2019 MGA IR issue 03 May

Issue

03 MAY 2019

MGA fights ‘big box’ retailers.

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 entitled to receive that item free of charge.*

Scanning Code of Practice

Where multiple identical items are purchased, you are entitled to receive the first item free of charge and the remaining items at the correct shelf price.* If a Scanning Code of Practice matter cannot be resolved at store level ask for a feedback form or contact MGA on: 1800 888 479 * Conditions apply. For details, enquire at the Service Desk.

Scanning Code

For computerised checkout systems in independent supermarkets

Scanning Code of Practice If an item scans at a price higher than the shelf price you are entitled to receive that item free of charge.* Where multiple identical items are purchased, you are entitled to receive the first item free of charge and the remaining items at the correct shelf price.* If a Scanning Code of Practice matter cannot be resolved at store level ask for a feedback form or contact MGA on: 1800 888 479. * Conditions apply. For details, enquire at the Service Desk.

Scanning Code

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.

Contents 5

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 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

MGA CHIEF EXECUTIVE OFFICER Jos de Bruin 03 9824 4111 E: jos.debruin@mga.asn.au

CORPORATE PARTNERSHIP & MEDIA SALES Mark Paladino 0417 264 331 E: mark.paladino@mga.asn.au

EDITORIAL & PRODUCTION Genevieve Laidlaw E: genevievel@mga.asn.au

FOLLOW US ONLINE

CEO welcome

INDUSTRY NEWS 6

Food and Grocery Code reforms to foster healthy commercial dealings

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MGA members with lottery agencies

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NAB steps up on definition of small business loan facility

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Reduce merchant fees

10 The Federal Budget 2020 / 2021 12 MGA attends trade mission to “start-up” nation Israel 15 MGA meets Israeli start-up SuperSmart 15 Walmart interest in Israel start-up 16 COSBOA Summit 2019 17 Contactless savings only “weeks away” for NAB customers 18 Container Deposit Scheme 2020 21 Anger over Kaufland’s Victoria go-ahead 22 Are ‘big box’ retailers facing extinction?

24 A wonderful industry legacy 27 Tobacco regulation changes 28 Latest Western Australia tobacco regulation update

LEGAL AND HR 31 The Fair Work Commission Wage Review 2019 32 Three warnings and you’re out!

33 FWC to consider whether finger print scanning is lawful 34 How flexible are individual flexibility arrangements?

LIQUOR NEWS 35 NT Exposure Draft of the Liquor Bill 2019 36 WA Government prepare regulations for large format

Packaged Liquor Licence stores

36 NSW Government appoints new minister for Liquor and Gaming

www.facebook.com/ MGAIndependentRetailers

TRAINING

www.linkedin.com/company/ mga-independent-retailers

39 Food safety basics

www.twitter.com/ MasterGrocers

41 What are manual tasks?

COVER: Photo by Fancycrave on Unsplash.

39 Implementing a strong food safety culture 41 Hazards in the workplace

MGA Corporate Partners DIAMOND

PLATINUM

GOLD

SILVER

BRONZE

ASSOCIATE

WAREHOUSE AND BRAND PARTNERS tasmanian independent retailers

CEO REPORT

CEO Welcome Many members may be asking the question, ‘is the next federal election in May important?’ The answer of course is a big YES, as the outcome of the election may have a significant bearing on the level of members business confidence and certainty to continue to invest, innovate, employ more people and to grow businesses.

MGA’s members are family enterprises and private businesses with all their assets on the line. In a very low margin and extremely competitive environment, it will be paramount the next government assists small business to alleviate unnecessary red tape and cost burdens to do business. The cost of wages (penalties, overtime, inflexibility) is by far the biggest cost impediment to the sustainability of small businesses, closely followed by energy costs.

MGA supports government policies that foster social and economic growth and encourages the entrepreneurial spirit for anyone wishing to embark in a business for themselves to be able to do so with certainty and confidence.

The public holiday rates associated with the recent Easter (4 PHs) and Anzac Day period in April, decimated any chance for members to contain costs and to run their businesses profitably. Clearly public holiday rates must be reduced and brought in line with the needs of the 21st century, rather than creating an impediment to employment and disrupting, what should be, a robust trading period.

On 2 April, Federal Treasurer Josh Frydenburg delivered his first federal budget to the Australian Parliament and to the people of Australia.

legislation was announced, packaged liquor discussions continue in Qld and other states; in Victoria, small business, government and universities came together for a complete workshop to understand how to work better together and I attended a Business Innovation Trade Mission to Israel.

The insight to bring back to Australia from Israel, is the great need for our Australian family businesses to be nimble, technologically agile and part of a dynamic digital culture, combined with an intensely focused customer service approach, if members are to future proof their businesses.

According to the World Economic Forum, by 2022, 60% of the global GDP will be digitised.

Once again our members can be pleased with the many budget initiatives and commitments that have been made by the government that will benefit their businesses and grow confidence and certainty for members to invest back in to their businesses, employ more people and compete in a very challenging and intense market place.

Over the past month or so MGA has dealt with many issues and matters of concern across the various states (see the articles in this magazine). The National Wage Review, researched, developed and written by MGA’s Marie Brown was lodged, submitting that our industry could not absorb more than a 1.2% wage increase, the federal final Review of Tobacco Control Legislation was submitted, WA tobacco

According to the World Economic Forum, by 2022, 60% of the global GDP will be digitised. As digital technology increasingly permeates every aspect of business, organisations are being forced embrace digital transformation as an essential part of their future.

At all times our customers remain the centre of our universe, so how can we continue to surprise and delight them with an exceptional shopping experience. MGA believes it is a combination of old fashioned personalised service and innovative tech solutions that will be the answer to future proofing the independent supermarket and liquor sectors.

Members who have believed in their formulae for success have taken big risks to borrow funds and reinvest into their businesses by refurbishing, renewing, upgrading or simply changing the way business is done in their stores. This has resulted in sales growth and customer satisfaction levels well above expectations. The question would be, what if you don’t reinvest back in your business?

What will happen to your customers? The answer is obvious.

Members must reinvest back into their stores and into their greatest asset of all, their staff, to maintain and grow their businesses.

Until next edition — good trading!

Jos de Bruin CEO MGA Independent Retailers

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INDUSTRY NEWS

NATIONAL

Food and Grocery Code reforms to foster healthy commercial dealings After almost 12 months of Graeme Samuel and Treasury reviewing the Food and Grocery Code of Conduct, Assistant Treasurer Hon Stuart Robert MP, has released the Morrison Government’s response to the independent Review of the Food and Grocery Code accepting most of the 14 recommendations.

Aldi, Coles, Woolworths and About Life are the current signatories bound by the Code. Metcash, Australia’s only national wholesaler has indicated it intends to sign up to the amended Code.

Assistant Treasurer Robert stated, the government is committed to ensuring the right regulatory settings are in place to improve certainty, transparency and fairness between food and grocery retailers/wholesalers and their suppliers.

We have listened to industry and we intend to make a range of important changes to the Code, such as:

• enhancing the good faith obligations to make it clearer and more user friendly for the industry;

• strengthening the dispute resolution procedures to give suppliers more confidence in raising their complaints and having them resolved; and

• setting limits on acceptable conduct during price rise negotiations

between the parties to restore trust and cooperation between parties.

Assistant Treasurer Robert also said, “I believe this approach will cultivate a competitive and sustainable grocery industry, delivering benefits across the wider community. It will also ensure healthy commercial dealings between major supermarkets and wholesalers with their suppliers, guaranteeing Australians have the best choice as well as quality products on shelves.

I thank Professor Graeme Samuel AC for leading the review and for his productive engagement with the industry and valuable contribution towards shaping our food and grocery regulation. I also thank all the businesses that gave their time during the review and consultation process.

Welcome to Protect Global MGA is pleased to welcome a new corporate partner – Protect Global.

PROTECT A/S is an international manufacturer of products capable of protecting people and property against burglary and robbery.

Their business is solely about security fog.

They are specialised, innovative and dedicated in this field.

About Protect Fog Security We believe security fog can defeat criminals and significantly reduce crime anywhere in the world. We can protect you and your valuables in seconds. We can create a safer world, make people happier and businesses more prosperous.

Protect Fog Security Pty Ltd sells and distributes the number one selling Fog Cannons™ in the world in Australia and New Zealand. With over 100,000 units installed worldwide, Protect Fog Cannons™ are the market leader in the STOP BURGLARS SECONDS! industry hands down. We –IN take pride in the fact Suitable for supermarkets and kiosks that our products actually STOP a burglary from occurring, protecting both your staff and business from intruders. We are excited about our partnership with MGA and can’t wait to show what Protect Fog Cannons™ can do for STOP BURGLARS THE PERFECT PROTECTION businesses IN SECONDS! around Australia.

AFTER CLOSING TIME – Suitable for supermarkets and kiosks

ALARM IS ACTIVATED

Fog security means the immediate protection of your valuables!

A PROTECT Fog Cannon will fill a room with a blanket of dense security fog, rendering the intruder blind, it works on the principle that you cannot steal what you cannot see.

Break-in

20 sec.

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Fog security your valuable

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Keep the intrude police or securit

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10 - 45 min.

Keep the intruders out for up to one hour - ample time for police or security services to arrive.

ALARM IS ACTIVATED

SECURED IN SECONDS PROTECT security fog is white, dense and dry and for increased disorientation, you can add a strobe light and a siren.

▲

The report makes a strong case for amendments to the Food and Grocery Code building on the significant progress made by the industry towards changing business culture and fostering positive commercial relationships.

This video shows seconds the burg videos on protec

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• Protection

I look forward to continuing to work closely with the food and grocery sector to implement these important changes to this industry-led initiative.

The Government will consult publicly on the draft legislative changes to the Code.”

mga.asn.au | May 2019 | Edition 3

For further details please contact: SECURED IN SECONDS 1800 200 999 www.protectfogcannon.com.au PROTECT security fog is white, dense and dry and for increased disorientation, you can add a strobe light and a siren.

This video shows a real burglary in a kiosk. After only 3 seconds the burglar is out again. Watch this and many other videos on protectglobal.com.

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INDUSTRY NEWS

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NATIONAL

MGA members with lottery agencies On 12 March Ben Kearney, CEO of the Australian Lottery and Newsagents Association (ALNA) and their affiliated body the Lottery Retailers Association (LRA) announced a positive outcome from lengthy negotiations with ‘the Lott’ (now part of Tabcorp), on behalf of thousands of lottery retailers and newsagents across Australia.

The result is a positive new model that reduces retailers’ costs, improves remuneration, includes retailers in the digital economy, and enables retailers to provide an enhanced omni-channel experience for all our customers.

From 1 July 2019, (subject to regulatory approvals and excluding SA*) ‘the Lott’ retailers will have the opportunity to earn significantly increased commissions from a potential revenue increase of at least 10% (for full compliance), benefit from reimbursements and significant reductions in the cost of their shop fitouts – worth $17million over five years for retailers, and receive commissions on digital lottery sales through an opportunity for retailers to benefit from all channels.

This represents many millions of dollars a year in benefits for retailers.

Ben Kearney said, “The 3800+ lottery retailers selling ‘the Lott’ brands in every state and territory (excludes Western Australia) have been heard and this is the start of a new relationship based on goodwill and mutual benefit.”

Of the benefits, most significant for the industry is financial reward for omnichannel retailing, giving newsagents and lottery retailers access to online sales.

For the first time, there will be commissions on digital lottery spend made by the growing number of bricksand-mortar customers who like to buy lotteries both in person and online.

Customer insights and sales data have shown that an omni-channel customer (those who shop both online and at a bricks-and-mortar retailer) are more valuable than a digital only or purely bricks-and-mortar customer.

In order to be eligible for the new remuneration model, lottery retailers do not have to do much more than what they are currently being asked to do.

All MGA members with lottery agencies will receive intensive support from ALNA or LRA to apply the new remuneration model to their businesses.

Take control of your energy bills GREAT NEWS! Energy prices are predicted to drop in the upcoming quarters, and this could bring potential cost reductions to your business through the renegotiation of your contract rates. This could bring savings for you as soon as next month’s billing cycle.

Even if you are in a contract, you may be eligible for a renegotiation allowing you to benefit from a lower price almost straight away.

If you’re interested in saving money on your electricity, simply send through a copy of your latest bill for us to review and we will be in touch to discuss the results.

IT’S THAT EASY! Aussie NRG helped me negotiate my bills with my energy retailer and saved me approximately $100,000 per annum for my group.

Aussie NRG goes out of their way every time and go above and beyond to help out in any way they can. I would recommend their services with both pleasure and confidence in their ability to find the best possible outcome.

GIN ONG

|

STRATH VILLAGE SUPA IGA

CONTACT THE MGA ENERGY TEAM FOR YOUR OBLIGATION FREE ASSESSMENT 1300 849 908 | energy@mga.asn.au

INDUSTRY NEWS

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NATIONAL

NAB steps up on definition of small business loan facility MGA and MGA TMA often questions what the definition of a small business is?

The Australian Bureau of Statistics, the Australian Tax Office and various other state and federal departments have varying definitions of a small business. This creates confusion when governments set policies that effect MGA and MGA TMA members businesses for instance.

At present the common definition of a small business is one which employs 20 people or less. This is clearly at odds with the independent supermarket, liquor store and timber and hardware sectors who all regard each other as family enterprises and private businesses that constitute a small business.

When MGA speaks with governments and authorities,

it refers to its members being family enterprises and private businesses with up to 200 employees as being a small business. The margins in our industry sector are so razor thin, the profit generated is that of a small business.

MGA is heartened to be informed that National Australia Bank has recently announced that it will expand its definition of small business

to accommodate lending up to $5 million – this is a $2m increase on the $3m threshold that was recommended in the Banking Code of Practice 2019.

The loosely quoted rhetoric from governments is “that small businesses are the engine room of the Australian economy”, it is gratifying to see NAB “put its money where its mouth is!”.

Reduce merchant fees The cost of Tap and Go, contactless card payments and least cost routing.

As per previous articles, MGA, together with eftpos have been pursuing a better deal, via a “least cost routing” facility in banks for members in regard to reducing contactless ‘Tap and Go’ merchant fee payments that are out of control.

Least-cost merchant routing allows the retailer to choose the least cost payment gateway to be used for processing debit transactions on their own terminals.

Australians are very quick to adopt technology that enables easy and simple outcomes. ‘Tap and Go’ and contactless payments are no exception with most consumers using their debit cards for consumables as small as a $4.00 cup of coffee. Very little cash is used at store level these days.

Unlike many other industries such as hotels, hire cars, airlines, online shops, etc., independent supermarkets cannot recover these merchant fee costs from consumers at the time of payment. Coles and Woolworths are both considered as “acquirers”, or banks in their own right, and therefore incur merchant fees at a fraction of the cost MGA members

experience.

Many MGA members have reported a 300% increase in the merchant fees charged by their bank for processing debit transactions since ‘Tap and Go’ was introduced only 4 or 5 years ago.

MGA has highlighted with members on previous occasions that the higher “merchant fee” cost was due to the banks redirecting ‘Tap and Go’ debit transactions from the lower cost eftpos pathway to the higher cost credit card gateways (i.e. Visa and Mastercard).

MGA’s corporate partner, eftpos, has been working very hard to provide consumers and merchants alike, with a simpler and cheaper choice to transact.

That is, enabling a choice between a debit card transaction via the Mastercard or Visa card networks or an eftpos transaction at the time a consumer pays.

Generally speaking, the merchant cost of an eftpos transaction is an average of 40% the cost of a Visa and Mastercard debit card transaction.

Depending upon members arrangements with their banks, Visa and Mastercard card gateways typically cost up to 1% of the total value of the debit transaction compared with eftpos which is lower on most transaction types.

At present there are 3 banks (NAB, Westpac and ANZ) which have announced they will introduce least-cost merchant routing for its business customers.

Under new pricing released by ANZ this month ANZ will introduce an eftpos transaction that will be fixed at .25 cents on most transactions compared with 1% for Visa and Mastercard debit.

At the time of writing, National Australia Bank (NAB) also released its intentions to provide a least cost routing facility. The NAB launch for this facility is expected to be in early May 2019.

MGA strongly encourages all members to contact their banks about least cost routing. This will definitely be a big ticket saving of merchant fee costs.

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INDUSTRY NEWS

NATIONAL

The Federal Budget 2020 / 2021 On 2 April, The Federal Treasurer, Josh Frydenburg delivered his first federal budget to the Australian Parliament and to the people of Australia.

Once again MGA and MGA TMA members can be pleased with the many budget initiatives and commitments that have been made by the government that will benefit their businesses and grow confidence and certainty for members to invest back in to their businesses, employ more people and compete in a very challenging and intense market place.

This budget is strongly supported by MGA because it balances the need to return the national budget to surplus (after 10 long years of deficits) and to advance prudent measures that lay the foundations for stronger economic growth in the future.

MGA is a Director of the Council of Small Business Organisations of Australia (COSBOA) and a member of the COSBOA council.

Below is an article from COSBOA CEO Peter Strong, who was invited to participate in the “lock up” prior to the release of the budget. Peter was able to convey the views of MGA in the lead up to this budget announcement.

The contents of this article are reflective of MGA’s position toward this very positive budget. mga.asn.au | May 2019 | Edition 3

A BUDGET THAT PROVIDES THE FOUR INGREDIENTS FOR STRONGER ECONOMIC GROWTH COSBOA notes that the 2019 Federal Budget is one of the best in recent memory in that it focuses on the four core ingredients of economic growth; increasing disposable income, improving workforce skills, improving infrastructure and encouraging business investment.

These foundations have been supported while also providing the first budget surplus since the 2008 financial crisis, a milestone that is grounds for strong optimism about Australia’s economic future.

The 2019-20 Federal Budget represents the first budget surplus in more than a decade, providing the opportunity for Australia to both reduce its national debt and invest in key measures to lift economic growth for the benefit of all Australian.

Peter Strong, CEO of COSBOA stated “We have collectively been labouring under an increased debt burden since the 2008 financial crisis and, like any household struggling with rising debt, this has drained positive sentiment and slowed economic growth”.

The persistent stories and national political comment about our national deficit drains the positivity from small business and their customers.

Business people become cautious about investment and households only spend on necessities.

Economists call this national emotion consumer sentiment and it tends to be negative when our national economy runs in constant deficit.

Mr Strong added “So, the fact that the Government has delivered the first national budget surplus in more than a decade – with forecast surplus into the foreseeable future – is the most pleasing outcome of this budget. It is our strong hope that this achievement will lift business and consumer sentiment which, in turn, will drive increased economic and wage growth for all Australians”.

COSBOA notes that the Morrison Government didn’t just stop at achieving a surplus, they have used some of the surplus to invest in four major ingredients that are vital in growing our economy:

• Increasing the disposable income of those who need it most: who can spend that money in the nation’s 970,000 small businesses.

• Investing in workforce skills and business innovation to ensure that our

employees have skills that are relevant in a workplace that is continually being reshaped by technological and digital disruption, and that small and medium businesses are supported in embracing innovation via the national roll-out of the innovation games*.

• Improving national infrastructure so that small businesses can receive

and transport goods at the lowest possible cost and maximum service level for our customers.

INDUSTRY NEWS

• Continuing to help small business grow and invest by

increasing the instant asset write-off (in both quantum and eligibility) and fast-tracking tax cuts for all small businesses earning up to $50M per year.

This is the fourth successive budget that has contained strong measures to support the growth of small and family business in Australia in what amounts to the Coalition government having put its money where its mouth is in recent years.

Mr Strong further highlighted “in any budget there are sometimes hidden gems and the funding of innovation games for small business is such a gem. Small businesses bought together to innovate with the best talent emerging from our education institutions, rolled out on a national scale. Excellent focus on the future.”

Once again MGA and MGA TMA members can be pleased with the many budget initiatives and commitments.

Mr Strong also added “The past few years have proven that an investment in small business is an investment in jobs and stronger communities and that is why we are very pleased with this budget. We score this budget as an 8½ out of 10 from a small business perspective”.

Source: Peter Strong, CEO, COSBOA

FEDERAL BUDGET COMMENT – DRIVING CONSUMER CONFIDENCE & CERTAINTY Harvey Norman executive chairman Gerry Harvey expects a positive “domino effect” on consumer spending from the federal budget tax cuts, which will prompt shoppers to buy shoes, fridges and televisions. “I think it will be across the board and it will have a domino effect,” Mr Harvey said.

“It will be right across from everything to shoe, handbags, televisions and fridges, you name it,” Mr Harvey said. “I’m feeling a little more optimistic than I did a month ago”.

Tax offsets will almost double to $1080 for single earners with incomes under $90,000 and are available when this year’s tax returns are lodged. The reductions amount to $2160 for dual-income families. The rebate is worth about one week’s wages, after tax, for people on average weekly earnings, or about $20 a week. “Enough for three rounds of coffee and a muffin!” said AMP Capital chief economist Shane Oliver.

According to Citigroup, the offset will affect about 10 million Australians, or about 40 percent of the population, and amounts to $726 per taxpayer or $7.3 billion.

Citigroup’s head of research, Craig Woolford, said the rebate could boost retail spending by 1.0 percent to 1.5 percent in the September quarter and about 0.3 percent on an annualised basis. Mr Woolford expected all retailers to experience a small and temporary benefit, including food retailers such as Woolworths, Coles and Metcash.

Source: Australian Financial Review

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INDUSTRY NEWS

INTERNATIONAL

MGA attends trade mission to “start-up” nation Israel Late in 2018, I was invited to attend a trade mission to explore “the opportunities in the start-up” nation, Israel. The “Innovation” Trade Mission was held in Israel from March 23–30.

I attended this unique trade mission, by invitation from National Australia Bank and was hosted in Israel by the Australia-Israel Chamber of Commerce. The trade mission comprised a diverse group of industry leaders, entrepreneurs and business advisors keen to learn about the driving Israeli culture toward starting up, nurturing and growing businesses in food tech, agri-tech, cyber security, automotive tech, retail tech and medical research tech.

mga.asn.au | May 2019 | Edition 3

The purpose of my attendance was to represent MGA members and the small business sector and to explore the culture and practices of how the Israeli Government, universities, family enterprises and private businesses work collaboratively together to help start and grow businesses.

This is an area of conjecture in Australia, as it is MGA and MGA TMA’s belief that there is no genuine culture within governments to support family

enterprises and private businesses to help drive and grow start-up and existing small businesses. Often, we hear terms of endearment from local, state and federal governments that small business is the back bone of the economy – the engine room for productivity and employment.

There are many examples of situations where small businesses have not been considered when policies are determined, and decisions are made about new developments or drafting new regulations and laws.

Jos de Bruin —MGA CEO and Sir Ronald Cohen — Founder of Venture Capital – APAC.

Israel is now known as the new Silicon Valley with world-renowned tech and manufacturing business brands locating offices in Israel to be close to the extremely advanced technological culture. The philosophy is, “if there is a problem” there will be a computer-based solution to solve it. There is no algorithm too difficult to develop.

What soon became apparent is that wellresourced big businesses were not only embracing a digital culture but driving it by allocating huge sums of resources to research and development.

The insight to bring back to Australia, is the great need for our Australian family businesses to be nimble, technologically agile and part of a dynamic digital culture, combined with an intensely focused customer service approach if they are to future proof their businesses.

According to the World Economic Forum, by 2022, 60% of the global GDP will be digitised. As digital technology

increasingly permeates every aspect of business, organisations are being forced embrace digital transformation as an essential part of their future.

From data-driven decision-making, to operations, communications and customer engagement, new tools and technologies are redefining the way business operates. Emerging technologies such as AI, blockchain, Internet of Things (IoT) and more are helping pioneering executives and entrepreneurs to disrupt the established economic order.

But it’s not just about the technology – changing business processes and corporate/small business culture is critical to a successful transformation.

There are many questions now being asked by MGA members in regard to what to do toward future-proofing their businesses. Some of the questions may be: 1. How will the arrival of 5G change the landscape?

2. What are the most popular technologies Australian organisations are investing in to drive innovation?

3. What strategies should you deploy to optimise your processes and evolve your business?

4. How can you keep existing customers happy while opening up opportunities for new customers?

5. How can you gain and maintain a competitive advantage through business model evolution, technology integration and new ways of working?

6. Why is creating a digital culture important?

I had the opportunity to engage with many incredible business start-ups and growth businesses including Quantum Computing, Checkpoint Cyber Security, Spark Beyond AI, Netafim Agri Tech, various venture capital firms, finance solutions and so on.

I also met with two high tech start-up companies involved with revolutionising supermarket shopping by making it easier, more fun and more efficient by using technology-based solutions.

All of these I will report on in the next edition of this magazine.

JC’s Quality Foods celebrates 25 successful years

Now 25 years in the nut industry and the third generation in fresh food in Australia, Joe Cannatelli, owner and founder of JC’s Quality Foods reflects on the business’ history and what it takes to succeed in the increasingly competitive FMCG sector.

Joe Cannatelli is the “J.C.” in J.C.’s Quality Foods. He’s grown up in the produce industry, and directly followed his father into the trade by running his own fresh produce retail shop.

JC’s Quality Foods is more committed to sourcing quality produce than ever before. “We’re continually refining our practices to ensure that we source Australian produce wherever possible.

Australian produce is world renowned for its quality and it makes sense that we source locally to reduce food miles and support Australian farmers.”

As a kid, he helped his parents in their fresh produce shop, but then things went a bit nutty. “Although I loved the fruit and vegie business, when you’re working with nuts at least you don’t need to be up at 3am to be at the markets – although you still have to put in the hours no matter what you do to do it well,” muses Joe. Aged 21, and after a year in his own retail shop, armed with just one product and his parents 1981 VB Commodore as a delivery vehicle, his specialty nut business began. Fruit bars, some dried fruit lines and liquorice were added in 1994, and the company hasn’t looked back since.

Twenty-five years on, JC’s has an extensive range of nut, dried fruit, confectionery, snack, legumes and seed products, sold under the JC’s, Joe’s Food Co. and Pop Fiction brands. Today, J.C.’s Quality Foods is recognised as a market leader in the independent sector and continues to innovate.

“Investment in innovation has allowed us to grow the brands by creating new users and usage occasions across our different product groups. As a smaller, familyowned business we have always worked on building strong relationships with our retailers, trialling and testing products to determine their success in the wider market.”

With volume growth comes challenges.

“The more volume you do, the more difficult it is to consistently maintain the highest quality. We are extremely proud of our strong quality assurance and I also personally check samples of products.

But quality starts with the growers and processors and fortunately, over many years, we have found the right partners to work with. Our approach is to find like-minded suppliers with consistent quality produce, regardless of seasonal variations. We believe consumers recognise this quality – after all, we all remember quality long after price.”

“The independent retailers and fresh food outlets definitely are doing a great job of supporting local manufacturers and brands – you only have to visit them to see how many small to medium Australian manufacturers are represented and supported by these outlets. Thank goodness for the independent retailers providing opportunities where there would be next to none otherwise. I really believe there is a

turning of the tide, where discerning shoppers have more choice of quality Aussie made products and appreciate the overall value they pay for.”

Can Joe pick a favourite nut? “I’ve always been partial to roasted, salted pistachios.

For me there’s a feeling of nostalgia when you sit around the table having a chat with friends and family while eating them.

Other than eating them raw, I love to add nuts to salads and stir-fries. And in my book, any meal is better when nuts are added,” enthuses Joe. JC’s 25th anniversary marks an exciting time for the business, “We have much to look forward to. We continue to learn from the change in consumer attitudes and growing connection between health and food. The perception of nuts has changed dramatically for the better over the years and, as a result, the volume of nuts sold in Australia has significantly increased. As testament to our values we will continue to cater to the needs of today’s consumer for wholesome, nutritious foods and always strive to produce Better Food for a Better World.”

03 9764 0517 | jcsqualityfoods.com.au

INDUSTRY NEWS

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INTERNATIONAL

MGA meets Israeli start-up SuperSmart During the recent Trade Mission to Israel I had the opportunity to meet with Yair Cleper, founder and CEO of new start-up business SuperSmart. The visit took place in a 4000 square metre supermarket that sold everything from ironing boards to fresh fruit and vegetables to wine and beer.

The technology on trial to assist shoppers to do their shopping in a more efficient manner is revolutionary. No sooner than I had left the meeting, Yair spoke about meeting with global retailer Walmart about his new concept. See the media release below articulating Walmart’s interest in Yair Cleper’s innovation.

MGA will continue to liaise with SuperSmart to better understand the opportunities and potential for such innovative solutions in Australia.

MGA CEO — Jos de Bruin and NAB Executive General Manager Micro & Small Business — Leigh O’Neill

Walmart interest in Israel start-up US retail giant Walmart cancelled its Scan & Go service for automated scanning with no checkout counter earlier this year. The system was installed in 100 of the chain’s stores, and according to media reports, the main reason for cancelling the system was a dramatic rise in thefts.

Yair Cleper, founder and CEO of Israeli startup SuperSmart, hopes to be the one to solve this problem and enable Walmart

to compete with the corresponding service offered by Amazon in its Amazon Go chain. Walmart CEO Doug McMillon met with Cleper during his visit to Israel last week. “A month ago, I got a call telling me that Walmart’s CEO wanted to meet with me,” Cleper told Globes. “At the meeting, we got confirmation that the reason that the pilot service was halted, which was designed to provide the service that currently exists at Amazon Go, was because loss rates soared.”

Cleper says that at the meeting, Walmart’s representatives confirmed that the number of unscanned products disappearing from inventory, whether by mistake or theft, jumped in branches in which the pilot scanning app was being used. “This is exactly the problem that our product is designed to solve,” Cleper says. His company is developing a system that integrates the app and a smart scanning device. (Globes News) Source: Strikeforce

16

INDUSTRY NEWS

NATIONAL

COSBOA Summit 2019 early bird registrations open!

Be the first to hear what the new government will have in store for small business policy at Australia’s premier event.

We’re thrilled to announce the COSBOA National Small Business Summit – Policy and the People – will be held at Sofitel Melbourne on Collins on 29-30 August 2019.

superannuation and paid parental leave, insurance, contract law and competition policy, compliance and regulation demands, and more.

Why should you attend?

MGA invites you to join us in debate and discussion with regulators, senior politicians, small business leaders and policy-makers, as we challenge the key issues influencing the productivity of 3 million plus small businesses in Australia.

The COSBOA Summit is your opportunity, as a leader representing this community, to make your voice heard!

It will also be the first chance postelection for you to find out what the new political leaders and government have in store for small business policy in the future.

Key topics will cover energy, banking and finance, workplace relations, vocational education and training, taxation,

mga.asn.au | May 2019 | Edition 3

• Hear from the Australian Small

Business and Family Enterprise Ombudsman about current issues in small business.

• Connect with like-minded small

business leaders and Association CEO’s representing our community

• Stay up-to-date with regulations and policies from the Australian Taxation Office, ACCC and ASIC.

• Find out the latest from the Fair Work Commission.

• Be the first to know what’s happening

in the political landscape and how to reduce complexity for small business.

Register today to connect and hear from key decision makers and influencers. www.cosboansbs.com.au/registration

INDUSTRY NEWS

NATIONAL

Contactless savings only “weeks away“ for NAB customers National Australia Bank is expected to launch merchant choice routing for contactless debit transactions to its small business customers by the end of the month.

from politicians and the Reserve Bank’s Payments System Board to roll out the service, which could deliver big cost savings to small businesses that accept contactless payments.

NAB was the first major bank to undertake pilots for merchant choice routing last year when it was asked to help facilitate the service by national pharmacy chain, Chemist Warehouse.

A NAB spokesperson said the bank last year enabled several thousand payments machines to provide merchant choice routing after the completion of trials conducted with terminal manufacturer, Quest.

Banking Day understands that following the success of that trial, the new capability for routing contactless payments has been rolled out to Chemist Warehouse sites and BP petrol stations across the country.

Merchant choice routing gives retailers and other merchants the ability to direct contactless payments on dual network debit cards to platforms other than those operated by Visa and Mastercard.

“In April 2018 we began piloting merchant choice routing for a number of our business customers with Quest devices and by the end of 2018 we enabled merchant choice routing for over 2,000 sites across Australia,” the NAB spokesperson confirmed in an email.

“We look forward to making this capability available to more of our customers in the coming weeks.”

The new service is expected to expose the global schemes to competition from eftpos Australia in the payments processing market.

NAB will be the third major bank to begin marketing the service to merchants after ANZ and Westpac activated merchant choice routing in the last month.

Major banks have been under pressure for several years

Source: George Lekakis, Associate Editor, Banking Day

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INDUSTRY NEWS

WESTERN AUSTRALIA

Container Deposit Scheme 2020 MGA WA Director, Ross Anile and MGA CEO Jos de Bruin are both members of the WA Container Deposit Scheme (CDS) Taskforce.

was passed by both houses of Parliament with the McGowan Government stating that it is on track to deliver the Container Deposit Scheme next year.

Our role is to assist the task force design and develop a seamless CDS that will not add red tape and cost burdens to MGA members’ businesses.

Under the new scheme, WA consumers will receive a 10 cent refund when they return eligible empty beverage containers to refund points throughout the state.

MGA is sharing the learnings from recently introduced schemes in NSW and QLD, highlighting the impractical and burdensome elements of those schemes and ensuring MGA’s WA members’ businesses are not impacted in any way, once the scheme is introduced in 2020.

Projections show the container deposit scheme will result in 706 million fewer beverage containers littered by 2037 and reduce the number of containers disposed of to landfill by 5,902 million.

On 13 March a Bill was passed to allow refunds for empty bottles and cans.

This Bill – Waste Avoidance and Resource Recovery Bill (Container Deposit) 2018, to allow WA’s container deposit scheme,

The next major step – following establishment of applicable relevant regulations – will be the announcement of the scheme co-ordinator who will be responsible for developing the statewide collection network and managing contracts with operators of refund points.

Premier McGowan has stated – “Not only will our container deposit scheme divert waste from landfill, it is expected to create some 500 jobs – at new container sorting and processing facilities and refund points, and the transportation of containers across the State.

“I’m confident the scheme will not only reduce litter and increase recycling throughout WA but provide business opportunities for social enterprises and help charities and community organisations raise money to fund vital community work.

“This new scheme is a win for the environment and a win for our local economy.”

MGA will continue to keep members informed of any new progress.

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INDUSTRY NEWS

NATIONAL

Don’t just renew, review & get the right protection for you.

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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.

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I have confidence in them!”

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19

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

21

NATIONAL

Anger over Kaufland’s Victoria go-ahead The Master Grocers Australia (MGA) has hit out at the Victorian Government’s decision to grant permission for German multinational Kaufland to build three stores in Victoria, as well as a distribution centre and a headquarters in Melbourne.

MGA CEO, Jos de Bruin, told TheShout that the Government and Kaufland have ridden roughshod over local decisionmaking processes without considering the impact on local, small and family businesses.

“This decision smashes the confidence of small and family businesses throughout Victoria,” de Bruin said.

“The state government claims to be a friend of small business, today’s decision shows that they don’t care at all what happens to these hard-working enterprises.

“This is an anti-small business decision and a multi-million-dollar gift to a foreign multinational.”

De Bruin told TheShout that the decision of the Victorian Government to grant permission for the distribution centre also highlights that Kaufland will be given the go-ahead for further sites.

“Kaufland’s supermarkets are such that they have to target industrial land. The [proposed] site at Coolaroo is vacant industrial land, in Mornington it’s taking over a footwear factory.

“Let this be a warning to everyone: the precedent is now that any industrial land in Victoria can turn into a shopping centre, with subsequent impacts on local businesses and local amenity.”

He added that Kaufland’s model of large out-of-centre stores with huge car parks and a range of services as well

as the supermarket, will impact small businesses.

and private business, because that’s the diversity that we need.”

“Once you have an out-of-centre location and you are 7000sqm in size with 500 car parking spaces, I don’t think that has any net community benefit at all.

How can local shops compete? Or how can the consumer be provided with a convenience of choice?

MGA said that Kaufland is also trying to drop mega-stores into Oakleigh South, Mornington and Coolaroo.

“When you are talking about a 7000sqm box that sells massive amounts of everything including liquor, you have to wonder what the impact is going to be on neighbourhood shopping centres and local shopping strips. We’re particularly talking about small and private businesses here, where they have had the rug pulled out from underneath them.”

De Bruin also questioned why small, family privately-run businesses are not considered when decisions like this are made by the state government.

“We hear people talking about the engine room of the economy and the backbone of the economy and I do believe that there is an intent. But here is another example where, I believe, when Kaufland comes into Victoria, or it could be New South Wales, why isn’t the first question that is asked “what impact will this have on family enterprise and private business?”

“What impact will it have on confidence and certainty to invest and innovate?”

“We need a very strong culture to drive, not protect, to drive family enterprise

“Local small businesses will continue to fight this attempt to undermine local planning rules and we look forward to making our case to the Advisory Committee,” de Bruin said.

“At the end of the day though, these are decisions which should be made through the usual local planning processes, so the entire community can have a say.”

The three sites approved for Kaufland’s first stores in Australia are at Chirnside Park, Dandenong and Epping. The distribution centre will be located in Mickleham and the Managing Director of Kaufland Australia, Julia Kern, said the approvals would mean up to 1600 jobs would be created in the state.

Source: TheShout – 18 March 2019 by Andy Young

Comment Kaufland may speak about jobs being created, however it is MGA’s belief, the net community benefit will be a negative one, owing to the closure of many nearby small businesses and shopping strips, causing further unemployment.

In addition, consumers will be required to drive to Kaufland destinations, disenfranchising a large proportion of the population who do not have cars.

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INDUSTRY NEWS

NATIONAL

Are ‘big box’ retailers facing extinction?

BUSINESS REPORTER, STEPHEN LETTS HAS WRITTEN A COMPELLING BUSINESS ARTICLE QUESTIONING THE VIABILITY AND FUTURE OF ‘BIG BOX’ STORES IN AUSTRALIA. With the 4th largest retailer in the world, Kaufland, coming to Australia in 2019 with its 7000 square metre boxes it certainly raises the question as to why?

MGA members will be pleased to read that there is a trend back toward shopping at local and more conveniently located supermarkets and liquor stores.

Key points of the article include:

• Most big box retailers are seeing sales

But the threat to big boxes is not just the cyclical downturn that has hamstrung most retailers, large and small. It appears to be part evolution and part cataclysm.

Sales growth per square metre (sqm) was then lined up against retail’s two biggest operating costs — rent and wages over the same six-month period.

Like the dinosaur, big box stores have been getting steadily larger.

Rental growth was calculated at 2.5 per cent — a value derived from one of Australia’s biggest retail landlords, the Scentre Group, owner of 43 shopping centres formerly housed in the Westfield empire.

• Smaller retailers emphasising service

That was handy for devouring smaller competitors, but not much use against insurmountably large and unavoidable problems like asteroids or online sales.

• Online sales are forcing many big box

So, are these retail dinosaurs heading for a slow death?

growth lag on a per-square-metre basis and increases in operating costs. are performing better than the bigger players. retailers to cannibalise their sales.

According to a deep dive into their operational DNA by investment bank Morgan Stanley, these larger retailers could well go the way of the dinosaur.

On Morgan Stanley’s figures, drawn out of the February results season, only three of 22 big box retailers reported salesper-square-metre growing faster than operational costs.

While the tilt-up concrete monoliths have done little for shopping aesthetics and service, they revolutionised retailing by offering a vast array of products at cheap prices.

The likes of Bunnings, Dan Murphy’s and Rebel became category killers, while super-sized supermarkets started popping up in boxy, new retail estates — an evolution that’s starved traditional shopping strips of consumer dollars.

mga.asn.au | May 2019 | Edition 3

Morgan Stanley’s retail analyst Thomas Kierath says Australian big box retailing looks to be slowly dying based on recent reporting season trends.

“We think that consumers are shifting away from big box retail formats as they increasingly prefer convenience and experiences that are better cultivated in a small box environment,” Mr Kierath wrote in a research note to clients.

“Further, we think online is taking a disproportionate bite out of the big box retailers.”

The Morgan Stanley analysis used sales-per-square-metre for benchmarking growth, given the like-for-like sales method preferred by retailers lacks a consistent method of calculation and often under-estimates the impact of new stores cannibalising sales of existing outlets.

Morgan Stanley chose wages growth of 3.5 per cent, as per the Fair Work Commission’s minimum wage determination for retail workers.

“Soft sales-per-sqm growth for large box retailers will likely bite soon given 70-90 per cent of operating costs inflate at between 2.5 per cent [rent] and 3.5 per cent [labour],” Mr Kierath said.

“We think very few retailers are delivering sales-per-sqm growth ahead of in-built cost growth at the moment.”

That operational inflation is in many ways unavoidable as there are inherent costs in cost-cutting.

“Should retailers cut back on staffing, opening hours or marketing we think that this likely accelerates the slowdown in sales-per-sqm growth,” Mr Kierath warned.

When it comes to shopping, size matters.

Size appears to matter in the big box world, with ‘small’ outperforming ‘large’, in the past six months at least.

INDUSTRY NEWS

Morgan Stanley puts the divergence in performance down to three key factors that continue to evolve.

The convenience shift There is a structural trend of consumers becoming even more short on time, so they prefer to shop at stores that are convenient to them, rather than at retailers that operate stand-alone destination-type stores.

Online sales It appears as consumers shift to online, they are purchasing less from big box format retailers, perhaps because clickand-collect is so popular and consumers are preferring do to this at locations that are convenient to them.

Experience matters Smaller retailers tend to pay higher rents compared with big box retailers, so are inherently more invested in providing an enriching experience. This means stores are presented in a more customerfriendly way.

That’s a worry for the big box owners given their strategy appears to involve building ever-expanding boxes.

Taking the Coles supermarket chain as an example, the footprint of the average

store has increased by about 12 per cent over the past decade.

It is a story repeated across the retail landscape.

A sobering example of why ‘big may not be better’ can be found in Woolworths’ two key liquor outlets: the big and boxy Dan Murphy’s and the more modestly scaled BWS stores, often just bolted on to supermarkets.

Woolworths itself noted “BWS performed much better than Dan Murphy’s” in its first-half results presentation.

On Morgan Stanley’s calculation BWS sales grew 4.6 per cent over the half; made up of sales-per-sqm growth of 3.3 per cent and store growth of 1.3 per cent.

23

Online retailers present a digital dilemma. But the biggest problem is the unstoppable force descending from the digital world.

Online selling — with its vast range and wafer-thin margins —is already casting a massive shadow over big box retailing.

The temperature is cooling rapidly, but online’s full impact is still a fair way off.

“Online is eating the big box,” Mr Kierath bluntly observed.

The unpalatable fact for the likes of Coles and Woolworths investing in online sales is a form of corporate cannibalism.

The Morgan Stanley report found Coles and Woolworths generated 26 per cent of sales growth from online.

The once mighty Dan Murphy’s appears to have taken a nasty stumble; overall sales were up by just 0.8 per cent, with sales per sqm declining 0.6 per cent.

“Sales growth from existing stores exonline is just 1.3 per cent for the majors,” it noted.

Crunched another way, Morgan Stanley found the figures showed foot traffic in Dan Murphy’s may have slumped by up to 5 per cent over the six months. It’s not exactly an ideal outcome for a big box built for the high-volume sales philosophy of “stack ’em high and watch them fly”.

“Interestingly, [the] Nielsen [retail survey] indicates that [greater than] 50 per cent of online sales growth is cannibalised from stores and a further [greater than] 40 per cent from competitor stores, which points to low sales incrementality,” Morgan Stanley observed.

The damage to big box margins looks permanent.

However, big box retailers could do well to study the downfall of the giant reptiles.

Not all dinosaurs died out; many evolved and survived.

Some grew feathers and took to the air, while others just got smaller and smarter, sliding into warm estuary waters in places like the Northern Territory.

So big boxes may not die out if they adapt; and that may mean thinking outside the box — whatever its size.

Source: ABC News | business reporter Stephen Letts

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INDUSTRY NEWS

NATIONAL

A wonderful industry legacy SCHOLARSHIP OPPORTUNITIES The Frederick Richard O’Connell Scholarship was established to promote industrial harmony in Australia and to improve relationships between employers and employees within the timber industry.

Applications are open to candidates who have enrolled in, or who have already commenced a degree, certificate or diploma course conducted by a Victorian university. Scholarships are awarded on the basis of:

• Good character • Personality • Academic achievement • Proficiency at sport

Frederick O’Connell was Executive Director of the Timber Merchants Association back in the 1950s. In his will, he left a very important and pertinent legacy in a sum of money to be used annually for scholarships for the children of TMA members or children of their employees.

Preference is given to candidates who are children of either employees, directors or proprietors of companies that are members of MGA TMA.

This is a unique membership opportunity through MGA TMA for its members and their employees.

There is no additional cost to MGA TMA members. Successful candidates receive between $500 and $10,000.

BeGin tasting notes Volume

37%

700ml – Available in 50ml

Colour Appearance is clear and bright

Bouquet Ripe berries, strawberry, orange with some citrus mid-notes with hints of spice in the lower notes.

Predominant character is ripe/bright fruit.

Palate Bright fruit, plum, tart and sweet notes initially.

Followed by notes of citrus with hints of nutmeg, cinnamon and granulated sugar. Hint of vanilla on the back end.

Finish Tart and dry with lingering sweetness. The finish is long and textured and well balanced.

2019 Awards Silver Medal / China Wine & Spirits Awards (Best Value) Previous Awards 2018 Trophy “Gin of the Year“ / China Wine & Spirits Awards 2018 Double Gold Medal / China Wine & Spirits Awards 2018 Silver Medal / San Francisco World Spirits Competition

mga.asn.au | May 2019 | Edition 3

• Bowens Timber & Hardware • Golden City M10 Bendigo • Danahers M10 Heidelberg • Lamcal Building Supplies • Dahlsens Buidling Centres Pty Ltd • Mathews Timber Knoxfield • Ryan & McNulty Benalla • Bendigo Truss Plant The total disbursement this year was $59,000 with scholarship awards ranging from $4,000 to a maximum of $6,500 given to respective candidates.

Managed by Philanthropy Services at Equity Trustees Ltd

BeGin Premium Gin

BeGin Premium Sloeberry & Bitters Gin Alcohol

Successful candidates this year came from the following MGA TMA members –

Alcohol

Volume

37%

700ml – Available in 50ml

Colour Clear liquid with a blue hue.

Bouquet Nose is heavy with juniper, with a peppery undertone. Contains a faint coriander bouquet with a slight touch of lemon citrus aroma.

Palate The botanicals combine to create an earthy spice, full bodied aromatic taste layered with piny juniper, zesty citrus, nutty oils, spices. A hint of sweetness before ending with light lavender notes with a balanced peppery finish.

Finish Finish is crisp and medium to long in length.

2019 Awards Gold Medal / China Wine & Spirits Awards (Best Value) Previous Awards 2018 Double Gold Medal / China Wine & Spirits Awards 2018 Silver Medal / San Francisco World Spirits Competition

INDUSTRY NEWS

Define NATIONAL your shine with Pinot G. De Bortoli Wines is always striving for innovation and ingenuity and is yet again changing the game; this time shining a light on Australia’s growing thirst for the popular varietal, Pinot Gris.

De Bortoli has been reviewing popular trends in the market, noting that consumers are looking for unique products to express their individuality, and stand out in the crowd through all aspects of their lives; homewares, electronics, fashion, make up, and now wine!

By launching the new De Bortoli Pinot G, a light bodied Pinot Gris, De Bortoli is hitting the mark with a unique square shouldered bottle, more commonly seen in spirits, as well as a distinctive holographic label and cap, a first for the industry! Shifting colours and reflections of light from the holographic foil help to increase shelf impact, attract consumer interest, and aid in instant recognition, giving the brand maximum appeal in store.

Define your shine, create a stir and have fun with the new De Bortoli Pinot G. This is sure to be a party favourite!

The Wine: Pinot Gris – subtle aromatics of pear, lemon zest and a hint of herbs with a light and clean palate... smashable!

The Beat: Pump up the volume and enjoy with some Electro-Pop beats.

The Food: Galician Octopus Tapa, enjoyed in the sun!

Contact your De Bortoli Representative to add a little shine to your wine range. Or visit debortoli.com.au for more information.

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INDUSTRY NEWS

CRAFTED FOR THOSE WITH G RE AT TAS TE Jacob Schweppe created the world’s first sparkling beverage brand in 1783. Inspired by his passion for craft, quality and the finest ingredients sourced from around the globe, we’ve taken our favourite soft drinks and re-imagined them for the modern palate.

Schweppes & devices are trade marks used under licence in Australia by Asahi Beverages.

mga.asn.au | May 2019 | Edition 3

INDUSTRY NEWS

27

WESTERN AUSTRALIA

Tobacco regulation changes On March 15 the WA Minister for Health, Hon Roger Cook MLA, announced there would be immediate changes to tobacco laws in Western Australia.

These sudden changes came as surprise to MGA and its members as normally MGA would have been consulted and any new proposed laws would have been implemented without adding any cost or red tape burdens to member’s business.

The Minister points out that the strengthened reforms are aimed at improving the health of Western Australians – in particular reducing tobacco exposure to children.

Initially, owing to the suddenness of the announcement, there was considerable angst from members and industry stakeholders alike associated with the announcement by the WA Health Minister Cook, particularly in regard to tightening up the rule to reduce the size of tobacco product pricing boards to A4 size. This is certainly an impost on the face of it for all our members in WA, particularly those that currently display tobacco pricing on LED screens at the tobacco point of sale. These were installed at great expense to enable store operators to simply and easily make price changes, and there are many, as they regularly arise, from a central location.

MGA has liaised extensively with the Minister’s office, in particular, Senior Policy Adviser, Gino Marinucci. Below is the latest summary of those discussions:

• From Monday March 18 the drop-dead implementation and compliance date to pull down existing price boards in favour of A4 price sized boards was extended by 6 months to September 18 2019.

• In other words, from Monday March 18 there will be a 6-month grace or

transition period (a soft compliance and education period) toward hard compliance at the end of 6 months.

• The Minister’s office has advised MGA

that … Any existing form of price board whether it be electronic, corflute, on the wall, etc may be kept but must have the proscribed ‘Health Warning’ sign on it and will have to be reduced to A4 in size.

• Details are still to be confirmed by the

Health Department in terms of the wording, font size/colour and position on the price board/electronic screen.

The Minister’s office has said this will be confirmed shortly.

PLEASE NOTE From 18 September 2020, it will be illegal for children under the age of 18 to sell tobacco products in WA retail outlets.

A summary of all strengthened tobacco legislative changes includes the following:

• Sales shopping reward schemes

are not allowed to include tobacco purchases.

• The sale of fruit- and confectioneryflavoured cigarettes and split-pack cigarettes are banned/outlawed.

Tobacco licences will not be issued

for the sale of tobacco products at sporting, cultural or other events, such as music festivals or market stalls.

Signage and display:

• Updated health warnings must be displayed next to where tobacco information or price signage is publicly displayed.

• Tobacco price information signs or

price boards will be reduced in size to no larger than A4.

• Specialist tobacco retailers are no

longer allowed to display tobacco products or smoking implements where they can be seen from a public place outside the premises. However, specialist tobacco retailers will be able to display only cigars and cigar cutters within their stores provided they are not visible from outside their stores, and if a new cigar health warning sign is displayed.

After consultation with MGA and other organisations, Minister Cook has agreed to delay the legislation concerning children under the of 18 years from serving and selling tobacco products.

The Department of Health has assured MGA that they will be taking an educational approach to the new changes, with a six-month lead-in period, to allow people to ease into the latest tobacco laws.

Members of the Health Department will be visiting every WA tobacco license holder to assist them with the changes that are required to be made in each supermarket or retail outlet.

As more information is received from the department, MGA will advise members accordingly.

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INDUSTRY NEWS

N

WESTERN AUSTRALIA

W O A AV IL A BL E

STOP PRESS — Latest Western Australia tobacco regulation update On April 10, MGA WA Director, Ross Anile, MGA’s Jos de Bruin and Marie Brown met with Health Minister Cook’s Senior Policy Advisor, Gino Marinucci and Ryan Janes, Team Leader Compliance & Enforcement, WA Department of Health, to discuss the new tobacco regulations, in particular the onerous changes directing MGA members to reduce tobacco pricing signage to an A4 size.

We clearly outlined that many MGA members with various tobacco pricing systems will be impacted, including those members with LED electronic tobacco pricing screens. The bottom line is, all members will have to comply with the new law, that tobacco pricing may not be communicated to consumers on signage anything greater than an A4 size board or screen.

CUVÉE ROSÉ YARRA VALLEY

Contact your De Bortoli representative for more details or visit debortoli.com.au /DeBortoliWines

IS M A NY S H A D E S

Senior Policy Adviser Marinucci did suggest that we as an industry association collate all the issues and matters of concern members are experiencing over the next 6 months as a consequence of this new law. MGA will be invited to make suggestions and engage in the next WA Tobacco Act review to be held late in 2019. It will be at this time MGA is able to recommend to the review panel that the tobacco pricing tool (board) be allowed to be a larger and more practical size.

MGA also raised the matter concerning e-vapourisers being banned from sale in WA whilst all other states and territories permit them to be stocked and sold in retail outlets. Mr Maranucci was dismissive of this fact and had little appetite to discuss e-vapourisers even though they could be a useful tobacco cessation device.

mga.asn.au | May 2019 | Edition 3

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LEGAL AND HR

31

NATIONAL

Legal and HR The Fair Work Commission Wage Review 2019 Each year the Fair Work Commission appoints an Expert Wage Panel (Panel) to undertake a review of the factors that are impacting on the Australian economy and based on the information it receives the Panel determines the amount of the annual wage increase. The Panel carries out its own research and calls for submissions from interested parties who can provide information to the Panel based on a specific industry or their recent experiences.

In March this year submissions were received by the Panel, which included various organisations such as employer and employee associations, federal and state governments and other interested groups and individuals.

MGA made its submission to the Wage Panel and focused on the difficulties that have been experienced in the independent retail industry during the past year. Our objective was to point out to the Panel that whilst the economy appears to be in a healthy state currently there are many factors which are holding back strong growth. Unemployment is low but underemployment is high and whilst inflation is low productivity is also low.

For small and medium independent retailers award wages and conditions remain burdensome, particularly when we consider there has been a 6.8% award increase over the last two years and further increases to penalty rates. As an example of hardship, a small retailer currently employing staff under the current retail award would struggle to take a Sunday off to spend with family when he realises, he would have to pay a rate of $51.98 an hour to a casual employee aged 20 years to work on that day. Instead the retailer has no choice but to work himself and the employee doesn’t get the job, so they both lose.

In our submission we refer to the importance of small to medium sized businesses in the economy and we pointed out that it is easy to overlook the importance of small businesses, as they tend to be overshadowed by the power that larger businesses can generate in the business world, simply by virtue of their size. However, in realistic terms the significance of smaller businesses in the economy can never be underestimated since there are more than 2.2 million small businesses. and they contribute to one fifth of GDP so it is vital that small businesses continue be recognised and encouraged to thrive and grow.

The independent retail sector continues to face many challenges and retailers take these challenges in their stride.

There is the continuous growth of online shopping, there are increasing threats from the growth of new brand supermarkets and now we have the likelihood another foreign retailer, namely Kaufland, ready to establish new hypermarkets in Victoria and South Australia which will no doubt spread into other states.

To date small businesses have been resilient and dealt with the challenges of competition, increased trading hours, increased penalty rates and high annual wage increases.

A high increase to the award rate again would be a significant blow to the sustainability of the independent retail sector.

We surveyed our members and the response was very clear they simply cannot face another escalation of costs. The submissions made to the Commission Wage Panel varied in suggested wage increases, the Unions are seeking a 6% increase and at the other end of the scale retailers are seeking between 1.2% and 1.8%. We can only hope that we do not see a further surge in wages in 2019. We will have to wait until June for the outcome.

Have you been affected by fire or flood?

DON’T FORGET MGA LEGAL AND HR ARE HERE TO HELP! Call our specialist team 1800 888 479 (option 1)

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LEGAL AND HR

NATIONAL

Three warnings and you’re out!

A common belief held by employers is that employees must be warned three times before they can legally be dismissed from their employment. Whilst this may be common practice in the process of dealing with difficult or underperforming employees, it is not entirely accurate.

The amount of disciplinary warnings that must be issued to an employee before they can legally be dismissed will depend mainly on the circumstances and context of the underperformance or misconduct. It will also depend on the process that has been followed by the employer leading up to the dismissal.

The general starting position is that employers must not dismiss an employee in a way that is considered to be harsh, unjust, or unreasonable.

Practically speaking, this means that employees must receive clear communication from their employer as to the particular incidents that have led the employer to discipline them, how those incidents amount to underperformance and misconduct, and how they can improve. Employees must also be afforded an opportunity to respond to the issues that an employer has put to them and must be given an adequate chance to rectify the underperformance or misconduct after it is brought to their attention.

Furthermore, the mere fact that several warnings have been issued to a particular employee may not necessarily protect an employer from liability for unfair dismissal remedies. It is important to take into account what those warnings were issued for exactly. For example, if all warnings issued have been in relation to the same matter this would be a vastly different scenario than if multiple warnings were issued to an employee in respect of different and unrelated issues.

DUE TO THE WIDE RANGE OF VARIABLES, IT IS STRONGLY RECOMMENDED THAT EMPLOYERS ASSESS POTENTIAL DISMISSALS ON A CASE BY CASE BASIS.

This process is usually best carried out through a formal disciplinary meeting in which issues and incidents are discussed and the employee has a chance to make responses, followed by a formal written warning.

LEGAL & HR ADVICE TAILORED TO YOUR BUSINESS NEEDS

mga.asn.au | May 2019 | Edition 3

Whether or not an employer will be able to avoid or reduce liability for unfair dismissal will depend on how closely they followed the above process as well as the nature of the underperformance or misconduct. For example, this could mean that employees may be validly dismissed after one written warning if the matters were sufficiently serious, or five written warnings if the matter was less consequential to the business.

Due to the wide range of variables, it is strongly recommended that employers assess potential dismissals on a case by case basis, rather than blindly following a blanket rule of an arbitrary number of warnings before an employee is terminated from their employment.

Employers would be prudent to keep detailed internal records of any issues or incidents that arise in respect of their employees’ performance or conduct and should not hesitate to undertake disciplinary processes in respect of single incidents, regardless of how significant (or insignificant) they perceive those incidents to be.

Employers needing any assistance at all with this disciplinary process, at any point during an employee’s employment, are encouraged to contact MGA’s Legal and HR team for further and more tailored legal advice.

As part of your membership, MGA’s Legal and HR team are here to help you and your business with advice that is personalised to your situation.

1800 888 479 (option 1) or (03) 9824 4111.

LEGAL AND HR

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NATIONAL

FWC to consider whether finger print scanning is lawful In 2018 the Fair Work Commission initially decided that an employee, who was sacked for refusing to use the new finger scanning system to clock on and off from work, was not unfairly dismissed.

Mr Lee was working as a general hand in a sawmill in Queensland, he was one of 400 employees. When the sawmill adopted a new system of biometric scanners, or finger printing, to gauge work arrival and departure times Mr Lee, who had worked for the employer for three and a half years, refused to use the system on the grounds it was a potential breach of his privacy. He repeatedly refused to use the system claiming that the information that was being collected was personal and could be sensitive. Mr Lee was the only employee in the sawmill who repeatedly refused to use the system, even after many meetings were held with him.

At the first hearing the Commissioner decided that as Mr Lee had refused to follow a reasonable policy that

the dismissal application should be dismissed as it was not harsh, unjust or unreasonable. Furthermore, the use of the technology was reasonably necessary, although the employer should have a privacy policy in place that allowed for the collection and safe keeping of the data.

Mr Lee was dissatisfied with the decision and sought permission to appeal the decision. The matter was referred to a Full Bench of the Commission for consideration. The Full Bench considered whether the application of the Privacy Act was relevant, particularly whether an employee’s record exemption includes how the record is obtained, also whether the employee’s objection to the collection of his personal information breached the employer’s attendance

rules. The Commission stated that the case also revealed “important novel and emerging issues” that “require guidance or consideration” and concluded that as biometric scanning is a relatively new and sensitive method of collecting personal information the appeal should be heard.

The decision to date reflects that if a business is currently using biometric printing then there should be a privacy policy in place that reflects the nonrelease of private information to any person or persons. The future final decision by the Full Bench will have significance in respect of the use of biometric scanning in workplaces.

Case reference: Jeremy Lee v. Superior Wood Pty Ltd (2018/6600[2019]FWCFB95)

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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LEGAL AND HR

NATIONAL

How flexible are individual flexibility arrangements?

Under Enterprise Agreements (if applicable) and Modern Awards, including the General Retail Industry Award 2010 (“GRA”) 1, individual flexibility arrangements (“IFA”) are alternative agreements that can be reached between an employer and a single employee to vary the application of certain conditions of the Award.

Any variation agreed upon, must ‘meet the genuine needs of both the employee and the employer’.2 We will focus on the GRA given its relevance to the retail industry. Under the GRA, the employee and employer can vary the following:

• arrangements for when work is performed; or • overtime rates; or • penalty rates; or • allowances; or • annual leave loading.3 The IFA must be provided to the employee in writing,4 only after he/she has commenced employment.5 That means it cannot be a condition of employment for an employee to start work with the business. A consultation with the employee is to be conducted to ensure that the conditions of the proposed IFA are completely understood.

There are many advantages to IFAs to both the employee and the employer, such as tailored conditions of employment, job satisfaction, consideration of personal circumstances, and greater retention of employees. However, the core objective of IFAs is to ensure that the employee is ‘better off overall’6

(“BOOT”). That can be established by comparing the conditions of the employee on and off the IFA, with particular attention being paid towards the financial aspect. That means an IFA’s terms cannot go beneath the GRA’s conditions.

For example, if a higher rate of pay is being remunerated to the employee under the IFA in lieu of overtime and penalty rates, the IFA must clearly stipulate such arrangement. If there is uncertainty, employees may be able to claim underpayment of such entitlements, even if they were not underpaid.

Members must understand that employees can neither be forced nor coerced to agree to an IFA7 and no action can be taken against them for refusing to do so.

IFAs do not need to be approved by the regulatory body, being the Fair Work Commission. Provided the requirements of the GRA are met and the parties agreed to its conditions and sign it, it will be effective until it is terminated. IFAs can be terminated in multiple ways,8 the most common being by the ‘employee giving 13 weeks written notice to the other party’.9 Please note that IFAs are not permanent and must be reviewed on a regular basis after implementation to ensure that its conditions of employment remain at the same level or above that of the GRA, to achieve the BOOT. We will continue this section on IFAs in future issues, to cover IFAs pursuant to Enterprise/Collective Agreements in place.

The requirements of IFAs stem beyond the above and attention must be paid to clause 7 of the GRA for further details. As such, if members have any queries about IFAs or wish to have them drafted and implemented in their business(es), then please do not hesitate to contact our Legal and HR team on 1800 888 479 (option 1) or (03) 9824 4111.

1 Fair Work Commission, Australia’s National Workplace Relations Tribunal, General Retail Industry Award 2010 <https://www.fwc.gov.au/documents/documents/modern_awards/award/ma000004/default.htm>.

2 Ibid cl 7.1.

3 Ibid.

4 Ibid cl 7.4(a).

5 Ibid cl 7.3.

6 Ibid cl 7.5.

7 Ibid cl 7.2.

8 Ibid cl 7.11.

9 Ibid.

mga.asn.au | May 2019 | Edition 3

LIQUOR NEWS

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NORTHERN TERRITORY

Liquor News NT Exposure Draft of the Liquor Bill 2019 The Northern Territory Government in response to the 2017 Alcohol Policies and Legislative Review Final Report (the Riley Review) which recommended that the Liquor ACT 1978 be re-written to provide a coherent framework for the operation of the liquor industry within harm minimisation principles, have released the Exposure Draft of the Liquor Bill 2019 for industry consultation and public comment.

The key changes in the exposure draft bill are:

• The role of the Director of Licensing be re-established

• Changes relating to the Liquor Commission Public Hearings

• Liquor Licences and Authorities • A new BYO Authority • Limited period licences • Annual Risk Based Licensing Fees and application fees

• Application process for liquor licences • Public interest and community impact assessment

• Substitution of premises • Complaint process • Definition of ‘intoxication’ • Definitions of ‘liquor’ and provisions

relating to inedible substances containing alcohol (e.g mouthwash)

• Improving responsible service of alcohol (RSA) requirements

• Infringement notices for liquor offences

• Prohibiting and restricting promotion of irresponsible drinking

• Offences and penalties

• Public Restricted Areas, Alcohol

Protected Areas, General Restricted Areas, Restricted premises and the 2km law (regulated places)

• Designated Areas.

There have already been significant recent changes made to the Liquor Act 1978 where the government determined that these changes could not wait for the full re-write of the legislation, which included;

• The establishment of the independent

Northern Territory Liquor Commission

• The introduction of the minimum floor price for liquor products

• The introduction of a community

impact and public interest test for liquor licence application

• Improved power in relation to Police

Auxiliary Liquor inspectors and point of sale duties outside takeaway premises

• The introduction of a 48-hour licence

suspension power for police in specific circumstances

• The legislating of a 5-year moratorium on any new takeaway liquor licences.

MGA have been in constant consultation with the NT government and the Alcohol Review Implementation Team (ARIT) and have made submissions on recommended changes to the Liquor Control ACT impacting store licences to reach workable solutions to the recommended changes and will, on behalf of its members, be making a submission on the Exposure Draft of the Liquor Bill 2019, which is due to be submitted by COB Friday 26 April 2019.

You can download a copy of the Exposure Draft of the Liquor Bill 2019 on the following link http://alcoholreform.nt.gov.au/liquor-bill.

You can also download an overview of major changes: the Risk Based Licensing (RBL) Framework (including an updated fee calculator); liquor licence complaints process – Part 7 Division 3; and liquor licence application process – Issuing a licence or authority – Part 3 Division 3 flowcharts by visiting http://alcoholreform.nt.gov.au/liquor-bill.

MGA will keep all NT members informed on any further developments.

Should you have any queries please contact George Kovits in our national support centre on free call 1800 888 479 (option 3).

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LIQUOR NEWS

NATIONAL

WA Government prepare regulations for large format Packaged Liquor Licence stores As a result of the amendments to the Liquor Control ACT 1988, the office of the Hon Paul Papalia CSC MLA, Minister for Tourism, Racing and Gaming, Small Business engaged with industry stakeholders requesting submissions in relation to forming regulations on the future establishment of large format packaged liquor outlets in Western Australia.

As a result of the submissions received a discussion paper was developed outlining how the proposed criteria was reached and although the discussion paper findings are only indicative of the proposed regulations, the content of the regulations have to be endorsed by the Better Regulation Unit before they can be approved by the Minister and subject to the Joint Standing Committee on Delegation Legislation.

The questions posed on the discussion paper were;

• Retail Floor Space – What would be your preferred size for

the retail section of a packaged liquor premises (within the suggested parameters of 400 and 600 square metres)?

• Preferred Distance Between Large Packaged Liquor Premises – Proposed 5km radius – What would be your preferred

distance between packaged liquor premises in the (a) Metropolitan area; and (b) Regional areas?

• Distance Measure – What type of distance measure would you prefer to be used?

After considering the submissions made by the 14 respondents which included the MGA, the Director of Liquor Licensing intends to prepare regulations to support sections 36B and 77A of the Liquor Control Act 1988 as follows: Floor size of retail section: 400 square metres Metropolitan distance: 5 kilometres Regional distance: 12 kilometres Measure: Travelling distance by vehicle on

gazetted public roads (exact

terminology to be determined).

When passed into legislation this will be a big win for independent liquor store owners, as it will stop Coles and Woolworths developing their big box format stores in an already crowded liquor trading environment which potentially could destroy existing small to medium liquor businesses servicing the community.

Kevin Anderson has been promoted to the NSW cabinet as the NSW Minister for Better Regulation and Innovation, taking responsibility for the former Liquor and Gaming portfolio from former Racing Minister Paul Toole.

Anderson, the Nationals’ member, recently won a third term at the recent state election and has been appointed to his first ministerial role since being elected back in 2011.

mga.asn.au | May 2019 | Edition 3

On behalf of the MGA Board and MGA Liquor Committee we congratulate Mr Anderson on his appointment to the Ministry and look forward to working with him, and his department, to ensure the Packaged Liquor sector operates in a strong, safe and vibrant environment.

Hon Kevin Anderson MP

NSW Government appoints new minister for Liquor and Gaming

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TRAINING

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NATIONAL

Industry Training Implementing a strong food safety culture Food safety culture in a business is how everyone (owners, managers & employees) thinks and acts in their daily job to make sure that the food they make or serve is safe. It’s about having pride in producing safe food every time, recognising that a good quality product must be safe to eat.

Food safety is your top priority.

There are many benefits of having a strong food safety culture in your food business, the most obvious being the manufacture and sale of safe food. It can also protect your business from financial loss and maintain the integrity of your business brand.

The following points can help with establishing a strong food safety culture within your food business.

1. Strong leadership – it starts at the top. Managers/supervisors must show the way and openly commit to making safe food the top priority throughout the business.

2. Committed managers – managers can show their commitment to food safety through dedicating time and effort, implementing effective two-way communication and a supportive environment where staff feel confident to contribute is a must.

3. Everyone contributes – everyone in the business believes making safe food is important and everyone plays a part. This includes the manufacturer, delivery drivers, contractors as well as the team leaders and staff.

4. Everyone is accountable – everyone understands that they are held responsible for ensuring food is safe.

5. Knowing and acting – this is making sure that all team leaders and staff know the risks and do the right thing, every time. Starting with a comprehensive training program and implementing refreshers when required, will be a great foundation to build upon.

6. Continual improvement – be proactive by monitoring what goes on. Look for ways to improve and prevent problems happening in the future. Ensure staff training is up to date.

As published by Food Standards Australia New Zealand (FSANZ).

Food safety basics

 

CLEAN Wash and dry your hands thoroughly and wash and dry chopping boards and utensils, especially after handling raw meats, or vegetables with visible soil.

CHILL Ensure your fridge is kept below 5 degrees Celsius and keep cold foods cold; frozen foods to be stored below minus 15 degrees Celsius.

 

COOK Cook chicken, mince, sausages and similar meats right through until they reach 75°C using a meat thermometer. Serve hot food steaming hot above 60°C. SEPARATE Keep raw and cooked foods separate when storing and preparing and don’t put cooked food back on the surface raw meat was on.

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

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NATIONAL

Hazards in the workplace Retail businesses hold the potential to pose several hazards to their customers and employees. Below are a few obstacles businesses must overcome daily and tips on being proactive in addressing the issues.

Obstruction hazards can cause customers and employees to trip. It is important to ensure aisles and walkways are clear in order to prevent tripping hazards to customers and employees.

Pallets and various other stocking materials should be kept off the store floor during normal business hours to avoid creating tripping hazards. Other obstacles to be aware of include loose floor mats, any products that have fallen off the shelves, and exposed electrical cords. Supermarket employees should be on guard for any hazards that present themselves throughout the course of a business day and take immediate action to prevent injury.

Slipping hazards can occur from water build-up on grocery store floors. Leaky pipes in refrigeration units or spilled products can create a potential slipping hazard. Maintaining floor cleanliness throughout a store is vital to the wellbeing of its employees and customers.

Grocery store staff should always wear slip-resistant shoes and maintain a daily cleaning schedule to prevent dirt and oil from building up on floors. Employees should be educated on proper cleaning practices and the correct materials to use in the event of a spill.

Bacterial hazards can develop when equipment, including knives, cutting boards, and other utensils are not properly maintained. Certain departments, like the meat and deli sections of a grocer, require special attention to ensure bacteria does not spread. These departments are prone to bacteria growth and should

be monitored carefully for crosscontamination. To maintain sanitation in the workplace, employees should practice washing their hands regularly, and wear clean clothing to work to prevent the spread of outside bacteria.

Retail businesses should supply sanitizing stations throughout the store for constant sanitary purposes.

Mechanical hazards can occur from equipment with sharp or moving parts, like deli slicers or forklifts. An employee tasked with using any type of machine should be properly trained and practice safe use of the equipment. If necessary, employees should wear the proper protective gear when utilizing equipment.

Machinery that is used regularly should be inspected for damage. Should any issues arise, management should be made aware right away. The damaged equipment should be isolated so not to be used.

What are manual tasks?

Manual tasks refer to any activity that requires a person to use their physical body (musculoskeletal system) to perform work. It includes manual handling (the use of force in lifting, lowering, pushing, pulling, carrying or otherwise moving, holding or restraining any person, animal or thing); repetitive actions; adopting awkward or sustained postures and tasks that expose workers to vibration.

RISKS OF HARM AND INJURY What injuries can result from manual tasks?

Most jobs require several types of manual tasks to be performed. The most common workplace injuries linked to manual tasks include sprains, strains,

hernias and disc injuries to the spine. An injury or disease of the musculoskeletal system can arise over a period (frequent or prolonged manual tasks over a period of time) or suddenly (such as from a single lift being heavy, awkward or an unexpected event such as trip and fall while carrying a large box) when performing manual tasks.

Risk factors Some of the more common manual tasks risk factors encountered by employees that can result in injury (although it will vary between the various job roles) include:

• handling heavy, bulky or awkward loads • sustained and repetitive gripping • holding loads/arms away from trunk

• inadequate task variety or breaks • twisting back, neck or upper body • working under time pressures • reaching and load handling at low levels and above shoulder height

• postural or movement constraints

due to working in narrow or obstructed work areas

• repetitive movements • working in cold environments • strenuous lifting, lowering, carrying, pushing and pulling

• inadequate task variety or breaks (tasks rotation)

• load handling on one side • sustained and repetitive gripping.

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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

mga.asn.au | May 2019 | Edition 3

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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