Independent Retailer magazine | August 2019 by MGA Independent Businesses Australia

Issue

05 AUGUST 2019

“ PENALTIES FAIRER

LESS

Y T I X E PL M O C

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“AW

SIMP LER

ARD S

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LE STAB S

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“FLEXIBILITY ” MORE

MGA supports industrial relations reforms.

YOUR INDUSTRY NEWS PROVIDED BY MGA INDEPENDENT RETAILERS

The 2019 GALA Ball Join our 70th anniversary extravaganza for a night ﬁlled with glitz and glamour. Friday, August 23

6:30pm―Midnight

Grand Ballroom, Soﬁtel Melbourne On Collins

DRESS

RSVP

Formal with a touch of colour

Friday, August 10, 2019

"As the proud patron of GALA, it gives me great pleasure to invite you to this year's spectacular 70th Grocery and Liquor Association Ball." F R E D H A R R I SO N | C EO, R I TC H I ES

FOR MORE INFO VISIT mga.asn.au/events/gala-ball All proceeds from the evening will contribute to the continued impact the Reach Foundation provides for over 44,000 young Australians annually.

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.

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

Contents 5

CEO welcome

Master Grocers Australia Limited – Notice of Annual General Meeting

IGA South Australia supports SA Flying Doctor Service

IGA Hall of Fame

Payroll tax is a deterrent to employ staff

10 National IGA Awards of Excellence

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

12 Metcash Supermarkets and Convenience Expo

MGA CHIEF EXECUTIVE OFFICER

21 MGA meets with Romeos

Jos de Bruin 03 9824 4111 E: jos.debruin@mga.asn.au

23 Whites Sunshine Coast IGA Supermarket Group

CORPORATE PARTNERSHIP & MEDIA SALES

26 Romeo’s IGA Summer Hill – Sydney

Mark Paladino 0417 264 331 E: mark.paladino@mga.asn.au

EDITORIAL & PRODUCTION

13 IGA 2019 National Conference 14 IGA Xpress Mascot unable to trade 16 Industrial Relations Review – at last! 17 Enterprise bargaining — is it all too difficult? 18 Ongoing training — Is it necessary? OMG YES! 20 Fair Work Commission awards 3% rise in annual wage review 21 NSW Minister for Small Business 22 Queensland Small Business Week – Friday 31 May 2019

24 What is mental health?

28 Illicit and illegal tobacco continues to flourish 29 MGA Western Australia 32 Victorian single-use plastic bag ban due to come into effect in November 34 Australian winemakers take out major international awards 35 Queensland – single-use plastic bag bans – 1 year on

Genevieve Laidlaw E: genevievel@mga.asn.au

38 Keeping the records straight

40 The importance of Food Safety, Training and Recall

39 Dealing with staff register problems

www.facebook.com/ MGAIndependentRetailers

43 Lightweight plastic shopping bags to be banned in Victoria

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

44 Get your hands on the new multi-language flyer

www.twitter.com/ MasterGrocers

47 MGA TMA Committee appoints new member

44 Reminding young adult Australians The Internet Remembers 45 Victorian licence fees and penalties increase from 1 July 2019 50 Long Service Leave in Victoria

MGA Corporate Partners DIAMOND

PLATINUM

GOLD

SILVER

BRONZE

ASSOCIATE

WAREHOUSE AND BRAND PARTNERS tasmanian independent retailers

CEO REPORT

CEO Welcome Best wishes for the new financial year! Every year we say, that our time seems to move quicker, and we have less of it every year. The last thing a business owner can afford to do is to stand still. Change in the way consumers behave and think about our businesses, the services we offer our communities, the shopping experience we deliver along with the ever-increasing challenges of intensifying competition, has never more been more real for MGA members than now. Members who have “backed themselves” and invested back into their businesses in the form of refurbishments, upgrades and generally modernising their stores have reaped the benefits from delighted customers with increased sales, increased efficiencies and more motivated staff.

to the needs of its members. MGA’s Board has resolved that for MGA to be a sustainable organisation into the future, providing members with a first-class “back of house” support service, then it must grow its membership base. MGA is unambiguously an organisation that exclusively represents, advocates on behalf of, and supports family and private business owners. This positioning fostered by members over the past 100 years, is unique and very powerful but is by no means an accident. Together with an increasing membership of packaged liquor, timber and hardware businesses, the majority of MGA’s members are supermarket owners. There are over 1,000 supermarket operators who have liquor licenses.

In the past 4 years, we have seen our members incur a collective wage increase of almost 12% at a time when the retail food economy has experienced deflation. The forthcoming new financial year will again bring with it many issues and matters facing members that MGA will be addressing on behalf of members. MGA’s Board of Directors have identified several priorities affecting the sustainability of members businesses including at a federal level; Industrial Relations reform, the increasing cost of wages, the burden of energy costs, unfair competition and illicit tobacco, and at a state level; unfair planning and zoning practices, land tax, trading hours deregulation, packaged liquor (WA, NT, SA & QLD), tobacco regulations, energy costs, payroll tax, container deposit schemes (WA) and plastic bag bans (VIC). MGA’s Board of Directors have identified 2 workstreams for FY 2020, namely, Industrial Relations reform and future-proofing MGA as an employers’ organisation by better understanding the needs and expectations of current members and potential members in the future. MGA as an employers’ organisation is vulnerable to market forces, just the same as any other business. Being a not for profit (but not for loss) registered organisation, MGA is continually seeking to be relevant

MGA’s Board has resolved to investigate the feasibility of creating a “super” brand, or an overarching brand, that will incorporate all members under the one brand with the very strong common force being, that all businesses, whether they be supermarkets, liquor or timber and hardware, are all family and privately owned businesses. This project will commence very soon. Industrial Relations reform is vital if our industry sector is to survive and grow. Family and privately-owned supermarkets employ pro-rata, many more staff than their corporate counterparts owing to people, rather than machines, serving their customers. Regularly fostered by union people, Industrial Relations reform is more often than not seen as a threat to workers within workplaces, rather than an opportunity for employers and employees to work together toward providing a fair, flexible and robust workplace that benefits employers and employees alike. If businesses are able to yield a return on their investment and make a modest profit then they will employ more people for longer hours. The phenomenon of underemployment is growing. Inflexible and costly awards and a rigid Fair Work Act all combine to deter employers from employing staff. Continued >

CEO REPORT

An example of a complex award system in our industry sector is when an MGA member recently reported paying a 16-year-old employee for 14 hours of work at 5 different pay rates. This is simply onerous and ridiculous, leaving employers at great risk of making unintentional pay errors and resulting in a reluctance to employ staff. In the past 4 years, we have seen our members incur a collective wage increase of almost 12%, 2.2% in 2016, 3.3% in 2017, 3.5% in 2018 and 3% in 2019. This is at a time when the Australian economy, in a food retail sense has experienced deflation, or at best sales are stagnant, competition has intensified and the cost of energy has escalated by 300%, all resulting in margins being squeezed to the brink of unsustainability. MGA will be immediately embarking upon an industry project to survey and research members to gather data, facts and evidence that will be presented to the next National Wage Review in 2020 and to assist MGA to develop strong and impactful Industrial Relations policies, to be presented to the federal government that will drive employment growth within the independent supermarket, liquor, hardware and timber sectors.

MGA is seeking member support for a new industry survey and research project that will be presented at next year’s National Wage Review. Your insights will be of great value. We ask members for your support for this project. Please come forward by contacting the MGA Legal and HR team, because your insights will be of great value and will hopefully make a contribution toward our members being able to employ more staff for longer hours. Finally, The Council of Small Business Organisations of Australia (COSBOA,) will be holding its Small Business Summit at the Sofitel Hotel, Melbourne on Thursday 29 and Friday 30 August. We encourage all members to consider attending this unique event and meeting with state and federal regulators and members of parliament as well as fellow business owners.

Master Grocers Australia Limited – Notice of Annual General Meeting Master Grocers Australia Limited trading as MGA Independent Retailers will be holding its Annual General Meeting on Wednesday 20 November at 7:15am at Leonda Receptions, Hawthorn, Victoria. Each year the MGA AGM coincides with a prominent and highly attended industry breakfast event which includes special guests and speakers. This year will be no exception! The theme for this industry breakfast will be “Future-proofing your business by investing in innovation”. The special guest speakers will be compelling and give members and attendees inspiration to explore and pursue ideas that will enhance the way independent supermarkets operate and ultimately improve the consumer’s overall shopping experience. We encourage all members and industry stakeholders to attend this event, to mingle with our guests and speakers and to be inspired to do great things instore! Members, please diarise this AGM and unique industry event.

Date

MGA will keep members informed and updated on all matters being dealt with at a state and federal level, in the meantime best wishes for a terrific trading year.

Leonda Receptions, Hawthorn, Victoria

Cheers and happy trading!

7:15am start

Jos de Bruin CEO MGA Independent Retailers

Looking forward to seeing you!

mga.asn.au | August 2019 | Edition 5

Wednesday 20 November, 2019

Location Time

INDUSTRY NEWS

SOUTH AUSTRALIA

IGA South Australia supports SA Flying Doctor Service Congratulations to IGA South Australia for once again supporting a crucial rural and regional community support service. The Royal Flying Doctors Service (RFDS) unveiled its new Independent Grocers of Australia (IGA) branded aeromedical plane. The $7 million flying intensive care unit, VH-FVE (Foxtrot-Victor-Echo), is one of 75 RFDS aircraft spread across the country. In addition, RFDS and IGA announced its new three-year collaborative sponsorship.

“Our association with locally-owned IGA stores stretches for decades, and it’s terrific to now have the company also supporting our work in this tangible manner. IGA’s sponsorship will directly support our capital-raising program for the on-going upgrade of our fleet of medicallyequipped aircraft that deliver emergency aeromedical services throughout South and Central Australia.”

The event, which took place at the RFDS Hanger at Adelaide Airport was attended by Tony Vaughan ASM, CEO of RFDS Central Operations, Scott Marshall, CEO of Metcash Supermarkets and Convenience, and Zac Mina General Manager of Metcash Supermarkets and Convenience SA/NT.

Also, present was Joseph Romeo, Chairman of the IGA Board and National Retailers Council. “IGA is delighted to support the Royal Flying Doctors Service,” Mr Romeo said.

Mr Vaughan said the significance of IGA’s financial support is that it will reach far and wide and deliver lasting community benefit. “The RFDS conducts over 100 aeromedical flights across Australia every day. It airlifts 25 South Australians and Territorians every day but it relies on the support from the community to keep its crews in the sky,” he said.

“IGA stores sit at the heart of communities across Australia and you’ll probably find an IGA store in most of the remote and regional towns that the RFDS fly into day in and day out. This partnership is an alignment of two great brands that are committed to serving South Australians and Territorians and we are delighted to contribute towards keeping these life-saving crews in the air.” As part of the partnership, IGA helps facilitate the purchase and efficient running of RFDS aeromedical planes. Source: Transcontinental News Port Augusta

Tony Vaughan ASM, Scott Marshall and Joseph Romeo, with the IGA-badged aeromedical aircraft unveiled at Adelaide Airport.

INDUSTRY EVENTS

NATIONAL

IGA Hall of Fame Metcash Expo 2019 Each year at the IGA Awards of Excellence evening there is a prominent IGA/Foodland retailer family (or families) inducted into the prestigious IGA Hall of Fame. This award is revered not only by its recipients but by all retailers, industry stakeholders and suppliers. Inductees are recognised for their significant commitment and contributions to the independent supermarket sector. Inductees include hard-working families, many of whom are intergenerational, who have operated their business through good and hard times and dedicated their lives to growing their businesses and supporting the communities in which they trade. This year prominent Victorian family retailers Rod Allen, Ron and Christine Corrigan from IGA Fresh Mount Martha, together with Leo and Elaine Ryan, from the Ryanâ&#x20AC;&#x2122;s

Group of IGA supermarkets in Ballarat, Victoria were inducted into the IGA Hall of Fame. Rod Allen and Ron Corrigan have both been in the independent supermarket industry for well over 35 years. They came together to form their partnership and successfully operate their community store in Mount Martha on the Mornington Peninsula, some 30 years ago. Rod and Ron have led the industry in supermarket shopping standards, always sharing their knowledge with fellow retailers. Rod Allen during this time was a passionate Master Grocers Australia (MGA) Board member for over 20 years, 16 years as the Board President. Rod proudly

advocated in the best interests of all MGA members all around Australia. Leo and Elaine Ryan, like all independent retailers, commenced the operation of their very first store located at North Ballarat almost 40 years ago and together with sons Ben and Nathan, who are working in the business, have built their business, to operate 6 large format licensed supermarkets and 2 large liquor stores, to cover not only the needs of their customers in Ballarat but in other country and regional towns as well. Congratulations to the Allen, Corrigan and Ryan families, upon being inducted into the IGA Hall of Fame in 2019.

INDUSTRY NEWS

NATIONAL

Payroll tax is a deterrent to employ staff Who would have thought that at a time when we are all very concerned about low employment growth and the increasing phenomenon of underemployment that we have state governments around Australia seeing fit to raise revenue by taxing business owners and employers with a “payroll tax” for exceeding a payroll threshold? Just doesn’t make sense right! MGA has been meeting with various ministers in each state for a decade or more highlighting this very negative tax that deters employers from employing staff at the risk of exceeding a payroll threshold, that triggers paying an additional tax. This threshold varies in each state. MGA has requested from consecutive federal governments that this issue be raised and resolved at a COAG level, such is the urgency to address this matter. We congratulate recent initiatives from the Victorian, New South Wales and Queensland governments to lower payroll tax percentages and increase payroll

thresholds with a view of lessening this unsavoury cost burden to employ staff. From 1 July 2019, Victoria will increase its payroll threshold from $650k to $700k and will decrease the percentage in the country and regional areas to a quarter of 4.85% (1.22%). The NSW Government has increased the threshold to from $800k to $900k and the Qld Government has increased the payroll threshold from $1.1m to $1.3m whilst reducing the percentage in the country regional areas by 1% to 3.75%. Payroll tax essentially serves as a state tax on employment.

STATE

THRESHOLD

RATE

QUEENSLAND

$1,300,000 (annually) $108,333.33 (monthly, divide 12)

4.75% — Metro 3.75% — Country/Regional

WESTERN AUSTRALIA

$850,000 (annually) $70,833 (monthly)

5.5% — Unchanged as of 1 July 2018

VICTORIA

$700,000 (annually) $58,333 (monthly, divide 12)

4.85% — Metro 1.22% — Country/Regional

NORTHERN TERRITORY

$1,500,000 (annually) $125,000 (monthly)

5.5% — Unchanged as of 1 July 2018

SOUTH AUSTRALIA

1. $600,000 – 1.5M 2. $1.5M – 1.7M 3. Over $1.7M

1. Nil 2. Variable 0% to 4.95% 3. 4.95%

TASMANIA

$1,250,000 (annually) $102,740 (30 day month)

6.1% — Unchanged as of 1 July 2018

NEW SOUTH WALES

$900,000 (annually) $73,970.58 (30 day month)

5.45%

ACT

$2,000,000 (annually) $166,166.66 (monthly)

6.85% — Unchanged as of 1 July 2018

Table indicates the differing rates and thresholds across each State and Territory in Australia as of 1 July 2019.

INDUSTRY EVENTS

NATIONAL

National IGA Awards of Excellence Metcash Expo 2019 The 2019 National IGA Awards of Excellence was held on Monday 16 July 2019 in the Star Hotel Ballroom, Gold Coast, Queensland. This prestigious event recognises the unique achievements and successes of IGA retailers from around Australia. All nominees for various national and departmental awards are to be heartily congratulated for their hard work and tenacity in providing their customers with an exceptional shopping experience.

All awards were presented to winning recipients by Metcash CEO Jeff Adams, Metcash Supermarkets and Convenience CEO Scott Marshall and National Retail Council Chairman, Joseph Romeo.

Congratulations to Michael Shakes and family, owners of the Market Fresh Street in Atherton Queensland for winning the National Retailer of the Year Award.

NATIONAL DEPARTMENTAL AWARDS Delicatessen Department • IGA – Romeos Food Hall MLC Martin Place, Sydney, NSW

• Supa IGA – Boccaccios Balwyn, Victoria Meat Department • IGA – Baldivas, WA

• Supa IGA – Romeos Food Hall Summer Hill, NSW Bakery Department • IGA – Preston Street, Como, WA

• Supa IGA – Ritchies, Dromana Fresh Produce Department • IGA – Preston Street, Como, WA

• Supa IGA – Fresh Street Market, Atherton, Qld Grocery and General Merchandise Department • IGA – Baldivis, WA

• Supa IGA – Fresh Street Market, Atherton, Qld

Dairy Freezer Department • IGA – Baldivis, WA

• Supa IGA – Ashcroft’s Erskine Park, NSW Customer Service and Experience Department • IGA – Exmouth, WA Retail Transformation & Information • Foodland Brighton, SA – Tim Rugless and family IGA SA Xpress Small Format innovation award • Swanbourne Market IGA Xpress WA – Steve Carre Community Award • Penola IGA Fresh, SA – Shane & Kerry McPherson Rising Star Award • Kellie Johnstone – Mawhoods Grenfell IGA Plus Liquor – NSW/ACT

John David Team Member • Min Kang – Data Science Team Leader – Macquarie Park NSW

NATIONAL STORE OF THE YEAR AWARDS • IGA Xpress – Loveys IGA Xpress Hawks Nest, NSW – Peter Trappel & James Lovegrove

• SUPA IGA / Foodland IGA – Fresh Street Market, Atherton, Qld – Michael Shakes and family

• IGA – Preston Street, Como, WA – Pierre Sequeira and family

NATIONAL IGA RETAILER OF THE YEAR • Fresh Street Market, Atherton, Qld – Michael Shakes and family

mga.asn.au | August 2019 | Edition 5

INDUSTRY EVENTS

IGA National Retailer of the Year — Fresh St Market IGA Atherton QLD

SUPA IGA Store of the Year Year — Fresh St Market IGA Atherton QLD

IGA Xpress Store of the Year — Loveys IGA Xpress Hawks Nest NSW

IGA SA Xpress Small Format innovation — Swanbourne Market IGA Xpress WA

Rod Allen and Arthur Corcoris

IGA Store of the Year — IGA Preston Street WA

INDUSTRY EVENTS

NATIONAL

Metcash Supermarkets and Convenience Expo 15 – 17 July 2019 July 15 – 17 saw retailers from around Australia make the annual journey to the Gold Coast in Queensland to attend the Metcash Supermarket and Convenience Store Expo. The theme of the Expo was “Best Store in Town”. Taking up the entire Gold Coast Convention Centre, the Metcash organising team are to be commended for the very smooth running of this expo involving literally thousands of people. The logistics involved to bring hundreds of varying grocery, fresh, equipment and service suppliers together under the one big roof are mind-boggling. This event is a rich opportunity for retailers and suppliers of goods and services to meet and discuss their businesses and learn about the many new innovations and future consumer trends vital to strengthening retailer’s relevance with customers. Suppliers of groceries, fresh produce, delicatessen foods such as small goods and cheeses, bakery, and dairy items all took part to share their insights and products with retailers.

mga.asn.au | August 2019 | Edition 5

Former MGA President Rod Allen and President Debbie Smith.

MGA’s Marie Brown with MGA Director Lincoln Wymer and Reddrop’s Foodworks team.

This is also a very important opportunity for retailers to meet with the many technology companies that are continuously developing new and more efficient means to engage with their customers. The latest point of sale systems, security, staff

engagement and consumer engagement technologies were all present. Cutting edge tech company GPK, a supplier of outstanding tech support services to the supermarket industry, has leveraged the latest Artificial Intelligence capability to create face recognition, as well as, full inter-store equipment connectivity, to create accurate time-saving efficiencies and to better manage the store. Suppliers are to be congratulated for their commitment and investment into this event and for driving the growth of their businesses through the independent supermarket sector. Much information was shared, many future appointments were made and many opportunities to do business and making deals were consummated. This event is of such a standing that not only retailers and suppliers are attracted to participate but also state and federal members and ministers of parliament. There are also many and varying ancillary businesses who attend wanting to find out more about our robust industry sector.

INDUSTRY EVENTS

NATIONAL

IGA 2019 National Conference Metcash Expo 2019 The National IGA conference was held in the Star Hotel Ball Room on the mornings of the 15 and 16 July. Over a thousand store owners, their managers and staff, together with Metcash staff and suppliers took part. The Master of Ceremonies for this all-important forum was IGA Ambassador, Shane Jacobsen. Presenters included Joseph Romeo, Chairman of the National Retail Council (NRC), Frank Spano, Deputy Chair of the NRC, Jeff Adams, Metcash CEO, and Scott Marshall, CEO Metcash Supermarkets and Convenience. Much work has been undertaken by various IGA retailer committees to seek a solution toward greater IGA brand clarity with retailers and importantly consumers. These presenters shared with all those present, the insights from extensive consumer surveys and research from which a clear brand vision and strategy for greater brand clarity for the future was shown.

businesses. Business to consumer communication and connection is vital to drive a loyal community of customers. World-class speaker and presenter, Michael McQueen spoke about the future and the need for businesses to be agile and adapt to the changing world we live in. We live in a world of constant change, none more so than in the retail industry. Some of Michael’s quotes included; “The pace of change has never been this fast – but it will never again be this slow.” “Resisting change is like trying to hold your breath, even if you are successful, it won’t end well” Quote from 2,600 years ago by Lao Tzu

“The best time to fix the roof is when the sun is shining.” All sessions provided retailers, suppliers and Metcash participants with a strong sense of direction and purpose for the future growth of the independent supermarket sector in Australia.

Far left: IBA NSW Ops Manager Adrian Ricci. Far right: Rod Pritchard, ALM National.

Other presenters included a panel comprising NRC members and senior Metcash executives who addressed the many questions and queries put forward by retailers. Russell Howcroft, advertising and marketing guru of The Gruen Transfer fame delivered a compelling presentation to the audience stressing the importance of marketing and brands as being the ultimate tools to drive and build

INDUSTRY NEWS

NATIONAL NEW SOUTH WALES

IGA Xpress Mascot unable to trade MGA members around Australia are affected by many extenuating circumstances that affect their businesses on a day to day basis. None more extenuating than for our member, the owners of IGA Xpress Mascot, located on the ground floor in the now condemned Mascot Towers residential complex located just 50 metres away from the Mascot railway station in Sydney. Store owners and business partners Ward Mellick and Scott Hill went from operating a very successful neighbourhood licensed supermarket, delighting local residents and customers, to suddenly and without warning shut the store indefinitely owing to the building being condemned and labelled as unsafe. According to engineers, the building is experiencing a great deal of cracking of walls and floors that will need to be assessed and repaired. The building has been divided into zones Green, Amber and Red, unfortunately, the IGA Xpress is in the Red Zone owing to the extent of the building defects. Ward and Scott are faced with a terrible dilemma of the unknown. They have 15 staff, a store full of stock and have been prohibited from trading until further notice.

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MGA recently met with Ward and Scott together with the NSW Small Business Commissioner, Robyn Hobbs and her very capable team with a view of sifting through the complexities of this ordeal and gaining a better understanding of the options that may be available to reopen the store in the near future. We thank the Small Business Commissioner, Robyn Hobbs, for being directly involved and we wish Ward and Scott a speedy return to trading and serving their loyal customers. STOP PRESS Since the writing of this story, Ward and Scott have been able to negotiate with authorities that they can open their store for very limited trading. Whilst barricades are still up, deliveries canâ&#x20AC;&#x2122;t be taken through the front doors and there are no staff amenities, trading has recommenced to the delight of very loyal and supportive local customers. Thank you to the NSW Small Business Commissioner, Robyn Hobbs and her very skilled team for assisting Ward and Scott to facilitate this good news.

INDUSTRY NEWS

NATIONAL

Industrial Relations Review – at last! MGA Independent Retailers & MGA TMA (Master Grocers Australia Ltd) welcomes the launch of a major review of our industrial relations laws proposed by the Attorney-General, Mr Christian Porter. Jos de Bruin CEO of MGA said, “There is a desperate need for industrial relations reform. It is an area that is in serious need of an overhaul. We have languished in the shadows of WorkChoices for too long. We all know that WorkChoices brought down a Government, but that’s history. It’s time to face reality and breathe a sigh of relief that at last workplace reform, both for employers and employees, is finally coming.”

MGA strongly believes that with concentrated research we will show that there has been increased underemployment, store closures and owners working themselves rather than employing new staff in our sector. MGA is confident we can produce real facts evidence and data to the FWC, proving there is greater hardship in the retail sector than has been estimated in the past.

“When we employ new staff, we shouldn’t have to worry about defining exactly who is a casual employee - that’s for the lawmakers to clarify and now they have finally stopped wasting time about doing it.”

We believe the facts will speak for themselves and we plan to present them as evidence. Now is the time for us to change our industrial relations system for the better so that employers and employees will reap the benefits in the future.”

Mr de Bruin provided an example of inflexibility, complexity and a broken IR system when he quoted an MGA member’s recent experience of employing a 16-year-old casual for 14 hours in one week and having to pay 5 different rates of pay. Confusing and a deterrent to employing staff?

Be involved in the review and have your voice heard!

Mr de Bruin continued, “The modern award system has been undergoing constant reviews in the Fair Work Commission for almost 10 years now and the award clauses are constantly changing and becoming more confusing. For years we have been unable to make new enterprise agreements easily because every single employee must be better off than under the award. So, what happened? Nothing! Employers have stayed where they were and have taken refuge with what they have right now. Consequently, our industrial relations system has been stagnating and it’s easy to see that we desperately need reform.” “At MGA we will also undertake our own rigorous enquiries, looking forward to 2020 when we have the next wage review. The past 3 years have been financially crippling for the independent retail sector as it has struggled with a total 9.8% wage increase as well as increased penalties over that period.

mga.asn.au | August 2019 | Edition 5

JOIN THE MGA INDUSTRIAL RELATIONS REFORM PROJECT We need your help to engage with an external research consultant who is assisting us with this valuable project to collect compelling facts, evidence and data to strengthen our submission.

To be involved, head to our website and fill in the consent form and our researchers will be in touch! www.mga.asn.au/industrial-relations-reform-project

LEGAL AND HR

NATIONAL

Enterprise bargaining — is it all too difficult? When the Fair Work Act was introduced into the Federal Parliament in 2008 it was intended that this would see the demise of everything associated with WorkChoices.

We were to have new industrial relations laws that would be fair and equitable and provide modern uncomplicated awards and a fair system of enterprise bargaining. Over 10 years later we certainly have a far different system from the days when agreements could be written with almost no penalties and we have fewer awards that were meant to be less complicated than those that previously existed. The enterprise bargaining system that was introduced, through the Fair Work Act, required an agreement to meet a new test before it could apply in a workplace. Previously the “no disadvantage test” applied but under the system that applies today the terms of an agreement must pass the “better off overall test.” It has been determined since the introduction of the BOOT, as it has become known, that the test includes every individual employee in the

organisation being ‘better off’, not just most employees.

retailers to make agreements that are suited to their business requirements.

Meeting this test is not easy and many smaller businesses have long ago decided that “it’s all too hard,” so they either stick with the award or they cling to an outdated agreement, in the hope that no one will seek to terminate it.

Prior to the use of the BOOT as a measure for making an enterprise agreement the parties to a potential agreement used the “no disadvantage test”. At least the test ensured that there was no reduction in the overall terms and conditions of the award applicable to the employees and would be a suitable alternative to the BOOT. Most employers find making every single employee better off than being under the award almost impossible.

There is however no great enthusiasm amongst employers to make an agreement. The statistics from the Department of Jobs and Small Business showed that in 2018 federal agreements covered 30.2% of all Australian employees. There is undoubtedly a need to re-consider the system of enterprise bargaining and make it easier for employers and employees to work together to establish agreements that satisfy the mutual needs of the parties. It is timely for the current Federal Government to consider amending the legislation to make it easier for

It is timely for the adoption of a new system of enterprise bargaining. One that will provide employers and employees with opportunities to make agreements that provide flexibility and opportunities to include specific clauses that suit everyone. It is time to make the enterprise bargaining system easier for everyone but that will require changes to our current laws.

TRAINING

NATIONAL

Ongoing training — Is it necessary? OMG YES! In our last article we discussed how induction training programs are incredibly important to the business. Induction and initial training are only a foundation for the employee but to reap the benefits of having trained employees, businesses must continuously update their employee’s knowledge and skill sets. In our last article we discussed how induction training programs are incredibly important to the business. Induction and initial training are only a foundation for the employee but to reap the benefits of having trained employees, businesses must continuously update their employee’s knowledge and skill sets.

Another need or gap area that will automatically arise is whenever there is new technology or equipment introduced.

As with all training in businesses (large or small) there will be barriers such as:

By having ongoing training and development opportunities for employees, it closes the gap or need. It also allows employees to develop their skills and knowledge to become productive team members.

• Costs (of the training) • Productivity loss • Costs of covering employees • Resistance overall to TRAINING (boring and why!) Ongoing training for employees plays an essential role in the current business environment. With technology and demands of the market, all employees are required to improve their knowledge and skills regularly. This ensures the business is sustainable and profitable. Businesses need to change their mindset from looking at training as a costly exercise to being an investment. Employees are your asset Businesses need to look at each employee as an asset. Successful businesses review their assets and review the return on (asset) investment (ROI). With employees who are the frontline of the industry this idea is even more important to the success of the business. Investment in ongoing training and development will ultimately improve processes and increase the bottom line.

Having training to assist with changes within the business reduces resistance and ensures better implementation and acceptance.

Comply with regulations Regulations and laws are always changing and businesses are expected to follow them to avoid penalties and restrictions. These can be federal, state or industry legislation or regulations. By keeping up to date with any regulations and legislation changes and updating employees through ongoing training, businesses can ensure they are operating legally. The added benefit is that employees will feel a sense of stability with regular instruction on workplace policies and procedures.

THE BENEFITS Increase productivity Regular training and gap training assist the business to boost productivity. Ongoing training equips employees with the knowledge and skills that they require to carry out their tasks efficiently. It also gives them an opportunity to learn about new technologies that are designed to make work easier and enhances productivity.

There are many approaches to ongoing training. Identifying training needs and gaps Training Need Analysis (TNA) is the process of identifying the gap between employee training and business needs. By reviewing operations, incident reports, customer feedback or recurring mistakes – this can identify a need or gap with employees.

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Having ongoing training will improve employee performance. This ensures that processes run smoothly and efficiently in the workplace. It will also improve the communication and teamwork skills of employees, as well as enable them to be more adaptable to change.

TRAINING

Another benefit for the business, the employee will gain all-around workplace skills, providing for a better working environment and helps to reduce any weak links within the team. Employee & experience retention An employee is more likely to experience job satisfaction if they do not have to struggle to carry out their roles at the workplace. Strong induction programs with further support training will assist with job satisfaction. Improved job satisfaction also motivates employees and assists with productivity. An increase in productivity also translates to higher profits for a company. A business is more likely to report low employee turnover if there is job satisfaction. When employees go through ongoing training, the business retains the knowledge, skills and experience. By retaining these employees, they can pass on their wealth of knowledge to the new members. In return if any employees leave their skills and knowledge does not go with them. Offering ongoing training for employees is also a great way to promote loyalty in the business. An employee is more likely to remain with a business if they have an opportunity to get a promotion or further their own personal growth. Investing in training opportunities is one of many ways to show employees that they are valued. Reduce costs Regular safety training will assist with ensuring employees not getting complacent with their tasks. This often reduces injuries and further costs associated with workforce safety. Training also reduces many other types of wastage that may occur in the business. Ongoing training ensures retaining

employees and their knowledge which reduces costs in recruitment. Training also ensures the business remains compliant with any federal or state legislation and regulations by avoiding fines and penalties. Having a team that are skilled up and cross skilled will also reduce the business’ overall payroll expenses.

MGA INDUSTRY TRAINING CAN HELP MGA has a number of courses to ensure that your staff are up to date in their knowledge and certification in food safety, responsible service of alcohol and many other areas. The benefit of completing any training with MGA Industry Training is having dedicated trainers and online learning modules (accredited and nonaccredited). Workplace Health and Safety MGA has a number of online modules regarding basic WHS, emergency management, manual handling and more. These can be used as part of induction training or as part of your ongoing training for your employees. Food Safety Each state has different requirements regarding food safety however they do require all businesses to have a nominated Food Safety Supervisor who is current. Each state has a different view of currency of the Food Safety Supervisor. MGA Industry Training we offers both Food Safety Supervisor and NSW refresher courses online. In NSW you must complete a Food Safety Refresher course within 5 years. In the ACT, you must update your qualification (or units) every 5 years however this is not the same as the NSW refresher. All other states do not dictate refresher courses; however, the certificate/units are upgraded on average every 4 years. It is advisable to have your Food Safety Supervisors have current Food Safety Supervisor

certification where possible due to these changes. RSA As with food safety each state has requirements for their responsible service of alcohol needs. In Victoria, employees must initially attend the face to face course, with the online refresher every 3 years. MGA Industry training offers the face to face course throughout various locations in Victoria or we could come to you. In the ACT - they also require holders of the RSA certificate to update their knowledge every 3 years. At MGA we offer both ACT RSA and the ACT RSA refresher online. Other states excluding NSW & ACT, state that the Unit of Competency of Responsible Service of Alcohol is their requirement. Be aware as with the food safety units, these are revised every 4 years. However, at this stage these states do not require any refreshers. We offer the nationally accredited RSA online. Other courses on offer • Tobacco

• Customer Service • Sell Products and Services • Point of Sale • Plus many more Personalised Training Programs As part of your membership MGA Industry Training offers free advice and support with induction and training. We also offer individual tailored training programs to suit your business needs and support you through the Training Needs Analysis, planning, implementation and documentation processes. For further enquiries on tailored training programs or other courses we offer please do not hesitate to contact David or Claire on 1800 888 479 option 2.

INDUSTRY NEWS

NATIONAL

Fair Work Commission awards 3% rise in annual wage review The Fair Work Commission (FWC) has awarded an increase of 3% in the minimum and award wages. The change took effect on the first full pay period after 1 July 2019.

The FWC released its decision on the 2018/2019 wage review at 11am on Thursday 30 May.

Business and Family Enterprise Ombudsman Kate Carnell she “acknowledged” the decision. She also took the opportunity to reiterate her support for keeping the FWC free of outside interference.

“We have determined that it is appropriate to increase the NMW (national minimum wage) by 3%,” the FWC said in a statement. “The new NMW will be $740.80 per week or $19.49 per hour. This amounts to an increase of $21.60 per week to the weekly rate. We have also decided to increase all modern award minimum wages by three per cent. “Weekly wages will be rounded to the nearest 10 cents. We acknowledge that the compounding effect of increases over time may have a cumulative effect, which is not apparent in the short term. We will continue to closely monitor this in future reviews.” In a statement by Australian Small

QUEENSLAND

Queensland Small Business Minister visits Maroochydore

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“It’s critical that this decision-making process remains independent and is kept out of the hands of politicians or those with a vested interest,” she said. “The decision to pay Australia’s 2.2 million award-dependent workers an extra $21.60 per week from 1 July fell well short of the $43 per week the Australian Council of Trade Unions (ACTU) lobbied for. But it was also more than the two per cent business groups wanted. “Australia already has one of the highest minimum wages in the world. The increase awarded exceeds inflation. That will impact small

White’s IGA Group proprietor, Roz White recently received a special invitation from the Minister for Small Business, Shannon Fentiman, to a forum in Maroochydore to discuss the 2019-20 Queensland Budget and the very exciting launch

businesses, many of which are doing it tough right now.” However, MGA CEO Jos de Bruin struck a much gloomier note. “We’re extremely disappointed by the decision to add three per cent to the two previous annual increases of 3.5% in 2018 and 3.3% in 2017,” he said. “How can retailers cope with a 9.8% increase in wages over three years, not forgetting the other increases in awards that have happened in the past year, at a time when inflation is at an all-time low, sales are stagnant, and the economy is vulnerable?” “Why doesn’t the Commission consider giving some respite and provide a small increase to the award wage rate for at least one year? This would allow retailers to build their businesses and keep their heads above water for a short time.”

of her Artisan Producers support plan inspired by recent discussions and events. We thank Roz for representing MGA’s Queensland members, independent supermarket owners and operators, at this special event.

INDUSTRY NEWS

NEW SOUTH WALES

SOUTH AUSTRALIA

New South Wales Minister for Small Business

MGA meets with Romeos

On 2 July, MGA’s Jos de Bruin met with the NSW Minister for Small Business, Hon Damien Tudehope MLC. Minster Tudehope took over the Small Business Ministry from Deputy Premier John Barilaro. Being a former small business owner himself, Minister Tudehope was very interested to engage with MGA and to hear of the many business challenges facing MGA members on a daily basis in NSW. Following are some of the matters that were discussed:

»» Council consistency requiring state guidelines

»» Unfair crowding out and anti-

competition - with Kaufland entering NSW they must abide by the rules the same as our members do.

»» Forming a NSW Small Business Advisory Council

»» Acknowledgement of the great

job that the NSW Small Business Commissioner Robyn Hobbs is doing for MGA members.

On 5 June, MGA’s SA Director Chris dos Santos, the owners of Foodland Valley View and IGA Henley Beach, and Jos de Bruin met with Paul and Joseph Romeo in Romeo’s North Adelaide offices. Topics of discussion included MGA membership in SA, the new Romeo’s store in Rundle Mall, the Romeo’s industry conference to be held in Sydney and various other federal and state-based matters.

• Debilitating energy costs • Payroll tax – reduce percentage and increase threshold (also increase by CPI every year)

• Container Deposit Scheme -

launched December 2017 and NSW / Vic border issues and temporary relief support

• Planning, zoning and development matters:

Minister Tudehope and MGA CEO Jos de Bruin.

Members meeting at Romeo’s North Adelaid offices.

INDUSTRY EVENTS

QUEENSLAND

Queensland Small Business Week – Friday 31 May 2019 The MGAQ committee has been working tirelessly with the Queensland Government, particularly the Minister for Small Business Shannon Fentiman and her ministerial colleagues, to realise opportunities that will assist to grow family and privately-owned supermarket businesses in Queensland. One such initiative is the Entrepreneurial Pipeline Project (EPP). The Entrepreneurial Pipeline Project (EPP), which is the initiative initially stimulated by MGA members wishing to survive in the face of unbridled, and at times, unfair competition from the dominant chains, was created by former Small Business Minister Leeanne Enoch and is now in the safe hands of current Small Business Minister, Shannon Fentiman. The EPP is a project to determine how the many thousands of small food and beverage (including alcohol) businesses are able to work together in an eco-system to help drive and grow their businesses, stimulate employment and enhance the Queensland economy. To demonstrate the possibilities, Minister Fentiman together with her team at Small Business Queensland created a unique showcasing event at the Boggo Road Gaol in Brisbane, on the evening of Friday 31 May 2019, which marked the end of Queensland Small Business Week. This showcasing event was superbly presented with selected food growers, wine and beer producers each taking a

table from which to display and sample their products. This was a perfect example of Queensland local businesses working together in an eco-system, to help each other grow their businesses. MGA members were also present and demonstrated that independent supermarket owners and operators in Queensland want to stock and sell local wines and beers together with local foods to enhance their offering to consumers, thereby creating a strong point of difference to the dominant chain supermarkets and the overseas discounters. The EPP incorporates the idea of Queensland independent supermarket store owners being able to stock locally made wines, beers and ciders together with local gourmet foods, cheeses, pates, dips, produce, meats and so the list goes on, to drive a more sophisticated and mature meal solution approach to consumers in their stores around Queensland. Guest speakers at this event including; MC and highly recognised chef Matt Golinski, Minister for Small Business Shannon Fentiman, Sunshine Coast IGA retailer Roz White and the “Good

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Debbie Smith, Maree Adshead, Joe Eid–Foodworks, Mark Mezzini–Drakes.

L: Maree Adshead. R: Roz White

Beer Company” representative, James Grugeon, who all spoke passionately about the possibilities of how we can together grow Queensland small businesses by combining food and beverages to stimulate consumer awareness and grow each other’s sales. MGAQ Committee member Roz White made an impassioned speech which embodies the values of family and privately-owned supermarkets in Queensland. (Read her speech in full on the next page.) On behalf of the MGAQ Committee and MGA’s Queensland members, MGA thanked Minister Fentiman for having the confidence and creating the opportunity to run this event. Particular thanks goes to frontline organiser Emma Rice, and her team, as well as Deputy Director-General for Small Business, Steven Koch. There is no doubt this concept can work in reality, as the collaboration between all local food and beverage growers and producers, together with independent supermarket owners shown at this event was outstanding in every way. There was genuine excitement and enthusiasm toward working together to grow each other’s businesses.

INDUSTRY EVENTS

Whites Sunshine Coast IGA Supermarket Group White’s Sunshine Coast IGA Supermarket Group proprietor, Roz White, was invited by Minister for Small Business Shannon Fentiman, to deliver a speech at the final Queensland Small Business Week event. The local foods and beverages showcase event was held at Boggo Road Gaol, Brisbane on Friday 31 May. Roz shared the White’s Group philosophy and values regarding their Locavores program and the value to the Queensland economy of local food and beverage producers working together with independent supermarkets and collaborating with one another to assist to grow each other’s businesses.Roz, and husband Michael White, are the epitome of “walking the talk” when supporting local food and beverage growers and producers by stocking their products in their stores on the Sunshine Coast. Consumers love it! Read Roz’s speech here. “A lot has changed for Michael and I, and the industry, having entered the grocery retailing sector as complete newbies almost 26 years ago. The market has intensified and consumer needs continue to change. Retailing is dynamic and fun, fast-paced and volatile. It is important to find clear factors which can set us apart in a volatile market. It is important to enhance diversity which provides consumers with choice. It is vital to maintain key aspects within the economy that stimulates new business growth and employment opportunities. The independent sector is geared to facilitate these key factors, to make agile and responsive decisions and importantly, to enable the introduction of micro entrants to the market. Across Australia, the independent supermarket network collectively encompasses a $15 billion revenue across 4,000 outlets employing 115,000 people. The Queensland representation of 760 outlets, trade under brand names such as FoodWorks, Friendly Grocers, IGA and SPAR, employing 21,000 people, across a seven-day working week with retail sales exceeding $2.8 billion.

Many of these businesses engage directly with suppliers in their own communities just as we do at White’s IGA. In fact, we love local so much we introduced an entire program centred around supporting local suppliers, growers, producers and manufacturers. Our unique ‘locavore’ philosophy was officially rolled out across White’s IGA stores in 2013 to enlighten shoppers and our community about the foundations and background stories of where food and other consumables come from. A distinctive ‘locavore’ symbol identifies relevant products to enthuse shoppers and highlight the stories of our homegrown makers and their goodies. Subsequently, White’s IGA has built up a wonderful following in the region, now recognised as market leaders. It thrills me to introduce these new and interesting products into our stores as it augments growth and adds vibrancy to all stakeholders. I would estimate 9-10% of our market specifically choose ‘local’ with a higher percentage of shoppers interested in purchasing local products. Queensland based and Australian made is important to shoppers but there is a keener interest in true local as consumers seek connectivity to the origins of their food. White’s IGA source local products wherever possible. We are fortunate to have an abundance of artisan providers, growers, producers and makers based on the beautiful Sunshine Coast led by a cohesive food and agribusiness network and supported by a passionate and embracing community. I first started actively seeking out artisan products well over a decade ago and would traipse around markets, fetes

and small outlets to find these unique products. I would simply buy their product and then contact each supplier/producer to find out how to stock it. At that time, ‘local’ wasn’t really a thing, certainly not like it is now but my passion for this has never wavered and as our community has become more inspired, start-ups and new market entrants now actively seeking our support to stock their products. People certainly are interested in understanding the back story of what they consume with a heightened awareness and interest in food source, health and wellness, special dietary and sustainability. I believe it is of vital relevance to consumers to support homegrown production. As a retailer, I am committed to enabling the conscious buyer to make an informed decision. Constructive collaboration between industries and sectors delivers more than its equal sum of parts which aids and sustains new business growth, market diversity and economic resilience. Thank you, Minister Shannon Fentiman for your demonstrated belief in the independent market, the food and agribusiness sector, artisan manufacturing, primary production and boutique trades. We appreciate your support and on behalf of Master Grocers Australia and the independent supermarket network, thank you for hosting today’s Taste and Trade Show in support of small business and for shining a light on the wonderful synergies created through collaboration.” Roz White | Proprietor | White’s IGA

TRAINING

NATIONAL

What is mental health? People often think mental health means having a mental health disorder such as a major depressive disorder or an anxiety disorder.

In the same way that being physically healthy doesn’t just mean not having a disease, mental health actually refers to how well a person is doing in their thinking, managing their emotions, relating to others and generally meeting the demands of everyday life and employment.

FACTORS FOR A MENTALLY HEALTHY WORKPLACE Balance A workplace that recognises the need for balance between the demands of work, family and personal life.

In other words, it is a sliding scale, with one end marked by mental health disorders, to living with mental health struggles, to mental health and wellbeing where a person is thriving. At the wellbeing end of the scale, people feel connected and happy in their personal life and work, have rich social interactions and contribute to their community.

Workload management A workplace where employees are given enough time to do the tasks and responsibilities assigned to them.

HOW COMMON ARE MENTAL PROBLEMS?

Clear leadership and expectations A workplace where there is effective leadership so that employees know what they need to do, where their work fits in with the rest of the organisation and whether there are any changes coming up.

It is estimated that, at any time in Australia, 1 in 5 workingage people will be suffering from a diagnosable mental health disorder. Another 1 in 5 will be suffering from other mental health issues (such as, worry, fatigue, sleep problems) which, even though they aren’t considered a diagnosable disorder, still affect their ability at work. Why is it important in the workplace? Work is very important for most people because of how much time they spend there. It is also a big part of who they are, their social networks and how it enables them to live, learn and grow. Workplaces can also have a negative impact on workers’ mental health and possibly lead to a mental health issue. Mental health risks at work can come, for example, from how people treat each other, the physical work environment, how work is organised and how people are managed. When people are unwell mentally, it can cost businesses through sick leave, lower productivity, finding and training replacement staff, and even the possibly workers’ compensation claims. Mentally healthy workplaces promote the positive, prevent harm and manage mental illness and injury in a timely manner.

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Organisational culture A workplace that shows trust, honesty and fairness.

Growth and improvement A workplace where employees are encouraged to grow their social, emotional and job skills. Recognition and reward A workplace where employees’ efforts are noticed and appreciated. Engagement A workplace where employees enjoy and feel connected to their work and where they feel motivated to do their job well. Supportive A workplace where co-workers and managers care about employees’ mental health concerns. If someone needs support or if something traumatic happens co-workers and managers respond appropriately. Courtesy and respect A workplace where employees are respectful and considerate with one another, as well as with customers, clients and the public.

INDUSTRY NEWS

Physical safety When employees are physically safe it is much easier to feel psychologically safe.

IDEAS TO RAISE AWARENESS • At meetings with managers or staff: »» Ask everyone for their suggestions on how to keep

making your workplace mentally healthy, then agree to act on at least some of them, if not all of them

• Display posters or pamphlets sourced from reputable

community or government organisations. For example, Beyond Blue has some free resources on mental health

• Send one of your employees to external training or

awareness sessions on workplace mental health and ask them to report back what they learned. Then follow up by taking some actions based on their suggestions

• Talk openly about the importance of mental health in your conversations with your managers and staff

• Take time out for morning/afternoon tea to emphasise

the need to take breaks and re-energise to stay mentally healthy

• One-on-one discussions if you are concerned about someone

HEALTH AND SAFETY POLICIES AND PROCEDURES – HOW IT BENEFITS YOUR BUSINESS Health and safety policies and procedures are your workplace’s plan for keeping your employees safe and healthy. Keeping them up to date and working as they should is an important step in protecting your employees. Up-to-date occupational health and safety policy and procedures can benefit any organisation, no matter how small or large, by:

• helping your organisation create safer work environments • reducing injuries, including mental injuries • reducing injury-related costs • improving business opportunities • demonstrating that your organisation is meeting legal requirements

• giving your organisation a good reputation.

Deputy Prime Minister, Hon Michael McCormack and Minister for Small Business, Hon Michaelia Cash attended the enormous and impressive Metcash Expo over 2 consecutive days. For them, the opportunity to see firsthand the ecosystem of local and national suppliers of goods and services coming together under the one roof to engage with family- and privately-owned supermarket operators from around Australia is truly unique and demonstrates the strength and unity of the independent family business sector. We thank both Ministers for witnessing the backbone and engine room of the economy working together with their suppliers at their best. Also, in attendance were local Qld Member for Macalister, Hon Melissa McMahon and Federal Member for Moncrieff Queensland, Hon Angie Bell. Deputy PM Michael McCormack—centre

Psychological safety A workplace where employees feel able to put themselves on the line, ask questions, seek feedback, report mistakes and problems, or propose a new idea without fear.

Hon Melissa McMahon—2nd from right

Psychological skills A workplace where employees have the social, emotional and job skills they need to do their jobs.

Deputy Prime Minister and Federal Minister for Small Business visit the Metcash Expo!

Sml Bus Minister, Michaelia Cash—centre

Involvement and inclusion A workplace where employees are included in discussions about how their work is done and how important decisions are made.

INDUSTRY NEWS

NEW SOUTH WALES

Romeo’s IGA Summer Hill – Sydney The Romeo family entered the NSW market almost 10 years ago. Joseph Romeo was asked to bring some of the South Australian Romeo’s supermarket expertise into a challenging and very competitive NSW marketplace. The very first store to emerge with the Romeo’s touch was Romeo’s Supa IGA in St Ives, some 8 years ago which boasted a state-of-the-art supermarket offer. Fast forward and the Romeo family now has a firm foothold in the Sydney market operating 13 superb supermarkets. The Summer Hill area can be described as a well-established inner suburb of Sydney. For many years the community was served with a Franklins store. That is until 6 years ago when the Romeo family bought the Franklins store and commenced a refurbishment program of the entire store that was completed 3 years ago. MGA recently met with Romeo’s State Operations Managers Melissa Giri and Jason Kouta, who both exude great pride and passion when

discussing the Romeo’s businesses in Sydney. They explained that the Sumer Hill store was expanded from 1500 to 2500 square metres with an emphasis being placed upon the marketplace ambience and the fresh food offer. Forty per cent of floor space has been dedicated to fresh in the form of produce, bakery, patisserie, delicatessen, meat, fish and poultry. There is an authentic “Asian market” area, a ready meal offer, a walk-in cheese room and a superb café. The timber finished ceilings and gondola ends add to the ambience of quality and authenticity. The entire grocery and fresh ranges have been tailored to the needs and expectations of the local customer. Three onsite butchers produce a superb range of freshly cut meats for customers, whilst the in-house bakery bakes fresh breads each day.

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Romeo’s State Operations Managers Melissa Giri and Jason Kouta.

During the refurbishment, freezer capacity was tripled, dairy doubled, and the meat area tripled to accommodate the needs of customers. There were 100 additional bays of groceries added and a doubling of the produce area. The result was a dramatic increase in sales. The customer count increased to 24,000

INDUSTRY NEWS

every consumer need. Customers say they “love the experience” of shopping at Romeo’s Summer Hill.

per week and the basket size significantly increased. There was a 30% increase in sales after the refurbishment and now the store is experiencing double-digit growth each year. To enhance customer service at the registers there are 8 regular checkouts and 8 express checkouts – all staffed to maximise customer service.

Each department has been set up to be a showpiece, to feel just like a marketplace when a customer walks through the supermarket, like a farmer’s market. There is a suburb range of fresh flowers in amongst the fresh produce not far from the walk-in cheese room. Customers keep coming back to the store, not just for the ambience but for the good value and the range of products to satisfy almost

The demographics of the area is changing with a younger, more hipster clientele, along with young families, becoming more prevalent. These customers are conscious about what they eat and the health of the environment. There is a distinct community feel even though the store is close to the city, which is a testimony to the thought that has gone into the design of the store. Congratulations to the Romeo’s team in NSW who are lifting the benchmark in supermarket trading and attracting customers to their unique shopping experience. Customers love shopping there!

INDUSTRY NEWS

NATIONAL

Illicit and illegal tobacco continues to flourish Despite the efforts of MGA members, MGA and other industry associations to highlight the illicit tobacco phenomenon, illicit tobacco continues to be sold in shops, markets and on the streets of Australia. MGA, together with a coalition of Australia’s largest retailers, has renewed calls for greater enforcement against illegal tobacco after a new report has shown illicit trade to represent more than 14 per cent of the total tobacco market. The new report, authored by KPMG LLP, shows that in the last year, 2.1 million kg of tobacco had been purchased illegally in Australia. A recent incidence of illicit tobacco being sold in country Victoria was reported to MGA. The person reporting the incident said there was no one that was able to assist with this matter. The local council, the local police and crime stoppers all put their hands up and said, “not their jurisdiction”. Illicit tobacco sales are having a dramatic effect on the sales of legitimate tobacco sales in our members’ stores and, in some cases, undermining the viability of their businesses. As a consequence, MGA called the Black Economy Task Force and was advised that all illicit tobacco occurrences should be reported to the Australian Federal Police (AFP). The AFP have carriage for the recent laws passed in the federal parliament that enable the prosecution of any person importing, growing, wholesaling and selling illicit tobacco. Independent consultants KPMG have released their most recent report illustrating the problem of illicit and illegal tobacco being sold in Australia. Here are some insights from the report:

• Consumption of illicit tobacco

products was 14.1 per cent of overall consumption. A drop from

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15 per cent in 2017 and the lowest percentage since 2013.

• This drop is principally due to

a decrease in consumption of unbranded loose tobacco.

• The recent seizures have

worked overall, however, retail level enforcement has not been addressed to the level required.

• Consumers are buying illicit tobacco products less often because they don’t need to ‘stock up’ as product is readily available. Core issues:

• There is still 2.1 million kg of

tobacco that has been consumed illegally, that would have represented an excise value of AUD $2.02 billion

• There is an element of the unknown in the illegal products, with no regulation applied

• Although the federal government

has attempted to coordinate the several arms of authority to come up with a ‘coordinated response’ to illicit tobacco, more needs to be done to ensure retail level enforcement is not neglected

• The illicit trade represents a serious safety threat to retailers – the value of tobacco means criminals and gangs are breaking into stores to be able to re-sell them at lower values

• Small businesses are in a bind, with consumer demand rising for the cheaper alternative

• Stores are continuing to sell illicit

tobacco products because the demand is there from consumers – when tobacco is priced so high, people are naturally turning to the ‘black market’

• Australians feel strongly about this

issue and put the reason for an increase in illicit tobacco to sky-high tobacco prices

• AACS research reveals 80 per cent

of smokers and 59 per cent of the total population want to see a freeze on tobacco excise to curb the growing illicit market

• Excise on tobacco has made it

extremely expensive, and therefore extremely valuable and extremely appealing for criminals

MGA CEO Jos de Bruin said, “The latest KPMG report shows that the importation and sale of illegal tobacco is getting out of control and more needs to be done to enforce the strict laws around combating this crime. It is worrying that so many retailers are getting away with breaking the law and potentially putting consumers in danger, as they are supplying products of unknown origin and ingredients to people of any age.” Fred Harrison, CEO of Ritchies stores said, “It is alarming to see that 14 per cent of all tobacco sold in Australia is illegal. This causes a number of challenges for retailers around the country who are trying to do the right thing but are forced to compete with customers having a cheap, unregulated version on the black market. We need governments and authorities to step in and address an issue that is costing the economy more than $2 billion a year.” MGA strongly encourages all members to report any incidence of illicit tobacco trading and sales to the AFP. This can be done online on the AFP website at “report a Commonwealth crime” - www.afp.gov.au/contact-us/ report-commonwealth-crime

WESTERN AUSTRALIA

N O PI W N A O VA T G ILA RI B G LE IO

INDUSTRY NEWS

MGA Western Australia MGA will be conducting a meeting for all its members, WA supermarket owners and managers on Wednesday 21 August at the South of Perth Yacht Club. The purpose of the meeting is to discuss, in an open forum the complexities and challenges members are facing with the Industrial Relations regime and to discuss possible industrial relations reforms. Increased wages and barriers to employment will also be discussed. The WA Container Deposit Scheme coordinator will be giving all attendees an overview of the scheme and giving guidance for how supermarket operators can be involved with the scheme for the benefit of their businesses.

Subtle aromatics of pear, lemon zest and a hint of herbs. For more information contact your De Bortoli representative or visit debortoli.com.au

There will be an open forum led by MGA WA Director Ross Anile after which there will be a networking opportunity with fellow retailers. On 22 August MGA’s Jos de Bruin and Ross Anile will be meeting with Liberal Opposition Leader Liza Harvey to support her with her recent public statements about “not changing” the status quo around WA trading hours.

IS M A NY S H A DE S

Ms Harvey is very supportive of the sustainability and viability of family and private businesses. Members, please diarise this meeting and unique industry event.

Date

Wednesday 21 August, 2019

Location

South of Perth Yacht Club, Perth, Western Australia

Time

1pm — 5:30pm

Don’t miss this important forum!

Family winemakers since 1889

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 â&#x20AC;&#x201C; 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 | August 2019 | Edition 5

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 â&#x20AC;&#x201C; protecting your business.

STATE BASED TRAINING Duration: 30 minutes Member price: FREE

Donâ&#x20AC;&#x2122;t forget to log in for your member discounts! Visit www.mga.asn.au to see our range of training courses!

INDUSTRY NEWS

VICTORIA

Victorian single-use plastic bag ban due to come into effect in November MGA has been involved in consultations and discussions with various Victorian state governments regarding the banning of plastic bags over a number of years. We wish to advise MGA’s Victorian members to prepare ahead of the state-wide ban on lightweight plastic shopping bags including compostable, degradable and biodegradable plastics, which is due to commence from November this year. The Victorian ban will apply to all retailers and suppliers regardless of size or type – from supermarkets to fashion boutiques, from fast food outlets to petrol stations. There will be penalties introduced for retailers who do not comply.

P L AS

for their shopping. A suggestion may be to put up signage around the store giving consumers information that single-use shopping bag bans apply from November and they should consider using their “green” bags immediately.

Most, if not all MGA members are very aware of the impact of single-use plastic shopping bags on the environment and have been themselves involved in re-educating consumers to bring in their “green” bags and reusable bags to carry their goods out of the store. MGA members have been selling “green” bags at the registers for many years now at a minimal cost.

Please see MGA’s website for generic signage tools that may be of use for members in store to advise consumers of the imminent plastic bag ban.

MGA members are encouraged to continue to educate consumers to use recyclable and reusable bags

T IC

N BAG BA BAG BAN BAG BAN

V IC T O

R IA N

VICTORIAN PLASTIC

V IC T O

R IA N

P L AS

T IC

Remem ing o brRemember t to bring r e b y m ! our reuber to bringMEMBERS ARE ENCOURAGED ags reusable bags! Reme usable byour sable b ags!TO CONTINUE TO EDUCATE your re LIGHT WEIGH T PLAS BAGS TIC BA LASTIC LIGHTWEIGHT PLASTIC BAGS BANN GS ED FR 19. 0 H 2 O R IG M NOV E L BBANNED M E E V FROM NOVEMBER 2019. MBER NO M O 2019. R ED F BANN HT P TWEIG

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mga.asn.au | August 2019 | Edition 5

CONSUMERS TO USE RECYCLABLE AND REUSABLE BAGS FOR THEIR SHOPPING.

INDUSTRY LIQUOR NEWS

NATIONAL

Mitchelton’s 50-year celebration is a time of reflection This August, Mitchelton celebrates the 50th anniversary of the first vine planting. Established by Melbourne entrepreneur Ross Shelmerdine and wine industry icon, Colin Preece, the first vines were planted on the Nagambie Estate in 1969. The dynamic duo chose an old grazing property, prized for its climate, soil and proximity to the waterways as the site to establish Mitchelton. Situated on the verdant banks of the Goulburn River, the Nagambie Estate is home to 105 hectares of nurtured vines, comprising core varietals of Shiraz, Cabernet Sauvignon, Chardonnay, Riesling and Marsanne. To mark this historic milestone, Mitchelton will host a series of Winemaker Masterclasses, led by Chief Winemaker Andrew Santarossa, in the historic charm of the underground cellar. Following the Masterclass, a luxurious lunch or dinner (depending on the Masterclass session timing) will be held in the iconic Ashton Tower. The curated menu, sourced from local producers, will be paired with a selection of 6 Estate grown wines from the Mitchelton and PREECE collection.

The 50-year milestone is a time to reflect on a respected winemaking journey within the Australian wine industry with only a handful of winemakers to name during this time. The master blender, Colin Preece was the inaugural winemaker before retiring in 1974. The innovative Don Lewis was then appointed and awarded the prestigious Jimmy Watson Trophy for the 1990 Print Shiraz, cementing his name within the wine history books. With Chief Winemaker Andrew Santarossa now at the helm of this iconic Victorian winery, the passion and accolades continue with Mitchelton’s most awarded legacy wine Blackwood Park Riesling, luxury Heathcote Shiraz and revamped contemporary range of PREECE wines. Let the celebrations begin!

Mitchelton – Proudly family owned mitchelton.com.au

LIQUOR NEWS

INTERNATIONAL

Australian winemakers take out major awards at International Wine Challenge At the recent prestigious International Wine Challenge, two Australian wineries McGuigan Wines and Bird in Hand have put in another strong performance as winners of the White Winemaker of the Year and Red Winemaker of the Year respectively. McGuigan Wines is now the only Australian winery to win the White Winemaker of the Year award four times, following previous wins in 2009, 2012 and 2013. The 2019 White Winemaker of the Year award crowns McGuigan Wines’ strong performance across this year’s IWC, where it won a total of 4 Gold, 11 Silver and 14 Bronze medals. The Gold medals were awarded to the McGuigan Personal Reserve Shiraz 2017, McGuigan Shortlist Chardonnay 2015, McGuigan Shortlist Riesling 2013 and McGuigan Cellar Select Chardonnay 2017, with the latter also claiming

two International Trophies for Eden Valley Riesling and New South Wales Chardonnay. Chief Winemaker for McGuigan Wines, Neil McGuigan, said: “To have received the White Winemaker of the Year award four times in the last decade is unprecedented and extremely humbling. I am immensely proud of our achievements at this year’s show, which are a testament to the commitment of our winemaking team. Every time an Australian wine is recognised at international wine competitions it puts Australia on the map and highlights the quality being produced. “We continue to be incredibly honoured to represent Australia on the global stage. Award wins such as this reinforce the reputation of Australian wine and demonstrate we have truly earned our place among the world’s best wines.”

Bird in Hand’s Dylan Lee and Kym Milne were named as the Red Winemaker of the Year following a strong showing in the competition. The Adelaide Hills winery won 2 trophies, plus 4 Gold, 3 Silver and 3 Bronze medals. The Bird in Hand trophies went to the Bird in Hand 2017 Shiraz and the 2017 Bird in Hand Syrah. Those two wines also scored Gold medals along with the 2014 Nest Egg Shiraz and 2015 Nest Egg Cabernet Sauvignon. Bird in Hand winery founder, Andrew Nugent added: “As a family winery, we are so grateful to be able to showcase globally the elite artisan winemaking of South Australia and our Adelaide Hills home. Dylan Lee, Kym Milne and the entire winery team have set a standard to be at the pinnacle of world winemaking and results like these are a wonderful recognition of their rare skill and dedication.”

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INDUSTRY NEWS

QUEENSLAND

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Queensland – single-use plastic bag bans – 1 year on Just over 12 months ago the Queensland Government introduced single-use plastic bag bans which applied to all retailers and online sales from 1 July 2018. Under the ban, Queensland retailers were no longer allowed to supply shoppers with single-use lightweight plastic shopping bags under 35 microns, for free or at a charge. This includes compostable, degradable and biodegradable plastic shopping bags. Twelve months down the track and MGA members report that consumers have embraced the ban of single-use plastic bags and have taken on the responsibility of providing for their own “green” bags.

MGAQ committee member and IGA Springfield Lakes retailer, Terry Slaughter, recently met with his local member Charis Mullen MP and Queensland Minister for the Environment Leeanne Enoch, in his store and reports that his customers have adjusted well with the changes which commenced 12 months ago, Before the ban, Terry and his staff would give away 7,000 single-use plastic bags per week or 364,000 per year. Today his customers bring their own “green” or multi-use bags into his store for their grocery shop and he sells approximately

1,000 larger micron reusable plastic bags to his customers upon demand. Hervey Bay retailer Graham Sewell, from FoodWorks Beachside Market Torquay, commenced reducing the giving away of single-use plastic bags well before the ban which commenced on 1 July 2018. Graham commenced educating his customers by promoting cleaner beaches without plastic bag litter and encouraged the use of empty cardboard boxes and fabric bags that he provided for his customers instore instead.

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Is your business ready for Single Touch Payroll? Here’s how to comply with the new pay event reporting requirements. Single Touch Payroll (STP), also known as real-time payroll reporting, has arrived for every Australian business – including, for the first time, those with fewer than 19 employees. Since July 1, all businesses must notify the ATO immediately after a ‘pay event’ occurs, i.e., wages are paid, super contributions are made and PAYG tax is deducted. The good news is the ATO has stated that penalties generally will not apply in the first year. In the meantime, its asking business owners to do the following:

• Decide how you’ll report

Your payroll or accounting software

may already be able to send STP reports to the ATO. Alternatively, your payroll service provider or registered tax or BAS agent may be able to do this.

• Determine who will authorise and

send reports Business owners and public officers have authority to send reports. You’ll need to authorise payroll managers, payroll service providers or registered tax or BAS agents.

• Make sure reporting software is

compatible If using software to send STP reports, you, or your registered agent, should call the ATO on 1300 852 232 with your ‘software service ID’, or SSID (usually displayed when software generates an STP report), to ensure it can connect with the ATO.

• Check records

The information supplied – wages, superannuation entitlements and staff names, addresses and dates of birth – must be accurate.

Becoming STP-compliant may be a headache for some time-poor business owners, but it should be short-term pain for long-term gain. Once the appropriate systems are set up, many business owners are likely to benefit from the automation of their payroll and tax-reporting responsibilities. For more information, visit nab.com.au/singletouchpayroll

LEGAL AND HR

NATIONAL

Keeping the records straight We have stressed the importance of paying the correct wages to employees many times in the past and of course we continue to stress that point. It is equally important to make sure that you fulfil all your record-keeping obligations too. The Fair Work Ombudsman has the authority to inspect your records at any time to ensure that wages and payslips and all details of payments due to employees are maintained. An audit of your business does not necessarily mean that you have done anything wrong but it is a mechanism that is used to make sure there is total compliance by all employers. Your record-keeping obligations are as follows: Generally speaking, all records must:

• be in a form that is readily accessible to a Fair Work Inspector

• be in a legible form and in English (preferably in plain, simple English)

• be kept for seven years • not be altered unless for the purposes of correcting an error

• not be false or misleading to the employer’s knowledge

You are also required to keep general records which include: • The name and ABN of the employer

• The name of the employee • Whether the employee is permanent, temporary or casual

• Whether the employee is full time or part-time (if permanent)

• The date the employee commenced employment • With respect to termination, whether the termination

was by consent, by notice, summarily or in some other manner, and the name of the person who acted to terminate the employment.

In addition, you must keep pay records as follows: • the rate of pay paid to the employee

• the gross and net amounts paid and any deductions from the gross amount

• the details of any incentive-based payment, bonus, loading, penalty rate, or other monetary allowance or separately identifiable entitlement paid.

mga.asn.au | August 2019 | Edition 5

And remember too that you are also required to record hours of work:

• In the case of a casual or irregular part-time employee

who is guaranteed a pay rate set by reference to time worked, a record of the hours worked by that employee

• For any other type of employee, the record must also

specify the number of overtime hours worked each day, or when the employee started and finished working overtime hours (but only if a penalty rate or loading must be paid for overtime hours actually worked)

• A copy of the written agreement if the employer and employee have agreed to the employee taking time off instead of being paid for overtime worked

• A copy of the written agreement if the employer and

employee have agreed to an averaging of the employee’s work hours.

You must maintain your leave records: If an employee is entitled to leave, the record must include both:

• leave taken, if any • the balance of the employee’s entitlement to that leave from time to time.

Any agreements to cash out leave or leave in advance must also be kept as a record. Make sure that all superannuation records are in order: • If the employer is required to make superannuation contributions for the benefit of the employee, the record must include all of the following:

• the amount of the contributions made • the dates and periods on which each contribution was made

• the name of any fund to which a contribution was made • the basis on which the employer became liable to make

the contribution, including a record of any election made by the employee (including the date) to have their superannuation contributions paid into a particular fund.

Check that your payslips are compliant The payslip must be given to an employee within one day

LEGAL AND HR

NATIONAL

of the payment (either in electronic or hard copy) and must contain the following:

• The employer’s name and ABN • The employee’s name and classification • The date of payment • The pay period to which the payment relates • Date of payment • If the employee is paid at an hourly rate, the: »» Ordinary hourly rate »» Number of hours in that period for which the employee was employed at that rate

»» The amount of the payment at that rate (it

should be noted that even if the employee is not paid an hourly rate the payslip needs to show what the equivalent hourly rate would be)

• Gross amount of the payment • Net amount of the payment • Details of any extra payment such as allowances or penalty rates and details of any deductions

• If superannuation payments are to be made, the

amount of the contribution and the name of the superannuation fund into which the contribution is to be paid.

• The sick leave and annual leave that the employee has accrued to date.

Confidentiality and Workplace Inspectors Employee records are private and confidential. Generally, no one can access them other than the employee, their employer, and relevant payroll staff. Employers must make copies of an employee’s records available at the request of an employee or former employee. However, Fair Work Inspectors and organisation officials (such as a trade union) may access employee records (including personal information) to determine if there has been a contravention of relevant workplace laws. It is important to maintain your records and provide completed pay slips as there are hefty penalties for non-compliance with the regulations.

LEGAL & HR ADVICE TAILORED TO YOUR BUSINESS NEEDS

Dealing with staff register problems It often happens that an employee who works on the cash registers makes errors by overstating the change or a customer is disgruntled by receiving a lesser amount of change. These errors will naturally be a loss for a store or result in a dissatisfied customer. Occasional errors are an inevitable consequence of working in money handling jobs but, if an employee is responsible for continually making errors or significant amounts are missing from a register then the problem needs attention. Training is a pre-requisite for any checkout operator and this should be given prior to an employee commencing work on registers. We need to operate on the premise that no one can be 100% right every time, however, once training is given to an employee the employer is entitled to expect a reasonable level of expertise. It there appears to be a continual problem then re-training should be provided and an official warning given to the employee that improvement is expected. If after retraining, the problem continues then the employer should consider whether the employee is suited to the role. MGA has a register policy that is signed at the time the training is provided and a second policy where it is necessary to retrain. It is vital that a correct procedure is followed when counselling an employee who is not carrying out their register duties correctly. A first written warning letter will always assist if termination is a future possibility following a performance-based discussion. The counselling letter should put the employee on notice that their position is in jeopardy if there is no improvement in their work performance. Warning letters and register policies are freely available to members. Call us and we will forward the policies and/or letters to you.

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.

TRAINING

NATIONAL

The importance of Food Safety, Training and Recall Milk and egg recall amid fears of contamination.

In the last few months, businesses and consumers have been affected by recalls of food items, more so than ever before it seems. These recalls negatively affect our suppliers, community and businesses including their bottom line. It is the responsibility of each food business to ensure that they follow recalls and implement processes to ensure the consumer is not affected. Also, the business does not attract penalties, fines and not to mention a negative reputation.

by businesses when food production monitoring has identified a fault, or in response to public complaints. State health authorities may also initiate food recalls following the investigation of reported food poisoning incidents or complaints about the safety of food. Food manufacturers and suppliers all follow the Food Industry Recall Protocol set by Food Standards Australia New Zealand (FSANZ). How are businesses notified? The supplier/distributor or government authority will notify affected businesses through direct notifications such as email alerts. They will also give directions on how to dispose of or return the contaminated food. They may issue warnings to the public through media outlets and radio announcements. Recall Process Once the business has been notified of the recall, there should be a process in place to capture all contaminated stock at hand and returns from customers. Your distributor and supplier will give further directives regarding the recall.

THE BASICS ABOUT FOOD RECALLS The Australia New Zealand Food Standards Code requires manufacturers, wholesalers and importers of food to have a system in place to manage the recall of unsafe food. When a food safety issue is identified, these food businesses must be able to quickly remove unsafe food from the marketplace to protect the health and safety of consumers. The majority of food recalls are voluntarily initiated

mga.asn.au | August 2019 | Edition 5

By having a simple food recall process in place your Food Safety Supervisor can assist a business to react swiftly and effectively to a product recall. To achieve this efficiency, the best option is to integrate a food recall process into the businessâ&#x20AC;&#x2122; Food Safety Plan.

TRAINING

FOOD SAFETY SUPERVISORS — ARE THEY IMPORTANT?

Simply put, yes they are. It’s a requirement for all food businesses, no matter what state they are located in, to have a nominated Food Safety Supervisor. Victoria/South Australia/ Western Australia/ Northern Territory/ Queensland/Tasmania There are 2 ways of gaining the Food Safety Supervisor in these states.

Best practice would be to not rely on one employee as the nominated Food Safety Supervisor. If that employee resigns or goes on holidays, who will be there to ensure that processes are followed and documented? As the saying goes two heads are better than one.

I already employ a food safety supervisor/s — what can I do for my other staff? Training and implementing skills and knowledge to your employees is the best practice to ensure safe food handling – including knowledge of food recalls.

• SIRRFSA001 Handle food safely in a retail

environment (one unit of competency VET)

• SITXFSA001 Use Hygienic Practices for Food Safety & SITXFSA002 Participate in Safe Food Handling Practices (2 units of competency VET)

Either option recognises these units as the Food Safety Supervisor certificate. ACT & NSW NSW/ACT requires further training for their Food Safety Supervisors. Not only must they complete the Food Handling course as mentioned previously, but the nominated person must also complete the NSW learning material/assessments set by the NSW Food Authority. This includes Egg Handling and Allergen Management. Once completed the person will be issued with an NSW Food Authority Certificate which must be updated every five years. MGA Industry Training is one of only a handful of RTOs that offer both NSW Food Supervisor courses and refreshers online.

MGA INDUSTRY TRAINING ARE HERE FOR YOU!

At MGA Industry Training we offer the Basic Food Handling course online that introduces the knowledge of handling food safely and bringing awareness to how they handle food and the implications of misuse. By having food safety supervisor training and established processes in regard to food recalls will ensure they are handled effectively, efficiently and professionally. Overall, by having a state recognised food safety supervisor and employees trained in the basics of food handling, it ensures your business is operating legally and offers your customers confidence in your business which in return increases your bottom line in the end.

Tailored training solutions for your business. Call our specialist team 1800 888 479 (option 2)

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LIQUOR NEWS

VICTORIA

Lightweight plastic shopping bags to be banned in Victoria The Victorian Government will implement a state-wide ban on lightweight plastic shopping bags by November 2019. The ban applies to ALL RETAILERS – including supermarkets, greengrocers, bakeries and many more. Victorians use over 1 billion plastic shopping bags every year, and although most end up in landfill it is estimated that over 10 million end up as litter, polluting our environment and endangering wildlife, this ban is just the first step in the Government’s broader agenda to reduce single-use, unnecessary and problematic plastics. Key Information: • The ban comes into effect from 1 November 2019

• It will be illegal for retailers to supply

banned lightweight plastic bags with a thickness below 36 microns, including degradable, biodegradable and compostable bags whether they are new or reused

• The ban will not apply to the

customers, such as checkout operators and customer service staff

following bags:

»» Produce bags used for

• Significant penalties will apply for

unpackaged foodstuff

non-compliant retailers who continue to supply banned plastic bags and bag manufacturers who give misleading (or withholds) information about the composition of a banned bag, or whether a bag is a banned plastic bag

»» Garbage bags & bin liners »» Dog waste or nappy bags »» Essential product packaging (eg bread bag)

»» Retailers cannot use these bags as substitutes for banned bags

MGA encourages all members to review their current position and long-term business options for their business, such as:

• Allowed alternative bags: »» Paper or cardboard bags »» Cloth, jute or hessian bags »» Non-woven reusable bags »» Heavyweight reusable bags • Retailers should STOP buying

banned bags as soon as possible and ensure that they are NOT holding any unused stock when the ban takes effect, you cannot provide these bags to customers and there is NO COMPENSATION AVAILABLE

• Train your team, particularly those

• Not offering bags at all • Use of paper or cardboard bags • Non-woven “green” bags or a combination of the above

Should you require further clarification contact the MGA National support office on free call 1800 888 479 or visit the Victorian Government website www.vicbagban.com.au

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LIQUOR NEWS

NATIONAL

Reminding young adult Australians The Internet Remembers to reduce excessive drinking In 2014, DrinkWise created How to Drink Properly. This innovative campaign was designed to make binge drinking to get drunk less socially acceptable among young adult drinkers and to support those already drinking in safe and moderate ways. Tracking results have shown positive attitudinal and behavioural change, with 40% of the target audience drinking less on a night out as a result of seeing the campaign. In December last year, we launched The Internet Remembers, as an extension of the How to Drink Properly theme, to remind the target audience that the consequences of excessive drinking can live on forever through an unflattering social post or internet image. Using a collection of unsophisticated drinking moments, the campaign was brought to life on social media, in bars and in a series of augmented reality displays across the country. The Internet Remembers was borne from DrinkWise research which showed that while young adults are making efforts to moderate their drinking, they are still the group most likely to drink excessively and they see vomiting and making a fool of themselves as a greater risk than the longterm negative health effects of excessive consumption.

Importantly, the campaign has inspired attitudinal and behavioural change in the target audience, with postcampaign research showing that almost all of those surveyed (95%) agree the campaign message is important and four in five young adults felt the campaign encourages them to consider the consequences of excessive drinking. Furthermore, 36% said they would moderate their drinking as a result of seeing the campaign, 29% said they would consume more water while drinking, 24% said they would talk about the campaign with others and 23% said they would count their drinks. The positive reaction to The Internet Remembers from a traditionally hard to reach demographic is encouraging. DrinkWise will continue to promote The Internet Remembers as part of How to Drink Properly, harnessing research insights to improve the relevance and resonance of the campaign with the target audience. Simon Strahan — CEO, DrinkWise

Get your hands on the new multi-language flyer The Victorian Commission for Gambling and Liquor Regulation (VCGLR) recently identified an opportunity to assist liquor licensees to better communicate with customers who speak Hindi, Simplified Chinese, Vietnamese or Japanese.

mga.asn.au | August 2019 | Edition 5

The new multi-language flyer covers key liquor licensing requirements around:

• age restrictions • acceptable forms of ID • intoxicated customers • minors The aim is to ensure all customers understand the obligations that licensees and their staff must follow when selling liquor, to help minimise harm and promote best practice within the industry.

MGA encourages all members to display the multilingual flyer in a prominent location along with their compulsory signage, a printable soft copy of the flyer has been sent to all Victorian members, but can also be accessed on the MGA member website www.mga.asn.au or on the VCGLR website www.vcglr.vic.gov.au. If you have any questions or suggestions about how to help break down communication barriers with non-English speaking customers please call the VCGLR on 1300 182 457 or email contact@vcglr.vic.gov.au.

LIQUOR NEWS

VICTORIA

Victorian licence fees and penalties increase from 1 July 2019 Every year as a result of indexation under the Monetary Units Act 2004, gambling and liquor fees and penalty units increase. The values for a fee unit and a penalty unit have been approved for the 2019-20 financial year, resulting in your yearly licence fee increasing as follows: Base Licence Fee $2,014.30 per annum Operating hours Risk fee (if applicable) $6,043.10 per annum

MGA reminds all members of their liquor licence compliance obligations under the Liquor Control Act, that you are required to have an up to date ‘House Rules’ manual containing current RSA certificates for all staff and a map of your Red Line Area available if requested by Compliance Inspectors or police. Hefty infringement penalties apply if you cannot provide the information when requested.

MGA has House Rules Manuals available as a free download or you can purchase a hard copy. Should you require a copy or have any questions about your compliance obligations please contact MGA on 1800 888 479.

Edgemill is a proud estate owner Edgemill Group is widely known as a spirits manufacturer, with international recognition for most, if not all its brands. Brands such as Arktika Vodka, Old Number 15 Bourbon and Old Number 15 Bacon Bourbon, Bond 7 Whiskey and BeGin Gin both Blue and the very successful Pink. What is less known is that Edgemill Group is the very proud owner of Kulara Estate. Kulara Estate is a 100-acre vineyard located in Ebenezer, a famous area of the Barossa Valley, South Australia. We have Shiraz planted in 1965 used in the beautiful Orator Shiraz, bush vine Grenache planted in 1905, Cabernet and the Carignan grape which is used in our Matildas Ghost Rose as per the original Rose out of France. This is in keeping with our winemakers brief for this brand, which is to make quintessential wines for each famous wine region and/ or varietal. We have a Barossa Shiraz, Coonawarra Cabernet Sauvignon and Margaret River Chardonnay too.

Our Rare Penny range of wines has been renovated and re-launched and has become our flagship wine range delivering excellent drinking and representing incredible value for money all of which has seen the brand grow by 140% versus last year.

quality beverages to the world.

All of these wonderful brands are all made available to independent retailers only in keeping with our motto “Independents First”.

On behalf of all the staff at Edgemill Group, I want to thank all our independent retail partners for their continued support of Edgemill and our products.

Edgemill will be looking to launch new and exciting products to augment our wine portfolio in the coming year and look forward to bringing them to our retail partners. The yield for the 2019 vintage was down nationally as a result of drought conditions and some severe frost but Kulara Estate performed well with our grape quality continuing to improve and the significant investment in frost fans for the vineyard paying off with no loss due to frost. Edgemill Group’s mission is to be a selfsufficient provider of affordable premium

It is, for this reason, Edgemill Group has a sales office operating in China and all our wine brands are successfully sold in the Chinese market.

Happy new financial year to all. Kind Regards, David Hounsome National Sales & Marketing Manager 0424 155 024

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TIMBER NEWS

NATIONAL

MGA TMA Committee appoints a new member MGA TMA acknowledges and values the strength of their committee, comprising timber and hardware business owners who have many years of experience in the timber industry which is essential in developing sound industry positions and policies on behalf of the organisation. The committee realises that for businesses to survive in this dynamic market we must work on the principle that “competition is partnership” – the idea that we share information about market conditions, consumer trends and identify the market forces so that all individual businesses can strengthen their own unique selling proposition. Whilst we are all independent competitors, MGA TMA members benefit from the sharing of resources and effort significantly. The market and industry have shifted dramatically in recent times, and the committee has determined that we need to push for a greater understanding of our future market/s especially to the benefit of the independent and franchised merchants. The committee has 7 to 10 representatives of MGA TMA members with meetings held bi-monthly or as necessary. We’d like to recognise the retirements of long-serving members from the MGA TMA Committee.

Farewell Ronald Charles Caddy Ron has a strong background in successfully running independent businesses serving the building and construction industry. Ron began in the timber industry in 1960 at Grange Timber which was started in Fairfield in 1956 by his father Syd and the Bock family. In 1972, Ron and his father took over the business until they sold Grange Timber (Epping, Reservoir and Yarrawonga) in 1989. Ron purchased Lamcal Timber from Gunns of Tasmania in 1992 and continues with his son Heath to operate Lamcal Builders Supplies (LBS) in Heidelberg West. Ron and his brother Bob (dec) ran Truss and Frame in Yarrawonga from 1982 to 1989 before building Lamcal Fast Frame (an offshoot of LBS) in Coolaroo in 1997 and selling in 2007 after a serious accident at the plant. Ron leaves the MGA TMA committee with the knowledge that the industry and timber merchants are going from strength to strength, with the MGA TMA rollout. Farewell Myriam Webster As the Director of Demar H Hardware, since 1984 has been a very successful journey for Myriam, husband Alan and their four children, who are now running the business as the second generation.

A staunch, loyal supporter of the industry and MGA TMA, and previously TMA Victoria, her knowledge and wonderful achievements have been an extraordinary contribution to MGA TMA committee. in her words, “I have enjoyed putting back into the industry by involvement in the committee as well as a member”. MGA TMA formally thanks and acknowledges the contribution that these individuals have made to our industry and in particular, the timber merchants and hardware retailers. We wish them well as they continue to maintain their industry and business activities. In line with these retirements, the committee is very pleased to announce the recent appointment of Mike Drew. Welcome Mike Drew Managing Director of Bayswood Timber Wholesale A dedicated timber wholesaler servicing the requirements of timber merchants, joiners and manufacturers all over Australia. Bayswood is situated on more than 5 acres with 4 sites in Hallam, Victoria including 8200m2 of undercover storage. In addition to the sale of timber, Bayswood also processes and machines timber to order, with stateof-the-art woodworking equipment and quality trained staff. We welcome Mike to the committee and providing experienced input and advice in working alongside the committee and the MGA TMA team.

INDUSTRY NEWS

NATIONAL

Don’t let a ram raid smash your business…

According to Christopher Jacques’ Crime at Work, supermarkets and liquor stores are some of the most popular targets for ram raids. This is most likely due to their bright displays and variety of inventory, including cigarettes (due to their high price points). The threat of ram raid robberies is not one to take lightly. Even when you’ve taken physical steps to protect your business, say by installing bollards or an alarm system, there may still be someone willing to take the risk to get your inventory.

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It’s important to go the extra distance and make sure your business is properly covered by having a bespoke insurance package designed for your business. Earlier this year a ram raid caused over $100,000 in damage to a supermarket in WA. Without the right insurance, it’s unlikely a business owner would be able to come up with the funds to rebuild. This kind of crime is a serious business interruption liability and one to take into consideration when selecting your policy package. Your business may be at particularly high risk if you have an ATM on the premises or stock cigarettes, but those are only a few risk factors. Of course, an obvious lack of security can be enticing, but more often than

you’d think, (particularly with ram raids) those security features do little to deter people. Whatever the motivation may be, one thing is definite – you cannot afford to stop your business for what could be over a year because of one unfortunate night. However, you can make sure you’re properly protected by getting in touch with one of our trusted partners for a policy review at Adroit Insurance Group. Don’t let one person’s actions define the future of your business; make sure to review your insurance before you renew. Contact your local broker on 1300 402 756 for a FREE INSURANCE REVIEW or go to myadroit.com.au/mga.

INTRODUCING ICE BREAK BOLD ESPRESSO Ice Break is #1 IN QLD* and #2 NATIONALLY^

Iced coffee is MASSIVE and makes up 54% of total flavoured milk sales# (meaning itâ&#x20AC;&#x2122;s important for category growth)

Real & strong with 3 shots of dark roasted Robusta coffee blended with fresh full cream milk

Ice Break BOLD Espresso

PACK SIZE

PRODUCT CODE

EAN

500mL

60734

9310036060734

For more information please contact your Parmalat Territory manager, OR PHONE: 1800 000 256 FAX: 1800 335 188 EMAIL: sales@parmalat.com.au

IN M SU AR PP KE O TI RT NG

NEW PRODUCT

$2 M

*Iri Aztec Data Grocery & P&C MAT to 17/09/17. ^SOURCE: IRI Aztec, MAT 26/11/17, Volume, Total Grocery + P&C Flavoured Milk. # IRI Aztec, MAT 26/11/17, Volume, Total Grocery + P&C Flavoured Milk.

LEGAL AND HR

VICTORIA

Long Service Leave in Victoria Long Service Leave laws differ in every state which makes it difficult to understand which laws apply in each scenario. In Victoria, long service leave is governed by the Long Service Leave Act 2019 (Vic). Employees who have worked for the same business for 7 years may be entitled to a period of paid leave. After completing 7 years of service, an employee will be entitled to an amount of long service leave equivalent to the rate of 1 week’s leave for every 60 weeks worked, or 0.866 weeks per year.1 This can be calculated as follows: Period of continuous service (weeks) ÷ 60. The entitlement to long service leave is based on the assumption that the employee has completed 7 years of continuous employment.2 Continuous service is a term that often creates a lot of confusion as it may cover situations where employment has been interrupted by long absences.

contribute to service) for permanent employees;

• Paid or unpaid parental leave up to 104 weeks for casuals;

• Absence due to any illness or injury (including work cover claims);

• Where an employee resigns or is dismissed but is re-employed within a period of 3 months.

However, employment is deemed to be continuous despite an absence that is longer than 12 weeks in the following circumstances:

• Employee and employer agree at the beginning of the absence; or

• Absence is part of the regular terms of engagement of the employee; or

• Absence is due to seasonal factors (such as the weather); or

• The employee has been employed

on a “regular and systematic” basis and there is a reasonable Under the Act, casual, seasonal expectation that employee will be and fixed-term employees are also re-engaged by 5 entitled to take long service leave. the employer. Some of the circumstances where an employee will be deemed to have worked continuously, and are therefore entitled to long service leave, include:3

• Annual leave or long service; • Paid parental leave; • Unpaid parental leave up to 52 weeks (in excess of 52 will not

1 Fair Work Act 2009 (Cth), s 6. 2 Ibid. 3 Fair Work Act 2009 (Cth), s 12. 4 Fair Work Act 2009 (Cth), s 19. 5 Fair Work Act 2009 (Cth), s 12(3).

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An employer also has a right to direct an employee to take long service leave if they provide 12 weeks written notice.4 For any queries regarding long service leave, please do not hesitate to contact our Legal and HR team directly on 1800 888 479 (option 1).5

Australia’s favourite rosé puts a twist on gin Rosé continues to fly off the shelves in Australia1. Gin is the fastest-growing category of any alcohol2. So Squealing Pig, the winemakers of the most popular rosé sold in Australia3, have merged categories and launched Squealing Pig Rosé Gin - a refreshing gin crafted with 10 botanicals and a dash of their award-winning Squealing Pig Rosé wine. It is the first gin sold in Australia that contains pinot noir rosé wine. Treasury Wine Estates Deputy Chief Marketing Officer Angus Lilley said that the Squealing Pig Rosé Gin is an exciting initiative from a brand that enjoys doing things differently. “While quality and expertise underpins everything we do, Squealing Pig has had enormous success bringing some playfulness and fun to the typically serious wine category. We’re now thrilled to be putting this fresh, approachable spin on quality gin too.” The quirky brand has teamed up with international drinks figurehead Jason Crawley to bring some creative ideas to on and off-premise venues for the launch. “Squealing Pig Rosé Gin really punches above its weight and is made in an approachable drinking style,” said Crawley. “It is dry and refreshing with subtle juniper, bright citrus flavours and balanced spices. The addition of the rosé wine gives it a delightful hint of lifted strawberry on the finish.” To speak to a local TWE representative, contact 134 893. 1 Rosé is growing by 25% in value – IRI Aus Liquor Unwtd $ Still Rosé MAT to 12/05/19 2 IWSR Drinks Market Analysis Global Database, May 2019 3 Squealing Pig Rosé is the #1 rosé in Australia - IRI Aus Liquor Unwtd Still Rosé MAT to 12/05/19

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.

new

new look