Independent Retailer magazine | September 2019 by MGA Independent Businesses Australia

Issue

06 SEPTEMBER 2019

New state of the art store opens in Creswick, Victoria.

YOUR INDUSTRY NEWS PROVIDED BY MGA INDEPENDENT RETAILERS

OUR MISSION The mission of MGA Independent Retailers is to deliver the best possible industry specific business support services to independent grocery, liquor, hardware and associate store members.

Contents 5

CEO welcome

MGA NATIONAL SUPPORT OFFICE

MGA Board of Directors — September 2019

MGA Board of Directors Nominations and Elections

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

ACCC approves changes to shopper dockets

MGA encourages strong employment growth

Foodland South Australia does it again!

Retail sector welcomes withdrawal of T21 Bill

10 The 2019 Annual GALA Ball

RETAILER DIRECTORS Debbie Smith (President): Queensland Grant Hinchcliffe (Vice President): Tasmania Graeme Gough: New South Wales Michael Daly: Victoria Ross Anile: Western Australia Carmel Goldsmith: New South Wales Chris dos Santos: South Australia Lincoln Wymer: Victoria Jeff Harper: Victoria

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

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

EDITORIAL & PRODUCTION

12 SPAR announces 2019 Retail Excellence Award winners! 14 Victorian regional town of Creswick revitalised 16 “Small Business Fair Dismissal Code does not work” 16 MGA meets Vic Deputy Premier Tony Merlino to discuss Kaufland 17 Terminating employment — get the process right! 18 The importance of training young employees 20 MGA embarks upon much needed IR Reform Project 21 MGA Independent Retailers WA & Liquor Stores Association WA 22 2019 COSBOA Small Business Summit 23 MGA urges the Palaszczuk Govt to rethink Christmas Eve public holiday 24 MGA advocates banks to introduce least-cost routing immediately 25 Ritchies Special Olympics Australia Event 26 Romeo’s Foodland — Rundle Mall Adelaide 28 Save on Merchant Banking Fees — Least Cost Routing Explained 30 ALM driving engagement with Chinese stakeholders 51 Annualised salaries — understanding the crux of the matter 32 Welcome to tomorrow — it actually arrived a few years ago 34 Launch of Container Deposit Scheme 35 Further plastic bag bans

Genevieve Laidlaw E: genevievel@mga.asn.au

36 Porter’s first pilot store opens in Melbourne

40 The cost of NOT training your employees

38 Understanding overtime provisions

www.facebook.com/ MGAIndependentRetailers

43 TWE lines up $215m Wolf Blass expansion

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

44 South Australian Stage 3 Liquor Licensing Reforms operational

www.twitter.com/ MasterGrocers

47 The Ultimate Renewable “Houses grow on trees”

COVER: IGA Creswick in regional Victoria.

44 New courses easier for interstate workers to work the NSW liquor industry 45 Lion hosts MGA Liquor Committee meeting in new Melbourne office 50 What to do if an employee has exhausted their sick leave?

MGA Corporate Partners DIAMOND

PLATINUM

GOLD

SILVER

BRONZE

ASSOCIATE

WAREHOUSE AND BRAND PARTNERS tasmanian independent retailers

CEO REPORT

CEO Welcome The 2019 calendar year has proven to be a very busy year for MGA and its members. The decisive federal election win by the Coalition has fostered much-needed confidence and little more certainty for small, medium and large businesses in the future because it is business as usual so to speak. However, as a consequence, there are economic headwinds on the horizon caused by the China and US trade discussions and Brexit coupled with a general worldwide economic downturn. In having said that, day to day commercial and competition challenges facing MGA members are on the rise and seem to have no ceiling. Wage costs have risen significantly, causing MGA to embark upon an Industrial Relations reform project. The purpose of the project is for MGA to be better resourced when developing the next National Wage Review submission for the Fair Work Commission. Our industry sector cannot afford another wage increase of 3% after three consecutive years of increases totalling almost 10% on top of increasing penalty rates and overtime. We must gather facts, evidence and data from members to fully inform the FWC to help keep increases to a minimum and also to formulate IR reform policies to present to the Federal Coalition Government. The Federal Government Attorney General, Christian Porter, has said, he will only consider IR reforms based upon facts and evidence and if they are in the best interest of employees, employers and the Australian economy.

It’s tough doing business at present and difficult times require “thinking outside the square”. Currently, the inflexible, complex and costly award system is driving underemployment in our supermarket, liquor and timber and hardware industry sectors. Recent ABS economic reports indicate that Australia’s economy has slowed, with GDP growth falling under 2% over the past year.

Australia’s economy grew by 0.4% in the first quarter, taking year-on-year growth to 1.8%, the weakest result since 2009. Domestic consumption was weak as households spent less and saved more. Strong government spending and commodity exports helped prop up the GDP result. There is, however, a silver lining during times of economic uncertainty for supermarket sales when Australians tend to eat more at home, potentially providing a lift for food sales. Australian Economic Indicators, as sourced from Strikeforce, are as follows:

• Australia’s Population – 25,433,306 • Unemployment rate – 5.2% (stable) • Consumer confidence – 118.5 (+1.9%) • Average weekly earning – $1,605 (+2.4%) • Gross Domestic Product – 0.4% (+0.3%) • Consumer Price Index (CPI) – 1.6% (+0.6%) Despite the negativity, many members continue to invest back into their businesses and are delighted to see the positive results in the form of sales and profit increases. Around the traps, I often hear that family and privately-owned supermarket operators are a resilient lot and cope with adversity incredibly well. While I have no doubt that this is a true statement, I do acknowledge that it’s tough doing business at present and difficult times require “thinking outside the square” to generate new ideas and to continue to attract and delight customers with a superb shopping experience. Until next edition – wishing you terrific trading. Jos de Bruin CEO MGA Independent Retailers

CEO REPORT

MGA Board of Directors — September 2019

MGA Board of Directors Nominations and Elections

MGA’s Board of Directors has incurred several changes since late 2018.

According to MGA’s constitution rules, every year, three MGA Directors must stand down from MGA’s Board by way of rotation, to make way for MGA Board Director nominations from members.

After the retirements of MGA Directors Andrew Bray (NSW), former Vice President Steve Miller (Vic), former President Rod Allen (Vic) and Gino Divitini (WA), the Board has been renewed with new Board Directors.

MGA members will be receiving an invitation to participate in a nomination process by the Australian Electoral Commission (AEC). The timetable for nominations is as follows:

The new Board Directors include Jeff Harper (Vic), Ross Anile (WA) and Lincoln Wymer (Vic/NSW). All Board members are truly dedicated to promoting the best interests of MGA members and are completely independent in that regard. We thank MGA’s Board of Directors for their dedication and commitment to “making life easier” for all MGA members, including the Timber and Hardware sector via the MGA TMA Management Committee.

• 09/09/2019

AEC Returning Officer publishes Election Notice via email.

• 09/09/2019

MGA publishes Election Notice and nomination form via its website.

• 09/09/2019

Nominations open.

• 30/09/2019

Nominations Close at 5:00pm (Australian Eastern Standard Time (AEST)).

Should there be more than three nominations for three vacant MGA Board of Director positions, then the AEC will conduct an election process with MGA’s members.

• 30/09/2019

Candidate Statements to be lodged by 5:00pm (Australian Eastern Standard Time).

• 21/10/2019

Postal Ballot opens.

• 11/11/2019

Postal Ballot Closes at 5:00pm (Australian Eastern Daylight Time (AEDT)).

MGA is required to have the Election Notice and nomination form published via its website from 09/09/2019 and until 11/11/2019. From L to R to back — Mick Daly (Vic), Debbie Smith (President—Qld), Lincoln Wymer (Vic/NSW), Grant Hichcliffe (Tas), Ross Anile (WA), Graeme Gough (NSW), Peter Alexander (MGA TMA Committee). Middle L to R — Chris Dos Santos (SA), Carmel Goldsmith (NSW/ACT), Jeff Harper (Vic), Phil Ibbotson (Company Secretary), MGA CEO Jos de Bruin.

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INDUSTRY NEWS

NATIONAL

ACCC approves changes to shopper dockets — 4 cents per litre remains Seven years ago MGA, together with many members and industry stakeholders, was able to convince the then Federal Minister for Small Business Bruce Billson and the Chairman of the ACCC Rod Sims that the petrol shopper docket scheme at that time driven by Coles and Woolworths was grossly unfair and demonstrable of being a misuse of market power. As the shopper docket petrol discount escalated from 6, 8, 10 and 12 cents a litre, independent supermarket and fuel retailer sales were supplanted from the independent sector to the chain sector. There was no sales growth, just a supplantation of business. Based upon this finding both Minster Billson and Rod Sims were able to negotiate an “enforceable undertaking” restricting the chains to a 4 cents a litre discount. This allowed the market to operate on a level playing field, thus restoring a competitive tension between the independent supermarket and fuel retailers and chain store sectors. Recently Rod Sims at the ACCC informed the market of a change to the enforceable undertaking given the shift in the way Coles purchases its fuel needs from Viva Energy. The good news is the 4 cents per litre enforceable undertaking is still in place. Simply explained by Mark McKenzie, CEO of ACAPMA, most MGA members and industry stakeholders would be aware that the two major supermarkets entered into voluntary undertakings with the Australian Competition and Consumer Commission in 2012 in response to a substantial body of evidence pointing to the adverse competitive impact of high-value shopper dockets on competition within the Australian retail fuels market. In other words, the ACCC sought to prohibit the two supermarkets from subsidising fuel purchases from their grocery businesses given that this mechanism (i.e. stacking) was not available to other fuel retailers. Moreover, given that the introduction of shopper dockets appeared to have been responsible for dramatic changes in retail market shares within the national supermarket and fuel retail markets. What is less well understood, however, is that these undertakings did not prohibit the use of shopper dockets. Instead, it required the supermarket retailers to fund the discount from their fuel businesses, not their grocery

businesses and capped the value of the discount at 4 cents per litre. The effectiveness of these agreements is self-evident. In the seven years since these arrangements were put in place, market shares have rebalanced towards not supermarket and independent fuel retailers in a sustainable manner. Changes in the alliance arrangements between Coles and Viva Energy announced late last year, however, meant that there was a need to revisit the nature of Coles Express’ undertaking with the ACCC. It is understood that Coles subsequently made an application to the ACCC to vary to their undertaking to bring the nature of the shopper-docket undertaking into line with the architecture of the new commercial arrangements that have recently been finalised with Viva Energy. Effectively, the new arrangements between Coles Express and Viva Energy function on an ‘agency’, or commission, basis, as opposed to the previous arrangement where Coles Express purchased fuel on a wholesale basis from Viva Energy and retailed this fuel in its own right. In its latest Quarterly Petrol Price Monitoring Report, the ACCC has advised the market that they had agreed to vary the Coles’ voluntary shopper docket undertaking in line with the changed operational arrangements between Viva Energy and Coles Express. Importantly, the new arrangements maintain the 4 cents per litre cap on the value of the shopper dockets that can be marketed by Coles Express in the future. The ACCC decision on this matter is a welcome one. It highlights the capacity of our national competition regulator to accommodate the inevitable changes in market structure that occur in our market from time to time, while simultaneously ensuring valid competition safeguards remain in place for all market participants.

INDUSTRY NEWS

NATIONAL

MGA encourages strong employment growth Strong employment growth cannot be achieved in the independent supermarket, liquor and hardware sectors owing to various factors draining the confidence and certainty for MGA employers to take on new staff. The current inflexible and complex Award regime, the substantial wage increases imposed by the FWC over the last 4 years totaling over 12% (9.8% in the last 3 years), the 25% increase in Saturday penalties for casuals and overtime being required to be paid for staff commencing before 7:00am and for late nights, has caused MGA members to reduce their store trading hours, reduce staff hours, employ less staff and work more hours in the business themselves. Put simply, MGA’s members are employing little to no new staff and are, in fact, driving “underemployment”.

“Less than one per cent of small businesses with 1-4 employees in 2017, employed more than four workers in 2018. That’s significantly below the historical transition rate of 6%.

MGA applauds the Australian Small Business and Family Enterprise Ombudsman, Kate Carnell for her crusade to help small business make employing staff simpler and more affordable. Here is a recent media release from Kate below.

“The research cites World Economic Forum surveys, which have consistently found Australia’s Labour Market regulation is the most problematic factor for doing business.

“Less than one per cent of businesses with 5-19 employees were employing more than 19 people in 2018. That’s also well under the historical transition rate of 4%. “A major issue is Australia’s rigid industrial relations system.

OMBUDSMAN URGES ACTION ON SMALL BUSINESS GROWTH “COLLAPSE”.

“Part of that broad picture is ensuring small business owners can feel confident they can meet their obligations and avoid an unfair dismissal claim in the event they need to let a worker go.

The Australian Small Business and Family Enterprise Ombudsman, Kate Carnell says she is deeply concerned by fresh data showing small business growth is in crisis, urging the government to do more to break down the barriers to business expansion.

“That’s why my office has recommended a number of important changes and additional checklists to the Small Business Fair Dismissal Code.

“The Institute of Public Affairs’ (IPA) latest research has found an alarming decline in the rate of small business growth,” Ms Carnell says. “What concerns me greatly about this report’s findings is the sharp drop in the percentage of small businesses hiring additional staff.

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“A clearer Code would reduce the risk of unfair dismissal claims and provide small business owners with the impetus they need to hire more staff. “The government has announced a review into the industrial relations system. The Small Business Fair Dismissal Code should be number one on that agenda.”

INDUSTRY NEWS

SOUTH AUSTRALIA

Foodland South Australia does it again! Congratulations to the Foodland Group of independent retailers hailing from SA. They have achieved their twelfth straight Roy Morgan Supermarket of the Month Award with a customer satisfaction rating of 86 % for July 2019. Foodland SA has now won nineteen of the past twenty monthly awards! Despite Foodland and Aldi’s ongoing success, Roy Morgan says the overall customer satisfaction ratings for all five leading supermarkets have declined “significantly” from a year ago. Both Aldi and Woolworths have recorded the largest decline (-10 per cent) since a year ago. “Foodland has enjoyed an incredible run at the top of Roy Morgan’s supermarket satisfaction ratings, remaining unbeaten as the number one supermarket for the past twelve months,” Roy Morgan CEO Michele Levine said. “Both Foodland and Aldi have been the supermarkets to beat in recent years, as other brands have struggled to achieve similar ratings. “Despite the individual success stories of Foodland, and to a lesser extent Aldi, the supermarket sector is undergoing a steady decline in customer satisfaction. In fact, Foodland’s percentage rating has now slipped into the eighties along with the other supermarkets. “If we focus on recent months, we see second-placed Aldi has slipped in ratings, while third-placed Coles has shown some improvement. Next month’s supermarket satisfaction ratings

TASMANIA

Retail sector welcomes withdrawal of T21 Bill In recent months MGA, together with MGA’s Tasmanian members and other industry associations, has been lobbying Tasmanian Members of Parliament not to endorse Independent MP Ivan Dean’s Private Members Bill, to increase the age of a person allowed to purchase tobacco in Tasmania from 18 to 21. This impractical proposal has created enormous uncertainty within the Tasmanian retail sector at a time when some people say retail is in a minirecession period.

could see a switch in positions for the two supermarket giants.” Product category customer satisfaction ratings The new data has also measured the customer satisfaction ratings of supermarkets across a number of specific product categories. Unsurprisingly, says Roy Morgan, Foodland was the leading supermarket across several specialty areas.

• Foodland recorded the highest customer satisfaction rating for fresh fruit (84 per cent), bread (81 per cent), fresh vegetables (82 per cent) and delicatessen (78 per cent).

• Aldi performed the best in dairy (85 per cent) and meat (74 per cent).

• Woolworths secured the highest customer satisfaction for seafood (51 per cent).

Congratulations to Foodland CEO Con Sciacca and his dedicated team and all Foodland store owners in South Australia who continue to inspire independent retailers around Australia with their exceptional shopping offer and experience. Source: Roy Morgan Research Company

After much debate and discussion with the Liberal Government and Labor Opposition by MGA, TIR and other Industry Associations, Ivan Dean’s “out of touch” Private Members Bill (T21) was essentially defeated before it went to the Parliament and withdrawn. After this unanimous show of support for “no change” to the purchasing of tobacco age from 18 to 21, MGA suggests that as Ivan Dean MLC did not have the numbers for the T21Bill, that it will not proceed, and therefore should be withdrawn entirely from the notice paper. MGA Independent Retailers, Tasmanian Independent Retailers (TIR), the

Australian Retailers Association, the Tasmanian Small Business Council, the Australian Lottery and Newsagents Association, Tasmanian Hospitality Association, Tasmanian Chamber of Commerce and Industry, as well as the Australian Convenience Stores Association all strongly opposed the proposed T21 Bill on behalf of thousands of their members around Tasmania. MGA understands and supports Ivan Dean MLC for his efforts to reduce tobacco usage in Tasmania but believes a sustained reduction in tobacco usage in Tasmania can only be achieved in far more practical ways through health and lifestyle education methods.

INDUSTRY EVENTS

NATIONAL

The 2019 Annual GALA Ball 70th anniversary extravaganza The grocery and liquor industries came together on Friday, August 23, which was represented by store owners, managers, retailers, supplier partners and key industry stakeholders for the 70th annual MGA Grocery and Liquor Association (GALA) Ball. This year, the event was held at the 5-star Sofitel Hotel and was a hugely successful evening, bringing together old friends and new. Debbie Smith – MGA President and Queensland multi-site operator, welcomed all to the evening and spoke about the importance of the industry coming together to share in what was to be a fantastic night of entertainment for a wondrous cause.

GALA patron, and Ritchies CEO, Fred Harrison also spoke about the annual event and its strong support of the Reach Foundation’s delivery of hundreds of youth programs each year. GALA has raised over $1.5M in its 25-year association with this great cause. The GALA committee would like to warmly thank the following people and organisations, that played a big part in the planning, sponsorship, donations and support on the night, to ensure the event’s success.

THANK YOU • GALA Committee • Fred Harrison — Gala Patron

• Glen Christie — Reach • Reach Volunteer Crew

• Peter Wagner — ALM • Sam Ludeman Band

IN-KIND SUPPLIERS • Accolade Wines • ALM / IBA • Arnott’s • Apex Tools • Asahi Premium Beverages

• Asahi Lifestyle Beverages • Australian Vintage • Bacardi • Blackmores • Boccaccio Cellars • Bottle-O • Brown Family Wines • Brown-Forman

• Bulla Dairies • Campari • Carlton & United Breweries

• Casella Family Wines • CCA • Capi Water • Cellarbrations • Coffee Beanery • De Bortoli Wines • Delegat • Diageo • Dynamite Printing • Edgewell

All raffle, silent auction and live auction proceeds are donated to the Reach Foundation, which raises muchneeded funds to support the well-being of young people across Victoria & New South Wales through delivering over 40,000 workshops for youth each year.

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• Edgemill Group • Envirocare • F45 Collingwood • Gasmate • Interhampers • John Markham • Lavazza Coffee • Lion • MAK Photos • Melrose • Metcash Food & Grocery • Mitchelton Winery • Monde Nissin Australia • Palmers

• Pernod-Ricard • Premium Beverages • Reach • Sabco • Samuel Smith & Sons • Southtrade • Sofitel • Spirits Platform • Taylors Wines • T2 • TWE • VOK Beverages • Y-house • Yarra Yarra Golf Club

A big congratulations go out to the dedicated and hard-working GALA committee, who have worked tirelessly to deliver a sensational event again this year. Well done to everyone involved.

Linda Hensgen, former MGA President Rod Allen and Judy de Bruin.

GALA Patron Fred Harrison.

MGA President Debbie Smith.

Reach CEO Sasha Lawrence.

INDUSTRY EVENTS

NATIONAL

SPAR announces 2019 Retail Excellence Award winners! The recent 2019 SPAR National Conference, Trade Show and Gala Awards were held at the Gold Coast Convention Centre in SE Queensland. SPAR CEO Lou Jardin shared with all retailers and industry attendees that SPAR continued to build on SPAR’s ‘Better Together’ strategies throughout the network Mr Jardin explained, over recent years the focus has been placed on our sales strategies, which are Present a Value Statement, implement a Focused Range, Clear the Clutter, Merchandise for Sales and Keep it Clean & Fresh. The spirit of partnership is the founding ethos between SPAR Australia, SPAR Retailers, and SPAR Suppliers. When we all work together, we are a stronger and successful force in the independent supermarket industry. The execution of SPAR’s key sales strategies is integral in achieving positive results in this extremely competitive retail environment and building a value statement to our customers. We continue to work on improving the network’s performance, growing sales and a stronger bottom line for our retailers. It’s about creating the perfect customer experience through store development and re-investing in our stores. SPAR’s role in the independent retail landscape is vital, providing choice for Retailers and ensuring competition in the sector. The Gala Awards Dinner, held on August 10, was hosted by Giaan Rooney, former Australian Swimmer, and McKenzie entertained guests. For the first time, the nominees and winners were announced on the night! The Store of the Year awards

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was presented by SPAR Australia Managing Director, Mr Lou Jardin, and SPAR Guild Council Deputy Chair, Mr Bob Little. In a night designed to acknowledge the Retailers who partnered with SPAR Australia to drive growth for their businesses, SPAR would like to congratulate the following Retailers on their success in their respective categories: SPAR Store of the Year 2019 • SPAR Jandowae SPAR Express Store of the Year 2019 • SPAR Express Kalbar SPAR Australia’s Retail Awards Program identifies and recognises Retailers who are excelling in their businesses. The past twelve months, again, has seen a record amount of stores re-investing in their businesses, mainly thanks to the funds that they have received through the SPAR Loyalty Bonus. The Department awards were presented by SPAR Australia’s Regional Business Manager, Mr Andy Rouse. Congratulations to the following Retailers for their success in the Department Awards: SPAR Grocery Award • SPAR Molong SPAR Express Grocery Award • SPAR Express Kalbar SPAR Dairy/Freezer Award • SPAR Urunga

SPAR Express Dairy/Freezer Award • SPAR Express Terrigal SPAR Fresh Food Award • SPAR Maclean SPAR Express Fresh Food Award • SPAR Express Terrigal Food To Go Award • SPAR Lismore Following on from the major and department awards, were three other awards. Store Investment Excellence Award, which was presented by SPAR Australia’s Store Development & Refit Manager, Mr Ray Ruberto. The Store Investment Excellence Award recognises all stores who’ve gone the extra mile to improve. This includes refurbing, hard work, new development, new equipment, or other aspects which enhances the perception of the store in the local community. Store Investment Excellence Awards 2019 SPAR Bourke, SPAR Express Broadbeach, SPAR Ballina, SPAR Coffs Harbour, SPAR Dorrigo, SPAR Maclean, SPAR Mungindi, SPAR Lismore, SPAR Southtown, SPAR Express Beaudesert, SPAR Morayfield Road, SPAR Palmwoods, SPAR Express Proston, SPAR Express Terrigal, SPAR Winton, SPAR Express Tallebudgera, SPAR Suffolk Park The last two Excellence awards were presented by SPAR Australia’s Franchise Manager, Ms Lucy Balchin. Stores who were considered for the Community & Customer

Service Excellence Award are actively involved in local community activities, undertake local sponsorships, provide a tailored local offer, provide exceptional customer service, demonstrate ongoing efforts to continually find new ways to serve their local community better and live by both SPAR and family business values. Community & Customer Service Excellence Award 2019 • SPAR Dunedoo The final Excellence Award was for the Brand Ambassador of the Year. The Retailers who were considered for this award achieve compliance to SPAR’s promotional program, demonstrate support of the SPAR warehouse, have a tailored local offer, are actively involved in their communities and are stores SPAR are proud to have our brand on.

L to R: Morgan Jackson – SPAR Express Beaudesert, Andy Rouse – SPAR Australia Regional Business Manager, Catherine Osbourne – SPAR Ballina, Amanda Castles and Clare McKlosky – SPAR Coffs Harbour, Tanya Mitchell and Brett Gillespie – SPAR Winton, Raelyn Lowbridge – SPAR Lismore, Ben Kinzl – SPAR Suffolk Park, Ray Ruberto – SPAR Australia Store Development and Refit Manager, Giaan Rooney – MC, Angela Lea – SPAR Palmwoods, Jeff Sykes – SPAR Mungindi, Charlotte Beckley – SPAR Express Broadbeach, Shaun Jenkins – SPAR Express Tallebudgera, Bob Little – SPAR Maclean, Jason Parrelli – SPAR Express Terrigal, and Deneta and Ellen Wilson – SPAR Southtown.

Brand Ambassador of the Year Award 2019 • Lisa & Will Guy – SPAR Richmond SPAR Australia would like to congratulate all Retailers who were nominated in the 2019 SPAR Retail Awards and made the judging process an extremely competitive one. Since becoming Managing Director of SPAR Australia in December 2010, Lou Jardin has vowed to continue to provide competition at the wholesale level, ensuring independent retailers can source deals that allow them to compete in the market and ensure the survival of family businesses in the grocery industry. Locally owned and operated, SPAR stores are part of the worldwide SPAR family. Over 13,112 SPAR stores in over 48 countries across four continents meet the needs of over 13.5 million customers daily. At SPAR our customers can be assured of great service, a great range, low prices every day and specials that will SAVE them money!

SPAR Australia Gala Awards Dinner 2019.

L to R: Lou Jardin – Managing Director, SPAR Australia Ltd, Nick Holman – SPAR Jandowae and Bob Little – SPAR Guild Council Deputy Chair.

L to R: Lou Jardin – Managing Director, SPAR Australia Ltd, Zahid Khan and Jagdeep Singh Toor – SPAR Express Kalbar and Bob Little – SPAR Guild Council Deputy Chair.

L to R: Tim Booth – SPAR Dunedoo, Lucy Balchin – SPAR Australia Franchise Manager.

Lou Jardin – Managing Director, SPAR Australia Ltd.

INDUSTRY NEWS

NATIONAL

The former TAB as a service area.

Victorian regional town of Creswick revitalised For more than a decade Steve Sellars operated the FoodWorks local supermarket in the Victorian country town of Creswick, just outside of Ballarat. With a population of just over 2000 people, the township of Creswick didn’t really have a full-service supermarket, and most would shop in Ballarat and use Steve’s store as a top-up shop. Five years ago, Steve and his partner Jacqui decided to embark upon the development of a full-service supermarket in Creswick that would make the locals proud. Steve’s motto of “plan, plan and plan to get it right”, and collaboration with experts, meant that Creswick could expect a state-of-the-art supermarket, that would soon become the new local community hub. With the lease of his existing 580 square metre supermarket expiring, Steve was forced to seek an alternate location for his supermarket while the new 1,200 square metre supermarket was being constructed across the road. That alternate location was the local “British Hotel” next door to the old supermarket. British Hotel owner Ben Ryan, from Ryan’s Supermarkets, offered Steve and Jacqui the opportunity to create a temporary “pop-up” store, enabling the Creswick community to have a local supermarket and be able to do a local shop.

Steve occupied the hotel site from late 2018 to the 7 August 2019 – nine incredible months of limited trading capability. The hotel’s available floor space was 250 square metres in size and all the rooms in the hotel were divided into various grocery and fresh departments. Display space was a premium with storage areas taking the form of several dry and refrigerated freight containers located out the back of the store. The lounge and public bar area of the hotel became the grocery section along with liquor, dairy and freezer. The TAB area was for customer service, newspapers, tobacco, meat, roast chickens and fresh produce. The rooms at the rear contained cleaning goods, pet foods and many variety items. To the credit of Steve and his dedicated staff, the store was able to maintain 75% of its week-to-week sales while the new store was built. The most gratifying experience from this temporary venture was the fantastic support and loyalty the local community showed toward the pop-up store, and the genuine excitement and relief they showed with the new store being built in their town.

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The new IGA Creswick Deli before opening.

The new IGA Creswick Deli after opening.

INDUSTRY NEWS

NEW STORE OPENS IN CRESWICK VICTORIA On August 8, Steve and Jacqui officially opened their 1200 square metre state of the art supermarket in Creswick. Located in a hollow toward the bottom end of town. It’s almost like the supermarket always existed in that location – such is the subtleness of the build and the amenity of the parkland that surrounds it. Congratulations to Steve, Jacqui, and the many stakeholders involved in bringing life to this unique and much-awaited project. A multitude of suppliers including; Metcash, TRG, GPK, Koxka, Arneg and many more made a significant contribution to the development and construction of this store. This community full-service supermarket is a beauty! It’s warm and inviting ambience has all the hallmarks of being an ultimate sustainable and energy-efficient store. It’s connected and driven by the state of art GPK technology with all the latest lighting, 100% CO2 refrigeration (coolrooms, fridges and freezers), scales, point of sale, security, air conditioning and heating systems, as well as other sustainable equipment including 90 and 180 litre shopping trolleys made from recycled milk containers. As you enter the store, a warm and modern market-style feel greets customers. On offer are 28 bins of fresh fruit and vegetables, a full-service delicatessen, bread and bakery, freshly squeezed orange juice, and a vast range of meat and poultry as well as

an extensive JC’s Nuts section. The expansive full-service Delicatessen area is impressive with the kitchen area fully equipped with ovens, deli slicers and parmesan grater. It can produce home-cooked meals, roast chickens, take away foods and has a wide variety of cheeses, small goods, olives and salad ingredients. The meat department which has a full-time butcher, along with support staff, sources meat and poultry from local suppliers. The utilisation of space in the store is outstanding. While spacious for shoppers to move around the store, with 2 metre wide aisles, it also exudes a warmth and cosiness that makes for a pleasurable shopping experience.

stocked is an extensive range of boutique craft, premium and imported beers as well ciders, spirits and ready to drink options. A large storeroom with racking supports this store, along with several state-of-the-art coolrooms and prep rooms for fresh produce, the delicatessen, as well as frozen and chilled products. Congratulations to Steve, Jacqui and the entire IGA Creswick team and best wishes for long and prosperous trading in Creswick. The people in Creswick are genuinely thrilled to have their very own fullservice supermarket in Creswick after waiting for many decades!

The store has an extensive range of products cleverly displayed in a planned and methodical manner. There are 14 gondola ends for specials and dedicated displays, 7 aisles of groceries, 6 bays of bakery items, 18 modules of health and well-being products, 34 doors of frozen products, 34 doors of chilled items, 5 fridge doors of milk and 18 doors of fresh meat. The new IGA Creswick store officially opened by Iris Huntly.

There are six closed-circuit TV screens located around the store used for communicating specials and advertisements to shoppers inside the store. Also located inside and outside the store are security cameras. Four full-service registers serve customers with conveyors, and a further two express registers at the service desk also transact tobacco and liquor. The 200 square metre liquor department is a joy to shop in. Methodically laid out, the liquor department boasts a sizeable walk-in coolroom, a vast range of local wines, as well as national wine brands. Also

IGA Creswick operators Jacqui Hooper and Steve Sellars.

INDUSTRY NEWS

NATIONAL

“Small Business Fair Dismissal Code does not work” — Kate Carnell

The Australian Small Business and Family Enterprise Ombudsman, Kate Carnell, has handed down a comprehensive review of the Small Business Fair Dismissal Code, recommending a suite of changes to help small business employers meet their obligations. “Put simply, the Small Business Fair Dismissal Code in its current form is not working in the way it was originally intended,” Ms Carnell said. “It is ambiguous and open to interpretation, particularly by lawyers, which means too many small businesses are being pulled into unfair dismissal hearings which are costly and impact productivity. “The vast majority of small business operators are hard-working Australians with good intentions. “The recommendations in this review aim to give small business operators clear guidelines to deliver certainty around complying with the Code. “Importantly – the recommended amendments and checklists are designed to guide a small business employer through a fair dismissal process, not to make the dismissal process easier. “We know that small businesses do not decide to end a worker’s employment lightly. Research by the Fair Work

Commission found that one of the key challenges for small business operators was attracting and retaining good staff and that good employees were highly valued. “Small businesses can’t afford to engage in costly and stressful legal action. They don’t have the support of an HR department when faced with the difficult decision to end a staff member’s employment. “That’s why it’s critical for the Code to drive fairness, and set out clear expectations for small business employers. “According to figures released by the Fair Work Commission, during the first three months of this year, it received 3,583 unfair dismissal applications. “Most were settled during mediation, but for the 172 cases that were presented to the Commission, 111 (65%) were dismissed without merit or deemed legally invalid, meaning they should not have gone to the Commission in the first place.

“By taking the ambiguous language out of the Code such as ‘reasonable grounds,’ ‘valid reason,’ and ‘reasonable chance’ and improving the checklist questions, small businesses will be in a much better position to comply. “We want the Code to work, so that small businesses are doing the right thing and there’s less need to engage lawyers,” Ms Carnell said. The review contains recommendations in the following areas:

• Amendments to ensure the Code meets its intended functions and objectives and provides certainty on what is required of small business employers to ensure a dismissal is fair.

• Improving small business education and awareness in relation to the Code and checklists to help them meet their obligations.

• Clarifying the unfair dismissal

claims process for small business employers and employees.

Source: Kate Carnell – The Australian Small Business and Family Enterprise Ombudsman

MGA meets Vic Deputy Premier Tony Merlino to discuss Kaufland On August 7, MGA National Liquor Committee member, Kaufland Defence Committee member and IGA Mount Evelyn store owner Tony Ingpen and MGA’s Jos de Bruin met with Deputy Premier and Minister for Education, Hon Tony Merlino. The purpose of the meeting was to discuss MGA members’ disappointment at the

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Victorian State Government’s refusal to engage with the independent supermarket sector regarding the “easy” entry into Victoria of the 4th largest retailer in the world, the German retailer Kaufland. The Deputy Premier noted our industry sector’s concerns and vowed to raise them in the cabinet. The current Victorian

State Government has proven to be disingenuous when considering Victorian family enterprise and privately-owned businesses. They say our sector is the backbone and engine room of the economy but never consider the significant commercial impacts of their decision making upon those same important businesses. Jos de Bruin, Tony Merlino and Tony Ingpen

LEGAL AND HR

NATIONAL

Terminating employment — get the process right! Terminating an employee’s employment is never a pleasant experience. Sometimes there is no option but to terminate due to an employee’s poor behaviour, or you need to take immediate action when you unexpectantly find that an employee has made off with your property, leaving you with no choice but to terminate. Whatever the reason for the termination of an employee’s employment, it is vital that you follow the correct procedure leading up to the dismissal. The key to ensuring that you follow correct procedures is to maintain fairness. The law requires that you have a valid reason for dismissal and your actions leading to termination must not be harsh, unjust or unreasonable. Remember an employee cannot respond unless you clearly state your allegations, so be prepared put all the issues that you believe are causing concerns for you to them. Following a correct procedure before termination is essential. If you get the process wrong it could have serious consequences should the matter proceed to a Commission hearing. Firstly, call a meeting by giving notice to the employee of the time and place. Suggest that they may wish to have a support person present at the meeting. Research the problems that you have with the employee’s actions and be fully prepared to present the issues to the employee. Make sure you have a support person too. At the meeting calmly, and not aggressively, put any issues that you feel you need to discuss to the employee. Then you should give the employee a chance to reply to the opinions or allegations that you have given about their conduct or behaviour. An employee is likely to see your opinion of a particular action quite differently from you. Nevertheless, you must give the employee a right to reply.

If this is the first meeting about an employee’s work performance, you will likely give a warning about the performance –giving the employee a chance to improve, and it may prove to be effective. However, if there isn’t any improvement then you are in a more favourable position to terminate the position later. You may wish to give the employee a letter of any serious behavioural issue that you see as a problem and put the employee on notice in a letter that any future unsatisfactory behaviour may result in termination. If you have already been through the process of warning the employee and there has not been any improvement, then you need to repeat the process and then terminate. If the employee has committed an act of serious misconduct, such as theft, violent behaviour, drug or alcohol consumption, then you may take immediate action to terminate. However, you must still go through the process of presenting the allegation, allowing the employee to respond and have a support person present or at least give the right to have a support person. Only after you follow this process should you proceed to termination after assessing all the information. Then you proceed to dismiss the employee. Remember, never have your letter of termination pre-

prepared, you can always send the termination letter after you have dismissed the employee.

THE LAW REQUIRES THAT YOU MUST HAVE A VALID REASON FOR DISMISSAL In summary:

• Make a time to discuss the problem. • Offer a support person. • Present all issues. Listen to the response.

• Be patient – you can always terminate later.

• Never terminate before the discussion.

• Never draft a termination letter before the meeting.

• Listen carefully – don’t rush the process.

• Don’t instantly dismiss unless it is serious misconduct

• Make sure you have a valid reason for the termination.

• Think fairness. For more detailed advice about the termination process, contact the Legal and HR team direct on 1800 888 479 (option 1).

TRAINING

NATIONAL

The importance of training young employees A 17-year-old worker was involved in an accident whose left hand got jammed in machinery while he was using it. It resulted in the amputation of his index and middle fingers. The court ruling emphasised the need for young workers to receive appropriate training, and the company was fined $90,000 for the incident.

The key to this ruling was that the company had not provided adequate training to the young worker and had assigned him duties beyond his capabilities. In making his decision, the Magistrate took into account the company’s efforts to implement injury strategies and its role in the local community. The other factor taken into account included the company’s immediate support to the victim and his family. The magistrate was also critical of the lack of training for the young worker and that the worker had been pressured to perform duties beyond his skill set.

Good leadership is crucial Employers, supervisors and managers of young workers have the most significant influence on their attitude to WHS and work ethic in the workplace. They can help create safe and healthy environments for young workers by:

• providing the right tools, training and supervision to complete work safely

• educating them about WHS rights and responsibilities • empowering young employees to have the confidence to speak up about health and safety in the workplace

• fostering a positive workplace culture that engages young workers in WHS.

Some Statistics • 14 young workers, aged 15 – 24, were killed in workrelated incidents in 2016.

• 13,275 serious workers’ compensation claims from young workers were accepted in 2015–16.

• 70% of serious claims made by young workers were males.

Young workers (aged from 15-24 years) make up a substantial proportion of the workforce. They can bring energy, new ideas and a fresh perspective. However, young workers are also at risk of workplace injury due to their lack of experience and maturity. Young employees bring their own distinct set of challenges in the workplace, such as:

• development of skills, competencies and physical capabilities or lack thereof

• unfamiliar with appropriate workplace behaviours • reluctance to make requests, ask questions or speak out about problems

• overly keen to please and make a good impression • over-confidence in their capabilities.

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WHS Considerations Young workers learn quickly and can adapt to change quite well, but parts of the brain responsible for assessing risk and controlling impulse are still developing. They also have a lack of experience to cope with unexpected, stressful situations. Young employees may look and behave like adults; however, some tasks may be beyond them physically or emotionally. Employers need to be aware of these factors when employing a young person. Distractions and other influences can also affect young workers in the workplace such as smartphones and socialising (online and in reality) could lead to accidents or not being able to take on board information. Other causes of young employees having accidents or making mistakes are their lack of work experience. Often young employees are casual, working irregular hours and shifts, and do not have the value of ongoing, consistent learning compared to full-time or part-time employees. All these factors can lead to young workers being subject to injuries, such as manual handling accidents, slips and trips, falls from heights, stress and fatigue.

TRAINING

Working Hours In Australia, young employees may face employment restrictions on both a federal and state level. These may include:

• work start/finish times • breaks • manual handling tasks and other

tasks that impact a growing body.

As an employer, it is advisable to check state government websites to understand your requirements for employing young workers or get in touch with our MGA Industrial Relations lawyers.

4 TIPS FOR ENSURING A YOUNG WORKER’S HEALTH & SAFETY As an employer of young workers, you have a specific duty to provide information, instruction training or supervision (as far as is reasonably practicable) to young workers. To meet your duty of care and to ensure the health and safety of your employees, consider the following tips: Induction Provide young workers with a comprehensive induction program. The induction should consist of health and safety policies and procedures, information on hazard and incident reporting, and how to complete it – don’t just show the form! – as well as information on workplace hazards and fire and emergency response. On the job training Information and instruction don’t stop after induction. Young workers should be provided with extensive training to ensure they can undertake tasks safely and without risk to their health. Focus particular attention on equipment, chemicals and work processes that the young employee may engage in. Supervision Determine the supervision requirements for tasks your young workers engage in the workplace.

The need and extent of supervision provided to workers should be determined based on the risks associated with each task. Supervisors of young workers should always be available to answer questions and provide advice and immediately correct any unsafe work habits. Consultation Consultation with workers is a duty of PCBUs/employers under health and safety law. Develop a workplace culture that encourages young workers to speak up about safety. Consult with young workers when identifying and controlling workplace risks. Inform them on how to report unsafe working conditions and encourage them to ask questions about safety if they are unsure.

QUICK TIPS FOR TRAINING Develop a buddy/mentor program and pair up young workers with more experienced workers. Having a buddy will give the young worker a more personal introduction to the workplace. Provide hands-on training – tell them, show them, and involve them. People learn better when its hands on. Observe young workers while they work and correct any mistakes. Suggest other ways of doing things and praise good results. With any feedback given – make sure the trainer uses PCP feedback (Positive Constructive Positive). PCP feedback allows the employee to take on board what’s being said without feeling negative about the situation. Ensure they understand the training by asking the employee to recall specific procedures or general requirements, for example – when and where they need to use personal protective equipment (PPE). Follow up with questions within a few days and periodically over the next month or two to ensure learning and understanding to ensure competency in the task at hand.

Encourage young workers to feel comfortable asking questions of their supervisor and co-workers. Document all training to ensure that you have covered all key topics Are young workers a good investment? There are many perks to hiring young workers – they’re likely to be openminded and flexible, they can provide fresh information and innovation. It is also a chance to train a team member in the way the business operates and not inheriting bad habits, and also provides a valuable opportunity to somebody at the start of their career. By hiring young employees from the community, it gives your customers and the local community a sense of support and growth, adding value to your business and its standing within the local community, as well as promoting customer loyalty. It is rewarding to see a young employee grow into their role and become the next leader within the business. Why not take the opportunity and be part of that memorable journey? For further enquiries on tailored training programs or other courses we offer please do not hesitate to contact our training specialists on 1800 888 479 option 2.

Tailored training solutions for your young employees.

MGA INDUSTRY TRAINING ARE HERE FOR YOU! Call our specialist team 1800 888 479 (option 2)

INDUSTRY NEWS

NATIONAL

“ PENALTIES FAIRER

MGA embarks upon much needed IR Reform Project

LESS

Y LEXIT P M CO

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“AW

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ARD S

employ the level of staff required to run their businesses.

It will also provide the basis for strong and succinct policies to present to members of parliament in Canberra to help facilitate muchneeded IR reform.

Unfair Dismissal laws are broken. The 15 staff threshold must lift to at least 50 staff. Small businesses cannot cope with the increased, and often frivolous, unfair dismissal claims by employees.

MGA has determined after extensive global research that Australia’s current Award system is the most complex and inflexible in the world disallowing employers to

The Better off Overall Test (BOOT) is onerous and very difficult for MGA members to navigate when wishing to embark upon more employment flexibility. They simply cannot satisfy the BOOT.

The FWC says it is triaging employee unfair dismissal claims to stop unjustified claims, but this process has failed. It is wrong to

assume that an employer is guilty until proven innocent. It is illegal for an employer to pay “go away” money simply to put a case at rest – even though the employer is in the right. MGA has experienced a significant uplift in unfair dismissals, often frivolous and unjustified, which is of great concern. These unfair dismissal claims are not only time consuming for employers, FWA and MGA but also very costly to conduct. MGA will be engaging with members in the coming weeks with an IR research survey and hopes to achieve the support from as many members as possible for this vital project.

Be involved in the review and have your voice heard!

We need your help to talk to an external research consultant who is assisting us with collecting compelling evidence and data to strengthen our submission.

JOIN THE MGA INDUSTRIAL RELATIONS REFORM PROJECT

To be involved, head to our website and fill in the consent form and our researchers will be in touch!

mga.asn.au | September 2019 | Edition 6

www.mga.asn.au/industrial-relations-reform-project

”

“FLEXIBILITY ”

MGA, together with a dedicated industry committee comprising retailers and industry stakeholders, has embarked upon an all-important IR reform project. It aims to gather and deliver workplace and employment facts and data from MGA supermarket, liquor and hardware members around Australia in preparation for the next MGA National Wage Review submission to the Fair Work Commission which commences later in 2019.

”

INDUSTRY NEWS

WESTERN AUSTRALIA

MGA Independent Retailers WA & Liquor Stores Association WA To strengthen their business and working relationship further, Master Grocers Australia (MGA Independent Retailers & MGA National Liquor) and Liquor Stores Association WA have come together to move toward delivering a more secure and sustainable retail sector for independent packaged liquor store owners. Earlier in 2019, MGA Liquor President George Kovits, MGA WA Director and WA retailer, Ross Anile and MGA CEO Jos de Bruin, met for discussions with their LSA WA counterparts, Chair, Mr Lou Spagnolo and LSAWA CEO, Mr Peter Peck.

association independence is respected, our purpose is to develop a strong, sustainable national independent package liquor industry sector. This union will further strengthen it, benefiting all our independent retail and packaged liquor members in WA and nationally, around Australia MGA Liquor President, George Kovits said, “This initiative will drive certainty and confidence for our 1200 members selling packaged liquor, enabling stability and security for their businesses and families into the future.”

MGA CEO Jos de Bruin said, “The successful meeting confirmed the two organisations are very much aligned. Both are driven by supporting its family and privately-owned retail businesses and delivering a national support framework which will benefit all members. There is no ambiguity as we do not represent the interests of big business!” Mr Peck said, “The two organisations both recognise the important role each plays in the retail and packaged liquor industry. Working to our obvious strengths, we will strive to deliver to our members a more secure retail sector and a more diverse packaged liquor industry in Australia”. By both organisations committing to a Memorandum of Understanding and recognising that member and

L to R: MGA CEO Jos de Bruin, MGA WA Director Ross Anile, LSAWA Chair Lou Spagnolo, and CEO Peter Peck.

INDUSTRY NEWS

NATIONAL

2019 COSBOA Small Business Summit The Council of Small Business Organisations of Australia (COSBOA) held its Small Business Summit at the Sofitel Hotel in Melbourne on August 29 and 30. MGA is a Director on the COSBOA Board. Over 190 delegates attended the Summit, which was aptly themed as “Policy for the People”. It attracted a variety of speakers including members of state and federal parliament, federal regulators and various small business advocates and operators. Many subjects were addressed in what can be described as an interactional and engaging forum for discussions addressing key family and private business concerns and opportunities.

ASBFEO Kate Carnell.

Guests and guest speakers included; Small Business and Family Enterprise Ombudsman Kate Carnell, Minister for Energy, Hon Angus Taylor, Victorian Minister for Small Business, Hon Adem Somyurek, ACCC Deputy Chair, Mick Keogh, ASIC Commissioner John Price, ATO Commissioner Chris Jordan, Fair Work Ombudsman Sandra Parker, Assistant Federal Minister for VET and Apprenticeships Hon Steve Irons, former New Zealand Prime Minister Sir Bill English and Anna Bligh, former

L to R: Gary Johns, Chris Jordan – ATO, Geoff Browne, Sandrea Parker – FWO.

L to R: John Chapman – SA, Jos de Bruin – MGA CEO, Mick Keogh – ACCC, Bruce Billson – former Sml Bus Minister, and MGA Board members.

Queensland Premier and now CEO Australian Banking Association. All participants benefitted greatly from being able to engage freely with key regulators as well as tech companies such as Xero, NBN and American Express. The next COSBOA Small Business Summit will be held in Brisbane on August 27 and 28, 2020.

L to R: MGA CEO Jos de Bruin, Sir Bill English, Minister Angus Taylor.

ATO Commissioner Chris Jordan.

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mga.asn.au | September 2019 | Edition 6

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QUEENSLAND

MGA urges the Palaszczuk Government to rethink a Christmas Eve public holiday At a time when the Australian economy is facing possible recession, the Queensland Government is irrationally contemplating creating a half-day public holiday for thousands of Queensland workers on Christmas Eve. Jos de Bruin, CEO of Master Grocers Australia, questioned this needless proposal by the Palaszczuk Government for Christmas 2019. Mr. de Bruin said, “At what cost does the Premier propose to achieve what she believes is fair?” He queried how Minister Grace Grace could justify her statement that “employers would be minimally affected”. Mr. de Bruin continued, “It is quite clear that the government is either ignoring the desperate needs of small businesses who contribute $3.0B to the Queensland economy or there is a strong element of naivete in government circles, demonstrating that there is no comprehension of how serious any increases to wages would be at this crucial time”. “The Minister referred to the fact that “no reasonable person would begrudge …

workers the right to penalty rates if they work”. Well no we don’t, Minister, that is in a sound economic environment. However, you are wanting to create a new system at a time when small independent retail businesses are struggling for survival, leaving them with no choice but to close their doors and lose business. All in the interest of giving kudos to a government that obviously has no comprehension of the impact this decision would have on their constituents.” MGA estimates the additional cost to its Queensland members of merely keeping its doors open for customers on Christmas Eve, between the hours of 6.00pm and 9.00pm alone, will cost almost an additional $900,000. This will have a dramatic effect on the costs to do business within the independent supermarket sector.

MGA has suggested to the government to either drop this out of date “economy wrecking” union driven proposal or at least consider moving the proposed time from 6.00pm to 10.00pm on Christmas Eve for the Public Holiday to take effect. Mr. de Bruin urged the government to rethink this proposed change and concluded by saying, “Small independent retail businesses work hard all year for long hours and just at a time when the economy is at its lowest ebb for decades the Palaszczuk Government proposes increased penalties that will inevitably have a destructive impact on this hard-working sector. MGA urges the government to rethink this proposal and perhaps give it consideration at a time when the economy is buoyant because now is definitely not the time Minister!”

INDUSTRY NEWS

NATIONAL

MGA advocates for banks to introduce least-cost routing to members immediately MGA has long been advocating for Australia’s leading banks to introduce “least-cost” routing for credit card and eftpos payments. This will facilitate a dramatic decrease in merchant transaction costs for MGA members, given the significant and ever-increasing rise in “tap and go” customer credit card transactions. Australia’s leading retail industry associations have also called on banks to be more proactive in educating their business customers on least-cost routing and making it easier to access the considerable savings to be achieved by it. MGA Independent Retailers (MGA), COSBOA, the Australian Retailers Association, and the Australian Convenience and Petroleum Marketers Association say it’s time for Australian banks to be called out on their lack of transparency and efforts to inform businesses that they have the option to dictate which network they use when processing contactless payments. MGA and the industry coalition are also calling for banks to ensure that least-cost routing options are available for eCommerce and mobile payments as they become increasingly popular with Australian consumers.

suit because members reporting back to MGA, indicate the “banks don’t know what least-cost routing is”. “Part of the problem is that the banks aren’t defaulting the position. If they were doing the right thing, they would look at every retailer individually and inform them that they would be better off using least-cost routing. However, it appears, they have a vested interest in not doing that The push from MGA and the industry associations comes following the relaunch of the Merchant Pricing Hub website by Australia’s Payments Consulting Network, which offers Australian businesses information on least-cost routing, where they can find providers and how much they could save. Research Director Catherine Batch said it was helpful to see the country’s leading industry associations team up to challenge the banks to start doing more in the least-cost routing space.

MGA has been pushing for more action from the banks for quite some time and is pleased to join with the other industry associations to form a united front.

“It’s clear that Australia’s small to medium businesses need to be engaged by every stakeholder - from their relevant association right through to their very own bank - and shown exactly what least-cost routing is and how much money they can save,” she said.

The main issue with merchant fee arrangements is the lack of transparency of fee structures, which, when coupled with its generally complex nature, means most small businesses are paying thousands of dollars more for processing debit transactions for their customers than they would if they were fully aware of their options.

“It’s no secret that they are losing thousands of dollars every year through merchant fees, but Merchant Pricing Hub is helping to bridge this gap, giving businesses the names of providers who offer least-cost routing and any special conditions associated so they can start saving sooner, rather than later.”

MGA continually speaks out about our members’ business viability and that it is suffering badly from increasing costs just to do business. It’s paramount that least-cost routing is made available and we are delighted to be standing with our industry association partners driving for this to happen.

The guide plus free access to the updated Merchant Pricing Hub is available at https://www.merchantpricing.com/leastcost-routing.

COSBOA Chief Executive Officer, Peter Strong, said while some of the big four banks did appear to be coming into the fold following intense industry pressure, they still had a long way to go to help support Australian businesses who continue to be gouged by exorbitant merchant fees. While MGA has been very active in informing members of least-cost routing, it appears the banks have not followed mga.asn.au | September 2019 | Edition 6

MGA members are encouraged to contact their respective banks and to request “Least-Cost Routing” for their stores – it will save you thousands of dollars in merchant banking fees. MGA members are also encouraged to contact our corporate partner, eftpos, to discuss the options available and to navigate the complex topic of “least-cost routing”.

INDUSTRY NEWS

Is my store at risk of a ransom attack?

Ritchies Special Olympics Australia Event

As the number of cyberattacks continues to rise, protecting the systems and data your supermarket relies on is more important than ever. An increasingly common type of cyber-attack is ransomware, which can have an instant financial impact as well as longterm consequences.

The Ritchies Supermarket Group conducted its annual industry SOAR, and ROAR industry luncheon event held on the July 19 in aid of the Special Olympics Australia organisation.

The concept behind ransomware is simple. Hackers encrypt all the systems, files, folders and drives and then demand a ransom to be paid before they reinstate them. Ransomware is cheap to deploy and widespread, so even if only a few victims pay, attackers will likely make a handsome profit. As such, cybercriminals attacking in this way will typically take a “scattergun” approach in targeting their victims. Being attacked by a ransomware hacker is financially damaging for a business, and if it’s handled badly, the damage to your company’s reputation can be irreparable. So how does that affect my supermarket you’re wondering. Imagine your point of sale, eftpos machines and cash registers were inaccessible for a day; now imagine the financial and reputational damage you’d suffer if they were down for a week. Goods couldn’t be scanned, and even if they could most customers don’t carry cash, and if they did have cash there would be significant security concerns surrounding money handling. Not to mention all the food expiry on shelves because customer traffic had decreased substantially.

Over 250 industry suppliers, retailers and industry stakeholders attended this event which was a great success. Everyone in the room helped to raise nearly $35,000. These funds will assist SOAR to provide more sporting and movement opportunities to people with intellectual disabilities. Ritchies CEO Fred Harrison, together with Metcash General Manager, John Morris, presented a cheque for $173,733.00, as funds raised from IGA’s Community Chest program from around Australia. Congratulations IGA Australia for your generosity! The event was attended by a number of special guests including Kate Gill, Emma Kearney and Brendan Krummel, as well as guest comedian, Simon Palomares, and Master of Ceremonies, Nick Butler.

George Altman, Bob Daniels, Harry Reis

Unfortunately, there is no IT security system which has proven to be 100% cyber proof. So to complement a supermarket’s IT risk management is cyber insurance. Cyber insurance will cover the cost of a ramson; it will pay for emergency forensic experts to investigate the hack and solve the problem. During the downtime, the insurance policy will also cover your loss of profits and pay for a public relations firm to assist with any reputational damage and to let customers know your store is open for business again. At Adroit we’re no strangers to the subject of cybercrime, and we will always be happy to share our knowledge with you. Talk to us about your cyber weak spots and ways we can help you protect your business and – if the worst happens – how we can help you with one of the growing number of cyber insurance policies that are available now in the market.

L to R: Fred Harrison, John Morris, Jamie Cameron, Mal Cameron & the SOAR Team.

INDUSTRY NEWS

SOUTH AUSTRALIA

Romeo’s Foodland — Rundle Mall Adelaide The most outstanding example of retailer ingenuity, innovation and investment is the recently opened Romeo’s Foodland Supermarket located in Rundle Mall in the heart of Adelaide. The Rundle Mall Precinct is the heart of South Australian retail, circulating the freshest of food, fashion, beauty and into the City of Adelaide.

store is nothing short of superb. Every detail has been considered to meet the needs and expectations of customers.

The longest and one of the busiest malls in Australia, Adelaide’s Rundle Mall attracts more than 400,000 visitors and locals each week. Home to more than 1,000 retailers and services which employ over 5,000 people, Rundle Mall is a busy hub of activity in Adelaide city seven days a week. More than 85% of tourists spend time discovering the enchanting labyrinth of the precinct that is a generous host to its 24 million annual guests.

Managed by long-serving Romeo’s store manager, Rob Coburn, this supermarket exudes quality and freshness. The store is on a corner, has two entrances and is 1,800 square metres in size. Sixty per cent of the floor space has been dedicated to fresh, tantalising food. Managing a workforce of 140 staff, Rob says that the focus in the store is on providing the highest quality customer service and delivering quality fresh foods in a warm and comfortable ambience.

Designed by Paul Romeo, to appeal to the most discerning food and grocery customer and developed over a more than 12 month period the Romeo’s Rundle Mall Foodland

The store has maximised energy efficiency by investing in the latest energy-saving equipment including slimline energy-efficient refrigeration with insulating

mga.asn.au | September 2019 | Edition 6

Romeo’s Rundle Mall Manager Rob Coburn.

blinds for produce, as well as LED lighting and much more throughout the store. Stocking approximately 24,000 SKUs all products have been meticulously selected to suit the demographics of the area. Customers include thousands of local office workers, residents

INDUSTRY NEWS

A comprehensive range of grocery, chilled and frozen products are stocked in 12 aisles of groceries, 20 freezer doors, 28 doors of dairy products and 22 doors of dips, small goods and cheeses. Amazing!

and tourists. Most customers are shopping for the same day, or almost immediate, consumption which is why the store is designed to replicate a marketplace ambience. There is an unambiguous focus on fresh foods in the store including; Sumo salads and soup bar, Emperor sushi bar, a bakery, patisserie, delicatessen, a select range of meats and a superb range of fresh fish. All this complements

a prominently located cheese room surrounded by an extensive range of local and imported cheeses. To enhance the ambience and marketplace feel there are four types of floor surfaces within the store. There is cobblestone giving it a unique market feel, classic tiles around the deli and fresh sections, polished concrete and timber flooring in the cafĂŠ.

Fast customer service at the checkout comes in 2 forms; either at 1 of 8 self-service checkouts or 1 of 8 staffed express checkouts. The store carries a wide range of gluten-free and continental products too. Congratulations to the Romeo family. This substantial store investment is a testimony to the long term view the Romeo family has of the grocery industry and will go a long way in future-proofing their business.

INDUSTRY NEWS

NATIONAL

Save on Merchant Banking Fees — Least Cost Routing Explained MGA members across Australia face constant pressure on margins. Given that payment costs can be significant, it’s not surprising that merchants – MGA members – are paying increasing attention to them. New least-cost routing functionality will help MGA members save on fees, but not all banks and payments service providers have enabled this service. We’ve done some homework to help you understand least-cost routing, the benefits, considerations and list of service providers offering the service in Australia. What is least-cost routing? Least-cost routing is where a merchant chooses to route a debit card transaction to the lowest cost network for that transaction, which in many cases will be the eftpos network. ‘Least-cost routing’ is sometimes also referred to as ‘tap and save’, ‘merchant choice routing’, ‘wave and save’, ‘lowestcost routing’, ‘low-cost routing’, ‘merchant routing’, or ‘smart routing.’ However, these terms are not always interchangeable because how service providers apply this functionality can vary. It is vital to understand the differences – read on as we explain this in more detail. Why does it matter? The merchant service fees charged by a payments service provider for accepting payments can vary according to the different payment methods used by a cardholder. Most debit cards issued in Australia (i.e. cards that draw funds from a bank account) are dual-network cards, i.e. support both an international network (Visa or Mastercard) and the domestic eftpos network. This means that debit card transactions can be routed through either of those networks. Typically, when a dual-network card is inserted into a point of sale terminal, cardholders determine how the transaction will be routed by selecting mga.asn.au | September 2019 | Edition 6

either CHQ or SAV for eftpos or the CR button for the international network. However, for a contactless or ‘tap-andgo’ transaction, the cardholder is not given that option, and, presently, the transaction is typically routed to the international network for processing. Data collected by the Reserve Bank of Australia (RBA) highlights that merchant service fees on eftpos cards are roughly half that of the fees on Visa and Mastercard debit cards. Because international network transactions are typically more expensive for merchants, merchants report that the shift from contact to contactless transactions has resulted in a significant increase in payment costs for debit transactions. Let’s unpack how least-cost routing can help you.

MGA MEMBER (MERCHANT) BENEFITS Can least-cost routing benefit my business? Typically, yes, but it depends upon how the payments service provider has enabled least-cost routing, if your business is on a pricing plan that has differential pricing for eftpos and international network transactions, and the average transaction size (value). Will every business save? Savings will depend on your card mix, transaction volume, transaction size, industry, and pricing plan. It’s crucial that you ask your service provider how they have implemented least-cost routing, i.e. are eligible transactions individually routed to the lowest cost network, or does enabling

this functionality mean that ALL eligible transactions are routed to the eftpos network? This can have implications when Visa and Mastercard merchant service fees are ad valorem (i.e. a percentage of the transaction value) while eftpos merchant service fees are based per transaction. For example, if the Visa and Mastercard merchant service fee is 1%, and the eftpos merchant service fee is $0.15 per transaction, then at an average $50 transaction size, the average merchant service fee if all eligible transactions are routed to Visa and Mastercard would be $0.50, compared to an eftpos fee of $0.15. In the scenario above, if instead all eligible transactions are routed to eftpos, there would be lower merchant service fees for each transaction above $15, but a higher fee for transactions below $15. Some service providers that enable all eligible transactions to be routed to the eftpos network label this functionality as ‘merchant choice routing.’ However, this differs from when a service provider has enabled true ‘least-cost routing’ where a merchant would save regardless of the transaction size as each individual transaction would be routed to the lowest cost network for that transaction. In this example, that would mean any transactions above $15 would be routed to eftpos while any transactions equal to or below $15 would be routed to Visa or Mastercard. One bank, Tyro, has reported that eligible merchants have saved on average over 8% on total merchant service fees since the launch of the functionality, while some Tyro merchants have saved on average around 20-30% on routed transactions. For merchants already adding a surcharge to pass on the costs, the cost-saving

INDUSTRY NEWS should be passed on to the cardholder as the surcharge should be in line with the cost of acceptance for the network to which the transactions are routed.

CONSIDERATIONS Are there any transaction amount limits for least-cost routing? The amounts will depend on your provider. Some will only allow least-cost routing when transactions are above a certain dollar amount while others will apply it to all eligible transactions. Debit contactless transactions above $1,000 may sometimes continue to be processed via the original network due to the common daily purchase limit on eftpos transactions with some banks. Will least-cost routing also affect credit card payments? No. In Australia, the concept of routing choice only applies to debit card transactions (and not to credit card transactions). It also only applies to dual-network cards and cards that only support one network will always be routed over that network. Will my customers realise the difference with least-cost routing? The customer experience at the point of sale remains the same, with the customer tapping or inserting their card to pay as they do today. Your customers may notice that the transactions processed through eftpos are automatically deducted from their account, whereas the transactions processed through Visa and Mastercard can be reported as pending for a longer duration. Are protections against fraud and disputed transactions the same for eftpos, Visa and Mastercard? Chargeback rights are the same for eftpos, Visa and Mastercard debit authorised transactions. These cover the full range of losses required by the ePayments Code, such as fraud, unauthorised transactions, goods not received and equipment malfunction or processing errors. There is also no difference between the security of eftpos and Visa and Mastercard debit transactions though different daily limits may apply.

Should my customers be able to choose how their transactions are processed? They still can. Customers that want to select the network through which their transactions are processed are still able to choose by inserting their card. What do I need to disclose to my customers? No specific regulations are covering what needs to be disclosed to customers. However, your service provider may have specific requirements. How can I enable least-cost routing? Here is a list of payments service providers offering least-cost routing in Australia as at August 2019: Under the new routing services offered by the banks, merchants can elect to route contactless debit transactions through the eftpos network rather than platforms operated by Visa and Mastercard. The fee savings can be significant for merchants whose average transaction value exceeds $25. Merchants electing to direct highvalue contactless transactions to the eftpos network are likely to incur lower fees because Visa and Mastercard generally charge more to process highvalue debit payments. National Australia Bank (NAB): In a move likely to deliver big fee savings to thousands of retailers, National Australia Bank has begun to roll out merchant choice routing of contactless debit transactions. Its service will only be made available to merchants who subscribe to specific plans and who use a mobile Ingenico terminal. Rather than bundling least cost routing with a standard merchant service plan, NAB requires the business customer to request the service. ANZ Bank: Merchant Choice Routing – an optional feature which, when activated, means that all contactless transactions made when cardholders present multinetwork debit cards are processed through the domestic eftpos network and not through the international card network (i.e. Visa or Mastercard). CBA: An optional feature which, when enabled, allows contactless payments made with multi-network debit cards to be processed through either the domestic eftpos network or the multinetwork debit card schemes. Merchants

can choose different routing options and use a combination for multi-network debit cards. For example, a merchant can set a transaction threshold limit to route payments to their chosen primary network (eftpos, Mastercard or Visa) and transactions up to and above the threshold limit will be processed by their secondary network of choice. St.George Bank: Merchant Choice Routing – an optional feature which, when activated, means that all contactless transactions made when cardholders present multi-network debit cards are processed through the domestic eftpos network and not through the international card network (i.e. Visa or Mastercard). Suncorp: Wave & Save – an optional feature which, when activated, uses least-cost routing to process contactless transactions made when cardholders present multi-network debit cards. Based on the merchant’s pricing plan, the Wave & Save transaction limit is set to a default position where transaction fees are the same via both the eftpos and international network (i.e. Visa or Mastercard). Scheme debit card contactless transactions valued over the transaction limit are routed through the eftpos network. Any scheme debit card contactless transaction valued equal to or under the transaction limit continue to be processed via the international card network and the credit card transaction fee charged. Tyro: Tap & Save – an optional feature which, when activated, means that all contactless eligible transactions made when cardholders present multi-network debit cards are processed through the domestic eftpos network and not through the international card network (i.e. Visa or Mastercard). A new pricing category to reflect the new fees for Tap & Save transactions will apply. Westpac: Merchant Choice Routing – an optional feature which, when activated, means that all contactless transactions made when cardholders present multinetwork debit cards are processed through the domestic eftpos network and not through the international card network (i.e. Visa or Mastercard). Source: Merchant Pricing Hub - info@ paymentsconsulting.com

LIQUOR NEWS

NATIONAL

ALM driving engagement with Chinese stakeholders In an ever-changing independent retailing landscape, more and more Packaged Liquor outlets throughout Australia are being purchased by overseas families, many of whom are from China and find our industry sector an attractive way of investing and establishing themselves in their new country of choice.

Supplier representatives also faced having to overcome the language, cultural and industry awareness issues when endeavouring to do business with their new industry partners. Although for some time now, individual companies tried to overcome the hurdles put before them on their own, it was clear that a collaborative approach between industry stakeholders was required.

Thomas Day – Asia Link.

Like all new migrants throughout Australia’s history, they need to overcome language barriers, cultural differences, new and complicated business practises and within the liquor industry, some very stringent compliance and enforcement laws.

Subsequently, ALM engaged Asialink to deliver an Executive China Program for members of the sales and marketing team as well as industry stakeholders. The program was presented on Thursday 8 August at the Box Hill RSL to over eighty key industry stakeholders, and included:

• How to improve their understanding of cultural

intelligence and its importance in a Chinese context.

Will He – ALM.

With over two hundred and sixty Chinese customers in Victoria alone, ALM sought a pathway to try and gain a better understanding of the Chinese business culture, how to engage more effectively with Chinese small business owners and to lift compliance standards.

• Build awareness of the Chinese mindset and frameworks for understanding Chinese culture with a focus on Chinese Australians and new migrants.

• Understand the Chinese business environment and dynamics.

conducting and managing meetings.

• Build the skill and capabilities to deal more effectively with Chinese stakeholders.

Members can view the full presentation by logging onto the MGA member website www.mga.asn.au

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Will He and Luke Matthews – ALM.

• Practice Chinese business etiquette, including

LEGAL AND HR

NATIONAL

Annualised salaries — understanding the crux of the matter Annualised salaries are a common practice in the retail industries, especially for higher-end roles. They’re defined as an annual arrangement, where an employee is paid a fixed amount every week, fortnight, triweekly or monthly. The amount tends to remain consistent and is a proportion of the yearly salary. There are numerous benefits of this arrangement, including assisting the business’ payroll, predictability, budgeting and financial management. Additionally, it avoids having to calculate complex pay rates in accordance with a Modern Award or Enterprise Bargaining Agreement for each pay period. Although advantageous, many pitfalls must be appropriately considered, to mitigate future risk of wage claims. A common misconception in the industry that an annual salary figure is discretionary and left to the business to decide or to even avoid having to pay penalties and overtime rates. Unfortunately, that is inaccurate and does not reflect the current legal position. An annual salary figure must manually project all entitlements and payments that an employee will be receiving during a financial year. It must ensure that the employee is not receiving less or is underpaid for the duration of the contract period. In essence, an amount that they would have received under the standard terms of the Modern Award or Enterprise Bargaining Agreement. An example annual salary under the General Retail Industry Award 2010 must include the following per week:

• ordinary hours • after hours (after 6pm) • overtime • weekends • public holidays

LEGAL & HR ADVICE TAILORED TO YOUR BUSINESS NEEDS

• any applicable allowances • leave loading • superannuation • any additional payment over the Modern Award to ensure that the annual salary remains consistent or to cover additional hours worked beyond the agreement.

Like standard contracts of employment, it must stipulate the expected hours of work, the status of employment, classification, probationary period, applicable policies, and breaks, amongst other things. Annual salary arrangements should first be discussed with the employee in question before an agreement is drawn up. Once the details are determined, MGA can assist you in drafting the annual salary contract and advise you about the appropriate classification and applicable rate of pay for your employee. MGA can also help you to review current annual salary arrangements in place. After every financial year, the annual salary figure must be cross-referenced with the Modern Award or Enterprise Bargaining Agreement and National Employment Standards, to ensure that the remuneration and entitlements are at the same or higher level than the applicable instrument. For further advice tailored to your needs, please do not hesitate to contact the Legal and Human Resources team on 1800 888 479 (option 1).

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.

INDUSTRY NEWS

Welcome to tomorrow — it actually arrived a few years ago MGA members are all too aware of the technology-based disruption taking place all around us. The power of social media, the simplicity of apps downloaded onto to your smartphones – innovation is increasing exponentially with the rate of change doubling every couple of years. You will be interacting and transacting with your customers very differently in the coming years as algorithmdriven solutions take over from the, at times, “clunky” way we do things today. Our challenge is to try and stay ahead and lead the changes within the retail sector with our primary point of difference being our amazing customer service and support for the local communities we trade in. Here are some thoughts and examples of disruption for you to consider that we, at times, already take for granted. How can you strengthen your relationship with your customers by introducing technology-driven solutions in your business?

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• Vehicle repair shops will disappear.

• A petrol/diesel engine has 20,000 individual parts. An electrical motor has 20. Electric cars are sold with lifetime guarantees and repaired only by dealers. It takes only 10 minutes to remove and replace an electric motor.

• Faulty electric motors are not

repaired in the dealership but are sent to a regional repair shop that repairs them with robots.

• Your electric motor malfunction

• Smart major vehicle

manufacturers have already designated money to start building new plants that only build electric cars.

• Coal industries will go away.

Petrol/oil companies will go away. Drilling for oil will stop. So, say goodbye to OPEC! The Middle East is in trouble.

• Homes will produce and store

more electrical energy during the day, and then they use and will sell it back to the grid. The grid stores it and dispenses it to industries that are high electricity users. Has anybody seen the Tesla roof?

light goes on, so you drive up to what looks like a car wash, and your car is towed through while you have a cup of coffee and out comes your car with a new electric motor! Fuel pumps will go away.

• A baby of today will only see

• Street corners will have meters

• In 1998, Kodak had 170,000

that dispense electricity. Companies will install electrical recharging stations; in fact, they’ve already started in the developed world.

personal cars in museums. The FUTURE is approaching faster than most of us can handle. employees and sold 85% of all photo paper worldwide. Within just a few years, their business model disappeared, and they went bankrupt. Who would have thought of that ever happening?

INDUSTRY NEWS

• What happened to Kodak and Polaroid will occur in many industries in the next 5-10 years, and most people don’t see it coming.

• Did you think in 1998 that three

years later, you would never take pictures on film again? With today’s smartphones, who even has a camera these days?

• Yet digital cameras were

invented in 1975. The first ones only had 10,000 pixels but followed Moore’s law. So as with all exponential technologies, it was a disappointment for a time, before it became way superior and became mainstream in only a few short years.

• It will now happen again - but

much faster - with Artificial Intelligence, health, autonomous and electric cars, education, 3D printing, agriculture and jobs.

• Forget the book, “Future

Shock”, welcome to the 4th Industrial Revolution.

• Software has disrupted, and

will continue to disrupt, most traditional industries in the next 5-10 years.

• UBER is just a software tool; they don’t own any cars and are now the biggest taxi company in the world! Ask any taxi driver if they saw that coming.

• Airbnb is now the biggest hotel

company in the world, although they don’t own any properties. Ask Hilton Hotels if they saw that coming.

• Artificial Intelligence: Computers become exponentially better in understanding the world. This year, a computer beat the best Go-player in the world, ten years earlier than expected.

• In the USA, young lawyers already don’t get jobs. Because of IBM’s Watson, you can get legal advice (so far for right now, the basic stuff) within seconds, with 90% accuracy compared with 70% accuracy when done by humans. So, if you study law, stop

immediately. There will be 90% fewer lawyers in the future (what a thought!), and only omniscient specialists will remain.

• Facebook now has a pattern

recognition software that can recognize faces better than humans. In 2030, computers will become more intelligent than humans.

• Autonomous cars: In 2018 the

first self-driving cars are already here. In the next two years, the entire industry will start to be disrupted. You won’t want to own a car anymore as you will call a car with your phone, it will show up at your location and drive you to your destination.

• You will not need to park it you will only pay for the driven distance, and you can be productive while driving. The very young children of today will never get a driver’s license and will never own a car

• This will change our cities

because we will need 90-95% fewer cars. We can transform former parking spaces into green parks.

• About 1.2 million people die

each year in car accidents worldwide, including distracted or drunk driving. We now have one accident every 60,000 miles; with autonomous driving that will drop to 1 accident in 9.5 million Kilometres. That will save a million lives plus worldwide each year.

• Most traditional car companies

will doubtless become bankrupt. They will try the evolutionary approach and just build a better car, while tech companies (Tesla, Apple, Google) will go the revolutionary approach and build a computer on wheels.

• Look at what Volvo is doing

right now. No more internal combustion engines in their vehicles starting this year with the 2019 models, using all-electric or hybrid only, with the intent of phasing out hybrid models.

• Many engineers* from

Volkswagen and Audi are completely terrified of Tesla, and they should be. Look at all the companies offering all-electric vehicles. That was unheard of, only a few years ago.

• Insurance companies will have

massive trouble because, without accidents, costs will become cheaper. Their car insurance business model will disappear.

• Real estate will change.

Because if you can work while you commute, people will abandon their towers to move far away to more beautiful affordable neighbourhoods.

• Electric cars will become

mainstream about 2030. Cities will be less noisy because all new cars will run on electricity.

• Cities will have much cleaner air as well.

• Electricity will become incredibly cheap and clean.

• Solar production has been on

an exponential curve for 30 years, but you can now see the burgeoning impact - and it’s just getting ramped up.

• Fossil energy companies are

desperately trying to limit access to the grid to prevent competition from home solar installations, but that simply cannot continue - technology will take care of that strategy.

• Health: The Tricorder X price will

be announced this year. There are companies who will build a medical device (called the “Tricorder” from Star Trek) that works with your phone, which takes your retina scan, your blood sample and you breath into it. It then analyses 54 biomarkers that will identify nearly any disease. There are dozens of phone apps out there right now for health purposes.

Plenty of room for thought! WELCOME TO TOMORROW – it actually arrived a few years ago.

INDUSTRY NEWS

WESTERN AUSTRALIA

Launch of Container Deposit Scheme After engaging with WA Minister for the Environment, Stephen Dawson and his team in early 2118, MGA has been an active member of the WA Container Deposit Scheme taskforce since its inception in June 2018. MGA WA Director Ross Anile and Jos de Bruin have represented WA members and have advocated for no red tape and additional cost burdens for members, and fairness when allocating retail sites for container collection points. At a recent MGA WA members meeting held at the South of Perth Yacht Club, Tim Cusack, CEO of Western Australia Return, Recycle, Renew Limited (WARRRL) indicated that there were several options that MGA’s members could consider to be involved with the WA CDS. MGA suggests to all members to visit the WARRRL website. At the very least, members should register their interest in becoming either a collection point for containers or forming a relationship with a collection point to facilitate refund vouchers being in the name of your stores. Here is a recent media release from Minister Dawson Western Australian Environment Minister Stephen Dawson recently announced Western Australia’s new container deposit scheme, Containers for Change, will launch on Tuesday, June 2, 2020, following the WA Day long weekend.

From June 2, 2020, Western Australians will be able to return and recycle their eligible containers at any Containers for Change refund point to receive a 10 cents refund per container. “We’re determined to get it right. Our June 2 start date will give the local charities and businesses that will operate refund points and be providers in the scheme enough time to organise the infrastructure and staffing they need to make their participation a success from day one,” said Environment Minister Stephen Dawson. More than 170 full-time or flexible refund points will be open for business on June 2 next year, with 229 refund points to open by the end of the scheme’s first year. An array of refund points will be available – from over-the-counter depots providing on-the-spot refunds, to ‘Bag Drops’ that provide the convenience of a ‘drop and go’ facility with refunds deposited into customers’ nominated bank accounts once their containers are counted. Mobile refund points and reverse vending machines will also be in operation.

Containers for Change, run by not-for-profit WA Return Recycle Renew Ltd, will be the driving force behind changing consumer behaviours when it comes to recycling beverage containers. Beverage containers currently account for 44 per cent of all litter by volume in WA. Over the next 20 years, WA’s Containers for Change container deposit scheme is estimated to result in:

• 706 million fewer beverage containers being littered

• 6.6 billion fewer beverage containers sent to landfill

• 5.9 billion more containers being recycled.

Containers for Change will also help create 500 jobs across the State, with a key objective of the scheme to support the employment of people with disability and the longterm unemployed. “Containers for Change is a great win for WA’s environment, for jobs, for our local community and sporting groups always looking for new ways to raise much-needed funds, and for our kids to learn about the benefits of recycling,” said Dawson. More information on the WA Container Deposit Scheme can be found here: https:// www.der.wa.gov.au/ourwork/programs/111-wacontainer-deposit-scheme.

Trial reverse vending machine at Stockland bull Creek, Perth.

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INDUSTRY NEWS

SOUTH AUSTRALIA

Further plastic bag bans After considerable consultation with the South Australian community, the South Australian Government will be seeking to introduce a state-wide ban on single-use plastics. Draft legislation should be out for consultation as early as late-2019 and introduced to Parliament in 2020. MGA will respond to any consultation opportunities to ensure all MGA members in SA are not burdened with additional costs or red tape. Plastic straws, cutlery and stirrers have been identified to be phasedout immediately following the commencement of the legislation as these items have readily available alternatives. Take-away expanded polystyrene cups, food and beverage containers and all products made of

oxo-degradable plastic will be phased out after 12 months. Further consideration will be made regarding take-away coffee cups, plastic bags and other take-away food service items. Plastic-free precincts will be piloted throughout metropolitan Adelaide and will engage an expert organisation to develop, implement and manage the program. The program aims to identify opportunities and challenges associated with transitioning away from single-use plastic products and will focus on:

• Plastic drinking straws

• Single-use coffee cups • Plastic beverage containers • Plastic bags (all types) • Take-away plastic serving ware (cutlery etc.)

• Take-away polystyrene food packaging The South Australian Government is also establishing a stakeholder taskforce to inform the development of the legislation. This working group consists of representatives of selected business, industry, local government and interest groups to ensure impacts are addressed, and sufficient transition time is given.

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LIQUOR NEWS

VICTORIA

Porter’s first pilot store opens in Melbourne ALM’s Porter’s Liquor retail brand has opened its first pilot store in the Melbourne suburb of Moonee Ponds, marking the start of an aggressive 100 store national roll-out plan since the acquisition of Porter’s by ALM in late 2016. The Porter’s brand has been designed to tap into the liquor premiumisation trend, making luxury liquor more accessible to Australian’s. According to Porter’s Moonee Ponds store owner and manager Natalie Barrington, the location of the Melbourne store was crucial to its success because of the premiumisation of Porter’s Liquor offer. The Moonee Ponds store location puts it in the heart of an evolving demographic which includes an established middle class as well as a growing base of young professional Millennials, both of which are well suited to Porter’s offer. The range consists of many Australian craft spirits, including a variety of gins, malt whiskeys and beers, with fine sparkling, white and red wines from key international regions of France, Italy, Germany and Spain, as well as Australia’s premium regional benchmark wines. Natalie stressed that customer interaction and experience is crucial to success and that it needed to

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have a premium, ‘expert’ feel to it. Incorporated into the design of the new store layout was no staff standing behind service counters, in fact, staff stand side-by-side with the customer when transacting a sale so that they can remain fully engaged. Natalie also emphasised that digital technology was an essential part of enhancing the customer experience with in-store tablets are accessible to customers to help them find what they are looking for. Once the customer arrives, they can tap on their food preference or favourite wine variety, which triggers flashing lights on digital shelf tags highlighting appropriate product matches to their needs. The digital price tag system fully integrates with the point of sale system allowing for real-time stock control and shelf replenishment alerts for staff. The system can also target individual customers with offers based on their purchase history and preferences. The store will be offering wine, spirit and beer tasting as well as education

sessions, and for the time-poor shopper, the convenience of home delivery within 30 minutes through their Tipple partnership. Natalie says, “Our goal here at Porter’s is to be completely customer focused and build our range and services according to their needs, and I think we’ve achieved just that.”

MGA WELCOMES NEW MEMBER ― PORTER’S LIQUOR MOONEE PONDS MGA Liquor welcomes the new Porter’s Liquor store as a member. The Barrington family have been using their entrepreneurial skills and vision building successful independent packaged liquor stores in Melbourne for over 20 years, this new Porter’s Liquor store in Moonee Ponds reflects the design and style of their other benchmark store Liquid HQ in South Yarra. MGA congratulates Natalie on her new venture and wish you and your staff every success with the new venture.

INDUSTRY NEWS

NATIONAL

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

Golp grows into a pet treat powerhouse to sign a distribution contract with a supermarket chain.

Progress from a start-up into an international brand has taught Golp founder Jane Templeton the power of perseverance. From its launch in 2011, when Golp’s natural dog treats were sold through vets and pet stores, Templeton has built a powerhouse brand that’s now stocked in supermarkets around Australia and exported to Taiwan and Canada. The next step is expansion into China. Progressing from bright idea to international enterprise has not been without challenges. Four years ago, a contract manufacturer pulled out of a production deal as Golp was about

“There we were, ready to score our biggest deal ever and about to fall flat on our faces!” Templeton says. Not to be undone, Templeton and her husband raced to rent temporary premises, obtain food processing permits and churn out the order themselves. The blow turned out to be a blessing in disguise: Golp’s enduring partnership with a new manufacturer has helped the company become a bona fide mass-market brand. Welcome to life in business, as Templeton puts it. Disaster strikes, you deal with it, and sooner or later you realise there’s another opportunity preparing to unfold. NAB has been alongside Golp since its inception, beginning with an overdraft facility to manage cash flow variations. However, Templeton says the bank’s

support has been about more than money. As Golp has grown, she’s made extensive use of NAB’s support and insights network. “There are so many avenues to tap into,” Templeton says. “If you reach out, people are willing to help your business grow.” To find similar stories of progress visit nab.com.au/businessprogress

LEGAL AND HR

NATIONAL

Understanding overtime provisions Overtime can be a tricky field to navigate, particularly in the current version of the General Retail Industry Award 2010 (“the Award”), which does not always make it easy to determine when and how overtime rates of pay apply to employees, whether permanent or casual. It is, however, essential to get this aspect of pay correct, as a failure to do so could leave your business open to a host of wage claims, even where underpayment or nonpayment of overtime has been inadvertent.

Note that in the case of retailers whose trading hours extend beyond 9:00pm on any weekday, or beyond 6:00pm on a Saturday or Sunday, the above span of hours automatically extends to 11:00pm on all days of the week.

Here, we aim to summarise the most common situations where an obligation to pay workers overtime is triggered. Please note that there may be other instances where overtime rates will apply, not mentioned in this article.

CASUAL EMPLOYEES

PERMANENT EMPLOYEES (FULL-TIME, PARTTIME AND SALARY EMPLOYEES) Overtime rates of pay will apply in the following circumstances: Hours worked in excess of the ordinary hours of work For full-time employees, any hours worked above 38 ordinary hours per week will attract overtime rates of pay. Note that this provision refers to ordinary hours. If an employee has completed more than 38 hours per week, but not all of these were ordinary hours (for example, they worked early mornings or late nights where penalty rates apply), then only the ordinary hours will count towards the count of 38 hours. For part-time employees, overtime rates of pay will apply to any hours worked outside of the agreed hours, as detailed in a contract of employment. If you have part-time workers who do not have a contract of employment yet, we strongly urge you to implement a contract which clearly sets out what those agreed hours are. These agreed hours can be averaged over a fortnightly or monthly roster cycle. Hours worked outside the span of hours prescribed in the Award The span of hours prescribed in the Award are:

• Monday to Friday: 7:00am – 9:00pm • Saturday: 7:00am – 6:00pm • Sunday: 9:00am – 6:00pm

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For casual employees, overtime rates of pay get triggered in the following circumstances. 1. Hours above 38 ordinary hours per week (which may be averaged over a fortnightly or monthly roster cycle if applicable) 2. Hours worked outside the span of hours prescribed in the Award, as described above 3. Hours worked in excess of 11 hours on any one day of the week, or over 9 hours on any other day of the week

RATES OF PAY FOR OVERTIME WORK Generally speaking, there are two main different overtime rates for employees who work overtime. For permanent employees, the rates of pay for overtime hours worked are time and a half (150% of ordinary rate of pay) for the first 3 hours of overtime and double-time (200% of ordinary rate of pay) for overtime hours in excess of 3 hours. For casual employees, the rates of pay for overtime hours worked get calculated on the casual loaded rate of pay – so they are 175% of the ordinary rate of pay (inclusive of 25% casual loading) for the first 3 hours of overtime, and 225% for overtime hours in excess of 3 hours. Overtime is calculated daily, which means that the higher rate will only be applicable where an employee has worked overtime in excess of 3 hours on any given day, rather than throughout the week or roster cycle. However, any overtime worked on a Sunday is automatically paid at the higher rate of overtime.

C PR O O NS M U O M TI ER O N

LEGAL AND HR

On public holidays, any overtime worked is paid at double time and a half (250% of the ordinary rate of pay) for permanent employees and 275% (inclusive of 25% casual loading) for casual employees.

TIME OFF IN LIEU OF OVERTIME The Award also provides for arrangements whereby employees can receive time off from work instead of payment, in exchange for the overtime work they have completed. However, there are specific rules that these arrangements must adhere to.

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In summary, employers must take care to ensure they are fully across overtime rules to avoid any potential wage claims or penalties for incorrect payment of wages to employees. Members are encouraged to seek further advice from MGA’s Legal & HR team for further clarification or assistance with calculations. Contact the team direct on 1800 888 479 (option 1).

LEGAL & HR ADVICE TAILORED TO YOUR SPECIFIC BUSINESS NEEDS 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 unique situation. 1800 888 479 (option 1) or (03) 9824 4111.

CREATED BETWEEN

& THE DEEP BLUE SEA

TRAINING

NATIONAL

The cost of NOT training your employees What are the implications of not training your employees and how does the concept of Return on Investment (ROI) merge with training? Untrained employees, from the very first day of employment, will have a lack of an organisation’s policies and procedures as well as knowledge. In effect, this will impact an organisation’s resources, including:

• Equipment (usage, damages, maintenance etc.) • Time (wastage, inefficiencies) • Stock (misuse, returns, damages, wastage) • Labour (costs, inefficiencies, gaps in knowledge, skill) In a broad sense, untrained employees affect customer interaction and retention, and the result affects your organisation’s bottom line. Untrained Employees Cost Businesses Money Untrained employees who feel that they, underutilised, undertrained, not prepared – are more prone to become frustrated with their job role. These employees will also be less loyal to the organisation they are working for. In turn, this affects their operational productivity, as they will make more mistakes and fail to meet standards. Employees who do not feel valued have a general sense that their job does not matter. This attitude then affects the surrounding team and can create conflict. It can also impact the customer and sales. It is at this point that an employee either leaves or needs to be managed for poor performance. Recruitment Costs It may seem simple solution to replace that employee, however hiring someone can cost up to 30% of the job’s salary. Some statistics that you should be aware of, include:

• It takes an average of 68 days to fill in a vacant

position. This becomes a cost to labour and affects the surrounding team on different levels including emotionally, physically and mentally

mga.asn.au | September 2019 | Edition 6

• Average of 50-60 applicants per job. It costs an

organisation as they, or a recruitment company, need to filter to find the best fit and go through the interview process. It is a costly exercise financially and in time.

• The average cost per hire is around $5000. Average costs of hiring a graduate, production, trades, customer services or administration employee include indirect costs of hiring such as:

»» time lost to fill the position »» advertising »» interviewing »» onboarding Low Rates of Production Production rates become low when employees don’t know how to perform their jobs confidently and efficiently. To save time, employers often delegate the task of training to senior employees who have been on the job longer. The senior employees are also required to complete their own work as well as train the new employee; however, these employees don’t get extra time to do so. Delegating training in this manner results in rushed, insufficient training with gaps, and the new employee is not confident with the organisation itself. The flip side is that the senior employee is left feeling stressed and rushed within their position. Unskilled employees could spend considerable time seeking help to perform their jobs or perform tasks to the best of their understanding. Coupled with their inexperience, this could lead to the possibility of errors and needing to repeat or correct work. Compliance One of the primary reasons that organisations invest in training is to avoid litigation and fines.

TRAINING Federal and state laws require training on many topics such as occupational health and safety, harassment, discrimination, and ethics, just to name a few. Without the knowledge and skills required to use equipment and supplies safely, untrained employees are more susceptible to injuries. There is potential for the injury to be fatal in work environments that contain heavy-duty machinery and hazardous materials. As an organisation, it is not enough to have established procedures and protocols for activities that involve potential safety risks. Employees must receive training on the appropriate procedures and how and when to use them to support the businesses policies and procedures. Ineffective Staff Management It is not just the operational employees that require training. Managers who aren’t adequately trained affect the entire organisation. A manager who is new to their role needs training on how to manage people, delegating work, resolving conflicts between employees, motivating staff, and adapting to changes within the organisation. Employees look to management to solve these issues and become disillusioned in the organisation when management is lacking. Their work ethic is then affected, and this impacts the productivity and attitude of the employee. ROI of Training Many organisations, small or large, see training as an expense and not as an investment. Return On Investment calculations of training aims to answer two broadly similar questions. Are trainees gaining new knowledge and skills so that they can increase efficiency and reduce costs in the workplace? Can we measure the cost of this training against the benefits to both the individuals and the organisation? ROI can be used to justify the expense of a training course, compare one training course to another and help establish training as a valued component within an organisation.

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It doesn’t need to be a complicated and arduous exercise using calculators and formulas. Employers can do a simple task such as reviewing to following:

• Expenses • Sales • Customer feedback • Employee feedback • Incident and near-miss reports • Performance Reviews • Cost of Goods Sold • Wastage • Stakeholders feedback By looking at these metrics, your organisation can identify areas to focus on training employees. Once the training program has been implemented, conduct a review of the same metrics to see if the numbers or feedback have improved. If the numbers increase, you’ve achieved a positive ROI on your training investment! Employees are your resource Correcting mistakes takes time and money. Proper and planned training ensures employees are knowledgeable and skilful within their job role, reducing the time for the employees to find the right information as they work, use equipment and stock correctly, and offer customers the right advice if required. Employers investing in safety training that effectively educates their workforce to work safely in their environment protects the organisation from any lawsuits, WorkCover costs and associated fees Management often assumes that providing training will lead to employees moving. However, with proper training, employees feel like they are valued and are happier in their jobs leading to more long-serving employees, whilst also helping to reduce redundancy rates and recruiting costs. An organisation is only as good as its employees, and those employees are really only as good as the resources put into them.

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

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MAKERS’ PROJE

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NATIONAL

LIQUOR NEWS

TWE lines up $215m Wolf Blass expansion Treasury Wine Estates has revealed its plans to invest in expanding its Wolf Blass Bilyara winery site in South Australia.

capacity, drive production efficiency and increase wine storage facilities at the Barossa Valley site. The investment includes an additional production line, processing infrastructure and the construction of additional barrel storage facilities,” the statement said.

TWE said the investment is part of its continuing “premiumisation strategy”, which also includes buying production and vineyard assets in the Bordeaux region of France, which will allow the company to expand its French countryof-origin portfolio. In a recent statement to the ASX, TWE said it plans to spend up to $215m over the next two years to support the continued growth of its Australian Luxury portfolio and increase winemaking

“Total capital investment is expected to be between $150m and $180m and will be incurred over the course of FY20 and FY21. “In addition, one-off costs of approximately $35m are expected to be incurred in FY20.”

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After 25 years, we’re proud to remain 100% Australian owned and operated, exclusively supporting independent retailers and grocers in local communities, just like yours. Ph: 03 9764 0517 or visit us online at jcsqualityfoods.com.au

LIQUOR NEWS

NATIONAL

New courses make it easier for interstate workers to start work in the NSW liquor industry Liquor & Gaming NSW is making it faster, easier and cheaper for interstate workers to begin working in the NSW liquor industry. Qualified interstate workers only need to complete the new online NSW Responsible Service of Alcohol (RSA) bridging course to gain an NSW RSA competency.

• An RSA certificate or national RSA statement of

attainment or refresher certification from the Australian Capital Territory issued within the previous three years.

The course takes only 90 minutes to complete and costs $85. It focuses on the NSW liquor laws, industry best practice and guidance on how to sell, serve and supply alcohol safely and responsibly in NSW.

The bridging course is ideal for liquor industry workers living in border towns as it offers more employment options, and it also makes it easier for NSW licensees to recruit appropriately trained staff.

Who can take the course? To be eligible to take the course, interstate workers must have:

What if the interstate worker is a licensee? Interstate workers looking to become licensees, approved managers or club secretaries in NSW can skip the NSW bridging course and simply complete Licensee Training to gain NSW RSA and Licensee Training competencies.

• A national RSA statement of attainment from

Queensland, Northern Territory, South Australia, Western Australia or Tasmania issued within the last five years, or

• An RSA certificate or refresher certificate from Victoria issued within the previous three years.

For more information on the courses and how to apply visit www.liquorandgaming.nsw.gov.au.

South Australian Stage 3 Liquor Licensing Reforms operational November 2019 Stage 3 of the reforms is expected to commence in November and will comprise the remaining reforms that have not yet commenced. These include the new licence classes, the new application process and the latest community interest test. The new multi-languageThe draft Liquor Licensing (General) (Liquor Review) Variation Regulations 2019 have been developed to support

mga.asn.au | September 2019 | Edition 6

Stage 3 and include:

• exempting funeral businesses from the need to hold a liquor licence to serve liquor during funeral services

• exempting secondary schools that have liquor making courses from the need to hold a liquor licence

• authorising cooking schools that

are the holders of a restaurant and catering licence to sell liquor at any time for consumption on the premises to persons undertaking formal instruction in cooking conducted by or on behalf of the licensee

• prescribing a list of premises

that cannot be the subject of a packaged liquor sales licence unless exceptional circumstances exist

• introducing a new short-term licence class.

The Liquor Licence Variation Regulations Section 7AB – packaged liquor licence – prescribed premises item (b) premises ordinarily known as or advertised as a supermarket, convenience store or delicatessen cannot be the subject of a packaged liquor sales licence unless exceptional circumstances exist.

Lion hosts MGA Liquor Committee meeting in new Melbourne office After over 30 years at their Victorian Malvern headquarters, Lion has relocated to their new headquarters in Camberwell. Lion spokesperson Aaron Scalzo said, “Unlike the Malvern office which was spread out over two levels the new site being on one level allows the departments to engage more readily with each other to exchange information and ideas”. The new headquarters also has a new barrel room complete with a full bar facility allowing for industry brand and marketing campaign launches. Your MGA Liquor Committee was privileged to experience the new

surroundings firsthand, with Lion generously hosting the August meeting. The meeting agenda covered many pressing issues, including:

• NSW – The continuance of the CDS Victorian Cross Border trading and maintaining the eighty-kilometre retailer subsidy assistance scheme

• VIC – Banning of single-use plastic bags from 1 November 2019

• SA – Introduction of Stage 3 of the liquor licensing reform act

• NT – Implications to members with

the government passing of the Liquor Bill 2019

• TAS – The introduction of a CDS by 2023

• QLD – Entrepreneurial Pipeline Project (EPP)

• WA – Pending introduction of the CDS. Members are encouraged to contact the committee on any issues they would like to have addressed by calling free call 1800 888 479 or emailing george.kovits@ mga.asn.au.

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TIMBER NEWS

NATIONAL

The Ultimate Renewable “Houses grow on trees” An important timber industry awareness campaign that provides a universal, positive communications message for the sector to share. The Ultimate Renewable™ is all about reframing forestry in the eyes of the public, by making and continually reinforcing the association between wood and the word ‘renewable’. Developed by Forest and Wood Products Australia (FWPA), the campaign aims to share the environmental advantages of forestry and wood products, as consumers increasingly look for alternatives to unsustainable materials.

The campaign offers a fresh new narrative around forestry that most of the public are unaware of – that wood is a continually renewable resource and that trees in Australia’s commercial forests are replanted. The unique ability to store carbon is another factor that means wood and any products made from it are an environmentally friendly option across the entire supply chain. Award-winning architect and host of Grand Designs Australia, Peter Maddison, is the face of the $1.8m media campaign that will cover all major and regional Australian cities across multiple channels directing audiences to Planet Ark’s Make it Wood website https://makeitwood.org/

The campaign aims to encourage the community to embrace forest and wood products across the supply chain. We encourage industry members to access The Ultimate Renewable™ branding by completing registering. MGA TMA is fully behind this award-winning industry initiative and will be working to ensure engagement and promotion as necessary through the network. About Forest and Wood Products Australia Forest and Wood Products Australia (FWPA) is a not-for-profit industry services company funded by the Federal Government, member levies and research grants. FWPA collaborates with government and industry stakeholders to determine strategy, invest in effective and relevant R&D and deliver programs designed to grow the market for forest and wood products, increase productivity and profitability across the value chain and ensure positive environmental and social outcomes.

INDUSTRY NEWS

NATIONAL

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Wolf Blass Makers’ Project The Wolf Blass Makers’ Project, is a brand new range of wines that celebrate the artistry and winemaking craft that has been at the heart of Wolf Blass wines since 1966. Introducing six new delicious and refreshing varietals across two tiers, this range is underpinned by our ability to continually create great wines with exceptional quality, consistency and flavour, while celebrating the processes used by our skilled winemakers. There are three key techniques the Wolf Blass winemakers followed for Makers’ Project: Free Run Wine – this process is when the grapes are crushed into the press and all the juice that can freely drain from the skins to the tank is referred to as free run. This produces wines that are balanced in acidity with high levels of purity in fruit aroma and flavour, such as our Pink Pinot Grigio and Rose.

mga.asn.au | September 2019 | Edition 6

Partial Whole Berry Fermentation – this is when the winemakers ferment a higher portion of whole berries, which leads to more full fruits and robust flavours with gentle complexities and spice characteristics. Try our Pinot Three or Reserve Shiraz to see this in practice. Early Press – pressing is the process that separates red wine from its skins. Flavour and structure are extracted during this process and by pressing early, before the completion of fermentation, a softer wine with fresh, bright fruit characters is

created. Our Shiraz Grenache and Pinot Noir are the perfect example of this. A recipient of more than 10,000 medals and trophies at national and international wine shows, Wolf Blass is known for creating great tasting wines that suit all occasions and are enjoyed by people the world over. The new Wolf Blass Makers’ Project is no different.

YOU HAVE AForTASTE FOR WELL-CRAFTED WINE. more information on these new wines, visit or contact WEwolfblass.com HAVE A PASSION FOR IT. zoe.tostevin@tweglobal.com or 03 8533 3822.

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LEGAL AND HR

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What to do if an employee has exhausted their sick leave?

STOP BURGLARS IN SECONDS!

THE AFT

– Suitable for supermarkets and kiosks

Fog se your

A PROT dense the pri

If your employees are regularly taking sick days, this could have a negative effect on productivity at work.

Bre

If you find yourself in this situation, there are several actions you can take to resolve this issue. After Firstly, it is essential to understand what an employee’s entitlement to sick leave is under BURGLARS the Fair Work Act 2009.

P ECONDS!

health or domestic violence, or a lack of enjoyment in their job. Explain to your employee the impact of the excessive sick leave on their performance at work, and the importance of consistent attendance.

THE PERFECT PROTECTION Based on the outcome of the meeting, consider offering flexible AFTER CLOSING TIME

working arrangements, or asking The Fair Work Act provides that for theirmeans authority to write to their full-time employees are entitled to Fog security the immediate protection of to request further medical 10 days paid sick leave per year, and yourdoctor valuables! information on their capacity part-time employees are entitled to A PROTECT Fog Cannon will ﬁll a room with a blanket of security work.fog, rendering the intruder blind, it works on leave on a pro-rata basis according denseat the principle that you cannot steal what you cannot see. to the hours worked. All employees It is important to remember that an are also entitled to 2 days unpaid employee will still be able to make carer’s leave (including casuals). Break-in 20 sec. 10 - 45 min. an unfair dismissal claim if their total Keep time the intruders for up to one ample time for awayout from work is hour less- than An employer is entitled to ask for police or security services to arrive. three months a year. If an employee medical evidence in support of any who has a disability is dismissed, application for sick leave, even if the dismissal could also be in the employee takes less than 1-day RM IS ACTIVATED contravention of discrimination laws. paid leave. If the employee refuses to provide medical evidence (e.g. If excessive sick leave persists longer medical certificate, statutory than three months, you might have declaration), you may refuse the a reasonable cause to terminate employees request to take paid but always seek advice from an sick leave. MGA Industrial Relations Lawyer before taking action that might To prevent excessive absenteeism, lead to termination. have a policy regarding taking sick leave and the circumstances where For more information about a medical certificate or statutory employee sick leave entitlements, declaration is required. The policy URED IN SECONDS please contact the Legal and HR should let employees know what the team on 1800 888 479 (option 1). consequences are of not providing This video shows a real burglary in a kiosk. After only 3 security fog is white, dense and dry and for seconds the burglar is out again. Watch this and many other d disorientation, you can add a strobefor light and a medical evidence, example, videos on protectglobal.com. For more information about refusing paid sick leave. employee sick leave entitlements, please contact our Legal and HR Talk with your employee to find team directly on 1800 888 479 out the reason for their excessive (option 1). sick leave. Often it is a result of an underlying issue, such as mental

ble for supermarkets and kiosks

▲

mga.asn.au | September 2019 | Edition 6

Keep t police

ALARM IS ACTIVATED

BE SAFE – SLEEP WELL WITH SECURITY FOG Cash, tobacco products and liquor are what burglars look for most when they break in to grocery stores. Most often they shatter shop windows or work heavy iron doors open, making a break-in a costly matter for the shop owner. Fortunately grocery stores in Denmark and abroad have long been aware that fog protection is an efﬁcient way to prevent SECURED IN SECONDS heavy losses, disappointed customers, insecure staff, higher insurance premiums and the heavy cost of replacing facades. PROTECT security fog is white, dense and dry and for increased disorientation, you can add a strobe light and a siren.

FOG CANNON FOR YOUR SAFETY: • Protection of cash, tobacco products • No room is too small or too big • Choose between more models • Harmless fog and leaves no damage • A modest investment and low operating costs • Quick return on investment • Up to 5 years warranty

For further details please contact: 1800 200 999 or visit protectfogcannon.com.au

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