Business Pulse - June 2016 by Chamber of Commerce and Industry - Western Australia

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NEW YEAR, NEW OPPORTUNITIES, NEW BP For many companies, business-to-business advertising is an effective way to reach customers and CCI offers value-for-money options to promote your products and services to its large subscriber base of WA businesses. BP Magazine reaches more than 20,000 readers every month who are business people working a large and small organisations in every industry sector. Contact CCI to find out how advertising in BP can help your business. Tel: (08) 9365 7544 Email: advertising@cciwa.com 2 B US I NE S S P U L S E J UN E 20 1 6

CONTENTS A NOTE FROM THE EDITOR CARRIE COX

JUNE 2016

IN THIS EDITION

03 05 06 08 10 12 22 23 24 26 28 32 34 35 36 37 38 39 40

CEO message

Business Pulse Editor Message from CCI’s Director of Policy n informal chat two months ago with the head of our Employee Relations Advice Centre set in train this special edition of Business Pulse – a comprehensive and confronting investigation into the scope and seriousness of ice in WA workplaces. She mentioned her team had been receiving increasingly more calls from business owners dealing with apparent ice use and abuse in their workplaces, often in industry sectors not traditionally associated with meth and ice use. Employers are suitably worried – ice is a game-changer on the drug landscape and throws up entirely new safety concerns. This is not a party drug. It is, in the words of Justice Minister Michael Keenan writing exclusively for our magazine, a “mind-eating, personality-distorting, life-ending drug” destroying families and livelihoods. We’ve spoken to former ice addicts who almost lost their businesses, a high-performing addict who manages to evade testing, the doctor running one of WA’s busiest rehab facilities, a toxicologist and drug tester, and many others in this space. Importantly, this edition includes helpful, timely advice for employers who are dealing with this situation now or who will, more than likely, do so in future. We’d love to get your feedback on this special edition and also hear about your business’s own experiences. Please email editor@cciwa.com

The Guide In brief Our Federal Election wishlist Special investigation: Ice in the workplace Mike Nahan discusses his tough decisions E-commerce: marketing to the world Successful succession planning The rise and rise of Wild Bakery Feature: End of financial year essentials Q&A: Ask the experts Bullying – what to do after a claim How to win the claim game Safety systems: how to get it right

It’s your business to register.

Mental health check How to smoke out a bad habit Winners are grinners Five business buzzwords

Published monthly by Chamber of Commerce and Industry of Western Australia (Inc) 180 Hay Street, East Perth WA 6004 T (08) 9365 7555 F (08) 9365 7550 E info@cciwa.com www.cciwa.com President Agu Kantsler

If you employ workers in the construction industry you may be required by law to register in the Construction Industry Long Service Leave Scheme. Find out by visiting www.myleave.wa.gov.au or by calling 08 9476 5400.

Editor Carrie Cox (08) 9365 7459 editor@cciwa.com

Chief Executive Officer Deidre Willmott Graphic Designer Katie Addison (08) 9365 7518 katie.addison@cciwa.com

Advertising sales Paula Connell (08) 9365 7544 advertising@cciwa.com

Disclaimer: This information is current at 1 June 2016. CCI has taken all reasonable care in preparing this information, however, it is provided as a guide only. You should seek specific advice from a CCI adviser before acting. CCI does not accept liability for any claim which may arise from any person acting or refraining from acting on this information. Reproduction of any CCI material is not permitted without written authorisation from the General Manager, Corporate Affairs. © Copyright CCI. All rights reserved.

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Perth | Dubai | Singapore

S I R WA LT E R M U R D O C H S C H O O L O F

Public Policy and International Affairs 2 B US I NE S S P U L S E J UN E 20 1 6

TAKING UP ARMS AGAINST ICE A MESSAGE FROM THE CHIEF EXECUTIVE OFFICER

e’ve all heard about ice, but we’re now seeing a new frontline in the epidemic – the Australian workplace. CCI’s Employee Relations Advice Centre has seen a five-fold increase in calls since 2012 from employers who need help dealing with drug abuse – particularly ice – within their workforce. In light of these heightened concerns, CCI decided to conduct a special investigation into how methamphetamine has infiltrated WA businesses and undermines safety, productivity and staff engagement.

the many companies and industries who don’t do testing – and probably should. Across the country, more than 270,000 Australians currently use methamphetamine (ice is meth in its purest form) and 81 per cent of this group – or at least 220,000 people – are employed. For this edition, CCI spoke with employers, users, doctors, government and industry to paint a holistic picture of how ice is impacting businesses and the wider community. Our Members tell us that to fight this new battle, business needs meaningful industrial

ACROSS THE COUNTRY, MORE THAN 270,000 AUSTRALIANS CURRENTLY USE METHAMPHETAMINE Based on figures provided to us by SafeWork Australia – which drug-tests workers in the industries of agriculture, mining, manufacturing, utilities, construction and transport – on any given day around 7000 workers turn up to WA workplaces either under the influence of ice or suffering its ‘hangover’ effects, which can range in severity from lethargy, irritability and poor concentration to unpredictable outbursts and aggression. That figure doesn’t take into account

relations reform that will allow employers to effectively protect their staff and organisation from the significant threats posed by ice abuse. Reforms should empower employers to conduct workplace drug tests and remove workers for serious drug-use breaches. Unfortunately, current unfair dismissal laws place a disproportionate emphasis on procedural requirements, which stops employers terminating employees

even where there is a valid reason. The Fair Work Act must also be amended to recognise the obligation employees have to their employer and their co-workers. At present, there is a common view that what an employee does outside of work is their own business, but this is simply not the case when drug use impacts the ability of the employee to perform their duties and threatens the safety and integrity of the workplace. The WA Government has recognised the critical role the State has to play in fighting the epidemic. As he handed down the 2016-17 State Budget, Treasurer Mike Nahan noted that 3.8 per cent of the WA population aged over 14 use methamphetamines – this is significantly higher than the national average of 2.1 per cent. One of the budget’s key announcements was a new $15 million Methamphetamine Strategy that will support specialised medical and community services combating ice in metropolitan and regional WA. Drug abuse is a complex social issue that workplace laws alone cannot address, so it’s paramount the problem continues to be tackled at its source within the community, to ensure our workplaces and employees can be protected. In addition to the new anti-ice measures, the State Budget also set forth a measured economic plan to regain the AAA credit

rating and broaden the WA economy. Despite significant budget challenges – and a whopping forecast deficit of nearly $4 billion – we are pleased the Government has not lost sight of the economic big picture. In addition to expenditure reductions and greater efficiencies in the public sector, the budget proposal to privatise Western Power and sell Horizon Power’s poles and wires in the Pilbara will wipe significant debt off the budget balance sheet, reduce interest payments and reassure the market that WA has the budget under control. CCI believes this budget listened to the voice of the business community – you, our Members – and went beyond budget repair to support the success of growth industries that will enrich WA’s economy for successive generations. New funding initiatives to boost the tourism, agriculture, innovation, aquaculture and defence and shipbuilding industries are important to drive new opportunities, allow businesses to grow and create jobs and ultimately build a broad, agile economy for the future. ¢

Deidre Willmott Chief Executive Officer

TO GET INVOLVED: cciwa.com @CCI_CEO

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BUDGET IS GOOD NEWS FOR BUSINESS CCI DIRECTOR OF POLICY, DALE LEGGETT

he State Budget delivered by Treasurer Mike Nahan was widely panned by the mainstream media, but many of the brickbats were cheap shots, displaying a shallow understanding of the unenviable task Nahan had before him. I certainly wouldn’t have traded places with the good doctor on having to put this budget together. With very little wriggle room available to him in terms of expenditure, and with our share of the GST at its record lowest, the Treasurer did what he had to do – deliver a careful budget with enough levers to encourage a measure of business optimism and fresh growth potential for industries long neglected.

THE BUDGET ADOPTS A THREE-PRONGED PLAN – ALL ITEMS CALLED FOR IN CCI’S PRE-BUDGET SUBMISSION In saying all that, the Government must certainly accept much of the blame – GST notwithstanding – for the highly unattractive bottom line underpinning the state’s finances. Did we put too many eggs in the resources basket for too long? Yes. Did we leave industry diversification in the too-hard basket for too long? Absolutely. Did we lose the AAA credit rating? You betcha. But does this budget

go some way to steering the ship back in the right direction? I would argue it does. In terms of tax announcements, the Government has rightly chosen not to introduce any new imposts on a business community that is already struggling with cost challenges. The payroll tax-free threshold has been increased from $800,000 to $850,000 from 1 July – a decision that should benefit around 11,000 businesses. This was something the Government had pledged in the 2013-14 budget and they’ve stayed the course. In other good news for business, the budget found $600,000 to be spent from 2016-17 to 2018-19 to identify and implement reforms that reduce regulatory barriers and remove red tape in priority areas of the economy. This is in addition to the $1.1 million allocated to the Department of Finance for the same purpose. Importantly, the budget adopts a three-pronged plan for 201617 centred on broadening the economy, creating jobs and regaining the AAA credit rating – all items called for in CCI’s pre-budget submission. While it was obviously vital the Government got spending under control and reduced overall debt, CCI has consistently stressed the Government could not ignore the bigger picture – the future of the state’s economy. The policies underpin new funding initiatives for tourism, agriculture, innovation, aquaculture and defence and shipbuilding will help businesses embrace new opportunities and

create more jobs, and ultimately build a diverse and agile future for WA. The formal announcement to progress with the sale of Western Power is also big news for business. CCI has long been calling for the Government to put the asset into private hands and help regain the state’s AAA credit rating. While this won’t happen overnight, and the projected $16 billion might be a tad ambitious, it is nevertheless a step in the right direction. And in one of the most promising signs that the State Government is really listening to business, Nahan acknowledged that land tax had become a significant issue for the sector and he intends to address it in the near future. The business community must be vigilant in not letting him forget this pledge. On the downside, Health Department spending remains a concern – a red flag we’ve been waving for some time. An extra $266 million will be spent on public hospital services in 2016-17 alone, with a projected $1.1 billion to be spent across the next four years – an increase of 12.8 per cent. And total health spend already accounts for 32 per cent of the state’s budget. WA frankly can’t afford that and I firmly believe major efficiencies and cost reductions could be achieved in this sector without compromising the health and wellbeing of WA residents. There simply needs to be a resolve to apply some private-sector thinking to getting health spending under control. ¢ JU NE 2 016 BUSIN E SS PU L SE 5

JUNE 2016

THE GUIDE 1. Is gender

DIARY NOTE:

diversity good for business?

CCI Economic and Innovation Breakfast

19 APRIL 2016 Having a woman in a CEO position is not enough to improve female progression in the workplace, according to Peterson Institute for International Economics Executive Vice-President Marcus Noland. Mr Noland told an audience of 100 businesspeople that the presence of women on corporate boards and in senior executive positions is critical to progress on the gender diversity front. Panel members – both male and female, including CCI CEO Deidre Willmott – spoke about the barriers women face on their paths to leadership and how to overcome them. Topics included young women self-selecting out of studying subjects like maths or science, which are essential to leadership roles, and the impact of maternity leave on career progression. Panel members discussed the unconscious bias in workplaces that affects women who return from parental leave on a part-time basis – they may be viewed as less available and therefore may not get promotions. ¢

9 JUNE 2016

1 DIARY NOTE:

CCI Resource and Construction Conference

GET THE GUIDE IN YOUR INBOX CCI’s The Guide email hits your inbox every Monday morning at 9am, giving you a look ahead at the important events, courses and dates to help you do business better. For more information, go to cciwa.com/the-guide

Department of Industry, Innovation and Science Chief Economist Mark Cully will share his insights into how WA businesses can capitalise on opportunities and set out a blueprint for economic and innovation growth beyond the resources boom at the CCI Innovation and Economic Breakfast. Go to cciwa.com/events/whatson ¢

23 JUNE 2016

Inpex, Civmec Brookfield Multiplex and Woodside will share their project updates at this year’s conference at Crown Perth. Unearthed Director Justin Strharsky will also reveal how companies can develop a competitive advantage through open innovation, and pitch expert Hamish McKenzie will share his insights about competitive pitching in a challenging market. More than 200 resource and construction industry representatives will attend the conference, which leads into the stand-out event on the industry social calendar – the Construction Industry Dinner. Go to cciwa.com/events/whatson ¢

To register your interest in receiving more information about any of our 2016 events, please email functions@cciwa.com 6 B US I NE S S P U L S E J U N E 20 1 6

JUNE 2016

2. REPS

DIARY NOTE:

Sundowner

CCI Member Open Night

11 MAY 2016 A strong crowd of nearly 200 people – most of them industry representatives from the resources, construction and infrastructure sectors – enjoyed CCI’s hospitality at the first REPS Sundowner for 2016. Alongside the nibbles and networking, guests were treated to a polished speech by Lendlease Regional Director Andrew Schroth. After updating the giant contractor’s projects in WA, including the Waterbank and Alkimos property developments, Schroth delivered a well-received message: despite the resources downturn, it is not all bad news for contractors. “The focus is going to shift to under-invested cities throughout Australia and that applies to Perth as well,” Schroth said. ¢

27 JULY 2016

CCI invites Members to take advantage of unlimited access to our industry experts and networks with like-minded business professionals at this free CCI event – all while enjoying some delicious canapés and drinks. A number of CCI’s professional services will be showcased and friendly staff will be available to discuss all your business needs. Go to cciwa.com/events/whatson ¢

3. State Budget Breakfast 13 MAY 2016 WA Treasurer Mike Nahan showed no signs of postbudget fatigue at the CCI-The West Australian State Budget Breakfast on Friday, 13 May. A mere 15 hours after delivering his budget, Dr Nahan entertained a record crowd of 800 people at Perth Convention Exhibition Centre with insightful and often amusing observations about the onerous task he’d had before him this year. With very little fiscal room to move, Nahan said he believed he’d delivered a budget that provided the state with a long-term vision, capitalising on the “green shoots” in the economy. CCI CEO Deidre Willmott said the budget was a “sensible” one and hailed the breakfast a great success. Thanks to event sponsors – EY, Perth Airport and RAC ¢

WHAT’S ON THIS MONTH 21 JUNE Internationally renowned pitch specialist Hamish McKenzie will host the Women in Pitching event at CCI to explain the challenges facing women in pitching and winning business – and how to overcome them.

23 JUNE Held at Crown Perth, the CCI Construction Industry Dinner is WA’s largest and most prestigious annual corporate dinner event for the resources, construction and infrastructure sectors. JU NE 2 016 BUSIN E SS PU L SE 7

IN BRIEF

A DAY IN THE LIFE...

MARIA FERREIRA, CO-OWNER, E-SENSE CAFÉ

ortuguese chicken Tuesdays have a cultfollowing at East Perth’s E-Sense Cafe and owner Maria Ferreira says it’s because her team listen to their customers and give them what they want. “If you make them happy, they’ll keep coming back, but if you send them away unhappy they won’t return,” Ferreira says. “Look after the ones who look after you.” Ferreira and her husband bought E-Sense Cafe in December 2013 – they previously had a panel shop in Bayswater for 20 years but, in Ferreira’s words, they got bored. Ferreira runs a tight ship. She and her staff – two of her eight employees are her daughters – start work at 6am and serve hundreds of customers before

they shut their doors at 3.30pm. All food – sandwiches, salads and everything in between – is prepared daily. Ferreira’s day, like many business owners, doesn’t stop when the doors shut. She and her husband buy fresh vegetables, bread and meat before and after hours every day to ensure they have the freshest produce to serve their customers. Ferreira then goes home to balance the books and do the paperwork. Burning the midnight oil is what she has always done – she likes to be busy – but her daughters wish she’d take a break. “My girls tell me to slow down, but I like to be on the go all the time,” Ferreira says. “That’s probably why we felt we had to get back to work after a year off.”

It was at the end of 2011 that the couple decided it was time for a break. They shut the doors of Exclusive Panel and Paint, sold up and went back to their roots in Europe for four months. After returning to Perth to put the finishing touches on their new home in Dianella, the crickets started to chirp. The couple initially looked for a small corner lunch bar, but E-Sense in East Perth presented itself and after three months of “stalking” the business, they signed the deed. “We wanted a challenge and we definitely got it,” Ferreira says. “The long hours are very stressful and we’re not going to become millionaires out of this – we do make a living – but we’re not here for the money we’re here because we enjoy it.” ¢

CHANGES TO FBT From 1 April this year, businesses have been able to provide employees with multiple work-related portable electronic devices – mainly for use in their employment – without having to pay fringe benefits tax (FBT). For example, you can now give your employee both a laptop and a tablet and not pay FBT on either item – previously you would have had to pay FBT on both. Devices can include laptops, tablets, calculators, GPS navigation receivers and mobile phones. If you bought devices for employees before 1 April, no problem – you’re still eligible for the exemption as long as you provide them to your employees on or after 1 April 2016.

COMPANIES SHOULD RECOGNISE JOB TITLES ARE POWERFUL SYMBOLS OF WHO WE ARE London Business School professor Dan Cable on creative job titles – like ‘Director of First Impressions’ – as a tool for boosting engagement. 8 B US I NE S S P U L S E J U N E 20 1 6

LESSONS LEARNT Brian Kelly Senior Regional Executive Asia-Pacific, SNC-Lavalin

Growing up I learnt … it’s best to be honest, truthful and sincere. From my parents I learnt … to respect everyone around you. In life and business, you can learn from everyone. The most valuable lesson I learnt in school … focus on learning, not just passing exams. A focus on learning sets you up to be a better learner later in life. Also if you don’t understand something, just ask and persevere until you do! This year I’ve learnt … to manage the context before the content. Working in a global company you have to understand your stakeholders’ and colleagues’ context before you can have a meaningful discussion. Sometimes the little things matter – like when I go to business meetings in Montreal in February, everyone is wearing snowshoes. I learnt an unexpected lesson … in my first half Ironman triathlon race. I had not prepared myself nutritionally and was extremely dehydrated at the end of the race. So I am now a stickler for nutrition and hydration before and during races. The unexpected lessons were that sometimes great preparation can be undone by one small thing and also you have to look after your health when you are under pressure. One lesson I wish I had learnt earlier … is that hard work sometimes does not mean effective work. Spend your time wisely. A small but crucial lesson to learn is … in a team environment, it’s important to celebrate the small victories to create momentum. Once the momentum is established, anything is possible.

IN BRIEF

THE STORY: KIDS KNOW BEST Ignore the polls – your children know who’ll win the federal election

“VOTERS SEEM TO BE HEAVILY INFLUENCED BY A CANDIDATE’S APPEARANCE – THE PERSONALITY TRAITS A POLITICIAN’S FACE PROJECTS.” Christopher Olivola, Scientific American

1100

The number of people arrested in China in one month for operating an Uber – aka “civil disobedience”.

TBA

YOU ARE THE HR MANAGER HOW WOULD YOU HANDLE THIS SCENARIO?

Your employees aren’t happy about a management decision and all call in sick on the same day with the ‘flu’. What do you do?

9th

Australia’s ranking within the 2016 World Happiness Report, which takes into account economics, psychology, health and public policy. Denmark ranked #1.

hildren’s opinions are often overlooked when it comes to life’s big decisions, but we ignore them at our peril. If a study published in Scientific American magazine is on the money, we could be saving hundreds of thousands of dollars each year on pre-election polls by simply leaving the choice to children. The Swiss study showed kids as young as five can predict the winner of a parliamentary election simply by choosing the photo of the candidate they’d most like to “captain their boat through rough seas”. We at CCI were inspired to put the question to our own children and those of friends. We showed them the official photos of Malcolm Turnbull and Bill Shorten and awaited their instinctive verdicts. The winner? Malcolm Turnbull with 62 per cent of the votes. “Malcolm looks older and like he just knows more about boats,” one eight-year-old naval-gazer commented. ¢

mployees have the right to take legitimate sick leave, so it’s important not to make assumptions. In order for sick leave to be legitimate, employees must comply with your leave policy. Have your employees notified the correct person, such as their supervisor, that they are sick? Have they provided evidence as required by your policy, such as a medical certificate? If you have reasonable concerns over the legitimacy of the sick leave, there are options available. You should discuss the concern with the employee and seek their response. You may contact their doctor to seek confirmation of their appointment and the certificate’s

validity. You can’t discipline an employee for being sick, but you may discipline them for policy breaches or fraudulent medical certificates. It’s vital you have evidence supporting this conclusion. Checking in with employees when they return to work and consistently enforcing your leave policy are ways you can show sick leave is taken seriously. Simple steps like this can discourage employees from taking a ‘sickie’, whilst still enabling others to take time off when they are legitimately suffering from the flu. For more information, contact CCI’s Employee Relations consulting team on (08) 9365 7730 or email erconsulting@cciwa.com ¢ JU NE 2 016 BUSIN E SS PU L SE 9

FEDERAL ELECTION

THE WISHLIST

The Federal Election on July 2 is a critical event for the future of Australia. Hereâ&#x20AC;&#x2122;s what CCIWA is calling for â&#x20AC;Ś

ver the past decade Australia has fallen from 10 to 21 on the Global Competiveness Index, with our biggest weaknesses being innovation, tax and workplace relations. This means less investment, fewer jobs and missed opportunities. Whichever party becomes the government after this election can take practical steps to improve Australiaâ&#x20AC;&#x2122;s global competitiveness, energise business and inspire international investment. On 2 July the WA Chamber of Commerce and Industry is asking all parties to commit to these 10 steps so Australia can become a top 10 country within 10 years:

1. Give young people a chance to succeed by making it easier for employers to take on apprentices and trainees.

3. Help industries grow through workplace regulation that better responds to their needs. The Fair Work Act has 950 sections and 208,000 words, while there are 122 different modern awards. Reforms are needed to ensure awards are pro-employment, do not exist as a barrier to the efficient structuring of working arrangements and set out standards appropriate to the industries and occupations they cover.

4. Let entrepreneurs get on with growing their businesses by reducing government red tape.

Four years ago there were 516,000 people undertaking apprenticeships and traineeships, but that number has fallen to just 295,000. Australia needs a government willing to commit to the long-term future of young people by improving the business case for employers to take on apprentices and trainees.

Rather than red tape, businesses should encounter blue-ribbon service when they deal with government. In recent years the government has set a target of reducing red tape compliance costs by $1 billion each year. This target should continue and beyond this, proposed regulation must be subject to a rigorous regulatory impact statement so that the true costs and benefits can be assessed.

2. Ensure government spending is sustainable by reducing it to less than 25 per cent of GDP.

5. Create jobs by allowing employers and employees to negotiate workplace arrangements.

Government spending is growing faster than national income, so revenue can only keep up if governments continually raise taxes. If we do not ensure that this spending is targeted at people who really need it, then vital social programs will be put at risk. A credible plan will involve greater public sector efficiency, tightened eligibility for government programs and greater competition in the provision of government services.

The workplace relations system should create an environment where wages and conditions are set by workplace agreements that can be negotiated collectively or individually, with or without a union. The expansion of bargaining options to reflect this reality will make businesses more competitive within Australian and export markets, allowing all parties to share in the benefits of a growing business.

1 0 B US I NE S S P U L S E J U N E 20 1 6

FEDERAL ELECTION

6. Boost incomes by cutting the company tax rate to 25 per cent within 10 years through annual reductions. Right now, Australia has one of the highest company tax rates of all developed countries at 30 per cent (28.5 per cent for small businesses). Cutting company tax to 25 per cent over a decade will leave Australia near the middle of the current international rates. This approach will deliver an up-front boost to the Australian economy because investment decisions are forward-looking.

7. Build the transport, communications and energy facilities we need by backing the independent plan of Infrastructure Australia. As our population approaches an estimated 30 million people by 2031, we are at risk of having our cities overwhelmed with congestion. The independent body, Infrastructure Australia, has produced a plan for improving infrastructure planning and governance. This plan should be enacted by the government to ensure Australiaâ&#x20AC;&#x2122;s future needs are met by closing the infrastructure gap.

8. Lower building costs by bringing back the Australian Building and Construction Commission. Bringing back the ABCC, and making sure it has the power to impose strong civil penalties for illegal behaviour, will help to restore integrity to the sector. And once it is in place, government needs to give it resources and support to get on with the job.

9. Encourage innovation and value for money by facilitating greater competition in government-funded education, health and aged care services. We know that competition is great for consumers by putting downward pressure on costs and encouraging innovation among suppliers. But for too long many important government services, including education, health and aged care, have been shielded from competition. This means that they are less responsive to the needs of consumers and often cost taxpayers more than they should. Government services in education, health and aged care can be provided more efficiently and effectively by giving consumers more choice in how they are delivered. Outcomes are often better when human services are delivered by a quality mix of providers, whether they are private sector, not-for-profits or government business enterprises.

10. Welcome more international visitors by making visas cheaper and easier to obtain. Australia is an unnecessarily expensive place for international visitors. We must speed up the introduction of e-lodgement of visas for visitors from China, India and Indonesia, with applications available in the languages of those countries. The cost of long-term multiple entry visas ought to be internationally competitive and the process streamlined for skilled-worker visas in sections of our economy that are struggling to find labour. Â˘

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ICE LAND: A CCI SPECIAL INVESTIGATION

BUSINESS’S NEW BATTLEFRONT EXCLUSIVE

BUSINESS HELPLINE CALLS INCREASE FIVE-FOLD

FORTESCUE BOSS CALLS

Crystal meth – or ‘ice’ – has infiltrated the WA workplace. And businesses are fighting back CARRIE COX

ustralia’s ice epidemic has turned up for work – and WA employers are looking for answers. Enquiries about drugs – particularly ice – to CCI WA’s business helpline have increased five-fold since 2012, with employers desperate to know the best way forward for substance testing and workplace safety. CCI CEO Deidre Willmott says the number of calls has spiked this year – a trend she attributes

THE SCOURGE OF ICE MUST NOW BE TACKLED IN OUR OFFICES AS WELL AS IN OUR HOMES AND IN OUR COMMUNITIES 1 2 B USI NE S S P U L S E J UN E 20 1 6

to the increased prevalence of ice use. “Based on the calls our Employee Relations Advice Centre team is taking and the feedback they provide, this increase can directly be attributed to ice,” Willmott says. “Two or three years ago, our consultants rarely received these types of queries, but now they’re receiving calls from employers every week on how to deal with people on ice in their workplaces.” CCI’s new figures come as industry captain Nev Power, CEO of Fortescue Metals Group, expressed concern about the limits placed on businesses to provide information about ice use that could help WA’s law enforcement effort. “One frustration I experience is that businesses are prevented from sharing intelligence with police which may otherwise assist in their efforts to curtail supply

by better understanding the distribution networks,” Power says. Nev Power, page 15 Employers seeking advice from CCI’s hotline about ice abuse are concerned about aggressive or erratic behaviour from employees who they suspect are using the drug. “In many cases, the aggression is creating major issues among staff, and often the manager is uncertain and in some cases afraid to approach the individual out of concern for their own safety,” Willmott says. “At best, they’re seeing employees displaying erratic behaviour – vacillating between highs and lows and not showing up for work. At worst, they’re dealing with violent outbursts, volatility and a dangerously compromised workplace in terms of safety.” Willmott says ice abuse is no longer quarantined to particular industry sectors.

ICE LAND: A CCI SPECIAL INVESTIGATION

FOR ZERO TOLERANCE

“The scourge of ice must now be tackled in our offices as well as in our homes and in our communities,” Willmott says. “We’re working to help employers with this issue, but they need more support in the form of specific changes to drug testing and dismissal mechanisms to properly equip them to manage the challenges of the volatile, unpredictable nature of people using this drug.” What business wants, page 14

‘It’s everywhere’: SafeWork According to CCI Member WAbased SafeWork Laboratories – a national drug testing company that has tripled its workforce in just three years due to booming demand – ice use isn’t confined to any particular industry. SafeWork is now one of the state’s biggest players on the testing scene and processes dozens of positive meth

58,000 AUSTRALIAN EMPLOYEES ON ANY DAY WILL TEST POSITIVE

tests every single day, says National Marketing Director and toxicologist Andrew Leibie. “Extrapolated out to the entire workforce, our figures show that about 58,000 people on any given day would test positive for meth or ice if tested,” Leibie says. In WA, that means at least 7182 WA workers will turn up to WA workplaces either under the influence of ice or suffering its ‘hangover’ effects – lethargy, irritability, poor concentration, hunger and sometimes unpredictable aggression. The vast majority will not be tested. “That gives you an idea of the number of people on the roads/driving a forklift/working underground who are affected by ice that we’re not detecting,” Leibie says. “It’s everywhere now – construction, transport, agriculture and food production, aviation, rail. > p14

ICE-USING MANAGER TELLS HOW HE GETS AROUND YOUR DRUG TESTING REGIME “Being in management, I’ve always known even roughly when testing is coming and so I’ll just not use then, even for a couple of weeks prior. I have a number of ways of getting around the ‘foolproof’ system and I guess it’s become a requirement for survival in my role, although I never set out intentionally to make this occur. “Firstly, testing of senior management rarely occurs and I have been subject to only one test in the last two-and-a-bit years. Secondly, over the years you become friendly with the right people who funnily enough often partake, albeit as what I would term ‘Weekend Warriors’. These people are probably a lot more common than even you or I are aware. Through connections or mutual acquaintances, I have a set of ears inside the current testing company. So in advance (usually a week or two) I will get a heads up there may be a random test and will either have an offsite appointment that particular day if I am concerned or have a break for a couple of weeks prior. “Lastly if by an unfortunate turn of events I was subject to a test and failed, I would deny all knowledge, suggest the tests were mixed up somehow or that someone may have spiked a drink as I felt a bit funny at a party or pub a couple of days ago and was wondering why. Given my track record of delivering large commercial projects, I think I would have the backing of my senior management to have the testing facility prove otherwise.” ¢

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ICE LAND: A CCI SPECIAL INVESTIGATION

SafeWork’s Andrew Leibie talks test results with lab manager Tyren Edwards.

> “And it’s in the regions now too, which makes it different to other serious drugs that generally remain city-centric. Ice breaks a lot of rules.” Leibie said ice was increasingly easy to buy and cheaper than other serious drugs. “Five years ago the supply was well controlled and you had to know the right people to be able to purchase ice,” he says. “Now it’s a disruptive business model – you can just send a quick email to south-east Asia and ask for a couple of envelopes for you and a friend. “There’s an increased awareness about it now, so employers are spotting the signs, but also there’s simply a lot more ice use generally. “At the end of the day, drugs cost money and you have to pay for them somehow, so you need a job.”

Testing times Workplaces are trying to manage the issue by using traditional

testing mechanisms including urinalysis and saliva testing. However, while urinalysis can detect cannabis up to 21 days after use, the window for detecting ice use is limited to just a few days. The use of drug testing in the workplace has an immediate impact on detectable ice use, according to Leibie. “When we go into a business for the first time and do blanket testing of all substances, we’ll get a 10 per cent positive result,” he says. “After that, the next lot of testing will be down to five per cent or below.” Some users may “self-calibrate” to work their ice use around known testing times, but Leibie says it’s a risky strategy. “Some people think they can transfer their cannabis-use model to ice – have a couple of smokes of a night and be fine the next day – and you simply can’t. It’s a highly addictive drug – for some people, instantly addictive,” he says.

WHAT BUSINESS WANTS CCI joins with Nev Power in standing ready to work with the State Government, the community, businesses and individuals to join forces in the fight against ice and other drugs. We advocate that there are real industrial relations reforms that could empower employers to protect their employees and their businesses more effectively. CCI WA is calling for: Amendment of the Fair Work Act to stop the Fair Work Commission and unions putting up barriers against workplace drug testing and interfering with drug testing methodology. Ice in the workplace threatens the safety of all workers and the community – privacy concerns must come second to the more immediate need for workplace safety and employers should have the discretion to choose which drug testing method is most suitable for their industry.

1 4 B US I NE S S P U L S E J UN E 20 1 6

“And it has a bad hangover effect, often as a result of not sleeping and not eating during an ice high, and of course that’s going to be evident at work in the following days.” However, ice expert Dr Ken Pidd, Deputy Director (Research) of the National Centre for Education and Training on Addiction (NCETA), says workplace drug testing alone is insufficient. “The research tells us that comprehensive workplace strategies that include appropriate drug testing, employee awareness and education and supervisor/ manager training are effective in reducing risk,” Pidd says. “The key to the effectiveness of such strategies is that they are tailored to meet the identified risks and needs of individual workplaces.” Workplace drug and alcohol policies should include access to counselling, treatment services and also offer training for supervisors on how to refer employees for help.

“This will provide a pathway to treatment where a trained clinician can determine the program that is best for the employee,” Pidd says.

‘Disturbing’: Police Minister Deputy Premier and Police Minister Liza Harvey says the use of meth in WA workplaces, as shown in CCI’s new figures, is “very disturbing”. “Unfortunately, as meth is such an insidious drug, it is not limited to back alleys and an underground drug culture. “As Police Minister, I can assure you WA Police remains committed to helping disrupt the supply of meth in WA.” In response to CCI’s special investigation, Ms Harvey says WA police needed greater powers to disrupt the transport of meth into communities and towns. “I am looking at developing legislation that would allow police to target vehicles in suspected drug routes such as interstate access points.” ¢

Amendment of the Fair Work Act to recognise the obligation employees have to their employer and their co-workers. Conventional wisdom currently says that what a worker does outside of work is their own business, but this is not the case (particularly with ice) when the employee is impaired in the workplace and is a serious threat to the safety of others. Empowerment for businesses to remove workers outright for serious drug-use breaches. The unfair dismissal laws’ current focus on procedural requirements means that businesses can be stopped terminating an employee because of a procedural error. So, if an employee is caught red-handed on ice, the employee can be reinstated – despite the breach – if there was an error in the dismissal procedure. Stronger prevention programs. Governments must do more to support education and rehabilitation programs. Workplace reform can only go so far – ice is a multi-faceted social problem that must be treated at its source in the community.

ICE LAND: A CCI SPECIAL INVESTIGATION

FORTESCUE TO POLICE:

LET US HELP YOU

Only a united front can disrupt the supply of the drugs destroying our communities, writes Fortescue Chief Executive Nev Power EXCLUSIVE

e know from intelligence shared by our police and security agencies that organised crime elements are targeting WA as a place to profit from dealing in drugs and we are calling for a tougher approach to cut supply to our communities. As the beneficiaries of close cooperation with the law enforcement agencies, businesses like Fortescue have been able to take a hard line on drugs to protect our people and our operations. But our concern is that, at least anecdotally, communities are not faring as well in this war on drugs and, in particular, the highly addictive and destructive methamphetamine known as ‘ice’. Recently Judge Philip McCann described WA’s ice epidemic as the worst in the civilised world and both the National Ice Taskforce and Royal Flying Doctor Service have reported a strong correlation between remoteness and ice usage. As a society, we need to consider what more can be done to tackle this problem at the source of supply. One frustration I experience is that businesses are prevented from sharing intelligence

with police which may otherwise assist in their efforts to curtail supply by better understanding the distribution networks. Governments need to take real and measurable action to eradicate this blight on society and provide increased investment in regional drug rehabilitation and support services to help build stronger communities. The State Government’s $15 million two-year plan to tackle the local ice problem delivered in the 2016 Budget is a step in the right direction, and now a multifaceted approach is needed. Illegal drugs do not belong in the community, just as they do not belong in our workforce. The impacts of illegal drugs, particularly ice, are widespread – they are destructive to families, corrosive to communities and potentially lethal in the workplace. Drugs destroy the very fabric of our social cohesion, and we all have a responsibility to protect our family, our community and our workplace from this unnecessary evil. As a company that places the highest priority on the health, safety and welfare of our people, we are committed to building stronger communities and recognise our responsibility to step up and join forces with others in the fight against drugs. We stand ready to work with State Government, community leaders, other businesses and individuals, and commend the lead that the Chamber of Commerce and Industry of WA is taking to bring together the combined strength of these stakeholders to tackle the challenge head on.

At Fortescue we have zero tolerance towards use or possession of illegal drugs. Anyone who uses or possesses illegal drugs on a Fortescue site is putting the safety of themselves and their mates at risk, which is completely unacceptable. I am proud of our close partnership with WA Police and our proactive role in their industry-wide anti-drug operations, as well as our stringent policies and procedures on drugs and alcohol, which includes random drug and alcohol testing across all of our sites and the use of sniffer dogs to ensure incoming crews are protected from illegal drugs. Fortescue is a company guided by our embedded values and we take very seriously our vow to be our brothers’ and sisters’ keepers. Our ‘Speak Up’ program empowers our people to take responsibility for the health and safety of themselves and their mates by reporting concerns about the use of alcohol or illegal drugs, either by themselves or their mates, in a fair, balanced and confidential manner. If an employee voluntarily comes forward with a drug problem, they are placed on leave and offered a range of support services. Before that employee returns to work they are required to provide a confirmed negative result. I urge all businesses to take a zero tolerance approach to drugs in the workplace, while providing access to support services to help users remove drugs from their life and have the opportunity for a fresh start. The health and safety of our families, our communities and our workplaces depends on all of us taking a strong, united stand to rid society of illegal drugs. ¢ JU NE 2 016 BUSIN ES S PU L SE 1 5

ICE LAND: A CCI SPECIAL INVESTIGATION

REAL STORIES FROM THE FRONTLINE Each case is different, but a thread of concern runs throughout CARRIE COX AND GABRIELLE CAMPION

EMPLOYERS HAVE TOLD CCI THEY’VE BEEN TOO FRIGHTENED TO CONFRONT SUSPECTED ICE USERS

alls to CCI from business owners dealing with apparent ice use in their workplace are often emotionladen, ranging from mounting concern about employees they genuinely care about through to descriptions of powderkeg situations that compromise safety on site. Some employers have told CCI they’ve been too frightened to confront suspected ice users in the workplace due to their aggressive and erratic behaviour. One employer reluctantly terminated a high-performing, valued employee because their positive meth result contravened the company’s drug and alcohol policy. Another called because it had come to their attention that an employee who was uncharacteristically underperforming was using ice and their colleagues were concerned for their wellbeing. Alcohol and drug policies come into the firing line too. One CCI Member was aware that 90 per cent of his workforce smoked marijuana with little effect on their work. When he began to realise a number of his

employees were also using ice, he was faced with a difficult decision – the ice users were a danger on site, but blanket drug testing risked him being left with just 10 per cent of his staff. Another interesting case crossed the team’s desk last year when an employer expressed concern about an employee’s sobriety. The employee was a recovering addict and had been prescribed methadone to manage his addiction, meaning a certain level of positivity in drug tests was expected to account for the prescribed methadone. Initial tests came back negative, however as months went on follow-up tests came back with levels of drugs other than the prescribed methadone. The employee had to be terminated for non-compliance. Unfortunately, cases don’t always involve adults and employers must tread cautiously when they are dealing with minors. One employer described a tricky situation in which an under-18 trainee tested positive for drugs, and ice was suspected. Under the traineeship contract, the employer had a duty of care

to the trainee but wasn’t sure how best to proceed – should the parents be informed? Should they have known about the test in the first place? Is age immaterial? Worried about a staff member? Need help drafting your drug and alcohol policy? Contact CCI’s Employee Relations consulting team on (08) 9365 7730 ¢

Ice at work: what to look for The most common signs of recent ice use are: extreme tiredness or blurred vision mood swings paranoia, depression, irritability or agitation difficulty concentrating, poor performance trouble making decisions and planning unexplained patterns of absenteeism or lateness lack of concern about otherwise serious matters poor appetite, palpitations, infected injection sites or lesions

‘PHIL’: ‘I know my own triggers and I know when to stop’ “I’m a project manager on Tier 1 and Tier 2 building sites in the city. I’ve smoked ice on and off continuously since my first try about 15 years ago. Eight years ago I started to smoke in the mornings too. “Ice gives me massively increased alertness. I get twice as much done. I outperform. I can honestly say that my ice use doesn’t affect my family [Phil is married with two children] or my work. Either you control the drug or the drug controls you – and I can manage my use. I know my own emotional triggers and I know when to stop. At the most 1 6 B US I NE S S P U L S E J UN E 20 1 6

it’s got to being an $1800-a-week habit and that’s when I know to pull my head in. “On the low, yes, there’s a week when it hurts physically … you get the sweats at times, you’re a little depressed, you eat too much, but you keep going – it’s not pleasant but you manage it. “In my social and professional circles, ice is prolific – doctors, nurses, engineers, lawyers. They’re not ditch diggers. It’s a drug right across all the boundaries. For social users, it’s a pressure release. I still source it through old school contacts and associates and they’re not

dodgy people operating in dirty labs at the back of their house. They’re professionals with families. “I’ve got rid of workers on my site for obvious ice use – uncontrolled behaviour, aggressive behaviour. They can’t control it. You have to take responsibility for your actions, and I do. Self-awareness is the key to managing ice use.” Editor: A couple of days after this interview, Phil wanted to qualify some of his earlier statements– he was in a very different mood. “My addiction is not something I am proud of (it’s

actually something I have clouded in secrecy over the years and) if I am honest about the way I feel, it’s an embarrassment. I see it as a weakness in my character, a flaw in the armour, so to speak. “Regular use of any drug is something I would like to think I am finally outgrowing, even just for the probable health concerns that I imagine would eventually catch up with me after longterm sustained use. But I’d like to think I could still use it for special occasions – a good friend’s birthday, a trip away with mates.” ¢

ICE LAND: A CCI SPECIAL INVESTIGATION

‘DAMIAN’: ‘The monster just gets bigger and bigger’ ‘Damian’ and his wife run a trucking company employing 10 people. Two years ago, Damian’s addiction to ice very nearly cost him his business and his family. “It’s very commonly used in our industry because it helps keep you awake on long drives. It made an immediate positive difference for me. But then it fast becomes a habit. The monster just gets bigger and bigger. It’s a very evil drug. “Within a couple of years I had a $5000-a-week habit. It cost me a small fortune. Not a small fortune – a huge fortune – all of it through the business. It gets to the point where you need to start dealing yourself to afford it, but I was using so much that it became hard to deal; I used it all. “My wife saw a thing on A Current Affair about George O’Neil’s naltrexone implants and she rang Fresh Start the next day. The implant worked straight away for me, but I’ve since gone back for a few more. I’ve been off ice for a while now and I believe that’s how it will stay. Now I just do the job normally – if you’re tired, you have to sleep. “I think our industry is starting to get cleaner now that they’re drug testing all drivers. There needs to be more education about just how bad this drug is and what it can do to your life. It’s a hugely different ballgame to any other drug. In my case, it made me a very angry person – I developed a serious anger problem and that made a huge impact on my family and my work. “I can tell when other drivers are using it. It produces certain mannerisms – agitation, difficulty concentrating. If they’re on a low, they’re likely to be very lethargic and angry.” ¢

WITHIN A COUPLE OF YEARS I HAD A $5000-AWEEK HABIT

‘SHAUN’: ‘If I hadn’t sought treatment, I’d be dead’ “I started using ice in a sort of ordinary, socially acceptable way – just smoking pipes with friends. I could have a small amount and still be able to sleep that night. It was very manageable and enjoyable for about six months or so, but then I needed more. I started injecting and from there things quickly spiralled out of control. “You hear about people who say they can manage their ice use long term, but they are the exceptions rather than the rule. They’re playing Russian roulette with their lives. During the five years I was using, I didn’t think I was addicted. I thought I had control of my usage and could stop when I wanted to. It wasn’t until I actually tried to stop, after the birth of my daughter, that I realised I couldn’t. “I was a computer programmer and a property developer. But you need a really clear mind to do programming for a living and so that quickly went by the wayside. Then as I started to have to spend more and more of my money on ice, the property development side of my career also collapsed. “In the last nine months of my addiction, before I hit rock bottom and sought help, I went through $350,000 of cash and about $1 million worth of opportunities I’ll never get back. I lost my family [Shaun has since regained full custody of his youngest daughter, now six]. I was sitting all alone in a wrecked house. “I know for sure I would be dead now if I hadn’t had [naltrexone] treatment. It saved my life. The

implant gives you a window of time – for me it was 5-6 months – where I could do proper rehabilitation without having to manage withdrawal at the same time. And I did intensive rehab – some people go once a week to counselling; I went every day. It was really hard, but I was very determined. I’m a grandfather now and I have a lot to live for.” ¢

I WENT THROUGH $350,000 OF CASH AND ABOUT $1 MILLION WORTH OF OPPORTUNITIES I’LL NEVER GET BACK

How to ice-proof your business 1. Educate Develop and implement a robust drug and alcohol policy that is suited to your business. Ensure all staff are educated on the policy and that regular refresher training is provided. Appoint a guardian of the policy to ensure it is reviewed and updated regularly. Make sure any procedures outlined in the policy are consistently applied. Management and staff charged with enforcing the policy should be provided with separate, tailored training and support.

2. Define Ensure the policy clearly defines “drug” (ie illicit, prescription, synthetic etc) and appropriate cut-off levels are identified. For some industries and roles this may be zero. Explicitly outline employee rights and obligations regarding drug use and drug-affected behaviour in the workplace. Detail any testing processes, include how you will test, what you’ll test for and the actions to follow a non-negative result.

3. Plan Source a reputable provider to undertake testing, either on or off site. Put mechanisms in place to minimise the ability for staff to provide fake samples or switch samples. Determine how you’ll safely get an employee home following a non-negative test result. Consider when to undertake a confirmatory test and a follow-up test to ensure the employee’s system is clear of the substance before return to work. Consider temporary cover where an employee is stood down due to a nonnegative result – depending on the drug and the length of time it takes to exit the employee’s system, this could be weeks. CCI’s Employee Relations Advice Centre can answer your questions about drug use in the workplace. For more information, call (08) 9365 7660 or email advice@cciwa.com

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ICE LAND: A CCI SPECIAL INVESTIGATION

HELP FOR BUSINESS OWNERS

Ten things you need to know about dealing with ice in your business

CARRIE COX AND GABRIELLE CAMPION

he addictive nature of ice and its rapid take-up put the drug beyond the scope of most existing workplace drug and alcohol polices. So if you think you’re prepared for ice rearing its head in your business, you might need to think again. “Even if you have a drug and alcohol policy in place, it may not be sufficient to deal with every situation relating to drug use and its effects at work,” says CCI’s CEO Deidre Willmott. “This is why a robust policy is critical, with all possible situations considered.” Willmott recounts a recent call from an employer who had terminated an employee who

had been absent from work for weeks with no explanation or contact. A few weeks later, the company’s HR manager saw the ex-employee on a TV current affairs show being arrested for drug offences. “When the employee realised he had been terminated, he came back to the workplace with a gun and demanded to speak to the HR manager,” Willmott says. “The HR manager bravely met him and told him in no uncertain terms that he was no longer employed – stating his TV appearance and the fact he hadn’t been to work in months as their reasons.

Ice: the facts

270,000 Australians currently use methamphetamine. At least 220,000 – or 81 per cent – are employed.* Ice is the purest form of methamphetamine and can be snorted, injected or dissolved into alcohol. An ice high produces feelings of intense euphoria, exhilaration and increased arousal and activity. Users feel immediately alert, energised, talkative, happy, confident and powerful – the ‘low’ afterwards is very different. Physical effects of an ice high include dilated pupils, increased heart and breathing rate, reduced appetite and an increased sex drive. 2.5 million work days are lost annually due to alcohol and other drug use – a cost of more than $680 million to the Australian economy. CCI’s Employee Relations Advice Centre can answer your questions about drug use in the workplace. The CCI Employer’s Guide to Managing Drugs and Alcohol in the Workplace also includes a comprehensive drug and alcohol policy you can download and customise. For more information, call (08) 9365 7660 or email advice@cciwa.com

* Source: National Centre for Education and Training on Addiction (NCETA) 1 8 B US I NE S S P U L S E J UN E 20 1 6

“The ex-employee proceeded to bribe the HR manager with a bag of ice.”

How to devise a robust policy An effective workplace drug and alcohol policy should cover these 10 key issues: 1. Your overriding position. Explicitly stating that drug use in the workplace and drug-affected behaviour have no place in your business is an excellent starting point for your drug and alcohol policy. Make it clear this is not about meeting legislative requirements but part of your core business. 2. Drug testing. If being drug tested in any capacity is a condition of employment, this should be made very clear to employees up front – not just in the fine print or on page 126. 3. Framework. You must outline the manner in which drug and/ or alcohol testing will be carried out (eg random, weekly, monthly). 4. Targets. You must outline the specific drugs that may be tested for (eg illicit, prescription, synthetic).

5. Methods. Clearly detail the type of testing that will occur (ie oral fluid, urine or both). 6. Your business’s impairment cut-off limits. 7. Processes for managing positive/non-negative test results. 8. Duty of care. Spell out both your duty of care as an employer and also your employees’ duty of care. This section may include advice for workers who suspect and/or are worried that a colleague is working under the influence of drugs. 9. Workplace support. Incorporating addiction education into your business’s safety approach may prove a worthwhile investment. For the best advice and resources, visit Australia’s National Research Centre on Alcohol and Other Drugs Workforce development at nceta. flinders.edu.au 10. Further treatment. Society’s response to drug use can’t be only punitive. Many addicts can recover with support. A full list of rehabilitation facilities in WA is available at adin.com.au ¢

ICE LAND: A CCI SPECIAL INVESTIGATION

TACKLING THE ICE SCOURGE

IS NOW EVERYONE’S RESPONSIBILITY WA uses more ice than any other state – and it’s destroying lives, writes Federal Justice Minister Michael Keenan

adly, in WA and across our nation, the growing addiction to this mindeating, personality-distorting, life-ending drug is causing family violence, unemployment, car accidents – putting nurses, doctors, ambulance officers and police at risk – and it is fuelling crimes such as burglary, robbery, theft, assault and even murder. We know that proportionally, Australia uses more methamphetamine than almost any other country in the world, and in WA its usage is higher than any other state. That is why tackling the ice scourge is not solely an issue for law enforcement – it’s for everyone: governments, law enforcement, agencies, health, education, industry, non-government organisations, community leaders, parents, colleagues, teachers, peers and the addicts themselves. The final report of the Coalition Governmentcommissioned National Ice Taskforce found the use of ice is particularly prevalent in industries such as wholesale trade, construction, mining, hospitality and among tradespeople.

During consultations conducted by the National Ice Taskforce, the use of ice in workplaces was raised as a significant issue. Ice use by fly in/fly out workers was also raised as a serious concern that is not only impacting the workplace but surrounding communities as well. Of great concern, the Taskforce found 2.3 per cent of the Australian workforce used some form of methamphetamines in the past 12 months. The Coalition Government is committed to addressing this threat by ensuring we have welldesigned and flexible treatment services, including detoxification, counselling, rehabilitation and follow-up services. This will be achieved through our major investment of an additional $300 million over four years to improve treatment, after-care, education, prevention, support and community engagement – on top of the up to $310 million already allocated for treatment services. This commitment will also build on the significant investments we’ve already made in policing our borders and our streets to block the supply of ice, through increased international cooperation, enhanced intelligence sharing and better controls of the precursor chemicals used to make ice. The Government also recently released the Australian

Crime Commission’s Precursor Chemicals Information Resource (PCIR) – a tool designed to educate industry about what indicators to look out for in relation to the diversion of chemicals from the legal market to the illegal market, which in turn will assist law enforcement in combating the illicit manufacture of drugs. The chemicals and methods in the PCIR are those which have either been directly linked to illicit manufacturing events, or which are considered viable and likely to be used in a clandestine laboratory environment, posing significant risks to the community. For example, for every kilo of pure methylamphetamine produced, between 10 and 20 kilos of chemicals are used and up to 10 kilos of hazardous and toxic waste is created. The PCIR is another excellent example of Government and industry working together to harden the environment against organised crime groups and illicit drugs, because we know that to help people stop using ice, we need to get the right mix. That is why we are making sure the right type of help is available, services are effectively targeted and our frontline workers, including law enforcement, health professionals, industry and educators, have the tools they need to combat this scourge. ¢

AUSTRALIA USES MORE METHAMPHETAMINE THAN ALMOST ANY OTHER COUNTRY IN THE WORLD

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ICE LAND: A CCI SPECIAL INVESTIGATION

YOUNG TRADIES OFFERED ICE A recent case prompts a warning from construction body Fair Work Building and Construction (FWBC) last month warned that young workers – including apprentices and second- and third-year tradespeople – are being encouraged to take ice and methamphetamines on a private building project. FWBC has notified the relevant law enforcement and workplace health and safety agencies. Contractors covered by the Building Code 2013 have responsibilities in relation to the management of drugs and alcohol on all building projects. “For private sites, contractors are required to have a work health safety and rehabilitation system that shows the way in which drug and alcohol issues in the workplace will be managed to help ensure that no person attending site to perform building work does so under the influence of alcohol or other drugs,” FWBC said in a statement. “For sites that meet the threshold for Commonwealth funding, mandatory random drug and alcohol testing is required at least monthly.” The Building Code 2013 requires particular substances to be tested for, including methamphetamines and ice – minimum requirements are set out in Schedule 3. FWBC encouraged contractors, workers and others who are aware of building sites with drug and alcohol issues to report them to the organisation and other relevant authorities. Have information to share with FWBC? Contact the hotline on 1800 003 338. You may remain anonymous if you wish. ¢

The typical ice user NCETA’s Dr Pidd says the typical ice user is male, single, heterosexual, lives in a major city and is aged 25-35. “In the workforce they are likely to be blue collar, trades or skilled workers,” he says. Seventy per cent of ice users use the drug on average less than once a week. These people will often be able to hide their drug use, however if use leads to addiction, the effects will usually spill into the workplace. “An addict is more likely to use at work and risk safety due to intoxication and is more likely to suffer behavioural and psychological problems while at work,” Dr Pidd says. Symptoms are more likely to become more obvious with increased use of the drug, according to SafeWork’s Andrew Leibie. “You’ll see more absenteeism, more unwarranted aggression, increased hunger, increased sexual drive,” Leibie says. “The chemical nature of ice triggers really primitive responses – and what few people know is that with ice, the changes are permanent.” 20 B US I NE S S P U L S E JUN E 20 1 6

Meth dependence more than doubled in people aged between 15 and 24 between 2009-10 and 2013-14 National Drug & Alcohol Research Centre, February 2016.

YOU SUSPECT AN EMPLOYEE MAY BE AFFECTED BY ICE AT WORK – WHAT NEXT? 1. Act – don’t wait Unlike other drugs, ice can produce unpredictable, aggressive, paranoid and even psychotic behaviour. The immediate safety of everyone in your workplace – including the affected employee – should be paramount. Immediate removal of the affected employee from the work environment is critical. Remember: both you and your employees are legally bound by duties of care.

2. Test Carry out drug testing in accordance with your company’s drug and alcohol policy. While waiting for test results, the employee should be stood down with pay. On receipt of a non-negative test result, a confirmatory test should be undertaken.

3. Arrange leave Where it is confirmed the employee is not fit for work due to the effects of drugs, they may be able to access personal leave.

4. Follow through In some cases, disciplinary action may be appropriate, up to and including dismissal. Professional counselling or other support mechanisms may also be a strategy you wish to look into. One CCI Member contacted ERAC for advice about two employees who’d tested positive for ice. As a small business, they were valued employees and the owners preferred to go down the rehabilitation road rather than sack the employees, a decision that ultimately proved successful. ¢

ICE LAND: A CCI SPECIAL INVESTIGATION

HOPE FOR ADDICTS

WA doctor George O’Neil offers a controversial treatment for drug users – and ice has tripled his ‘business’

George O’Neil (centre) with residential rehab clients, from left Martin Jones, Greg Roberts, Luke Daniels and Simon Chrystal. Names used with permission.

CARRIE COX

ICE ADDICTION IN PARTICULAR HAS BECOME A MASSIVE PROBLEM IN THIS STATE

nfortunately, Perth doctor George O’Neil’s business is booming. The founder of the Fresh Start Recovery House pioneered treating opioid addiction with Naltrexone implants about 16 years ago. But his original focus on heroin addiction has been overshadowed in recent years by ice. “Ice addiction in particular has become a massive problem in this state, and more and more people are finding out that this treatment has a good success rate,” O’Neil says. At his Subiaco clinic, patients wait in rows of plastic chairs to

see him as they try to end their dependency on ice, heroin, cocaine or alcohol. There aren’t enough chairs to match demand. More than half of the people there on any day will be seeking treatment specifically for ice addiction. Many of O’Neil’s patients come to him after “managing” their ice use for an extended period. “For a long time they feel very confident about their habit – they might use week on, week off, and in their minds there’s no problem. They’re not fully addicted,” he says. “But it’s rarely sustainable and after a while it’s usually their family or a spouse who bring things to a head. They’re the ones who notice that half the family’s income is disappearing or that their loved one is in a different zone most of the time – an unnatural state of communication without context. In reality, these users are sitting ducks for losing everything.” O’Neil estimates he’s treated 10,500 users and addicts since opening Fresh Start. The last two years have seen a 350 per cent increase in demand for naltrexone treatment and Fresh Start’s associated counselling services.

Most of his patients work in manual labour roles, but O’Neil says he’s says treated doctors and lawyers too. “Some people can use ice at low doses and keep the doses low and function well – some would say they function even better than without ice,” O’Neil says. “But then that $50 a day habit becomes $200 and then $400 and then $600 – once you get to $1000 a day, you need to be dealing as well as holding down a job.” O’Neil also runs a recovery facility in Northam, numerous halfway houses and a company specialising in the development of medical products and research (Go Medical Industries Pty Ltd). He treats many people who will likely never be able to pay off their treatment. O’Neil believes the business sector should get behind the Fresh Start program now that ice use is pervading workplaces and spilling into new areas. “I think successful rehab is a better option than simply sacking people,” he says. “Better for business, the community and families.” freshstart.org.au ¢ JU NE 2 016 BUSIN ES S PU L SE 21

STATE BUDGET

GST: GROSSLY SKEWED TREATMENT On the back of his third State Budget, the Treasurer presents us with a few more interesting numbers

’ve been accused of sounding a bit like a broken record over the past two years when it comes to WA’s share of GST payments. By now everyone knows that WA gets ripped off on its GST. The State Budget released on May 12 shows that West Australians will effectively contribute $4.7 billion of their GST to the other States in 2016 17 under the Commonwealth’s fiscal equalisation process. That’s equivalent to TWO Fiona Stanley Hospitals that we are building in the other states through our goods and services tax each year – tax that we pay at the same rate as everyone else in the country.

redressing the imbalance by close to $1billion over the last two budgets. However, the GST scam is not the only taxation rort that the Commonwealth perpetrates on WA, and not even the biggest rip-off. In the State Budget, it’s instructional to have a look at appendix 12 in Budget Paper 3, which outlines WA’s net contribution to the Federation from all our tax dollars. Each year the WA Treasury calculates just how much of our tax dollars find their way back to WA via Federal Government payments. States with higher incomes and business profits contribute more

EVERYONE KNOWS THAT WA GETS RIPPED OFF ON ITS GST The Premier and I have been criticised for harping on about this inequity, but the fact is we have managed to shame the Federal Government into 22 B US I NE S S P U L S E J UN E 20 1 6

to total Commonwealth taxes, and states with younger, healthier populations or strong economic conditions draw less on health and social security payments.

WA falls strongly into both these categories, so much so that in 2014-15 on a per capita basis, WA’s net contribution to the Federation was more than 30 times greater than NSW’s and 40 times more than Victoria’s. Overall in 2014-15 WA Treasury estimated that the Commonwealth received $54.1 billion in tax and royalty revenue from WA, while Commonwealth expenditure in WA amounted to $31.4 billion, yielding a net contribution to the Commonwealth from WA of $22.8 billion. In one year, West Australians contributed $8800 per head to health and education and social payments in the other states and territories. Makes you feel good, doesn’t it? In 2014-15 WA made a 31 per cent greater contribution to Commonwealth revenues than our population share would imply, and drew down 21 per cent less than we would get on a per capita basis. The only other states that contribute more than their population shares are NSW (two per cent) and NT (five per cent), but this is offset for the NT

by a drawdown equivalent to 111 per cent more than its population share. Obviously this State contributes enormously to the Australian economy – we contribute around 40 per cent of the country’s total merchandise exports (in nominal terms) and as a high-earning, hard-working state, we don’t qualify for large welfare payments. We have consistently low unemployment figures and while our population growth has slowed it is still growing at around 35,000 people a year. At the same time as WA was contributing $172 billion to the coffers of other States, our population grew by 580,000, over 60,000 more people than the total population of one of the States that receives our largesse, Tasmania. I think I’ll have to keep cranking that broken record. ¢

ONLINE OPPORTUNITIES Selling to China is within the scope of any business willing to set up an e-commerce strategy

DANIKA GUSMEROLI

CCI International Trade Officer

hina’s huge e-commerce platforms have changed the ballgame for Australian exporters, making it easier and more cost-effective than ever to sell into the world’s largest consumer market – about 300 million Chinese buyers. It sounds like a daunting prospect for any business, but establishing an international e-commerce strategy doesn’t have to be intimidating if you’re willing to put in the time and effort to research and analyse your new market. Here are five practical tips to help get you started on developing a strategy:

Is this a normal channel for most consumer products? What stage is online purchasing at in the market? How rapidly is it growing? Where are online transactions usually done in the market? Are there major online sale platforms and what are they?

2. Research possible barriers to entry You’ll need to check if there are any steps in the process that would make it difficult for an Australian company to set up an online business in the market. Issues such as political stability,

IT’S IMPORTANT TO HAVE AN UNDERSTANDING OF WHO YOUR TARGET MARKET IS IN ORDER TO PROSPER 1. Have a checklist to determine a market’s e-commerce readiness The first phase of your market research should involve an assessment of whether it’s worthwhile to invest further resources into a country’s e-commerce market. Although China is a major market that’s promoted as being attractive for e-commerce, it’s quite different to other markets. Ask these questions: What are the internet usage and mobile device usage rates in the market?

economic potential, cultural differences and dealing with different sets of rules for data protection, privacy and consumer and contract law can turn out to be burdensome for Australian companies wishing to set up as an online merchant in a foreign country.

3. A one-size-fitsall approach could be your pitfall – understand your target audience When you’re up against strong competition, it’s important to have an understanding of who

your target market is in order to prosper. Ask yourself: are there any major or emerging consumer trends in online shopping or any economic and/or cultural impacts to be considered? It may be best for you and your company to invest in a knowledgeable local partner that can help you analyse local business customs, consumer preferences and cultural differences in the targeted region, as well as providing information to assist you with customising your product and developing a marketing strategy.

4. Allow for localisation of your branding strategy After you’ve finished analysing and researching your target audience, you’ll need to think about how you will reach your new customers. There are many options available, such as selling from your own Australian website, selling via an established online store or opening your own online store. Sometimes it may be easier for a foreign brand to go through an established online platform. When it comes to branding, try to remain consistent, but allow for localisation and flexibility to adhere to local customs and customer needs. Even when you’re promoting your website, research if there are social media apps that may be applicable to your target audience. Just

because Facebook is one of the largest social media platforms in the world doesn’t mean it’s suited to the culture and audience you’re trying to target.

5. Devise a plan that maximises payment options You’ve worked hard to create a product and brand that will attract international customers, but you now need to devise a plan that maximises payment options for your international customers while collecting the right customer information. Create customer-friendly payment page options by labelling your fields as clearly as possible and provide alternatives to assist customers who don’t speak English. Now that you have the customer’s order details and delivery information, it’s time to collect payment. If you’ve determined there is a large market for your products in a particular country, you may want to research some of the alternative payment methods as these can affect sales. Contact CCI’s International Trade team for advice about setting up international e-commerce sales opportunities and using Australia’s Free Trade Agreements to your advantage. Email trade@cciwa.com ¢ JU NE 2 016 BUSIN ES S PU L SE 23

SUCCESSION PLANNING

KEEPING IT IN THE FAMILY

The second generation of Compu-Stor is turning sibling rivalry into a business asset CATRIONA MATHEWSON

I THINK WE WOULD HAVE KILLED EACH OTHER IF WE HAD BOTH STAYED (IN PERTH)

24 B US I NE S S P U L S E JUN E 20 1 6

hen Robert Manford and his brother Jeremy left school, their father Peter told them they had three choices: go to university, dig ditches or join the family business. “I gave digging ditches a go,” Robert jokes. Back then, he viewed working in his father’s document storage business, Compu-Stor, as a tedious obligation. Now it’s both a passion and a privilege. But that’s the way it is with family businesses – sometimes you can’t see the wood for the trees. It’s why many family business heads require offspring to work outside the business for a few years before they come on board. The Manfords did things the old-fashioned way. Peter established the Perth-based business in 1987 and his boys grew up spending school holidays sweeping floors and packing boxes. Robert, now 37, and his brother Jeremy, 39, took over the day-to-day operations in their early 20s, although their father retained overall control. When the siblings became directors 15 years ago, they were aware of the potential for conflict

and installed an independent chairman and board to structure decision-making. “As an organisation, we’ve always thought of ourselves as a small family-operated business,” Robert says. “But we’ve grown to over 50 staff and thousands of customers. You have to be mindful that there’s a lot more people involved than just the family.” As with many family businesses, it’s the second generation that has driven modernisation and expansion within Compu-Stor, with the focus having shifted from document storage to the digitisation of records and the development of a proprietary, web-based record management system. “We’re an industry that has to evolve or we’ll be left behind,” Robert says, acknowledging the decline of paper records. Compu-Stor has also expanded under the brothers, opening operations in Melbourne in 2007 and Sydney last year. Jeremy heads up Melbourne, while Robert runs Perth. “That has been critical,” Robert says. “I think we would have killed each other if we had both stayed

(in Perth).” The structure helps sibling rivalry work for, rather than against, the company, with the separation sparking a period of rapid, competitive growth in both states. For Robert, the best thing about a family business is feeling you’re building something for future generations – which can be a double-edged sword. “You can let the business get in front of what a family should be,” he says. ¢

Family feuds According to KPMG Australia’s Family Business Survey 2015, the top five conflict triggers in family businesses are: 1. Future visions, goals and strategy 2. Balancing family and business needs 3. Lack of family communication 4. Succession-related issues 5. Financial stress

SUCCESSION PLANNING

SOUND ADVICE, RELATIVELY SPEAKING Planning and expert guidance can help keep ‘family business’ from becoming an oxymoron

CATRIONA MATHEWSON

f there’s one thing families are expert at, it’s doling out advice. Seeking it is another matter entirely. And more’s the pity, says accountant Lyall Bear, who has seen viable family businesses brought to their knees by conflicts that could have been resolved or avoided with a little guidance. Bear is a director at West Leederville’s CBSW Tax and Business Advisors and an accredited Family Business Australia advisor. He is a passionate believer that family businesses, which account for about 70 per cent of all enterprises in Australia, need specialist advice to grow and proper past second and third generations. But surprisingly few seek it out. Often they may feel their situation is unique, he says. “And they certainly, at first blush, don’t think of their accountant or their lawyer as someone who could assist them.” However, Family Business Australia trains professionals such as Bear in a range of ‘soft skills’ to help manage the personal issues that commonly impact on family enterprises. These can range from sibling rivalries through to addiction issues. Family businesses are often in the unique position of having to manage problematic staff relations, because ‘sacking’ a family member is not an option. But even without major issues, they must contend with ‘friction

points’ where work and personal matters overlap. Bear estimates about half of all the disputes he sees are rooted in personal rather than professional disagreements, particularly when siblings are involved. “There are a lot of underlying issues that go right back, sometimes to when they were children,” Bear says. “If they’ve never been resolved, that can come close to destroying some very good businesses.” When Bear first consults a family, he leads them through a detailed action plan to address the major sources of conflict in a family business, which include: lack of communication blurring of lines between family and business disagreement about goals a lack of clarity around succession plans He recommends having a formal ‘family retreat’ to thrash out any issues and start some ‘parallel planning’, which involves setting out values and goals for both the family and the business. It’s also important for families to agree on boundaries between personal and business discussions. Another major issue is succession planning, or transitioning from one generation to the next. Done successfully, this should be staged over 5-10 years. In reality, Bear says most family businesses are “woefully”

unprepared for change. Planning a continuing role for outgoing leaders is pivotal in easing generational transition, with mentoring or board roles a good option for maintaining status while leveraging their knowledge and connections.

Ironically, tough economic times provide the perfect opportunity to address long-term family business plans. “Most people probably do have more time on their hands,” Bear says. “It’s a good time to press the reset button.” ¢

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BUSINESS PROFILE

WILD

RIDE

Baker Daragh Grier says he makes his bread with flour, water, salt and a cup of conversation

GABRIELLE CAMPION Journalist Let food be thy medicine and medicine be thy food. – Hippocrates ippocrates was the first medical practitioner to use diet to treat illness. Two thousand years later, baker Daragh Grier quotes the Greek physician to explain why he bakes bread the way he does.

WE HAD NO MARKETING AT ALL, A TERRIBLE LOCATION WITH NO STREET PRESENCE AND YET THEY CAME IN THEIR THOUSANDS 26 B US I NE S S P U L S E JUN E 20 1 6

Grier, the owner of Fremantle’s Wild Bakery and Cottesloe’s Baker’s Street, is a firm believer in educating people on the effects of food on the body and how diet can be used to keep illness and medical conditions at bay. His daughter Hannah had dietary intolerances as a newborn and so began Grier’s journey to create his best-selling bread – ‘Hannah’s Loaf’. “Everyone knows that’s the bread we started with,” Grier says. “I know bread’s out of trend in terms of health, but it is on trend in terms of visual appeal and lifestyle. “We’ve been trying to send the really steady message that gluten is actually not the problem – it’s the lack of fermentation. Properly fermented foods – sauerkraut, kimchi, sourdough – that aren’t artificially fermented add probiotics to your gut, which means no matter what else you put in, your body is going to digest it. “We’ve been singing this message for a long time.”

Market life Grier and his wife Patricia sold their commercial bakery in 2008 to start a family – they

BUSINESS PROFILE

supplied ginger bread to school canteens – but were enticed back to business in 2010 to man a stall at local farmers’ markets. Grier initially signed up for three Sundays, but was invited to return time and time again because the demand for the couple’s pastries and bread was so strong. “The customers kept asking us to come back,” Grier says. “It was only Saturday and Sunday so I could do everything myself in my friend’s restaurant kitchen. “From a start-up perspective, there was no capital outlay – it was simply adding value to the ingredients that we bought through skill and knowledge. Why wouldn’t we do it – it was a no brainer.” It was there that Grier first produced Hannah’s Loaf, at the request of the market manager.

Getting wild From the markets, Grier expanded and opened the popular Wild Bakery. Though located on a side street on South Terrace with no other businesses close by, food lovers don’t seem to have any trouble finding Wild.

“When we first opened, our staff was nervous, but I told them to just relax, it will happen,” Grier recalls. “The journey is more important – once [the customers] find us, they’ll never forget. “We had a high aspirational product, no marketing at all, a terrible location with no street presence and yet they came in their thousands.” Wild Bakery’s customer base jumped after the Fremantle Pizza Fiesta in 2013. Instead of having a food truck, Grier offered the bakery’s oven to cook pizzas for the 600 attendees – free of charge – and his team walked the pizzas on long boards from the bakery to the nearby oval. “People fell in love with Wild Bakery that day,” Grier says. “From that moment onwards it was a galvanising of the brand in that community. “We didn’t know how valuable it was until we actually did it – people still talk about it now.” The story has not been the same at their Cottesloe premises, Baker’s Street. Grier says it doesn’t have the same dexterity so they’ve taken a different tack – they use cooking classes to boost their profile.

Back to school In December 2015 Grier decided to run a children’s class – 12 children gathered around the large timber bench in their Cottesloe bakery and decorated gingerbread houses. What began as one class in the first week of December grew to three classes a day the week before Christmas. People saw what they were doing and wanted a piece of the action. From this experience, Grier says they landed on the idea of opening a baking school. “People ask: why would you teach people how to make your bread?” Grier says. “But it’s one of those things where you can give it away and it actually gets more powerful. “It’s not a secret: it’s flour, water and salt left to ferment. The people who’ve come to our classes have become our most powerful customers – they don’t come to the shop every day to buy bread but they’re talking about it. They become apostles of the artisan bread world.” Grier trained in that artisan world – as a young chef he travelled overseas and worked in

high-end restaurants in Europe and America with the Heston Blumenthals of the day. It was there he learned to really appreciate food and the discipline needed to make it in the competitive food industry. “The calibre of training and the culture is so foreign to how Australia and the rest of the universe works and yet it instils something in you – a sense of discipline,” Grier says. “That training and that culture creates habits that last a lifetime. It doesn’t leave room for average – you only aspire for the best.” Grier values his customers overall – he believes that money and profits are the consequences of solid relationships with customers. He says without them, he would not exist and he strives to give them the services and products they desire. “We’ll die and money won’t matter,” Grier says. “We have to ask ourselves what we are doing for the people around us. “It’s not about the money, it’s about the conversation. We’re trying to come up with more powerful ways to connect with people individually.” ¢ JU NE 2 016 BUSIN ES S PU L SE 27

END OF FINANCIAL YEAR ESSENTIALS

SHOW ME THE MONEY Funding your business’s development throws up multiple options – choosing the right one could be critical

Stuart Carmichael Director, Ventnor Capital

“H

ow do I fund the growth of my business?” It’s a question my colleagues and I get asked every day. How companies fund working capital, the commercialisation of technology, product or service line expansion, and mergers and acquisitions are some of the considerations that boards and management teams regularly weigh up. The approach ultimately taken can often play a major role in how quickly and how successfully a business can grow. For your business strategy to succeed, it’s important to have a clear understanding of your funding needs and what options exist to meet them.

HAVE A CLEAR UNDERSTANDING OF YOUR FUNDING NEEDS AND WHAT OPTIONS EXIST TO MEET THEM So what sources of funding are available? The answer to this question will depend on a number of factors, including what stage of growth the business is at (eg start-up, SME, mid-cap etc), the size of the business and the market in which it operates. As an initial guide, here are some of the more traditional sources of capital: 28 B US I NE S S P U L S E JUN E 20 1 6

Angel investor

Venture capital

This can be an individual or company that provides capital, usually for a business start-up, in exchange for equity in the business. Typical funding size is $50,000 to $200,000.

Also known as ‘seed capital’, this is a source of funding for early-stage and emerging growth companies. Venture capital (VC) funds typically invest in companies in exchange for equity. Before investing, VCs will typically look at the business product or service offering, the business model, barriers to entry, the strength of management and exit options (eg IPO, trade sale).

High-net worth individuals and sophisticated investors A high-net-worth individual (HNWI) or sophisticated investor (section 708 of the Corporations Act) is a person typically with net assets of at least $2.5 million or has a gross income for each of the last two financial years of at least $250,000. There is a number of regulatory considerations that need to be considered when dealing with HNWIs, so it’s important to speak with an advisor for further information.

Innovation and research grants The federal and state governments have established a number of programs to provide incentives for research and development, support for small businesses, and tax and duty concessions. Subject to meeting certain criteria, your business may be eligible for funding up to $250,000.

Bank loans A bank loan is a debt-financing obligation issued by a bank or financial institution to a company or individual. Banks will typically seek some form of security.

Initial Public Offering (IPO)/ reverse takeover An IPO is the process of moving from an unlisted company to a publicly traded company. In order to list securities on the Australian Stock Exchange (ASX), there is a number of requirements that need to be satisfied including, among other things, the preparation of a prospectus and corporate governance requirements. A reverse takeover involves a private company acquiring sufficient shares to control a publicly traded company. This route has historically been popular with technology companies, using listed resource and exploration company shells, to list on the ASX. The funding source that best suits your business may comprise one or more of the above options. We recommend you speak with a qualified accountant or financial advisor before finalising your decision. CCI also provides investmentreadiness advice and support. Call (08) 9365 7620 or email trade@cciwa.com ¢

END OF FINANCIAL YEAR ESSENTIALS

GOING PUBLIC

How to plan carefully for your biggest step yet

public listing, such as an IPO or a reverse takeover (backdoor listing), is a process by which companies can get access to public capital to grow and develop their business. Becoming a publicly traded company doesn’t suit every business, but a company contemplating such a move needs to ensure that it’s well prepared before starting the process. Here are my five tips for planning and implementing your IPO or backdoor listing:

1. Appoint your advisers early This may seem self-serving, however the role your various advisers play in a public listing is critical to the process. By advisers, I include lawyers, accountants, corporate advisers and even a knowledgeable company secretary. Just as experienced advisers can guide you through

and around any roadblocks, inexperienced advisers can lead you straight into them!

2. Get your house in order One of the most important parts of the public listing process is the completion of due diligence on your business. Due diligence is the process of going through the various elements of the company (corporate, business and financial) to ensure that all your records are in order and any information that will be put out to the public is supported by documentary evidence. This process can be quick or painful depending on how organised your company is.

3. Have your business plan ready When you commence the public listing process, you’ll be required to explain your business and how the public listing will benefit the

business going forward. Be sure to have written down, in simple terms, what your business is, how it operates and how it intends to use the funds raised from the public listing to grow and develop the business. You’ll also need to be able to talk about your business and engage with investors in order to promote the investment to them. Where your business has key technical elements, it’s important to be able to describe those complicated elements to investors in a way that is simple to understand without the benefit of your technical knowledge.

4. Be patient The public listing process is not short. It can take roughly between 3-6 months and can be labour intensive during that time. Directors and employees will be needed to respond to due diligence requests, meet with and present to brokers and

investors and respond to requests for information from advisers. It’s worth appointing someone within your business to be the contact point or process manager during the public listing to ensure the focus is not taken off looking after your business during this time.

5. Post listing requirements As you plan your public listing, it’s worth taking some time to consider what your first steps will be once you’re listed to help you focus on hitting the ground running. Ensure you have the right compliance professionals engaged moving forward. Toby Hicks is a partner of corporate law firm Steinepreis Paganin and has acted on numerous IPOs and backdoor listings. ¢

3 ways Cbus is building super futures in Western Australia 1.

Investing in property and development projects through our wholly owned subsidiary Cbus Property1, creating jobs and delivering returns

Easy administration for employers, with online options to join Cbus and pay employees’ super

Industry–specific super products for members, including insurance cover, financial advice and free access to the Cbus smartphone app

Contact James for your business super needs James Moore

Business Development Manager, WA

0437 688 538

jmoore@cbusmail.com.au

Cbus Property commercial project, 140 William St Perth

Cbus Property Pty Ltd is a wholly-owned subsidiary of Cbus and has responsibility for the strategic performance and management of all Cbus direct property developments and investments. This information is about Cbus. It doesn’t take into account your specific needs, so you should look at your own financial position, objectives and requirements before making any financial decisions. Read the relevant Cbus Product Disclosure Statement to decide whether Cbus is right for you. Contact 1300 361 784 or visit www.cbussuper.com.au for a copy. Cbus’ Trustee: United Super Pty Ltd ABN 46 006 261 623 AFSL 233792 Cbus ABN 75 493 363 262.

Business Pulse Mag May16 CCI Ad_130h x 184w_v1.indd 1

16/05/2016 11:26 AM

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END OF FINANCIAL YEAR ESSENTIALS

CLOUD ATLAS Navigating the virtual world of bookkeeping has become a logical progression for most businesses

loud bookkeeping for small business is no longer a question of ‘why’, apparently, but ‘when’. The switch from manual to virtual has happened and those that haven’t bought in risk being left behind. At least that’s the view of Megan Faraday-Bensley, a small business specialist with Prosperity Advisers, who told Australia’s Huffington Post: “Right now, the cloud is still your strategic advantage. Very shortly, it will be your strategic necessity as the way the world works and collaborates fundamentally changes.” But if you’re justifiably nervous about the integrity of the cloud – we know you’re thinking about that leak of nude celebrity photos in 2014 – then we’ve done some extra research for you.

A happy customer Peter Broberg is the Principal of Monitor Bookkeeping Services in Cannington and Kalamunda, a provider of bookkeeping and payroll services since 2007. He has 20 years’ experience in the finance sector and started using cloud software two years ago.

CORPORATE

“I realised two years ago that the benefits of using the cloud saved me significant time in processing data,” Broberg says. “At the same time, I also decided to utilise invoice and receipt capture technology that interfaces to cloud bookkeeping software.” Broberg says cloud security has not been a concern. “All cloud software providers utilise the latest security protocols,” he says. “They’re the same used for all the banks in Australia.” He says the cloud has saved him and his clients significant time. “No longer are your financial records spread across different files, locked in a single PC or inaccessible after hours or when you’re out of the office. Cloud accounting brings all your financials together in one place and makes them available to you – and your accountant or bookkeeper – anytime, anywhere and on any internet-connected device, meaning you are no longer tied to your desk or the office. “Most importantly for busy small business owners, cloud accounting has been created specifically to help make financial management easier and more cost-effective than ever before – it’s simple to set up and use, provides you, your

VOLUNTEERING

Make a positive impact www.perthnrm.com

30 B US I NE S S P U L S E J UN E 20 1 6

colleagues and your financial advisor with a crucial at-a-glance picture of your financial position, and saves both time and money.” Broberg says cloud bookkeeping won’t put him out of a job. “Absolutely not. Every business owner requires an accountant to submit their tax returns. The tax legislation is very complex and an accountant will still be required.”

Security: a closer look The inescapable truth about cloud bookkeeping is that confidential and personal data – including customer lists and your bottom line – are stored on someone else’s computer. Charles Kavazy, Director of IT Services at UK accounting firm Hawsons, says the security of cloud accounting depends on several factors including your attitude to risk, the nature of your data and the strength of the security processes carried out by the company hosting your data. “Some people argue that storing your data on the cloud can be more secure than storing it on your desktop or an on-site server,” Kavazy says. “The level of physical and electronic security that cloud service providers offer may be higher, depending on the risk involved, and the duplicated continuous back-up processes of cloud providers are probably

going to be better than most businesses would implement.” “Most cloud computing providers take great measures to ensure your data is safe, including backup power supplies, firewalls, data encryption software and regular, third-party security audits. They can also protect your data against floods and fires by having multiple servers in different locations.” The fact is, if you’re using internet banking, you’re already using the cloud.

A couple of cons According to some experts, desktop accounting software is still superior to cloud products – but probably not for long. It’s a rapidly evolving space. As it looks today, cloud software has all the features any business would need to get started. Other bells and whistles can be bolted on along the way. Ownership can be an issue. With most desktop software programs, you own the software and the data. Cloud bookkeeping sites require you to pay a monthly fee, so if you stop paying, you lose access to the program. On the plus side, cloud systems usually update automatically – just like updates on your phone – whereas purchased desktop software does not. ¢

END OF FINANCIAL YEAR ESSENTIALS

SIZE DOES MATTER

Small business can be the poor cousin when it comes to securing finance

A GABRIELLE CAMPION Journalist

ustralia is one of the easiest countries in which to start a business, yet more than 60 per cent of small businesses here fail within the first three years of operation. Securing finance has been identified as one of the biggest barriers our nation’s small businesses face. Bluestone Mortgages CEO Asia Pacific Campbell Smyth says it’s a situation that needs fixing. “Starting a new business is fraught with risks of all types, but there’s no question that it’s next to impossible to succeed without access to affordable capital,” Smyth says. “Most small and medium-sized enterprises say that availability and conditions of credit are key barriers to their business growth. “When you add to that a previous business or credit failure, which is not uncommon for

business entrepreneurs, then they are facing a massive hurdle.”

Risky business Smyth says small business owners are often forced to enter into precarious financial situations, putting themselves and often their families at risk. Two thirds of small business owners use their personal finance facilities to fund their growth, including credit cards with 20 per cent interest rates. Many business owners who have had some type of financial problem find it difficult to have finance approved – a previously failed business or a bad credit rating will, in most cases, result in an automatic rejection from a mainstream lender.

Seek an alternative Smyth advises small business owners to look outside the

FUNCTION CENTRE

mainstream banks and seek help from a specialist lender or broker – non-banks now make up a growing segment of the loan market. Smyth offers these tips for businesses taking the leap into non-traditional finance: Ask your broker if they work regularly with specialist lenders and make sure you choose a specialist lender with experience. Ask what proportion of self-employed people they lend to. Question how a loan will be structured and what the premium will be. “What it all comes down to is that there are opportunities for the right borrowers even if they don’t meet ‘ideal’ lending criteria,” Smyth says. “Being declined by a bank is no reason to give up.” ¢

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Q ASK THE EXPERTS

My employee’s probation is up, but we still have some worries about their performance – can we extend their probationary period?

It depends on how long their initial probation period is. During the probation period, you can assess an employee’s performance before they have access to an unfair dismissal claim – up to six months for most businesses or 12 months for organisations with fewer than 15 employees. You must always have a lawful reason to terminate an employee, but during the probationary period you aren’t required to provide warnings or the same procedural fairness as you would for an employee who has completed probation. To give your business the most flexibility, a good idea is to have a three-month probation period, which may be extended to six if required.

I am a food producer in WA and I’m concerned about the new food labelling requirements. What is changing and how soon will I have to implement the new logo?

YOU MUST ALWAYS HAVE A LAWFUL REASON TO TERMINATE AN EMPLOYEE 32 B US I NE S S P U L S E J UN E 20 1 6

The Federal Government’s new labelling system for food products will take effect on 1 July 2016 and will help consumers make more informed choices about the food they buy. You’ll have over two years from the commencement date to change your products’ labels to the new format. The new requirements will apply to all food products currently required to be labelled with country of origin under the Food Standards Code – all food offered for retail sale in Australia. The proposed country of origin labels for priority food grown, produced or made in Australia will identify two key

YOUR EMPLOYEE QUESTIONS ANSWERED standards – if the food was grown, produced or made in Australia and, secondly, what percentage of the ingredients in the food are Australian.

An employee has been off work for nearly five months, citing mental health issues. He’s used up all his personal leave and stopped supplying medical certificates. He says he doesn’t like the work arrangements and “can’t return to the position” – what should we do? First of all – know that this case is not uncommon and you can come to an arrangement that suits both you and your employee. Ask him for permission to speak with his treating doctor. If he refuses – which the employee is entitled to – then you can request that he attends a fitness for work appointment to determine his ability to perform his role in the foreseeable future. If alternative arrangements cannot be found, you should seek expert advice as to how you should proceed.

I have heard there have been some changes to the Certificate IV in Training and Assessment. Does this impact the qualification that I hold? The new TAE40116 Certificate IV Training and Assessment was endorsed in April 2016 and has replaced the TAE40110. The qualification structure has been changed to nine core units and one elective unit from seven core units and three elective units. Other key changes include two new core units – ‘Address adult language, literacy and numeracy, and design and develop assessment tools’.

Both of these units were existing elective units in the previous Certificate IV. There have also been amendments to the assessment requirements of other assessment and validation units of competency. If you’re actively working within the vocational education and training sector or you require the Cert IV as a part of your core job role, you’ll need to obtain the new TAE40116.

IT IS IMPORTANT TO CONSIDER THE CIRCUMSTANCES AROUND ANY BREAKS IN EMPLOYMENT Are casuals entitled to long service leave? In some cases, yes. If a casual has sufficient continuous service with their employer to qualify, they will be entitled to long service leave. This will be as holidays in the course of employment after

10 years of continuous service or as a payment on termination of employment after seven years (provided the cessation of employment is not due to serious misconduct). If there have been one or more clear breaks in the employment during this time, however, the service may not be continuous. It is important to consider the circumstances around any breaks in employment before determining if the continuous service has been broken. This is because the Long Service Leave Act 1958 (WA) contains some exemptions for breaks in employment that don’t count towards service but don’t break the service.

Can I direct an employee to take annual leave? Where your employees are bound by an award or agreement that expressly allows you to reasonably direct them to take annual leave, then you may do so. This is generally restricted to particular situations such as when an employee has excessive annual leave accruals or during an annual shutdown period for the business, ie over Christmas. For award- and agreement-free employees, employers may direct them to take annual leave where the direction is reasonable. Without a clause in an award, agreement or contract, it may not be possible to force employees to take a period of annual leave. If this is the case then the taking of annual leave may only be done if both parties agree. ¢

DANIELLE GLAZIER

Management Trainer

Danielle has worked with many WA businesses to deliver and assess the Certificate IV in Training and Assessment. Danielle currently maintains this qualification at CCI WA for both members and non-members.

TOMAS CONNOLLY

Employee Relations Consultant

Tomas has been on the road meeting with members to discuss their employee relations issues. Recently he has assisted members with a claim for unfair dismissal and a dispute regarding payment of wages.

DANIKA GUSMEROLI

International Trade Administration Officer

Danika works with manufacturers and growers of genuine Australian products and educates them about the benefits of leveraging country-of-origin branding as a marketing tool to give consumers strong confidence that the product is of a high quality.

DO YOU HAVE A QUESTION FOR ONE OF CCI’S EXPERTS?

editor@cciwa.com

@ CCI_WA #asktheexperts JU NE 2 016 BUSIN ES S PU L SE 3 3

BULLY, BE GONE If you think you can stop a bullying claim in its tracks by terminating the offending employee, think again

JESSICA HARCOURT CCI Employee Relations Adviser

he Fair Work Commission (FWC) recently quashed the general protections claim of an employee who was terminated after lodging multiple bullying complaints against his manager. When there were significant delays in the process of dealing with the complaints, he became unfit to perform his usual duties. He was placed in a temporary alternative role and shortly thereafter was found to be completely unfit for work. His employment was ultimately terminated six months after he was declared unfit for work and the employee then claimed he was unlawfully terminated because of the bullying complaints raised. While it was ultimately found that in this case the bullying

complaints were not the reason for the employee’s termination, you should proceed with caution when considering terminating an employee who has a bullying claim on-foot. If you are in this situation, there are a few things to consider before taking action:

1. Termination considerations The FWC only has scope to deal with bullying claims for existing employees. The primary remedy for bullying complaints is a ‘stop bullying order’. These are designed to stop the bullying behaviour and get everyone back to work. If an employee resigns or is terminated part way through the process, the FWC will no longer be able to deal with the claim at that point because the employee is no longer at risk of being bullied at work.

2. Claims of unlawful or unfair termination Terminating solely because the

employee has lodged a bullying claim will leave the employer open to other types of claims such as general protection or unfair dismissal – both claim types carry the potential for employers to incur significant fines of up to $54,000 per breach plus other remedies such as reinstatement, redeployment and compensation. General protections is where the employment is terminated because of a workplace right – for instance, where an employee lodges a bullying claim and is subsequently terminated, they may argue they had a workplace right to lodge that complaint and the employer has terminated because of their claim. Unfair dismissal claims are a separate claim where the employee argues their termination was harsh, unjust or unreasonable.

3. Valid reason and a fair process While in the case mentioned, the employer was able to demonstrate they had not terminated for an unlawful reason, if the employee

had lodged an unfair dismissal claim the outcome may have been quite different. The FWC found that the manner in which the employee was terminated was inherently unfair, but since the employee lodged a general protections claim rather than an unfair dismissal claim, the commission could not deal with the fairness of termination as part of these proceedings. For a dismissal to be fair, not only must there be a valid reason for the termination, but also a fair process must be provided to the employee. This involves allowing the employee to have a support person present, providing the employee with a right of reply and giving genuine consideration to the employee’s response. CCI can assist businesses through difficult terminations to help reduce the risks of a general protections or unfair termination claim. For more information, contact CCI’s Employee Relations Advice Centre on (08) 9365 7660 or email advice@cciwa.com ¢

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THE CLAIM GAME General protections claims have spiked in the last financial year – don’t be the next casualty

T SARITA LOVETT Senior Employee Relations Consultant

JASMINE YAP Employee Relations Adviser

he last financial year has seen general protections claims involving dismissal increase by 17.5 per cent. These are provisions within the Fair Work Act 2009 that protect employees from employers taking adverse action against them for reasons such as: Having or exercising a workplace right Freedom of association Engaging in industrial activity Workplace discrimination Adverse actions against an employee can include: Dismissing the person Changing the person’s job to their disadvantage Not giving the person their legal entitlements Not hiring the person Treating the person differently than others

Offering the person different (and unfair) terms and conditions compared to other employees

Know the legal landscape Exercising a workplace right includes the right to take personal leave or make a complaint. In responding to a general protections claim, the employer has the responsibility to prove there was no breach. Further, there is no qualifying period for employees to make a claim and no limit on compensation, which may include additional costs for hurt and humiliation. In one case, a centre manager of a storage site was transferred to another location with a reduced level of responsibility after an occasion where they left work

early to pick their child up from school. The courts deemed the subsequent alteration of the person’s role to ‘assistant centre manager’ was to the employee’s prejudice, enacted by the reason of personal circumstances and family responsibility. The employer was ordered to pay the applicant $32,000 for compensation for loss suffered. Employers must ensure their managers and HR professionals fully understand these risks when making employment-related decisions. CCI’s IR Master Class has limited spaces for HR professionals to develop their knowledge and experience across a range of industrial relations issues. Enquire today on (08) 9365 7660 or advice@cciwa.com ¢

Tel: Perth: 08 9303 4101 / Adelaide: 08 8326 3365

www.caledoniascaffolding.com.au Caledonia Scaffolding is a modern scaffolding, access and services company focused on maintenance and construc8on servicing the mining and energy sectors but with a strong presence in industrial, domes8c and commercial construc8on. We have been opera8ng for over 20 years and have grown to become one of the largest privately owned scaffolding companies in Australia We engage in the design and erec8on of managed temporary access and support structures supported by engineering and the provision of personnel such as scaffolders, riggers, crane and hoist operators and project management. With some 13,000m2 of facili8es space, 250+ employees and a comprehensive inventory of vehicles access equipment and scaffold materials, we pride ourselves in being self-‐sufficient and capable of undertaking the largest projects both at a prac8cal and financial level. Our capabili8es in the mining and resource industrial & construc8on industries include providing access services & solu8ons for: Acid Plants, Refineries, Marine Structures, Oil and Gas Plants, JeSes, Road and Rail, Mine Sites, Water Treatment Plants, major Commercial /Industrial building works. Much of our reputa8on and experience has been built on shutdown, upgrade and maintenance projects for some of Australia’s largest companies in the mining and resource industries. Our u8lisa8on of the interna8onally renown Layher scaffolding material, provides efficiencies in erec8on, quan88es of materials and rental requirements. We are TQCSI Safety Cer8fied, which complies with the requirement OHSAS 1800:2007 cer8fica8on. Caledonia was proud to be the first scaffolding company in Australia to obtain dual cer8fica8on for both ISO 9001:2008 and AS/NZS 4801:2001.

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Baulderstone Port Bonython Je1y Refurbishment

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JU NE 2 016 BUSIN ES S PU L SE 3 5

SYSTEMISING SAFETY Your OSH management system doesn’t have to be complicated – it needs to be written in a way your employees will understand and follow it

T RACHAEL LINCOLN CCI Senior Safety and Risk Consultant

oo many ‘off the shelf’ safety management systems are actually left on the shelf collecting dust and not doing what they’re supposed to do – improve your workplace’s health and safety and manage risk. Your occupational safety and health (OSH) management system documents how your business addresses safety and health. It doesn’t have to be full of jargon and complex processes – it should simply be an easy-to-follow collection of your OSH policies, procedures, templates, forms and activities. There are 10 things that should form the basis of your OSH management system:

and determines risk. Define the process for reporting hazards and incidents and when to investigate them. Ensure there is information on the most effective ways to control a hazard, so your workers don’t automatically jump to donning PPE when faced with an incident.

1. OSH policy

Most workplaces have at least one nasty chemical floating around at the back of a cupboard. Make sure your OSH management system provides instructions on the safety requirements for the use of hazardous substances and their storage.

This is a one-pager that describes your organisation’s fundamental commitment to OSH. It’s signed by the most senior executive, framed and displayed, so that anyone entering your workplace appreciates your organisation’s OSH values.

ENSURE THERE IS INFORMATION ON THE MOST EFFECTIVE WAYS TO CONTROL A HAZARD

2. OSH duties and responsibilities Everyone in the workplace has OSH responsibilities, but some employees have more than others. Document the safety responsibilities – according to the requirements of the OSH Act – of the organisation, your employees, managers, visitors and contractors.

3. Risk management Document the ways your organisation identifies hazards

36 B US I NE S S P U L S E J UN E 20 1 6

4. Emergency management Ensure there are written steps to follow, so your employees know what to do in case of an emergency and you have the necessary safeguards in place to minimise its effects.

5. Hazardous substances

6. Manual handling Most injuries sustained at work are the result of manual handling and it’s essential you follow practices to reduce the risk. If you can’t eliminate the need for manual handling, consider safer lifting techniques, the use of mechanical aids, team lifts and breakdown of the load.

7. Plant and equipment Employees need to know how to safely use plant and equipment. Activities such as inspections, testing and tagging

and maintenance should all be scheduled and documented.

8. Health Ensure your employees understand the organisation’s activities and expectations around drug and alcohol consumption, bullying, fatigue, stress and hygiene.

9. Training and competence Your organisation is required to provide OSH training and ensure your employees can perform their job safely. You must have evidence to prove you’ve fulfilled your duty to adequately train staff.

10. Communication and consultation Your employees are best placed to tell you about the hazards of their job and you need to provide them with information about OSH in the workplace. Define the formal and informal consultation methods used within your workplace. Depending on the nature of your business, you might also need to consider: hot work procedures noise management ergonomics confined space working alone/isolated work fatigue management working at heights PPE For more information about safety systems and managing OSH in your workplace, contact the CCI Safety and Risk Services on (08) 9365 7415 or email osh@cciwa.com ¢

MENTAL HEALTH CHECK Depression. Anxiety. Stress-related illnesses. They’re now part and parcel of what HR and managers have to be on top of each day. A new resource is at hand

s a manager or HR professional, it’s highly likely you will at some point have to manage an employee with a mental health issue. In fact, on the basis of current statistics, this will become integral to your work in the future. Managing people is complex and challenging in itself. Managing staff with suspected or known mental health issues is even more challenging, with additional sensitivities involved and specific legislative requirements you need to be across.

prospective employees with mental health issues from a combined perspective: namely, occupational health and safety, employment relations and workers’ compensation. The Managing Mental Health in the Workplace Kit is designed to be a practical resource that will guide you through situations such as: what to do in an emergency having an “R U OK?” conversation requesting information from a medical practitioner performance managing an employee with suspected mental health issues reasonable adjustments managing absences The kit also contains information about your legal

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obligations under Occupational Safety and Health (OSH), Worker’s Compensation, Fair Work and Discrimination legislation. Additionally, and in order to be as practical and relevant to employers as possible, it includes a number of documents such as pro-forma policies, checklists, letters and other supplementary documents commonly needed when managing mental health issues in the workplace. Keen to discuss a workplace mental health issue? Want to know more about the Managing Mental Health in the Workplace Kit? Contact Jennifer Low on (08) 9365 7415 or email osh@cciwa.com for further advice. ¢

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31032016

JENNIFER LOW CCI People and Safety Consultant

At CCI, our employee relations advisers and consultants are regularly contacted by Members looking for assistance with situations related to suspected or known mental health issues in the workplace. It might present as a performance problem in the first instance, but the underlying issue may be depression or a question around fitness for work. Because we at CCI have noticed a clear trend in the theme of calls from businesses lately and common arcs in how scenarios tend to play out, we’ve developed the Managing Mental Health in the Workplace Kit. This resource provides managers and human resource professionals with the practical resources and information required to appropriately manage employees and

JU NE 2 016 BUSIN ESS PU L SE 3 7

SNUFF OUT SMOKING

Helping your workers give up smoking can be a win-win for everyone

ere’s a statistic to make you pause: smoking currently costs WA about $3 billion a year in tangible and intangible social costs – and businesses bear a third of those tangible costs. The figures come from the latest Cancer Council of WA report, The social costs of smoking in Western Australia, which also extrapolates that smoking costs each WA resident $1,287 a year – regardless of whether they smoke or not. Health warnings about smoking are nothing new and the habit remains the largest single preventable cause of death and disease in Australia. Workplaces have minimum requirements under OSH legislation that need to be met (see fact box on this page), however organisations may wish to go above and beyond these requirements if they want to make a difference to the health of their employees.

So, what can you do? The good news for workplaces is that there now exists a great deal

of support and resources to tap into – there’s no need to reinvent the wheel. Here’s a list to get you started: 1. Adopt a policy. Cancer Council WA and the Department of Health have produced material to help organisations create a policy that works for them. For example, you may wish to incorporate into your policy a stipulation about smoking in company vehicles. Visit cancerwa.asn.au or tobaccocontrol.health.wa.gov.au for assistance. 2. Create a supportive environment to enable change. Put up some smoke-free signage around your workplace. You can order signage free of charge from the Department of Health’s Tobacco Control Branch. Display posters and provide brochures in high-traffic areas to promote the negative health effects of smoking – you can order these through Cancer Council WA. You can also order free resources from the Quitnow website at quitnow.gov.au 3. Promote ‘quit smoking’ activities and programs. Cancer Council WA’s Fresh Start program

Subiaco stubs out smoking Healthier Workplace WA has recognised the City of Subiaco – a CCI Member – as a Gold Recognised Healthy Workplace, partly due to its promotion of smoke-free workplace initiatives. The Fresh Start smoking cessation program was offered to all workers and those participants who completed the program were offered a one-off reimbursement of up to $50 towards the purchase of nicotine replacement therapy (patches and sprays). 38 B US I NE S S P U L S E J UN E 20 1 6

offers low-cost smoking cessation programs to workplaces across WA. The Quitnow website also provides useful information about the benefits of quitting and various methods to try. Encourage workers who want to quit to call Quitline on 13 78 48 – this service pledges to double a person’s chances of giving up successfully. There is also a range of phone apps and computer programs to check out, such as QuitCoach, My QuitBuddy and the Quit Calculator (which keeps track of how much money

you’re saving with each cigarette not smoked). And there’s the ‘Make Smoking History’ page on Facebook, which is regularly updated with smoking facts and figures. For further help and advice on workplace smoke-free strategies, contact Healthier Workplace WA on 1300 550 271 or email hwwa@heartfoundation.org.au For all advice about your OSH obligations in this area, call CCI’s ERAC team on (08) 9365 7500. ¢

Avoid a fine: know your facts The Occupational Safety and Health Regulations 1996 and the Tobacco Products Control Regulations 2006 outline the smokingrelated obligations of employers and those who control or manage enclosed spaces towards smokers. Failure to comply with the regulations may result in fines. Here’s what you need to know: The Tobacco Products Control Regulations 2006 prohibits: – individuals smoking in an enclosed public spaces –o ccupiers (those responsible for an enclosed public space) allowing an individual to smoke in an enclosed public space An occupier must take reasonable steps to prevent smoke from entering an enclosed space. If the premises are licensed, ‘no smoking’ signs must be clearly visible to individuals entering through a public entrance. The Occupational Safety and Health Regulations 1996 states an employer or self-employed person must not smoke in an enclosed workplace. An enclosed workplace has a ceiling or roof and walls or sides so that when all doors, windows or coverings are closed, the space is mostly or completely enclosed. Employers may have designated smoking areas and need to ensure the areas are not enclosed workplaces.

WINNERS

WINNERS ARE GRINNERS CCI congratulates its winning Members on their outstanding achievements

Pumps Australia

McMullen Nolan Group

Honda Invention Competition

Gold Recognition, Healthier Workplaces WA

Pumps Australia came in second place in the Honda Invention Competition in Melbourne last month with the Volcano 3000 industrial pressure cleaner. The competition, run by Honda Australia, encouraged the invention of new products powered by Honda engines. John Warne – who founded the company in his bedroom in Bassendean 20 years ago – says the Volcano 3000 stood out against its competitors by using only the 12 volt charge from the Honda GX270 recoil start engine to power the complete unit. “It’s quite a clever little machine and it’s quite simple too,” Warne says. “We’ve changed everything on the system to be 12 volt, even the ignition system, which is quite unique. Most people use 240 volt or generators or inverters but we’ve been able to do 12 volt the whole way through and it’s really safe.” “We make a big brother to this and sell it to mine sites – it’s that safe.” Warne says being a finalist in the competition rewarded the company’s innovative approach to manufacturing and showed the country they were pushing boundaries. “Everybody has been involved because the guys in the workshop built it, the guys in the office are involved in the marketing and planning of it and it’s been a nice reward for effort over a number of years ... plus there’s a little trophy that hangs in the office.”

NICE REWARD FOR EFFORT OVER A NUMBER OF YEARS

CCI Member McMullen Nolan Group (MNG) has achieved gold status recognition by Healthier Workplace WA (HWWA) for its health and wellbeing initiatives. To become a recognised healthy workplace, a business must demonstrate they have policies and procedures for workplace health and provide employees with information to support healthy behaviours. Chief Executive Officer and Managing Director Scott Anderson says the company works hard to deliver health, wellness and fitness programs to staff who are based in the office as well as out in the field. “We’ve identified the key areas of exercise, nutrition and lifestyle and have introduced practical initiatives that fit into our busy working lives,” Anderson says. “We strongly believe that a healthy work, life and family balance is the key to the wellbeing of our staff.” Some of MNG’s health and wellbeing initiatives include: installing bike racks, bike storage areas, change room facilities and lockers giving eskies to staff who work in the field to encourage them to bring a healthy lunch to work allocating time for Pilates sessions, health checks and education sessions provided by the company providing gym memberships for regional staff members giving staff healthy gifts and incentives such as pedometers, gym towels and sports vouchers evaluating their program through staff surveys and requesting ongoing feedback

If you have a winning story about your business or organisation you’d like to share, email

editor@cciwa.com JU NE 2 016 BUSIN ESS PU L SE 3 9

FIVE TOP FIVE

BUSINESS BUZZWORDS OF 2016

THEY DON’T HAVE TO TRUST EACH OTHER AND THEY DON’T NEED A BANK

Amplify No longer just a word that means to make something louder, the business world has latched on to ‘amplification’ as a synonym for ‘improve’, ‘increase’ or ‘grow’ – it’s got a higher cool rating because it grew out of social media’s description of messages that get picked up and repeated. According to business language consultancy The Writer: “Traditional businesses hope that by borrowing the lingo of more fashionable companies, some of that cool will rub off on them” – like baby-boomers using hashtags on Facebook... #awkward. Digital analyst Cain Richards adds: “2016 is all about business growth and to appeal to millennials or Gen Y, the belief is that ‘amplify’ resonates when delivering a killer business presentation.”

Wantrepreneur That person – you know the one – who talks a lot about being an entrepreneur or starting a business but never actually does anything about it? They’re a ‘wantrepreneur’. Consultant Joshua Schall explained in Business News Daily: “This is someone who always talks about starting a business but finds excuse after excuse not to. It can also be applied to individuals that have started a business but really just like bragging about starting a business compared to actually doing the work.” In fairness, a wantrepreneur might also be someone who really wants to be an entrepreneur and may well become one if they can ever afford to leave their job. You know, like 98 per cent of us.

Blockchain If the crypto-currency bitcoin blew your mind, you might want to sit down for this one. Blockchain is the technology underpinning bitcoin – it’s the part of the system that actually works best. And it’s now being harnessed to completely cut out the middle-men and third parties in digital transactions. Basically, total strangers will be able to hold and transfer digital money in a completely transparent way. They don’t have to trust each other and they don’t need a bank to serve as intermediary. Not just the late-night thought bubble of grown-ups playing Minecraft, blockchain was the focus of an invitation-only event on Richard Branson’s Necker Island last May. It’s a thing.

Dogfooding In 1988, Microsoft manager Paul Maritz allegedly sent an email to staff titled ‘Eating our own dogfood’, challenging them to increase internal usage of the company’s product. A buzzword best not to toss around at lunch time, dogfooding refers to the practice of a company using its own product to test and promote that product – the fusion of quality control and testimonial advertising. Risky if done publicly – think the guy demonstrating the potato peeler accidentally taking off his thumb – dogfooding is more likely to be done in-house. It’s very popular among software developers. The editor of IEEE Software believes the term’s origins lie in 1970s TV ads for Alpo dog food in which actor Lorne Greene said he fed Alpo to his own dogs.

Transformational change Transformational change is a shift in the business culture of an organisation resulting from a change in the underlying strategy and processes that the organisation has used in the past, according to BusinessDictionary.com A transformational change is designed to be organisation-wide, holistic, change-enacting, metamobilising, collaborative, multi-layered and enacted over a period of time. Used in a sentence: “This transformational change in Microsoft from a company that put resources toward mp3 players to a company that focuses on software development and operating systems was a seismic shift in their business modus operandi.” We’re sorry – that’s two minutes you can’t get back.

40 B US I NE S S P U L S E JUN E 20 1 6

HELLO GOODBYE

HELLO ITâ&#x20AC;&#x2122;S GOODBYE FOR ANOTHER EDITION AND

TO SOME OF CCIâ&#x20AC;&#x2122;S NEWEST MEMBERS.

Sweetlips Enterprises Pty Ltd

BSP Corporate

Clear Skies Australia

Emma Tatulli Director

Julius Carmona Founder

Sweetlips has been trading since 1995 and provides higher-end fish & chips made with local Western Australian fish. We also retail fresh seafood.

BACKBONEBMS is an online business management system that assists companies in developing & implementing management systems for various Operational Processes.

We are a Unmanned Aerial Vehicle (UAV) innovator and we work closely with our customers to customise a solution by building our own software and hardware in multi-sector industries.

T (08) 9242 5745

T (08) 6142 4500

M 0430 961 727

E info@sweetlips.com.au

E info@bspcorporate.com.au

E julius@clearskiesinc.com.au

W www.sweetlips.com.au

W www.backbonebms.com.au

W clearskiesinc.com.au

Michael Waldock Managing Director

Elixir Consulting Sue Viskovic Managing Director We provide business planning and tracking software for SMEs, and business coaching/consulting services for the financial advice profession. T 1300 683 680 E evolve@elixirconsulting.com.au

Integrate Sustainability Pty Ltd I JOINED CCI TO STAY UP-TO-DATE AND BE REPRESENTED IN LEGISLATIVE AND POLICY CHANGES THAT AFFECT MY BUSINESS

Graham Wilson Managing Director Railway safeworking company, with safety-focused staff servicing WA. T (08) 9144 1726 E Graham@RPAus.com.au W www.railpossessionsaustralia.com.au

Practical and client-focused environmental, sustainability, safety consultancy that aims to work with clients to integrate EHS&T into their day-to-day business. M (08) 9468 0338

W w ww.juiceconsole.com and www.elixirconsulting.com.au

Railway Possessions Australia

Belinda Bastow Director

E enquiries@integratesustainability.com.au

Forest Grove Technology Murray Westphal Managing Director We help companies improve their business planning, forecasting and data analytics through the supply of marketleading software and support services. T (08) 9481 2400 E admin@forestgt.com.au

W www.integratesustainability.com.au

WE JOINED CCI TO BROADEN OUR INDUSTRY NETWORKS AND TO OBTAIN HR ADVICE

W www.forestgt.com.au

To find out how you can advertise your business in Business Pulse:

(08) 9365 7544

advertising@cciwa.com JU NE 2 016 BUSIN ES S PU L SE 4 1

Vanguard Press have pooled their resources with Lamb Print to provide an unprecedented service offering. Having invested in state of the art printing technology as part of this integration we are able to provide an enhanced fast efficient service underpinned by traditional values. Our service offering provides a one stop shop incorporating commercial offset, digital, web offset, continuous NCR sets, cut sheets and mailing. For a quote or more information contact Vanguard Press on (08) 9328 1388 or info@vanguardpress.com.au vanguardpress.com.au 42 B US I NE S S P U L S E JUN E 20 1 6