MGA Independent Retailer February 2022 Issue 01 by MGA Independent Businesses Australia

Issue

01 FEBRUARY 2022

Daly’s IGA Koroit new store , spanning the generations| PAGE 24 YOUR INDUSTRY NEWS PROVIDED BY MGA INDEPENDENT RETAILERS

SAVE THE DATE

ROD ALLEN MEMORIAL MGA

GALA GOLF DAY FRIDAY 25 FEBRUARY MGA TMA - AGM AND

INDUSTRY UPDATE

WEDNESDAY 23 NOVEMBER

MGA NATIONAL LIQUOR UPDATE & CHRISTMAS DRINKS

THURSDAY 8 DECEMBER

FOR MORE INFORMATION ON 2022 UPCOMING EVENTS AND FUNCTIONS PLEASE REFER TO WWW.MGA.ASN.AU

Contents 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

CEO Welcome

7 ACCC appeals $1million penalty in Employsure Google ads case 8

ABN holders can now include four additional ANZSIC codes

Coles in court over underpayments

9 Competition litigator Gina Cass-Gottlieb to replace Rod Sims as ACCC Chair 10

MGA meets Minister for Small Business Stuart Robert

MGA attends Federal Small Business Policy Forum seeking solutions for members

13 MGA TMA Membership of the ACCC’s Small Business and Franchising Consultative Committee 2022 14

Ombudsman welcomes funding for critical small business mental health programy

Building a store culture that values wellbeing

Have we left ourselves in a vulnerable state?

MGA pushes to ease COVID-19 restrictions causing severe worker shortages

19 Metcash boost on local retail 20 Workforce and skills: small business critical supply chain (Food and Grocery) 21 Beem It is all about getting small business customers and driving them back to your store 21

Least Cost Routing

Family and domestic violence leave: Entitlement, obligations, and

CHIEF EXECUTIVE OFFICER

upcoming changes

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

Dalys’ new IGA store, Koroit

Leave options for COVID-19 related absences

CORPORATE PARTNERSHIP & MEDIA SALES

Dealing with excessive annual leave accrual

Mental health and wellbeing surcharge .05% in Victoria

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

DESIGN & PRODUCTION Cindi Damian 03 9842 4111 E: cindi@mga.asn.au

29 Consultation is essential when issuing a mandatory vaccination policy.

34 Supply Shortages lead to learnings for the future on Supply Chain Management 36 Outstanding IGA supermarkets across the country recognised at the annual IGA National Awards of Excellence 38

Queensland small business Covid recoverye

39 NSW COVID-19 workers compensation provisions to be wound back 40 ACCC advises recent pricing of rapid antigen tests could be unconscionable

FOLLOW US ONLINE www.facebook.com/ MGAIndependentRetailers www.linkedin.com/company/ mga-independent-retailers www.twitter.com/ MasterGrocers

41 MGA TMA Management Committee 42 Long serving MGA National Liquor committee member steps down 43 Technology driven sustainability – MiPlanet 44 Consultation on Australia’s domestic organics regulatory framework 45

Vale David Efron

46 Brothers boost IGA business more than a third in Brisbane riverfront site 46

New Stores and refurbishments

Front Cover: L-R: Peter Daly (owner), Donna Daly (Mick’s wife), Mick Daly (owner), Nathan Lovell (group operations manager), Barb Daly (Peters wife). Closing of the old supermarket ahead of opening the new store the next morning. Read the full story on page 24.

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tasmanian independent retailers

CEO REPORT

CEO Welcome Welcome to our first edition for 2022 of the Independent Retailer magazine, sharing significant challenges and achievements MGA is managing and advocating for on behalf of members. Over the festive season many of us may have reflected on the past year - Unprecedented. Challenging. Frustrating. Lockdown. Changes. Borders. These words have become commonplace, each representing challenges that have cut down whole industries. Two years ago we did not consider panic buying, wearing of masks, entering a premises via a QR code for COVID-19 contact tracing, COVID-19, Delta and Omicron variants, store limits, social distancing, COVID-19 safe plans, isolation rules, and COVID-19 vaccination requirements for staff and the community. We have witnessed the rise of the Antivaccination movement – or ‘prochoice’ - which furthered members’ frustration and anxiety levels as this group threatened to disrupt the workplace.

We are now having to live in a world of compliance to manage this pandemic. Coupled with these challenges are additional complications threatening food and beverage supplies, including: shortage of shipping containers, shipping pallets and ADBlue (a diesel fuel additive that helps to eliminate emissions), staff shortages driven by employees having to isolate after being in close contact with a COVID-19 infected person, and more recently the shortage of Rapid Antigen Test (RAT) kits to enable a faster return to work of employees in close contact with an infected person but are asymptomatic. MGA has been proud of members and food supply partners. From farmers and growers, freight forwarders, food

and grocery wholesalers, transport, and logistics - you have all helped keep the independent food and grocery sector open and trading. MGA and the Board, congratulates store owners, store managers, staff, and food and grocery suppliers for your outstanding efforts to deliver essential foods and groceries to local communities. It has been almost two years of working with uncertainty and ambiguity, as state and federal governments change public health orders on an ongoing basis to help protect communities. We are now experiencing COVID-19 restrictions around the country, arising from the new Omicron variant rapidly spreading throughout the eastern seaboard states, at an unprecedented rate. Western Australia (WA) continues to avoid infections, but this measure is coming at a high economic and social price with borders being closed and no travel between states permitted. MGA is working closely with the WA Government to share food supply and food security learnings emanating from the eastern states, to guarantee that when the borders open businesses will be prepared, including staff being fully vaccinated with a booster. The WA border was planned to open on 5 February 2022 but owing to the fast spread of the Omicron variant in the eastern states and the low vaccination rates in WA, Premier Mark McGowan has decided to keep the border closed until further notice. For the past two years, MGA has been heavily involved with various federal and state food supply and food security forums. One of these

has been the Minister for Home Affairs Karen Andrews, Food Security and Food Supply Forum. At this table we have discussed potential causes to the interruption of food supplies to communities in which we trade, particularly remote and ultra-remote areas, such as in WA, QLD, and NSW. This forum facilitates collaboration and communication between various government departments, health officials and various COVID-19 recovery directors from all states and territories, as well as industry leaders across Australia. A similar forum has been organised for small and independent food and grocery stores, restaurants and caterers, and food distributor organisations by the Federal Small Business and Family Enterprise Ombudsman, Bruce Billson. The Critical Industries (Food and Grocery) Supply Chain Policy Forum, led by Social Services and Acting Small Business Minister Anne Ruston, has been critical in recognising the devastating staff shortage and food supply issues businesses are facing and discussing approaches to reopen businesses presently closed, such as cafés, bars, and restaurants. With eastern economies opening up and movement restrictions being lifted, business have suffered a difficult trading period. Worker absenteeism has rapidly escalated, and businesses have been unable to trade and offer food and groceries to customers in the usual way. There have been food and grocery shortages experienced in Coles and Woolworths recently. The duopolistic market presence of Coles and Woolworths and their subsequent reliance on large central distribution

CEO REPORT

warehouses has put the public at risk of being unable to source and purchase desired foods. These distribution centres have incurred major worker shortages owing to COVID-19 isolation measures. Subsequent to this occurring, there had been calls for the duopoly to be split so as to help alleviate food supply and choice vulnerabilities. Members have improvised to cope with worker absenteeism and food supplies shortages. Member feedback is below.

Stores impacted by staff absenteeism • The food supply and worker absenteeism situation are dynamic across the Eastern Seaboard. It varies each week deepening upon quantum of staff isolating.

• Absenteeism has been up to 40% 50% in some stores for one to three weeks then after isolation periods staff returning to be at 10-20% absenteeism. This trend is rolling in each state as COVID-19 outbreaks occur, particularly with the younger cohort of workers (e.g. catching the virus in social settings).

Trading hours changes • Stores in metro and regional areas report they had to open stores later, close earlier, close at lunchtimes, close departments such as deli, bakery and meat departments owing to staff shortages.

• At this point there is no end in sight, and it will be a long time before we achieve having a full team of staff back at work.

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Rapid Antigen Test kits (RAT) • Up until the time of writing RAT kits have been available to very few members and their staff in case, they need them. The majority of members (particularly regional and remote) have not had access to any RAT kits. Based upon this issue how do we get workers back to work in a timely fashion?

• Some members who have ordered RAT kits through importers have reported not receiving their RAT kits to factors unknown at this point.

• If we are to get workers who are close contacts back to work, we must have access to a quantum of RAT kits per store immediately.

• RAT kits for employers to use with their staff must be provided at no cost to small businesses!

• Grocery margins are razor thin. Any additional costs cannot be absorbed into these margins without lifting retail prices to consumers which we cannot do in a highly competitive chain and ALDI dominated marketplace.

Food supplies • Supplies of dry, frozen, and chilled groceries from Distribution Centres to members stores in the metro and regions have been impacted with delivery lags causing several out of stocks in stores, but not debilitating.

• Distribution Centres have done an outstanding job managing this very difficult worker absenteeism situation owing to DC staff having to test and isolate; but this ongoing matter of absenteeism may not be sustainable unless additional workers are found to relieve dedicated and overworked DC workers who have been under enormous pressure for nearly 2 years now!

• Regional stores report sourcing meat and chicken from local suppliers, albeit there are many reports of delivery driver shortages impacting upon timely deliveries into stores.

• Supplies of fresh produce into metro and regional stores have been marginally impacted owing to farmers inability to pick/harvest and deliver into the markets. Supplies remain steady owing to the independent sector “local” sourcing model from various suppliers, including the produce market. This scarcity of supply has resulted in an increase in cost and sell price of produce across the board. Finally, I wish to leave you with a short message regarding you and your team’s wellbeing and workplace culture. Right now, the wellbeing of team members and managers has never been more important. We know some people are struggling and more importantly, we know some people are struggling in silence. We will not know the extent of wellbeing challenges in our stores unless we monitor and measure the wellbeing of team members by using some simple tools to take a regular pulse check of how team members are travelling mentally. Leadership teams need education about how to apply some practical tools so the early signs and symptoms of mental injury can be seen and addressed. Members, please contact MGA for assistance with this very important matter. We would like to refer to you our Industry Well Being Experts, Kevin Smith and Rachael Davidson, to assist you with a simple and manageable strategy to uplift wellbeing for you, your family and staff, which will directly impact the uplifting of your stores team culture. Take care and until next time “Good Trading” Jos de Bruin Chief Executive Officer

INDUSTRY NEWS

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ACCC appeals $1million penalty in Employsure Google ads case Members may recall when our members were contacted by Private IR provider, Employsure to provide IR and WH&S support services. As a result, several members were lured into a locked 3-year contract at exorbitant cost. MGA received many complaints from members, who also mentioned Employsure delegates nationally, discredited MGA as a means to gain membership. As a concern, MGA lay down these complaints with the ACCC. Following years of the ACCC building a case, Employsure was found guilty of misleading and unconscionable behaviour and fined. The ACCC has filed an appeal against the $1 million penalty ordered by the Federal Court against Employsure for making misleading representations that it was, or was affiliated with, a government agency, in Google advertisements published between August 2016 and August 2018.

A hearing for the appeal before the Full Federal Court will be fixed at a later date. This is an example of the Google advertisements run by Employsure:

Employsure published six misleading Google advertisements which appeared in response to searches for terms like ‘fair work ombudsman’, ‘fair work commission’ and similar terms and featured headlines like ‘Fair Work Ombudsman Help – Free 24/7 Employer Advice’. In the ACCC media release on 17 January 2022 ACCC Deputy Chair Mick Keogh said, “We were concerned Employsure’s Google ads potentially misled thousands of Australian businesses over a two-year period into contacting Employsure, thinking they were dealing with a government agency, or one affiliated with the government. Any attempt to misrepresent a business as being part of the government is a serious breach of trust, and of our consumer laws.”

NEW

The ACCC had sought a penalty of $5 million and is appealing from the penalty judgment on the basis the $1 million penalty ordered is manifestly inadequate. “We believe a higher penalty is necessary and appropriate having regard to the nature of the conduct and size of Employsure, to ensure that internet advertisers are sufficiently deterred from misleading consumers about who they are dealing with,” Mr Keogh said.

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ABN holders can now include four additional ANZSIC codes Businesses can now include up to four additional business activities when updating their Australian Business Number (ABN) details on the Australian Business Register (ABR). Previously ABN holders only had the ability to register one main business activity. This meant ABNs were not able to capture the full range of operations undertaken.

services for private functions. Julie has her main business activity listed as Cafe operation (45110). This new feature, however, means Julie’s ABN provides a wholistic picture of her business by including:

For example, Julie is the owner of a café which comprises of a bookstore and accommodation in the upstairs apartment. Julie also offers catering

Events such as COVID-19 and natural disasters have highlighted the importance of accurate business information to allow government

» Bed and breakfast operation

agencies and emergency services to provide tailored support and services to businesses when needed. Members are encouraged to take advantage of this new feature by Updating your ABN details at abr.gov.au.

(44000)

» Book retailing (42442) » Catering services (45130)

Coles in court over underpayments The Fair Work Ombudsman (FWO) has commenced legal action against Coles Supermarkets Australia Pty. Ltd. (Coles), alleging it underpaid more than 7,500 salaried employees a total of $115 million. Coles Group Limited disclosed to the FWO and the Australian Securities Exchange in 2020 that it was reviewing the pay of award-covered, salaried employees in its liquor and supermarket businesses. The FWO assessed the wages and entitlements of thousands of salaried Coles employees and alleges Coles underpaid 7,812 employees a total of $115.2 million between 1 January 2017 and 31 March 2020. The FWO states most of the underpayments were the result of Coles paying salaried employee’s annual salaries insufficient to cover their minimum lawful entitlements, given employees generally performed significant amounts of overtime work. The FWO alleges Coles’

mga.asn.au | February 2022 | Edition 1

remediation program has significantly underestimated amounts owed to the employees and that more than $108 million remains outstanding. Fair Work Ombudsman, Sandra Parker, said underpayments resulting from insufficient annual salaries for employees covered by awards had become a persistent issue among businesses of all sizes, across a number of different industries. “Businesses paying annual salaries cannot take a ‘set-and-forget’ approach to paying their workers. Employers must ensure wages being paid are sufficient to cover all minimum lawful entitlements for the hours their employees are actually working and the work they are actually doing”. The allegedly underpaid Coles’ employees were located in regional and metropolitan areas across all states and territories. Most were responsible for managing a department or function

within a Coles supermarket, such as bakery, customer service, delicatessen, dry goods, fresh produce, meat, and night-fill. The alleged underpayment of salaried managers ranges from small amounts to $471,647 and it is alleged that 45 of them were underpaid more than $100,000. Source - FWO Website 02/12

Members should contact MGA’s Employment Lawyers for information regarding payment of wages to staff and department managers.

Should you require any assistance please contact

MGA’s Legal and Industrial Relations team on

1800 888 479

(option 1)

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Competition litigator Gina Cass-Gottlieb to replace Rod Sims as ACCC Chair Federal Treasurer Josh Frydenberg has announced competition and antitrust litigator, Gina Cass-Gottlieb, will replace outgoing chair, Rod Sims, on 21 March 2022, conditional to states and territories approving the appointment. Gina CassGottlieb will become the first female chair of the competition and consumer regulator, replacing Sims after 10-years at the helm. MGA has held a close working relationship with ACCC Chairman Rod Sims, Deputy Chair Mick Keogh, and its commissioners. As a member of the ACCC Small Business and Franchise Consultative Group, MGA has an opportunity to share the many anti-competitive issues faced by our members across Australia.

contributed to the ACCC’s enforcement and regulatory investigations in the past. She was a lead partner in the ACCC’s investigation into criminal cartel conduct at banking giants ANZ, Deutsche and Citi and has been a board member of the Reserve Bank of Australia’s Payment Systems Board for eight years.

Under the direction of Rod Sims, the ACCC has helped secure higher penalties for breaches of consumer laws, advocated for changes to the franchising code and strengthened laws about unfair contract terms, which have long been a contentious issue for small businesses. MGA congratulates Rod Sims for his significant work at the ACCC, particularly in helping protect small businesses from anti-competitive, unconscionable, and misleading market behaviours by the large chains.

Commenting on the appointment, Frydenberg said he had “written to states and territories seeking their support for the proposed appointment of Ms Cass Gottlieb”.

Source: Smart Company 15 Dec 21

Rod Sims - always looking after small businesses

Josh Frydenberg acknowledged that Rod Sims “has made an outstanding contribution to competition, consumer and infrastructure policy in his time at the ACCC, helping to advance world leading reforms including most recently with respect to the digital platforms.” Cass-Gottlieb, a senior partner in Gilbert + Tobin’s competition and regulation practice for more than two decades, has

Gina Cass-Gottlieb & Treasurer Josh Frydenburg

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MGA meets Minister for Small Business Stuart Robert On 18 January 2022, MGA, together with other industry leaders, met with Minister Stuart Robert. The meeting was to discuss how to regenerate and reinvigorate the small and family business sector in Australia coming out of COVID-19 restrictions in each state.

Minister Robert focussed on the small business critical supply chain (food and grocery) issues and reported saying the “the input you provided was extremely valuable and assisted in informing the Prime Minister, National Cabinet and the National Coordination Mechanism (which coordinates and facilitate nationally consistent approaches to non-health sector planning and response, consistent with medical advice) on addressing some of the immediate challenges the sector was (and still is) facing.” Members may have seen that MGA feedback was immediately adopted by the Prime Minister at his press conference on the 20 January, and many more discussions are being held across government as a result of our feedback.

needs of our industry sectors to secure provision of effective workforce solutions to this critical food and grocery sector. Discussion followed around where to source additional workers, including recruiting retired workers, upskilling younger workers to drive forklifts, engaging with the long term unemployed, people with disabilities and indigenous communities, as well as attracting youth. MGA highlighted the major issue was the need for staff and our members are desperate and that they do not have time to train people. MGA will continue to keep members informed of initiatives arising from these workforce shortage discussions.

Below: MGA has also met with the Minister for Home Affairs Karen Andrews to discuss various food supply and food security challenges owing to AdBlue (Diesel) and pallet shortages as well as severe worker absenteeism caused by COVID isolation and testing protocols. Discussions have been insightful and mindful of the needs of our members – family businesses located in the metro, regional, remote and ultra remote areas.

One of the key issues raised during the meeting was workforce demands on small businesses, especially temporary shortages, as key skilled workers are temporarily removed from the workforce as a result of COVID-19 or associated precautions. Minister Robert invited MGA to a meeting in late January, with a selection of job network providers and workforce department officials, to discuss the

Minister Home Affairs Karen Andrews Worker shortages.Jan 21

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MGA attends Federal Small Business Policy Forum seeking solutions for members On 26 November 2021, MGA was invited to attend a high-level Small Business Policy Forum with the Federal Minister for Small Business Stuart Robert, organised by Small Business and Family Enterprise Ombudsman, Bruce Billson. The forum discussed the many challenges Small Business owners are facing amid the Pandemic and workshopped possible solutions to help small business owners through this difficult period. Minister Robert opened the forum stating government will focus on post COVID-19 recovery with assistance of $271 billion designed to support small business future revitalisation. Measures including reducing red tape and associated cost burdens, investing in technology and digital solutions, were discussed, with an emphasis upon avoiding post COVID-19 unemployment problems that followed the Global Financial Crisis. Matters discussed included:

Pandemic Lessons Forum participants questioned how to capture lessons learned by small business in terms of policy settings, program design and interventions/ support. Key example presented was access to government support services with the solution being to create a one stop shop rather than a series of touch points. It was important to learn lessons from the Pandemic – what has been done well, and what has been done badly. What has been done well includes the use of technology and digital with meeting procedures, signing documents, entering into contracts,

Bruce Billson Worker Shortages meeting Small Business Jan 21

and, for example, allied health providers working remotely.

will be liquidity impacts for some time to come.

Government to business consultation was considered inadequate, particularly in some states, but is improving.

The cost of freight overseas (inward and outbound) has skyrocketed with delays at ports. Fuel supplies and cost of retail operations are under pressure, together with driver shortage concerns and price increases, which was suggested to be more palatable than the consequences of insufficient fuel if demand goes up in the holiday season.

Supply chain problems Participants highlighted severe supply chain problems across industries. There is difficulty purchasing assets and it is not possible to make the most of the instant asset write off, with suggestions this measure will need to be extended for three years. Businesses are observing warehouse stock piling due to supply chain issues; in the wholesale food sector it has been necessary to destroy much perishable food. Unlike hospitality, there has been no government compensation, and there

Small business does not have the same protection as consumers when they cannot afford to pay for utilities due to other liabilities, with many currently struggling to afford bills. A ‘no disconnection’ policy during COVID-19 is helpful but a transition pathway out is needed and strategy to prevent this in the future.

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There is still much illicit tobacco coming into Australia – up to one in five packs are sold on the black market. The prescription model for vaping has moved people looking for nicotine towards the black market, leading to loss of legitimate trade and taxation opportunities.

Skills shortages Points raised in the forum covered severe workforce shortages, demand for skills and unskilled people, limited labour mobility and placements that are not well matched. With income support being tapered down through pandemic recovery, the importance of helping welfare recipients return to work was highlighted, as well as balancing access to jobs for citizens with migrant workers, typically holding hospitality and harvest roles. From 1 December 2021 235,000 migrants will be permitted to arrive in Australia. Wages and on costs of employment of skilled staff is high and unskilled pay rates are rising, with small businesses struggling to fill positions. Skilled workers require retraining and support was requested. Extending the number of hours student visa holders can work or suspending the twenty hour cap were suggested as short-term measures to bolster labour market capability.

Accommodation shortages Delegates advised that available housing stock does not match the location of labour force needs. People are reluctant to move with online job searches mostly within five km of home. Solutions suggested beyond the current incentives were housing pods or temporary housing. The housing shortage in regional Australia was acknowledged, but this will moderate as 500,000 Australians return to work overseas and Australians move to the city for work. Conversely overseas workers appear more prepared to move into hostels or shared accommodation.

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Insurance access

Ongoing pandemic effects

Some industries are struggling to get insurance - professional indemnity and asset protection -especially in environmentally vulnerable areas.

The stop/start impact that COVID-19 staff testing is having on business operations is a problem. Cross border travel restrictions are causing problems for business and mental health problems are rising. There is a mental health component to the government small business initiative.

De-risking the business environment The forum discussed the need to de-risk our market for small and family business participation and disallow some terms in business-to-business contracts.

Access to finance Forum participants were concerned small businesses are accumulating more debt. There is limited use of changes in insolvency laws to know if these are meeting policy objectives. It was suggested HECS scheme for business be developed – modelling was requested, as well as a proposal for applicant suitability assessments, along with mentoring be considered in the onboarding process.

Pressure release Small businesses were struggling to address emerging issues, such as sustainability and ongoing challenges with access to justice and urged ASBFEO to ‘lean in’ on this. Other requests were to hold off on the 0.5% superannuation increase support cashflow during recovery.

Government priorities and program implementation

General issues raised • Make sure sole traders are considered in government work for small businesses.

• In Victoria, letters regarding National Environmental Protection requirements are being received but no one has been consulted.

• Modernising business register work is critical and should be rolled out as quickly as possible.

• Ongoing leasing challenges and a need for some adjustment attention.

• Ongoing mental health and wellbeing concern for small business owners and the need for an EAP program to support small business employees.

• Continuing need to simplify workplace relations system for smaller employers.

• In times of disasters, communications networks must be restored quickly to continue trading.

Source: Bruce Billson Small Business and Family Enterprise Ombudsman

Government’s digital agenda was backed by calls for government departments to lead by example, and build implementation momentum, by moving towards e-Payments and issue e-Invoices. Driving digital uptake supports other priorities around least-cost routing, building cyber awareness and digital identity reforms.

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MGA TMA Membership of the ACCC’s Small Business and Franchising Consultative Committee 2022 MGA TMA has again been accepted and appointed as a member of the ACCC’s Small Business and Franchising Consultative Committee (SBFCC) until 31 December 2022. This Consultative Committee comprises ACCC Commissioners and Directors, together with Small Business and Family Enterprise Ombudsman, Bruce Billson, and family and small business industry association leaders. Two meetings are held meetings each year, usually in May and October. If members have queries about the ACCC SBFCC or future meetings, please contact Jos de Bruin, Chief Executive Officer at MGA TMA.

ACCC SBFCC Mick Keogh, Rod Sims & ASBFEO Bruce Billson

Australian made and owned

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Ombudsman welcomes funding for critical small business mental health program MGA is aware of the constant pressure and stress members experience in their businesses. Members are attuned to the anxieties and stress-related behaviours of staff but often do not address their own troubles and worries that keep them awake at night. The COVID-19 Pandemic has escalated anxiety and mental health issues with members around Australia. COVID-19 restrictions, staff shortages, staff issues, customer abuse, raising costs to do business and increased compliance obligations, coupled with family and social stresses can be debilitating. MGA often discusses this intense pressure members experience to the highest level of Government and welcomes the recent announcement for additional Government funding to be apportioned to Beyond Blue. MGA urges members to seek immediate help if you are experiencing any from of stress, pressure or anxiety associated with your businesses. Acting Minister for Small and Family Business Anne Ruston announced an additional $4.6 million in funding to ensure Beyond Blue’s New Access for Small Business Owners program can expand and continue to assist small business owners who need mental health support. A further $2.1 million has also been announced to extend the Small Business Debt Helpline for 2022. The Australian Small Business and Family Enterprise Ombudsman, Bruce Billson, has welcomed the Australian Government’s mga.asn.au | February 2022 | Edition 1

commitment to renew funding for a critical mental health program tailored to small business owners. “I commend the Australian Government for supporting small business with this vital funding announcement,” stated Mr Billson. “Small business owners have endured so much over the past two years, pummelled by the pandemic and natural disasters. The road to recovery has been lengthy and challenging and that has understandably taken a toll on the bottom line and wellbeing. “Critically, Beyond Blue’s successful New Access for Small Business Owners program will continue to offer free one-on-one telehealth sessions with specially trained mental health coaches providing evidence-based advice on strategies for managing stress. “The success of the New Access for Small Business Owners program is built on it being delivered by coaches who have experience in small business. Being able to speak to someone who understands the mental load of running a small business makes a big difference. “Small business owners who look after their mental health, can also

help their business. With this renewed funding in place, help is available to small business owners who need it. “Both the mental health and financial counselling support is welcome, particularly for small business owners who have loans secured against the family home. We know the stakes are incredibly high and that losing the business often means also losing the home.” Source Bruce Billson Small Business and family Enterprise Ombudsman

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Building a store culture that values wellbeing As family and independent business owners our members are expected to be an expert in a number of business skills including inventory, finance, customer service, marketing, workplace relations, human resources, and workplace culture. Members report on the need to have awareness of staff mental health and wellbeing. The workplace culture and the way we work collaboratively as a team is more important than ever to maintain workplace harmony and productivity. At the recent MGA AGM in November 2021, guest speakers and workplace culture experts, Kevin smith and Rachel Davidson, gave a summation around business owner behaviours and actions that build the culture and wellbeing of people in the workplace. Their key messages for store owners and leadership teams: 1. Right now, the wellbeing of team members and managers has never been more important. We know that some people are struggling and more importantly, we know that some people are struggling in silence. 2. We will not know the extent of wellbeing challenges in our stores unless we monitor and measure the wellbeing of team members by using some simple tools to take a regular pulse check of how team members are travelling mentally.

3. Leadership teams need education about how to apply some practical tools so early signs and symptoms of mental injury can be seen and addressed. 4. Every store needs a wellbeing policy which RESPONDS quickly to wellbeing challenges, PREVENTS mental injury, and actively PROMOTES wellbeing across the store. 5. The wellbeing of team members and managers needs to be elevated to the same level of priority given to customer service, staff satisfaction and store profitability. Store owners need to take the lead and create an expectation in every store that wellbeing is critically important …are we giving that message now? Kevin and Rachel spoke about behavioural tools and actions to implement in the workplace for business owners to adopt, emphasising that these were not traditional management skills. They advised store owners to:

1. Endeavour to show care, compassion, empathy (not traditional “management” skills) 2. Develop a store Wellbeing Policy that recognises wellbeing hazards in the same way as physical hazards 3. Provide information and education about the meaning of wellbeing and how to recognise early signs and symptoms of distress 4. Create an instore system and process to monitor and measure wellbeing in the same way as other store assets are monitored. 5. Put wellbeing on the agenda at EVERY leadership team meeting. Members who would like to engage with workplace culture experts Kevin Smith or Rachel Davidson about tailoring a Well Being Culture in your store and business should contact the MGA National Support Centre on 1800 888 479.

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Have we left ourselves in a vulnerable state? Omicron has left chain store supermarket shelves bare. Is it time to break the grocery duopoly? MGA for many years has addressed the duopoly - Coles and Woolworths – that continues to use market power and dominance to expand and grow at a rate not seen in the world, placing consumers at risk by limiting their choice of where to shop. Over the past decades, family and independent food and grocery businesses have been ‘crowded out’ by unsustainable and unimaginative “must drive to” shopping centre developments across Australia, with market share dwindling from 55% in the 1970’s to approx. 14% today. Experts say empty shelves in the major chain supermarkets underscore the problem with the ‘oligopolistic’ structure of Australia’s grocery industry.

Key points • Australia’s grocery duopoly has exacerbated food shortages, according to a business expert.

•

New Zealand is considering ways to break its supermarket duopoly to increase competition.

• Independent retailers have managed to keep shelves full during the Omicron outbreak. Coles and Woolworths control 66 per cent of Australia’s grocery retail market. That is greater than Aldi, IGA and independent outlets combined. This duopoly has exacerbated the disruption caused by the rapid Omicron outbreak. According to Macquarie Business School senior lecturer, Prashan Karunaratne, “Perhaps it’s not beneficial to Australia in the long term if we are mga.asn.au | February 2022 | Edition 1

reliant on these concentrated supply chains which don’t deliver when such shocks hit.” New Zealand is considering ways to break its supermarket duopoly, so should Australia do the same? Coles and Woolworths rely on economies of scale and centralised distribution centres, currently at risk with COVID-19 disruption.

Supply chain disruption Surging Omicron infections in nearly every state and territory have crippled supply chains, forcing workers in processing, packaging, transport, distribution, and supermarket staff into isolation. Consumers have responded to bare shelves by panic buying, going without, or sourcing alternative supplies. Dr Karunaratne said Australia’s supermarket duopoly put consumers in a precarious and unique position compared to other developed economies. “The usual supply chain issues, during some sort of crisis or otherwise, are a little more pronounced in Australia’s case because we have a more concentrated market structure in this grocery chain space.” Coles and Woolworths rely on funnel produce and products through central processing and distribution centres,

then freight them across the country. “They have an over-reliance on central facilities and therefore we have less of them in Australia,” Dr Karunaratne said. “Therefore any disruption causes a larger proportional disruption.”

Independent retail thrives National Farmers Federation President Fiona Simpson says the supply chain story is entirely different for independent retailers, butchers, and grocers. “At the moment, a lot of the independent retailers and smaller fresh food markets and butchers are doing much better than the bigger supermarkets,” she said. Bevan Betros runs a family-owned grocery store, Betros Bros, in the Queensland town of Toowoomba, 120 kilometres west of Brisbane. Aside from some top-brand toilet paper, his shop shelves are full. “I think there’s next to no lines we’re out of as far as fruit and veg go,” he said. “Independents like ourselves, we’re at the market every day and we buy what we want and bring it up or our local growers bring it in, because the stuff has to go — it doesn’t stop growing.” Mr Betros said smaller retailers had flexible supply chains with local farmers even delivering the produce themselves. “There’s no shortage of anything really,” he said. “It’s all to do with distribution systems.”

INDUSTRY NEWS

NATIONAL

Dr Karunaratne says micro-economic reforms are needed to fix the supermarket duopoly. (Supplied: Macquarie University)

Changing competition policy Ms Fiona Simpson said the comparative success of smaller and more nimble supply chains during COVID-19, highlighted the need for more competition. “For us, that’s a reflection on competition policy, which, for a while in Australia, has had the supply chain focused in the hands of a couple of very big players. It’s something we need to focus on in Australia as we go forward and look at the future and what effect pandemics have.” Dr Karunaratne said there was no quick solution to fix Australia’s grocery ‘oligopoly’. “Given a small manufacturing sector, given a concentrated market structure in the packaging industry, given a concentrated market structure in the grocery industry, these are systemic structural issues that will take long-term micro-economic reform to address.” Policy reforms could include incentives for smaller players like farmers’ collectives and independents to expand and take up a bigger market share.

Across the Tasman, the New Zealand government is considering breaking the duopoly of Woolworths and Foodstuffs in its $22 billion grocery industry. This is in response to the New Zealand Commerce Commission’s draft report on grocery competition, which found competition was “not working well for consumers”. The commission’s recommendations included making it easier for new competitors or existing independent retailers to expand and creating a further major grocery retailer to stimulate competition. “I guess watch this space with what New Zealand does, with what they’ve recently announced, and perhaps Australia could monitor the cost benefit analysis of that solution,” Dr Karunaratne said. The major disruption to food supply in the chains, particularly fresh foods, such as chicken, meat and produce, has led consumers to discover the wonderful range and freshness of products in our members stores. Members report that customers are being delighted by the fantastic fresh foods e available from their stores sourced directly from local suppliers and growers or the local markets. Source ABC SEQ 18 Jan 22

INDUSTRY NEWS

NATIONAL

MGA pushes to ease COVID-19 restrictions causing severe worker shortages Mid-way through January 2022, MGA together with other industry leaders attended a crisis Food Supply Food Security meeting with Australian Small Business and Family Enterprise Ombudsman, Bruce Billson, Federal Minister for Social Services and Acting Small Business Minister, Ann Ruston. This is one of many such state and federal food supply and security meetings and task forces which MGA attends and shares the predicament of our members around Australia. This crisis meeting was held for the federal government to better understand the food supply and security risks caused be severe workforce challenges (unsustainable absenteeism) experienced by our businesses, and within our suppliers’ businesses, around the nation. These risks stem from workers being required to be COVID-19 tested and isolate, even when asymptomatic. Some members report that 40% of their staff are unable to attend work. This has placed significant pressure on food and grocery businesses to open doors and trade. Members report drastic actions have been needed in stores, including opening later, closing earlier, closing at lunchtimes, closing full days at a time, closing various departments such as deli, meat, bakery and so on. It is not just our stores but the entire food supply line from farm, to market, to manufacturing, to distribution centres, to all the freight services required to deliver goods to our stores. Deliveries of fresh food and groceries are days behind, and when deliveries arrive, the challenge is to find workers to get food onto the shelves for consumers to purchase. MGA together with other industry groups are advocating to overhaul coronavirus

isolation rules and free up supplies of rapid antigen tests, warning political leaders about the risk to the supply of essential products caused by chronic staff shortages. Like recent announcements concerning shorter quarantine rules for critical and essential workers, MGA and industry groups ask that food and grocery workers, as well as, freight and transport workers, be included in the shorter quarantine rules. This could open access to more than one million workers. The food supply and security issue can only get back to normal if states work together and have a simple, unambiguous, and consistent approach to this very serious matter. MGA has called for clear and nationally consistent guidelines on how to manage the re-entry of close contacts back into the workplace. Discussions also concerned the chronic shortage of rapid antigen tests (RATs) despite federal government assurances that it would supply ten million tests to the states in late January 2022. Health Minister Greg Hunt said recently the federal government was looking to supply the states with ten million tests by late January. Coalition MPs have been told the government has secured seventy million tests to arrive this month and next. MGA pushed back on members having to source and pay for RAT kits to test staff upon arrival for the commencement of shifts.

MGA believes a simple temperature check of each staff member prior to a shift commencing could be a very achievable solution and provide necessary detections and protections in the workplace. Something must be done urgently by the federal and state governments. The industry has never confronted a food supply challenge and worker shortage crisis such as what confronts us now from farm to food and grocery business shelves. MGA will continue to work closely with federal and state governments to get workers back into the food supply chain, not to mention our own food and grocery stores. There are more meetings to follow, including a Food Supply and Security meeting with the Minister for Home Affairs, Karen Andrews. MGA will keep members informed of news as it comes to hand.

VIC COVID Commander Jerome Weimar Worker Shortages Jan 21

Our businesses simply do not have the human resources, as the large chains do, to allocate people in our stores to enforce RAT staff protocols and record each test. The cost of the RAT kits is also prohibitive given the razor thin margins businesses operate under. MGA has requested the federal government supply free of charge RAT kits for three months, or at the very least, subsidise the cost of the RAT kits for family and private businesses. Victoria Food Supply & Food Security Task Force

mga.asn.au | February 2022 | Edition 1

INDUSTRY NEWS

NATIONAL

Metcash boost on local retail Retail group Metcash has seen half-year profit jump three per cent to $128.8 million, while earnings rose 13.9 per cent, off the back of the success of its MFuture program.

Group CEO Jeff Adams said the businesses food, liquor and hardware pillars had all benefitted from Metcash’s position in the market, with shoppers increasingly supporting local neighbourhood centres and moving from cities to regional areas. “Compared to 1H20 substantial growth was delivered with IGA supermarkets up 18.8 per cent, IBA stores in Liquor up 27 per cent, Independent Hardware Group stores up 17.7 per cent, and Total Tools stores up 51 per cent,” Adams said. “This is a significant achievement given the many challenges in the half including staff isolations, labour shortages, supply chain issues, continuously changing health regulations and other lockdown-related impacts.” Metcash’s total sales in its food department declined 4.9 per cent, however, or 16.8 per cent, including the impact of no longer supplying Drakes Supermarkets in South Australia and 7-Eleven on the east coast. Total like-forlike liquor sales were up 6.6 per cent, while the business’s hardware sales rose 17.9 per cent.

MOSCATO

Looking toward the remainder of the financial year ahead of it, Metcash said the first five weeks of 2H22 have been buoyed by customer behaviour and improved competitiveness and expects all pillars to see a strong holiday period. However, supply chain disruptions and increased COVID-19 related costs are expected, particularly in distribution centres. (Source: Inside Retail 06/12)

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Workforce and skills: small business critical supply chain (Food and Grocery) MGA is pleased the Government is listening to the very serious worker shortage needs small business operators are experiencing at present. This matter will continue to be an issue for a long while to come given the current spread of COVID-19 Omicron. MGA appreciates the speed with which this added change has been activated to address our worker shortages.

JobActive Providers

effective immediately and until the end of 2022, there will be no limit on the length of time Working Holiday Makers can work for the same employer.

The Department of Education, Skills and Employment (DESE) has prepared factsheets to assist businesses to access the supports and services available for recruiting staff, including details about where to find more information. These factsheets have been prepared in response to the questions and concerns around finding the relevant information in an easily digestible format.

This measure takes effect immediately for all ongoing students as well as new student arrivals who start a job prior to their course commencement and will be reviewed in April 2022.

Working Holiday Makers – Employer Flexibility

Student and Working Holiday Maker visa changes The Government has announced a series of visa measures to provide an incentive for fully vaccinated Student and Working Holiday Maker visa holders to return to Australia as soon as possible. This aims to address current workforce shortages caused by COVID 19.

International Student – Working Hours Flexibility: Due to current workforce shortages, the Government is temporarily extending this arrangement by removing the limit on Student visa holders’ working hours across all sectors of the economy. In addition, mga.asn.au | February 2022 | Edition 1

Effective immediately and until the end of 2022, there will be no limit on the length of time Working Holiday Makers can work for the same employer. The above measures are temporary and designed to provide immediate assistance to Australian businesses that are currently facing critical workforce shortages, to enable them to continue delivering goods and services to the community. There are currently around 150,000 Student and 23,500 Working Holiday Maker visa holders offshore. All international arrivals must meet Australia’s entry requirements including in relation to vaccination. Further details will be available on the Department of Home Affairs website https://www.homeaffairs.gov.au/.

INDUSTRY NEWS

NATIONAL

Beem It is all about getting small business customers and driving them back to your store Australia’s home-grown digital wallet and payments app, Beem It – issued by Digital Wallet Pty Ltd which is part of the eftpos group, is launching a new rewards feature enabling small businesses to create bespoke offers. Beem Rewards will provide 1.5 million Beem customers with the opportunity to earn cashback on their spend and receive offers and rewards from small businesses that join the program. A ‘map view’ enables customers to discover the location of participating businesses and available offers. Digital Wallet, through Beem It, has plans to build an Australian digital marketplace that aims to deliver on the unique needs of Australian consumers and merchants, and flourish through facilitating exceptional customer experiences Beem It CEO, Mark Britt said the rewards landscape was going through significant change and was set for a big shake up with the new Beem Rewards program scheduled for release in the coming weeks.

“Beem Rewards is a major new capability that propels the much-loved local digital wallet well beyond its renowned core social payments functionality – like splitting bills, keeping shouts civil and paying back mates,” Britt said. “It helps consumers that opt in to support Australian businesses and potentially get something back in return. After two tough years, Australians understand it’s time to back local businesses. Beem Rewards gives businesses a new platform to connect with customers and foster better relationships.” Rewards funds return to a ‘jar’ within a participating customer’s wallet which can be cashed out to a nominated debit card. Small businesses can sign up for a trial by visiting www.beemit. com.au/beemrewards

Least Cost Routing In conjunction with critical industries sectors, MGA TMA continues to advocate on behalf of our members, small business and family enterprise for access to equitable, affordable and reliable payments in a truly competitive environment. Joint advocacy gets significant media attention on the agenda with Australian politicians and regulators.

Much more still needs to be done on Least Cost Routing (LCR), mobile competition, digital platforms and e-commerce. Over the past few years, our joint advocacy on these issues has already seen significant reductions in fees where competition truly exists and the beginnings of regulatory change. While we still have some work ahead of us in 2022, we did make some significant progress this year, including three big wins: 1. A policy position from the Government on mandated LCR for contactless and online transactions

2. A new policy position from the RBA who now expects banks to provide and promote online LCR by the end of next year 3. Enforceable ACCC undertakings for eftpos as part of AP+ to do everything in its power to promote LCR and deliver on its roadmap MGA TMA will continue to fight the good fight and bring this debate home once and for all with a bipartisan policy position on mandated default LCR in all form factors, including mobile wallet, and will continue lobbying and keeping the debate alive in Canberra ahead of the election.

LEGAL AND IR

NATIONAL

Family and domestic violence leave: Entitlement, obligations, and upcoming changes Family and domestic violence is a national crisis in Australia, which significantly impacts employees’ participation in the workplace and their work performance. Workplaces can play an important role responding to family and domestic violence by supporting affected employees. What is family and domestic violence? As defined in the Fair Work Act 2009 (Cth), family and domestic violence is violent, threatening, or other abusive behaviour by a close relative of an employee that seeks to coerce or control the employee and causes the employee harm or to be fearful. “A close relative of the employee” is a person who is a member of the employee’s immediate family or is related to the employee according to Aboriginal or Torres Strait Islander kinship rules.

Family and domestic violence leave - entitlement and obligations Currently all employees, irrespective of permanent or casual status, are entitled to five days of unpaid family and domestic violence leave in a 12-month period. This entitlement is available in full at the start of each 12-month period and does not accrue progressively during the 12-month period. The entitlement also does not accumulate from year to year. The leave can be taken in a single continuous five-day period, in separate periods of one or more days, or any other separate periods as agreed between the parties including periods of less than one day. Members and employees may otherwise agree to further days of unpaid leave to assist the employee in dealing with the impact of family and domestic violence. mga.asn.au | February 2022 | Edition 1

An employee is entitled to take family and domestic violence leave if:

• they experience family and domestic violence; and

• they need to do something to deal with the impact of the family and domestic violence, for example to attend court hearings, accessing police services or arranging safe accommodation; and

• it is impractical for them to do that thing outside of their ordinary hours of work. Employees are required to provide a member with notice of taking such leave and members may request evidence that the leave was taken for the purpose specified by the employee. Members also have an obligation to take steps to ensure that information provided by an employee experiencing family and domestic violence remains confidential, unless disclosure is required by law or is necessary to protect the life, health or safety of the employee or another person.

Proposed changes to family and domestic violence leave The existing entitlement to unpaid family and domestic violence leave was introduced in 2018. There are proposals by trade unions and other interested parties to replace the existing unpaid entitlement with ten paid days of leave instead. The Fair Work Commission has called for submissions that oppose any

proposed variations as part of its review of family and domestic violence leave terms in modern awards. Although MGA recognises the widespread harm caused by family and domestic violence and encourages members to play a proactive role in supporting affected employees, MGA’s submission opposes the proposed variation to replace the existing unpaid entitlement with ten paid days of leave, due to the significant cost this would impose on small and medium businesses. However, MGA strongly supports that an employee should be able to access paid personal/carer’s leave for the purpose of taking family and domestic violence leave. MGA has provided its submissions to the Fair Work Commission in February 2022 and will keep members updated.

How can members support employees affected by family and domestic violence? MGA encourages members to consider supporting employees affected by family and domestic violence through the following:

• Implementing a family and domestic violence leave policy to inform employees of their entitlement to take such leave and to communicate the member’s support of affected employees;

• Conducting training or information sessions to:

» increase awareness of the entitlement to take family and

LEGAL AND IR

NATIONAL

domestic violence leave;

» inform on procedures to access

specific counselling services and/or employee benefits program;

• Permitting employees to take

such leave; and

» instruct managers and supervisors of procedures to identity and support employees experiencing family and domestic violence.

• Engaging in workplace safety planning and protocols for affected employees, such as individualised safety procedures;

• Providing support to affected employees through an employee assistance program (EAP), workplace

additional unpaid absences to deal with the impact of family and domestic violence, should the existing entitlement prove insufficient; and

• Providing paid family and domestic violence leave in addition to the existing entitlement, should the existing entitlement prove to be insufficient. Members are obliged to provide flexible working arrangements for employees that experience violence from a family

member or that care for an immediate family or household member that experiences family violence. Members have work/occupational health and safety obligations which require taking reasonably practicable steps to ensure employees’ safety at work, including employees that experience family and domestic violence. MGA Employment Lawyers can be contacted on 1800 888 479 Option 1 for queries on family and domestic violence leave.

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INDUSTRY SPOTLIGHT

VICTORIA NATIONAL

From strength to str

Daly’s IGA Ko store, spanni generations

In May 1918, Michael Daly and his family relocated from the gold mining town Berringa, south of Ballarat, where he operated a grocery store, to Koroit in southwest Victoria and began trading as M. Daly & Sons from a grand Victorian building at 150 Commercial Road. Fast forward to 2021 and five generations later, his great grandsons, their families, and their team, have worked for four years to plan and execute the brand-new Daly’s IGA Koroit. On planning the store, local demographics was researched, together with viewing various stores across the country and speaking to other retailers to enhance ideas. The original store continued to trade whilst the new store was being built. Daly’s decided with the store over 100 years old and extended several times throughout its history, renovating and extending, while to continuing to trade would be complex - a new store was the best solution.

mga.asn.au | February 2022 | Edition 1

The new 2000 square metre supermarket is positioned directly next door. This allowed for continued trade in the old supermarket during construction work and a direct ‘overnight’ swap to the new store when completed. Located in a small regional country town, it was important the Koroit community still had a supermarket during construction. Daly’s are impacting the Koroit economy, employing 82 staff in the new store compared with 26 staff previously. This increase of 56 employees is a significant in a small regional town with a population of around 2000. The former supermarket forms part of stage two of development. The original sandstone front facade will be retained, and four retail tenancies will open to the supermarket’s arcade. With the population in Koroit, growing, these spaces will be a valuable addition for the community.

Daly’s set o supermark 15 minutes limited ran shopping a

There is a f building. C into the fre putting the have ended

Daly’s IGA Marketplac building an lines produ cheeses, m will carry a refurbished

rength.

oroit new ing the

out to make a point of difference to other kets in the region; Coles, Woolworths & Aldi are s away in Warrnambool. The old store small had a nge and their challenge was to convert customers at Daly’s for a ‘top-up’ to carry out their full shop.

full wall of retail space along the front wall of the Clear glass windows allow shoppers to see straight esh food departments from the main street e new offer on full display. The new departments d up larger than initially planned!

have established new branding, ‘Daly’s Fresh ce’. The new logo features on the front of the nd carries across onto packaging of the fresh uced in-store, which includes juice, popcorn, cut meat (in-store butcher), and deli. This branding across to their Portland & Heywood stores when d.

INDUSTRY SPOTLIGHT

The team was conscious of the design choices, giving consideration and attention to detail of the practical side of operating the store in the future. Details such as stainless-steel wall sheeting and corner trims, floor trench drains to cool rooms and ovens, bollards and wall protection, vinyl wall sheeting etc. were incorporated. While some details could be seen as unnecessary or overkill, investing in these details at the start provides improved productivity within food prep spaces, easier and quicker to clean and reduces repairs and maintenance going forward. The increased focus on sustainability in the grocery industry provided several options for Daly’s to consider. Several refrigeration solutions were reviewed, with them deciding on a cascade plant system including air con and heat reclaim and glass doors to meat and dairy. Provision for future potential solar connection, an energy efficient lighting design, double glazing, thermal doors and airlocks and additional insulation exceeding requirements. Polished concrete flooring reduces cleaning and has lower ongoing maintenance costs. A UPS and a 550 kVA generator have been installed to enable uninterrupted trading with full power, including refrigeration during mains power outages. Within three months of trading, this has helped the store on two occasions allowing them to continue trading during power outages. IGA stores focus on local and this was no different for Daly’s when constructing their store. A local builder (Hearn Constructions) was engaged and where possible, local trades and suppliers were used through the build and fit out process. COVID-19 lockdowns and restrictions impacted the build; however Daly’s were fortunate the extensive planning meant much equipment was already confirmed and on order. The COVID-19 situation progressing and causing global shipping and delivery chaos throughout the build, Daly’s decided to obtain as much equipment and fit out as early as possible. Fortunately, everything required was sourced on time (for the most part). A delay on freezer cases, on order for 12 months, delayed the planned opening by two weeks but thankfully 32 doors of freezers were fitted days before the opening. Celebrations, with a soft store open, were had on 24 November 2021. Independent Retailer congratulations the Daly family and team, and everyone involved. The legacy bestowed upon this generation of Daly’s, has been greatly honored by their spectacular new IGA Koroit store. Well done!

INDUSTRY SPOTLIGHT

NATIONAL NATIONAL

mga.asn.au | February 2022 | Edition 1

LEGAL AND IR

NATIONAL

Leave options for COVID-19 related absences There are numerous leave options available for employees covered by the General Retail Industry Award 2020.

As the Omicron wave of COVID-19 spreads across Australia, more employees are being exposed to COVID-19. Employees are requesting time off work to isolate, either because they are awaiting results of a test, have contracted COVID-19, or they are a close contact of someone who has contracted COVID-19. Under the Fair Work Act 2009 (Cth) and the General Retail Industry Award 2020 (GRIA), your employees have a number of leave options available during this time.

Unpaid pandemic leave Any employee, whether full-time, part-time, or casual, may access unpaid pandemic leave under the GRIA for the duration of their isolation. Employees may take up to two weeks of unpaid pandemic leave, and longer by agreement. Employees do not have to accrue this leave, and it is available to them immediately. They are able to request this leave because they have been prevented from working by measures taken by the government in response to COVID-19 (e.g., being asked to self-isolate). Once requested, the

member has to permit the employee to take this leave.

their employer. This is available to fulltime and part-time employees.

Please note that employees who merely do not want to work due to fear of contracting COVID-19 will not be able to access unpaid pandemic leave.

On unpaid leave, the employee will not continue to accrue annual leave or personal/carer’s (sick) leave, and the period will not be counted towards their length of service. An employee may take an unlimited amount of unpaid leave depending on their agreement with their employer, however it is advisable that any period of unpaid leave is clearly defined. It is advisable for the parties to agree to a definite period of unpaid leave.

Annual leave A full-time or part-time employee with accrued annual leave may request to take their annual leave. You may not direct your employees to take this leave, except in special circumstances. Therefore, annual leave must be taken by agreement. Last year, employees could access annual leave at half pay. As of 31 December 2021 onwards, employees are not permitted to commence a new period of annual leave at half pay, although an existing period that began before 31 December 2021 may continue.

Unpaid leave / leave without pay An employee may also take a period of unpaid leave by mutual agreement with

Personal/carer’s (sick) leave Your employees will not be able to access their personal/carer’s (sick) leave if they are only isolating after becoming a close contact or taking a test. Sick leave is only available if the employee is not fit for work due to personal illness or injury. If the employee is diagnosed with COVID-19, or suffering from symptoms of COVID-19, they may access their sick leave. You may request reasonable evidence from the employee that satisfies you that they are unwell, such as a medical

LEGAL AND IR

NATIONAL certificate. As doctor’s appointments and PCR tests become less available to employees, other evidence may be acceptable. For example, you may instead request that the employee provide correspondence from the government received after reporting their positive Rapid Antigen Test. Alternatively, you could ask the employee for a photograph of their positive Rapid Antigen Test next to their signature and today’s date.

Government payments Employees may be eligible for various government payments depending on their employment type and what leave arrangements they have made with you. It is the employee’s responsibility to check their eligibility for any government payments, and you should avoid promising an employee that they will be eligible for a payment if they accept a certain leave-related arrangement. Allow the employee to conduct their own

mga.asn.au | February 2022 | Edition 1

research and collaborate with you to find a leave solution that suits both parties.

Keep records of leave arrangements An agreement with any employee to take any period of leave described above should be recorded in writing and kept for your records. This agreement can be a form which details the following:

• The employee’s name • The type of leave being taken • The commencement date, and end date, of the leave

• The total number of leave in hours or days; and

• The signature of the member and your employee. If you need assistance with this form, please contact our Legal and IR team for a template.

My store is not covered by the GRIA. Do my employees have access to these leave options? Your employees will have access to annual leave, unpaid leave, and personal leave; however, it is unlikely they will have access to unpaid pandemic leave. You must check your individual enterprise/ collective agreement or award to confirm what options are available to you. Our Legal and IR team can assist you in considering options under any industrial instrument. We understand that organising leave for some employees may be challenging and each business will have unique circumstances. Should you require any assistance, please do not hesitate to contact our Legal and IR team on 1800 888 479 Option 1 or legal@mga.asn.au.

LEGAL AND IR

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 do not hesitate to contact the Legal and IR team on 1800 888 479 Option 1 or legal@mga.asn.au if you have any queries in relation to mandatory vaccination policies and how they can be lawfully implemented.

NATIONAL

PROTECT

YOUR STAFF

AGAINST

COVID-19

Offer your staff a flexible, easy COVID-19 vaccination service through their local community pharmacy. Contact Johann Cramer from Guild Corporate Health 02 6270 1868 or info@guildcorporatehealth.com.au

mga.asn.au | February 2022 | Edition 1

LEGAL AND IR

NATIONAL

Dealing with excessive annual leave accrual There may be situations where members have employees who have accumulated an excessive annual leave balance. Below is information on how members can deal with the issue of an employee’s excessive annual leave accrual. When is annual leave considered excessive? Generally, an employee is considered to have an excessive annual leave balance if they have more than:

• 8 weeks of annual leave, or • 10 weeks of annual leave if they are a shift worker.

Dealing with excessive annual leave accrual Some modern awards (such the General Retail Industry Award (GRIA)) and registered agreements contain provisions about how employers can deal with employees who have an excessive annual leave balance. Generally, these include the following: 1. Agreement with employee to take annual leave The first step is that members should have a conversation with the employee to genuinely reach an agreement on how to reduce or eliminate their excessive annual leave accrual. 2. Direction to take annual leave Under the GRIA, if an employer has genuinely tried to reach agreement with an employee but agreement is not reached, the employer may direct the

employee to take a period of paid annual leave if the following conditions are met:

• The employer must tell the employee in writing that they need to take annual leave;

• The employer must give the employee at least 8 weeks’ notice (and not more than 12 months) of when the leave will start;

• The annual leave has to be at least 1

• The employer and employee must enter into a written agreement to the cashing out;

• The agreement to cash out annual leave must not result in the employee having less than 4 weeks of annual leave;

• The payment for the cashed-out leave has to be at least the amount that the employee would have been paid if they took the leave; and

week long;

• The annual leave and cannot result in the employee having less than 6 weeks of accrued annual leave; and

• The leave must not be inconsistent with any leave arrangement agreed by the employer and employee. 3. Cashing out annual leave If the employee does not wish to take a period of annual leave, another option the employer has is to enter into an agreement with the employee to cash out their annual leave accrual. An employer cannot force an employee to enter into an agreement to cash out annual leave - it must be mutually agreed between both parties. Under the GRIA, there are certain requirements that must be met before an employee can cash out their annual leave. This includes the following:

• The maximum amount of annual leave that may be cashed out in any period of 12 months is two weeks. If the above requirements cannot be met, then the employee cannot cash out their annual leave entitlements. If the employee is cashing out their annual leave, payment for the cashed out annual leave must be the same as what the employee would have been paid if they took the leave. This means that if the employee is paid annual leave loading during their employment, it will need to be paid with the cashed out annual leave. If you have any questions on how to deal with employees with excessive annual leave balance, please do not hesitate to contact the Legal and IR team on 1800 888 479 Option 1 or legal@mga.asn.au.

INDUSTRY NEWS

NATIONAL

mga.asn.au | February 2022 | Edition 1

INDUSTRY NEWS

VICTORIA

Mental health and wellbeing surcharge .05% in Victoria Without any consultation, the Victorian Treasurer Tim Pallas announced in his State Budget address in May 2021 that Victorian employers with a payroll of $10m or more, would be subjected to a Mental Health and Wellbeing Payroll Tax Surcharge of .05%. Commenced on 1 January 2022, this surcharge is to provide additional funding for Victoria’s mental health system.

These employers will commence paying the .05% surcharge when they lodge their January 2022 monthly return in PTX Express due on 7 February 2022. The surcharge is payable at the same time of payroll tax. If members pay payroll tax monthly, members will also pay the surcharge monthly and if members pay payroll tax annually, members will pay the surcharge annually.

Treasurer Pallas stated that the .05% mental health and wellbeing surcharge is a revenue mechanism that will provide a stable and dedicated form of additional funding for the mental health system.

The Treasurer failed to recognise independent supermarket and timber and hardware models have people employed to serve customers, unlike the chains which are continually mechanising to save on wages costs - margins in food and grocery are razor thin.

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

EFT0025_ABE_Half Page_190x136mm_3.indd 1

22/6/21 3:36 pm

CORPORATE PARTNER ADVERTISING

NATIONAL

Supply Shortages lead to learnings for the future on Supply Chain Management As Australians begin to ease back into a semi-normal lifestyle, it’s not easy to forget the additional risks we now face. It’s not just those going about their everyday lives who face the threat of catching COVID-19, but also the risks and challenges businesses face, including disruptions to their activities In the last few weeks, walking into your local supermarket may have looked a bit different to what we’ve known the past few months. Just as we thought supply of meat, veggies and of course toilet paper were back to normal, businesses were hit with another round of supply chain disruptions. This has seen new customer limits on goods such as meat, Panadol, Rapid Antigen Tests and again, toilet paper. In 2020-21, the empty shelves were due to spikes in demand from customers, as many responded to lockdowns by overconsumption of goods. This shocked supply chains as it caused a disruption in the rhythm of distribution. In 2022, the shortages are due to supply-side problems, and are being seen nationally. COVID has not only impacted staffing levels on the front line due to the rise in the number of cases and quarantining, but has also impacted all facets from truck drivers, warehouse workers, to the issue of availability of workers, many overseas such as fruit growers. Woolworths chief executive Brad Banducci stated that “more than 20 percent of distribution staff and more

mga.asn.au | February 2022 | Edition 1

than ten percent of store workers are absent”. Whilst much of this seems uncontrollable it does give the learnings to keep one eye on seeking a way to future proof disruptions to your supply chains, some key things to think about are:

» Consider whether you should purchase surplus stock when ordering from suppliers. Having additional stock than what was originally needed can help mitigate the risk of supply chain disruptions, that would otherwise lead to customer orders being placed on backorder while more stock is ordered.

» Invest in technology such as inventory management software that can provide real-time updates, including inventory levels, stock on order and supplier on-time performance.

» Ensure you have backup options

to your major supplier.

» Regular audits of stock through an Audit Specialist can identify any potential risks and review your businesses supply chain. Adroit Insurance and Risk has a team of Risk Advisers that have dealt with assisting businesses through these risk mitigation factors and help ensure any changes to their business are adequately covered, for example has the increased stock levels been factored into your cover, if not you may be left exposed due in the event of a loss. We also have access to several partners who can assist in Supply Chain Analysis to help you identify current emerging risks for you in this space. So why not get a Free Health Check of your business today by one of the Adroit team a partner of the MGA for 5 Years. Travis Noffke, Senior Risk Adviser | Adroit Insurance and Risk adroit.com. au Travisn@adroit.com.au M 0419 299 402

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INDUSTRY NEWS

NATIONAL

Outstanding IGA supermarkets across the country recognised at the annual IGA National Awards of Excellence The nation’s best independent supermarkets have been recognised at the 2021 IGA National Awards of Excellence. Held on Saturday 4th December, the annual awards provided an opportunity to formally recognise and celebrate the achievements of independent retailers after what’s been another challenging 12 months. The national awards truly reflected the “new normal”, with a dinner hosted in individual states simultaneously and the awards broadcasted from Sydney to each venue. Award-winning actor, presenter and IGA ambassador, Shane Jacobson, hosted the ceremony at the Australian National Maritime Museum in Sydney. A number of other wellknown Australian TV personalities and presenters hosted the satellite dinners in each state, including Shelly Craft in Brisbane, Tim Campbell in Melbourne, Kym Dillon in Adelaide and Tracy Vo in Perth. A total of 22 awards were presented during the evening. Additionally, South Australian retailers from Penola Fresh IGA, Shane and Kerry McPherson, were inducted into the prestigious IGA Hall of Fame.

The winners included: National Retailer of the Year • SUPA IGA Mt Cotton, Qld SUPA IGA / Foodland IGA Store of the Year • SUPA IGA Mt Cotton, Qld IGA Store of the Year • White’s IGA Mt Coolum, Qld IGA Xpress Store of the Year • Lovey’s IGA Xpress Hawks Nest, NSW/ ACT

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IGA Delicatessen Department of the Year • Ritchies Fine Food IGA Spit Junction, NSW/ACT SUPA IGA / Foodland IGA Delicatessen Department of the Year • SUPA IGA Mt Cotton, Qld IGA Meat Department of the Year • IGA St Leonards, Vic SUPA IGA / Foodland IGA Meat Department of the Year • SUPA IGA Mt Cotton, Qld IGA Bakery Department of the Year • Ritchies Fine Food IGA Spit Junction, NSW/ACT SUPA IGA / Foodland IGA Bakery Department of the Year • SUPA IGA Mt Cotton, Qld IGA Fresh Produce Department of the Year • Romeo’s Food Hall IGA St Leonards, NSW/ACT SUPA IGA / Foodland IGA Fresh Produce Department of the Year • Daly’s SUPA IGA Portland, Vic IGA Grocery & GM Department of the Year • Ritchies Fine Food IGA Spit Junction, NSW/ACT SUPA IGA / Foodland IGA Grocery & GM Department of the Year • SUPA IGA Tully, Qld IGA Dairy-Freezer Department of the Year • White’s IGA Mt Coolum, Qld SUPA IGA / Foodland IGA Dairy-

Freezer Department of the Year • SUPA IGA Mt Cotton, Qld IGA Customer Service & Experience Award • White’s SUPA IGA Bli Bli, Qld Retail Transformation & Innovation Award • IGA Ningaloo Harvest, WA IGA Xpress Small Format Store Innovation Award • IGA Xpress Bibra Lake, WA IGA Xpress Fresh Award • Lovey’s IGA Xpress Hawks Nest, NSW/ ACT Community Award • Zuccoli IGA, SA/NT Rising Star Award • Scott Britza, Parton’s IGA, WA Hall of Fame • Shane & Kerry McPherson, Penola Fresh IGA, SA/NT In its 22nd year, the awards created an opportunity to recognise and celebrate the achievements of the stores and the role they play in their local communities. The judging criteria covers a variety of areas, including customer service, community pride, department excellence, brand values, merchandising and the store’s overall performance. Scott Marshall, Metcash Food CEO said: “Whilst we’re not quite all in the same room, it’s fantastic to be able to come together in this way to celebrate and

INDUSTRY NEWS

NATIONAL recognise the dedicated retailers who are working tirelessly to support their local communities. Despite the challenges faced over the past couple of years, it’s been incredible to see how retailers continue to go above and beyond to provide standout offerings in their local communities. “Local grocers lie at the heart of the communities they work in and these awards are testament to the passion, resilience, hard work and commitment they have in delivering a unique shopping experience for their customers. Congratulations to all of the award winners, they are truly welldeserved.”

Shane and Kerry McPherson celebrate Hall of Fame accolade

retailers are also the largest employers in town. Scott Marshall said: “Shane and Kerry’s long-standing contribution to the independent retail industry is incredible. They are the heart of their local Penola community, whether that be supporting local up-and-coming suppliers or getting behind local charities and clubs. Adored by their family and locals alike, their legacy is outstanding and a true testament of their passion and dedication to the independent network.”

IGA National Chairman Joseph Romeo in Sydney

The presentation was made to Shane and Kerry McPherson by their son, Max McPherson, at the 2021 IGA National Awards of Excellence on Saturday 4th December. National IGA Retailer of the Year SUPA IGA Mt Cotton, QLD

Community icons and owners of Penola Fresh IGA, Shane and Kerry McPherson, have been inducted into the Dr. Thomas S. Haggai IGA Hall of Fame. Since its inception in 2001, the coveted honour recognises the recipient’s outstanding achievements and contribution to the Australian independent retail industry. Speaking on her induction, Kerry McPherson said: “It’s an incredible honour to have been inducted into the IGA Hall of Fame. “We have been in the retail industry for over 30 years. We love what we do, we’re passionate about our local community and feel fortunate to have been involved in many aspects of it.” The McPhersons play an important role in their local community, whether that be by supporting and sourcing locally produced and made products for their shoppers or being involved with local charities and clubs, such as the Lions Club, MND and Pink Up Penola Breast Cancer Group. The

Shane & Kerry McPherson, Penola Fresh IGA, SA with Metcash SA GM Matt Roberts

INDUSTRY NEWS

NATIONAL QUEENSLAND

Queensland small business COVID recovery Prior to Christmas MGA met with Queensland Small Business Minister Di Farmer and Small Business Commissioner Maree Adshead to discuss the imminent challenges Queensland small business owners are facing, and will continue to face, as Queensland borders open and COVID-19 restrictions are brought in line with NSW and Victoria. Topics included how to handle close contacts, availability of rapid antigen tests and being able to stay open for business. COVID-19 compliance protocols were discussed and will continue to assist control of the virus, such as QR codes, mask wearing, together with the importance for the Qld population to be triple vaccinated. Staff shortages were discussed given the high occurrence of positive cases particularly in South East Queensland, and the need for these people to isolate. Food supply and food security issues were identified as major causes for concern given staff shortages across the entire food supply chain. Dr Karen Hooper, Productivity Commissioner, Office of Productivity and Red Tape Reduction joined the meeting to provide an overview of Queensland Treasury’s new Office of Productivity and Red Tape Reduction’s role. Dr Hooper stated Queensland’s economic recovery was predicated upon identifying ways to increase productivity and regulatory reform for priority areas so as to boost small business productivity.

Sml Bus Commissioner Maree Adshead addresses the meeting 16Jan 22

MGA will keep members advised of Queensland Government initiatives to assist small businesses recovering from the serious hiatus caused by COVID-19 restrictions and lockdowns.

Minister Sml Bus Di Farmer addresses the meeting 16Jan 22

Minister Sml Bus Di Farmer & Maree Adshead Sml Bus Comm 16 Dec 21

mga.asn.au | February 2022 | Edition 1

INDUSTRY NEWS

NATIONAL NEW SOUTH WALES

NSW COVID-19 workers compensation provisions to be wound back After a robust discussion between MGA NSW members, NSW Small Business Commissioner Chris Lamont, and MGA in October 2021, it was decided to write to the then NSW Treasurer Dominic Perrottet and the Minister for Small Business and Finance Damian Tudehope, to advocate for a repeal of COVID-19 related workers compensation laws that could be detrimental to members, as well as cause massive workers compensation insurance premium increases in years to come. The 2020 workers compensation amendments were a product of the pandemic and restrictions prevailing at the time. The amendments were included in part of Emergency Provisions Bills, covering a range of short-term adjustments to statutory provisions, to overcome problems created by the drive to eliminate COVID-19. The presumptive liability provisions introduced in July 2020 are no longer appropriate given the widespread opening of the economy and free access to vaccination for COVID-19. When introduced, the provisions went further than similar laws in Australia or the world. The NSW Government introduced legislation in early December 2021 to wind back the workers compensation which presumed liability provisions for COVID-19, was both timely and MGA believes sensible. Now is the time to revert to the normal

principles for workers compensation liability for COVID-19 under which workers can still claim for work-related infection. The public health strategy, risks of exposure and vectors of transmission for COVID-19 have all changed substantially since July last year. To continue to hold employers in some industries automatically responsible for an employee’s COVID-19 infection is no longer sustainable. This is unfair and defies common sense to assume COVID-19 is likely to have been caught at work. To continue the presumed liability provisions risks significant unfair financial stress on the workers compensation scheme and employers in the industries covered by the s19B presumption. MGA thanks the NSW Government for responding to this very serious issue in a timely and expedient manner.

INDUSTRY NEWS

NATIONAL

ACCC advises recent pricing of rapid antigen tests could be unconscionable The Australian Competition and Consumer Commission (ACCC) has been vocal in its concerns over the retail pricing of rapid antigen tests, often costing $20 to $30 for a single test, with reports a single test can be as high as $70 to $100. This may be considered unconscionable in the eyes of the ACCC, in light of rapid antigen tests costing between $3.95 and $11.45 for a single test at wholesale price. In mid-January 2022, the ACCC had received approximately 1,800 reports from the public surrounding the pricing of rapid antigen tests. Between 25 December 2021 and 12 January 2022, the number of reports received, based on industry areas, were:

• Pharmacies: 879 reports • Convenience stores, tobacconists, and supermarkets: 283 reports

• Petrol stations: 272 reports. Several businesses have the ACCC’s attention due to repetitive reporting by the public. More worrying to the ACCC, some retailers are refusing to provide receipts or providing incorrect receipts to consumers. Some reports include a convenience store recording the sale of rapid antigen tests as a ‘sandwich’, while other retailers only accept cash, simultaneously refusing to issue a receipt, despite a customer’s request for one. This is no small issue as a refusal to provide a receipt when requested by a customer for a purchase of $75 or more is a breach of the Australian Consumer Law. The pricing of rapid antigen tests is a matter the ACCC takes very seriously and has established a team to work through the reporting and investigate the issue further. The ACCC has publicly advised that they will not be shy to name and shame suppliers and

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retailers who, in their eyes, are doing the wrong thing. Whilst businesses are able to set their own prices, they are not permitted to make false or misleading statements about the reason for high prices, and must set prices independently of their competitors, and not collude about pricing. In certain circumstances, excessive pricing of essential goods or services may be found to be unconscionable.

The ACCC has stated that they will continue to monitor the situation and will take appropriate action under their existing powers. Further, anyone who has evidence of price fixing cartels can contact the ACCC https://www.accc.gov.au/ contact-us/contact-the-accc/reporta-consumer-issue or via our webform https://www.accc.gov.au/contactus/contact-the-accc/report-an-issueaffecting-your-business

TIMBER NEWS

NATIONAL

MGA TMA Management Committee The MGA TMA Management Committee finally managed to hold a face-to-face meeting in December 2021 at MGA TMA’s office in Malvern. Peter Alexander, Richard Hill, Mike Drew, Peter Bennett, Clive Dossetor, David Caroselli, Jos de Bruin, Mark Paladino, Angeline Lee, and Marie-Claire McKiernan were in attendance.

MGA TMA Committee

Clive Dossetor KAREM WOODCRAFT P/L

Peter Alexander PRESIDENT

Committee meetings are held every two months and there are always a significant number of items on the agenda. Matters discussed in December included: wage rates, least cost routing/merchant payment fees, increase in superannuation contribution, casual conversions, domestic violence leave review, training initiatives, COVID restrictions, mandatory vaccination mandates, staff shortages and Maritime Union Australia (MUA) strikes. The impact to businesses of MUA strikes was raised. MGA TMA has advocated on behalf of members impacted by this issue and contacted sixteen federal and state government ministers. It has been reassuring that several have acknowledged our communication, with some advising how they are working with the MUA to lessen strike action. MGA TMA members are encouraged to contact a committee member listed above or Marie-Claire McKiernan by email marie-claire. mckiernan@mga.asn.au with any issues or concerns.

Mike Drew BAYSWOOD TIMBER

Peuker & Alexander

Richard Hill VICE PRESIDENT

Peter Bennett BRITTON TIMBERS P/L

David Caroselli DAVIDS TIMBER P/L

Hazelwood & Hill

VACANT

MGA TMA and the Independent Retailer magazine are interested in hearing from members on any stories or issues you would like to share. Please contact Marie-Claire McKiernan at marie-claire.mckiernan@mga.asn.au

LIQUOR NEWS

NATIONAL

Long serving MGA National Liquor committee member steps down After serving on the MGA National Liquor Committee for over seven years and representing MGA Liquor as a Board Member on the ACT Liquor Advisory Board for six years, Peter Karkazis has stepped down from the Committee to focus on his business interests and spend more time with his family. Peter has contributed valuably to MGA’s response submission to the ACT Building on Liquor Reforms White Paper, rejecting the proposed 25% increase in licence fee for all off premise with annual gross sales of $1million or more, and having it raised to $3 million or more; the introduction of the ACT Container Deposit Scheme; and many other issues that presented during his time as a Board member of the ACT Liquor Control Advisory Council. Peter has been a conscientious MGAL committee member, advocating not only for the ACT MGA members, but also for independent liquor members across Australia. The MGA National Liquor Committee and MGA Board thanks Peter for all his hard work, his willingness to share information and his positive contribution at meetings. The MGA Liquor committee would like to thank Peter for his unequivocal support and wish him well in his future endeavours.

Peter Karkazis

mga.asn.au | February 2022 | Edition 1

SUSTAINABILITY

NATIONAL

Technology driven sustainability – MiPlanet The role of independent supermarkets in sustainable shopping.

Embracing environmental sustainability by connecting with sustainability conscious customers will give Independents an edge to compete. As Australia enters its third year of the COVID-19 global pandemic, one narrative persistently pursues the grocery retail industry – faltering supply chains, ongoing staff shortages and challenges of stalwart compliance, with ever-changing health orders and public safety concerns. One may be forgiven for thinking the coronavirus and its myriad impacts are the sum and substance of this generation’s spending habits, tarnished as they are by tales of hoarded toilet paper and beef mince, Battle Royale. This myopic lens, however, overlooks the broader trend distilling in decades of retail data – sustainable shopping. “It might surprise some retailers that sustainable shopping has grown more important to consumers in the last 19 months,” says Lorraine Whitmarsh, Professor of Environmental Psychology and Director of the Centre for Climate Change and Social Transformation in the UK. “During

the global financial crisis of 2008, we saw that climate change concern massively dropped. What we’re seeing now is it’s really embedded.” Whitmarsh contends that concern over environmental degradation and climate change, already at an all-time high in 2019 just prior to the pandemic, actually rose in the years that followed. So how can independent grocery retailers use sustainability to capitalise on the zeitgeist and regain market share? It is no secret that the last decade has seen independent retailers fighting to retain profitability. With successive governments legislating to the advantage of major players, Woolworths now dominates the grocery sector in Australia, with a 37% market share. Coles comes in second place, holding 28% of the market. While Aldi has a smaller market share (11%), it is rapidly growing, up from just 4% in 2009. Trading as IGA, Metcash comes in fourth place, with a 7% market share1. Whilst Metcash 7% market share2 is far from chump change, it is worth taking a holistic view of multigenerational spending to see how

this breaks down along sustainability lines. According to the ABS, Australians spent $10.8 billion at the supermarket in September 2021, which is equivalent to about $508 per person. On average, Millennials and Gen Y pay the most for their weekly shop ($173), followed by Gen X ($169), and Baby Boomers, who spend an average of just $132 per household per week. While many experts would credit the boomer generation for their savvy saving habits and perhaps fault the younger generations for their lack of same, it is worth noting that each cohort applies a different lens to ethical shopping, with concern for environmental outcomes highest in the younger age bracket. In Australia, Millennials and Gen Y are spearheading a global demand for sustainability and are willing to sacrifice potential savings to support environmentally conscious products and companies. According to Nielsen’s 2015 Global Corporate Sustainability Report, 66 percent of consumers say they are willing to pay a premium for goods produced and sold by sustainable

SUSTAINABILITY

NATIONAL NATIONAL

brands. This tracks with an uptick in availability of sustainable goods and produce on supermarket shelves – and their sales. Sustainability branding has seen toilet paper producer, iCare, enjoy a 230% increase in sales in the year 2020, on top of chocolatier, Pana Organic’s 113% expansion and cruelty-free skincare concern, Sukin securing 88% sales boost the same year. One advantage Independents have when it comes to the sustainability movement, is a willingness to stock locally produced, fully branded lines. Where the ‘big two’ promote rows of mass-produced, homebranded goods and rapidly replace iconic Australian products with their own, independent retailers can often specialise more freely and now utilise smart technologies to the betterment of their business interests and the planet.

To this end, a new joint venture partnership between MGA TMA and ImFree gives Independents, their communities and suppliers a revolutionary platform to communicate with customers. MiPlanet has been the culmination of this strategy and represents a unique opportunity for members to be a part of a world first digital consumer platform. In the MGA Board assessment, never before has the independent membership been given the opportunity to lead innovation in the Australian retail sector. MiPlanet represents this opportunity. The technology is built on the next generation block chain, is mobile, and functions in real time. Independent grocery retailers know their value, to customers, staff, communities, and the Australian economy.To continue making sustainable everyday choices, consumers need brands to help. Thanks

to the hard work and tenacity of Chris Antonieff from Brisbane, an enthusiastic group of retailers in South East Queensland will be trial stores. MGA has an extensive group of ethical local suppliers ready to jump on board. With Independents leading the way to a sustainable future in a post pandemic world, the future for both seems more than sustainable. The MiPlanet technology platform will be trialled in SEQ independent food and grocery stores in the first quarter of 2022, after which more store owners will be invited to join. Please feel free to browse the MiPlanet website at https://miplanet.com.au/ and gather more information about this exciting technology that will connect your business with sustainability driven customers in your communities. 1,2 Source ABS

Consultation on Australia’s domestic organics regulatory framework The Department of Agriculture, Water and Environment recently engaged the services of PwC to conduct a consultation process regarding Australia’s domestic organics market. Currently PwC are collating diverse range of perspectives of the current market, in conjunction with relevant impacts regulatory and nonregulatory approaches may have on the sector. MGA as a key stakeholder within the industry, was asked to contribute to the roundtable discussions. The initial forum took place via videoconference on Wednesday 19 January 2022.

mga.asn.au | February 2022 | Edition 1

Representative attending the discussion: MGA, Mallee Organics and Wattle Organic Farms, Australian Farmers’ Markets Association, Dairy Australia Limited, Horticulture Innovation Australia Limited, AusVeg. Australian Melon Association, Grains Producers Australia Limited, Grain Growers Limited, Egg Farmers of Australia, Agrifuture Australia, Cotton Research and Development Corporation, CropLife Australia & Grains Research and Development Corporation.

Not having a nationally agreed to definition can cause confusion and this issue was discussed, as well as consumer need for a clear definition and accreditation of what classifies as ‘organic’. Four options were discussed, and MGA advocated for less red tape and no added costs for our members. The general consensus was there needs to be integrity with legislation and consistency across states, hence a federal approach would be preferred. MGA will keep members updated as the process continues.

OBITUARIES

NATIONAL VICTORIA

Vale David Efron David Efron, a stalwart of the timber industry, passed away on 25 December 2021 at Melbourne’s Cabrini Hospital surrounded by his family. David had a long and rich history in the timber industry. In the mid 1960’s, he responded to a newspaper advertisement which read “learn to be a manager.” His application was successful and there began his first role with timber, working for a local timber merchant, WK Witt, supplying plywood. David owned a number of timber businesses over the years, including Writron Timber (Cheltenham) in the late 1960’s, Lorimer Timber (Port Melbourne) in the 1970’s, before moving to Southey Street in Williamstown. This business mainly sold Philippine mahogany and radiata pine. He also had a part ownership of Otago Timber Exports (New Zealand) and a sawmill in Milton (New Zealand) during the late 1970’s and early 1980’s. David sold Lorimer Timber to Wills Timber in 1981. In 1983, David opened Ascot Timber along Mount Alexander Road in Ascot Vale. This business supplied retail and trade customers. Ascot Timber was sold, and David had a career change and moved into pubs.

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

In 1990, he returned to the timber industry when he and his son Maurice, purchased The Fencing Place in Dandenong. This business was soon re-named David’s Timber, and shortly after, they decided to specialise in treated pine. The company’s first timber treatment plant opened in Dandenong South in 1994. David’s Timber relocated to Noble Park in 1997, and traded there till 2004, where they moved again to their current premises on Princes Highway in Dandenong South. Over the years, David had ownership/ part ownership of sawmills in New Zealand, Wodonga and most recently Broadford Sawmills, for the last 11 years. David Efron was a supporter of TMA for many years and was a passionate

100% alcohol free. This publication has been printed on stock made from elemental chlorine free bleached pulp sourced from well-managed forests and controlled sources. It is manufactured by an ISO 14001 certified mill.

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committee member during the 1990’s. He was also a long-standing member of the Hoo-Hoo Club and attended a number of international conventions. During the years, David developed many close industry friends and was passionate about the timber industry until the end. On behalf of MGA TMA and our members, we acknowledge the valued contributions that David made to TMA and the industry as a whole and we extend our deepest condolences to the Efron family at this difficult time.

Members wishing to submit an obituary should email communications@mga.asn.au

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.

INDUSTRY NEWS

NATIONAL QUEENSLAND

Brothers boost IGA business more than a third in Brisbane riverfront site Two brothers are boosting their seven-year-old IGA supermarket business by more than one third as part of a major expansion plan of the Brisbane riverfront retail destination Portside Wharf. Robin and Ramsay Zeneldin are increasing the store footprint to 1036sqm, adding a brand new café, cheese bar and health food section, and expanding the meat, produce and delicatessen departments. The big sellers for the store will be convenience food, takeaway meals, and health and wellbeing products. Robin Zeneldin said “In the past seven years, we have seen significant growth in the area, while at the same time, consumers are becoming more discerning, particularly when it comes to wellness.

Introducing The Street Café to the mix will means customers can enjoy coffee and sweet and savoury bakery goods including freshly baked muffins and croissants. “It’s the missing link in our store now. People visit for rolls, sandwiches and breakfast so we’re looking forward to adding the new café to ensure we are a one-stop-shop,” he said. The new fit-out is anticipated to start in April and be completed mid-year with the store remaining open during this period. By Inside Franchise Business | 07 Feb 2022

“That’s why we’re extending the footprint of our store with a broader range of groceries than ever before across every category.” The mixed-use retail and residential Portside Wharf precinct is on a prime Brisbane River site at Hamilton, just six kilometres from the Brisbane CBD. Robin said his team took great pride in offering the best selection of groceries, including hard-to-find items in the suburb. “Our focus is on offering the range, quality and experience that will continue to make Zeneldin’s IGA the preferred supermarket in the area,” he said. “A growing number of people in the area have pets, so we’ll also be expanding our pet food section. It is about meeting the needs of customers now and into the future.” Ramsay and Robin Zeneldin outside Portside IGA

mga.asn.au | February 2022 | Edition 1

New stores and refurbishments FoodWorks Wyee NSW We commend Mel and David of Foodworks Wyee on the fantastic job they have done on their store. It looks fantastic. Mel and David had support from the NSW AUR team and their valued suppliers to deliver this wonderful store – well done to all of you for your input. Happy Apple Supermarket in Mason Street Newport VIC The team from Happy Apple Supermarket opened their newest store in the Melbourne suburb of Newport late last year. The dedicated team spent a lot of time planning the stores and it’s clearly evident. This store provides their shoppers with a fantastic shopping experience. Happy Apple are part of the AUR group and have existing stores in Ascot Vale and Seddon (both also in Melbourne). Congratulations on your latest store. Seasons IGA Cleveland store QLD On the 30th of November, Seasons IGA closed one store in Cleveland and in the same centre, less than 100 metres away, opened up their newest store! This store has been designed with the customer in mind and is exactly what the Cleveland community needs. This impeccable store would not have been possible without the support and assistance of every family member, staff member, and supplier family. Great job everybody. Daly’s IGA Koroit Vic – soft opening in December 2021 After plenty of planning, a few delays and a lot of construction, Mick and Peter Daly have opened up their brand new store in Koroit on 24 November 2021. Read the full story on p. 24.

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MGA Independent Retailer February 2022 Issue 01

Articles inside

Vale David Efron

Consultation on Australia’s domestic organics regulatory framework

Technology driven sustainability – MiPlanet

Long serving MGA National Liquor committee member steps down

ACCC advises recent pricing of rapid antigen tests could be unconscionable

Outstanding IGA supermarkets across the country recognised at the annual IGA National Awards of Excellence

NSW COVID-19 workers compensation provisions to be wound back

Queensland small business Covid recoverye

Supply Shortages lead to learnings for the future on Supply Chain Management

Dealing with excessive annual leave accrual

Mental health and wellbeing surcharge .05% in Victoria

Consultation is essential when issuing a mandatory vaccination policy

Leave options for COVID-19 related absences

Have we left ourselves in a vulnerable state?

Dalys’ new IGA store, Koroit

Family and domestic violence leave: Entitlement, obligations, and upcoming changes

Metcash boost on local retail

Workforce and skills: small business critical supply chain (Food and Grocery)

MGA pushes to ease COVID-19 restrictions causing severe worker shortages

Ombudsman welcomes funding for critical small business mental health programy

Building a store culture that values wellbeing

CEO Welcome

MGA attends Federal Small Business Policy Forum seeking solutions for members

Competition litigator Gina Cass-Gottlieb to replace Rod Sims as ACCC Chair

MGA TMA Membership of the ACCC’s Small Business and Franchising Consultative Committee 2022

MGA meets Minister for Small Business Stuart Robert

ACCC appeals $1million penalty in Employsure Google ads case