Issue
02 MAR 2019
Foodland South Australia does it again!
YOUR INDUSTRY NEWS PROVIDED BY MGA INDEPENDENT RETAILERS
Scanning Code of Practice kits available now! SCANNING CODE OF PRACTICE If an item scans at a price higher than the shelf price you are en�tled to receive that item free of charge*. Where mul�ple iden�cal items are purchased, you are en�tled to receive the first item free of charge and the remaining items at the correct shelf price*. If a Scanning Code of Prac�ce ma�er cannot be resolved at store level ask for a feedback form or contact MGA on: 1800 888 479 *Condi�ons apply. For details, enquire at the Service Desk.
Scanning Code
SCANNING CODE OF PRACTICE If an item scans at a price higher than the shelf price you are en�tled to receive that item free of charge*. Where mul�ple iden�cal items are purchased, you are en�tled to receive the first item free of charge and the remaining items at the correct shelf price*. If a Scanning Code of Prac�ce ma�er cannot be resolved at store level ask for a feedback form or contact MGA on: 1800 888 479 *Condi�ons apply. For details, enquire at the Service Desk.
Scanning Code
Our Scanning Code of Practice kits come complete with everything that your business needs to ensure you are delivering the best service and value to your customers. The kits come complete with a handbook, posters and stickers that come in a variety of combinations for you to choose from, so you can select the most effective option for your business.
GET YOURS ONLINE NOW! MGA.ASN.AU | 1800 888 479
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OUR MISSION The mission of MGA Independent Retailers is to deliver the best possible industry specific business support services to independent grocery, liquor, hardware and associate store members.
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MGA NATIONAL SUPPORT OFFICE Suite 5, 1 Milton Parade, Malvern, Victoria, 3144 P: 03 9824 4111 • F: 03 9824 4022 admin@mga.asn.au • www.mga.asn.au Freecall: 1800 888 479
RETAILER DIRECTORS
CEO welcome
INDUSTRY NEWS 6
MGA Board of Directors
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Review of the Retail Grocery Industry Code of Conduct
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Small Business Crusader Retires
10 Small business can now stand up to big business 11 Increasing energy costs risk business viability 12 Ritchies Dromana wins best IGA in the world 14 McKell Institute report on legalising vaping in Australia
Debbie Smith (President): Queensland Grant Hinchcliffe (Vice President): Tasmania Graeme Gough: New South Wales Michael Daly: Victoria Ross Anile: Western Australia Carmel Goldsmith: New South Wales Chris dos Santos: South Australia Lincoln Wymer: Victoria Jeff Harper: Victoria
15 Foodland South Australia does it again!
MGA CHIEF EXECUTIVE OFFICER
28 Helping you reduce your energy costs
Jos de Bruin 03 9824 4111 E: jos.debruin@mga.asn.au
16 76th GALA Golf Day 18 Small Business Party NSW 18 WA container deposit scheme 19 Queensland MGAQ Committee 22 Uniting Independents 24 Grocery and Liquor Association (GALA) Updates 26 Food in the nude
LEGAL AND HR 31 Underpayment is not wage theft 32 Kaufland developments
CORPORATE PARTNERSHIP & MEDIA SALES
32 Expired or 'Zombie" workplace agreements
Mark Paladino 0417 264 331 E: mark.paladino@mga.asn.au
LIQUOR NEWS
EDITORIAL & PRODUCTION Genevieve Laidlaw E: genevievel@mga.asn.au
FOLLOW US ONLINE www.facebook.com/ MGAIndependentRetailers www.linkedin.com/company/ mga-independent-retailers www.twitter.com/ MasterGrocers COVER: Foodland CEO Con Sciacca and Marketing Manager Christopher Villani accepting this year's Roy Morgan award.
33 Long service leave entitlements on a transfer of business
35 NT bottle shop questions 'intimidate' town doctor 36 Benefits of being a liqour Accord member 38 VCGLR IPAA Awards
TRAINING 39 Salmonella outbreak 39 Allergy awareness – are your staff trained? 41 What is the difference between use-by and best-before dates?
MGA Corporate Partners DIAMOND
PLATINUM
GOLD
SILVER
BRONZE
ASSOCIATE
WAREHOUSE AND BRAND PARTNERS tasmanian independent retailers
CEO REPORT
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CEO Welcome 2019 is shaping up to be a very interesting and somewhat daunting year for people in the small business community and consumers alike.
Interest rates are low and could further decline, employment levels are the highest they have been for quite some time, the housing market has declined significantly, banks have tightened up their lending, the share market is strong, and the Australian dollar languishes at around 70 US cents per Australian dollar.
I hear a lot of talk, but I don’t see any walk – local and state governments have a culture of acknowledging the efforts and contributions of family enterprise and private businesses, but not for a second considering them when major decisions are being made as put forward to them by big business.
Couple these factors with an inconsistent political system, a union movement that continues to demonise employers and advocate for the most expensive and inflexible industrial relations regime in the world and the massive amount of inappropriate large scale shopping developments that have been allowed to go ahead over the years and what we have is an independent supermarket, liquor and hardware sector that has been “sucked dry” of any incentive or desire to invest, innovate and grow their businesses to employ more people and play an important economic and social role in the communities in which they trade.
I believe we, as constituents and voters, need to somehow make our local, state and federal governments and regulators more accountable and let them know that any new laws, new regulations, new building or commercial centre development decisions must be made with having a clear understanding of the effects of their decision on the livelihoods of local small business owners and operators.
In our industry sector particularly, we have witnessed firsthand the complete lack of disregard by local and state governments for the welfare of family enterprises and private businesses. Together we need to change the local and state government culture and values set toward fostering a strong family enterprise and private business sector in this country. All our local, state and federal government people have great delight in telling Australians that small business is the engine room of the economy, they are the drivers of employment, innovation and investment. Really?
Big businesses and developers are very proactive putting their ideas forward. Just take a look around at every major and regional city in Australia. They have heaps of resources, persuasive powers and presence. Developers have been allowed to successfully “crowd out” many small businesses, leaving their shopping precincts as ghost towns with multiple shop vacancies. Small businesses don’t make too many large-scale development proposals, they pretty much stick to themselves and do the best they can. When big business proposals are presented to local and state governments, be it planning and development proposals, law changes etc. all the local and state government representatives see is what big business has presented to them and are often made to feel excited.
Decisions are made with no thought of the negative economic or social consequences to small businesses and their families. The future of high street shopping, local shopping strips and neighborhood shopping centres is bleak if local and state governments do not adopt a culture and strong values set toward considering the impacts of their decisions upon family enterprise and private businesses. If they don’t adopt this culture immediately and all the strip shops are gone, one day, someone will ask “what happened”? If we genuinely aspire to a diverse economy including small, medium and large businesses then a question must always be asked before any decision is ever made, “How will this proposal impact the family enterprises and private businesses that make up the small business sector?”. On another very important note, we recognise the terrible hardships being experienced by members in North Queensland as a consequence of the floods and those impacted by fires and wish to assure members that MGA is at the ready to provide any support concerning staff and employees at this difficult time. Until next edition – keep fighting the good fight and good trading! Jos de Bruin CEO MGA Independent Retailers
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INDUSTRY NEWS
NATIONAL
MGA Board of Directors MGA’s Board of Directors work very hard as a national team to identify the needs of members around Australia. There are many local, state and federal matters affecting members that are prioritised and dealt with by MGA’s team on a day to day basis.
always strongly represented at a state and federal level. On behalf of MGA’s Board, I wish to thank Gino for his tireless energy, passion and time away from his business in striving to do what is right for his WA colleagues. Thank you, Gino, we know you will not be far away, and we will keep in touch with you.
As with all good teams, MGA’s Board has experienced some recent changes owing to retirements. It cannot be understated the great work that is done by MGA’s Board of Directors. They are fiercely independent and will only act in the best interests of members.
Jeff Harper
Jeff Harper | Victoria MGA’s Board warmly welcomes Jeff Harper, who has committed to taking up a vacant Directors position. Ross Anile
Gino Divitini and WA Minister Bill Johnson
Gino Divitini | WA MGA’s Western Australian Board Director Gino Divitini has announced, after 7 years of outstanding service representing WA retailers, that he will be stepping down from his role as Director. Our understanding is that Gino and Kate want to pursue a little more golf together. Gino, owner and operator of Hilton Supa IGA has played an active and important role in making sure the business issues and opportunities of all WA independent supermarket owners and operators were
Ross Anile | WA Congratulations and welcome to Ross Anile who has accepted the role of MGA’s WA Director to replace Gino Divitini. Ross is well known to many independent supermarket owners and industry stakeholders in WA and around Australia. Over the many years he has been involved with various state and national industry committees and boards, not to mention the many state and federal politicians Ross has also met along the way advocating for “common sense” policies that foster the growth of family businesses in WA. Ross comes to MGA with a breadth of experience, knowledge and capability. Ross and his brother, Joe, have owned and operated their family owned supermarket in Roleystone, Perth for 45 years. At one time the family also operated a successful packaged liquor store for 12 years. We warmly welcome Ross to the MGA
mga.asn.au | March 2019 | Edition 2
Board and sincerely thank Ross in advance for his service on behalf of WA retailers.
Jeff and his wife Linda are the proud owner / operators of 2 supermarkets in Melbourne. An Xpress store in Southbank, Melbourne CBD and a medium sized store in the SE suburb of Ashburton. Jeff is no stranger to the independent supermarket and liquor sectors. Not being a man to sit back, Jeff has always been involved with various grocery and liquor state and national committees and boards. A passionate family business owner, Jeff has always understood the many day to day commercial, competition, social risks and challenges of owning his own business. Jeff has represented our industry sectors on many occasions to state and federal governments in addressing matters of significant importance to the livelihoods of family enterprises and private businesses. On behalf of MGA’s Board and members, we warmly welcome Jeff as he takes up the position as one of our Directors.
INDUSTRY NEWS
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NATIONAL
Review of the Retail Grocery Industry (Unit Pricing) Code of Conduct It has been 10 years since the introduction of the Retail Grocery Industry (Unit Pricing) Code of Conduct. As a consequence, the Australian Government Treasury has been conducting a 10-year review into Unit Pricing – how it has been working, can it be improved, and should it be widened to capture hardware items for example? MGA has worked closely with Treasury in consultancy forums to provide its feedback, comments and views on the effectiveness of the “the Code” in light of the sunsetting clause stipulated in Part 4 of Chapter 3 of the Legislation Act 2003 (Cth) and has lodged a detailed submission supporting “no change” to the current “Unit Pricing” structure we are all now operating under. The original intent of the Retail Grocery Unit Pricing Code was to assist consumers deciding at supermarket floor level, in front of a shelf, what is the best value for a food or grocery item according to the grocery budget they were operating within. Owing to the many various pack sizes it was decided to introduce a unit pricing system that breaks down each product into units such as grams or litres. We believe that the customers of our members now rely on unit pricing as a comparison and convenient tool, which to date has aided consumers. Our members are of the view that the Code allowed and continues to allow shoppers to undertake educated decisions during their shopping experience, particularly since prices alone do not provide customers with adequate information about value for money. MGA has submitted that Unit Pricing
provides a platform for our members to demonstrate how the Code and its ability in assisting consumers compare different products, brands and sizes has benefited not only the customers but also the businesses. MGA surveyed members nationally to obtain verbatim feedback from them about the impact of unit pricing on their businesses. The commentary received indicated that our members did not see noteworthy impact on their business through the use of the Code, whilst others reported many advantages that stemmed from the Code’s application. Through our research, we managed to obtain a harmonious view that the Code should continue to operate beyond the 10-year sunsetting clause. However, MGA has caveats as to the renewal of the Code, which it has highlighted in its submission, just to ensure that the Code, if amended, remains fit-for-purpose and prescriptive, relevant to our members and necessary enough to protect them, without imposing overly burdensome obligations. MGA’s submission commentary addressed the following “Unit Pricing” elements; Effectiveness of the code, The market structure, Display requirements, Alternative units of measurement, 1000
square metres requirement, Exemptions to the Code and Minimum Range of Grocery Items and Exemptions. It is strongly evident that the majority of our members and their customers are currently enjoying the benefits of the Code as is. Treasury is considering to further expand the scope of the Code to hardware items; however, MGA submits that an expansion would overly complicate the Code’s application and would result in many difficulties arising, which include: increase of non-compliance, overuse of the ACCC to deal with consumers issues, upsurge in complaints, overheads and financial costs on businesses and confusion to shoppers. MGA is confident that the present Code is fit for its purpose as it has achieved its objective. The Code has operated well since it was implemented back in 2008, which is evidenced by the minimal issues that surfaced from its application. As such, change is unwarranted to something that is operating perfectly well, and the Code should be extended to operate. MGA looks forward to working alongside Treasury to further educate its members as to the Code and its associated benefits.
Aussie and Proud? So are we. For the last 30 years eftpos has been providing competitive and convenient payment solutions to all Australians. Today, we have become the first payment service to adopt the Australian Made logo. Tomorrow, is a new day: we are updating our infrastructure and seeking to adopt the most innovative product technology. This is our commitment to Australian consumers, merchants and the local industry.
INDUSTRY NEWS
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NATIONAL
Small Business Crusader Federal Minister Kelly O’Dwyer announces her retirement. Back in mid-January 2019, long serving coalition Minister Kelly O’Dwyer announced her retirement from politics effective from the date of the upcoming election, likely to be in May 2019. Minister O’Dwyer has served in many ministerial portfolios including; Assistant Treasurer, Women, Finance, Employment, and that of the all-important Small Business portfolio. Owing to Minister O’Dwyer also being the assistant Treasurer to Scott Morrison, this meant the Small Business portfolio was very strongly represented in the Cabinet too! Minister O’Dwyer has been
On behalf of MGA members all around Australia, I would like to express our gratitude to Minster O’Dwyer for her dedication and hard work in looking after small business people and making many crucial law changes in the best interests of the Australian Small Business community.
a very strong advocate and friend of small business, particularly, at the time of striving for Competition Law reform and strengthening the misuse of market power provisions – sec46 – in the Competition and Consumer Act (CCA). The announcement regarding this historical amendment to the CCA was made in March 2016 and legislated in November 2017. We, as an industry sector are very grateful for the dedication, work and energy Minister O’Dwyer has put into everything she does for family enterprises and private businesses in Australia!
all-important job of being a “mum” to her 2 young children, Olivia and Edward, and pursuing other interests outside of politics. Jon, Kelly’s husband has been an amazing support during Kelly’s very hectic tenure as a Minister in the Federal Parliament.
Minister Kelly O’Dwyer has decided to focus on the
David Gandolfo – COSBOA Director, PM Scott Morrison, Minister Kelly O’Dwyer and Jos de Bruin.
Extended Instant Asset Write-Off on now Small Business Minister Michaelia Cash and Assistant Treasurer Stuart Robert announced the introduction of legislation into Parliament that will boost, and extend, the instant asset write-off initiative for family enterprises and private businesses. Michaelia Cash and Josh Frydenberg making the announcement.
Have you heard of the Federal Government's instant asset write off? It’s about to get better!
that could be a great help to smaller independent supermarkets and liquor stores.
The legislation will increase the instant asset write-off threshold from $20,000 to $25,000 and extend the initiative for another year to June 2020.
Many members may be unaware of this initiative
On 30 January 2019, Federal Treasurer Josh Frydenberg,
This instant asset write-off allows small businesses
Image source: ntnews.com.au
with an annual turnover of less than $10m to claim immediate deductions of up to $25k for new or secondhand plant and equipment asset purchases such as vehicles, cool rooms, fridges, point of sale systems, equipment and so on. The assets must first be used or installed for use in the income year you are claiming for. For more information concerning this opportunity contact the Australian Taxation Office or speak with your accountant.
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INDUSTRY NEWS
NATIONAL
Small business can now stand up to big business MGA welcomes the Federal Government’s decision to allow easier access to justice for small businesses. Jos de Bruin, CEO of Master Grocers Australia said that, “When we were successful in reforming competition laws in 2017 small businesses saw a way forward to saving their businesses with the introduction of the ‘effects test’ into section 46 of the Australian Competition and Consumer Act. Now, with these further reforms, small businesses will have greater opportunity to fight for their rights against larger businesses where the Court believes it is in the public interest to do so.” Mr de Bruin continued, “Small businesses are inevitably hindered by the formidable costs of litigation and the prospect of facing a massive legal bill is an enormous deterrent, even though there may be a serious issue to defend. Small businesses simply cannot take on the bigger corporations that have deep pockets and who are able to garner financial resources to fund large legal firms as their representatives. “But it’s always been a typical ‘David and Goliath’ scenario when it came to a small business ‘taking on’ a giant business until now. We believe that the tide has turned with the introduction of these new laws. All those small businesses that have always felt they were simply wasting their time trying to fight big
businesses because they couldn’t afford the high costs can now re-think their approach. The new laws providing access to justice through the courts should make those who have been cautious in the past to re-think their position as they now have a greater opportunity to stand up and fight. Small businesses are a major force in our economy. It’s vital that the federal and state governments recognise the importance of small businesses in Australia and respect them as the engine room of the economy. Perhaps the introduction of these new laws is a step closer to achieving that recognition”. MGA wishes to thank all members and industry stakeholders for their vigilance in pursuing this “access to justice” matter with their local federal MPs and Ministers as well as the countless discussions and visits to Canberra. MGA also wishes to thank the strong efforts of the Australian Small Business and Family Enterprise Ombudsman, Kate Carnell and her team as well as the Council of Small Business Organisations of Australia (COSBOA). This is a very big win for small business and could not have been achieved without collective will and energy of all those involved.
DID YOU KNOW?
Things you probably didn’t know about Australia • Australia is as wide as the distance between London and Moscow.
• The biggest property in Australia is bigger than Belgium. • More than 85% of Australians live within 50km of coast.
• The first photos from the 1969 moon landing were beamed to the rest of the world from Honeysuckle Tracking Station, near Canberra.
• Australia was the second country in the world to allow women to vote (New Zealand was first).
• In 1880, Melbourne was the richest city in the world.
• Each week, more than 70 tourists overstay their visas.
• Gina Rinehart, Australia’s wealthiest woman, earns $1m
• Bob Hawke, the 23rd Prime Minister of Australia, was
every half hour or $598 per second.
• In 1892, a group of 200 Australians unhappy with
Government tried to start an offshoot colony in Paraguay to be called “New Australia”.
mga.asn.au | March 2019 | Edition 2
immortalised by the Guinness Book of Records in 1954 for sculling 2.5 pints of beer in 11 seconds. This record was at the same English Hotel where President Bill Clinton smoked a joint.
INDUSTRY NEWS
Increasing energy costs risk business viability Below is an extract from MGA’s 2019 National Wage Review, articulating the impact of significant electricity cost prices risking sustainable gross margins and inevitably, employment levels in stores. MGA will be advocating for a minimum wage increase that will not compromise members business viability. “Over the past 3 years MGA supermarket, liquor and hardware members have experienced unprecedented debilitating energy cost price increases affecting the viability of their businesses. Electricity costs have become the second largest cost to do business after wages, with rental and leasing costs being relegated to third.
solutions, energy costs continue to challenge the profitability and viability of MGA’s members.”
By way of background, MGA members enter into electricity contracts for a fixed term based upon a tender process and choosing the most cost-effective electricity usage contract option. Over the past 3 years members electricity contracts have expired and new contracts have been sought by MGA members by way of tender.
As MGA members know the only real and last variable lever to pull, to cut costs of doing business, is to reduce staff levels. This is an initiative no small business owner wants to go through and will always seek alternative methods to reduce costs wherever possible.
Once favorable electricity contracts providing affordable costs per kilowatt consumed have now become the most significant and debilitating cost to do business owing to the significant electricity cost increases across the nation. Gross margins in grocery, retail and hardware are razor thin. Prices cannot be increased to absorb the unsustainable electricity price increases owing to the challenges of competition from large and multi-national retailers such as Coles, Woolworths, Bunnings and Aldi. MGA members are high users of electricity as they must operate their “energy hungry” cool rooms, refrigerators, freezers, lighting, heating and ventilation and point of sale systems to open their businesses to consumers every day. Despite the best efforts of MGA members to embrace energy saving behaviours in their stores, investing in new and more efficient equipment and installing solar energy
MGA has dealt with member cases where rapidly rising electricity costs have caused members “bill shock”, and in some cases, energy retailers threatening to stop electricity supply.
It is extremely important members receive the correct advice along with immediate solutions as to “how” to reduce electricity kilowatt consumption and how to reduce kilowatt costs. MGA’s energy partner is Aussie NRG, owned and operated by Max Haas, his family and his dedicated team. Members are encouraged to contact Max for assistance. Max has assisted many members to reduce their electricity bills by providing energy saving suggestions and solutions at store level and analysing all parts of an electricity bill to ensure all billing segments are correct and the best price.
Contact Max Haas at Aussie NRG 1300 440 224 contactus@aussienrg.com
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INDUSTRY NEWS
INTERNATIONAL
Ritchies Dromana JUDGED BEST IGA INDEPENDENT SUPERMARKET IN THE WORLD Late in February 2019 Ritchies Supermarket Group CEO Fred Harrison, and General Manager Marketing and Merchandise, Jarrod Swaine, together with colleagues and industry stakeholders travelled to San Diego, California in the United States to attend the IGA International Retailer of the Year Awards. mga.asn.au | March 2019 | Edition 2
After winning the 2018 Australian IGA Retailer of the Year Award, together with numerous national departmental awards the Ritchies Dromana store became eligible for the IGA International Retailer Awards held annually in the United States. Impressively, the Ritchies Supa IGA Dromana, Victoria, won the 2018 IGA International Retailer of the Year at the Global IGA conference. If anyone from our industry sector has not been to visit this exquisite store
INDUSTRY NEWS
located on the Mornington Peninsula in Victoria, then make sure you put it on your list of things to do. It is a stunning store with a mouthwatering offer of fresh fruits, vegetables, aged meats, seafood, delicatessen, bakery, sushi train, fresh flowers, tastings and samplings, huge gluten free and specialty food ranges, and an impressive range of locally grown and locally produced food items. In 2017 this “tired” store was significantly extended and extensively refurbished. With great vision from the strong and committed Ritchies team and the support of the Mornington Peninsula community the store was completely transformed into a vibrant and exciting place to shop. Some customers coined the
phrase, “it is like a crab pot – once you are in there you can’t get out” – that’s how good it is! Fred and his team have always lifted the bar with each store improvement, Dromana is no exception in its presentation of the ultimate in retail standards. Fred said, “Our stores reflect our commitment to be the best in independent retail. It’s a wonderful feeling for the team at Ritchies Dromana to have their efforts recognised internationally.” Congratulations to the dedicated and passionate Ritchies team for winning this prestigious accolade as Best IGA Retailer in the World!
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McKell Institute report on legalising vaping in Australia MGA has for many years been advocating to legalise e-cigarettes or vaping devices. It is viewed by many pro-vaping advocates that vaping devices, regarded as a healthier alternative to smoking with tobacco, would eventually replace tobacco products as has occurred in other countries around the world. MGA believes that all members should be able to stock and sell vaping devices with nicotine. Nicotine is prohibited from sale owing to nicotine being classified as a poison in the federal Poisons Act. For nicotine to be allowed to be sold with vapourisers, nicotine must be removed from the Poisons Act as a “poison”. It is heartening to see that the McKell Institute has recommended that vapourisers be reviewed and adopted by political parties. Below is an extract from the Sunday Telegraph which indicates that major parties are facing an internal push for vaping with nicotine to be legalised. “Lifting a ban on electronic cigarettes would help thousands of Aussie smokers kick the habit, new research has found. A damning report into the Government’s ban on vaping by the McKell Institute claims Australia is “out of step” with other western nations and is at risk of missing out on a “huge public health opportunity” to reduce the harm caused by cigarettes. In Australia, smoking is the leading cause of preventable death and illness but nearly three million Australians continue to smoke. The latest report reveals smoking rates in the UK and US — where vaping is legal — are falling faster than in Australia for the first time. E-cigarettes are currently illegal but there is a push to lift the ban to help smokers kick the habit. Australia is one of just 30 countries where battery-powered cigarettes that vaporise flavoured nicotine are illegal. The products can only be imported with a prescription for up to three months.
mga.asn.au | March 2019 | Edition 2
Weeks out from the election, both major parties remain opposed to vaping despite a growing number of MPs from both the Government and Labor pushing for the ban to be lifted. Late last year, Health Minister Greg Hunt bowed to internal pressure from his party room and commissioned research on the potential health benefits of e-cigarettes which isn’t expected until after the election. If elected, Labor confirmed it would consider the findings of the report but doesn’t believe there is enough evidence to support a policy change before the election. The latest research found that while vaping is not “risk free”, the long-term use is no more than 5 per cent as harmful as smoking. “Vaping provides another quitting strategy at no cost to the public purse,” the report found. “Legalising vaping has enormous potential to improve public health, particularly for disadvantaged smokers who are disproportionately affected by smoking-related disease.” The research also debunked the theory that e-cigarettes act as a “gateway to youth smoking”, finding no link between the products and an increase in smoking rates over the past 10 years. President of the Australian Drug Law Reform Foundation Alex Wodak and Associate Professor Colin Mendelsohn, chairman of the Australian Tobacco Harm Reduction Association, who wrote the report, have called for e-cigarettes to be sold as a consumer product rather than a medical device. “There is no case for excessive taxes on vaping products on public health grounds as this will lead to less vaping and increased smoking,” the report said. Source - Annika Smethurst, National Political Editor, The Sunday Telegraph
INDUSTRY NEWS
SOUTH AUSTRALIA
Foodland South Australia does it again! For the second year in a row Foodland South Australia has won Roy Morgan’s National Supermarket Annual Customer Satisfaction of the Year Award. In 2017, and again in 2018, Foodland supermarkets have been rated as having the most satisfied supermarket customers Australia-wide.
What an incredible feat and a credit to Foodland CEO Con Sciacca, Marketing
Manager Chris Villani, the team at Foodland House and of course, the magnificent Foodland supermarkets. South Australia is often referred to as the “home” of the independents and this result once again vindicates that statement. Con, the Foodland Team, and Foodland retailers take great pride in putting their customers first in everything they do, striving always to live their values to be trusted, reliable and honest. This Roy Morgan Award has been operating for 8 years. Foodland also won this prestigious award in 2013 and 2015.
Foodland CEO Con Sciacca and Marketing Manager Christopher Villani.
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Cashless Self-Checkout
CashGuard Payment
Internet Shopping
Café Bump Bar Style System
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INDUSTRY NEWS
NATIONAL
76 GALA Golf Day th
THE 76TH ANNUAL GALA GOLF DAY WAS HELD ON MARCH 7 AT THE KEYSBOROUGH GOLF CLUB WHERE 24 GROUPS PLAYED A RELAXED AMBROSE COMPETITION. The GALA committee played a large part in making this day a success yet again, and the voluntary committee contributed countless hours of hard work. The GALA Golf day remains a key industry event and is well supported by retailers, corporate partners, supplier partners and the wider industry. The weather was turned on for the event, despite rain the prior day and the players all enjoyed the 10.00am ‘shot gun’ start, with play ending shortly after 2.30pm. The course was in extremely good condition, with the team at Keysborough Golf Club (KGC), supporting in everyway possible to make the day a great success. MGA CEO – Jos de Bruin
mga.asn.au | March 2019 | Edition 2
INDUSTRY NEWS
Suppliers went the extra mile to dress up their sponsored holes with umbrellas, flags, eskyies, tasting tables, and competitions, which all added to the great atmosphere of the course.
The winning teams on the day were: 1 Brown-Forman | Net score 54 | Julian Haines, Toby Middleton, Darren Schmidt 2 Lion | Net score 55 | Aaron Scalzo, Adam Macpherson, Rob Mantel, Dean Matthews 3 Premium Beverages | Net score 55 | Theo Kyriacopoulos, Ari Dimitrakis, Liam Ganley, Jonathon Rayson-Hill A BIG THANKYOU AND ACKNOWLEDGEMENT TO OUR SPONSORS ON THE DAY. • Platinum Sponsors | Metcash & MGA
• Gold Sponsors | Adroit Insurance & Risk, Asahi, FoodWorks,
The Supercart team at the chipping competition
The range of competitions on the course were varied – Ritchies with the major hole in one to win a choice of: $50K of Ritchies vouchers, $50K in Gold Bullion or a $50K Flight Centre voucher. Holes in one were also supported by Golf Select, Lion and CUB, which were not won again this year. Longest Drive, Straightest Drive, Nearest the Pin, chipping and putting competitions rounded out the day.
Premium Beverages, Lion & Aussie NRG.
• Hole in One Competition Sponsors | Major—Ritchies—with • Donations and in kind support received for the numerous raffle items were all greatly appreciated
• Our volunteer golf pro Ryan McCarthy • The Reach Crew for support around the course and 2 of the
crew who managed to sink a drinks cart in the bunker on the ninth! Fortunately, no one was hurt and both crew members have a spirited story to tell.
Aaron Scalzo – Lion, Jan Allat
a very generous $50k, Lion & CUB—24 cases of beer, Golf Select—$1,000 travel voucher.
The day's format proved very popular with players, sponsors and supplier partners and will continue to be a key industry event supported by a strong independent sector creating new friendships, strengthening existing ones and providing funds raised on the day donated to the Reach Foundation. Reach work tirelessly to deliver workshops for over 40,000 young people around the country every year.
Thankyou to all who participated and helped make the 76th GALA Golf day a huge success.
MC George Kovits & guest speaker Ross Hensaw
After play was followed by an early buffet dinner at 3.30, where our MC for the day, George Kovits, MGA Liquor President, introduced Fred Harrison CEO of Ritchies and GALA Patron, Fred spoke strongly about GALA, the independent sector and ensuring industry was connected. Our MC then introduced the special guest on the day, Ross Henshaw, who is a former Australian Rules footballer who played for North Melbourne in the VFL. Henshaw was a tough defender and played in either the back pocket or half back flank for North Melbourne in the 70’s and early 80’s.
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NEW SOUTH WALES
WESTERN AUSTRALIA
Small Business Party NSW
WA Container Deposit Scheme
MGA members may be interested to know that a NSW Small Business Party (SBP) has been founded by former prominent Sydney Councillor, Angela Vithoulkas. The SBP will field 4 or more delegates in the next NSW election to be held in March 2019.
MGA is an active participant in the Western Australian Container Deposit Scheme task force.
By way of background, the Small Business Party is an Australian political party founded in 2018 by City of Sydney Councillor, Angela Vithoulkas. After more than 30 years in business, Angela has seen and fought for all the issues faced by business owners, across the country. Small businesses and our communities are facing tougher conditions today than we have for some time; energy prices are skyrocketing, housing is unaffordable, payroll and land tax are inflating costs, and increasing levels of red-tape are negatively impacting business operators. The time has come for someone to stand up to the NSW Government and say “Enough is enough” – small b usinesses are major employers, they are families, they are local communities, and they are the heart and soul of this great Australian nation.
Working with the WA Department for the Environment and numerous industry stakeholders there are many matters being covered to ensure the CDS in WA will be implemented seamlessly and without any cost or red tape burdens for MGA members. The launch of the WA CDS is likely to be early in 2020. Minister for the Environment, Stephen Dawson, has stated that the WA CDS will not be launched until he is 100% sure that it will work well and has the “buy in” from the WA community. The task force is taking the learnings from other states and making sure to avoid the mistakes that they have made. The task force is determined to “get it right”, given the massive geography WA encompasses. MGA WA Director, Ross Anile, and Jos de Bruin are both CDS task force members. We will keep members updated as any progress arises.
The Small Business Party in NSW is ready to be their voice – to be their champion.
QUEENSLAND
North Queensland Floods No doubt members from around Australia have seen the horrific floods caused by torrential rain after many years of drought in North Queensland in late January and February. Our thoughts are with everyone impacted by the devastating flooding in Townsville, Charters Towers, Cloncurry, and the many other regions in Far North Queensland. The MGA team called a number of members (owners and managers) in affected areas to offer any advice and support. Whilst members were down about their situations they certainly were not out. They showed a steely grit to get over this disaster and were determined to work through the challenges and get back to a normalised life. MGA recognises the impact of the 2019 floods and that many
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members will be at risk of financial and mental stress. Many retail businesses will have their own way of recovering from these extreme weather events. On many occasions members may struggle under the weight of massive financial losses resulting from damage to their stock, fixtures and fittings and physical shop as well as the loss of trade during and after the event. Even when they manage to re-open, sales can be heavily impacted for many months as the entire trade area is generally affected and takes time to recover. MGA may be able to assist with any staffing matters, leasing queries, insurance queries and general advice concerning the recording and documentation of what has occurred. We ask that members contact MGA or fellow colleagues for support and “a shoulder to lean on” during these difficult times.
INDUSTRY NEWS
NATIONAL
Don’t just renew, review & get the right protection for you. We know you don’t want to spend your time worrying about insurance, but would your current insurance be enough to see you through? We’ve worked with MGA to develop a tailored insurance solution to meet the specific needs of their members. Let your insurance industry experts take care of everything for you. Call your local Broker today and rest easy knowing you’re in good hands. “Adroit provide ideas for preventative measures and procedures so we focus on what we are best at. I have confidence in them!” Jean Cowley. Owner – IGA St Leonards & Barwon Heads.
Contact your local broker for a FREE insurance review. 1300 402 756 | myadroit.com.au
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INDUSTRY NEWS
NATIONAL
Queensland MGAQ Committee On 14 February 2019 the MGAQ committee had its first meeting for the year in Brisbane to discuss a variety of QLD industry issues and opportunities. Committee members travelled from all over Queensland to attend the meeting including Cairns, Toowoomba and the Sunshine Coast. The committee planned and arranged to have a number of meetings with key industry stakeholders, Government representatives and the Minister for Small Business Shannon Fentiman. Key matters of concern were discussed including;
• Trading Hours
It was determined there are approximately 3 years left of a 5-year moratorium of no changes to the current restriction of trading hours. MGA will investigate how and why big businesses were able to open on restricted days during the Chinchilla Melon Fest.
• The ongoing debilitating cost of electricity
• Planning and zoning matters • Retail Tobacco Licensing • A review of Container Deposit
Legislation that was implemented in November 2018; and
• Plastic Bag Ban implemented in July 2018.
the Queensland Independent Brewers Association (IBA) to the meeting. Andrew joined the meeting to discuss the prospects of working closer together to realise the possibilities of joint business initiatives. The Wine Industry Association President, Michael Hayes, who lives in Stanthorpe, was unable to join the meeting owing to extensive and damaging bush fires in that area. Queensland Small Business Champion Maree Adshead also joined the meeting to discuss the opportunities to showcase Queensland small businesses during small business week from 27 – 31 May. MGAQ committee representatives, Debbie Smith, Roz White and Jos de Bruin, together with IBA’s Andrew Sydes, visited Parliament House to meet with Minister for Small Business Shannon Fentiman. The major opportunity for discussion concerned how Queensland local businesses – independent supermarkets, beer, cider and wine producers, fresh produce, dairy, cheese and other food producers could work with each other to grow Queensland businesses in an eco-system to provide competition to the big chains and drive for successful Queensland businesses. The MGAQ Committee also met with Deputy Director General for Small Business – Steven Koch to discuss a range of matters and opportunities concerning small business in
Queensland, including being able to leverage the opportunity to create an event promoting local fresh food growers and beverage producers (wines, beers and spirits) to help celebrate Queensland small businesses working together at the forthcoming Queensland Small Business Week from May 27 – 31 2019. MGA Queensland members must be able to offer consumers a whole of meal solution including local beers and wines in order to grow their businesses and be sustainable into the future. Other matters discussed by the committee included;
• Expired agreements – Zombie
agreements – Bill Shorten will legislate to terminate Expired Agreements – what does this mean for members?
• Scanning Code of Conduct –
modernisation of the code itself and the relevant point of sale communications
• Treasury Unit Pricing 10-year review –
recommended to leave as is – it works perfectly well – MGA has discouraged extending Unit Pricing to Hardware
• National Wage Review – currently
underway by MGA – all member surveys have been collated and at this stage it is unlikely our industry sector can absorb any form of future wage increase as determined by the FWC.
The most compelling discussion concerned an initiative that will bring locally produced Queensland fresh food, grocery, dairy, cheeses, small goods and beverage businesses together to create an “eco system” of small businesses working together to grow their respective businesses in the face of ever-growing competitive challenges from the 2 big chain stores and Aldi. The MGAQ committee meeting welcomed Andrew Sydes, representing
mga.asn.au | March 2019 | Edition 2
L to R: Peter Lee, Mark Meszoros, Chris Antonieff, Mark Paladino – MGA, Roz White, Peter Piconne, Andrew Sydes – IBA, Terry Stehbens, Wayne Mason, Stephen Koch, Deputy Director General QLD Small Business – Debbie Smith, Terry Slaughter.
INDUSTRY NEWS
NATIONAL
Introducing our latest corporate partner MB Refrigeration is a commercial refrigeration company specialising in commercial supermarket trade and light industrial. Their services include complete fit outs for new and refurbished stores, refrigeration and mechanical solutions, supply and installation of refrigeration cases and coolrooms, and all refrigeration equipment. They also specialise in natural refrigerant solutions and unique applications, to facilitate client requirements. MB Refrigeration is a close-knit, family focused team, creating a great atmosphere to work which reflects in the service provided within the independent retail sector.
MB Refrigeration pride themselves on keeping up to date with the latest technology and energy efficient products, ensuring your refrigeration systems are the latest state of the art designs and operating at maximum efficiency in order to reduce running costs. Our distinguished reputation is a result of our interest in revolutionising the refrigeration industry. Long term we believe regular maintenance to commercial equipment will extend not only the life of your plant but the overall look of your store and its presentation. Please feel free to contact our team to discuss further options.
MB Refrigeration’s clients include Metcash IGA Distribution, Champions Group, IGA supermarkets, Lamanna Direct, Foodworks Supermarkets, Reddrops group, Ritchies group and boutique independent traders.
Contact MB Refrigeration (03) 9729 1997 enquiries@mbrefrig.com.au
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INDUSTRY NEWS
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Uniting Independents THE INDEPENDENT HARDWARE GROUP EXPO ROLLED OUT AGAIN IN ADELAIDE IN FEBRUARY BRINGING TOGETHER THE BIGGEST GATHERING OF TIMBER AND HARDWARE RETAIL EXPERTS AND SUPPLIERS IN THE COUNTRY.
Jos de Bruin, Meena Iskandar & Ann Sanfey.
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It’s more than just a chance to network and celebrate successes, it’s part professional conference and part supplier fair.
MGA TMA was proud to be an exhibitor and immersed in this event with people who own and operate Mitre 10, Home Timber & Hardware, Thrifty-Link and |True Value stores across the country.
supplies industry. Approximately 2,000 attendees representing over 500 independent hardware and trade businesses and 200 exhibitors were present over the three-day event.
Acquiring a prominently positioned stand, MGA TMA were well represented by CEO – Jos de Bruin, Mark Paladino – Trade & Business Manager, Meena Iskandar – Workplace Relations and Ann Sanfey – MGA TMA National Membership Manager.
The Adelaide Convention Centre was filled with everything hardware.
The Expo is considered one of the flagship exhibitions for the home improvement, timber and building
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Celebrating Achievements One of the most exciting parts of the Expo is the recognition of stores and individuals who have achieved great results or done exemplary work for the wider group.
MGA TMA members receiving accolades this year include: 2018 National Trade Centre of the Year Store Provan’s Home Timber & Hardware Store, Clifton Hill, VIC Members Barry, Jarrod and Marnie Rosenberg You’d be hard pressed to find a more impressive trade outlet in the highly competitive Melbourne market than at Provan’s. The team continue to improve in all aspects of trade execution with efficiency and professionalism.
The team pride themselves on being a reliable business partner to their customers – the introduction of a food truck/ coffee van in the drive-thru and the decision to move to 6.30am openings were a direct result of listening to their tradies. 2018 National Garden Centre of the Year Store McLaren Vale Mitre 10, McLaren Vale, SA Members Mark Loveday, Brian Lawrence and Linda Provis Since Mark, Brian and Linda took ownership of this store, including a garden centre already at the top of its game, they have continued to reinvest in new ranges and store presentation to create a fresh and inviting offer for locals. With a history of managing and building award-winning stores, Mark has managed to raise the bar yet again since taking on this venture. In a competitive retail market, this store has managed to grow the garden category.
The business has strong brand commitment and compliance and executes effective LAM campaigns to promote their range and expertise to the market. Supplier of the year awards recognises key partners that have consistently delivered quality commercial outcomes for Independent Hardware Group and our members over the last twelve months. Nominees have demonstrated a longterm willingness to partner with IHG, loyalty to their brands and attitudes that are consistent with their core values to build successful Independents. IHG members are surveyed as part of the judging process to determine the suppliers that are customer-focused and who work hard within the IHG network to drive sales, profits and a point of difference at store level.
McLaren Vale Mitre 10, McLaren Vale, SA
Most of their business is generated from structural timber, but they also specialise in furniture grade hardwoods, western red cedar and other unique species. Upstairs features a large showroom for finishing items such as doors, flooring, skirting, architraves, cladding and decking.
Management invest in their people by developing their team and employing knowledgeable and experienced garden centre staff to build trust amongst customers. The store is famous for promoting bulk pot offers and soil ranges.
MGA TMA member Tilling Timber won the prestigious award of 2018 Supplier of the year. 2018 Supplier of the Year – BUILD Store Tilling Timber, Kilsyth, VIC Members Norm Tilling Supportive Structure With the Australian home construction and renovation markets less certain than they have been for the last few years, IHG members will be welcoming the strength of the national network displayed and outlined at the recent Expo. MGA TMA is looking forward to working with IHG in fostering a continued close working relationship and we are excited by the prospect of growing the MGA TMA membership to become a stronger and more united industry association dedicated to the wellbeing of family and private timber and hardware business.
Tilling Timber accepting their award.
The purpose-built site, constructed in 2015, has been an overwhelming success for the Rosenberg family, growing their customer base and increasing spend from existing builder accounts. The layout and range were specifically designed to service trade customers and incorporates all key elements such as a multilane drive thru, dedicated trade desk, fully undercover timber and logical traffic flow to the shop floor.
Provan’s Home Timber & Hardware Store, Clifton Hill, VIC
INDUSTRY NEWS
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INDUSTRY NEWS
NATIONAL
The Grocery and Liquor Association Updates G
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The Grocery and Liquor Association (GALA) was formed 85 years ago after the First World War, as a voluntary community fundraising arm of Master Grocers Australia. GALA’s purpose is to represent both the grocery and liquor industries in supporting community organisations while fostering goodwill, friendships and networking opportunities for all companies (wholesalers, retailers and suppliers) willing to be involved.
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GALA conducts major annual industry community/charity events throughout Australia including industry golf days, breakfasts and the annual GALA ball. The GALA Patron, Fred Harrison says, “The industry events are a catalyst to network, build relationships and catch up with industry friends with proceeds from the various events donated to the Reach Foundation to go toward funding much needed youth programs in our community”. The GALA committee consists of a number of grocery and liquor industry representatives who willingly volunteer their time to support worthy community needs ensuring the trade is always presented with the freshest and liveliest approach to fostering a community spirit within our industry.
Introducing your GALA Committee Paul Holmes | Bulla / GALA President Mark Paladino | MGA / GALA Vice President Aaron Scalzo | Lion Angela Lindrea | Reach Dale Clark | MGA Helen Maxwell | Ritchies John Gay | Metcash Jos de Bruin | CEO MGA Louise Merlino | Asahi Lifestyle Beverages Marcus Aquilina | Mitchelton Peter Wagner | ALM Theo Stratopoulos | Independent retailer Travis La Rocca | Strike Force Gala has raised in excess of $1.3M for the Reach Foundation in the past 20 years.
SAVE THE DATE
GALA Industry Ball | 23rd August 2019 * New committee members in bold.
WYNNS 2018 COLLECTION –
L I M I TED RELEAS E
TAKE YOURS HOME TODAY
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INDUSTRY NEWS
NATIONAL
Food in the nude New Zealand is ditching the plastic packaging from fruit and vegetables in supermarkets. In a recent MGAQ Committee meeting discussion concerning the independent supermarket sector leading industry best practice in terms of reducing waste, prominent Queensland Sunshine Coast retailer Roz White raised the concept of “food in the nude”. Roz felt our industry sector could take the lead on this allimportant initiative which could not only help to reduce waste but significantly increase sales of fresh produce. Below is an extract of an article sourced from a New Zealand industry publication which shares rich insights into the “food in the nude” concept that has delighted NZ customers. “Food in the nude” is a New Zealand campaign to end plastic packaging for fresh produce in supermarkets. Foodstuffs have signed the NZ Plastic Packaging Declaration which is committed to making all store and private label packaging 100 percent reusable, recyclable or compostable by 2025. The NZ Herald reports that sales of some vegetables have soared by up to 300 percent after a number of New Zealand supermarkets ditched plastic packaging. A group of supermarkets have abandoned the use of plastic wrapping for virtually all of their fruit and vegetables in a project labelled ‘food in the nude’. Nigel Bond, owner of one of the stores, says their new shelving system reminded him of when he was a kid going to the fruiterer with his Dad and one could smell the fresh citrus and spring onions. He says by wrapping products in plastic we sanitise them and deprive people of this experience. “When you take on these projects, they
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can be a disaster and lead to customer pushback but in my 30 years in the supermarket industry this simple change has resulted in the most positive feedback from customers I have ever received.” The initiative is part of the war against plastic. In New Zealand the days of singleuse plastic shopping bags are numbered – most supermarkets are no longer providing them at the check-out – while the government late last year agreed to regulations for a mandatory phase-out across all retailers from July 1. Bond says he and store manager Gary May first came up with the idea over two years ago: “At the time we noticed an increasing amount of fresh produce was being supplied in plastic wrapping. We thought this was crazy and vowed and declared to do something about it. “I went on a study tour to the United States and saw what the Whole Foods supermarket chain is doing over there,” he says. “They have a massive range of fresh food and their merchandising is almost an art form.” Bond began discussions with growers and suppliers, most of whom he says were happy to look at ways of providing produce free of plastic packaging.
all bacteria and chlorine, so we are confident the water we’re misting with remains pure.” Bond says some produce – including berries, grapes and some tomatoes – still come in plastic containers while mushrooms are packaged in cardboard trays. Most of this packaging is, however, recyclable. He says Foodstuffs is also trialing paper alternatives to foil seafood bags and fibre-based deli trays. Foodstuffs have signed the NZ Plastic Packaging Declaration which is committed to making all store and private label packaging 100 per cent reusable, recyclable or compostable by 2025. It has also introduced recyclable food trays – a measure that gives customers the opportunity to divert more than 80 million trays from landfill every year. MGA members are encouraged to look at all forms of entrepreneurship and innovation in their stores to seek a point of difference and to vigorously compete against the 2 giants and the overseas discounter.
A new refrigeration shelving system for displaying fresh fruit and vegetables was installed along with a process known as ‘misting’ to help keep items fresh. “Vegetables are 90 per cent water and studies have shown that misted produce not only looks better, retains its colour and texture, but also has higher vitamin content,” Bond says. “We’ve also installed a reverse osmosis system that treats the water by removing 99 per cent of
Photo – courtesy nzherald.com.nz
INDUSTRY NEWS
NATIONAL
How Private Company Tax changes will affect your cashflow The government is proposing a number of changes to the treatment of private company loans (‘Div. 7A’ loans). The major proposed changes, most of which are to apply from 1 July 2019 include:
• Increased interest rate – anticipated to be more than 3% higher
• 10 year complying loan term replacing both 7 and 25-year loan terms
• Previously quarantined loans having to be repaid over 10 years – with interest
• Trust distributions (UPE) to private companies to be deemed loans – repayable with interest
Making FBT easy The 2019 FBT lodgment season is upon us and the ATO have certain target areas:
• Car parking benefits • Salary packaged meal entertainment • Motor vehicle exclusions • Gift and restaurant vouchers • Uber and taxi travel • Failure to identify benefits and lodge a return Call Phil Ibbotson or Rami Kulafi to discuss this or any other business matters you may have.
• Extension of review period for Division 7A amendments increased to 14 years
The changes will have significant cashflow impacts for many businesses.
(03) 9824 5533 or www.imaccountants.com.au
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INDUSTRY NEWS
NATIONAL Malvern, Victoria 3144 Suite 5, 1 Milton Parade, 4 4022 P 1800 888 479 | F 03 982 .asn.au | mga .au .asn mga admin@ 063 263 004 44 | ABN 8 2114 Code RTO
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mga.asn.au | March 2019 | Edition 2
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INDUSTRY NEWS
NATIONAL
Supporting independents 2018 saw Edgemill Group bring a whole new portfolio into play, going from a “predominately spirits based business into a spirits and wine business”. Edgemill Group enjoyed double digit growth last year and launched BeGin Pink Gin and Old #15 Bacon Bourbon. David Hounsome, the National Sales and Marketing Manager, is excited about increasing the acreage of Edgemill vineyards and to launch Black Bart Spiced Rum. He says that these new launches have tapped into the continuing trend of consumers drinking less but better”. “Black Bart Spiced Rum is a small batch hand crafted spiced rum which signals our intent to supply excellent quality spirits that offer exceptional value at the higher value end of the market. Consumers are prepared to experiment and seek out innovative and different products. The consumer enjoys the ‘discovery’ of new products. “The launch of Black Bart Spiced Rum in partnership with Ritchies IGA has paid tribute to the ‘independents first’ motto for which we stand which has finally started paying off and delivering the kind of results our independent retail partners deserve”. Edgemill’s relationship with independent liquor partners remains the business’ cornerstone and Hounsome believes that suppliers and retailers working more closely together is the greatest opportunity for 2019.
IS M A NY S H A D E S
“I believe the independent retailer should support suppliers who support them exclusively, but they are few and far between in the spirits category. We are committed to their sustainable future and we believe by offering good quality, value for money products along with innovation, the independent liquor retailer can compete and flourish in the future market when they can co-exist on their own merits. “Edgemill’s growth is directly related to the enthusiasm and engagement of our independent retail partners, so we will be seeking their support for Black Bart Spiced Rum and any other NPD we have planned for 2019. Their support fuels our NPD research and development and our trading model is simple – ‘Best price on a single case’ – so we can get on with the very real job of creating the point of difference they so badly need to compete effectively. “Our independent retailers are slowly learning that their future lies in a portfolio that differs from the national chains.”
mga.asn.au | March 2019 | Edition 2
Family winemakers since 1889
LEGAL AND HR
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NATIONAL
Legal and HR Underpayment is not wage theft We have all heard of employers occasionally paying incorrect wages to their employees. In most cases this is not deliberate, and it is not uncommon for an error to be made in making payments of wages. Where an error has been detected the error is soon rectified. Most employers join associations that provide them with the correct wage rates and these days employers and employees have access to government bodies that provide a wealth of information about the need to ensure the correct payment of rates and penalties. A misinterpretation of an award or agreement has led in some cases to underpayment of wages which an employee is able to claim and be paid. There errors are not deliberate or intended to defraud a person of their lawful entitlements. Even if the correct monies are paid in instalments there is never any unwillingness on the part of employers to make up for lost payments. Unfortunately, there is now a strong suggestion amongst some governments that failure to meet wage requirements amounts to what is being called ‘wage theft’. Last year the Queensland Government called for hearings to investigate what was referred to as ‘wage theft’ and was seeking to criminalise what was referred to as stealing from employees. Currently, the Western Australian Government is considering what constitutes ‘wage theft’ and whether it amounts to a criminal offence.
no doubt that an underpayment could easily happen in some circumstances, and this would, in most cases, hardly amount to theft. Perhaps we need to accept that there will always be those who will deliberately set out to avoid making the correct payments to their employees. Those who engage in these practices should be forced to pay a price for such behaviour. However, care needs to be taken to distinguish between errors being made in what is becoming a complicated award system and making a mistake in the calculation of a wage rate, or a penalty rate, can hardly fall into the category of a criminal offence mainly because there is no real intent to deprive the employee of a right. Perhaps we should reflect on whether our wages system has become too complicated and that we don’t really operate under truly modern awards at all?
The question that arises is whether non-payment of wages or underpayment of wages could be a criminal offence, and does it really amount to stealing?
Have you been affected by fire or flood?
Where it can be proven that a person deliberately sets out to avoid paying the correct entitlements due to an employee, such as knowingly paying a lesser amount and expecting the employee to work long hours may constitute an offence that is theft. There are undoubtedly some naïve and vulnerable employees who are taken advantage of by unscrupulous employers but that doesn’t necessarily apply to all employers.
DON’T FORGET MGA LEGAL AND HR ARE HERE TO HELP!
Separating the non-payment of a penalty rate payable in an award by an otherwise compliant employer could not, and should not, be categorised as a deliberate and wilful action. Awards are not the easiest instruments to follow and there is
Call our specialist team 1800 888 479 (option 1)
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LEGAL AND HR
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Kaufland developments Since the beginning of 2019, efforts against the proposals for hypermarkets by the German-owned supermarket giant Kaufland have been well under way, continuing since September 2018.
Any queries relating to the submissions, the hearing or the Kaufland proposals generally, can be directed to MGA’s Legal and HR team on 1800 888 479 option 1.
On 8 February 2019 the Directions Hearing for the second tranche of proposed sites (Mornington, Oakleigh South and Coolaroo) was held. It appears there has been a significant increase in awareness of the Kaufland proposals by various local bodies and individuals, evidenced by the notable increase in the number of opposing submitters since the first tranche of sites (Epping, Chirnside Park and Dandenong). The full hearing, by the Advisory Committee of Planning Panels Victoria, commenced on 25 February 2019 and MGA will be making various submissions to the Committee throughout the 4-week period of the hearing, on behalf of its members. MGA strongly encourages all members and stakeholders to continue reaching out to local and state government representatives as well as customers to ensure the voice of local business and family enterprises is heard loud and clear.
Expired or ‘Zombie’ Workplace Agreements If we look back at the “Work Choices” era we will recall it as a time when there was greater opportunity to enter into flexible workplace agreements. They were easier to negotiate and there were easier processing procedures. Then, there was a time when an agreement could be made between an employer and the employees that simply had to pass the ‘no disadvantage test’. This meant that agreements could include reduced penalties in exchange for higher wages, so that employees did not miss out on entitlements. The problem now is that the wages have crept up to be level with the award wage entitlement, but the penalties have stayed at the same level. This leaves the employee in many cases at a distinct disadvantage.
mga.asn.au | March 2019 | Edition 2
Many of these agreements still exist, and even though these agreements all had an expiry date, the law states that each one continues to exist until an application is made to the Fair Work Commission for the agreement to be terminated. Many employers are aware that they may be operating under an agreement that is out of date, but it is a perfectly legal document and there is no compulsion for them to terminate these agreements. The employer, a union or an employee may take that initiative if that it their wish. The Fair Work Commission will of course always consider carefully whether there is any disadvantage to either party if the agreement is terminated and will also consider whether the termination is in the public interest. In most cases an expired
agreement would be terminated. There has been considerable publicity of late that a political decision may be made to terminate all expired agreements and employers who currently have these so called ’zombie agreements’ or ‘dead agreements’ should be aware of the likelihood of termination being implemented in the near future. Employers who find an application has been made to the Fair Work Commission to terminate an agreement should seek assistance immediately. Moving across to the General Retail Industry Award from a simplistic agreement may present some difficulties but MGA can assist with this transition.
LEGAL AND HR
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Long Service Leave entitlements on a transfer of business Purchasing or selling a business is not as simple as agreeing on a figure. Whether you are the vendor (old employer) or the purchaser (new employer), there are consequences as to the entitlements and liabilities for employees working for the old employer. Both permanent or casual employees will be accruing a right to long service leave once they are employed, although an employer should start to prepare financially for continued accumulation after a period of five years. If there is a transfer of business, the accrued long service leave entitlement liability will move to the new employer. Consideration must also be given to other entitlements such as annual leave, sick leave and redundancy. The rules for long service leave entitlements are currently contained in state and territories laws. In all states and territories, full time, part time and casual staff start accruing long service leave from the date they commence employment. However, they are generally only entitled to take long service
leave after working between 7 and 10 continuous years for the business. Section 22(5) of the Fair Work Act 2009 confirms that continuous service for long service leave purposes is not broken if an employee is dismissed by their former employer and re-engaged by their new employer. This is also confirmed by the long service leave legislation in each state of Australia. This means that their long service leave will continue to accrue irrespective of the transfer of business or change of employer, and their previous service counts towards their total period of continuous service. Therefore, upon a transfer of business, the liability for transferring any employees’ long service leave automatically transfers to the new
employer, regardless of whether or not they were compensated for taking on this liability, or if the new employer was informed of the outstanding long service leave entitlements prior to settlement. There is generally a provision in the contract of sale that the payment for long service leave will be part of the negotiated settlement deal, but only if the employee has been employed for at least five years. It is therefore crucial when negotiating a sale of business that the employee entitlements to long service leave are fully disclosed and considered as part of the transaction. Otherwise new employers may be held liable to pay employees significant amounts for their long service leave without any way to claim that amount back.
New look. Same Style.
FOR MORE INFORM AT ION OR T O PL ACE A N ORDER, PLE ASE CA LL YOUR ASA HI PREMIUM BE VER AGE S REPRE SEN TAT IVE OR CUS T OMER SERVICE ON 1800 090 378
LIQUOR NEWS
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NORTHERN TERRITORY
Liquor News NT bottle shop questions ‘intimidate’ town doctor Katherine’s well-regarded GP, Dr P.J. Spafford, is concerned about the approach to law-abiding citizens by the town’s liquor inspectors.
there, two or three, heavily armed, looming over potential customers and insinuating that everyone is a grog runner.
There is some concern the bottle shop questioning is too intrusive.
“They input details on an iPad while eying you suspiciously but will not tell you what they are inputting nor what information is on the system that they have access to. They say it is “Police Information”. Secret police information that you, as the accused, have no right to see.
In a social media post to the Katherine Times in February, a reader suggested the police needed to embark on an education campaign on this change in alcohol buying policy. Dr Spafford listed his concerns in a letter to us. In the interests of community debate, and education, we have included his full letter below. From Dr P.J. Spafford. “The Katherine Grog Busters (KGB) placed in bottle shops are intimidating and I believe overstepping the mark of decency and human rights. They stand
“I find it offensive as a law-abiding citizen of legal age, I go to a legal retailer, selling a legal product, from legal manufacturers, and I am treated like I am doing something wrong. “You have to say that you are going to drink what you buy at the address on your licence, or more questions and accusations follow. So, what happens if you give that bottle of wine to someone as a birthday present? Or you take a
6 pack to a mate’s BBQ? Or a carton on a fishing trip? Even to give a carton to someone as a Territory thank you, you have now lied to the police. What will be the charge? What will be the punishment? All very scary. “This level of intimidation and accusation is reminiscent of the Brown Shirts used by Hitler to menace the population. It is way over the top. “Perhaps the grog runners become drug runners, selling illegal substances from dubious manufacturers to under-age minors, because then the government will assist by testing the substance to make sure it is safe. “This Government is crazy, unbalanced and oppressive. They are killing the Territory by insinuating we are all criminals. Growing the economy and encouraging people to move here, does not start with making it a Police State.” - Dr P.J. Spafford, Katherine.
Source: katherinetimes.com.au
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LIQUOR NEWS
NATIONAL
Benefits of being a liquor accord member MGA encourages all its members to join and participate in their local Liquor Accord. Successful liquor accord groups deliver real benefits for your local store and the whole of the community. The benefits of being a liquor accord member include:
• a reduction in under-age drinking, anti-social behaviour and
crime, and alcohol-related violence in licensed venues in your community
• safe, enjoyable entertainment and social environments for venue patrons
• improved compliance with the liquor laws and your reputation as a compliant venue
• collaborative and supportive relationships between licensees,
• customised materials and resources tailored to meet your requirements
• access to the latest liquor accord news, regulatory changes and industry updates.
To find your local Liquor Accord visit your state or territory liquor commission site: NSW liquorandgaming.nsw.gov.au Victoria vcglr.vic.gov.au SA cbs.sa.gov.au NT nt.gov.au WA rgl.wa.gov.au TAS treasury.tas.gov.au/liquor-and-gaming
local councils, patrons, residents and police
50th Anniversary at Mitchelton Estate In August 2019, Mitchelton celebrates its 50th Anniversary of the first vine planting on the Nagambie Estate by Melbourne entrepreneur Ross Shelmerdine in 1969. Over 50 years ago, in 1967 Shelmerdine, commissioned wine industry stalwart, Colin Preece to locate the best location in south east Australia capable of producing outstanding wines. The brief also dictated that it was also required to be ‘exceptionally beautiful.’ Preece, who is still considered one of Australia’s greatest and most influential winemakers, chose an old grazing property, prized for its climate, soil and proximity to the waterways. In 1969 Shelmerdine acquired the land calling his new winery Mitchelton, a derivation of Mitchellstown which was the name explorer Major Thomas Mitchell originally intended for this piece of land upon its original settlement in 1836. The Nagambie Estate today boasts 105 vineyard hectares of Riesling,
mga.asn.au | March 2019 | Edition 2
Chardonnay, Marsanne, Shiraz, Grenache and Cabernet Sauvignon. The past 5 decades has seen a change in ownership at Mitchelton before Gerry Ryan and son Andrew purchased the property in 2011. The Ryans have dedicated substantial resources to develop both the wine and hospitality aspects of Mitchelton, with the vision to become Central Victoria’s iconic wine, food, art and hospitality destination. “The past two years has seen exciting development at the Estate putting our great Goulburn Valley region on the map. Our wines are the heart and soul of what we do at Mitchelton and I look forward to what the future holds with vineyard replanting and winery equipment upgrades,” said Managing Director Andrew Ryan. The PREECE range has also made a proud return to Mitchelton. A fitting tribute to founding winemaker and
masterful blender, Colin Preece. The PREECE collection creatively explores Victoria’s diverse viticultural landscape to craft the best varietal wines, from that region in that given vintage, to a contemporary fruit driven style. “It’s nice to have the PREECE brand back home where it belongs and performing well. The plan ahead is to now develop our Heathcote range of luxury wines. We know we do Victorian Shiraz well from our icon Print Shiraz, and our Toolleen vineyard in Heathcote with its unique Cambrian soil is producing exceptional quality fruit and interesting parcels.” Mitchelton – Proudly family owned.
mitchelton.com.au
IRON JACK 4.2% LAGER NOW AVAILABLE
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LIQUOR NEWS
VICTORIA
VCGLR IPAA Awards The Victorian Commission of Gambling and Liquor Regulation (VCGLR) has taken out the Institute of Public Administration Australia’s (IPAA) 2018 Innovative Regulation Award. The award recognised the VCGLR’s innovative approach to risk-prioritisation through its digital compliance tool which is used by the VCGLR to better identify licensed venues that are of higher risk of harm. The tool brings together data from a range of sources to help to inform decisions about the venues our inspectors visit, when they are visited and why they are visiting them. The IPAA Leadership awards highlight excellence and innovation of teams and organisations working in and with the Victorian Public Sector. A spokesperson for the regulator said: “The VCGLR is proud to have been recognised for our innovative approach to regulation and targeting our resources to reduce harm.”
mga.asn.au | March 2019 | Edition 2
TRAINING
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NATIONAL
Industry Training Salmonella Outbreak An investigation is underway in South Australia into salmonella cases where nine people have been hospitalised. Early stages of the investigation indicate the salmonella outbreak may be linked to raw egg products, pate or barbeque meat. Symptoms of the infection include fever, vomiting, diarrhoea, headaches, stomach cramps and loss of appetite. Younger children, the elderly, pregnant women and people with an impaired immune system are more at risk from the infection.
This is a reminder to handle and store food correctly. Australian Food Law Standard 3.2.2 states that food business owners have the responsibility of making sure that employees who handle food in a retail environment or food contact surfaces follow correct food safety procedures. Employers have a duty to ensure all employees are trained in the correct knowledge and skills to ensure that the food that they are serving, or selling, is safe.
Allergy Awareness – are your staff trained? What is a food allergy? Food allergy is an immune system response to a food protein that the body mistakenly believes is harmful. The reaction to a food can be potentially life threatening. A food allergy is not the same as food intolerance. A food intolerance is the inability to properly digest or fully process certain foods. This may cause discomfort but is not life threatening. The most common intolerances include lactose, gluten, yeast and sulphite. Food labelling rules in Australia state that the ten most common allergens (peanut, tree nuts, milk, egg, fish, shellfish, wheat, sesame, soy and lupins) must be declared on packaging. Some food such as foods sold fresh in delicatessens must either have ingredients displayed or have ingredients available in case a customer asks about allergen content. Correct allergen labelling can mean the difference between life and death for people with food allergies, so it is vital that food businesses get it right. Allergen awareness is the responsibility of everyone who works in the food service industry. The law in Australia requires food businesses to provide accurate information when a customer asks about potential allergens in the food they are served or sold. All staff need to be aware of the risks food allergies pose.
The Allergen Awareness course has been designed to assist owners and staff in any food business to gain knowledge about food allergens, and to develop best practice procedures for making their food business safe for customers with allergies. Upon successful completion a certificate will be issued.
2019 MGA Course Guide is available now!
The complete 2019 MGA Training Course Guide is now available outlining all our courses on offer to keep your business, and staff, compliant. MGA Industry Training courses are practical and relevant. Delivered and supported by accredited, specialist staff, who work in partnership with industry to ensure we offer modern, up to date training that complies with legislation. Available as both online and face to face courses, MGA Industry Training provides the flexibility to suit your individual or organisational needs.
GET YOURS ONLINE NOW! MGA.ASN.AU | 1800 888 479
TRAINING
NATIONAL
What is the difference between use-by and best-before dates? Knowing the difference between the use-by and best-before date is important for your business, as this will save you money. If the use-by and best-before dates are monitored correctly it will reduce the amount of perfectly edible food being discarded. Use-by dates can usually be found on products that are likely to spoil quickly such as raw meats, dairy products and pre-packaged salads. Use-by dates indicate a date after which an item of food is likely to have spoiled to the extent that it is not safe to eat. It is illegal to sell products that have past their use-by dates as this may pose a health or safety risk to the consumer. If caught selling items past their use-by dates you will be hit with hefty fines. Correct handling and storage are also critical to ensure the quality and safety of the food item, especially keeping the food in a fridge which is at the correct storage temperature. Storage instructions can be found on the labelling of the product or packaging. Best-before dates appear on tinned, frozen foods and fresh food that keeps for a long time, such as eggs. As opposed to the use-by dates, best-before dates are focused on the quality of the product and not the safety. Items of food can be still consumed after the best-before date; however, the texture, flavour and nutritional value of the product will be less and will continue to deteriorate with time. To ensure the continued safety of the food product, it is very important that the food is stored in the correct manner. Information on this can usually be found on the packaging. Remember, if the product looks and smells suspicious after the best-before date then you should not sell it.
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TRAINING
National Online Courses MGA delivers training and compliance solutions specific to the needs of independent retailers. We have a range of training and compliance solutions readily available for members. *Log in to our website with your member login to order your courses at these member prices. Call us on 1800 888 479 if you need your log in details.
Manage Training System (MTS) Manage Training System (MTS) is an easy to use training program – set up training per department, allocate courses to staff, monitor results and have complete training records for all staff. Either use included HR policies or upload your own including staff rosters!
Customer service training Ensure your staff have the skills and knowledge to build relationships with your customers, suppliers, fellow team members and management.
CUSTOMER SERVICE BASIC
CUSTOMER SERVICE ADVANCED
Duration: 20-30 minutes Member price: FREE
Duration: 45 minutes Member price: $20
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TRAINING
Online & face to face training MGA Industry Training offers discounted training for all members. Courses are online or can be conducted face to face at your business for 10 or more employees! Responsible Service of Alcohol, Food Safety, Employment Law, Customer Service, plus more!!!
Tobacco training This course covers information on the legal obligations for the sale and service of tobacco, non-tobacco smoking products, smoking accessories, e-cigarettes and e-cigarette accessories in each respective state/ territory. Training ensures your staff comply with Tobacco Retailing Laws – protecting your business.
STATE BASED TRAINING Duration: 30 minutes Member price: FREE
Don’t forget to log in for your member discounts! Visit www.mga.asn.au to see our range of training courses!
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CELLAR DOOR
RESTAURANT & PROVEDORE
HOTEL & DAY SPA
ABORIGINAL ART GALLERY
Central Victoria’s iconic wine, food, art and hospitality destination and luxurious place of escape.