Issue
02 APRIL 2022
Ravaging floods impact businesses | PAGE 10 YOUR INDUSTRY NEWS PROVIDED BY MGA INDEPENDENT RETAILERS
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OUR MISSION The trusted leading voice of industry that is responsive to member needs in a competitive environment. We employ people of exceptional expertise and determination to deliver valuable service and solutions for our 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
BOARD OF DIRECTORS Debbie Smith (President): Queensland Grant Hinchcliffe (Vice President): Tasmania Graeme Gough: New South Wales Ripple Parekh: New South Wales Ross Anile: Western Australia Terry Slaughter: Queensland Chris dos Santos: South Australia Lincoln Wymer: Victoria Jeff Harper: Victoria
CHIEF EXECUTIVE OFFICER Jos de Bruin 03 9824 4111 E: jos.debruin@mga.asn.au
CORPORATE PARTNERSHIP & MEDIA SALES
Contents 5
CEO Welcome
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Small Business fights for lower merchant fees
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Beem It launches cashback rewards
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Continued product shortages leave shoppers frustrated
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Microgrids could assist communities endure the next disaster
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Ravaging floods impact businesses
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Lismore floods crisis becomes a food crisis
13 Employee resignation and notice: what members should do when an employee resigns 14 Specific WHS risks: dangerous chemicals and notifiable incidents 15
Transferring employees and their entitlements
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Supermarket slips and falls
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When others won’t, Till will
19 Consultation is essential when issuing a mandatory vaccination policy 20
Rod Allen Memorial MGA GALA Industry Golf Day 2022
22 Climate crisis places Australia’s food supply at risk 23
B-cycle virtual launch
24 Capturing loyalty of Generation Z customers
Mark Paladino 0417 264 331 E: mark.paladino@mga.asn.au
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COVID-19 a turning point for retail technology
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A market shift - new grocery venture Milkrun
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Menulog grows grocery and convenience delivery service
DESIGN & PRODUCTION
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SE QLD: Meet the Makers- Food and Agribusiness Network
Cindi Damian 03 9842 4111 E: cindi@mga.asn.au
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Australians fast to vacate cash purchases
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MGA TMA: Plantation grants announced to secure timber supply
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PEFC ruling on conflict timber
FOLLOW US ONLINE www.facebook.com/ MGAIndependentRetailers
33 MGA TMA Advocacy: MUA Strike actions 33
Imports of Russian timber
34 Victorian Packaged Liquor Law change
www.linkedin.com/company/ mga-independent-retailers www.twitter.com/ MasterGrocers
Front Cover: Lismore starts the clean up, as flood water have begun to recede. Residents and workers of Lismore clean up the damage to households and businesses. Story page 10. Image by: Brendan Beirne/Media Mode ©
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tasmanian independent retailers
CEO REPORT
CEO Welcome Welcome to our Autumnal edition of the Independent Retailer Magazine. At the time of writing, many of our members and the communities in which they trade, are in the midst of an unmitigated natural disaster.
The East coast of Australia has been battered with unprecedented inclement and destructive weather events. Southeast Queensland and New South Wales have been particularly devastated by a plethora of unprecedented rain bomb activities causing catastrophic flooding events never seen before. In NSW the Northern Rivers, Hunter Valley, and Sydney itself have been struck an almighty blow with destruction by flood waters and the massive clean up to follow. MGA TMA sends members, member families, and customers our heartfelt best wishes for a speedy return to normality. Easier said than done– but true to the Aussie way, we will stick together, and we will help and support each other through this catastrophe. On the other side of the country, our Western Australia (WA) members experienced their hottest summer on record throughout January and February. Perth recorded 13 days of 40C temperatures in Perth, as well as a record number of days over 35C. Several regional towns broke summer records. Late January 2022, unprecedented heavy rain and flooding events took place in Central Australia, causing key railway supply routes in central
Australia, connecting SA with WA, to be cut off for almost a month.
shielding members from unnecessary bureaucracy and cost burdens.
The WA Border opened on 3 March after locking people in and out of WA for almost two years.
MGA TMA members have a dedicated and highly qualified team of professionals to assist members with back of house issues and matters of concern, and a very capable and competent Board of Directors, MGA National Liquor Committee and MGA TMA Management Committee to assist MGA TMA being vigilant and focussed on matters of utmost importance to members.
Australians are learning to live with COVID-19 with many restrictions now lifted. All state and territories have now achieved double and triple vaccination levels. Accordingly, the need for QR Code check in and wearing of masks has been removed. Many industries such as hospitality, will take a long time to recover. The Russian invasion of Ukraine commenced at the end of February and is impacting global fuel and energy prices as they escalate to unsustainable levels. On a brighter note, MGA TMA congratulates board members Debbie Smith and Grant Hinchcliffe, elected as President and Vice President of MGA’s Board, respectively. The year has commenced at a demanding pace as states and territories develop and fast track their small business recovery and growth initiatives. MGA is an active participant in most state and Federal business recovery task forces and committees, continuing to play a vital role in
MGA’s Employment Law team has completed the Annual Wage Review, lodged with the Fair Work Commission in March, for consideration in the annual national wage case. MGA recommends a minimal wage increase be considered given the volatility of the market, increasing costs to business and increased competition the “big are getting bigger”. Until the next edition MGA TMA wishes all members and families well in these uncertain times. Take care.
Jos de Bruin Chief Executive Officer
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Small Business fights for lower merchant fees MGA TMA, ACAPMA (Australian Convenience and Petroleum Marketers Associations), and other small business and retail organisations have advocated lower debit transaction merchant fees by mandating least-cost routing (LCR) as the default. Following a recent meeting, MGA TMA and ACAPMA have written to Senator Andrew Bragg to again, bring this to the attention of the Treasurer. There is an opportunity for the Coalition to make a firm commitment in the run-up to the Federal election to mandate LCR. This commitment would deliver very tangible benefits to small businesses struggling to recover from the COVID pandemic, amounting to thousands of dollars a year.
mga.asn.au | April 2022 | Edition 2
INDUSTRY NEWS
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Beem It launches cashback rewards Beem It is a loyalty card app that simplifies customers earning rewards by scanning and storing loyalty cards in one location for instant access. A one-stop digital wallet. Launched in 2018, Beem It has over 1.5 members with 200 million connections at more than 500 retailers across Australia. Australia’s debit payments company, eftpos, has acquired Beem It.
The wallet securely stores virtual versions of debit and credit cards, so you do not need to enter your card details or carry a physical card at all to make payments. This is increasingly becoming the consumer choice for payment option. In February 2022, Beem It launched its multifaceted Been Rewards programme that enables the customer to accumulate cashbacks in their Beem wallet when shop in store or via the Beem It app. This cashback rewards feature takes the app beyond its renowned real-time account-to-account payments functionality. The Offers page allows the consumer to browse their favourite stores advising the cashback they can gain. These rewards sit in the form of Beembucks which sits in the Beem wallet until the consumer is ready to deposit into their chose card. Instore, customers can automatically redeem any available offers when using a linked card, while online, customers can browse available rewards directly in their Beem It app, linking them straight to the participating retailers’ web store.
Beem It CEO Mark Britt said “Beem Rewards lifts the lid on a huge number of great offers for Australian consumers, ranging from local coffee shops to styling brands and bespoke experiences that re-connect commerce with purpose.” He said supporting and connecting local Aussie businesses to consumers remains at the core of the Beem Rewards, with a purpose built “map view” enabling customers to discover great offers both nearby, or in a location they select. As with most rewards apps, the funds return to a “jar” within the customer’s wallet which can be cashed out to a nominated debit card. Beem It is now working on additional ways these rewards can be redeemable. For more information on Beem It, visit: www.beemit.com.au
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Continued product shortages leave shoppers frustrated Brand switching is on the rise, putting brand loyalty at risk Supply chain issues continue to impact Australians, affecting both their mood and shopping behaviour, according to new research by Toluna, a leading consumer intelligence platform. Research surveyed 1,031 Australians between 4 to 9 February 2022. Results showed many shoppers are happy to switch brands when their preferred brand is not available, leaving longterm brand loyalty in question. Most Australians surveyed (73%) have recently experienced product shortages because of ongoing supply chain issues. In stores, shoppers continue to experience empty shelves (88%) and buying limits (66%), while online shoppers are experiencing delivery delays (50%) and brand unavailability (51%). When it came to online shopping, almost half (47%) of respondents said they were willing to go back to instore shopping due to products being temporarily unavailable online. Grocery stores appear to be most affected, with 85% of respondents citing availability issues. However, shoppers also report having experienced product shortages in clothing and footwear retailers (19%), homewares (16%), and electrical stores (14%). According to two-thirds of respondents (64%), fresh meat is proving the most difficult item to source, with pantry products (44%), fresh fruit and vegetables (40%), and household cleaning products (33%) also difficult to find.
Brand loyalty and changing behaviours When the preferred brand is unavailable, most (77%) Australians are willing to substitute a new brand. This poses an mga.asn.au | April 2022 | Edition 2
issue for long-term brand loyalty. Across the various categories, shoppers were happiest to switch to a different brand of chilled dairy (54%), household cleaning products (49%), or alcohol (44%) when their preferred brand was unavailable. However, Australians are more likely to shop around in search of their favourite fresh meat (40%), pet food (40%), or baby products (35%). Results also highlighted that half (50%) of respondents now shop in other locations, such as local butchers or farmers markets, that are less impacted by supply chain issues. Just under half (43%) buy extra of the products they need once back in stock, and one in five (20%) are stockpiling products such as canned goods, paracetamol, and toilet paper to boost supplies.
Stressed out and in prep mode More than just an inconvenience, the supply chain issues are affecting shoppers’ moods. Two-thirds (67%) of Australian shoppers feel disappointed and frustrated when they see empty shelves and missing products, and for some, it can make them feel stressed (35%), anxious (36%), or even angry (27%). Australians are also preparing themselves in case they get sick and have to isolate. One in three (30%) have created a ‘COVID kit’ filled with medicines they may need if they get sick, while one in four (26%) are ensuring they have enough pre-prepared food in the fridge, so they do not need to cook if they are feeling unwell. A quarter (27%) of respondents are also ensuring they
have a supply of rapid antigen tests (RAT) available on hand if they need. Sej Patel, Country Director, Toluna, Australia & New Zealand said the ongoing issues with product unavailability are affecting shopping behaviour. “Australian shoppers are clearly frustrated by the continued supply chain issues and are changing their behaviour as a result. Our research shows that people are brand switching more than ever, as well as shopping around to find the items they need. For brands and retailers, this may have serious implications for brand loyalty. “While some shoppers will happily revert back to their favourite brands when they return to the shelves, other shoppers will just as happily stick with the substitute brands they tried. Even once the supply chain issues are resolved, the next six to twelve months will be a challenging time in retail as brands fight to retain new customers while trying to win back old ones.” Source - Toluna
INDUSTRY NEWS
NATIONAL
Microgrids could assist communities endure the next disaster The devastating floods across Queensland and NSW cut off power for hours, limiting communities access to basic amenities and hampering rescue efforts. In Australia, electricity must travel long distances to supply many communities and devastating fires and floods are becoming increasingly frequent from climate change. However, research has shown that by installing renewable energy-run microgrids as a back-up power source, regional communities are ensured that critical energy, fuel, and food supplies are maintained. Microgrids are groups of homes and businesses that use, generate, and share electricity. This enables them to disconnect from the main grid when it fails and continue to operate in a “islanding” mode. There are several microgrid feasibility projects currently in progress across Australia. Energy supply, during and following, any disaster is critical and often the first matter to be interrupted. Issues arise from failures in the current electricity distribution system’s ability to supply communities when it is most needed. For example, the bushfires that burned large surrounds of southeast Australia during the summers of 2019 and 2020, destroyed critical infrastructure in East Gippsland, and left communities without power and telecommunications, with some cut-off for weeks. Loss of power meant an inability to chill food, pay for supplies, charge mobile phones, heat water, and keep cool. Microgrids can provide a reliable, clean supply of energy in areas prone to natural, climate-related disasters. Overseas evidence shows that microgrids installed in Japan have successfully operated after significant earthquakes and storms. The Federal government has invested $50 million over five years for feasibility studies on microgrid technologies through the Remote and Regional Community Reliability Fund. The Australian Renewable Energy Agency has committed $50 million to fund microgrid pilot projects and Western Australia is leading this initiative pioneering use of stand-alone power systems. These are similar to smaller, more contained microgrids completely separate from the grid. Regulatory frameworks need to foster energy sharing and storing, necessary for microgrids to operate. Incorporating
these into Australia’s plans will enable the successful implementation of microgrids. For further information visit: https://www.mdpi.com/20711050/14/6/3186 Source - The Conversation
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INDUSTRY NEWS
NATIONAL NEW SOUTH WALES | QUEENSLAND
Ravaging floods impact businesses In late February-early March, small businesses were affected by unprecedented and devastating heavy rain across northern New South Wales and Queensland. Flooding is one of the largest expenses to businesses, resulting in lost productivity, reduced working hours and losses with resources targeted to recovery efforts. Small businesses not only suffered immediate damage, but also had to manage the prospect of power outages, transport restrictions, loss of customers and/or key staff and disrupted communications.
Flooding caused significant and sustained disruption to many areas, impacting the continuity of many business operations. This natural disaster affected small businesses and workers, once again facing great uncertainty with business costs and employee financial hardships. It can take months for business recovery to occur in these floodimpacted areas.
Hundreds of thousands evacuated in NSW On 3 March, more than half a million people in New South Wales were subject to SES issued evacuation orders or
warnings. Heavy rain and floodwater caused the Hawkesbury River at North Richmond Bridge to breach its banks and cut many roads. NSW experienced unprecedented rain bomb events sustained over several days which led to “dangerous and life-threatening” flooding. Helicopters were engaged to drop off food and supplies to evacuation centres. Torrential rain and flash flooding were also experienced in Newcastle, Hunter, and suburbs such as Shanes Park, Mulgrave, Holsworthy, Londonderry, Vineyard, Picnic Point, East Hills, and South Maroota. People in parts of
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INDUSTRY NEWS
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Killarney Vale, NSW, Australia – March 22, 2021: State Emergency Service (SES) respond to a flooding event in residential street of Killarney Vale on the Central Coast of NSW, Australia. Photo Adam Marshal Shutterstock
Windsor and surrounding villages including Pitt Town and Richmond lowlands were instructed to evacuate as the Hawkesbury-Nepean River system was hit by the deluge. Southwest of the city people in parts of Georges Hall, Chipping Norton, Lansvale, Milperra, Moorebank, Warwick Farm, as well as parts of Camden were ordered to leave.
Dangerous storms smashed Southeast Queensland During the first weeks in March dangerous storm cells shook Queensland resulting in the state embarking upon a mammoth flood clean-up operation. The Bureau of Meteorology (BoM) issued warnings for “giant hailstones”, intense rainfall and damaging winds as storms hit Ipswich and Brisbane. Brisbane, Gold Coast, Toowoomba, Sunshine Coast, and the Scenic Rim were placed on alert, with these areas experiencing sustained wild weather. Southeast Queensland had its highest rainfall on record, with some parts recording 1000mms of rain over just a few days. Significant storms lashed Beerwah and Landsborough areas, with roads saturated and a number of trees uprooted, and fallen powerlines leaving several properties are without
power. Giant hail up to six centimetres in size pelted down in the rural town of Dalby, north-west of Brisbane, with wind gusts of 93km/h recorded. Garbage and debris were seen floating down the streets of the Brisbane suburb of Auchenflower, with residents in disbelief over the disaster.
Shelves run bare At his small store in Mount Isa, almost 2,000km from the flood zones, grocer Joe da Silva struggled to fill his shelves. His fresh produce was gone. Stocks of other basics dwindled, with uncertainty about when the next truck would arrive. Da Silva, who runs Mount Isa’s Foodworks, was far from the hardest hit by the crippling grocery shortages that followed the rising waters across south-east Queensland and northern New South Wales. Da Silva’s situation was an indication of how devastating the floods had been to the state’s supply chains. It also showed the fragility of a system still deeply reliant on key transport links to the south-east. “It’s difficult because we are so isolated from everything … so the moment that there are floods, or fires, or any disaster occurs on the coast, we are the first ones who feel it up here,” he said.
These shortages continued to be most dire in towns and suburbs directly affected by the floods. Evacuees faced acute challenges to obtain food. As floods continued to ravage the east coast, critical supply lines into northern NSW and throughout Queensland were impacted by road closures, limiting how quickly food and groceries could be delivered into flood-affected regions. Given the severe stock shortages for fresh and dry groceries, many food and grocery stores introduced twopack purchase limits for customers in affected regions, including fresh milk, meat and medicine, and one-pack limits on toilet paper and still water. In Lismore, police coordinated a helicopter food drop from Casino to about three hundred flood evacuees sheltering at a church in Coraki. The City of Lismore and many surrounding towns, such Coraki, were completely submerged destroying homes, shopping centres and infrastructure. Lismore was completely submerged with seven food and grocery stores under water. The floods cut off Australia’s busiest highway, the Pacific Highway, and left trucks stranded, with all local freight ceasing until the waters receded. The problem was compounded by the
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NATIONAL NEW SOUTH WALES | QUEENSLAND disruption to rail links and the derailment of a freight train near Gympie, and the flooding of warehouses. MGA TMA members did their absolute best to keep stores open and stocked as was possible but faced significant supply difficulties given road closures.
Lismore floods crisis becomes a food crisis
The Metcash Warehouse did an astonishing job attempting to get deliveries to as many locations as possible, sometimes having to navigate almost impassable road routes. The Fresh Produce markets at Rocklea in Brisbane were completely submerged and could not trade. Metcash, together with many fresh suppliers, set up a fresh produce warehouse at the Dry Grocery Warehouse in Crestmead. These initiatives demonstrate the agility and determination to supply food and groceries to the independent network around Queensland and NSW. In Longreach, Central Queensland, which was well out of reach of the flood waters, some grocery stores had to shut entirely. The Longreach Fruit Barn shut because there was hardly any fresh produce available to sell. This created a knock-on effect for other local businesses, who used it as their source of fresh produce. Longreach FoodWorks owner and operator, Rose Leggett said Longreach had, thankfully, avoided the kind of panic buying seen in cities during the pandemic. This natural catastrophe has left many people suffering significant trauma and hardship. On behalf of all members around Australia, MGA TMA extends our best wishes to all affected members. To members who have lost their businesses and homes in this unprecedented rain bomb and flooding event, wishing you a swift recovery back to normality. MGA TMA stands with our members in flood-impacted regions over this challenging time. Our Employment Law team are available to support and aid members. Please call 1800 888 479 extension 1. Source: MGA, The Guardian
mga.asn.au | April 2022 | Edition 2
Lismore with a population of 45,000 quickly became a town enduring a food crisis. As catastrophic flood waters regressed, four major supermarkets were besieged, and the remaining three had shelves left bare from the devastation that emerged. Resupplies of food and petrol were restricted, with the town’s supply lines being cut off by road. Jeff Sykes, store owner and operator of SPAR Lismore, had his whole shop guttered, and had no option but to throw out compromised food items from their shelves. He was unable to save the spoiled supplies to give away to the community. However, a small amount of tin food was able to be salvaged which was donated to evacuation centres. It is estimated recovery will take up to eight weeks for impacted business to become operational again. Rebuilding the town’s infrastructure could take years.
LEGAL AND IR
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Employee resignation and notice: what members should do when an employee resigns There are specific steps that Members should follow when an employee resigns. This article provides Members information on advisable steps to follow when an employee resigns.
Step 1: Confirm resignation in writing The first step is to obtain confirmation of the employee’s resignation in writing if this has not yet been provided. It is recommended that MGA TMA members ask the employee to provide them with a resignation letter confirming their resignation, the reason for resignation, and their termination date.
Step 2: Determining notice period When a permanent (part-time or full time) employee resigns, they may be required by an applicable award or their employment contract to give notice of termination to their employer. Generally, casual employees do not need to give notice, and their employment ends when they notify their resignation to their employer. In the event that the employee has failed to provide the requisite notice of termination, members may, in some circumstances, be entitled to deduct pay from the outstanding wage component of any termination pay. Members are encouraged to seek legal advice prior to making any deductions from an employee’s pay. (a) Contract of Employment To determine the notice period, MGA TMA members should first look at the employee’s employment contract to see if there are any terms that set out how much notice they need to give when they resign. If there are, these terms in the contract will apply, as long as it is the same or more than the period of notice required under the General Retail Industry Award (the GRIA) or other applicable awards.
(b) The GRIA Suppose the contract does not contain any terms about notice, or there is no written contract in place. In that case, the employer will need to look at the notice period requirements under the GRIA or applicable enterprise/registered agreement. Under the GRIA, the amount of notice an employee is required to give depends on their length of service with the employer. This is contained in the table below:
Step 3: Final pay After the employee has completed their notice period, the Member should pay the employee their termination payment within 7 days of termination (if covered by the GRIA). An employee should receive the following in their final pay:
• outstanding wages for hours they
have worked (including penalty rates, overtime and allowances);
Length of service with employer
Period of notice
Less than 1 year
1 week
Between 1-3 years
2 weeks
Between 3-5 years
3 weeks
More than 5 years
4 weeks
Please note that any periods in which the employee has been employed as a casual employee, or certain periods of unauthorised absence, unpaid leave (such as unpaid parental leave) and unpaid authorised absence, do not count as service for the purposes of determining an employee’s notice period. Members may not wish an employee to attend to their duties or to the work premises during their notice period. Whilst it is generally inadvisable for Members to ‘pay out the notice period’, it may be appropriate to instead relieve the employee from their duties during the notice period with full pay.
• any accumulated annual leave
(including annual leave loading if the employee received this during their employment); and
• if applicable, any accrued or pro-rata long service leave.
• Sick and carer’s leave is generally not included in the employee’s final pay.
Please contact the Employment Lawyers on 1800 888 479 option1 for further information concerning employee resignation, notice period and final payment.
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Specific WHS risks: dangerous chemicals and notifiable incidents Under the Work Health and Safety Act and regulations, members are considered a ‘person conducting a business or undertaking’ (PCBU). This means that they have a primary duty of care to ensure, as far as reasonably practicable, the health and safety of their workers, visitors and customers who may be affected or put at risk by the carrying out of work. Health and safety obligations also apply to the ‘officers’ of the PCBU, such as the individual business owners, people who make or participate in making decisions that affect the whole/ substantial part of the business, and directors and secretaries. These health and safety obligations extend to managing risks associated with using, handling, generating and storing hazardous chemicals.
What are hazardous chemicals? ‘Hazardous chemicals’ are substances, mixtures or articles that can have an adverse effect on health following exposure. Manufacturers, importers, and suppliers of hazardous chemicals must prepare, amend, provide and review a Safety Data Sheet (SDS) for each hazardous chemical. Non-hazardous chemicals are those that do not generally present a threat to the health and safety of workers if used correctly and safely. Examples of hazardous chemicals that Members may use include cleaning and disinfecting fluids and solutions and chemicals and solvents used in the operation of machinery and equipment.
mga.asn.au | April 2022 | Edition 2
PCBU obligations Member PCBUs have the following obligations in respect of hazardous chemicals:
• to ensure that hazardous chemicals and their container or pipework are correctly labelled;
• to obtain the SDS no later than when the chemical is first supplied or as soon as practicable after supply but before use;
• to ensure the current SDS is readily
accessible to workers who use the hazardous chemical, to emergency service workers and anyone else likely to be exposed;
• to ensure that a register of hazardous chemicals is prepared and kept up to date and readily accessible to workers who use, handle or store the hazardous chemical and anyone else likely to be exposed;
• to ensure that a system is used for
the use, handling and storage of hazardous chemicals only for the purpose that it was manufactured for, and is operated, tested and maintained with regard to the safety of workers or others;
• to provide any supervision necessary
to protect workers from health and safety risks arising from work at the workplace, including work involving the use, handling, generation or storage of hazardous chemicals, the operation of a storage system for hazardous chemical or likely exposure to a hazardous chemical;
• to ensure any measures implemented to control risks in relation to hazardous chemicals are reviewed and, as necessary, revised;
• if there is a possibility of fire or
explosion in a hazardous area, to ensure ignition sources are not introduced into the area;
• to ensure, as far as reasonably
practicable, that hazardous chemicals do not become unstable, decompose or change, so as to create a hazard different from the original hazard;
• to ensure that where there is the risk of spill or leak, provision is made for spill containment system; and
• to ensure that health monitoring
is provided if a worker is carrying out ongoing work with hazardous chemicals and where there is a significant risk to their health because of exposure to hazardous chemicals.
Please contact the Employment Lawyer team on 1800 888 479 option 1 for further information regarding risk management concerning hazardous chemicals.
LEGAL AND IR
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Transferring employees and their entitlements Whether selling or purchasing a business, members should know their rights and responsibilities regarding transferring employees.
What is a ‘transferring employee’?
Selling a business
Under the Fair Work Act 2009 (Cth), an employee is a ‘transferring employee’ where:
If you are selling your business, you must consider what will happen to your old employees. While you are not required to notify your employees of an imminent transfer of business, you must still provide the correct period of notice.
• The employee’s employment has been terminated, and • The employee is re-employed with the new employer within 3 (three) months after the termination, and
• The work is the same, or substantially the same, as the work the employee performed for the old employer.1
This means that if you purchase a business and hire an employee within 3 months of their termination by their previous employer, they are considered a transferring employee for the purposes of the Act.
Check your transfer of business contract Your transfer of business contract should contain clauses dealing with transferring employees. The contract may require the vendor to terminate all employees and pay out all remuneration and entitlements. It may also indemnify the purchaser against claims that arise as a result of those terminations. If you are uncertain about your obligations and responsibilities in the transmission of the business contract with regard to employees, MGA TMA can assist you.
Depending on the contents of your transfer of business contracts, employees may transfer to the purchaser if the purchaser agrees. You may be required to terminate the employees, providing the correct notice and paying out entitlements, including outstanding wages and allowances, annual leave and applicable loadings, and long service leave. If you have 15 or more employees, you may also be required to make redundancy payments to terminated employees.
Purchasing a business If you are purchasing a business, you may have the option to select which employees you would like to transfer to your new business. This should be set out in the transmission of the business contract for clarity between all parties. The contract can also state whether the employees retain their annual leave entitlements or whether the vendor is to pay the purchaser a portion of the transferring employees’ entitlements. Additionally, you should keep in mind that if the transferring employees were covered under a specific Enterprise Agreement, Award, or Individual Flexibility Arrangement, this instrument would cover you and the employee. 2
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Recognising service and unfair dismissal
This means that the employee’s period of service essentially resets – but with regards to unfair dismissal provisions only.
Even where an employee is a ‘transferring employee’, they still may be protected from unfair dismissal once they begin employment with you.
Please note that this may not affect the employee’s entitlement to long service leave or unpaid parental leave.
If you accept transferring employees and you are not an associated entity of the vendor, you may choose not to recognise their service with the old employer. This must be:
We understand that a transfer of business can sometimes be complicated. Please contact our Employment Law team on 1800 888 479 option 1 or email legal@mga.asn.au for further information.
• In writing; and • Given to the employees prior to the start of their employment in your business; and
2
• Must state specifically that the employee’s period of
service with the old employer will not be recognised. 3
The Independent Retailer magazine is proudly printed in Australia, supporting local jobs and industry. Printed by: Dynamite Printing MGA TMA is committed to sustainability. Dynamiite Printing use vegetablebased inks within their ISO compliant manufacturing processes that are
1
3
Fair Work Act 2009 (Cth) s 311. Ibid S 313. Ibid s 384(b).
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MGA TMA acknowledges the Traditional Owners of Country throughout Australia and recognise their continuing connection to land, waters and culture. We pay our respects to their elders, past, present and emerging. Disclaimer: The opinions, beliefs and viewpoints expressed by contributors are their own, except where specially stated to be the views of MGA TMA. MGA TMA retains copyright for this publication.
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NATIONAL
Supermarket slips and falls
A grape on the floor, an exploding milk carton after being dropped on the floor or water leaking from the freezer section, are common things you will see daily in your store. Unfortunately, many of these can lead to one of the most common insurance claims we see for supermarkets - the slip and fall. If a customer was to have an incident in your store, the basis of whether the store can be found to be negligent in any way leading to the incident occurring. The payout can be for cost of injuries to the person as well as legal fees and loss of wages. These claims can become quite large depending on the injuries the person sustains. What are the ways that you can look to mitigate the risk of this claim potentially landing on your lap and leading to further issue in the future when placing you Liability insurance?
Some key things to focus on are: • Cleaning processes need to be
a focus particularly if there is a spill, a spill should be cleaned immediately to limit the risk of someone slipping
• Documentation of all incidents on site
• Staff training on incident lo-g • Look at non-slip flooring in any issue spots
• Stairs should have a handrail and reflective tap
• CCTV can be great for assisting in this issue as it can clearly document the incident
The focus needs to be minimising your exposure and the chance of you being found negligent. Our Risk Advisers will
come to your supermarket and help identify your risk exposures in this space. The team at Adroit Insurance and Risk specialise in the general insurance market but also dealing in the placement of Supermarkets insurance programs. Due to our extensive experience in the industry, we are the appointed broker of the MGA. Speak to one of our Risk Advisers for a Free Health Check and make sure you have the right insurances in place to protect you, your family, and your business. Travis Noffke, Senior Risk Adviser | Adroit Insurance and Risk adroit.com. au Travisn@adroit.com.au M 0419 299 402
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CORPORATE PARTNER ADVERTISING
NATIONAL
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mga.asn.au | April 2022 | Edition 2
Supermarkets. Grocery. Liquor. Corner stores. They all have one thing in common: the need to know. About cashflow, customers, plus what to do next. And helping you do that is the Till difference. Nice. Till. Supporting independent retailers across the globe.
LEGAL AND IR
19
NATIONAL
Consultation is essential when issuing a mandatory vaccination policy. Fair Work Commission finding. A recent case involving BHP is a reminder to all members of the importance of consulting with staff prior to implementing a mandatory vaccination policy. Members are reminded that a mandatory vaccination policy may be advisable in some circumstances but may not be suitable for all employers. Members are encouraged to seek legal advice prior to implementing any mandatory vaccination policy. In this particular case, BHP implemented a mandatory vaccination policy that would come into effect in one month’s time from the date of announcement of the policy, in order to give employees time to comply with the policy. Once the policy came into effect, 80 employees were stood down for failing to provide evidence of their vaccination, or for failing to provide evidence of a lawful reason for being exempt from the mandatory vaccination policy. In response, the CFMMEU Union lodged an application to the Fair Work Commission challenging BHP’s mandatory vaccination policy. The Fair Work Commission found that there was nothing unlawful about individuals being vaccinated, and the policy was reasonable in many respects, including the following:
• The policy was proportionate to the risks associated with the worldwide pandemic that is COVID-19;
• It was developed based on the contact that workers have with other workers and the public;
• It sought to ensure the health and
safety of the workers and the public;
• The implementation coincided with
the risks that were in the particular state (NSW) and the local area; and
• It was implemented after a significant period of encouraging staff to receive the COVID-19 vaccination.
However, despite the above, the Fair Work Commission determined that preventing access to the workplace for unvaccinated employees was unreasonable due to the level of consultation that BHP engaged in with their workers, prior to standing them down due to the policy. It was found that BHP did not consult with their workers “as far as reasonably practicable” pursuant to their obligations under the Work Health and Safety Act 2011 (NSW). In order to fulfil their consultation requirements, BHP should have undertaken the following actions:
• Provided employees with information relating to the reasons, rationale and data supporting the mandatory vaccination policy; and
• Provided employees with a copy of
the risk assessment or information relating to the analysis that informed the company’s decision to implement the policy.
This case serves as an important reminder that when members implement new policies, they must engage in genuine and meaningful consultation with staff, particularly where a failure to follow the policy can result in an employee’s inability to perform work, or disciplinary action including but not limited to termination of employment. Members that are considering implementing a mandatory vaccination policy are also further reminded of consultation requirements, which may necessitate provision of supporting information, such as risk assessments, to employees. Please contact the Employment Law team on 1800 888 479 option 1 or legal@mga.asn.au for further information in relation to mandatory vaccination policies and how they can be lawfully implemented.
20
INDUSTRY EVENTS
VICTORIA
Rod Allen Memorial MGA GALA Industry Golf Day 2022
Golfers ready to tee off in the inaugural 2022 Rod Allen Memorial Industry Golf Day
The inaugural 2022 Rod Allen Memorial Industry Golf Day was held on the 25 February at the Greenacres Golf Club, Kew, Victoria. This day honours Rod Allen, a prominent Victorian Independent grocery and liquor retailer and MGA’s long serving MGA Board Director (20yrs) and as President (16yrs). Rod sadly passed away on the 19 September 2019 and led MGA’s Board of Directors to inspire and transform the MGA from a Victorian state-based employer organisation, with 375 members in 2005, into the high-profile national industry employer organisation we know today. A member of the Peninsula Kingswood Golf Club, Rod was a passionate golfer who looked forward to, and supported, MGA GALA Industry Golf Days. This year, the event was strongly supported being fully booked within a week of invitations sent. Attendees, made up of 114 golfers and 30 lunch only participants, took part on what turned out to be a beautiful mild sunny summer day.
mga.asn.au | April 2022 | Edition 2
The Master of Ceremonies, George Samios, commenced the formal proceedings introducing GALA Patron, Ritchie’s CEO Fred Harrison. Fred thanked and applauded the industry for their support and reiterated the important role the independent retailer sector plays in the marketplace, not only with suppliers but also the communities in which they trade. Rod’s family was represented on the day by Heather Allen and their three sons Nick, Kirk, and Zac. Nick gave a moving speech, thanking the MGA GALA Committee for naming the event in honour of his father. He shared stories of his father’s upbringing in South Australia as a young boy and his exploits as an exceptional sportsman. Rod was drafted into the SANFL at the age of 16 where he played for Woodville, winning a club Best and Fairest award and becoming the first Woodville player to reach the 200-game milestone. Nick told attendees how Rod took his competitive nature into business and built a long and lasting business partnership with Ron Corrigan. Together
they built a very successful Mt Martha IGA Supermarket business, with them both being inducted into the 2019 IGA Hall of Fame. Other notable attendees included Doug Hawkins CEO PANCARE Foundation, Billy Brownless AFL/VFL player and Media personality, Debbie Smith MGA President, Rob Pistritto CEO Victoria Metcash, Jeremy Goodale GM ALM Victoria / Tasmania, Rick Wight CEO FoodWorks (AUR), Michael Reddrop CEO Reddrop Group, Frank Palumbo GM LMG Retail Sales & Member Services. This year’s event raised $19,960.00 to be donated to the PANCARE Foundation. Pancare is one of Australia’s leading charities committed to raising awareness, supporting families, and conducting research into upper GI cancers, including pancreatic, liver, stomach, biliary and oesophageal cancers. In 2022, it is estimated 3,391 men & women will die from pancreatic cancer alone.
INDUSTRY EVENTS
VICTORIA Thank you to the MGA GALA Committee, led by George Kovits MGA, Mark Paladino MGA, Michael Potenza Browns Wines, Peter Wagner ALM, Simon Archer TWE and Helen Maxwell Ritchie’s for your hard work in making this event successful. Thank you also to the Greenacres Golf Club team, led by Andy Curtis Operation Manager, Katherine Baily Events Coordinator, James Stewart Course Superintendent, catering staff, and support staff who assisted on the day. This event could not have been the success it was without the support of industry.
Congratulations to the winning teams:
CEO PANCARE Doug Hawkins
Fred Harrison GALA Patron
Nick and Kirk Allen
Heather Allen & Fred Harrison presenting 1st Prize Rod Allen Memorial Trophy to the CUB team
Heather Allen & Fred Harrison presenting 2nd prize trophy to the De Bortoli team
Heather Allen Fred Harrison presenting 3rd Prize trophy to William Grant & Son team
The winning team with a team handicap of 10.126 Nett 57.875 – CUB Group 2: Ben Koetsier (19), Matt Hutton (18), Richard Chatfield (26), Dan Ryan (18) 2nd Place with a team handicap 9 Nett 59 – De Bortoli Wines: Darren Davey (18), Mark Weerdenburg (18), Marc Williams (18) 3rd Place with a team handicap of 7.75 Nett 59.25 – William Grant & Son: Cam Sherry (18), Sam Pope (8), Anthony Edge (18), Alex Groh (18) Nearest the Pin 4th Hole – Arthur Corcoris East Ringwood IGA 9th Hole – Mark Hopp Browns Wines 11th Hole – George Fletcher Coca Cola Europe Pacific Longest Drive 15th Hole – Alex Groh William Grant & Son
SAVE THE DATE: Rod Allen Memorial MGA GALA Industry Golf Day FRIDAY 17 MARCH 2023 Greenacres Golf Club
21
22
INDUSTRY NEWS
VICTORIA NATIONAL
NATIONAL
Climate crisis places Australia’s food supply at risk
L-R: Billy Brownless & George Samios
L-R: Rob Pistritto Metcash, George Kovits MGA, Raquel Lewis RMG, Arthur Corcoris IGA
Image by ELG21 Pixabay
134 golfers and guests enjoy the lunch & presentations
Thank You Thank you to our corporate partners and sponsors for the generous prize donations. The day was a resounding success, and your contributions, as always, are gratefully appreciated.
Farmers’ report warns global heating “amplifies risks all the way through the supply chain, from farm to warehouse to supermarket shelves.” The report titled Fork in the road: impacts of climate change on our food supply, was released early March, by Farmers for Climate Action. It anticipates that empty supermarket shelves will become more frequent, as the risk of food shortages following extreme weather events is intensified, putting supply chains in peril. This report was prepared before the recent flooding crisis in Queensland and New South Wales resulted in retail food shortages. Stephen Bartos, author, and expert in food resilience, concluded logistics chains were highly vigorous but would be at risk should two or more devastating events occur simultaneously. The report showed “there is great fragility in the food supply chain than had previously been thought due to the impact of climate change.” Australians take for granted that food will always be available. “Climate change disrupts this,” Bartos said. The report states the flow on effect from food shortages would be increased produce prices and increased costs of insurance and lending. It recommended increasing the diversity of food chains, with multiple nodes and connections, would reduce some risk and government investment in more numerous and varied transport connections was crucial. Also shorter supply chains would be able to respond quickly to shortages. Source: The Guardian 9 March 2022
mga.asn.au | April 2022 | Edition 2
INDUSTRY NEWS
23
NATIONAL
B-cycle virtual launch On 15 February B-cycle launched Australia’s official battery recycling scheme, supported by the Commonwealth and all State and Territory Governments. B-cycle is an independent stewardship initiative to build a responsible planet-friendly battery lifecycle. Ninety percent of used batteries go to landfill, leaking toxic materials into the environment. B-cycle diverts these batteries through the reuse of the precious metals found in all batteries. The Scheme is managed by the Battery Stewardship Council, authorised by the ACCC, and accredited by the Australian Government.
network. Members are eligible to become a Battery Steward if operating in Australia and are a battery retailer or a battery drop off point (or want to set one up). Benefits in joining B-cycle as an accredited retailer:
• Be promoted as an accredited
• Meaningfully showcase tangible
commitment to environmental and social responsibility
• Increase foot traffic with a Drop off point to create measurable impact and meet waste reduction targets. Be promoted as an accredited B-cycle Drop off.
B-cycle retailer
B-cycle provides robust traceability and accreditation across the value chain. This includes battery brands, retailers, drop off points and the whole recycling
• Access B-cycle branding and
For more information about the B-cycle scheme visit https://bcycle.com.au/.
promotional materials
Australian made and owned
24
INDUSTRY NEWS
NATIONAL
Capturing loyalty of Generation Z customers In additions the report mention Generation Z-ers are more likely to purchase from a brand if their ad mentions:
• • • • •
Mental health advocacy (71%) Public health and safety (66.2%) Sustainability (65.8%) Racial equality (58.9%) LGBTQ+ acceptance (53.5%)
To effectively reach Generation Z consumers, marketers need to employ a mix of social and mobile marketing and view mobile devices as an extension of Generation Z-ers themselves. The report highlights the best method to engage these consumers is on their mobile phones.
Photo by Thirdman from Pexels
Generation Z is fast becoming the driving economic force and capturing these shoppers is increasingly important to retailers and brands. Generation Z differs from Millennials, Generation X and Baby Boomers. Marketers are being challenged to consider new ways to reach and capture the loyalty of this generation. TextNow recently conducted a survey of 1,000 consumers between 10 and 24 years of age. 1. 98% of Generation Z consumers own a smartphone and spend an average of greater than four hours on mobile apps, not including time spent gaming. 2. The average attention span of a Generation Z-er is only eight seconds, compared with 12 seconds for Millennials. mga.asn.au | April 2022 | Edition 2
3. Generation Z is more diverse – racially and ethnically – than any other generation and are likely to be the most educated. 4. Generation Z-ers comprise 40% of all global consumers. By 2031 Generation Z will earn more than Millennials creating them as a strong economic force. The report found Generation Z is more vocal on social justice issues and place more importance on a brand’s authenticity and transparency. They care about the ethics of a company in addition to their products. Many retailers have escalated their diversity and climate change initiatives over the past few years. Being transparent and consistent with these efforts, and sharing values with Generation Z, will become critical to engage this cohort.
The report also recommends brands leverage influencers to reach Generation Z, with more than 40% of Generation Z shoppers more likely to purchase a product from an influencer’s social media post and want an influencer to have a “real relationship with the brand”. The report states “Companies that can demonstrate purpose when connecting with Gen Z will earn true engagement and loyalty, and our study has found that it is one of the most effective ways to reach this coveted demographic.” Retailers and brands will need to ensure their marketing strategy delivers the authenticity and incentives Generation Z desire. Understanding Generation Z is critical to retailers and brands who want to gain their trust and allegiance. Source: Retail Leader
CORPORATE PARTNER ADVERTISING
NATIONAL
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26
MARKET DISRUPTORS
NATIONAL
COVID-19 a turning point for retail technology The COVID-19 pandemic has significantly accelerated an increased uptake and investment in technology solutions in retail stores, as their demand for automation increases. This acceleration of retail technology comes at a time when business is struggling with supply chain challenges and escalating shipping costs, in addition to the ongoing challenges of COVID-19. Business owners are embracing new technology in a post-COVID-19 environment, with start-ups such as Kepler Analytics, raising $22m for its in-store retail analytics technology which uses sensors to capture data on shopping behaviour. This deidentified data can give retailers insights in customer behaviour, such as the number of people walking past the store compared to how many come into the store, how long they stay, and what they buy. Customer journey tracking information is now available to physical stores, as it has been to e-commerce retailers for some time. Start-up machine learning platform Remi.ai has raised a $1.44m seed round. Their Software-as-a-Service artificial intelligence tool forecasts demand for products and manages inventory and replenishment of stock. This allows for optimisation of shipping orders, ensuring containers are full to the brim securing cost effectiveness for the retailer. Start-ups such as these, are presenting software solutions with data streams and processes to assist retailers gain insights and more efficiently manage their businesses. Source: Smart Company
mga.asn.au | April 2022 | Edition 2
A market shift - new grocery venture Milkrun 10-minute grocery delivery start-up, Milkrun, headed up by Koala founder, Dany Milham, launched over 4 months ago. The start-up has recently raised significant capital. The $75m Series A round is led by US investment giant Tiger Global Management, which also flowed $28m into Australian wholesale marketplace start-up TradeSquare. Milham noticed strong demand emerging for fast delivery and that this model would work best for a product ordered at high rate – groceries, which people can purchase twice a day or more. The service promises delivery of online grocery orders within 10 minutes and is currently available in 35 Sydney suburbs. A network of warehouses stock between 1,500 and 2,000 everyday grocery items. Milkrun’s fully employed staff pack order and make speedy deliveries on e-bikes.
Current growth plans are to expand across Greater Sydney and into other cities across Australia, as well as driving a hiring splurge and investment into the product. In December 2021, Voly raised $18m for its own platform delivering groceries within 15 minutes, and in August 2021, Send raised $3m for a similar service. Milham stated that grocery is “the last frontier” of category disruption, being a sector that has remained static for a very long time. Source: Smart Company
Dany Milham (in blue) and the Milkrun Surry Hills team. Source: Smart Company supplied.
INDUSTRY NEWS
NATIONAL
Menulog grows grocery and convenience delivery service Australian food delivery platform, Menulog is continuing to expand its grocery and convenience services across Australia, with a 232% partner growth since January 2021 as momentum builds in the instant delivery space. Founded in Australian in 2006, Menulog was acquired by Dutch based Just Eat Takeaway.com in 2015. Menulog has welcomed major trading partners including BP, IGA Supermarkets and Quickstop United Petroleum and plans to add more over the coming months as it continues to expand. Demand is booming throughout inner city capitals as well as suburban and regional areas.
to make it even easier for Australians to support their local, independent supermarkets and convenience stores.” in Australia, three businesses are competing for market share in the instant delivery space. These include Send which currently operated in Sydney and Melbourne, and Voly and Milkrun, which recently raised $18 million and $75 million respectively in seed funding. Menulog has differentiated itself in recent months leading the way on worker pay and safety.
In April 2021, Menulog began trials to transition come workers from independent contractors to employees. A Fair Work hearing in January ruled that employees in the new ‘delivery worker’ category would be covered under the same award as courier truck drivers. Customer demand is expected to rise this year and Menulog will prioritise grocery and convenience delivery services despite retail trading restrictions having been eased.
To date, independent businesses represent 37% of Menulog’s grocery and convenience partners and 35% are also based in regional Australia. Managing Director of Menulog, Morten Belling said “Menulog’s point of difference has always been our breadth across Australia, fully servicing metro areas, with a strong courier and partner network panning suburban, regional, and rural areas.” He explained the “exponential demand in convenience and grocery deliveries” across all parts of Australia, was in part “driven by changes in consumer buying habits that started as a result of Covid restrictions. Consumers continue to embrace our platform for convenience items as they are needed and craved. We are delighted
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27
28
INDUSTRY NEWS
NATIONAL QUEENSLAND
Join us for Meet the Makers 2022 A celebration of South East Queensland's growers and makers
TUESDAY 3 MAY
BUYER SESSION EXHIBITOR CATEGORIES
2.00pm - 5.30pm Sunshine Coast
Artisan pantry I Baked goods Brews from local crews Delicious dairy | Farm grown fresh produce Frozen treats | Functional foods Organic goodness I Plant based alternatives Sauces, jams & condiments | Savoury snacks Spirit makers I Tasty treats I Tea coffee beverages Wholesome free from Presented by
Supported by
mga.asn.au | April 2022 | Edition 2
RSVP HERE USE PROMO CODE BUYER More details info@foodagribusiness.org.au
Meet the Makers –
INDUSTRY NEWS
29
of South-East Queensland's NATIONAL QUEENSLAND best food and beverage products and produce Independent grocers, retailers and distributors are invited to Meet the Makers 2022 – a celebration of South-East Queensland’s local growers and makers.
Hum Honey
Meet the Makers – Tuesday 3 May, is a must attend food and beverage trade event showcasing fresh produce and food and beverage products from over 100 exhibitors from the Sunshine Coast, Noosa, Gympie, Moreton Bay and beyond. The event from the Food and Agribusiness Network, now in its 4th year continues to grow in terms of size, diversity and reputation. Food and Agribusiness Network (FAN) CEO Emma Greenhatch said the event would create valuable commercial connections and opportunities for its members and the wider food and beverage industry. “The start of this year hasn't gone as anyone had planned.... so now more than ever it's time for us to celebrate our regions' amazing growers and makers,” said Ms Greenhatch.
Nutworks
“Meet the Makers 2022 will showcase the amazing array and diversity of products and produce that is made here in South-East Queensland – to a wide group of industry buyers and supporters.” Roz White from White’s IGA, joins the event as an Official Ambassador. White’s IGA is pioneer of the locavore movement and is a strong advocate and supporter of the region’s local food and beverage industry. “I’m delighted to be an Official Ambassador again for Meet the Makers, it’s a truly unique event where our industry can connect with a diverse range of producers and growers and source innovative and new to market retail lines,” said Ms White.
Immune Boost Foods
The event aligns with the strategies of FAN, and other regional stakeholders including the Sunshine Coast Council to make the region the Australian epicentre for scaling food and beverage manufacturing businesses through an ecosystem that drives collaboration and innovation. FAN recently led a successful submission to secure funding for development of Turbine - Australia’s first purpose built, end-toend collaborative food and beverage manufacturing, education and R&D precinct – located on the Sunshine Coast. $8.78 million in funding from the Modern Manufacturing Initiative Translation stream has been allocated to the development of the Precinct which will be designed to drive innovation, reduce barriers to scale and increase productivity for food and beverage manufacturers in the greater South-East Queensland region. The precinct will be operational in late 2023.
"What a fabulous showcase of the diversity and expertise in our food and beverage producers from across the region. I discovered several new products and it was so lovely to meet the person/ team behind them. So much food passion in the room. " Colleen Real Food Market - Yandina
For more information email info@foodagribusiness.org.au or visit www.foodagribusiness.org.au.
30 NATIONAL
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mga.asn.au | April 2022 | Edition 2
INDUSTRY NEWS
31
NATIONAL
Australians fast to vacate cash purchases FIS analysed the payment trends of forty countries. Their Global Payments Report found that Australians are among one of the fastest countries in the world to quit using cash for the payment of goods, moving towards a cashless, digital society. The report predicts that only 2 percent of transactions will be made with cash by 2025. Currently this is around 7 percent. This change in behaviour was accelerated by COVID-19, however FIS maintains that cash will always have a “place in certain areas of society.” It is predicted that Australia’s e-commerce market will soar, by an estimated 50 percent by 2025 to $97 billion. Digital wallets are expected to overtake credit cards at this time. Source: Channel News
Save on contactless debit card transaction costs Even if transaction costs are small, they can add up fast. We offer Least Cost Routing (LCR) so you don’t pay more than you have to. With LCR, your contactless debit card payments are directed to the most cost-effective channel. Learn more at eftposaustralia.com.au/lcr
©2021 eftpos Payments Australia Limited. All Rights Reserved.
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22/6/21 3:36 pm
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TIMBER NEWS
NATIONAL
Plantation grants announced to secure timber supply On 21 February 2022, the Federal Government announced a federal grants program for the forestry sector. This investment in forestry of $86m, if successful, has the potential to lead to the planting of 150 million new trees nationwide, securing sustainability of Australia’s future housing timber construction needs. The grants program requires co-funding from states and territories who are being asked to contribute 60% of the overall investment of $215m, with business required to match the total. In 2021, the Australian Bureau of Agricultural and Resource Economics discovered that between 2014 and 2020, Australia’s commercial plantation area had decreased in size by 198,700 hectares. It has been estimated Australia could be 250,000 house frames short by 2035 without strong action. MGA TMA welcomes this grant scheme to assist establishing new softwood and hardwood plantations.
PEFC ruling on conflict timber Australia’s forest industries have stressed the urgent need for increased timber and wood fibre to be locally grown. This comes on the back of the world’s largest international forestry certifier, Programme for the Endorsement of Forest Certification (PEFC), announcing restrictions on all timber from Russia and Belarus. This timber has been labeled ‘conflict timber’ and means that it cannot be used in PEFC certified products. This PEFC decision will tighten the supply of imported timber and fibre into Australia, where supply constraints are already being experienced. In 2021, Australia imported more than $80 million worth of timber from Russia, while almost a quarter of total timber import volume came from Estonia, Latvia, and Lithuania, in the region.
mga.asn.au | April 2022 | Edition 2
Up to 40% of Australian laminated veneer lumber (LVL) is sourced from certified Russian forests, while 50% of Australian plywood is sourced from Chinese manufacturers, with a significant portion sourced from Russian certified forests. This ban has the potential to have a damaging impact on Australia’s construction needs. Ross Hampton CEO of Australian Forest Products Association (AFPA) stated “The PEFC decision is another important factor in a weight of already compelling arguments to fast track the planting of trees for timber and fibre to shore up critical future supply”, highlighting Australia’s need to become more self-sufficient. Source: Timberbiz
TIMBER NEWS
NATIONAL
MGA TMA Advocacy MUA Strike actions In late 2021, the MGA TMA Management Committee were alerted to the ongoing impact of the Maritime Union Australia strikes on members’ ability to receive imported timber and sustain their businesses. Accordingly, MGA TMA advocated to ministers across federal and state portfolios, as detailed below. “Historically, 25% of timber used in Australia was from imported sources but due to availability of locally grown timber, the amount of imported timber being used in local projects is increasing. For a number of our members, their businesses are entirely imports and they are being significantly affected by this action. We mentioned COVID above, but it has also impacted shipping into Australian ports. Not only are our members seeing shipping prices loaded due to inefficient practices on the wharf but also an extension of delivery lead times. These are critical and it’s delaying the completion of Australian homes andtheir owners being able to move in.The Port go slows, strikes and other Union actions are causing significant
financial stress and hardship for many of our members (not to mention homeowners) who depend upon stocking and selling imported timbers, as well as other building and hardware items for their livelihoods. Many of our members are facing a risk to the viability of their businesses as they cannot receive supply of vital imported timber and building materials for the long pipeline of orders for building projects they have before them.” MGA TMA received responses from several ministers including Senator Michaelia Cash. Senator Cash noted how important maritime transport is to the Australian economy and our businesses. MGA TMA supports reducing strike action on Australia’s wharves that will benefit members.
The letter received from Senator Michaelia Cash.
Imports of Russian timber The Russian invasion of Ukraine is devastating and should be censured. Sanctions against Russian timber imports have the potential to significantly impact members’ businesses and their customers. MGA TMA partnered with Master Builders Australia to address this significant issue and advocated to the
Minister for Housing and Assistant Treasurer, Michael Sukkar. Minister Sukkar advised the sanctions announced did not include timber, having personally lobbied Treasurer Josh Frydenberg, Minister for Foreign Affairs, Marise Payne and the Prime Minister’s Office. Prime Minister Scott Morrison said targeted sanctions were to be rolled out on the transport, energy, telecommunications,
oil, gas and mineral reserves as part of Australia’s response to the Ukrainian crisis. MGA TMA can advise members at this time Russian timber imports will continue to arrive into Australia.
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LIQUOR NEWS
NATIONAL
Victorian Packaged Liquor Law change In October 2021, the Victorian Parliament passed changes to the Liquor Control Reform Act 1998 impacting the way restaurant and bar licensees operate their premises. From the 15 March 2022, holders of a restaurant and cafe licence are permitted to supply packaged liquor for consumption off licensed premises during ordinary trading hours. This can be done with their current licence and without needing to hold a separate renewable limited or temporary limited licence.
Packaged liquor, however, must only be supplied with takeaway or home-delivered meals prepared on licensed premises, and intended for consumption by an adult. The packaged liquor supplied must not exceed 750 millilitres in the case of wine, or six containers of no more than 375 millilitres each, in the case of beer, cider, or pre-mixed spirits. In time, this will undermine the ability of current packaged liquor retailers to trade profitably. This decision increases the availability of packaged liquor by approximately 171 percent, from 5,160 packaged liquor outlets to a total of 14,000 packaged liquor outlets. Restaurants and cafes were permitted to sell takeaway alcohol during the peak of the COVID-19 pandemic when stay-athome orders were in place. This action was supported by industry to assist distressed businesses; however, it was never intended to be permanent. Once emergency powers were lifted, industry expected the original policy settings would be restored. This new legislation is an affront to all independent packaged liquor licence holders throughout Victoria.
mga.asn.au | April 2022 | Edition 2
MGA fought hard to not allow the permanent ability of restaurants and bars to sell takeaway alcohol with take away meals with Minister for Consumer Affairs, Gaming and Regulation The Hon. Melissa Horne MP, Department of Justice - regrettably without success.
For further information or clarification please email george.kovits@mga.asn.au
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