CEO REPORT
CEO Welcome
We live in uncertain times! The past months have been very challenging for members throughout Australia. At the time of writing, the state of NSW is in the grips of the COVID–19 Delta variant breakout, with increasing daily cases reported and lockdowns enforced in affected Local Government Areas (LGAs). COVID-19 contact tracing has been enhanced with QR Code checkins becoming mandatory in all Australian jurisdictions for the public to use as a condition of entry into public buildings, spaces and businesses. MGA TMA’s members around the country have procured their own unique business QR Code and have located them at the entry of their stores and at the points of sale for the public to “scan themselves in” before entering or when in the store. Lockdowns have catastrophic economic and social effects upon the many thousands of small business owners and their families who cannot trade and have no way of earning an income and paying their vast overheads. It has been devastating for these business owners, their families and staff. MGA TMA has been very active in voicing members’ concerns to Government regarding staff being properly protected from the COVID-19 virus. Retail workers must be classified as essential frontline workers and, as such, be prioritised for vaccinations. It continues to concern industry association leaders that Victoria, for example, was recently subjected to its 5th lockdown, and was without a small business rescue contingency plan ready to be implemented. MGA and many other Industry Leaders have made countless suggestions to the Victorian State Government and all other governments through various forums, to have a small business rescue contingency plan ready, should such a lockdown occur in respective states again. ‘There is always going to be another lockdown.’ Unfortunately, the concerned voices of many were ignored. Disappointingly
we saw the Victorian Government (and other State Leaders) intent on playing Australia’s most popular game when things aren’t going well, “the Blame Game”. On the 11th of May, Treasurer Josh Frydenburg released the muchanticipated 2021 -2022 Federal Budget. A Budget adopting a fiscal approach - big on spending and big on getting the economy going. Many essential health services were supported with hefty allocations, including Mental Health, Aged Care and National Disabilities. Infrastructure spending continues to be heavily focused on as well. MGA TMA applauds the Government as Small Businesses continue to be supported with extended tax incentives such as Loss Carry backs and Instant Asset write-offs with no limits. Various assistance tools such as an Employment Contract tool and digital solutions coupled with a “Go Local” program help drive consumers into their local businesses rather than online or to the big chains and corporates. MGA TMA continues to work closely with the FWC on several fronts. The Annual Wage Review (AWR) is an enormous MGA undertaking each year. MGA’s AWR submission, together with members research and survey results, advocated for a zero % increase for the financial year 2022. This recommendation was based upon our members already having absorbed increases totalling 11.55% over the past four years. The most recent of which was 1.75% in February of this year. Disappointingly on the 16th of June, FWC Commissioner Justice Iain Ross announced a 2.5% wage increase for FY 2022. Justice Iain Ross also announced that given the distressed
nature of the Retail Sector, this wage increase would be delayed for the Retail Sector to commence on the 1st of September 2021. MGA TMA and COSBOA collaborated with the ACTU, SDA and AWU early in 2021 to apply to the Fair Work Commission (FWC) for a schedule to be inserted into the GRIA, allowing Permanent Part-Time (PPT) Flexibility. The ability to offer PPT employees extra hours at the ordinary rate of pay. The FWC commenced an extensive consultation process to allow other employer groups and parties to have a say. The upshot after almost five months is that the FWC has developed a Draft Determination to disregard the application for a time-limited schedule to be inserted into the GRA and instead has taken the decision to vary the Award to reflect all that MGA TMA and COSBOA has requested regarding PPT flexibility and the ability for employers to offer additional hours of work at the ordinary rate of pay so long as the variation in hours is confirmed in writing prior to the shift commencing. This is now confirmed and enshrined in the Award and will be a massive opportunity for members to de-casualise their workforce, employ more permanent part-time people and offer additional hours of work. Congratulations to all Foodland store owners and the Drakes family supermarket group in South Australia, who once again have topped CHOICE consumer surveys for their amazing shopping experiences. For providing locally produced fresh and gourmet foods and the outstanding manner in which they handled COVID-19 Safe workplaces and shopping environments.
Until next edition – Good Trading! Jos de Bruin CEO MGA TMA Independent Retailers
5
