australia annually with any annual increase applicable from the first full pay period commencing on or after 1 July each year. Junior rates of pay are applicable as a percentage of the relevant adult rate – see clause 20.5 of HIGA and also the transitional arrangements. Managerial employees (as defined in clause D.2.9 of Schedule D of HIGA), have two minimum annual salary rates as per clause 20.2 of HIGA. A hotel manager or venue manager is award free and outside of the scope of HIGA. Apprentice cook rates are set out in clause 20.4 of HIGA whilst trainees are provided for under the provisions of HIGA and Schedule F of HIGA, the National Training Wage. Employee respective classification definitions can be found in Schedule D of HIGA

ALLOWANCES Allowances provided for in the HIGA are: • Meal allowance – where working more than 2 hours of overtime • Clothing, equipment and tools • Uniform/Laundry allowance – catering employees, including airport catering employees • Laundry allowance – motel employees • Vehicle allowance • Working late – provision of transport in certain circumstances • Working early – provision of transport in certain circumstances • Working away from usual place of work allowance – where more than 80kms • Travel allowance – airport catering employees • Forklift allowance • First Aid allowance • Broken periods of work allowance • Overnight stay allowance

STATE SPECIFIC REQUIREMENTS: Arrangements particular to Western Australia: Refer to AHA Branch Office websites Schedule C of the HIGA and the transitional arrangements as applicable to Western Australia. Schedule C – Transitional Provisions in respect of Western Australia In addition to the Model Transitional Provisions as set out by Schedule A of the HIGA Western Australian hospitality businesses have additional transitional provisions. This relate to: • Junior employees Whilst Clause 15.1 of the HIGA states that junior liquor service employees must be paid adult rates of pay, junior liquor service employees working in Western Australia are not entitled to adult rates of pay until they are 20 years of age. • Breaks Every employee will be entitled to a break of not less than half hour

nor more than one hour after not more than five hours of work. Where it is not possible for an employer to grant a meal break, the employee must be paid a 50% loading until such time as the employee is released for a meal. Arrangements particular to South Australia: Refer to AHA Branch Office websites for Schedule B of the HIGA and the comprehensive transitional arrangements. Arrangements particular to Queensland Refer to AHA Branch Office websites for specific arrangements as applicable to Queensland. Due to many NAPSAs applying within both South East Queensland and outside of the South East Queensland area, transitional arrangements as per Schedule A of the HIGA will apply. The most significant differences that will represent transitional conditions are Saturday and Sunday penalties and overtime. Whilst this document provides an overview of the HIGA, hoteliers are strongly encouraged to carefully read the HIGA themselves in order to identify the application of the HIGA on their individual businesses. A copy of the HIGA and the NES can be downloaded from the AHA Branch Offices websites. AHA Members are encouraged to contact their AHA Branch Office for further information in relation to the understanding of the HIGA and for current wage rates and employment arrangements. This information is intended to provide an overview of the main elements of the Hospitality Industry (General) Award 2010 and the National Employment Standards. The information provided is for general information purposes only and does not constitute legal advice. Legal Disclaimer The Australian Hotels Association through its Branch offices is committed to providing useful, reliable information assist members understand your rights and obligations under workplace laws. The information contained in this publication is: • general in nature and may not deal with all aspects of the law that are relevant to your specific situation; and • not legal advice. Therefore, you may wish to seek independent professional advice to ensure all the factors relevant to your circumstances have been properly considered. This information was published on 20 December 2011. The AHA does not accept legal liability arising from or connected to the accuracy, reliability, currency or completeness of this information. Whilst due care has been taken in preparing this overview, no responsibility is accepted by the AHA National Office, the respective AHA state/territory branch offices or employees officers or contractors of the AHA and its branch offices for the accuracy of the information therein contained. All liability is expressly disclaimed for any damage which may arise from any person acting on any statement or information contained herein.


Suppliers Directory

Ainsworth Game Technology Ltd www.ainsworth.com.au sales@ainsworth.com.au 02 9739 8000 ACT Contact Person: Darcy Nelson P: 0439 038 724 E: darcy.nelson@ainsworth.com.au NSW Contact Person: Don Moseley P: 0418 606 640 E: don.mosely@ainsworth.com.au NT / TAS / WA Contact Person: Keith Jeffery P: 0419 161 554 E: keith.jeffery@ainsworth.com.au QLD Contact Person: Glen Coleman (South) / Lew Platz (North) P: 07 3209 6210 E: glen.coleman@ainsworth.com.au/ lew.platz@ainsworth.com.au SA Contact Person: Toni Odgers P: 0402 927 833 E: toni.odgers@ainsworth.com.au VIC Contact Person: Wayne Flood P: 0419 551 454 E: wayne.flood@ainsworth.com.au

Australian Liquor Marketers www.almliquor.com.au rosie.jedvaj@almliquor.com.au 02 9741 3000 ACT Contact Person: Danny Lalliard – Branch Manager P: 02 6239 4290 E: danny.lalliard@almliquor.com.au NSW Contact Person: Paul Williams – General Manager P: 02 9741 7222 E: paul.williams@almliquor.com.au NT Contact Person: Ian Grazioli – Territory Manager P: 08 8922 5300 E: ian.grazioli@almliquor.com.au QLD Contact Person: Brad Williams – General Manager P: 07 3489 3600 E: brad.williams@almliquor.com.au

SA Contact Person: Paul Tisato – State Manager P: 08 8953 0266 E: paul.tisato@almliquor.com.au TAS Contact Person: Adam Rasmussen – State Manager P: 03 6274 4000 E: adam.rasmussen@almliquor.com.au VIC Contact Person: Paul Everard – General Manager P: 03 8368 6300 E: paul.everard@almliquor.com.au WA Contact Person: Colin Irwin – General Manager P: 08 9455 9000 E: colin.irwin@almliquor.com.au

Aon Risk Services Australia Limited www.aon.com.au/hotels au.hotels@aon.com 02 9253 7000 ACT Contact Person: Rob Smith P: 02 6257 5745 E: rob.smith@aon.com NSW Contact Person: Stuart Duggan P: 02 8623 4050 E: stuart.duggan@aon.com NT Contact Person: Bill Warburton P: 08 8981 9400 E: bill.warburton@aon.com QLD Contact Person: Daniel Sayers P: 07 3223 7512 E: daniel.sayers@aon.com SA Contact Person: Sean McCormack P: 08 8301 1123 E: sean.mccormack@aon.com TAS Contact Person: Tim Johns P: 03 6270 0418 E: tim.johns@aon.com VIC Contact Person: Nick Oldridge P: 03 9211 3307 E: nick.oldridge@aon.com WA Contact Person: Ross McGovern P: 08 6317 4064 E: ross.mcgovern@aon.com

Australasian Performing Right Association (APRA) www.apra-amcos.com.au licence@apra.com.au 1300 852 388 ACT / NSW Contact Person: Robert Rakuscek P: 02 9935 7774 E: rakuscek@apra.com.au NT Contact Person: Gary Burrows P: 08 8239 2222 E: gburrows@apra.com.au QLD Contact Person: Mark O’Neill P: 07 3257 1007 E: moneill@apra.com.au SA Contact Person: Gary Burrows P: 08 8239 2222 E: gburrows@apra.com.au TAS / VIC Contact Person: Jason Ireland P: 03 9426 5216 Email: jireland@apra.com.au WA Contact Person: Jose Horn P: 08 9382 8299 E: jhorn@apra.com.au

Aristocrat Technologies www.aristocrat.com.au Corporate Headquarters Pinnacle Office Park A: 85 Epping Road North Ryde NSW P: 02 9013 6000 E: info@ali.com.au ACT Address: Unit 1/22 Wormald Street North Symonston ACT P: 02 6126 3800 E: info@ali.com.au QLD 60-62 Commercial Drive Shailer Park QLD P: 07 3801 4444 / 1800 802 248 E: info@ali.com.au SA Suite 3, 16-18 Unley Road Unley SA Phone: 08 8273 9900 E: info@ali.com.au

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Suppliers Directory VIC 672 Lorimer St Port Melbourne VIC P: 03 9644 1000 E: info@ali.com.au

AUSTAR for Business www.austar.com.au/afb austarforbusiness@austar.com.au 1300 720 630 NSW – South East Contact Person: Shane Connolly P: 07 5560 6440 E: SConnolly@Austar.com.au NSW – North East Contact Person: Craig Madden-Reimer P: 02 6582 2152 E: CReimerMadden@Austar.com.au Inland NSW & QLD Contact Person: Ben Ryan Phone: 07 5560 6406 E: Bryan@Austar.com.au NT / SA Contact Person: Tim Frost P: 07 5560 6838 E: TFrost@Austar.com.au QLD – South East Contact Person: Tyson Falzon P: 07 5560 6417 E: TFalzone@Austar.com.au QLD - East Contact Person: Damien Douglas P: 07 5560 6417 E: ddouglas@Austar.com.au QLD - North Contact Person: Paul Huggett P: 07 5560 6548 E: phuggett@austar.com.au TAS / VIC Contact Person: Anthony Vardon P: 07 5560 6837 E: AVardon@Austar.com.au

British American Tobacco www.bata.com.au 1800 044 831 NATIONAL David Clarke On Premise Operations Manager P: 02 9370 2475 M: 04 77641 624 E: david_clarke@bat.com NSW Kylie Evans On Premise Manager, NSW P: 02 9370 1036

M: 0437 042 258 E: kylie_evans@bat.com QLD Brian Brix On Premise Manager, QLD P: 02 9370 1500 M: 0419 711 373 E: brian_brix@bat.com VIC Scott Thomas On Premise Manager, VIC P: 03 8544 3076 M: 0418 485 186 E: Scott_thomas@bat.com

TAS / VIC Contact Person: Allan O’Connell P: (03) 9245 1900 E: Allan.OConnell@premiumbeverages.com.au WA Contact Person: Nick Bartram P: 08 9418 3988 E: Nick.Bartram@premiumbeverages.com.au

Club Tourism (trading as AAA Tourism) aaatourism.com.au Australia’s All New info@aaatourism.com.au STAR Rating Scheme 03 8601 2200 Australia’s official accommodation accreditation program has been relaunched following an extensive review. The Scheme has been developed with broad industry consultation and is underpinned by robust consumer research, which defined a clear mandate to assess ‘quality’ and have an increased focus on cleanliness:

Coca-Cola Amatil www.ccamatil.com AUS_ContactUs@ccamatil.com 132 653 ACT / TAS / VIC Contact Person: Ian Mountain P: 0400 340 672 E: ian.mountain@ccamatil.com NSW Contact Person: Barrie Gibson P: 0410 044 355 E: barrie.gibson@ccamatil.com NT / SA / WA Contact Person: Robert Priest P: 0418 840 736 E: Robert.priest@ccamatil.com QLD Contact Person: Peter Davis P: 0417 593 044 E: peter.davis@ccamatil.com

Coopers Brewery www.coopers.com.au coopers@coopers.com.au 08 8440 1800 ACT / NSW Contact Person: Graham McDonald P: 02 9647 2666 E: Graham.McDonald@premiumbeverages.com.au NT / SA Contact Person: Leanne Fraser P: 0413 945 910 E: leannef@coopers.com.au QLD Contact Person: Heath Grosvenor P: (07) 3275 3732 E: Heath.Grosvenor@premiumbeverages.com.au

z 94% of travellers rate cleanliness as the most important aspect of a STAR Rating z 90% of travellers want STAR Ratings to measure quality

Carlton United Breweries www.cub.com.au ACT Contact Person: Sean Hugg P: 0409 577 090 For more information about Australia’s new official STAR Rating Scheme E: sean.hugg@cub.com.au please visit starratings.com.au NSW Contact Person: Allan Brassil P: 0418 490 744 E: allan.brassil@cub.com.au NT Contact Person: Lincoln Jenkin P: 0418 569 701 E: Lincoln.jenkin@cub.com.au QLD Contact Person: Julie Stenhouse P: 07 3212 0311 E: Julie.stenhouse@cub.com.au SA Contact Person: Mark Haysman P: 08 8416 7828 E: mark.haysman@cub.com.au TAS Contact Person: Dom Bury P: 03 6221 8369 E: dominic.bury@cub.com.au VIC Contact Person: David Clancey P: 03 9420 6470 E: david.clancey@cub.com.au WA Contact Person: Dean Turner P: 0418 352 842 E: dean.turner@cub.com.au

Research also confirmed STAR Ratings are the third most influential source of accommodation information, behind property images and family/friend recommendations.

Key outcomes:

z New quality-based assessment model replacing facilities-based system

z Consolidation of categories from ten to six: Hotel, Motel, Serviced Apartments, Self Catering, Hosted Accommodation, Caravan-Holiday Parks. z Australian Government recognition via partnership with T-QUAL Accreditation z Moratorium policy to give industry time to familiarise itself with the Scheme

AAAT_StarRatings_NewSchemeAd_v3.indd 2

Customers ATM www.customersatm.com.au sales@customersatm.com.au 1300 305 600

19/12/11 3:35 PM


ACT / NSW Contact Person: Larry Warren P: 0421 754 161 E: lwarren@customersatm.com.au NT Contact Person: Michael Blackburn P: 0407 767 060 E: mblackburn@customersatm.com.au QLD Contact Person: David Quinert P: 0418 518 589 E: dquinert@customersatm.com.au SA Contact Person: Justin Carter P: 0478 304 977 E: jcarter@customersatm.com.au TAS / VIC Contact Person: John Bakker P: 0418 500 237 E: jbakker@customersatm.com.au WA Contact Person: Mike Ardon P: 0466 775 402 E: mardon@customersatm.com.au

Diageo Australia www.diageo.com Sales enquiries: 1800 066 931 NSW P: 02 9126 7000 A: 162 Blues Point Road, McMahons Point NSW 2060 NT P: 08 8245 9300 A: Unit 2 / 18 Totem Rd Coconut Grove Darwin, NT 0810 QLD P: 07 3257 0800 A: No12, 19 James Street Fortitude Valley QLD 4006 SA P: 08 8245 9300 A: 2/2-4 Adam Street Hindmarsh SA 5007 VIC P: 03 9947 7100 A: Level 2, 16 Palmer Parade Rosella Complex, Cremorne VIC 3121 WA P: 08 9285 4400 441 Stirling Highway Claremont, WA 6010

Distilled Spirits Industry Council of Australia Inc (DSiCA) www.dsica.com.au info@dsica.com.au 03 9696 4466

FOX SPORTS Venues www.foxsportsvenues.com.au info@foxsports.com.au 1300 301 415 NATIONAL Contact Person: Greg Bohlsen P: 02 9776 2670 E: Greg.Bohlsen@foxsports.com.au NSW North Contact Person: Phillip Nakkan P: 02 9776 2759 E: Phillip.Nakkan@foxsports.com.au South NSW & ACT Contact Person: Shane Borg P: 02 9776 6308 E: Shayne.Borg@foxsports.com.au QLD Contact Person: Brian Madden P: 0403 061 412 E: Brian.Madden@foxsports.com.au VIC Contact Person: Michael Pellegrino P: 03 8671 6990 E: Michael.Pellegrino@foxsports.com.au WA Contact Person: Sandra Dangen P: 08 9386 9523 E: Sandra.Dangen@Foxsports.com.au SA Contact Person: Michaela Habel P: 0400 600 840 E: Michaela.Habel@foxsports.com.au

HOSTPLUS www.hostplus.com.au info@mail.hostplus.com.au 1300 HOSTPLUS (1300 467 875) ACT Contact Person: Paul Castillo P: 02 6243 5183 E: pcastillo@mail.hostplus.com.au NSW Contact Person: Chris McManamon P: 02 8202 8700 E: cmcmanamon@mail.hostplus.com.au

NT Contact Person: Jane Sheridan P: 08 8943 0621 E: jsheridan@mail.hostplus.com.au QLD Contact Person: Darren Barton P: 07 3225 9500 E: dbarton@mail.hostplus.com.au SA Contact Person: Scott Measday P: 08 8205 4965 E: smeasday@mail.hostplus.com.au TAS Contact Person: Mike Glidden P: 03 6224 2922 E: mglidden@mail.hostplus.com.au VIC Contact Person: Andrew Smith P: 03 8636 7777 E: asmith@mail.hostplus.com.au WA Contact Person: Matt Trotman P: 08 9260 4678 E: mtrotman@mail.hostplus.com.au

IGT www.igt.com.au contact@igt.com.au 02 8345 3000 ACT Contact Person: Stephen Keir P: 0418 464 062 E: Stephen.keir@igt.com NSW Contact Person: Andrew Neagle P: 0417 469 969 E: Andrew.neagle@igt.com NT Contact Person: Bill Maglaris P: 0411 283 265 E: bill.maglaris@igt.com QLD Contact Person: Howard White P: 0418 193 650 E: howard.white@igt.com SA Contact Person: Bill Maglaris P: 0411 283 265 E: bill.maglaris@igt.com TAS / VIC / WA Contact Person: Theo Toklis P: 0434 476 964 E: theo.toklis@igt.com

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Suppliers Directory

LION www.lionco.com Contact Person: Doug May P: 02 9647 9576 E: doug.may@lionco.com

ME Bank www.mebank.com.au ACT Contact Person: Neil Skipper P: 02 6272 0706 E: Neil.Skipper@mebank.com.au NSW Contact Person: Tony Kamenos P: 02 8296 0319 E: Tony.Kamenos@mebank.com.au Newcastle Contact Person: Ben Howey P: 02 4965 8314 E: Ben.Howey@mebank.com.au NT Contact Person: Rae Graham P: 08 8942 0845 E: Rae.Graham@mebank.com.au QLD Contact Person: Peter Jones P: 07 3223 4169 E: PJones@mebank.com.au SA Contact Person: Peter Barry P: 08 8414 4050 E: Peter.barry@mebank.com.au TAS Contact Person: Joanne Fenton P: 03 6220 8907 E: Joanne.Fenton@mebank.com.au VIC Contact Person: Goran Hemstrom P: 9708 3218 E: Goran.Hemstrom@mebank.com.au WA Contact Person: Scott Bell P: 0407 485 579 E: scott.bell@mebank.com.au

Schweppes Australia www.schweppes.com.au 1800 244 054 ACT / NSW Contact Person: Fred Jones P: 0428 122 510 E: fred.jones@schweppes.com.au

NT Contact Person: Darren White P: 0422 007 405 E: darren.white@schweppes.com.au QLD Contact Person: Jamie Kennedy P: 0437 437 476 E: jamie.kennedy@schweppes.com.au SA Contact Person: Darren White P: 0422 007 405 E: darren.white@schweppes.com.au TAS / VIC Contact Person: Ben Koetsier P: 0437 437 542 E: ben.koetsier@Schweppes.com.au WA Contact Person: Mike Evans P: 0433 139 468 E: mike.evans@schweppes.com.au

Shuffle Master Australasia www.shufflemaster.com marketing.au@shufflemaster.com 1-800-SHUFFLE ACT Contact Person: Phil Middleton P: 1-800-SHUFFLE E: sales.au@shufflemaster.com NSW Contact Person: Ray Brown P: 0417 234 001 E: raybrown@shufflemaster.com NT Contact Person: Sean Smith P: 0425 300 353 E: seansmith@shufflemaster.com QLD Contact Person: Kerry Cowan P: 0425 300 346 E:kerrycowan@shufflemaster.com SA / VIC Contact Person: Craig Allardice P: 0408 997 131 E: craigallardice@shufflemaster.com TAS Contact Person: Craig Cheers P: 0425 374 442 E: craigcheers@shufflemaster.com

TABCORP www.tabcorp.com.au www.skyracing.com.au infocent@tabcorp.com.au 03 9868 2100

ACT / NT / SA / TAS / WA Contact Person: Jamie Carson P: 02 9218 1755 E: carsonja@tabcorp.com.au NSW Contact Person: Paul Carew P: 02 9218 1365 E: carewp@tabcorp.com.au QLD Contact Person: Brian Laws P: 07 3243 4113 E: lawsb@tabcorp.com.au VIC Contact Person: Dean Clarke P: 03 9868 2212 E: clarked@tabcorp.com.au

Treasury Wines Estates A: 77 Southbank Boulevard Southbank VIC 3006 GPO Box 753 Melbourne VIC 3001 P: 03 96858000 W: www.tweglobal.com E: orders@tweglobal.com Orders phone: 134 893 VIC A: 4-6 Southampton Crescent Abbotsford VIC 3067 P: 03 9420 6000 NSW A: Level 8, 5 Rider Boulevard Rhodes NSW 2138 P: 02 9217 1799 QLD A: 76 Doggett Street Newstead QLD 4006 P: 07 3666 4400 SA A: 78 Penfold Road Magill SA 5072 P: 08 8301 5400 WA A: 67 Howe Street Osborne Park WA 6017 P: 08 9202 6856 NT A: 14 Winnellie Road Winnellie NT 0820 P: 08 8984 1926 TAS A: 131 Cascade Road South Hobart TAS 7004 P: 03 6221 8300


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AHA Yearbook 2012  

The AHA is the principal body representing most of Australia’s 6,000 hotels, which in turn collectively represent an industry with an annual...