3 minute read
CEO’s Message
by Boylen
MTA CEO, PAUL UNERKOV
As we approach the halfway point of 2021, it’s worth noting a number of major advocacy wins achieved.
FRANCHISING REFORM
Nationally, we have been advocating for more than a year to finally secure a commitment from the Federal Government to reform the power imbalance between vehicle dealers and manufacturers in the wake of GM Holden’s decision to withdraw from the Australian market, as well as moves towards agency models from brands such as Honda and Mercedes.
With our members front of mind, we took opportunities to highlight their situation through a number of written submissions and media opportunities.
The changes will see increased penalties of $10 million, up from $66,000, for car manufacturers found guilty of systemic misconduct, making current voluntary principles compulsory obligations, and ensuring ‘agent’ type agreements are covered by franchising and competition regulations, providing increased protections for Australian car retailing businesses and their thousands of employees.
Other changes include significant improvements to disclosure, coverage, adequacy of terms to secure a return on investment, as well as dispute resolution, and compensation requirements.
We recently saw further improvements to car dealer franchising; notably that manufacturers (as franchisors) are now to specify how they will buy back or provide compensation on new vehicle inventory, parts and special tools in the event of early termination or non-renewal of the agreement.
The launch of the new dealer regulatory reform guide – a collaboration between MTA SA/NT, our national body the Motor Trades Association of Australia (MTAA), other state industry associations and FCW Lawyers – breaks down the amendment into digestible sections, providing useful tools for identifying unfair contract terms, negotiating collective bargaining agreements, dispute resolution tactics and much more.
The guide has been written specifically for dealers and dealer councils. Notably, it provides a roadmap for how dealers and dealer councils can use various reforms to effectively and efficiently improve their bargaining position.
Our next steps will be to monitor the implementation of these reforms and continue working with the wider ‘motor vehicle’ dealer community, such as trucks, motorcycles, tractors, farm and construction machinery – wherever an imbalance of power may exist.
There was a further big announcement from the Australian Competition and Consumer Commission (ACCC) who recently declared small businesses, franchisees and fuel retailers can use class exemption for collective bargaining without first having to seek ACCC approval or having to worry about a possible competition law breach. The class exemption covers new-car dealers under the Franchising Code of Conduct, fuel retailers under the Oil Code of Conduct, as well as businesses and independent contractors across the automotive industry.
RIGHT TO REPAIR
We also welcomed the passing of the Competition and Consumer Amendment (Motor Vehicle Service and Repair Information Sharing Scheme) Bill 2021 in Federal Parliament recently.
The Bill strikes a balance between independent repairers and vehicle dealers who have made significant financial investments into automotive brands, where essentially the ultimate winner will be the consumer who is now afforded greater choice in where they choose to repair or service their vehicle. We thank MTAA CEO, Richard Dudley for his tireless work over the past decade advocating solutions in regards to critical motor vehicle service and repair information.
FUTURE GENERATION
On the training front, I would like to introduce MTA members to Alana Sparrow who has been appointed General Manager, Automotive Skills Development and Victoria Griffith who is now Head of Automotive Training.
Every learner’s experience is important and we want to inspire, invigorate and grow the current and future generations of automotive specialists so our industry can thrive. We are well aware of the current skill shortages in the Northern Territory workforce and the MTA will explore all opportunities of expanding our apprenticeship and training offering to Territorians in the future.
