Issue
07 OCTOBER 2019
The 2019 MGA Annual Report is inside!
YOUR INDUSTRY NEWS PROVIDED BY MGA INDEPENDENT RETAILERS
3
OUR MISSION The mission of MGA Independent Retailers is to deliver the best possible industry specific business support services to independent grocery, liquor, hardware and associate store members.
MGA NATIONAL SUPPORT OFFICE Suite 5, 1 Milton Parade, Malvern, Victoria, 3144 P: 03 9824 4111 • F: 03 9824 4022 admin@mga.asn.au • www.mga.asn.au Freecall: 1800 888 479
RETAILER DIRECTORS Debbie Smith (President): Queensland Grant Hinchcliffe (Vice President): Tasmania Graeme Gough: New South Wales Michael Daly: Victoria Ross Anile: Western Australia Carmel Goldsmith: New South Wales Chris dos Santos: South Australia Lincoln Wymer: Victoria Jeff Harper: Victoria
MGA CHIEF EXECUTIVE OFFICER Jos de Bruin 03 9824 4111 E: jos.debruin@mga.asn.au
CORPORATE PARTNERSHIP & MEDIA SALES Mark Paladino 0417 264 331 E: mark.paladino@mga.asn.au
EDITORIAL & PRODUCTION Genevieve Laidlaw E: genevievel@mga.asn.au
FOLLOW US ONLINE www.facebook.com/ MGAIndependentRetailers www.linkedin.com/company/ mga-independent-retailers www.twitter.com/ MasterGrocers
Contents 5
CEO welcome
6
Vale Rod Allen
8
Update on the Grocery Unit Pricing Code Review
8
MGA Workplace Relations support services
9
MGA embarks upon its Industrial Relations Reform Project
10 Drakes’ state of the art distribution centre opening 12 Kaufland battle plan to fight ‘hostility’ in Aussie market 14 Stand-down or Close-down? 15 Proposed Christmas Eve Public Holiday from 6:00pm 15 Entrepreneurial Pipeline Project (EPP) – Local QLD Packaged Liquor 16 Types of leave available to employees 19 WA Planning and Zoning 20 And so, it’s Christmas! 23 Dan Murphy’s big box application rejected 24 Surveillance in your business – are you compliant? 27 Least cost routing saves MGA member $90,000 over 12 months! 28 Benefits of e-learning to your business 31 MGA TMA timber industry golf day 33 Why we need Industrial Relations reform 35 2019 ANNUAL REPORT »» Financial Year 2019
»» Benefits of membership »» President’s report »» CEO’s report »» 2018 — 2019 Highlights »» Financial Report »» MGA Corporate Partners »» Legal and HR Team »» MGA Industry Training challenged by disruption »» Advocacy MGA »» Federal »» State »» MGA attends trade mission to “start-up” nation Israel »» Communication »» Industry Community »» MGA National Liquor Committee »» MGA Employment Law Support Services »» Industry Engagement »» MGA TMA – timber and hardware
MGA Corporate Partners DIAMOND
PLATINUM
GOLD
SILVER
BRONZE
ASSOCIATE
WAREHOUSE AND BRAND PARTNERS tasmanian independent retailers
CEO REPORT
5
CEO Welcome It is with great sadness that I share with all members, the news that Rod Allen, MGA’s recent past President of 16 years and MGA Board Director for almost 20 years, finally succumbed to a long and courageous battle with illness. Rod passed away at 10.28pm on Thursday 19 September 2019. Our heartfelt sympathy and condolences are extended to all Rod’s family and friends. Rod’s service to our industry sector – family and privately-owned supermarkets, liquor and hardware stores – was outstanding. This outstanding contribution to our industry sector was recognised at the recent IGA Hall of Fame Awards in Queensland, in which Rod Allen (together with business partner Ron Corrigan) was inducted into the Hall of Fame, to the immense joy of over 1500 retailers, their families and industry stakeholders and friends who were present at this event. Rod has left a legacy that will always remain with us, as a retailer, businessman, colleague, loyal friend and industry custodian. We have included a tribute article about Rod Allen in this Annual Report edition of the magazine. This edition is dedicated to the end of financial year 2019 Annual Report. MGA’s Board of Directors and staff have had another enormous year supporting and servicing our members. When members ask us about the volume of work we do at any given time, I respond by saying that at times it’s like “we are putting fingers in the dyke” and managing every leak in order of priority and importance. There have been many matters arising around the states, territories and federal government levels. The state governments are seeking consultation and submissions from MGA, MGA Liquor and MGA TMA on a regular basis when considering issues which is testimony to the trusting and credible relationships MGA has built over the years. I wish I could say this was the case with German conglomerate, Kaufland, the 4th largest retailer in the world which is seeking to undermine and severely compromise community and local council planning visions around Australia, by going straight to the state governments of the day and requesting these governments “call in” their “out of centre” development projects and request to rezone cheap industrial and commercial land to retail zoning. Not only is this grossly unfair but it is disingenuous. Family and private businesses are the backbone and engine room of the economy and they follow the rules. They have no options
and ask no favours. The have built their businesses over the years following the rules. Should these businesses not have been considered before making these unfair decisions? MGA asks, “How can our members businesses be grossly compromised by the Victorian, SA and Qld governments which are allowing Kaufland to trade in mostly out of centre developments?” They will not drive ONE incremental sale and pro rata do not employ the quantum of staff the independent sector does. They will simply supplant sales from one retailer to themselves. MGA will continue to lobby strongly on behalf of members to do what is right.
MGA is currently embarking upon an Industrial Relations Reform Project to help gather facts, evidence and data toward the next National Wage Review. MGA is currently embarking upon an Industrial Relations Reform Project to help gather facts, evidence and data toward the next National Wage Review to minimise any wage increases awarded by the FWC and to also develop IR reform policies to take to the Federal Attorney-General, Christian Porter, in Canberra. Members please note that unfair dismissals are on the rise. These matters are time consuming and costly to deal with. Members are strongly encouraged to call MGA for support, service and advice before dismissing staff. This will save valuable time and resources. Finally, we ask members to forward any stories, photos and community news that we can publish in this magazine and share with members around Australia. No story is unimportant so please send in any news regarding refurbishments, rebuilds and renovations to MGA. Until next edition, good selling! Jos de Bruin CEO MGA Independent Retailers
6
INDUSTRY NEWS
Vale Rod Allen On September 19, MGA’s long-serving former Director of 20 years and MGA Board President of 16 years, finally succumbed to his long battle with a serious illness, with his wife, Linda, by his side.
Together with his partner Ron Corrigan, Rod owned and operated his supermarket in Mount Martha, Victoria for over 35 years. Rod and Ron employed over 100 staff in a licensed supermarket business that seemed to be under constant refurbishment to meet the everincreasing needs of local consumers. Rod and Ron endeared themselves to the local community and customers by providing a mouthwatering fresh food offer, matching any chain store with price and value and by being involved in all the local community events. Outside of his business, Rod became a “crusader” for family and private businesses in a very competitive and challenging business environment. He understood the challenges deeply that these businesses faced every day and was driven to assist them in helping “Make Life Easier”. As President of the Master Grocers Association of Victoria (MGAV) in 2005, and following the requests from fellow retailers in other states for MGA to provide essential IR services for them, Rod, together with a totally committed Board of Directors, led the MGAV, with 360 members in 2006, into forming
an energised, well-resourced, national organisation known today, as Master Grocers Australia (MGA). MGA today has over 2600 members comprising solely of family and privately-owned member retail and timber businesses. Rod believed in MGA providing a very loud voice for the “quiet” and “forgotten” businesspeople which was soon recognised by other like-minded organisations and their members, wishing to join MGA. These industry associations which were absorbed by MGA include NSW and ACT Retailer Traders Association, the SA Retailers Association, the Liquor Stores Association of Victoria, the Queensland Retail Traders and Shopkeepers Association, WA Independent Retailers and the Timber Merchants Association of Victoria. MGA members comprise of family and privately-owned supermarket, liquor and hardware owners and operators, with the Timber Merchants Association of Victoria, most recently being absorbed by MGA to form MGA TMA – Timber Merchants Australia.
initiative by working with MGA TMA President Peter Alexander to bring family and privately-owned timber and hardware businesses into the MGA family of businesses. Rod was a selfless, compassionate man as well as being a terrific listener. Rod never complained – never, and always saw issues and problems as opportunities. Rod was the consummate people person – he understood the powerful value of a “positive people-driven workplace culture” – people working together to achieve high performance – the same ethic and values he adopted when he was a high achieving footballer playing over 200 games with SA AFL football club Woodville, in the SANFL. A meticulous professional with an eye for detail, his wordsmithing was impeccable as I witnessed every month when he would return the draft board meeting minutes back to me with grammar and spelling errors gratuitously amended and fixed. A man with great patience and an incredible temperament – I have never seen Rod lose his temper or show any form of anxiousness.
Rod and MGA’s Board again led this
mga.asn.au | October 2019 | Edition 7
Rod Allen with current MGA President Debbie Smith, Nick Xenophon and Jos deBruin.
Andrew Boromeo and Rod Allen at the 2018 MGA industry golf day.
INDUSTRY NEWS
Rod Allen with the MGA Board in Western Australia in 2018.
Rod was welcoming, inviting, nonjudgmental and helped make people around him feel important and valued. When meeting with members on the road in the various states, he would say to store owners or managers “come on let’s walk the store together”, see if we can find some opportunities to improve. Rod was always willing to share insights about his business. Rod always found a way to connect with people and was skilful in avoiding conflict, no matter the seriousness. Good working and personal relationships were paramount to Rod. He would go out of his way to earn the trust and mutual respect of our members, industry leaders and state and federal regulators and politicians. Rod and I, over the past 14 years, would have travelled close to 300,000 air km around Australia and overseas together, visiting members and representing our amazing industry sector. We spent 1000s of hours together over the years talking not only about the many issues and matters our members would face and what we could do about them, but our personal lives too. After Rod’s first couple of visits to Parliament House, Canberra he soon realised that walking 7 or 8km a day in the house, as we would go from Senator meetings on one side of the house, through the Ministerial section to the House of Representatives members meetings on the other side of the house, was not agreeing with him, even though he was very fit. So never to be defeated he embarked upon a fitness regime, to
Ritchies CEO Fred Harrison and Rod Allen.
7
Rod Allen with former Prime Minister Tony Abbot and Jos de Bruin.
help with improving his walking fitness and stamina.
encourage and harass Bruce to drive for this competition law reform.
Rod has been an enduring and tireless Board President. Since Rod became President, we have had seven Prime Ministers, including Prime Minister Scott Morrison, who we met when he was Treasurer.
Over the years Rod MC’d many events including the MGA GALA Ball, MGA GALA Golf Days, as well as numerous MGA industry business breakfasts and lunches. Rod was always fully prepared and professional.
Rod would strongly advocate for state and federal governments to “walk the talk” when they said, “small business is the backbone and the engine room of the economy”.
Rod has led by example and left an incredible legacy for us all to follow. Rod will be forever remembered for his warm and engaging personality and the many fantastic MGA achievements for his industry and fellow retailers.
MGA, through Rod, MGA’s Board and staff had many wins over the years.
REST IN PEACE ROD.
One of our biggest wins for the independent sector, with the fantastic help and support of so many members and industry leaders, was the petrol shopper docket enforceable undertaking to cap Coles and Woolworths’ petroleum discounts to 4 cents a litre which is still in place today. Competition law reform was also a tremendous achievement. After 10 years of advocating for Competition Law Reform and again with the help and assistance of so many members and industry stakeholders, we were able convince the Turnbull government to legislate strengthening section 46 of the Competition and Consumer Act by including the effects test, which addresses the misuse of market power by the duopoly, Coles and Woolworths. Former Federal Minister for Small Business – the best ever – Bruce Billson, labelled Rod and I (MGA) as stalking horses – never too far away to
Rod Allen talking Smash & Grab raids on A Current Affair.
Rod Allen lobbying against Kaufland in 2018.
Rod Allen ALM General Manager Bernard Hughes.
8
INDUSTRY NEWS
NATIONAL
Update on the Grocery Unit Pricing Code Review and deferral of sunsetting date Members and industry stakeholders may be aware from Federal Treasury’s discussion paper and consultation process earlier this year, the Grocery Unit Pricing Code was due to sunset on 1 October 2019.
MGA Workplace Relations support services
MGA thanks all contributions to the Review, conducted by the Treasury Consumer Policy Unit, so far and will keep members and industry stakeholders informed of any further news.
EW
To this end, steps have been taken to ensure that the Code does not lapse on 1 October 2019. In particular, the AttorneyGeneral, Christian Porter, has recently registered an instrument giving effect to a 24-month deferral of sunsetting. Hence, the sunsetting date in the Code has been amended to 1 October 2021. MGA has advocated strongly for the status quo to remain and not to include any further items, outside of grocery items (i.e. General Merchandise and hardware items) to the unit Pricing Code of Conduct.
The Grocery Unit Pricing Code Review is still ongoing at this time, such that the nature of any changes that may be made to the Code are yet to be determined. As Treasury has previously indicated to our industry sector and stakeholders during consultations, any proposal for substantive changes to the Code would likely require publishing a Regulatory Impact Statement and undertaking associated stakeholder consultation.
N
While the Review is still in process, industry and stakeholder feedback has been supportive of the continuation of the Code.
MGA is aware of a business trading as Employsure which has aggressively approached various MGA members around Australia to enter into an expensive 3, 4 or 5-year contract to provide IR services. When members have stated they are a member of MGA and already receive these services, MGA, through its members, has been made aware that this business has been making disparaging remarks toward MGA in their bid to generate new business. Members are advised that Employsure is before the ACCC court system at present charged with unconscionable and misleading conduct. Members are encouraged to contact MGA, a not-for-profit member organisation, for all their IR and employment law needs, as this is just one of the comprehensive support services MGA provides for the price of a membership fee. For more detailed advice about your specific needs, contact the Legal and HR team direct on 1800 888 479 (option 1).
mga.asn.au | October 2019 | Edition 7
For more information contact your De Bortoli representative or visit debortoli.com.au
9
INDUSTRY NEWS
MGA embarks upon its Industrial Relations Reform Project
“ PENALTIES FAIRER
LESS
XITY E L P COM
“
“
“AW
SIMP LER
LE STAB S
E WAG
”
ARD S
MGA will be engaging a highly regarded research company and a senior lecturer in Economics at a university for an independent economic report based upon members research findings.
Be involved and have your voice heard and counted.
HELP US TO HELP YOU AND LET’S SAVE OUR BUSINESSES!
WHY ARE WE DOING THIS? To strengthen MGA’s National Wage Review submission to the Fair Work Commission and ultimately to save members on wage costs and to drive for greater staffing efficiencies. So, in conclusion, MGA’s two objectives for this IR Reform Project are: 1. Gather facts, evidence and data for the Fair Work Commission Annual Wage Review to minimise any future FWC annual wage increases; and
”
“FLEXIBILITY ” MORE
MGA, together with a dedicated industry committee comprising retailers and industry stakeholders, has embarked upon an all-important IR reform project. On August 1, MGA, together with an industry committee, commenced developing a research and survey questionnaire to be presented to MGA members around Australia to seek their assistance to gather real facts, evidence and data to ascertain the impacts of 3 consecutive wages increases on instore employment in 2017, 2018 & 2019.
”
”
Policies to drive for IR reform to present to the Federal AttorneyGeneral, Christian Porter. We ask members to assist MGA with this all-important project. Our industry sector generates $5.6b in wages each year plus $500m in superannuation payments plus $75m in annual leave loading. Every % point we can save means a great deal to members ability to employing additional staff. Contact the MGA Legal and HR team to discuss being involved and how you can help on 1800 888 479 (option 1).
2. Identify barriers and impediments to employment with a view of developing MGA IR
For MGA to provide a strong and compelling case to the 2020 FWC Wages Panel, we require our members to participate in the survey by providing facts, evidence and data around the impacts of increasing wage costs. We urge you to participate and fill out the survey, if you haven’t already.
10
INDUSTRY NEWS
SOUTH AUSTRALIA
Drakes’ state of the art distribution centre opening On Thursday, September 26, the Drake family opened their new distribution warehouse in South Australia’s northern suburbs. It was officially opened by the Hon Simon Birmingham, Federal Minister for Trade, Tourism and Investment and Glenn Docherty, City of Playford Mayor. The impressive 17-hectare / 104,000sqm site boasts the latest of local and global technology to help reduce running costs and ensure the best systems and controls are in place to manage the operation. Birmingham said, “Today stands as a celebration of investment and innovation of entrepreneurship and employment. It’s a demonstration of how a small business can grow by investing in those that matter most, their customer, their people, local communities, charities and suppliers”. The facility is equivalent to:
• 3 MCG’s • 40 Olympic sized swimming pools It holds 23,000 individual lines with storage for over 12,500 pallets of stock,
to supply all of the SA Drakes stores, with separate zones for confectionary, dairy and freezer lines. It is equipped with sixty bays, with room for 50 semitrailers, and can load 30 outbound semis per day. The Drakes DC will provide over 250 jobs, an on-site gym, a fully functioning kitchen and canteen, staff will benefit from one free meal every day.
supported the Drakes stores for many years, builders, local tradespeople, Dyers transport, a truly family business, and the Drakes management team and support staff, who have all contributed strongly to this day. Roger also thanked his boss, the customer, “Without them, this day could not be possible”.
The Drakes’ story began back in 1974 in the family’s first business known as Jack and Jill’s, employing four staff. Fourty five years later, after ongoing investment, development, planning, training, passion and hard work, Drakes now employs more than 6,000 people and with over 60 stores in both QLD and SA, 40 of which are located in SA. Roger Drake, Managing Director of Drakes Supermarkets, thanked his wonderful staff, key suppliers, both local and international, especially the local SA producers that have
City of Playford Mayor, Glenn Docherty.
Roger Drake.
mga.asn.au | October 2019 | Edition 7
Federal Minister for Trade, Tourism and Investment, Simon Birmingham.
INDUSTRY NEWS
11
Australia. A single lithium battery can run 24/7 for ten years, without needing to be replaced. This will see reductions in ongoing running costs. Drakes will look to implement a cost to serve model for future business, which will ensure they have an ongoing competitive offer.
It is one the most advanced logistics and distribution centres of its kind, costing $125m. The project delivered over 300 local jobs, with tradesman, planners, construction and Drakes staff all being closely involved. This facility has been built for the future, so opportunities for other retailers and businesses can be accommodated on the same site in the future. The focus of the project has been on energy efficiency and future-proofing
the site and reducing costs to be able to offer lower pricing to the customer. Roger said that this now completes the operation, with both the fruit and veg and meat distribution centres, rounding out the offer. A $15m high-tech warehouse picking system with the first robotic arm of its type in production and only the second robotic piece picking machine Dematic will deploy globally. This latest technology is carried through to the lithium pad forklifts by Crown, which are the first to be used in
Glenn Sutcliffe, Logistics Manager at Drakes Supermarkets, said “Our new facility will be the most advanced independent distribution and logistics centre in South Australia and is a key part of our group’s vertical integration strategy within the supermarket sector”. “As a business committed to continued growth, our goal is to build a new DC that allows us to offer the best level of service to our South Australian shoppers, as well as set the scene for our plan to expand nationally,” said Mr Sutcliffe.
12
INDUSTRY NEWS
NATIONAL
Kaufland battle plan to fight ‘hostility’ in Aussie market The “parochial views of many Australians” may be a stumbling block in the Kaufland battle plan to succeed in the local grocery sector. In a planning submission, the German supermarket giant said: “It is unfortunate that some members of the community have reacted to the entrant of a foreign company into the Australian ¬retail market with not only fear but open hostility.” The planning and location for some of the Victorian stores, such as one in Mornington, has attracted criticism from local community groups, rival retailers and planning experts. “Submissions like those of the Mount Eliza Community Alli¬ance illustrate one of the greatest difficulties that Kaufland will have in entering the market — the parochial views of many Australians,’’ the submission said. “It demonstrates how important it will be for Kaufland to provide a point of difference to Woolworths and Coles and to work hard to win over the hearts and minds of Australian shoppers.” Fred Harrison, owner of 47 Ritchies supermarkets in Victoria noted in his submission: “If a large oversized supermarket comes in, we will lose our high street, and it will become a wasteland: shops will close. “People will have to drive to the big supermarkets and forgo their ease of walkability. The local shopping strip will not be viable anymore.”
mga.asn.au | October 2019 | Edition 7
Proposed Queensland site in Toowoomba.
FIRST IMPRESSIONS CRUCIAL Tactics in the Kaufland battle plan are a customer loyalty program, lower grocery prices and local job creation. “[Kaufland] will provide choice, competition and downward pressure on prices for Australian consumers,” it said. “In entering a new country — particularly one that is well served by entrenched operators with a loyal customer base — Kaufland Australia is cognisant of the fact that first impressions are crucial to its success,” the submission says. “It must convince the Australian consumer that it is more than just ‘another operator’ but that it presents a true point of difference and provides for the very best supermarket retailing experience possible at the cheapest price. “To achieve this means taking an uncompromising approach to customer comfort and store efficiency.” Kaufland is eager to take a slice of Australia’s $90billion grocery sector, which offers high margins and a lack of diversity, as it is dominated by just two major players. “Kaufland’s investigations into whether Australia repre¬sented a suitable expansion ¬opportunity concluded that the existing operators within the Australian retail environment benefit from a duopolistic market dominated by two major players (with a third operator gaining market share) and experience comparably high-profit margins. Kaufland concluded that there was scope to enter the market by providing a point of difference.
“In order to deliver on that customer experience and in acknow¬ledgement of the shortcomings of the established operators identified above, Kaufland Australia seeks to deliver the best of both worlds — a full-service supermarket stocked with local, regional and international products at discount pricing, in a comfortable and convenient environment.”
FIRST KAUFLAND PUB PLANNED FOR QUEENSLAND Kaufland recently submitted an application to Toowoomba Regional Council to build the first Kaufland hotel and hypermarket in Queensland. The development application notes it will comprise a “shopping centre including supermarket, speciality shops, food and drink outlet and a hotel”. The pub will be situated on the hypermarket site in a stand-alone location with provision for 80 car spaces. The application noted it would also have a limited range of associated speciality retail tenancies, a food and drink outlet and “a hotel use associated with an integrated grocery, food, hospitality and liquor offering”. The development will operate between 6am and 10pm, seven days per week. The inclusion of a pub is a result of Queensland liquor laws stipulating that to obtain a liquor licence for a bottle shop, the owner must already hold a commercial hotel licence for a pub within 10km. Source: Alana House
INDUSTRY NEWS
NATIONAL
Mitchelton is back with a 5-star winery rating
Established in 1969, this year Mitchelton celebrates 50 years since the first vine plantings at our Nagambie Estate by entrepreneur Ross Shelmerdine and industry stalwart, Colin Preece. Now a family owned business, there has been exciting development over the years, putting their region, wines and hospitality destination on the map. Under the helm of Chief Winemaker Andrew Santarossa, Mitchelton’s regional winemaking is also in good hands, cleverly combining tradition with progression and refinement. The recent release of the 2020 Halliday Wine Companion saw 277 wineries (9.8%) awarded a 5-star rating, defined as being an outstanding winery capable of producing wines of very high quality and did so this year. Mitchelton was one of these. Five wines were awarded 95 points and above including the inaugural release of the luxury wine 2016 Toolleen Single Vineyard Heathcote Shiraz. The contemporary varietal wines from the Preece collection also performed strongly with the Cabernet Sauvignon and Shiraz rated 92 and 91 points respectively. “It brings an enormous sense of pride for our team to be recognized as a 5-star winery. These ratings help us stand out from the crowd and for a small but rapidly growing wine business, it instils confidence amongst our domestic and export customers and tourism partners in the quality, regional varietal wines we are crafting here at Mitchelton.” said Chief Winemaker, Andrew Santarossa. Mitchelton is well and truly back! Mitchelton – Proudly family owned 470 Mitchellstown Road, Nagambie, Victoria (03) 5736 2222 | mitchelton.com.au
13
14
LEGAL AND HR
NATIONAL
Stand-down or Close-down? When a business temporarily shuts down the store, payment of wages may still be required during the period. This depends on whether the period is a ‘stand down’ or a ‘close-down’. STAND DOWN A ‘stand down’ is specified under the Fair Work Act 2009, and occurs when there is no useful work an employee can undertake as a result of either:
• industrial action (including refusal by employee to attend or perform work);
• a breakdown of machinery
or equipment, if you cannot reasonably be held responsible; or
• a stoppage of work for any cause
for which you cannot reasonably be held responsible.
A stand down only covers circumstances where it was outside of the employer’s control. It does not include slow periods where there is not enough work. You may choose to include a standdown provision in your contracts of employment or EBA, in which case the Fair Work Act stand-down
provisions will not apply. The benefit of including a stand-down provision in an agreement, is that you can specify the circumstances in which a stand-down can occur. For example, an employee can be stood down due to loss of power or renovation work. The agreement can also specify the consultation procedure for authorising a stand-down, or the notice conditions that must be complied with. The only requirement is that the employee cannot be usefully employed during that period. During a stand down, employees do not need to be paid. However, you may consider allowing employees to:
• work from home or another location; or
• take a period of paid annual leave.
CLOSE-DOWN A close-down is when a business shuts down their store during slow periods,
such as Christmas and New Year. Certain awards, including the General Retail Award 2010, allow you to direct an employee to take annual leave during a close-down period, by giving at least four weeks’ notice. If an employee does not have enough accrued annual leave, you can ask an employee to take:
• annual leave in advance; or • unpaid leave. However, an employee cannot be forced to take annual leave in advance or unpaid leave. If an employee does not agree to either, they will need be paid at the ordinary rate of pay during the close-down period. The key difference between a closedown period and a stand-down, is that during a stand down, an employee does not have to be paid.
INDUSTRY NEWS
15
QUEENSLAND
Proposed Christmas Eve Public Holiday from 6:00pm The MGAQ committee met on August 12 to discuss the Palaszczuk Government’s Christmas Eve Public Holiday from 6:00pm proposal. The MGAQ Committee discussed the matter at length and prepared for a meeting with the Minister for Industrial Relations Hon Grace Grace. A number of scenarios were discussed as to how this draconian initiative would affect MGA Qld members business, but in principle, the MGAQ Committee opposes the proposal. Minister Grace Grace invited MGA and other organisations to a meeting on August 28 at 1 William Street Brisbane for the purpose of being “consulted”. MGAQ Committee member, Terry Slaughter attended the meeting in person while Peter Piccone – IGA Cairns, Wayne Mason – FoodWorks, Debbie Smith – MGA Director and FoodWorks Toowoomba and Jos de Bruin
Entrepreneurial Pipeline Project (EPP) – Local QLD Packaged Liquor The MGAQ Committee has been working very hard toward enabling QLD members to stock and sell locally produced QLD wines, beers and spirits in their stores.
attended by teleconference. MGA and most, if not all, attendees were against this proposal. The proposal was baseless – with no facts, evidence or data to support other than the SDA forcing the hand of the Queensland Government. After this meeting, MGA made a detailed submission to the Ministers Regulatory Impact statement opposing the proposal, but in the event of it going ahead MGA suggested in the submission that the Public Holiday should not commence before 10:00pm on Christmas Eve. MGA’s response was submitted to the Queensland Industrial Relations department on September 2. MGA will notify Queensland members of any news that arises for this issue.
Win
A LI M ITED ED ITI O N M I N I CO O PER D E S I G N E D by G EO R G E R O S E
The EPP, which the MGAQ Committee is party to, is advancing and is endeavouring to make locally produced Queensland packaged beers, wines and spirits available to independent supermarket operators. There is still a long way to go. It’s ever so unfortunate that no QLD Government has dared to change the current unfair and draconian state liquor laws that disallow independents from selling packaged liquor unless they own a Hotel with a detached bottle License. Kaufland has proposed building a 7000 square metre plus development on the outskirts of (out of centre) Toowoomba plus a hotel next to it to be able to sell packaged liquor. It’s what big business can do that family and private businesses cannot. The MGAQ Committee will keep members informed of further progress.
Buy any two bottles from the Brown Brothers Prosecco range and enter at b row n b ro t h e r s w i n a m i n i . c o m . a u 50 runners up will receive a $10 0 gif t card . Visit brownbrotherswinamini.com.au for full T&C’s. Entries into the promotion open on Friday 01/11/2019 and close at 11:59pm AEDT on Sunday 08/12/2019
16
LEGAL AND HR
NATIONAL
Types of leave available to employees Managing employees in your business can, at times prove quite the challenge. To add to this, employees will at various times be unable or unwilling to work for certain periods of time. Classifying their corresponding leave accurately can add to this complexity. This article will aim to clarify and define employee leave, both paid and unpaid. The main types of leave that an employee may be entitled to are: 1. Annual leave 2. Personal leave 3. Compassionate leave 4. Parental leave 5. Long service leave These will apply to all employees, where they are covered by an Award such as the General Retail Industry Award 2010 or an enterprise or collective agreement. Employees who are covered by an agreement may also be entitled to other forms of leave such as ‘picnic days’ or additional amounts of the types of leave mentioned above.
ANNUAL LEAVE All permanent (full-time and parttime) employees are entitled to 4 weeks of paid annual leave per year. This leave accrues to the employee progressively throughout the year and ‘rolls over’ to the following years if it has not been exercised. For full-time employees, this is four weeks of 38 hours each (152 hours), per annum. For part-time employees, this is four weeks at their ordinary weekly hours. For example, if a part-time employee has agreed ordinary hours of 20 per week, they are entitled to 4 weeks of paid leave at 20 hours per week. Alternatively, part-time employees’ annual leave can be calculated by reference to hours instead of weeks. For
mga.asn.au | October 2019 | Edition 7
example, a part-time employee working 20 hours per week is entitled to 80 hours of paid leave, per annum. The General Retail Industry Award 2010 (GRA) provides for a 17.5% annual leave loading to be paid in addition to all annual leave payments made to employees. If your business is covered by a different Award, enterprise or collective agreement, please ensure you check whether it provides for any annual leave loading payments. Any unused annual leave in an employee’s ‘balance’ is payable to the employee (in addition to annual leave loading if it applies) once their employment comes to an end. Employees may take additional unpaid annual leave by mutual agreement with their employer.
PERSONAL LEAVE Personal leave is comprised of sick leave and carer’s leave. Sick leave can be exercised whenever an employee is unfit for work due to an illness or injury. Carer’s leave can be exercised whenever an employee needs time off work to care for an immediate family or household member who is sick or injured, or to deal with a family emergency. An immediate family member is a spouse (or former spouse), de facto partner (or former de facto partner), child, parent, grandparent, grandchild, sibling, or child, parent, grandparent, grandchild or sibling of the employee’s spouse or de facto partner (or former spouse or de facto
partner). This definition includes steprelations as well as adoptive relations. A household member is any person who lives with the employee. All employees, including casual employees, are entitled to 2 days unpaid carer’s leave. Employees get two days unpaid carer’s leave each time an immediate family member or household member of the employee needs care and support because of illness, injury or an unexpected emergency. Full-time and part-time employees can only get unpaid carer’s leave if they don’t have any paid sick / carer’s leave left. All permanent (full-time and part-time) employees are entitled to 10 days of paid personal leave per year. This leave also accrues to the employee progressively throughout the year and ‘rolls over’ to the following years if it has not been exercised. Part-time employees are entitled to 10 days of personal leave but are only paid for the number of hours that they would have worked on the day that they have taken off. Casual employees are not entitled to be paid for personal leave. Any unused personal leave in an employee’s ‘balance’ is not payable to the employee once their employment comes to an end. Employers may request evidence for personal leave and are not required to pay employees if this evidence is not provided.
LEGAL AND HR
COMPASSIONATE LEAVE All employees, regardless of status, are entitled to compassionate leave (also known as bereavement leave). The entitlement is to two days per occasion. Compassionate leave can be taken when a member of an employee’s immediate family or household (as defined above) either dies or contracts a life-threatening illness or injury. Compassionate leave does not accumulate (and cannot be cashed out) and it doesn’t come out of an employee’s other leave balances. Permanent employees are paid at their base pay rate for the ordinary hours they would have worked during the leave, and casual employees are not paid. Employers may request evidence for compassionate leave in the same way they do for personal leave, and are not required to pay employees if this evidence is not provided.
PARENTAL LEAVE All employees, regardless of status, are entitled to parental leave (also known as maternal or paternal leave), to be exercised when the employee or their spouse gives birth to a new child or adopts a child under the age of 16. The
entitlement is to 12 months of unpaid parental leave. They can also request an additional 12 months of leave.
born prematurely) they will still be entitled to take the leave as long as they provide notice when they can.
Employees may take parental leave if they will have responsibility for the care of the child, and have worked for the business for at least 12 months before the date or expected date of birth (if employee is pregnant), date of adoption, or when the leave starts (if the leave is taken after another person cares for the child or takes parental leave).
LONG SERVICE LEAVE
Casual employees are only eligible for unpaid parental leave if they have been working on a regular and systematic basis for at least 12 months and have a reasonable expectation of continuing work on that basis. Employees may also be entitled to paid parental leave through the Australian Government Paid Parental Leave Scheme. These payments would not affect, and are not intended to replace, the employee’s entitlement to unpaid parental leave. Employees who want to take unpaid parental leave need to give their employer notice that they are taking leave and confirm the dates, however, if an employee can’t provide the appropriate notice (eg. the baby is
17
Long service leave laws vary from state to state. These laws will determine how long an employee must work continuously to be eligible for long service leave, as well as how much long service leave they actually get. However, all states provide for employees’ entitlement to long service leave after a period of unbroken service of 5-7 years. In most cases, the leave is intended to be exercised, rather than cashed out. However, there are various regulations providing for the payout of long service leave entitlements, for example, when employment ends. MGA strongly suggests that members implement policies in store which clarify to employees how their various types of leave may be exercised (for example, providing notice to the business in advance of taking the leave, requiring evidence for personal leave etc.). As entitlements to leave can prove to be complex to navigate, members are encouraged to contact MGA’s Legal & HR team for more specific advice regarding leave entitlements on 1800 888 479.
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.
18
INDUSTRY NEWS
NATIONAL
mga.asn.au | October 2019 | Edition 7
INDUSTRY NEWS
WESTERN AUSTRALIA
WA Planning and Zoning MGA’s WA Director recently met with the WA Minister for Planning and Transport, Rita Saffioti and had the opportunity to discuss MGA WA Members concerns, regarding the inconsistent planning and zoning practices allowing big businesses such as Coles, Woolworths and ALDI to rezone cheap commercial and industrial land to retail zone, for their large and intrusive retail developments. MGA WA supermarket members for many years work diligently and plan to invest in their businesses for the long
term. The rules they know, are that any applications for retail developments ought to go through appropriate council processes according to the vision for sustainable planning and urban design which means large retail developments are to be situated in zoned Activity Centres where all businesses are able to compete on a level playing field. Ross was appreciative of the time he had with Minister Saffioti and the opportunity to share the views of all WA MGA members with her.
WA Planning Minister Rita Saffioti and MGA Director Ross Anile.
19
20
TRAINING
NATIONAL
And so, it’s Christmas! “Nooooooo” I hear you all wail! However, with Christmas being only less than two months away, and with the retail industry gearing up for a busy season, it is now time to get your staff “Christmas ready”.
By being prepared for recruiting and training, your staff will be “Christmas ready” and ensures your business is:
• Compliant; and • Profitable. Yes, training means investing time and money in the short term, but in the long run, it means that when the Christmas rush hits your business, your staff have the skills, knowledge and speed to meet the demands.
Alcohol Certificate. It may be a requirement as part of the recruitment process. As a licensee, it is your responsibility to ensure that your employees have up to date RSA certificates. In most states businesses and employees have one month’s grace if they have just started employment.
Let’s break it down a little further. By having “Christmas ready” staff for your business will be:
Be aware that each state has different requirements with RSA certificates – from Victoria requiring their state-issued certificate, to Queensland and other states requiring the unit of competency SITHFAB002 Responsible Service of Alcohol.
WHS COMPLIANT
MEET FOOD SAFETY STANDARDS
Ensure that all employees are comfortable and working efficiently with equipment, business policies and procedures and mitigate any Work Health Safety issues.
Food Safety for all staff should be addressed. As a business, food items will have high turnover and will be seasonal (and not just fresh items).
When you do not have enough team members or have a sizable number of new employees, this adds more pressure on the business. The result of this could include mistakes being made, your experienced team feeling stressed, overworked and fatigued – the list goes on.
By ensuring employees have respect and understanding of handling food and the implications if mishandled, you will guarantee the food items are being sold at their optimum. This, in turn, will ensure customer satisfaction.
OFFER EXCELLENT CUSTOMER SERVICE Having extra casual employees that are trained will offer your business the ability to meet extended hours of trade. Ensuring the business has enough employees on the roster, assists in covering any absence (planned and unplanned) and gives flexibility to the team as a whole and the business. By having your employees “Christmas Ready”, will ensure the business will meet your customers’ expectations with levels of service, speed and product knowledge accuracy. This will reflect in your sales and return customers.
RSA COMPLIANT As you all are aware, if you have any staff involved in the sale of liquor, they must have their Responsible Service of
mga.asn.au | October 2019 | Edition 7
There are several courses and training to assist your employees with this. From the non-accredited basic food handling course, right up to the Food Safety Supervisor course that is recognised in the majority of states. Any food business should have at least one food safety supervisor to lead, manage and follow the implemented Food Safety Plan.
TRAINING
HAVE STOCK CONTROL IN PLACE Stock damage and wastage costs the business. By ensuring employees are trained with handling stock including First in First Out, manual handling, stock ordering (in some cases) would decrease the overall cost of stock loss but increase your employee’s knowledge for safety and product knowledge (which increases customer satisfaction!).
RETAIN STAFF
By looking at these gaps or demands, you can plan what best suits your business needs and how to support your existing team. Plan for exits from your current casual base of new recruits; factor in this information with your recruitment drive. We’ve all been there when we hire someone that was awesome on paper and said the right things in the interview, but when it comes to the actual job or the team, it did not work.
Some statistics on staff retention are:
• 2017 businesses losing new employees • Within that statistic includes
employees who quit their jobs in their first year of employment, up from 34% from 2016.
• The fact is employees who leave in their first year leave quickly. Employees who left in the first 90 days of employment account for 50% of first-year turnover, the other 50% leaving between 91 days and one year. If an employee makes it past the 90-day mark, there’s still a 20% chance they will quit before the end of the year.
HAVE HAPPY STAFF Training casual employees is an effective retention strategy, as it makes them feel valued. It’s also critical to the success and efficient operation of an organisation. There is no way your employees will be able to improve their work-based performance without the necessary tools to do so. Take the time to teach staff members how to use the systems, and equipment safely, and gain the product knowledge to become an effective and productive team member.
PLANNING IS KEY The best way to approach recruitment and training is to plan by reviewing:
• Historical data for sales (increases/ decreases).
• Your local area community, other local businesses.
• Hours of operation. • Your customer needs etc. From there, you can plan where you need to roster and what gaps require solutions.
CONCLUSION It is never easy recruiting and training staff at any time of the year, however, with Christmas around the corner, there is even further pressure for businesses to get “Christmas ready”. MGA Industry Training are here to assist you in becoming “Christmas ready”. For further information on employing casuals and employment law, please reach out to MGA’s friendly HR lawyers on 1800 888 479 (option 1). For our range of accredited and nonaccredited courses to assist in getting your team “Christmas ready”, visit mga.asn.au or contact MGA Industry Training directly. We have courses on:
make up 40% of all employee turnover.
• Food Safety
– accredited and non-accredited
Plan recruitment: • How
• What do you need in the person (attributes, skill sets)
• Job descriptions Plan training: • Review onboarding processes
• Ask “What do they need to know?”
(WHS, business procedures and policies, how to use equipment etc)
• How will the business train the
• RSA • Tobacco • Customer Service • Emergency Management • Manual Handling • Plus more! For further enquiries on tailored training programs or other courses we offer please do not hesitate to contact our training specialists.
casuals?
»» Buddy system »» Online courses »» Reading business policies and procedures
»» Formal training There are many ways to coach staff. It is best practice to bring in the new employees slowly so they can gain knowledge and confidence with each task. It is also best practice to repeat the tasks, so the new employees are used to completing the task. Once your new team are working to meeting the key areas, you can then challenge them to increase their skills and speed.
21
Tailored training solutions for your employee needs.
MGA INDUSTRY TRAINING ARE HERE FOR YOU! Call our specialist team 1800 888 479 (option 2)
22
INDUSTRY NEWS
NATIONAL Independent Solutions provides POS software (Profit Track™) to Independent Retailers to make everyday tasks easy. We have recently added new technologies to include:
Cashless Self-Checkout
CashGuard Payment
Internet Shopping
Café Bump Bar Style System
Want to know more? Call your local Account Manager on
1800 020 946
mga.asn.au | October 2019 | Edition 7
LIQUOR NEWS
23
NORTHERN TERRITORY
Dan Murphy’s big box application rejected The Northern Territory Liquor Commission has considered, and rejected, the application by Endeavour Drinks Group to build an 1800 square meter Dan Murphy’s big box store in Darwin. MGA applauds the Northern Territory Independent Liquor Commission in its decision to reject Endeavour Drinks application, in its 103-page summary.
Welcome to MB Group We are an Australian services and contracting company specializing in heating, ventilation, air-conditioning, refrigeration (HVAC/R) and BMS solutions for commercial and industrial applications on a national basis. We are uniquely focused on helping our clients manage the dual-track commercial risks of the ongoing HFC refrigerant phasedown and the persistent challenge of increasing energy costs. To manage these risks we offer a unique suite of heating and cooling solutions incorporating natural refrigerants, energy efficiency solutions and project financing.
MB Group Solutions Unit 3/51 Power Road, Bayswater Victoria Australia 3153 PO Box 2043, Bayswater Victoria Australia 3153 Office: 03 9729 1997 Joel: 0432 593 390 Shaun: 0447 981 921 Email: enquiries@ mbgroupsolutions.com
Edgemill focuses on passionate staff Edgemill Group is constantly striving to improve our service, product range and quality to be best placed to offer excellent products at a competitive price specifically for our Independent retail partners. To that end it is our pleasure to announce the appointment of Mr. Andrew Powley Winemaker, Distiller and Brewer. Andrew’s official title at Edgemill Group is Operations Manager.
We at Edgemill Group, as an independent only manufacturer, will continue to grow our expertise with both personnel and our facilities to be able to provide a one-stop shop to carry out contract packaging and to develop innovative and commercially viable alternative products exclusively for the independent retailers of Australia.
Andrew has extensive experience in the liquor industry firstly in his home country of New Zealand then in United Kingdom, Australia, USA and most recently in Asia based in Hong Kong where Andrew was not only a senior winemaker but a consultant to various wine producers in China and Hong Kong. Andrew has been a beverage industry professional for 19 years and during this time has covered most if not all aspects of production including cellar and laboratory operations along with fermentation, distillation, blending , label design and the marketing of brands. Andrew has been exposed to many and varied grape growing and winemaking techniques in his travels. He has witnessed the expansion of the Wine business in mainland China along with the ever improving quality of wine coming from their home grown winemakers. Andrews’s passion to be involved in production from beginning to end and to produce exceptional quality is why Edgemill are extremely fortunate to have him on our team.
Edgemill Group Operations Manager Andrew Powley.
ON
n of
s on
in.
or
her
24
LEGAL AND HR
NATIONAL
Surveillance in your business – are you compliant? Surveillance, including CCTV and other types, in the workplace, is common practice in many industries. With such practice, comes responsibility for ensuring the privacy of your employees is not breached. Protecting your employees’ privacy will ensure they are feeling safe and their rights are not being unreasonably intruded. 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. The federal legislation does not explicitly cover workplace surveillance. However, there are state and territory laws that may apply to businesses for the installation and use of surveillance in stores.
unless the business has provided its employees with notice regarding covert surveillance, or authority is sought. The notice to employees for regular surveillance must include:
• the type of surveillance; • how the surveillance will be undertaken;
• when the surveillance will commence; and
• whether the surveillance will be
regular or sporadic and for a short duration or permanent.
Notice needs to be provided to employees in writing at least 14 days before any surveillance taking place. If the notice has not been provided A brief breakdown of the relevant privacy to employees who have already legislation is detailed below. Further commenced or due to start in less than regulations apply. 14 days, then notice must be given before BE SAFE – SLEEP WELL the employee commences work. There is Australian Capital Territory & a requirement that notices are placed on WITH SECURITY FOG New South Wales computers, areas where cameras operate Cash, tobacco products and liquor are what burglars look for The ACT and NSW have specific most when they break in to grocery stores. Most often theyand also vehicles. shatter shop privacy windows orlegislation work heavy iron doors open, making workplace that a break-in a costly matter for the shop owner. governs the use of specific workplace Like NSW, the legislation in the ACT Fortunately grocery stores in Denmark and abroad have long privacy or employee monitoring. The requires employers to notify and been aware that fog protection is an efficient way to prevent legislation comprehensive requires heavy losses,isdisappointed customers,and insecure staff, higherconsult employees before implementing insurance premiums and the heavy cost of replacing facades. a complete understanding to ensure that surveillance in businesses. The notice obligations are followed. must include how surveillance will be carried out and how the business In NSW, the legislation applies to will utilise it. There is a consultation businesses’ use of technology to requirement of 14 days after the primary STOP BURGLARS monitor employees. The law in NSW notice is issued. Employers must forbids workplace surveillance; genuinely consider their employees’ IN SECONDS! – Suitable for supermarkets and kiosks
STOP BURGLARS IN SECONDS!
concerns. Visible notices are also to be placed on computers, areas where cameras operate and also vehicles. Northern Territory, South Australia, Victoria & Western Australia Unlike the ACT and NSW, these states have broad legislation that applies beyond the workplace. Although they are not workplace specific legislations, they may still apply to many businesses. These states and territory prohibit the use of surveillance devices to record private conversations without the consent of the parties. Private conversations are defined differently by each state and territory. General prohibitions and further notes There must not be surveillance of toilets, change rooms, sick bays and other similar facilities. Businesses must not also undertake STOP BURGLARS surveillance of their employees while they IN SECONDS! are not at work. – Suitable for supermarkets and kiosks
Certain rules apply about the disclosure and use of such surveillance. For advice tailored to your needs, please contact MGA’s Legal and HR team on 1800 888 479 (option 1) to discuss your queries regarding THE PERFECT PROTECTION surveillance.
AFTER CLOSING TIME ALARM IS ACTIVATED
Fog security means the immediate protection of your valuables!
• 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
ALARM IS ACTIVATED
A PRO dense the pr
Bre
Keep t police
BE SA WITH
Cash, tobac most when shatter shop a break-in a
heavy losses
Fog security means the immediate protection of your valuables! Break-in
Cash, tobacco products and liquor are what burglars insurance pr most when they break in to grocery stores. Most of shatter shop windows or work heavy iron doors open 20 sec. 10 - 45 min. a break-in a costly matter for the shop owner.
Keep A PROTECT Fog Cannon will fill a room with a blanket of the intruders out for up to one hour - ample time for police on or security services to arrive.grocery stores in Denmark and abroad h dense security fog, rendering the intruder blind, it works Fortunately the principle that you cannot steal what you cannot see. been aware that fog protection is an efficient way to heavy losses, disappointed customers, insecure staf insurance premiums and the heavy cost of replacing SECURED IN SECONDS ALARM IS ACTIVATED security fog is white, dense and dry and for increased disorientation, you can add a strobe light and a siren. Keep the intruders out for up to one hour - ample time for Break-in
20 sec.
PROTECT 10 - 45 min.
For further details please contact: police or security services to arrive. 1800 200 999 or visit protectfogcannon.com.au
▲
• Up to 5| years warranty mga.asn.au October 2019 | Edition 7
Fog s your
BE SAFE – SLEEP WELL THE PERFECT PROTECTION A PROTECT Fog Cannon will fill a room with a blanket of dense security fog, rendering the intruder blind, it works on SECURITY FOGFortunately AFTER CLOSING TIME the principle that youWITH cannot steal what you cannot see. been aware
– Suitable for supermarkets and kiosks
FOG CANNON FOR YOUR SAFETY:
TH AF
This vi second videos
LEGAL AND HR
25
Earn extra revenue with Tipple Supporting Independents Tipple’s Founder & CEO has owned & operated 11 independent bottle shops over his 15 years in the industry - we’re independents, for independents.
Reach More Customers Tipple brings you additional revenue via the online marketplace. Customers shop through the Tipple app & we organise delivery. All you need to do is pack the order!
We’re Expanding Currently operating in Melbourne & Sydney, we’re seeking more Bottle Shop Partners around the country as we continue nationwide expansion.
To find out more, contact our National BDM to organise a meeting at 0411 344 814 or sam.volard@tipple.com.au
Is my store at risk of a ransom attack? As the number of cyber-attacks 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 long-term consequences. 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. 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. Contact your local broker for a FREE insurance review. 1300 402 756 | myadroit.com.au
26
INDUSTRY NEWS
GPK GROUP – UNIFYING TECHNOLOGY NATIONAL
RETAIL TECHNOLOGIES
PROFESSIONAL SERVICES
CLOUD TECHNOLOGIES
CONNECTIVITY & SECURITY
Merlin™ ESP
IT Consulting and Sales
Phone, Voice & PBX
Point Of Sale, Back Office, Head Office Software
Managed Services, Help Desk and Support
Microsoft Azure Stack Hybrid, Private & Public Cloud
Retail Hardware Application and System Integration
Customer Relationship Management System Design & Development Digital Application, Web Design and Development
Onsite & Remote Support Business Intelligence
Project Management
Microsoft 365 & Office 365 Infrastructure-as-aService, Platform-as-aService, & Software-as-aService Hosted Unified Communications Data Centre Collocation
Internet Services Cabling, Networking and Connectivity Security Cameras and Monitoring Hubs Digital Security, Virus and Threat Minimisation Systems Risk Analysis, Disaster Recovery Planning
ONE COMPANY, MULTIPLE SOLUTIONS From Merlin™ POS software, to Professional IT Managed Services, to Private and Hybrid Cloud, as well as Connectivity and Security, GPK Group has you and your business covered!
PHONE: 1300 000 475 WEB: WWW.GPKGROUP.COM.AU EMAIL: | October 2019 | Edition 7 mga.asn.auINFO@GPKGROUP.COM.AU
GPK MELBOURNE
GPK BRISBANE
2/94 ABBOTT ROAD HALLAM, VICTORIA AUSTRALIA, 3803
4/33 MEAKIN ROAD MEADOWBROOK, QUEENSLAND AUSTRALIA, 4131
INDUSTRY NEWS
27
WESTERN AUSTRALIA
Least cost routing saves MGA member $90,000 over 12 months! Pat Rock, co-owner of IGA Canning Vale, Riverton and Baldivis in WA, has implemented least cost routing across his business and, as a result, is seeing fantastic savings. After reading the MGA article on least cost routing 12 months ago, I contacted my bank, ANZ, and was informed that they didn’t have the technology at the time to enable Merchant Choice Routing. In the September edition of Independent Retailer, MGA published another article on least cost routing that I read. I decided to contact ANZ again. I spoke with the eftpos banking team at ANZ and was initially told that small transactions didn’t provide any additional savings once switched over. I informed ANZ what my average transaction value was and was then advised that least cost routing could be of advantage to my business.
unit. An overnight reset followed this, and ANZ confirmed the following day that all units were now updated with the latest required version. Taking my 12 months Visa and Mastercard transaction value and using my average sale value, I have an estimated savings of $90,000 per year, simply by enabling this option for card transactions in my stores.
‘The process only took one day! A phone call to ANZ, selecting the correct option online, then a software check, overnight software upgrade and now it’s fully operational.’
Once we had confirmed the advantage to my business, ANZ then dialled into my 23 eftpos units across my three stores to understand which units had the latest software version installed.
Many thanks to MGA, the article was extremely informative and easy to understand, and once put into action with ANZ was very easy to execute.
After establishing the units that needed a software upgrade, I was directed on how to apply the upgrade locally to each
MANY THANKS, PAT ROCK
28
TRAINING
NATIONAL
Benefits of e-learning to your business WHAT IS E-LEARNING E-learning is conducted through electronic media, typically on the Internet. This includes:
• Web-based learning • Computer-based training • Webinars/Virtual classroom • Mobile learning • Video-based learning. There are many advantages of e-learning and online training programs that are relevant to every industry, business and employees. Some of the benefits are: Budget Online training means that businesses reduce the cost of travel expenses, catering and venue hire – not to mention the costs of facilitators and physical training materials, like stationery and resources. Another area of saving is paying for employees for their travel time and other expenses when booking face to face facilitation. Training magazine reports savings of up to 80% in printing costs alone. These cost savings are one of the clearest advantages of e-learning.
Personalised Not every person learns the same way. Some might retain more knowledge through videos, others might prefer written notes, and some might need realistic opportunities for practice before they truly grasp a new skill. One of the greatest benefits of e-learning for employee training and development is that e-learning delivers information in a variety of ways including:
• Videos • Notes • Infographics • Gamification of information • Virtual reality scenarios • Forums. And with the different types of assessments, like quizzes and case studies, participants can be engaged according to their increasing level of understanding as they progress through the training. With more engagement, employees are more willing to complete their course. This assists the business in meeting compliance requirements. E-learning can reduce employee time associated with learning as it removes:
• Starting and wrapping up time learning sessions • Travel time • Breaks and meals • Teaching to a group, rather than an individual. Self-driven and self-paced At the start of any training program, the chances are slim that everyone will be on the same level of knowledge, skill or experience.
mga.asn.au | October 2019 | Edition 7
TRAINING This eliminates much of the energy spent coordinating where and when a course will take place. Gathering a whole team of employees together in one place is never easy and never efficient. E-learning gives both management and employees more flexibility to complete essential “just-intime� training as requirements change.
People learn and absorb information in different ways and at different speeds. E-learning courses provide flexible and versatile learning that enables individual learners and organisations alike to tailor their training to fit with their specific circumstances. Even though the course material is consistent for all users, e-learning allows each individual learner to control the pace of the course. And because of the flexibility e-learning provides, users can also take the course in an environment more conducive to their learning style. Convenient and Flexible One of the key advantages of e-learning is that employees can participate in online courses from anywhere with an internet connection and on any device (smartphones, tablets, laptops, even the work computer!).
E-learning also fits into your employees’ flexible lifestyles. Employees can learn their way; on trains, planes, or comfy couches. It also means that not everyone has to learn at the same time. Everyone has their busy schedules, so employees can access their learning when they have time, and when their energy levels and focus are maximised for retention. By providing training that can be accessed to provide flexibility, improves overall employee morale. Risk-free environment One of the major drawbacks of instructor-led group training is that some employees will avoid contributing to the lesson because of a fear of failure. E-learning training courses provide employees with an opportunity to fail in a safe environment. Extra Skills E-learning allows participants to take responsibility for their own course of studies. They will learn to develop techniques of self-discipline, self-
29
motivation and time management. Every one of these disciplines is of immeasurable value to the business. The other skill added to e-learning is the skill of using technology. Not everyone is on the same skill level when using computers or smartphones. However, it is an expectation in this day that all employees have basic computer, tablet and smartphone skills. By completing courses online, it helps those who are not exposed to these skills gain them as well as an understanding of how to use different types of technology. This mirrors the workplace and its demands on using technology. Technology and e-learning are forever evolving to suit not only the education industry (TAFE and universities) but to industry and organisation requirements and values. Whether it is a formalised standardised learning on compliance platforms or one-off short courses, e-learning offers businesses a flexible, affordable pathway in training and future-proofing employees. For further enquiries on tailored e-learning programs or other courses we offer please do not hesitate to contact our training specialists on 1800 888 479 option 2.
Tailored e-learning solutions for your employee needs.
MGA INDUSTRY TRAINING ARE HERE FOR YOU! Call our specialist team 1800 888 479 (option 2)
30
TIMBER NEWS
FRESH THINKING
$9,150*
$5,995*
535
930
130
265
SPECIAL PRICE
205
720
205
1130
*Special pricing valid until November 30 2019. Prices are based ex Emu Plains NSW. Delivery service available on requested and quoted separately.
K REFRIGERATION GROUP AUSTRALIA PTY LTD
W krefrigeration.com E salesaus@krefgroup.com T 1 300 225 665
At J.C.’s we’re passionate about crafting products made from natural ingredients sourced from family growers and specialist producers.
DISCOVER OUR EXTENSIVE RANGE OF NUTS, DRIED FRUITS, LEGUMES AND SNACKS IN-STORE
mga.asn.au | October 2019 | Edition 7
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
TIMBER NEWS
31
MGA TMA timber industry golf day The timber industry’s finest met on the golf course in October. The day was spectacular with Melbourne putting on glorious sunshine. Sixty players took to the greens at the Kingston Heath Golf Club in Melbourne for the annual timber industry golf day. With excellent prizes and good food the order of the day, we give thanks to partners and sponsors:
• AB Phillips General Insurance • Lonza Wood Products • Britton Timbers P/L • Bowens Timber & Hardware And Corporate partners:
• First Super • Flexi Capital • One Forty One
3rd place - National Forest Products.
A convivial buffet opened the event, with chinos and shorts taking the place of plus fours. The rules were run through; teams were given cards listing their handicap and starting hold then dispatched for a shotgun start at 12.30. 15 teams had a great day! Prizes were given to the first, second and third-placed teams, in addition to awards for nearest the pin, longest drive and a $40,000 ‘hole in one’ cash prize competition sponsored by AB Phillips. A raffle was held with first prize being a $500 Drummond Golf Gift Voucher. Proceeds went to Reach as well as support for the Australian Terminal Cancer Foundation.
Come the hour, play commenced and amid a great deal of chatting, industry talk and joking, some rather fine golf was committed. Winners and winning teams of the day:
• 1st • 2nd • 3rd • NAGA
Bayswood Timber Wholesale Dahlsens Building Centres National Forest Products Mathews Timber
Other prizes were given for:
• Nearest the Pin • Longest Drive Unfortunately, no one was successful in winning the $40,000 ‘hole in one’!
AB Phillips $40,000 ‘hole in one’ cash prize.
Dahlsens’ Simon Surridge wins the $500 Drummond Golf gift voucher.
NAGA - Mathews Timber.
N.T.P - Doug Maxwell from McCormack Hardwood.
1st place - Bayswood Timber Wholesale.
First Super with MGA’s Ann Sanfey and Mark Paladino.
32
INDUSTRY NEWS
new
mga.asn.au | October 2019 | Edition 7
new
new look
LEGAL AND HR
NATIONAL
Why we need Industrial Relations reform Almost a decade ago, we were awaiting the proclamation of the new Fair Work Act (2009). At that time the shadow of WorkChoices still lingered over our industrial landscape, and there was optimism that the new industrial laws would bring fresh opportunities for workplace growth and renewal. As the new industrial laws were implemented, we gradually saw changes in the operation of our industrial relations system. Australian workplaces benefitted from many of the changes that came with the new laws, and while we should not underestimate those benefits, we need to recognise that over the last few years some flaws have emerged in our industrial relations system that now requires government attention. When the Fair Work Act became law, changes included a reduction in the number of complex awards from thousands to 122 industry awards. New National Employment Standards were introduced that apply to every employee today, whether subject to an award or not, and these developments have been beneficial to employers and employees. We also now have the Fair Work Commission that sets the minimum award wage annually while being distinct from any government influence. The Fair Work Commission has numerous functions, including dealing with unfair dismissals, adverse actions, determining the making of enterprise agreements and amending the awards. However, almost ten years on from the making of the Fair Work Act several flaws have appeared in the industrial relations system, including problems associated with making new enterprise agreements and dealing with the increasing number of unfair dismissal applications. The process for making agreements is often problematic and restricts many employers from making new agreements. The law requires that before the Fair Work Commission can approve any new agreement, its terms and conditions must be better overall for each individual employee than the current award terms and conditions which regulate the employees’ employment. The “better off overall test” is often simply too difficult to meet because it must apply to every single employee employed under a proposed agreement. The result is that in many cases this requirement simply cannot be met and so negotiations are often abandoned. As an alternative, the use of an earlier test that ensured employees were not disadvantaged as a result of moving
from an award to an agreement, is a solution, even though they may not necessarily be ‘better off overall’. The decline in the number of agreements being made reinforces the requirement to refine the process for making enterprise agreements. Unfair dismissals may be lodged in the Fair Work Commission, sometimes with very little substance to the claim and the process is followed through to a conciliation hearing where the employer ends up paying an amount of money simply to make it ‘go away’. A rigid system of vetting applications before reaching the conciliation stage would be appropriate because once the application is accepted, it is time-consuming and often expensive for the employer. Unfortunately, payment of settlement money is generally an easier option than arbitration. Another dilemma facing the current industrial relations system is the issue of wages growth. We currently have a reasonably low unemployment rate, but we have increasing underemployment, particularly in the retail industry. The government is urging economic growth, and that means wage increases, which in turn improves productivity. However, the dilemma for retailers is that if the cost of wages increases the number of working hours available may have to be reduced and so it becomes a vicious cycle, meaning fewer work hours available to employees, and often forcing retailers, or their families, to work in the business themselves. The high cost of award penalty rates for retailers is also a massive financial burden on the survival of small businesses and family enterprises. The hope for the industry in 2020 will be for any wage increase to be moderate to ensure that some real growth can be realised in the next financial year, without loss of working hours or store closures. If reform measures can include opportunities such as new agreement making conditions, improved unfair dismissal procedures, moderate wage increases and fewer award amendments then there will be a better industrial relations future ahead. We cannot afford to remain stagnant in the current industrial relations system. We need positive changes if we are to avoid further setbacks to the retail industry.
33
34
LIQUOR NEWS
mga.asn.au | October 2019 | Edition 7
TM © Rugby World Cup Limited 2015. All rights reserved.
Financial Year
19
2019 Annual Report.
2
ANNUAL REPORT
Financial Year 2019 Annual Report
MGA’S HIGHER PURPOSE
An MGA team dedicated to caring for and supporting its members. OBJECTIVE To be a highly respected national industry organisation led by an inspired and aligned high performing team.
MISSION
VISION
To deliver support services that enhance members’ business health and prosperity.
A robust, competitive and profitable independent retailer and business sector.
MGA VALUES – C.I.R.C.L.E
Consult when decisions affect others
Integrity in everything we do
Respect for one another
Communicate open and honestly
Leadership take ownership
Embrace change as a healthy part of growth
MGA’S WORKPLACE MGA and MGA TMA’s workplace culture is based upon its strong values and its higher purpose to “Make Life Easier” for its members, industry stakeholders and work colleagues.
mga.asn.au | 2019 | Annual Report
MGA strives to be a high performing team of professionals encouraging staff to develop and grow in their roles to enable an enjoyable and productive culture to assist members better.
ANNUAL REPORT
Benefits of membership 8 reasons to be a member of MGA and MGA TMA
LEGAL & HR
TRAINING
ADVOCACY
MEMBER BENEFITS
COMMUNITY
1.
We know the industry – MGA and MGA TMA has been an employer organisation for the independent grocery, liquor and timber and hardware industry since the 1890’s – we have over 100 years of experience! Registered with FWC and ASIC.
2.
We are your voice – MGA and MGA TMA represents your views, fighting for our member’s and industry sustainability at federal, state and local levels. See our work on Sunday penalty rates, National Wage Reviews, shopper dockets, Competition Law Reform, trading hours, Packaged Liquor and energy costs at www.mga.asn.au. Your views – our mission!
3.
Free unlimited legal advice – on all Employment Law and HR matters, Workplace Health and Safety and Consumer Laws – SAVING YOU $$$$$ and giving you peace of mind!
4.
Support for your business – Free access to policies and templates to help you run your business – letting you focus on what you need to focus on! As a member, access our member portal for wage rates, public holidays and more!
5.
Industry training – Food Safety, OH&S, Timber, RSA, Customer Service, Tobacco, Leadership and much, much more. Industry specific, member discounts, bulk buys – talk to the experts in grocery, liquor and timber and hardware retail industry training. Join our face-to-face Employment Law Master Classes or food safety training at member rates.
6.
Exclusive deals – Member-only special deals on big-ticket items such as electricity and insurance – check them out at www.mga.asn.au!
7.
Stay informed – With our fortnightly MGA E checkout and monthly MGA TMA newsletters – we keep you up to date with the latest employment law news or e-alerts on the latest industry news and events. Alternatively – check out our magazine that has all the latest news!
8.
Community – An opportunity to network at our industry business breakfasts, lunches, golf days and GALA ball. Join in our industry events that help those in need. MGA and MGA TMA has a long history of assisting the Reach Foundation!
3
4
ANNUAL REPORT
President’s report It is a privilege and honour to report to the members of MGA and MGA TMA as the 2019 MGA Board President. I have served as a Director on MGA’s Board for 16 years, the past 2 years as Vice President. MGA supports our retail community. It is the glue that connects our industry, ensuring that our interests as retailers and small business operators are represented to government and protected and supported by employment and industrial laws. The MGA Board live and breathe our industry and small business. We understand our members’ issues, and we understand our market, the cost pressures and the Industrial Relations landscape. The major focus for our board in 2019 has been to identify members’ business needs and the matters that affect the viability and sustainability of them. Our aim is to develop and understand synergies between our members, but also to understand and service their differences. While all of our members are family and private businesses, they are not all independent grocers. MGA is now equipped to be able to service and protect all our members, in Industrial Relations, Compliance and Government Lobbying. First and foremost, I wish to thank MGA’s dedicated and committed Board of Directors for the enormous amount of time, enthusiasm and energy they put into the running of MGA. Our Directors are from all the states of Australia, and we actively engage with federal, state and local governments on our members’ behalf. I wish to particularly pass on my heartfelt thanks to past MGA Board President of 15 years and Director for more than 20 years, Rodney Allen, who stepped down from the MGA Board Presidents position in December 2018 owing to ill health. We are sincerely grateful to Rod for his leadership, energy and complete dedication toward creating an industry association that will stand by its retailer members in difficult, and in robust, trading times. Rod led the organisation from being a Victorian Independent Grocery Association (MGAV) with 360 members into a National Employer Industry Organisation Association (MGA) with over 2500 members.
I would also like to sincerely thank my fellow Board members for their outstanding contributions over the past financial year. Similar to many other organisations we have had Board members come and go over the past 12 months. I wish to welcome to the Board Lincoln Wymer who was elected to be an MGA Director at the MGA Board elections held in November 2018. Lincoln brings to the Board extensive retail and business experience in the independent supermarket and liquor industries. I wish to farewell and acknowledge the tremendous work that Gino Divitini, MGA’s former WA Director, and owner of Supa IGA Hilton WA, did in representing our members in WA for almost seven years. Gino stood down in February 2019.
Former MGA Director Gino Divitini and WA IR Minister Bill Johnston.
I would like to warmly welcome our new WA MGA Director, Ross Anile, who joined MGA’s Board in February 2019. Ross is well known in WA by his fellow retailers, not to mention many state MP’s and regulators. Finally, I wish to welcome Jeff Harper as our most recent Board Director. Jeff, a well known Victorian retailer and industry stalwart, joined MGA’s Board in February 2019.
Former MGA President Rod Allen and current MGA President Debbie Smith.
mga.asn.au | 2019 | Annual Report
After only two years with MGA, the former Timber Merchants Association of Victoria and now national organisation MGA TMA (Timber Merchants Australia), under the strong leadership of MGA TMA President Peter Alexander, and Vice President Richard Hill continues to lift its profile within the timber and hardware sector. I want to thank both Peter and Richard for theirs and the MGA TMA Management Committee custodianship and leadership of MGA TMA.
ANNUAL REPORT
Led by MGA Liquor President, George Kovits, I also wish to acknowledge and thank members in the hardworking MGA National Liquor Committee for their collective dedication and commitment to protecting and further growing family enterprises and privately-owned business stocking and selling liquor products. MGA’s Board of Directors has this year embarked on several new ventures with the sole aim of ensuring our members’ sustainability. Our drive is to be able to provide our members with the knowledge, innovation tools and partners to take real costs out of their businesses. Business disruption has grown exponentially, all of our retailers face greater competition in an already congested market, there have been major impacts by drought and other major climatic events, serious increases in energy, and waste costs. These have had a negative impact on our members’ bottom line. MGA’s Board is determined to seek out solutions that enable and assist members to simplify their compliance and business obligations.
5
Industry Association with a clear direction that is well prepared for any future opportunities and challenges that may face MGA and MGA TMA members. MGA membership remains strong and stable around Australia. The opportunity is to further grow the MGA TMA membership by attracting family-owned timber and hardware businesses which MGA’s Board is determined to drive in Financial Year 2020. On behalf of us all of at MGA, we wish to sincerely thank all our members for supporting your industry association. We look forward to continuing to be of service to you and your business!
Debbie Smith | MGA Board President
MGA’s Board is constantly aware of the challenges members face and encourage you to use MGA’s facilities, whether they be legal and HR or compliance or professional development training. Every year MGA’s Board strives to lift services and support for members while keeping membership fees at a low and affordable level. Significant investment has been made into employing more qualified staff, lifting communications effectiveness and modernising MGA and MGA TMA’s website. As I say each year, members can be assured that under the stewardship of this Board of Directors and the strong MGA management team and staff we have working for our industry, that MGA and MGA TMA is a viable and strong Employer
From L to R to back — Mick Daly (Vic), Debbie Smith (President—Qld), Lincoln Wymer (Vic/NSW), Grant Hinchcliffe (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.
Graeme Gough NEW SOUTH WALES
Mick Daly VICTORIA
Ross Anile WESTERN AUSTRALIA
Chris dos Santos Debbie Smith
MGA Board of Directors
MGA’s committed and dedicated Board of Directors has representation from all states and territories. Directors have been active in developing policies and addressing and allocating MGA resources to help meet the needs of members.
PRESIDENT | QLD
SOUTH AUSTRALIA
Carmel Goldsmith NEW SOUTH WALES
Phil Ibbotson
Grant Hinchcliffe
COMPANY SECRETARY
TASMANIA (VICE PRESIDENT)
Jeff Harper VICTORIA
Lincoln Wymer VICTORIA/NSW
6
ANNUAL REPORT
CEO’s report First and foremost, and as per the annual report last year, I wish to state that it has again been a privilege to lead a committed team of professionals at MGA and MGA TMA. I am proud to say that this organisation has no conflicts of interest and is completely dedicated to the welfare and prosperity of family enterprises and privately-owned businesses in the supermarket liquor and timber and hardware sectors. We do not represent “big business”. MGA’s Board of Directors has again worked very hard toward MGA and MGA TMA providing strong support services and advocacy for its members around Australia. I wish to sincerely thank the Board, led by Board President Rod Allen until December 2018 and then new President, Debbie Smith, from January 2019, for their support and guidance toward MGA being the best Industry Association for its members that it can be. MGA’s membership numbers remain steady at 2,555. 78% of members are licensed supermarkets with the balance of 22% comprising stand-alone liquor, hardware and timber family businesses. Sincere thanks to Gino Divitini who retired as MGA’s WA Director in February 2019 after seven years of service. Gino did an outstanding job representing all independent supermarket operators in WA. Thank you, Gino.
organisation. Everything the organisation does is with the best interest of members in mind. MGA has had another very exciting year of achievements including; the establishment of MGA TMA as an organization for timber and hardware merchants, the launch of the MGA TMA workplace health and safety training and onsite OH&S auditing product, the establishment of the Timber Technical Advisory Service, the growing in strength of the National Liquor Committee, the strong representation in Queensland and Western Australia via the MGAQ Committee and the MGA WA Committee, the relocation of MGA’s total database and operations into the Cloud, the Microsoft outlook program located in the Cloud, the ongoing development of MGA communication tools such as E-Checkouts, E-Alerts, the Training Course guide, E-training newsletters and MGA TMA newsletters.
I wish to extend my deep gratitude to former MGA Board President Rod Allen. Rod’s leadership of the Board and his passion for doing what is right for members has driven MGA to new levels of excellence each year. Rod served on MGA’s Board for 20 years and as MGA’s President for 15 of those amazing years, overseeing the growth of our organisation from a statebased organisation in 2005 (MGAV) into a National Industry Employer Association today. Thanks, Rod.
MGA continues to provide members of the Australian Hairdressing Council (AHC) with an exemplary Legal and HR advice support service, as well as members of the Liquor Stores Association of WA. Ritchies CEO Fred Harrison and former MGA President Rod Allen.
MGA’s higher purpose is to “make life easier” for members. This theme resonates throughout the MGA and MGA TMA
mga.asn.au | 2019 | Annual Report
There were many matters of concern that consumed MGA and MGA TMA’s time both at a federal and state level, as mentioned later on in this report.
ANNUAL REPORT
2019
COURSE GUIDE
Practical.
Supportive.
Interactive.
1800 888 479 www.mga.asn.au
7
MGA’s Legal and HR team successfully completed another year of service to the Australian Hairdressing Council (AHC) as per the agreement struck in 2017, by providing AHC members with a reliable and trusted workplace relations support service. This is a unique feature of the AHC organisation’s offer to its members. MGA’s training offer has had significant challenges, including the withdrawal of certificate 3 and 4 training from its training portfolio back in 2018. While MGA has an arrangement with another RTO to provide MGA certificate training, there has been no demand from members at all. There continues to be no federal and little state government funding to support certificate training for our members’ staff, limiting any opportunities for members to upskill and train their staff. MGA and MGA TMA, as the industry compliance training specialists, has continued to focus on accredited compliance training courses such as Food Safety, Food Safety Supervisors, Responsible Service of Alcohol, tobacco, timber and hardware OH&S and so on.
Some federal matters MGA has been handling include the National Wage review, industrial relations issues and impediments to employing staff, the increase in unfair dismissal claims and the lack of triaging legitimate claims by the FWC, energy costs, company tax reductions – to 25% for businesses with less than $50m sales, unfair contract terms, merchant fees reductions – least cost routing and the Shopper Dockets “enforceable undertaking” continues.
Despite the economic uncertainty, the tech disruption and many “crowding out” challenges from the chains we have again seen members invest heavily back into their businesses. Members who have taken the risk to invest their “hardearned” revenue back into their businesses with innovations, refurbishments and restorations to give a point of difference to the chains have delighted their customers and have seen significant sales increases.
STATE-BASED MATTERS OF CONCERN
MGA and MGA TMA has achieved a high profile in the states, territories and at a federal level when addressing the many matters of concern. When members incur issues at store level, they know they can call MGA to access its professional and qualified employment law team and be assured MGA and MGA TMA is a strong voice for members at state and federal government levels too!
Some of the challenges our members have been facing include trading hours deregulation (SA, Qld, WA), unfettered floorspace development of Aldi and chain stores, restrictions to sell packaged liquor (SA, Qld), Chain of Responsibility regulations and so the list goes on and on. Other matters include plastic bag bans, Container Deposit Schemes, liberalisation of trading hours, planning, zoning and development matters – in particular Kaufland’s entry into Australia, tobacco laws, payroll tax, red tape and cost burdens, land tax. MGA’s Legal and HR team, led by Marie Brown, have had a very busy year assisting and supporting members with a plethora of staff-related queries. Unfair dismissals have been on the rise, which is cause for concern owing to their time-consuming nature for members and MGA. The team also produced a range of state and federal submissions, including the National Wage Review submitted in March 2019. The Victorian Planning Ministers independent planning review panel hearings concerning the fourth largest retailer in the world, Kaufland, and their request of the state government to unfairly rezone industrial and commercial land have been particularly time-consuming.
MGA’s Board has worked very hard this year to better understand the needs of members and has pledged to continue to deliver value for money to members. MGA and MGA TMA membership fees are very reasonable for the support and services provided to members. MGA’s Board resolved to increase MGA’s membership fees by 2% for Financial Year 2019. MGA’s heads of departments and staff have worked very hard this last financial year assisting and supporting its grocery, liquor, and timber and hardware members. Their passion and commitment to support members is demonstrable. I sincerely thank MGA management and staff for their commitment to “making life easier” for members. CONTINUED >
8
ANNUAL REPORT
Corporate Member support is an essential component of MGA and MGA TMA’s day to day role to support members. Not only do MGA and MGA TMA’s 32 Corporate Members provide both MGA and MGA TMA with valuable insights and engage with members but their corporate membership fee enables MGA and MGA TMA to better resource itself, to strongly represent members best interests at state and federal government levels.
DIAMOND
2018 — 2019 Highlights • MGA’s higher purpose – to “make life easier” for its members.
• Continued unsustainable price increases for energy – significant lobbying for reduced energy prices to members at federal and state government levels.
PLATINUM
• Reduction in company tax from 30% to 25% for businesses with a sales turnover up to $50m.
• Ongoing enforceable undertaking continues capping shopper dockets to 4c / litre.
MGA’s National Liquor Committee, led by Management Committee President George Kovits, has been very active in pursuing a myriad of matters and issues affecting members’ packaged liquor business. With more than 1200 members nationally having a packaged liquor license, the MGA National Liquor Committee has an important role to play in working with relevant state governments and bureaucrats to minimise the risk of any regulatory and red tape impacts on members businesses. The MGA National Liquor Committee is to be commended for the high level of engagement it has with our industry, industry stakeholders and state governments. We thank the MGA Liquor Committee for their valuable time, enthusiasm and insights. MGA TMA’s National Management Committee, led by National Membership Manager, Ann Sanfey has made significant progress in lifting its profile within the timber and hardware industry in our endeavour to attract new members. The MGA TMA Management Committee led by President Peter Alexander worked very hard to better understand the needs of timber and hardware merchants in order to grow the membership numbers. I would like to sincerely thank all MGA TMA Committee members for their persistence and commitment. To conclude, I wish to sincerely thank MGA’s and MGA TMA’s members for their continued support. For our dedicated team, it is a pleasure to do work for all our members, who comprise family enterprises and privately-owned businesses from around Australia.
• Ongoing reduction of Sunday penalty rates: 100% – 50% – this will create more employment.
• Strengthening of Unfair Contract Terms legislation. • Black Economy Task Force involvement led to Minister Kelly O’Dwyer legislating new and tougher laws allowing Australian Border Force the jurisdiction and powers to prosecute wholesalers, importers, growers and sellers of illicit and illegal tobacco products.
• E-cigarettes and vapourisers – further submissions lodged and state governments lobbied to support an alternative to tobacco products.
• 2019 National Wage Review – member surveys and submission lodged in March 2019.
• 3 years left of 5 Year Moratorium in Queensland for the deregulation of trading hours.
• MGAQ Committee initiating of the QLD Entrepreneurial Pipeline Project facilitating local wines, beers and spirits to be stocked by independent supermarkets
• Launch of MGA’s 2019 Training Course Guide. • The strengthening of the MGA TMA Management
Committee – profile lifted with key players such as Independent Hardware Group, Hardware Australia and other timber organisations.
• MGA’s financial sustainability and stability continues to be strong and with the trading results for FY2019 showing a modest profit.
Jos de Bruin | CEO MGA Independent Retailers
mga.asn.au | 2019 | Annual Report
ANNUAL REPORT
Financial Report MGA’s trading year was again robust and like the industry MGA serves, had its trading ups and downs. The nature of the industry, owing to intense and unsustainable competition and saturation of supermarket floorspace by the major chains and ALDI, has caused many single-store owners to sell their businesses to multi-store owners and in some cases store closures. This move has resulted in less membership fee income being collected. MGA has reported a net ordinary FY2019 income result of –$94K versus a net ordinary loss of –$195k last year. However, MGA has reported a Net Income result, after calculating other income and expenses, of $52k versus $218k last year. In a very difficult trading year, this is an encouraging result. The balance sheet shows a healthy total equity of $4.84m versus $4.78m last year, which positions MGA well to continue to support and service its members around Australia now and into the future. MGA’s Training sales were not up to expectations delivering almost 50% of the budgeted sales target, causing a review of MGA’s training offer for FY2020. The poor training sales result was affected by unprecedented competition in both face-to-face and online training forms. MGA’s training strategy for FY2020 will involve streamlining all MGA training products and going “back to basics” to mitigate any further losses and drive profitable training solutions for members.
MEMBER ENGAGEMENT MGA and MGA TMA members around Australia continue to rely upon the strong support service that MGA provides. For the price of an all-inclusive membership fee, members can avail themselves to MGA’s highly skilled and capable team for advice and support pertaining to many “back of house” matters, whether they are Legal and HR, training or local advocacy matters.
INDUSTRY STAKEHOLDERS IN FY2019 Supermarkets – Drakes Supermarkets, Farmer Jacks (WA), Foodland (SA), FoodWorks, Friendly Grocers, IGA, SPAR Liquor – Bottlemart, Cellarbrations, Duncans, IBA, Local Liquor, The Bottle-O Hardware – Independent Hardware Group – Mitre10 and Home Timber and Hardware, Bowens Timber, Dahlsens Timber Wholesalers – Australian Liquor Marketers, Metcash, SPAR MGA partners – Adroit Insurance & Risk, Aussie NRG, eftpos, NAB
9
10
ANNUAL REPORT Contact Hours by State
Contacts by State
Total: 3480
Total: 9525
July 2018
MEMBER SUPPORT SERVICES
July 2018
June 2019
ACT
2%
NSW
QLD
16%
SA
5%
19%
VIC
42%
WA
13%
NT
1%
TAS
2%
ACT
1%
NSW
QLD
17%
SA
6%
WA
13%
VIC
Hours by Department July 2018
Legal and HR
June 2019
41%
18%
NT
TAS
1%
3%
Contacts by Department
June 2019
July 2018
Total: 5220
June 2019
Total: 10954
Need help? Talk to one of our experienced lawyers.
Training MGA – Specialists in industry compliance and training. Admin
Advocacy One voice – representing our industry at all levels of government.
3%
Legal & HR
Training
AHC 47%
1%
Liquor
15%
Admin
1%
Advocacy
9%
Legal & HR
33%
Training
AHC 57%
1%
Liquor
21% 1%
Advocacy
11%
CORPORATE MEMBERSHIP
Member Benefits MGA gets the best deals for members. Contact us!
Community MGA fosters industry community engagement. Be part of it with your membership!
www.mga.asn.au Free call: 1800 888 479
MGA’s (and now MGA TMA) Corporate Partners portfolio, led and managed by MGA’s Trade Marketing and Membership Support Manager, Mark Paladino, again played a significant role in supporting family enterprises and privately owned businesses in the supermarket, liquor, timber and hardware sectors. Corporate Partner sponsorship and involvement enables MGA and MGA TMA to strengthen the resilience and sustainability of members while facilitating valuable business connections with members through a variety of advertising and promotion mediums and industry events. In total, there are 32 Corporate Partners supporting MGA and 8 supporting MGA TMA across five different support levels. We thank our corporate partners for their commitment and support of our organisation and the members we serve! MGA TMA’s main focus in FY2019 has been to consolidate its timber and hardware merchant membership. MGA TMA has been further strengthened in FY2019 with the help and support of timber and hardware suppliers. Many Corporate Partners also enable MGA and MGA TMA to provide significant member benefits that save members money; including all insurance needs (Adroit Insurance & Risk and AB Philips) and energy efficiency needs (Aussie NRG).
mga.asn.au | 2019 | Annual Report
MGA Corporate Partners DIAMOND
PLATINUM
MGA Board meets with MGA Corporate Partners in November 2018.
GOLD
SILVER
BRONZE
ASSOCIATE
WAREHOUSE AND BRAND PARTNERS tasmanian independent retailers
MGA TMA
12
ANNUAL REPORT
Legal and HR Team MGA and MGA TMA members continually advise staff that MGA’s Legal and HR team “Make Life Easier” for them. MGA prides itself on the fact that this essential service is available for members “in house” and readily available to answer any queries no matter how small or big. Led by National Legal Counsel for Workplace Relations, Marie Brown, our Legal and HR team has formed very strong and trusting relationships with members all over Australia. Its because MGA is our members “own” organisation – an employer’s union – MGA’s sole purpose is to protect and assist its employer members by delivering excellent support services!
the annual National Wage Review, numerous submissions to state and federal governments, largely advocating against any additional red tape and cost burdens to do business including; Productivity Commission Inquiries, Senate Committee Inquiries, Fair Work Commission liaison and State Trading Hours matters.
MATTERS OF CONCERN ADDRESSED BY THE LEGAL AND HR TEAM REDUCING SUNDAY PENALTY RATES The second year of the reduction in Sunday penalty rates commenced in FY 2019. The rate was reduced from 195% to 180% and will be reduced further in FY2020 from 180% to 165% (175% for casuals). When the penalty is reduced by 50% to 150% on Sundays, this will save members around Australia $147m per annum in wages (compared with 200%) enabling members to employ more staff, have some time off themselves and invest back into their businesses.
Legal and HR Services — Hours by Topic July 2018 to June 2019 Agreements Bulling Change of Details Employee Issues General Leases Licencing Liquor Litigation Policies Public Holidays QLD Trading Hours Submissions Transmission of business Wage Claims Wages and Conditions Workcover OH&S
Full-time and part-time employees
0
200
400
600
800
1000
1 July 2019
180%
› 165%
1 July 2020
165%
› 150%
HOURS
Legal and HR Services — Contacts by Topic July 2018 to June 2019
Casual employees (inclusive of casual loading)
Agreements Bulling Change of Details Employee Issues General Leases Licencing Liquor Litigation Policies Public Holidays QLD Trading Hours Submissions Transmission of business Wage Claims Wages and Conditions Workcover OH&S
1 July 2019
185%
› 175%
1 July 2020
175%
› 150%
SATURDAY AND EVENING PENALTIES – ANOTHER COST TO DOING BUSINESS 0
500
1000 1500 CONTACTS
2000
2500
Aside from handling a large quantity of queries from members on a day to day basis, the Legal and HR team also engage in Employment Law seminars, members surveys to conduct
mga.asn.au | 2019 | Annual Report
In late 2018 the Fair Work Commission heard an application from the SDA seeking increases of 25% to Saturday and weekday evening penalties. Despite MGA’s best efforts and significant allocation of funding, along with other industry associations and retailers, to oppose this application, the FWC found in favour of the SDA application to increase Saturday and late evening penalties.
ANNUAL REPORT Given that over 65% of MGA members staff comprise of casual employees, it was imperative that MGA strongly oppose this application. Stuart Wood QC and his barristers were engaged to act on behalf of MGA and all other unified stakeholders, including the ARA. The SDA application was successful in increasing penalties from 125% to 150% on weekday evenings and increasing penalties from 135% to 150% on Saturdays. These increases will add an additional cost burden of $84m in wages across our industry sector around Australia for no additional productivity gains.
ANNUAL WAGE INCREASE
13
very large overseas retailer should not be allowed to come into Australia and be allowed “free kicks” from the state government to purchase cheap land, have it rezoned to retail and then build a massive out of centre development. A development that will dramatically affect the sustainability and viability of family and private businesses who have abided by the rules and invested their hard-earned into their businesses to serve their customers. MGA is supportive of Kaufland coming into Australia so long as business practices are fair. MGA’s members are not afraid of competition, but there must be a level playing field. Kaufland should only be allowed to trade in Activity Centres just like all of us – not out of centre.
For the third year in a row, the Fair Work Commission Annual Review Panel handed down its decision and granted all employees paid under the award system an increase of 3.0% for FY2020. This adds to the previous two years of combined increases of 6.8%, totalling 9.8% in increases over three years.
MGA’s Marie Brown and Meena Iskander, together with many members and industry stakeholders, fought to oppose this unfairness by mounting a case with the Victorian Planning Review Panel appointed to deliberate on Kaufland’s applications to rezone 5 of six sites selected in Victoria.
FWC Commissioner Iain Ross stated in his address that “he saw no evidence or facts to suggest a 3% increase for FY2020 would have an impact on employment”. There is nothing further from reality than in the retail sector where “underemployment’ has become the norm owing to high wages and increased penalties. MGA will be preparing to gather facts, evidence and data from members to demonstrate in the next National Wage Review in 2020 that there is considerable hardship being experienced owing to these wage increases.
After 400 hours of MGA work and expenses for Barristers and planning specialist amounting to $120k the Victorian Planning Review Panel recommend that 5 of the 6 Kaufland applications be accepted resulting in a 115,000 square metre warehouse in Laverton, Victoria being constructed.
This 3% increase, announced in May 2019, was much higher than anticipated and coupled with the 3.4% increase last year will mean wages costs for our members have become very concerning, and no doubt will have a serious impact on the survival of many businesses.
Governments at a local and state level continue to be disingenuous saying that family and private businesses are the engine room and backbone of the economy, but not for one moment considering the impact of their Kaufland decisions on these same businesses.
FAMILY VIOLENCE LEAVE APPLICATION – UNPAID The SDA made an application to the FWC to provide that employers allow for paid time off work for employees to take family violence leave. MGA opposed the application whist recognising this is an important social gesture; nevertheless, it was a cost to employers that was untenable. The FWC accepted this argument and adjudicated that Family Violence Leave be granted but unpaid.
MGA Legal team attending a Kaufland Planning Panel hearing in February.
TIME OFF WORK FOR EMPLOYEES TO DONATE BLOOD – UNPAID In 2018, the SDA made an application to the FWC to provide that employers allow for paid time off work for employees to donate blood. The FWC accepted this argument and adjudicated that taking leave for blood donations be granted but unpaid.
KAUFLAND – 4TH LARGEST RETAILER IN THE WORLD Kaufland has purchased land in Adelaide SA to build a very large 7000 square metre outlet to sell anything from cheese slices to car tyres. MGA embarked upon a full-scale program to oppose Kaufland entering Victoria in unfair circumstances. In other words this
Former MGA President Rod Allen mounting a campaign against Kaufland.
14
ANNUAL REPORT
MGA Industry Training challenged by disruption MGA continuously encourages members to focus on staff training to maximise capability and performance in the workplace. Over the past 12 months, many members have indicated their reluctance to train their staff. The current industry culture of not investing in staff by training them is a mindset MGA is endeavouring to shift. Aside from a succession plan, staff training will lead to higher-skilled and capable staff who perform at higher levels and better cope with competition and foster business growth. MGA Industry Training sales in FY 2019 were very challenged by disruption from competitors, lack of member relevancy, inadequate marketing and promotion focus and insufficient skill and engagement capability toward training uptake, resulting in very poor sales. The budget was significantly reduced in FY2019, to begin with, and the sales result barely achieved 50% of its budget.
The 2019 Training Course Guide has played a very important role in raising MGA training solution awareness with members; however, uptake of courses, other than compliance courses, has been very poor. The 2020 MGA and MGA TMA Training Course Guide will be launched in December 2019.
2019E
E GUID
COURS
Practical.
al.
Practic
rtive.
Suppo
MGA training is both online and face-to-face. There are 48 online professional development courses and 39 safe work instructions that can be easily coordinated and managed with staff in a “Manage Training System� (MTS). It was difficult for members to relate to an MTS. There are also 7 Work Health and Safety courses available in the training portfolio. MGA wishes to thank Adele Dyson who has delivered Responsible Service of Alcohol (RSA) Training courses in northeastern Victoria on behalf of MGA for the past nine years. Adele has driven RSA training course awareness and has become a well-known RSA trainer in regional Victoria.
mga.asn.au | 2019 | Annual Report
ive.
Interact
8 479 1800 88 a.asn.au g www.m
Interactive.
1800 888 479 www.mga.asn.au
2019
COURSE GUIDE
COURS
Practic
al.
Supportive. Interact
1800 88 8 www.m 479 ga.asn. au
ive.
2019
E GUID
Suppo
rtive.
E
ANNUAL REPORT
15
Advocacy MGA Federal The Federal Coalition Government has worked very hard to drive positive initiatives to encourage the growth of the family enterprise and private business sector. MGA has engaged with the Federal Government on several matters including high energy costs, Unfair Contract Terms, reduction in company tax from 30% to 25% for business with sales of $50m or less, Industrial Relations reform, the high costs and impediments to employing staff and so on.
MGA WORKS TIRELESSLY TO ADDRESS MATTERS EFFECTING MEMBERS BUSINESSES
Portfolios were once again shuffled during the year with the Small Business portfolio moving from Nationals Michael McCormack, who became Deputy Prime Minister (replacing Barnaby Joyce) and Minister for Infrastructure. Staunch family enterprise and private business supporter, Hon Craig Laundy then became Minister for Small Business, Workplace and Innovation. Minister Laundy has a deep understanding of the needs of small business having been involved in a family hospitality business all his working life before entering politics. Soon after in 2018, Senator Michaelia Cash became Minister for Small Business and Employment, a Ministry Senator Cash has held before. Minister Cash was also reinstated into the Coalition Cabinet, which is tremendous for Small Business to be represented at that level.
ACCC engagement Competition matters, energy costs, shopper dockets capped at 4 cents.
Competition Law Changes Inclusion of “the effects test” into section 46 of the Competition and Consumer Act.
Least cost routing Raising awareness that MGA members are being forced to pay very high merchant fees owing to the tap and go phenomenon. Least Cost Routing will allow merchants to seek out the most economical charging route for payment. eftPOS is trying to penetrate this duopoly between Mastercard and Visa by providing a routing option that is 40% the cost of a credit card transaction.
MGA has had a very good record of working with all sides of government when advocating on behalf of members and putting forward its various policies for family and private business growth in Australia.
Jos de Bruin, eftpos Chief Commercial Officer Mark Rayner and eftpos Executive Manager Corporate Affairs Warwick Ponder.
MGA Board with Small Businesss Minister Michaelia Cash.
Illicit Tobacco Tobacco sales generate over $2b in sales in the independent supermarket and liquor sectors. Approximately 10% or $200m in sales are lost owing to the availability and sale of illicit and illegal tobacco. The continuing 12.5% twice-yearly excise increases in tobacco pricing is forcing the cost of tobacco products to rise significantly, driving consumers to cheaper alternatives – illicit tobacco. Tobacco has become a source of criminal currency given its value, size and weight. Members have reported numerous thefts and break-ins at a great cost to the industry, including exorbitant insurance costs.
MGA Board at Parliament House, Canberra.
16
ANNUAL REPORT
MGA has been lobbying the Federal Government to stop increasing excise on tobacco products and doing something about illicit and illegal tobacco in the market place. E-Cigarettes and personal vapourisers MGA continues to advocate for a consistent national approach to retailers’ stocking and selling E-Cigarettes in a regulated retail environment rather than an unregulated online market place. Country of Origin Labelling (CoOL) CoOL became law from 1 July 2018. At a time when state and federal governments are advocating for less red tape and cost burdens, this initiative has proven to be expensive, resourcehungry and very time-consuming. While MGA is supportive of the intent, our lawmakers did not take into account the significant cost to MGA members to comply including the purchase of new electronic scales and labelling configured to fit the additional labelling information. Electricity Once again, the number one member concern in FY2019 has been the crippling cost of energy to their businesses. The Federal Government put forward a plan in mid-2018 that would have provided for “cheaper and more reliable electricity for Australian businesses and families”.
The final ACCC “Electricity Pricing” report was delivered to Treasurer Morrison in June 2018. After almost 12 months of extensive community consultation, the ACCC captured compelling facts, evidence and data from communities all over Australia and were able to make several recommendations which have been accepted by the federal government and have been included in the National Energy Guarantee (NEG) strategy to reduce electricity prices in Australia. MGA is disappointed that many of the ACCC recommendations were either not made or put on hold owing to political reasons between the states and territories and the federal government. Electricity cost prices are now higher than ever!
OTHER MATTERS Company tax reduction – from 30% to 25% MGA advocated strongly toward company tax being reduced for members. From 1 July 2018 the company tax reduction was extended to companies with a revenue of $50m or less. Company taxes will be further reduced to 25% in 2020/2021. Access to justice for small business MGA, together with industry stakeholders, was successful in gaining support from the Labor party and Greens to put forward a Bill supporting access to justice with No-Cost orders for competition matters. MGA also thanks Kate Carnell, Australian Small Business and Family Enterprise Ombudsman and her office for the support shown toward this achievement. Industry training and development MGA has continually advocated for federal and state government support for vital training funding to enable a lift in skills and capability and workplace performance as well provide for members succession planning and alleviating potential mental health issues
Prime Minister Scott Morrison, Minister Kelly O’Dwyer and Jos de Bruin.
Unfair contract amendments MGA has continually advocated for fairer contract terms to protect members businesses from unsavoury supplier behaviours. MGA advocated for the threshold to be increased to $1m, as well as, tightening of contract terms and lifting of eligibility to banks and contractors. Music licensing in the supermarket retail sector MGA supports any suggestions to assist members in reducing red tape and costs associated with piping music into stores. There was a proposal put forward for all music licensing to occur under the one roof – One Music. MGA lodged a submission seeking more information and is yet to be convinced that One Music is in the best interests of members.
ACCC’s Mick Keogh (3rd left) and Rod Sims (6th left) meets with the MGA Board in Canberra.
Single Touch Payroll Single Touch Payroll became effective for small businesses from 1 July 2018 if members have more than 20 employees. From the 1 July 2019, all members will be required to send their payroll and superannuation information to the ATO every payday. Chain of responsibility – new laws will affect retailers The chain of responsibility concept initially developed out of a recognition that unlawful behaviour by truck drivers is
mga.asn.au | 2019 | Annual Report
Victorian Shadow Environment Minister Nick Wakeling and MGA’s George Kovits.
ANNUAL REPORT influenced and often controlled by the actions of other parties. Chain of responsibility laws, therefore, seek to provide that these other parties cannot encourage, create incentives for, demand or allow drivers to undertake unlawful actions that may cause harm in the community. This is yet another example of red tape burdens being forced upon MGA’s members. Very little to no consultation took place for MGA to express the views of its members. MGA has advised members of their obligations.
17
ACCC Small Business Director David Salisbury, ACCC Deputy Chairman Mick Keogh and ACCC Director Kristie Piniuta.
FEDERAL WORKING RELATIONSHIPS • Australian Competition and Consumer Commission (ACCC) • Treasury Department • Australian Tax Office (ATO) • Fair Work Commission (FWC), Registered Organisations Commission (ROC)
• National Measurements Institute • Fair Work Ombudsman (FWO) • Australian Small Business and Family Enterprise Ombudsman (ASBFEO)
MAJOR INDUSTRY CONCERNS • Rapidly Increasing Energy costs – rated the number one concern by members
• Industry Mental Health • Illicit and Illegal tobacco • Cyber Security
INDUSTRY INVOLVEMENT – COMMITTEES, BOARDS, AFFILIATIONS AND INDUSTRY ASSOCIATIONS • ACCC – Small Business and Franchise Consultative Committee
• Coalition of Small Business Organisations of Australia – MGA is a Director of COSBOA
• Australian Small Business and Family Enterprise Ombudsman (4 working groups)
• Industry Skills Council Australia • Prime Ministers Committee for Cyber Security • National Measurement Institute of Australia • Standards Australian – Unit Pricing working group • Franchise Code of Conduct consultation committee • Black Economy Task Force – consultation • Queensland Small Business Advisory Council • Victorian Liquor Control Advisory Committee (LCAC) Statutory state liquor body
• ACT Liquor Advisory Consultative Committee Statutory Body • WA CDS Taskforce
MGA Board members with Greens Senator Nick McKim in Canberra.
Small Business and Family Enterprise Ombudsman (SBFEO) We thank the Office of the ASBFEO for strongly advocating on behalf of small businesses in the areas of banking, unfair contracts and workplace matters. MGA is very closely connected with the office of the Small Business and Family Enterprise Ombudsman. MGA is a member of 4 out of seven working groups addressing matters such as energy costs, workplace relations, industry training and unfair contracts. We sincerely thank the Ombudsman, Kate Carnell, for the opportunity to engage and be consulted on many matters of concern to MGA and MGA TMA members. Australian Competition and Consumer Commission - ACCC MGA is very proud to have an outstanding working relationship with the leadership team at the ACCC, particularly, Chairman Rod Sims, Deputy Chair Mick Keogh and various ACCC Directors and General Managers. MGA is a member of the ACCC Small Business & Franchise Consultative Council of which Mick Keogh is Chair. MGA thanks the ACCC for this privilege to be a part of this outstanding cohort of industry leaders. MGA has engaged with the ACCC about many matters in FY 2019 as follows:
• Bunnings dominance and exclusive dealing with brands such as Stanley and Makita
• Petrol Shopper Dockets enforceable undertaking continues • Queensland Rail acquisition of Aurizon by Pacific National – impact on MGA members in FNQ
• Authorisation sought by BP and Caltex – merge and Woolworths Shopper Dockets and Rewards
• Electricity Price increase Inquiry • Country of Origin Labelling • Five year review of Consumer Law • Excessive credit card surcharges • $1 per litre milk inquiry
Australian Small Business and Family Enterprise Ombudsman, Kate Carnell.
18
ANNUAL REPORT
MGA attends trade mission to “start-up” nation Israel Jos de Bruin was invited by the former NAB Chairman, Ken Henry, to attend an Innovation Trade Mission to explore the “opportunities in the start-up nation”, Israel between March 23 and 30 2019. The trade mission comprised a diverse group of Australian industry leaders, entrepreneurs and business advisors keen to learn about the things driving Israeli culture toward starting up, nurturing and growing businesses in the food tech, agri-tech, cybersecurity, automotive tech, retail tech and medi-tech sectors. The purpose of MGA’s attendance, as the only “family business” representative, was to represent MGA members and the small business sector and to explore the culture and practices of how the Israeli
mga.asn.au | 2019 | Annual Report
Spark Beyond, Tel Aviv, Israel.
Government, universities and family enterprises and private businesses work collaboratively together to help start, maintain and rapidly grow businesses. Israel is now known as the new Silicon Valley with all world-renowned tech and manufacturing business brands locating offices in Israel to be close to the extremely advanced technological Israeli culture. The philosophy is, “if there is a problem there will be a computer-based solution to solve it”. There is no algorithm too difficult to develop.
What soon became apparent is that wellresourced big businesses were not only embracing a digital culture but driving it by allocating vast sums of resources to research and development. The insight to bring back to Australia is the great need for our Australian family businesses to be nimble, technologically agile and part of a dynamic digital culture, combined with an intensely focused customer service approach if they are to future proof their businesses. According to the World Economic
Jos de Bruin —MGA CEO and Sir Ronald Cohen — Founder of Venture Capital – APAC.
Forum, by 2022, 60% of the global GDP will be digitised. As digital technology increasingly permeates every aspect of business, organisations are being forced to embrace digital transformation as an essential part of their future. From data-driven decision-making to operations, communications and customer engagement, new tools and technologies are redefining the way business operates. Emerging technologies such as AI, blockchain, Internet of Things (IoT) and more are helping pioneering executives and entrepreneurs to disrupt
the established economic order. MGA had the opportunity to engage with many incredible business start-ups and growth businesses including, Quantum computing, Checkpoint Cybersecurity, Spark Beyond AI, Netafim Agri Tech, various venture capital firms, finance solutions and so on. MGA also met with two high-tech start-up companies involved with revolutionising supermarket shopping by making it easier, more fun and more efficient by using technology-based solutions.
Exploring seamless customer sales transactions.
MGA CEO — Jos de Bruin and NAB Executive General Manager Micro & Small Business — Leigh O’Neill.
Tel Aviv University.
Cullinary innovation.
20
ANNUAL REPORT
National Australia Bank National Australia Bank is an important and valued MGA Corporate Partner. MGA continues to be an active member of the NAB Customer Service Advisory Council led by NAB Executive General Manager for Micro and Small Business, Leigh O’Neill. Topics discussed and addressed include; the Carnell Report into Banking and Small Business, Banking Royal Commission, simplification of the NAB small business loan contracts and mental health of small business owners also remains a major area of concern. COSBOA – Council of Small Business of Australia MGA is an active Board Member of the COSBOA Board. The COSBOA Board of Directors has been increasingly focussed on delivering outcomes on behalf of its family enterprises and private business members. COSBOA’s profile through the hard work of CEO Peter Strong, continues to increase with Federal MPs’ but so too with the media. Some of the main family and private business issues COSBOA is pursuing are, Industrial Relations reform, impediments to small businesses employing staff, cybersecurity, Unfair Contract Terms – threshold at $1m; superannuation administration, favourable taxation policies – company and personal tax reduction, Competition Law Reform – sec46 misuse of market power – effects test and debilitating electricity prices. The COSBOA Board meets every month. Twice yearly face to face and the balance via teleconference. The COSBOA AGM and annual council meeting was held at the Kurrajong Hotel Canberra in October 2018
States MGA and its state committees continue to actively engage with State Ministers, Shadow Ministers and Members of Parliament. MGA and MGA members have built strong working relationships with state and territory governments over the past 12 months raising matters and issues concerning our members in each state. Several submissions have been developed and lodged by MGA in response to a variety of enquiries conducted by various state government departments.
WESTERN AUSTRALIA The Labor Government led by Premier Mark McGowan, supported by Industrial Relations Minister Bill Johnston, Small Business Minister Paul Papalia, Minister for the Environment Stephen Dawson as well as Small Business Commissioner David Eaton have engaged with MGA on a variety of matters including;
• Electricity prices – search for affordable solutions. • Trading hours issues – oppose further liberalisation of trading hours.
»» Continue to oppose extending Sunday and Christmas season trading hours.
• Packaged Liquor – oppose the development of “big box”
outlets (Como) and legislate that Liquor outlets cannot be larger than 400 square metres.
• Container Deposit Scheme – MGA is a member of the Task Force – scheduled to commence June 2020.
• Plastic bag bans commenced 1 July 2018. • E-Cigarettes – allow for sale – currently banned. • Payroll tax – increase threshold and decrease %. • State relationship – WA Economic Regulation Authority. • MGA WA Liquor – strong Legal and HR support being provided.
MGA WA members include:
• Ross Anile – IGA Fresh Roleystone and MGA Director (from February 2019)
Small Business Ombudsman Kate Carnell, Minister Michaelia Cash and the COSBOA Board in Canberra.
• Greg Brindle – IGA Wembley, Canning Bridge and Applecross • Greg Rice – IGA Ballajura • Pierre Sequira – IGA Como • Rob Halvorsen – IGA Canningvale, Riverton and Baldivas South • Tony Macris – FoodWorks Forestfield • Wally Daly – IGA Belmont • Gino Givitini – Supa IGA Hilton and MGA Director (retired February 2019)
• Inderjit Singh – Singh Group
mga.asn.au | 2019 | Annual Report
MGA WA committee with WA Environment Minister Dawson.
ANNUAL REPORT
21
TASMANIA Owner Michael Reddrop and Operations Manager Lincoln Wymer at the Reddrop annual group conference in Marysville, Victoria between 14 to 18 May 2019.
VICTORIA MGA has a strong working relationship with members of the government and opposition as well as Small Business Commissioner Judy O’Connell and her team. MGA addressed many matters of concern over the past 12 months.
• Unfair entry of Kaufland into Victoria – rezoning cheap
land – promoting out of centre developments – making a mockery of the values of fairness toward family and private businesses!
• Electricity prices – energy crises – search for affordable solutions.
• Payroll tax relief – reduced in country and regional areas by a further 50% to 1.21% – A BIG WIN for regional members! MGA is looking to increase the threshold and reduce % in Melbourne.
• Continue to oppose the introduction of 2 additional
public holidays – Easter Sunday & AFL Grand Final eve.
• Plastic Bag Bans – collaborate with the government to
mitigate red tape or cost burdens – plastic bag point of sale produced for members to help educate consumers.
• Continue to oppose additional liquor and tobacco regulations. • MGA is a member of the Liquor Control Advisory Council (LCAC) – a statutory body.
• State working relationship – Victorian Commission for Gambling and Liquor Relations (VCGLR) and Victorian Department of Health.
• Container Deposit Legislation Victoria – not on the agenda.
AS IA N PL
TI C
N BAG BA BAG BAN BAG BAN
VI CT OR
VICTOR IAN P LASTIC
VI CT OR
IA N PL AS
TI C
Remem ring to bring ber to b Remember your re ber to bring ags! reusable bags! Rememusable byour usable bags! your re LIGHT WEIGH GS T PLAS TIC BA TIC BA LIGHTWEIGHT PLASTIC BAGS BANN T PLAS GS ED FR WEIGH 19. OM NO ER 20 LIGHT VEMB VEMBBANNED FROM NOVEMBER 2019. ER 20 OM NO FR 19. ED BANN broader rnment’s ary This is the first the Gove unnecess step in step in le-use, Thisent. is the first step in the Government’splan broader to redu the Gove ve sing the first ce and environm This is rnment’s and remo and prob remove plan to reduce and remove single-use, unnecessary from our reduce broader lematic single-us plan to plastics plastics and problematic plastics from our environment. lematic from our e, unnecessary and prob environm ent.
MGA liaised closely with Tasmanian members of parliament and the opposition when addressing the Ivan Dean Private Members Bill to increase the tobacco purchasing age from 18 to 21 years.
• Tobacco laws »» Tobacco – Oppose lifting minimum age to purchase tobacco from 18 years to 21 years.
»» support E-vapourisers for retail sale with nicotine. • Advocate for fair competition – independents have a very low market share.
QUEENSLAND The Palaszcuk Government was re-elected to government in early 2018 and governs Queensland in its own right. Shannon Fentiman is the Small Business Minister as well as Minister for Training and Jobs. The MGAQ Committee has a tremendous relationship with Minster Fentiman. The MGAQ Committee, which represents all Queensland MGA Members, is again to be sincerely thanked for their untiring dedication and commitment to making Queensland a better place for independent supermarket owners and operators. MGAQ is very fortunate to have a direct link into the Queensland Government through hard-working committee member Debbie Smith who is a Member of Minister for Small Business, Hon Shannon Fentiman’s, statutory “Queensland Small Business Consultative Council”. Trading Hours Currently, we have completed two years of a 5-year trading hours moratorium. Woolworths and Coles have applied to open their stores in some country and regional areas on the basis that there was a “festival in town”. The MGAQ committee will continue to work closely with Minister Grace and other MPs to bring the Entrepreneurial Pipeline Project to Life before the end of the Moratorium. Waste and Recycling Amendment Bill 2017 Container Deposit Legislation Following the election in 2018, the new Environment Minister, Leeanne Enoch, decided to delay the launch of CDS until 1 November 2018 to make sure there was a seamless rollout of the scheme. MGAQ worked very closely with the Dept of the Environment Director Kylie Hughes to make sure there were no red tape and cost burdens affecting MGA members. We again sincerely thank Mark Meszaros, Drakes Qld State Manager, for representing independents on the CDS Task Force.
Local cafe owners Deborah and Allessio with Victorian Small Business Commissioner Judy O’Connell and Jos de Bruin.
22
ANNUAL REPORT
Plastic bag bans MGAQ again worked closely and collaboratively with the Department – plastic bag bans took place on 1 July 2018. Packaged Liquor for supermarkets – Entrepreneurial Pipeline Project • Developed by former Small Business Minister Enoch (Environment Minister) some 12 months ago and now being driven by Minister Fentiman, the Entrepreneurial Pipeline Project has become a life-saving initiative for MGA members.
NSW Deputy Premier John Barilaro, Jos de Bruin and Treasurer Dominic Perrottet.
• Member – Qld Recycling and Waste Management
Amendment Bill – Container Deposit Legislation committee
• Member – Palaszcuk Government’s Allowable Shop Trading Hours Act review reference group
• This initiative, when brought life through legislation, will
enable members to stock and sell local Queensland wines beers and spirits finally providing members customers with a “whole of meal” solution and allowing them to compete with the chains.
• Ministers D’Ath, Trad, Dick, Grace, Enoch and Fentiman
• Member of the Minister Fentiman’s Small Business Advisory Council (Statutory) – Debbie Smith
MGAQ Committee – very active in consulting with the government and its agencies • Wayne Mason – FoodWorks Queensland State Manager
• Chris Antonieff – FoodWorks Oxley • Debbie Smith – FoodWorks – 3 x Toowoomba • Steve Baranowski – Friendly Grocers Group – National Operations • Fred Elisha – IGA Xpress Palmwoods • Mark Meszaros – Drakes Supa IGA • Peter Lee – Ritchies Supa IGA • Peter Piccone – Supa IGA Cairns • Roz White – Whites IGA Group Sunshine Coast (4) • Terry Slaughter – IGA Springfield Lakes
all support this initiative to help grow Queensland family businesses.
• The MGAQ committee is working closely with the Minister for Small Business and the Executive Director for Queensland Small Business to find a solution to this debilitating gap and unfair chain store advantage.
Inconsistent planning and infrastructure (and development) practices • Unfair entry of Kaufland into Queensland – ignoring the welfare of small businesses
NEW SOUTH WALES
Industry skill and capability training support – Minister Fentiman
MGA continues to work with the NSW Government to reduce red tape and cost burdens. Matters MGA has dealt with include the Container Deposit Legislation – launched 1 December 2018. As per the annual report last year, has been an unmitigated disaster for our members in NSW, particularly, along the NSW and Victorian border.
Qld State working relationships • Queensland Industrial Relations Commission (QIRC)
• Queensland Department of the Environment – CDS and plastic bag bans
QUE
E
P L A SN S L A N D BA TIC LIGH
G BA N
TWEI GHT PLAS TIC BA GS BANN ED FR OM 1 JULY . Reusab le, ec o frien alterna dly, tiv availab e bags ar e le for purcha se he re.
Drakes Mark Meszaros demonstrating their response to the QLD plastic bag ban.
Minister Fentiman opening Queensland Small Business Week.
QLD Small Business Champion Maree Adshead, Hopper Group’s Raellene Hopper and Roz White.
MGAQ Committee at the Alice Street Park Hotel, Brisbane.
Debbie Smith, Maree Adshead, Joe Eid – Foodworks, Mark Meszaros – Drakes.
ANNUAL REPORT
MGA sincerely thanks the NSW Small Business Commissioner, Robyn Hobbs and her team for their ongoing support and search for solutions. The NSW CDS has been a dysfunctional and polarising system.
23
NSW Small Business Commissioner Robyn Hobbs with MGA members at CDS meeting.
MGA continues to work for members along the NSW–Victorian border assisting them to gain access to the temporary relief package provided by the NSW government to assist with massive loss of sales and profits owing to loss of business to Victoria.
• Payroll Tax – threshold raised to $900k, but % must be reduced.
• Plastic bag bans – MGA is available to collaborate with the NSW Dept for the Environment to help mitigate the risk of cost burdens to members.
• Member of the NSW Tobacco Control Act Committee »» Ongoing initiative MGA is pursuing – change the current
NSW Tobacco Act to change the words “sell tobacco from one cash register to one point of sale to transact tobacco products”.
»» Continue to support legislation for E-Cigarettes – allow for the retail sale of E-Vapourisers with nicotine in a regulated environment rather than online.
• Member of NSW Planning and Zoning Development committee – engagement concerning a new approach to sustainable developments. • Member of NSW Small Business Commissioner’s Small Business roundtable group.
• Member of the NSW Planning Minister Environment and
SA – Foodland CEO Con Sciacca and Marketing Manager Christopher Villani accepting this year’s Roy Morgan award.
NSW Minister for Small Business Damian Tudehope and MGA CEO Jos de Bruin.
»» MGA opposes suggestions to restrict the sale of tobacco products to geography and times.
»» MGA opposes an increase in tobacco license fees. »» MGA supports E-vaporisers being stocked and sold in a regulated environment.
• Packaged Liquor License Fees – constant engagement
by MGA Liquor Committee Member Peter Karkazis to keep fees down.
»» Also raising concerns regarding entrapment laws and RSA training improvements.
• Container Deposit Legislation – effective 1 July 2018 –
implementation was straightforward as the scheme accepts all containers of all sizes – unambiguous.
• MGA is a member of the ACT Liquor Review Committee (Statutory Body) – Peter Karkazis is a member.
Planning reform group.
SOUTH AUSTRALIA • Liquor Licensing in South Australian Supermarkets . • The SA Government has legislated for the introduction of
packaged liquor sales in supermarkets which is strongly supported by MGA. The changes follow an independent review of the licensing laws and will be introduced in stages. Regulations have been drafted and will be released sometime late 2019.
• Tobacco – support E-Vapourisers to be stocked and sold in a regulated environment.
• Oppose further liberalisation of trading hours – driven by the Marshal Government and the chains – members have been successful in lobbying the opposition and cross benches to disallow any trading hours liberalisation.
• Energy crisis has been somewhat alleviated but still
continues to create hardship for many MGA members.
ACT • Planning and zoning issues – advocate for fair competition – independents have a very low market share.
• Tobacco – ongoing matters of concern.
NORTHERN TERRITORY • George Kovits, MGA Liquor President, together with members
in Alice Springs and Darwin have been engaging with the NT Government regarding serious and draconian packaged liquor measures that will affect the viability of members businesses.
• The NT Government wishes to introduce a cap on packaged liquor licenses and wants to introduce a minimum price on alcohol, based upon a standard drinks formula.
• The NT Government is also considering to mandate that a
packaged liquor department in stores is to be separate from the supermarket or that packaged liquor sales do not exceed 25% of the total store grocery and liquor transactions. This may impact upon MGA members losing their right to sell packaged liquor.
• MGA is also advocating against a Dan Murphy Liquor Barn
proposal to build a 1400 square metre store in Darwin. A business of this size goes against the value of responsible service of alcohol in what can be described as a vulnerable location such as Darwin. A Box this size will simply supplant packaged liquor sales from existing businesses in Darwin – it will not generate additional sales.
• MGA is engaging with the NT Government and members.
24
ANNUAL REPORT
Communication MGA’s higher purpose – “Making Life Easier” is a focus within MGA. MGA and MGA TMA endeavours to delight members with excellent services and support. MGA and MGA TMA’s websites are constantly refreshed to provide the latest news and information. The livery and branding for all other forms of communication was modernised and made more relevant for members. Facebook and LinkedIn continue to be MGA’s preferred social media tool for communication. MGA’s Independent Retailer Magazine is produced eight times per annum, E-Alerts, Fortnightly E-Checkout newsletters which are sent to over 2300 members have been continually refreshed and upgraded to maximise readability and relevance for members.
of concern and make people aware of the issues affecting members businesses. Whether it be TV (Kaufland), National and State Radio (Trading Hours, IR Reform, Competiton, Kaufland) or newspapers. MGA has been exposed through the following media – AFR, The Australian, Courier Mail, The Age, The SMH, ABC Radio National, 2GB, 4BC, 2UE, GPR, Channel 9, Channel 7 and Channel 10.
MGA TMA’s monthly newsletter and other communications are also kept modern and inviting to read.
Comment is being sought from MGA on a variety of issues and matters during the year including the National Wage Review, Illicit Tobacco, Kaufland – Planning and Zoning, Competition Law reform – section 46 – the effects test, reduction in Sunday penalty rates and the deregulation of trading hours in South Australia, Queensland and Western Australia.
PUBLIC RELATIONS AND MEDIA
MGA TEAM OF PROFESSIONALS
MGA has again been active in the media to expose matters
As mentioned in the Annual Report last year, each year is different but presents similar challenges to the last. The independent retail sector is constantly changing, members businesses have become more exposed to workplace, commercial and competitive challenges than ever before and industry skills training continues to lack government direction. MGA and MGA TMA is a unique organisation, “punching well above its weight” some would say. MGA is a highly energetic and agile industry association. MGA’s 14 staff emulate an unrivalled passion for MGA and MGA TMA’s family enterprise and privately-owned business members. MGA’s limited resources are put to very good use in addressing the many issues members face each day in their businesses! MGA is extremely fortunate to have the committed and professional Board members, Retailer Committee members and staff available to support its members!
mga.asn.au | 2019 | Annual Report
MGA’s team, December 2018.
ANNUAL REPORT
25
Industry Community Grocery and Liquor Association
The Annual MGA GALA Ball Held in August 2018 at the Regent Theatre Plaza Ballroom in the Melbourne CBD was very successful with over 375 industry people attending and raising over $40k for the Reach Foundation.
GALA committee industry leaders.
The Grocery and Liquor Association (GALA) was formed some 77 years ago as a community fundraising arm of Master Grocers Australia (MGA). GALA is incorporated under MGA and is a voluntary organisation dedicated to bringing our wonderful industry together for fellowship, networking and importantly, supporting flagship community support organisations, namely the Reach Foundation in Victoria and NSW, Telethon 7 in WA and Little Heroes in SA.
Paul and Kylie Holmes – Bulla.
Anthony and Monique DiFiore – Adroit Insurance & Risk.
Nick and Karen Cook – Foodworks Mt Beauty.
David Hounsome, Angela Romas and Danielle Bakes – Edgemill.
Deborah Barrese, Marcella Stern, David Hutchison, Emma Fisher and Anisha Fell.
Belinda and MGA TAS Director Grant Hinchcliffe and Bill Dragovic, BATA.
Outstanding industry leader and Ritchies CEO, Fred Harrison is the GALA Committee Patron. Fred’s energy and passion for the industry we represent and the good that we do together for the Reach Foundation is inspiring. Fred has a deep passion for being community-minded. The GALA committee consists of a number of grocery and liquor industry leaders who willingly and enthusiastically volunteer their time. GALA conducts major annual industry community and charity events throughout Australia including industry golf days, industry breakfasts and the GALA industry ball, held in Melbourne, in August/September each year. The GALA Committee is made up of the following members we thank them for their dedication and energy to unite our industry for a great community cause.
• Louise Merlino –
Schweppes Ashai
• Helen Maxwell – Ritchies Executive
• John Gay – Metcash Merchandise • Peter Wagner – ALM • Aaron Scalzo – Lion • Frana Tatkovich – ALM/IBA • Jos de Bruin – MGA
• Mark Paladino – MGA • Marcus Acquilina – Mitchelton Wines
• Paul Holmes – Bulla • Theo Stratopoulos –
Independent Retailer consultant
• Steve Sellars – MGA • Madeleine Smith – Reach • Angela Lindrea – Reach
26
ANNUAL REPORT
The MGA Industry Breakfast and AGM Held at Leonda Receptions in Melbourne on 21 November 2018 was a terrific success with several guest speakers and special guests present. Over 100 members, industry stakeholders and friends of industry attended this event. Outgoing MGA Board President Rod Allen was Master of Ceremonies. Speakers included Chris Naish, CEO REACH Foundation, Deputy Fair Work Ombudsman Michael Campbell and NAB Senior Economist Brian MacDonald. The industry breakfast was followed by a members AGM, a Corporate Members meeting with MGA’s Board of Directors and a Board meeting.
The 2019 MGA GALA industry golf day The 77th MGA GALA industry golf day held at the Keysborough Golf Club in Melbourne on March 7, 2019, was another terrific success. Over 100 people attended and teed off after brunch and played golf in the afternoon finishing in time for early presentations and late afternoon dinner. This event raised over $20k for the Reach Foundation. We thank our hardworking GALA Committee for conducting another outstanding Industry event.
Chris Naish – former Reach Foundation CEO.
The Supercart team at the chipping competition.
Sasha Lawrence – Reach Foundation CEO and Jos de Bruin.
Aaron Scalzo – Lion amd Jan Allat.
mga.asn.au | 2019 | Annual Report
John Morris – GM Metcash VIC, George Kovits – MGA Liquor, and Tony Leon.
MC George Kovits and guest speaker Ross Henshaw.
27
ANNUAL REPORT
MGA National Liquor Committee Led by President George Kovits, the National MGA Liquor Committee is an energetic, agile and outcome focussed group of industry retailers and industry stakeholders. On behalf of MGA’s Board and all members, we wish to thank the MGA National Liquor Committee for their dedication and commitment to the prosperity of licensed independent retailers. This committee truly represents family and private business who stock and sell packaged liquor and not the corporate chains and overseas discounters! Packaged Liquor is an extremely important department within licensed supermarkets and of course is paramount for our standalone packaged liquor members.
South Australia The current SA government, after a lengthy independent inquiry, has determined that they will support the recommendations in the report and will allow independent supermarkets to sell packaged liquor if they choose to. Legislation has been passed, and now regulations are at their final stages of drafting. The National MGA Liquor Committee, which meets monthly covered many issues and matters of importance:
• SA – develop regulations for packaged liquor sales in supermarkets. • WA – restrict big boxes to 400 square metres, oppose Dan Murphy development at Como, Perth. • NSW, VIC – promote RSA online for remote users. • NSW, ACT, QLD & WA – Container Deposit Scheme issues and working task forces (WA). • ACT, NSW, VIC – oppose increased packaged liquor licenses fees. • TAS – advocating for a restrictive liquor license for independent supermarkets stores. • VIC – equalise liquor licenses fees – packaged vs general.
MGA fully supports initiatives to reduce any harm that may be caused by alcohol consumption and believes the most effective way to further grow a cultural change toward responsible alcohol consumption is through robust deep-reaching education programs. MGA’s Liquor Committee advocates that increased taxes, increased license fees, increased regulations will not achieve cultural change. Queensland The MGAQ Committee is working closely with the current government to enable independent supermarkets to stock and sell locally produced Queensland wines, beers and spirits to be able to better compete with the chains which are a duopoly. This is essential to be achieved and brought to life before the fiveyear Trading Hours Moratorium comes to an end in 3 years.
Statutory Committees • Queensland Government – Small Business Advisory Council – Debbie Smith (MGA Director) • ACT – Liquor Advisory Council – Peter Karkazis (MGA Liquor Committee member) • Victoria – Liquor Control Advisory Council – Jos de Bruin (MGA CEO) »» Sub Committees – Online / RSA training – George Kovits (MGAL Committee)
Adrian Ricci IBA
Frank Palumbo
NSW State Business Manager
BOTTLEMART
Jeff Harper presenting at the 2018 National Liquor Industry Update.
Fred Harrison, George Kovits and Michael Reddrop.
MGA Liquor Committee
GM LMG Retail Sales & Marketing
Tony Ingpen
Nick Cook
IGA National Liquor Board Chairman
IGA MT EVELYN FOODWORKS Mt Beauty | Yackandandah | Myrtleford
Tony Bongiovani INDEPENDENT RETAILER
Angelo Gianetta
Cellarbrations
INDEPENDENT RETAILER
George Kovits PRESIDENT | MGA
IGA Express
Peter Karkazis LOCAL LIQUOR ACT
Jeremy Goodale
Director
ALM
2018 National Liquor Industry Update attendees.
Victorian General Manager
Tony Leon STEVE’S LIQUOR
Michael Reddrop
Director
REDDROP GROUP CEO
Jodie Louise Gratian INDEPENDENT RETAILER
Gary Woodgate
Kings Family Liquor
INDEPENDENT RETAILER Southern Metro
MGA Liquor Committee meets at CUB.
Kim Satterwaite FOODWORKS National Business Manager Liquor
28
ANNUAL REPORT
Industry Engagement –
“Making Life Easier”
MGA Employment Law Support Services
AUSTRALIAN HAIRDRESSING COUNCIL (AHC) In November 2016 MGA came to a commercial support arrangement with the AHC. Led by CEO Sandy Chong, the AHC, whose hairdresser members are traditionally owner-operated service-focused businesses, entered into an agreement with MGA to provide AHC’s 400 hairdressing outlet members, located in Qld, NSW, ACT and Victoria with Employment Law and HR support, service and advice. The past 12 months have seen dramatic growth in AHC member usage of MGA’s support services with MGA receiving many compliments and praise for the prompt, professional legal advice they have received.
STRIKEFORCE National merchandising and broking company, Strikeforce, employing more than 1500 staff around Australia joined MGA in 2018 as an Associate Member to avail themselves to MGA’s Legal and HR professional expertise.
2018 7—10 July Queensland – Metcash EXPO 28—29 August Sydney – COSBOA Summit 24 August Melbourne – MGA GALA Industry Ball 21 November Melbourne – MGA Industry Business breakfast and AGM
30 November Foodland House Strategy Day
2019 18—20 February Adelaide – IHG Expo and Conference 7 March Victoria – MGA GALA golf day
L: Deputy Prime Minister Michael Macormack with the MGA team at Metcash Expo 2018.
Metcash Expo 2018.
Metcash Expo 2018.
Metcash Expo 2018.
MGA member Tilling Timber 2018 Supplier of the year.
Jos de Bruin, Meena Iskandar and Ann Sanfey.
mga.asn.au | 2019 | Annual Report
Independent Hardware Group Expo and conference, February 2019.
ANNUAL REPORT
29
MGA TMA – timber and hardware As reported in the previous annual report, the Timber Merchants Association of Victoria, established in 1883, was absorbed by MGA to form MGA TMA – Timber Merchants Australia in July 2017. MGA TMA’s National Membership Manager is Ann Sanfey. Ann’s experience, capability and industry knowledge has been vital, in establishing MGA TMA as a truly national timber and hardware organisation. Ann has worked very closely with the dedicated and committed MGA TMA Committee of Management, led by President and owner of Peuker and Alexander, Frame and Truss makers, Peter Alexander, together with MGA’s team of professionals, to create a unique association for timber and hardware merchants. Relationships have been carefully nurtured and industry association relevance established.
The original members are now MGA TMA members who provide a solid foundation for future membership growth in Victoria and other states. There is a strong strategy to grow membership and to grow the support services that MGA TMA wishes to offer members including timber product knowledge training, customer service training and a tailored high-quality Work Health and Safety program that has been developed and is available now that will help members alleviate risk and drive compliance in members’ workplaces.
New developments include a dedicated MGA TMA website, monthly newsletters, a unique technical advisory service, a specific timber industry scholarship program, industry advocacy at state and federal government level and a value proposition that rivals other industry associations. Upon finding that the MGA Board of Directors were independent family-owned businesses like themselves, there was an immediate connection and degree of comfort this idea could be a success. There were no conflicts, as MGA is an organisation that only represents family enterprises and privately owned businesses, similar to the former Timber Merchants Association of Victoria – not large corporations such as Wesfarmer’s Bunnings. At the time, the Timber Merchants Association (TMA) comprised 120 small, medium and large businesses, employing more than 4000 people and generating $2b in sales. TMA members were mostly Victorian with TMA having served its members for over 120 years. The TMA Board wished to become a national organisation with a very strong and robust membership made up of timber and hardware businesses.
2018 Hoo Hoo golf day.
3rd right – long-serving TMA Director Ron Caddy.
Mike Drew BAYSWOOD TIMBER
Clive Dossetor KAREM WOODCRAFT P/L
Peter Alexander
MGA TMA Committee
PRESIDENT Peuker & Alexander
Richard Hill VICE PRESIDENT
Peter Bennett BRITTON TIMBERS P/L
Anita Trengrove BARWON TIMBERS P/L
Hazelwood & Hill
Hugh Turner SMARTWOOD P/L
30
LIQUOR NEWS
NATIONAL
CONNECT WITH US
mga.asn.au | admin@mga.asn.au | 1800 888 479 © 2019 Master Grocers Australia Ltd.
mga.asn.au | October 2019 | Edition 7