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February Edition 1 2016
The “Making Life Easier” Issue National Support Office • 1800 888 479 • www.mga.asn.au
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Corporate Partner Advertising
February 2016 - Edition 1
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Our Mission The mission of MGA Independent Retailers is to deliver the best possible industry specific business support services to independent grocery, liquor and associate store members.
MGA National Support Office Suite 5, 1 Milton Parade, Malvern, Victoria, 3144 P: 03 9824 4111 • F: 03 9824 4022 admin@mga.asn.au www.mga.asn.au Freecall: 1800 888 479
Retailer Directors Rodney Allen (President) – Victoria Andrew Bray – New South Wales Michael Daly – Victoria Gino Divitini – Western Australia Grant Hinchcliffe – Tasmania Steve Miller – Victoria Chris dos Santos – South Australia Debbie Smith – Queensland
Chief Executive Officer Jos de Bruin 03 9824 4111 jos.debruin@mga.asn.au
Corporate Partnership & Media Sales Steve Sellars 0407 399 240 steve.sellars@mga.asn.au
Contents 5 CEO Welcome
Industry News 6 7 9 9 9 11 12 12 13
Competition Law Reform – section 46 ACCC right to support stronger rules against misuse of market power Paying the penalty for Sunday penalty rates Queensland Government considering tobacco licensing ABS growth figures New rules for embedded networks SPAR Australia celebrates as successful 21st year draws to A close SPAR launches new store at Jandowae New store openings
Liquor News 15 15 17 17 18 18 21
IGA supermarket liquor licence suspended for 14 days Compliance audits of licensed venues MGA Liquor industry update and Christmas function Winemakers slam wine tax ‘study’ Coogee residents applaud decision to refuse Dan Murphy application Acceptable forms of identification Casella Family Brands
Legal and HR 22 22 23 23 23
When is an employee’s termination a termination? 2015-16 Annual Wage Review – We need your help Paying employees cash Swearing at a supervisor – grounds for dismissal Part time employment under the General Retail Industry Award
Training 24 24 24 25 26
Training snippets Don’t get caught out with your ACT RSA renewals Young worker electrocuted on roof of supermarket in Melbourne Food labelling – Fair trading laws National Online Training Courses
Editorial and Production production@independentretailer.net.au
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December 2015 - Edition 8
CEO Report
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CEO Welcome Many members from around Australia report that sales for the 2015 festive season trading period were robust and strong compared with last year and hopefully that’s a sign of good things to come in 2016. Despite increased competition and strong marketing campaigns from larger players in the Australian supermarket and liquor industries, it was pleasing to see consumers drawn to our members stores to satisfy their food and beverage needs. The stores that I visited around the country were clean, well merchandised and compliant with Christmas promotional programs, not to mention the huge amount of instore activity to tantalise impulse sales. Congratulations to all our members who took the risk to invest heavily into store refurbishments and improvements in 2015. Our consumers take great delight in seeing their local business reinvest back into their businesses so they can enhance their own shopping experience. This gives us our edge over the opposition by leveraging our strengths – personalised service (we know our customers) in a modern and conveniently located shopping environment.
In late 2015, MGA undertook a number of internal workshops to ensure our vision was aligned with member’s needs. MGA’s team has identified that its higher purpose is to “Make Life Easier” for members. With all the day to day business and customer complexities our members have to deal with, MGA will endeavour to make the life of our members easier. Whether it be addressing workplace relations and employment law issues, providing online training solutions or representing members at a state and federal government level to reduce red tape, alleviate cost burdens and remove business blockers – MGA is there to “Make Life Easier” for members. 2016 is now well under way, with many members now locking plans away for the Easter trading period. Whilst all this essential retail activity is taking place, MGA’s team is enthusiastically working behind the scenes to support and address the needs of our members. MGA’s focus in 2016 will be to strongly advocate for competition law reform by endorsing the Harper Competition Policy Review Panel to amend and strengthen section 46 of CCA. The reduction of Sunday Penalty rates is also a major 2016 project. By reducing
Sunday Penalty rates from 100% (double time) to 50% (time and a half) there is a saving of $9.50 per hour. Amortised over 12 months, across all our members and the staff they employ every Sunday, this would save $145m per annum. These savings will help to employ many more people in our industry and give our members – some much needed time off. On a state level, MGA’s team will continue to advocate for Packaged Liquor Licenses for supermarkets in both QLD and SA, oppose any additional regulations and imposts to do business pertaining to tobacco and liquor, oppose any further deregulation of trading hours in QLD, SA and WA, seek to open the discussion to reduce payroll tax simplify and reduce the cost of doing business for our members is a good result! On behalf of MGA’s Board of Directors, MGA’s Liquor Committee and MGA’s staff, we wish you a successful 2016 trading year ahead and commit to helping to “Make Life Easier” for our members. Until next edition good trading. Jos de Bruin CEO – MGA Independent Retailers
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Industry News
Industry News Competition Law Reform – section 46 Harpers recommendation is in the public interest
Hon Kelly O’Dwyer MP
The battle to support Professor Ian Harper and the Harper Competition Policy Review Panel recommendation to reform section 46 of the Competition and Consumer Act to be fit for purpose continues on into 2016.
process is a stalling tactic that has been driven by the likes of BCA and other large organisations who prefer no change to section 46. I would like to offer that our position at this stage is not to compromise and to support the Harper Recommendation as is in full – option F. MGA will respond to this consultation document and will give reason as to why and why not, we wish to have certain wording included and excluded.
As most would know the former Minister for Small Business and Competition Matters, Hon Bruce Billson MP has now been replaced. Some would suggest that Bruce’s replacement was politically motivated at a cabinet level and driven by big business including the powerful Business Council of Australia (BCA).
This response submission is due for lodgement to Treasury on the 12th of February.
We now have a new Minister. The new Federal Minister for Small Business and Minister Assisting the Treasurer, Hon Kelly O’Dwyer MP, has initiated a new round of consultation concerning one of the Harper Review recommendations. After almost two years of extensive and intensive consultation on this matter and at huge public expense, we now have to take up more of our members limited resource, to participate in advocating for The Harper Panel recommendation to strengthen section 46 of the CCA.
There will also be two roundtable forums hosted and facilitated by Minister Kelly O’Dwyer. One in Melbourne on the of 27th January and one in Tamworth, NSW on the of 29th January. Both roundtable meetings are forums to discuss and consult upon the Harper Competition Policy review panels’ proposed recommendation to strengthen section 46 (misuse of market power) of the Competition and Consumer Act, namely and specifically; • remove the ‘take advantage’ test; • move from a ‘purpose’ to ‘purpose, effect or likely effect’ test; • move from a focus on ‘damage to a competitor’ to a focus on the competitive process (‘substantially lessening competition’); • introduce mandatory factors
Consultation that includes responding to a discussion document generated by Treasury to seek MGA’s and other parties views on the Harper Review recommendation reword section 46 and two roundtable meetings, comprising various big and small business organisations and a plethora of costly legal advisors. The Consultation Paper initiated by Treasury asks MGA to explore options and to assess, analyse and give comment to a series of options (from A to F), that may be an alternative or a compromise if you like, to the Harper Panels’ recommendation to strengthen section 46. Both Treasurer Scott Morrison and Minister Assisting the Treasurer, Kelly O’Dwyer, initiated this document to gain further insights and points of view from all interested parties – big and small Business organisations, agricultural, manufacturing, telecommunications sectors etc. I think we can all assume that this further onerous consultative
February 2016 - Edition 1
MGA will robustly participate in the discussions at both forums but we will not state our position. MGA will use this forum opportunity purely as an exploratory exercise from which to regroup and understand what our next steps should be. It should be noted that whilst MGA believes that we should not compromise on the current Harper recommendation as it is, as we believe this is already a compromise on a compromise, we do understand that we must have a fall-back position – doing nothing at all is not an option! The Minister has acknowledged that this type of consultation has not been done before but it is an opportunity for all parties, for and against the Harper recommendation, to be around a table all at once, so that each party can hear each other’s viewpoints, understand them and somehow reach an outcome. No separate closed door meetings, as in the past! MGA will keep members informed of all progress concerning this very important matter.
Industry News
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ACCC right to support stronger rules against misuse of market power The ACCC's call for stronger protections for consumers against businesses misusing their market power is the right move, the Australian Chamber of Commerce and Industry said today. Australian Chamber of Commerce and Industry CEO, Kate Carnell, AO, said: “All businesses naturally want to overcome their competitors but they need to compete on merit, by offering better products or operating more efficiently - not by abusing their market power.” “As the Harper Review recommended, protections against misuse of market power should focus on whether the conduct has the effect of reducing competition. As it stands, the existing purpose-based test is just not working.
Harper Review explaining why the US had moved from an intent test to an effect test. “Many consumer groups and a broad coalition of business interests support the reform with recent polls indicating the test has majority support within the electorate. “Fixing section 46 isn’t about big versus small businesses. “It is about protecting consumers by ensuring all businesses are allowed to compete on a level playing field.” ACCI Media Release – 12 January 2016
“Claims that an effects test will result in higher prices for milk and bread or put at risk innovative technologies such as the iPhone are simply scaremongering. “An effects test already applies in most international jurisdictions and other areas of Australian law. “It is interesting to note the US Fair Trade Commission wrote to the
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February 2016 - Edition 1
Industry News
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Paying the penalty for Sunday penalty rates It’s time we woke up to the fact that Sunday penalty rates are an outdated drawback to productivity. It’s time to come into the 21st century and accept that working in a shop on a Sunday should not attract a higher rate of pay than for doing the same work on a Saturday. A double time penalty rate for Sunday work may have been acceptable compensation for working on the seventh day of the week a hundred years ago, when Sunday penalties all started, but today it is an unrealistic expectation, if we are to increase employment and forge ahead as a productive society. Jos de Bruin from MGA Independent Retailers said, “Unless Sunday penalty rates are reduced to a more sustainable level smaller retailers won’t open their stores or their family members or they will work themselves because they simply can’t afford to pay double time. Until approximately five years ago only 50% Sunday penalties applied in Queensland, NSW and South Australia but, Victoria already had 100% penalty on Sunday and when the uniform modern retail award was introduced that penalty was applied to all states because it was more appealing to go higher than lower. There is nothing special about working on Sunday in other countries. In the UK or the USA you do not get mandatory double time rates for working on Sunday. So why does Australia continue to lag behind and retain an outmoded concept?” Mr. de Bruin continued, “We are not even suggesting the demise of Sunday penalties completely. Conservative estimates suggest that if the Sunday adult rate was reduced from $37.97 to $28.48, being a 50% reduction of $9.49 per hour, it would save independent retailers an estimated $147m annually. The figures speak for themselves in terms of potential economic growth and prosperity. Isn’t it time we made the change, let’s move forward and increase our work force and our productivity in best interests of all Australians?”
Queensland Government considering tobacco licensing The Department of Health in Queensland has called for submissions on the subject of licensing tobacco outlets in Queensland. MGA has made a submission and has pointed out that the licensing of venues that sell tobacco products will only place a burden on retailers, it will not reduce tobacco smoking and it will not be a significant revenue raiser. You can read our full submission to the Queensland Government on our website.
ABS growth figures The ABS reported growth of 4.1 per cent, in trend terms, for the month of November 2015 compared with the previous year’s result. The Bureau found that consumer spending grew by 0.4 per cent compared with the previous month, in both trend and seasonally adjusted terms. Turnover rose across all major categories, including department stores (0.6%), household goods (0.6%), food retailing (0.3%), cafes, restaurants and takeaways (0.2%), and clothing, footwear and personal accessories (0.2%). Victoria was the strongest performing state, with monthly growth of 0.6 per cent, followed by Tasmania (0.5%), New South Wales (0.4%), South Australia (0.3%), and Queensland, the Northern Territory and the Australian Capital Territory (all 0.2%). When the December figures are released in a month’s time, we are expecting to see growth approaching six per cent. This means that 2015 will be easily the strongest year since the 7.9 per cent growth recorded in 2007. This is largely due to stronger consumer confidence, strong property values, low interest rates and a more encouraging political and economic environment as 2015 transpired. These kinds of figures can be qualified by acknowledging that economic growth is never uniform – it can vary from state to state and among retail sub-sectors. However, overall strong growth in spending is always good news, and in this case it’s a trend we hope will continue throughout 2016. As the frantic pace that marks the start of a new calendar year for many retailers begins to abate, you will no doubt turn your thoughts to the year ahead, and to planning for the ongoing operation and growth of your business. As you work through your planning processes for the year, remeber of the importance of investing in your people – both at the customer service level and also in management.
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Corporate Partner Advertising
February 2016 - Edition 1
Industry News
New rules for embedded networks Publication of final rule determination and final rule The AEMC has made a final rule that will reduce the barriers to embedded network customers accessing offers from electricity retailers. It follows a rule change request proposed by the Australian Energy Market Operator (AEMO) stemming from recommendations in the AEMC's Power of Choice review. What are embedded networks? Embedded networks are private electricity networks which serve multiple premises and are located within, and connected to, a distribution or transmission system through a parent connection point in the National Electricity Market. Common examples of embedded networks include shopping centres, retirement villages, caravan parks, apartment blocks and office buildings. Within an embedded network, the embedded network operator (for example, a shopping centre owner) provides embedded network customers with network services. Many embedded network operators also sell electricity to embedded network customers (for example, a business leasing space in a shopping centre). The final rule determination makes it easier for embedded network customers to choose an alternative electricity supplier, while remaining part of the embedded network. Why is access to the competitive retail market important? Allowing embedded network customers access to the competitive retail market is likely to allow embedded network customers to: • Choose the price and price structure of their electricity service that suits them best, which may result in lower bills; • Choose from a wider variety of products and services; and • Gain easier access to government schemes and consumer protections. This rule change does not prevent embedded network operators from continuing to sell embedded network customers electricity. Instead, it will provide them with a greater incentive to compete with retailers. Why do the current rules need to be changed? The current regulatory arrangements for embedded networks are unclear and result in barriers to embedded network customers purchasing electricity from retailers in the competitive retail market. Notably: • The National Electricity Rules do not allocate responsibility for performing the market interface functions required to link embedded network customers to retailers in the National Electricity Market systems (for example, assigning customer a National Metering Identifier) to a specific party;
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• Jurisdictional regulations which govern embedded network customer access to retail market offers are inconsistent and some prevent embedded network customers accessing retail market offers; • The National Energy Retail Rules do not provide clear obligations and relationships between authorised retailers, embedded network operators and embedded network customers. How does the final rule address these problems? The changes to the National Electricity Rules set out in the final rule will create a new accredited provider role – embedded network manager – to perform the market interface functions that link embedded network customers to the National Electricity Market systems. The changes to the National Electricity Rules will also trigger changes in the relevant AEMO procedures and the Australian Energy Regulator's (AER) network exemption guideline. Together, these amendments will: • Set out the detailed functions, responsibilities, and governance arrangements for embedded network managers; and • Specify which embedded network operators are required to appoint an embedded network manager. The Commission has also recommended separate but supporting changes to state and territory legislation, the AER's network exemption guideline and a review to the National Energy Retail Rules for embedded network customers. These recommendations have been made with the aim of a further decrease in barriers to embedded network customers accessing retail market offers. Power of Choice This rule change is part of a reform program identified by the 2012 AEMC Power of Choice Review. This review set out a market-wide reform program to give electricity consumers more opportunities to understand and take control their electricity use and costs. The final rule directly contributes to this priority by reducing the barriers to embedded network customers choosing the products, services and provider of retail services that suit them best. Implementation The final rule specifies that the new version of the National Electricity Rules would start on 1 December 2017. The final rule also specifies timeframes for AEMO and the AER to undertake changes to their procedures and guidelines prior to commencement of the new rule. The final rule for embedded networks will take effect in Victoria, NSW and South Australia. Their application in Queensland, Tasmania and the ACT is dependent upon those governments making relevant legal changes to recognise the metering and other arrangements regarding embedded networks.
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Industry News
SPAR Australia celebrates as successful SPAR launches new store at Jandowae 21st year draws to a close SPAR Jandowae opened with a bang on Saturday 5th December with 2015 has marked a milestone in SPAR Australia’s history. SPAR Australia opened the doors to its first store in 1994, and now facilitates the operations of 157 SPAR, SPAR Express and 5 STAR branded stores, in addition to supporting many unbannered stores throughout Queensland, New South Wales, the Australian Capital Territory and the Northern Territory. 2015 commenced with a visit from the Managing Director of SPAR International, Dr Gordon Campbell. Dr Campbell’s visit saw him present at various conferences, attend a SPAR Regional Meeting, officially re-launch SPAR Maclean and present SPAR Australia’s Managing Director, Lou Jardin, with a certificate commemorating the original licence to operate SPAR in Australia that was granted on 8th June 1994.
plenty of fun in the sun. Customers were welcomed to inspect the store and join the SPAR Jandowae team for a Lions Club sausage sizzle, face painting, and the official ribbon cutting ceremony, complete with cake.
This great new store offers fresh produce, straight from the markets and local farmers, plus a strong deli offering with sharp prices across all of its fresh departments. In addition to this, customers can find all of their grocery, dairy, frozen and general supermarket needs. Store owner Nick Holman, along with his wife and two children, plan to bring their passion for retail to the local Jandowae community.
Using the theme Simply Retail, SPAR Australia held three fantastic rounds of regional meetings throughout 2015 in locations such as Brisbane, Cairns, Canberra, Coffs Harbour, Dubbo, Emerald, Sydney and Toowoomba. A superb Supplier Awards Dinner recognised the support of key suppliers and the most successful trade show in SPAR Australia’s history was held on the Gold Coast in August. Nick Holman and family
SPAR Australia has proven that their business values of maintaining regular contact with retailers and supporting them through promotions as well as store investment programs. SPAR Australia is pleased to have assisted many retailers to continue on their path of profitability and growth throughout 2015. In a challenging year for Independents, SPAR has achieved positive growth in the majority of stores. It has now been five years since Lou Jardin became Managing Director of SPAR Australia in December 2010. At that time, Lou vowed to continue to provide competition at the wholesale level, ensuring independent retailers are able to source deals that allow them to compete in the market and ensure the survival of family businesses in the grocery industry. Five years on, this philosophy is still key to SPAR’s work. Opening or converting eleven new stores in the six weeks leading up to Christmas proves just how successful this mantra has been.
Dr Gordon Campbell and Lou Jardin
February 2016 - Edition 1
Industry News
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New store openings IGA Runcorn
IGA Yeppoon
IGA Romeo’s Food Hall
Owner: John Huang 10/258 Warringal Road, Runcorn QLD 4113
Owner: Francis Peries 18 James St, Yeppoon QLD 4703
Owner: Joseph Romeo 19-29 Martin Place, Sydney NSW 2000
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Industry News
February 2016 - Edition 1
Industry News - Liquor
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Liquor News IGA supermarket liquor licence suspended for 14 days
Compliance audits of licensed venues The Office of Liquor, Gaming & Racing (OLGR) is conducting compliance checks of Parramatta and Manly licensed venues this week to ensure they are complying with licence conditions and the State’s liquor and gaming laws.
A southern Sydney supermarket has become the fifth NSW venue to have its liquor licence suspended for illegally selling alcohol to a person under the age of 18. The liquor licence of IGA Yarrawarrah near Engadine had been suspended for 14 days after selling a 17-year-old a 10 pack of bourbon and cola without checking his age identification. About 5.30pm on 12 June 2015, police observed the 17-year-old enter the store and purchase the alcohol before leaving and meeting a 16-year-old youth. When questioned, the 17-year-old said he had purchased alcohol from the store on a number of occasions without being asked for age identification. Police also reported a secondary supply incident detected at the store on a later date involving an adult purchasing alcohol and supplying it to a minor under the age of 18. Under laws introduced by the NSW Government last December, licensees can have their liquor licences suspended for up to 28 days for convictions of selling alcohol to minors. The Royal Hotel in Temora was the first venue to face a suspension under the escalated sanctions scheme in June; followed by the Liquor Stax bottle shop at Terrigal in August; the Liquorland bottle shop at the Eastgate Shopping Centre in Bondi Junction in October; and the Palbok House restaurant at Lidcombe in November. OLGR suspended the liquor licence of IGA Yarrawarrah for a fortnight from Thursday 17 December until 30 December 2015. The venue also faced a $1,100 fine and incurred a strike under the Three Strikes disciplinary scheme.
OLGR Director of Compliance and Enforcement Anthony Keon said it was part of ongoing audits being conducted throughout the summer period focusing on venue management and operating procedures. “The Office of Liquor, Gaming & Racing (OLGR) as well as NSW Police conduct targeted inspections of licensed venues across the state to ensure they are operating responsibly and in line with community expectations,” Mr Keon said. “This includes ensuring proper management and operating procedures are in place to support responsible service of alcohol and prevent intoxication of patrons, as well as other potential harms. This is particularly important with the busy summer season including the lead-up to Australia Day.” Mr Keon said the Audit Program is focusing on both engagement and education to ensure compliance and heightened awareness of licence conditions and liquor and gaming laws, as well as unannounced inspections aimed to test venue compliance during risk trading periods. Inspectors will be particularly focusing on:
“The escalated sanctions scheme sends a strong message to industry about the importance of complying with underage drinking laws and that the unlawful supply of alcohol to minors under 18 can have significant commercial consequences,” OLGR Director of Compliance and Enforcement Anthony Keon said.
• Practices to prevent intoxication
“Licensees and staff need to be alive to the dangers of selling alcohol to minors particularly this time of year when many under 18s are celebrating the end of high school and exam results or just see it as a time to party. Licensees need to be vigilant and ensure they have practices in place, including stringent ID checks of young people, to prevent underage offences occurring on their premises.”
• Responsible Service of Alcohol (RSA) accreditation.
• Undesirable liquor promotions and activities • Sale of liquor to minors (both take away sales and on premises)
“These audits will ensure venues have suitable controls in place to ensure responsible trading and compliance, and will assist in the identification and targeting of any high risk activities that can contribute to alcohol-related harm, including violence,” Mr Keon said.
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February 2016 - Edition 1
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Industry News - Liquor
MGA Liquor industry update and Christmas function On the 8th December MGA Liquor Committee once again hosted its annual industry update function which was hosted by Lion at the Lion Taproom Malvern. The event was well attended by liquor retailers, corporate partners, suppliers and industry stakeholders and gave all attendees the opportunity to engage and discuss issues affecting our industry in a relaxed and informal environment. MGA Liquor President George Kovits updated the audience on the back of house support services that the MGA as a national industry employer organisation provides its members, such as Legal & HR, training and compliance and also the large amount of advocacy work that is addressed on their behalf with government and statutory bodies at state and national levels. He advised that during 2015 the MGA Support Office fielded over 9,300 member’s calls and performed over 6,800 hours of work assisting member with their inquiries and workplace issues. In closing, George reiterated the value of the independent liquor sector to consumers and the relevant and important role they play in the market place with suppliers. Special guests and speakers included Catherine Myers, CEO Victorian Commission of Gaming and Liquor Regulations, who outlined the work that the VCGLR do in the administration and regulation of the 21,573 current Liquor Licenses in Victoria, and Mark Powell, Manager Public Policy, Phillip Morris International, who presented on current tobacco issues and the future of tobacco sales in Australia. A full copy of both presentations are available on the MGA website.
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Winemakers slam wine tax ‘study’ The Winemakers’ Federation of Australia has slammed a Monash University study into the impact of increasing wine taxation on atrisk consumers. “The study is poor in its method and its outcomes are not credible,” Federation Chief Executive Paul Evans said. “The study calls for a minimum floor price on alcohol – a notion already discredited by the former Australian National Preventative Health Agency – or an increase in wine taxes and it claims these will reduce consumption by at-risk or heavy drinkers,” he said. “But the study has two critical failings. 1. “Cross price elasticities of demand between alcohol categories (eg beer, wine, spirits) are not included in its modelling of what happens when taxes are raised. The report therefore has very little credibility in predicting what the subsequent consumption behaviour will be. For example, if you increase the price of lower-cost wine, how much will budget beer sales increase? The report cannot answer this. 2. “The study also assumes a 100% seamless pass-on of any increase in wine tax to the consumer. This is a nonsense assumption. Given the retail liquor duopoly that exists in Australia, it’s more likely any increases in wine tax will have to be absorbed by the wine producer who is already doing it tough. “Unfortunately the report has been used by the public health lobby to whip up media stories demanding an increase in wine taxes based on deeply flawed and narrow thinking. “The claims by the public health lobby ignores the fact that ABS data confirms Australia is moving towards a more moderate drinking culture and Australians are no longer among the world’s heaviest consumers. We are making important headway. “A tax increase on wine is only going to punish the vast majority of responsible wine consumers and hurt winemakers. The impact on heavy drinkers will be negligible because they will simply move their poor consumption behaviors on to alternate alcohol types or to illicit drugs.
Catherine Myers – CEO VCGLR
Mark Powell – Philip Morris
“The Australian wine industry is already among the highest taxed in the world today. The case for increasing wine taxes has not been made by either this Monash study or demands from Cancer Council Victoria. “The Winemakers’ Federation of Australia will continue to strongly advocate for differential tax rates for wine, beer and spirits which reflects the significant differences that exist between the wine other alcohol sectors.
Matt Windsor – Lion
George Kovits – MGA Liquor
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Industry News - Liquor
Coogee residents applaud decision by council to refuse Dan Murphy application An application by Dan Murphy to turn the former 1200sqm Randwick Rugby Club site in Brooke Street Coogee into a liquor store and café has been rejected by the Randwick City Council. Eastern beaches publication, The Beast, reported Councillor Murray Matson was unequivocal that another bottle shop wasn’t wanted in Coogee.
Acceptable forms of identification Summer is a time when we enjoy catching up with friends for a drink and venues become busier. Licensees and their staff need to be particularly vigilant when checking identification (ID). Here are some important points about acceptable forms of ID.
What is acceptable evidence of age?
Acceptable evidence of age documents under the Liquor Control Reform Act 1998 are: • Australian driver licence • Victorian learner permit
“We don’t need another one,” he said. “The Dan Murphy’s would be surrounded by residential property. The only way it is going to get through is if they can find some way of declaring it to be a shop. That’s the only way they can get approval for it.”
• Proof of age card or an equivalent from another state or territory of Australia • Keypass card
Mr Matson said he was baffled by the suggestion the liquor store could be considered a shop for zoning purposes. “It beats me,” he said. “But the zoning permits shops in that particular area; therefore they are trying to classify their proposal as a shop that sells liquor or a bottle shop in effect. “It would have an impact on the surrounding residential area, and the residents are up in arms about it. They are familiar with the effect Randwick Rugby Club has had for many years. It’s not looked on favourably and it’s not a desired outcome on that site for the community.” A spokesperson for Dan Murphy’s said the company “is disappointed by Randwick Council’s decision and will be appealing it in the Land and Environment Court”. Amanda Moore, a local resident and key community advocate against the proposal, said the community was “totally thrilled”. “We want to make a big banner saying ‘Thank you Randwick Council’ for listening,” she said. “It’s really tricky with this whole thing because I don’t know how Council will go in the Land and Environment Court. “It’s a pretty tough battlefield historically for most councils, so you feel hopeful that at least our council is listening to the ratepayers as locals. I don’t know what the answer is from here on in. Hopefully big business might listen to what the community wants as well.” Foot Note: There are 27 existing Licenses that sell packaged liquor in the Coogee, Randwick, Maroubra area.
February 2016 - Edition 1
• Australian or foreign passport. What if the ID is fake? There are offences for faking and misusing IDs. If you doubt that the ID presented is authentic but are not sure, ask for a second form of identification to help determine whether the ID is fake or does not belong to the person presenting it. Then if you determine that one or both of the presented IDs are fake, that ID (except for a driver licence) should be confiscated and handed over to the police. Can I get penalised for allowing a minor using a fake ID on the premises? What happens if I supplied the same minor alcohol? While it is an offence to permit underage persons on licensed premises (other than as permitted under section 120(1) of the Liquor Control Reform Act 1998), there is a defence under this section if the licensee or staff member was shown an evidence of age document, indicating that the minor is of or over the age of 18 years. Similarly, it is a defence to supplying liquor to a minor who is not having a meal with his/her parent, guardian or spouse (of or over 18 years of age) if the licensee or staff member was shown an evidence of age document, indicating that the minor is of or over the age of 18 years. Should you require further clarification on your obligations contact the MGA Support Services on 1800 888 479.
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www.mga.asn.au
D
December 2015 - Edition 8
Industry News
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John Casella – Managing Directyor
Casella Family Brands When founders Filippo and Maria Casella immigrated to Australia in 1957, they started with a dream to build a winery where their family could work and prosper together. They never could have anticipated that from such humble beginnings, Casella Family Brands would become the success it is today. With a family history of winemaking dating back to 1820, Filippo recognised the great potential of the Riverina region in New South Wales. In 1965, he bought land near the township of Yenda outside of Griffith in New South Wales and grew grapes for local winemakers. Grape growing became wine making and wine making needed a winery; in 1969 the Casella family winery was born. John Casella, one of Filippo’s sons, joined the family business and became Managing Director of Casella Family Brands in 1994. John’s vision has always been to produce great quality Australian wine for the world. Many people were intimidated by the mature, stuffy wine industry and avoided wine because they didn’t want to learn about vintages, varietals and regions. The key to differentiation was to make a fun and non-traditional wine that’s easy to drink for everyone. In 2001 he created [yellow tail] and selected the iconic yellow-footed rock-wallaby for the label. Since its inception in 2001, the brand has grown to be the Most Powerful Australian Wine Brand in the World and fifth Most Powerful Wine Brand globally*. Casella Family Brands exports over 12 and a half million cases of [yellow tail] to more than 50 countries around the world every year and more than two and a half million glasses of [yellow tail] are enjoyed around the world each day. The purchase of Peter Lehmann Wines in November 2014 for $57 million, Brand’s Laira Coonawarra from McWilliam’s Wine Group Ltd in 2015 and the recent purchase of Howcroft Estate Vineyards, located in the northern part of the Limestone Coast region, demonstrate the company’s commitment to producing a portfolio of premium South Australian wines.
www.mga.asn.au
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Legal and HR
Legal and HR When is an employee’s termination a termination? MGA often receives calls from Members faced with an alarming yet confusing unfair dismissal application from a departing employee. The confusion arises when the Member is adamant that the employee was not dismissed and often believes that the employee continues to be employed by the store.
However, upon learning there would be a significant reduction in salary accompanying the new role, the employee regarded herself as having been dismissed. The FWC agreed the employer’s actions constituted an unfair dismissal (such action by the employer may also give rise to a discrimination claim).
The nature of the unfair dismissal process means that employers often overlook several technicalities when dismissing an employee or what conduct by an employer may constitute a dismissal even when it is unintentional.
The additional consideration that employers often overlook is whether the employee has no real choice but to resign as indicated in point ‘B’ above. This is often referred to as a ‘constructive dismissal’ or ‘forced resignation’.
The Fair Work Act defines ‘dismissed’ as a situation where:
In a forced resignation, the onus is on the employee to prove that they did not resign voluntarily and that their employer took action with the intent to terminate the employee OR that has that probable result. The concept of ‘no real choice but to resign’ requires significant analysis and is often disputed between parties.
• a person’s employment has been terminated at the employer’s initiative, or • a person was forced to resign because of the conduct or course of conduct engaged in by the employer. However, the Act states a dismissal does NOT include where: • a person is demoted in his/her employment without a significant reduction in duties or remuneration and remains employed by the employer, • a person was employed under a contract for a specified period of time or to complete a specific role that that contract period comes to an end, or • a person had a training arrangement with their employer which specified a limited duration and the employment ends at the end of that period. Point ‘C’ above regularly creates confusion with both employees and employers. Simply put, if an employee’s demotion involves a significant reduction in duties or remuneration, it may constitute a ‘dismissal’, even if the employee remains employed by the employer. This is a particularly difficult area of the dismissal process to navigate. If the demoted employee remains in employment after accepting the new role they would be under a new contract of employment. However, a demoted employee may remain employed in the demoted position without agreeing to the demotion and later decide that they have effectively been terminated. For example in a recent case before the Fair Work Commission an employer proposed changes to an employee’s role to accommodate the employee’s pregnancy. Initially the employer and employee agreed on the less difficult role as the employee was pregnant.
February 2016 - Edition 1
Evidently the termination process can be a difficult procedure to navigate. MGA encourages all members to call MGA prior to terminating an employee, demoting an employee or undertaking serious disciplinary action. MGA Legal and HR provides immediate over the phone advice to mitigate risk for your business and ensure the smooth management of your employees.
2015-16 Annual Wage Review – We need your help The Fair Work Commission has invited interested parties to make submissions in relation to possible wage increases in 2016. We anticipate minimum wage levels will increase on 1 July 2016. The extent of the increase is of great concern to MGA members and the strength of our submission rests heavily on member input. MGA’s survey for Members to complete – Fair Work Commission Annual Wage Review 2015-16 Survey – is available online via the MGA website. The survey contains a series of simple questions regarding the structure of your business, the effect of the 2015 wage increase, and consequences of a further increase on the performance of your business. We urge your participation and would value your contribution.
Legal and HR
Paying employees cash There is a difference between paying employees cash and paying them “cash in hand”. Net wages which are processed through the payroll system and are appropriately taxed, may be paid to the employee in cash if the employee wishes, and the employer agrees. Paying an employee “cash in hand” is illegal. “Cash in hand” work is payment for work, which is not processed through the payroll system. The employee is given cash for hours worked, but it is not taxed and no superannuation is paid. Employees who are paid “cash in hand” are still considered to be employees, however they are not on the business records. Employees may sometimes request to be paid “cash in hand”, because it is not taxed, or they might want to avoid declaring income to Centrelink, or avoid detection for breaching visa restrictions on how many hours they can work. By paying an employee “cash in hand” an employer is not complying with a number of legal obligations, including the obligation to pay taxation on behalf of the employee. Tax avoidance is an extremely serious offence and large financial penalties can be imposed. Serious cases can lead to imprisonment. Additional heavy fines may be imposed on an employer for non payment of WorkCover premiums, if an unrecorded employee is injured at work. Employers who are approached by staff who wish to be paid “cash in hand” should refuse the request and explain that it places both the employer and employee in breach of the law.
Swearing at a supervisor – grounds for dismissal The Fair Work Commission (FWC) recently decided that swearing at a supervisor in an aggressive manner was sufficient grounds for termination of his employment. Even though swearing was common in the particular place of work the FWC found it unacceptable on this occasion. Generally where “swearing is accepted” the FWC sees it as “part of the work culture”. However, in this particular case the swearing was aggressive and was regarded as more than just being used in conversation. In this case, after an employee injured himself at work he turned on his supervisor and subjected him to an outburst of foul language, which according to the Commissioner went beyond just complaining. The employee had received previous warnings for his behaviour and in this incident he was hostile and in the abuse he used many expletives. Even though he later made an apology to the supervisor the Commissioner said that his behaviour was inexcusable and that no one should be subjected to such conduct at work. The dismissal was found to be justified.
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Part time employment under the General Retail Industry Award When employing a new part-time employee under the General Retail Industry Award (GRA), it is a legal requirement for an employer to have a written agreement with the incoming employee. The GRA states that a part-time employee must work less than 38 hours with a minimum of 3 hours a week. The agreement must include specific terms that show: • The hours worked each day • The working days of the week • Start and finish times • State that the minimum engagement on any day is 3 hours • Times and lengths of meal breaks • If there is to be variation to the agreement it will be in writing. Both the employer and employee should keep a copy of the agreement. Any work completed outside of the hours specified in the agreement will be overtime and must be paid accordingly. However, the employer can change the employee’s roster and must provide 7 days’ notice to the employee, with 7 additional days if there is a dispute. The roster can always be changed by mutual agreement. Once an agreement has been reached with a part- time employee on the permanent number of hours to be worked by the employee, the employer is not able to increase or decrease that number of hours unless there is new agreement with the employee. It is possible to change the agreed number of hours to be worked under the contract, provided that there is proper consultation between the employer and employee and the hours are either increased or decreased by agreement. However, it is important that both parties have a clear understanding on all the terms of the agreement, particularly in relation to the hours to be worked. When employing a new staff member you should have them sign all existing store policies. A full time employee can only be transferred to a part time role if the employee agrees in writing. Please contact MGA legal and HR if you have any employee related concerns.
www.mga.asn.au
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Training
Training Training snippets Natalie Kean – Brighton IGA (TAS)
Young worker electrocuted on roof of supermarket in Melbourne
It is great to have Natalie complete her course in Certificate III in Retail Operations. It may have been a long time coming but Natalie put in a fantastic effort towards the end to successfully finish her course. Brighton is a suburb 27 km north of Hobart, in Tasmania, catering for the locals in the area and the surrounding suburbs like Pontville. The store provides such services as general groceries, fresh food departments, newsagency and the sale of petrol.
A 24-year-old electrician has been electrocuted while working on the roof of a supermarket in Melbourne's north. A WorkSafe spokeswoman said "It's a brutal and sad reminder of the importance of workplace safety, currently we're doing our investigations into the fatality of a young man and our thoughts are with the family at this stage," she said. Worksafe and Energy Safe Victoria will being investigating the accident.
Completing the course has meant Natalie has become even more of an asset to the running of the store. The knowledge and the skills that she has learnt were specific to a retail store such as the one where Natalie is employed.
Contractor Management
Don’t get caught out with your ACT RSA renewals
It is important for businesses to understand that workplaces have the same duty of care towards contractors as they do for their employees. To ensure that contractors you engage work safely and do not introduce any unmanaged risks when completing the work; plans should be in place to manage their activities.
Online ACT Responsible Service of Alcohol Refresher course Enrol now for $30 In Canberra RSA training is mandatory and to meet the requirements of the legislation needs to be refreshed every three (3) years. MGA has developed an online RSA Refresher Course for people who have already completed an ACT approved Responsible Service of Alcohol course within the last 3 years. This course is one of only a few specifically developed ‘refresher courses’ and should enable you to be able to complete the course in 60 -90 minutes. The refresher course has been offered at a lower cost to you and you will be required to provide evidence of your valid RSA certificate from an approved provider in the ACT before receiving your certificate. If you cannot provide evidence of the original RSA certificate and it was issued by Master Grocers Australia then we can supply a copy of that original certificate but this will incur a fee. You will also need to submit a completed Statutory Declaration declaring that you are the person that completed the course, along with acceptable photographic evidence of your identity as you did for your original RSA certificate. Store owners and managers, make sure you check the expiry dates on your staff’s RSA certificates as many of the originals are due for renewal now or in the near future.
February 2016 - Edition 1
A contractor is a person, or an organisation, that provides a service for a fee but is not a direct employee of the workplace. This means that people who you engage to perform maintenance activities or provide advice (e.g. consultants, accountants, etc.) are contractors.
Below are a few simple steps that you should consider when next engaging a contractor: Ensure that the contractor is competent. Ask them to prove their competency via qualifications, licences and certificates. Manage your risk, ensure the contractor is insured. Request the contractor to provide you with their most current public liability, professional indemnity and WorkCover insurances (as appropriate). Conduct an induction. Establish a way to communicate your workplace rules, emergency procedures, hazard/ incident reporting processes and organisational specific expectations to the contractor before they commence work. If possible, gather evidence that this has been done. Request contractors (and visitors) to sign-in and sign-out. This supports emergency management programs and security. At the sign-in/out register, provide site information to support your “induction” requirements. Define responsibilities. Identify which worker(s) in your workplace are involved in managing and/or supervising contractor(s) while they are at your workplace. Monitor work. Establish processes that monitor the contractor’s work; and deal with non-compliance issues.
Training
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Food labelling – Fair trading laws Fair trading laws and food laws in Australia and New Zealand require that labels do not misinform through false, misleading or deceptive representations. In Australia, this legislation includes the Australian Consumer Law (ACL) contained in the Competition and Consumer Act 2010, and State and Territory Fair Trading Acts and Food Acts. In Australia, the Australian Competition and Consumer Commission (ACCC) enforces the Competition and Consumer Act 2010. Weights and measures Suppliers must label food products with accurate weights and measures information. Weights and measures declarations are regulated by the Australian National Measurement Institute. Goods must be ‘tared’ so the weight of wrapping or receptacle is not included in the total. Goods that may lose moisture over time, such as a 3kg bag of oranges, must be checked to make sure they remain at or above the specified weight on the label. Legibility requirements The Food Standards Code requires that labels must be legible, prominent, distinct from the background, and in English. The size of the type in warning statements must be at least 3mm high, except on small packages. Name or description of the food Foods must be labelled with an accurate name or description that indicates the true nature of the food, for example ’Strawberry Yoghurt’ should contain strawberries. If it were to contain strawberry flavouring rather than real strawberries, the label should indicate that it is strawberry flavoured yoghurt. The National Measurement Institute (NMI) has released its annual Trade Measurement Compliance report. About trade measurement law Have you ever wondered if the litre of fuel you buy at the pump is actually a litre? Or if the 125g pack of biscuits you bought at the supermarket last week actually weighed 125g?
• Tested over 10,000 measuring instruments, such as scales and petrol pumps • Inspected around 120,000 individual packages for correct measure. More information about trade measurement inspections and business can be found in the 2014-2015 Trade Measurement Compliance report. Breaches of measurement law In 40% of first-time visits to a business, NMI’s inspectors found a breach of trade measurement law. Most of these breaches were relatively minor and were corrected by the business after advice and assistance from the inspector. In some cases, where a persistent and significant breach was identified, fines and prosecutions resulted for the business. How do I make sure my business complies with trade measurement law? Businesses that sell goods by measurement, or that manufacture, pack, import or sell pre-packaged goods, are required to comply with the Australian trade measurement laws: • Read NMI’s ‘Guide to the Sale of Pre-Packaged Goods’ brochure for more information. • Ensure that all measuring instruments used for trade, such as a scale to sell goods, are checked regularly by a technician licensed by NMI. Check out the 2014-2015 Trade Measurement Compliance report http://www.measurement.gov.au/TradeMeasurement/ NationalData/Pages/default.aspx Find out more about business and trade measurement here http:// www.measurement.gov.au/TradeMeasurement/Business/Pages/ default.aspx
Trade measurement law protects consumers and businesses to help ensure they receive the correct weight, volume or length of goods that they’ve paid for. The law covers a wide range of goods, including firewood, petrol, milk, groceries and meat. Who is responsible for the law? The National Measurement Institute (NMI) is responsible for trade measurement legislation. They have a national network of trade measurement inspectors to help businesses understand and comply with the law. Trade measurement inspections During 2014-2015 NMI’s trade measurement inspectors: • Carried out more than 11,000 audits on businesses
www.mga.asn.au
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Training
National Online Training Courses MGA delivers training and compliance solutions specific to the needs of independent retailers. We have a range of training and compliance solutions readily available for members.
Responsible Service of Alcohol This course deals with the skills and knowledge required to satisfy the requirements for responsible service of alcohol under state/territory legislation. All persons involved in the serving and sale of alcohol must complete this.
RSA – WA, QLD, SA, NT
Food Safety These nationally recognised online courses have been developed especially for delivery to all retail staff involved in all aspects of the preparation, storage and serving of food.
Duration: 3 hours Member Price: $45
RSA – ACT
Duration: 3-4 hours Member Price: $45
Basic Food Handling
Duration: 20-30 minutes Member Price: $25 Food Safety Supervisors
Duration: 4-8 hours Member Price: $105
Food Safety Supervisors – NSW
Duration: 4-8 hours Member Price: $150
Monitor Food Safety Program
Duration: 2-4 hours Member Price: $105
Food Safety Supervisor & Monitor Food Safety Program
Duration: 6.5 hours Member Price: $180
February 2016 - Edition 1
RSA Refresher – ACT
(must be completed every 3 years) Duration: 60-90 minutes Member Price: $30
Retail Qualifications MGA offers Certificate III (retail operations and/or supervision) and Certificate IV (first line management).
Certificate III in Retail (VIC)
Duration: 12 Months Fee for Service: $2800 | Funded: POA Certificate IV in Retail Management (Nationally – ex. NT)
Duration: 24 Months Fee for Service: $2800 | Funded: POA
Training
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Visit www.mga.asn.au to purchase our training courses
Health and Safety These courses aim to provide employees with information and instruction on their responsibilities and the responsibilities of management with regard to workplace health and safety.
Health & Safety Induction
Duration: 30 minutes Member Price: $25
Administer Workplace Health & Safety
Duration: 60 minutes Member Price: $40
Emergency Management
Duration: 60 minutes Member Price: $25
Updated online courses on the MGA website The system and courses have been designed to be user friendly and work on most devices, including desktops, tablets and mobile phones. As long as you’ve got internet access, you’ve got learning opportunities.
Food Safety
Food Safety supervisor course for all states except NSW: $105 Store Security
Duration: 30 minutes Member Price: $25 Manual Handling
Duration: 60 minutes Member Price: $25 Workplace Violence, Bullying & Harassment
Duration: 30 minutes Member Price: $25
Hazard Identification & Risk Management
Duration: 40 minutes Member Price: $40
Food Safety supervisor course for NSW: $150 *Food Safety supervisor refresher course for NSW: $100 *Food Safety supervisor refresher course is a new course developed for NSW. It contains the extra information on raw egg safety and allergens that the Food Authority now requires. You need to refresh NSW Food Safety Supervisor training every 5 years.
Responsible Service of Alcohol – Special introductory price
RSA Online for QLD, SA, WA, NT: $45
RSA Online for ACT: $45 *RSA Online Refresher course for ACT: $30 *The ACT RSA refresher course is to be completed every 3 years after your initial qualification. You must be able to supply evidence of your original RSA certificate to do this course. The online course can be completed in around 1 to 1.5 hours.
www.mga.asn.au
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Corporate Partner Advertising
Have your business fully protected with MGA Insurance Services Insurance is all about trust and confidence. With MGA Insurance Services, you will experience firsthand our commitment to listening and delivering the best advice and service possible. If a fire destroys your stock or a customer slips and falls, will your insurance help keep your doors open? Under our arrangement with MGA Independent Retailers, we work exclusively with members to tailor insurance programs that meet your specific needs.
Check these benefits out! - Competitive premiums - Excellent claims service - Full equipment breakdown cover - Personalised service and top shelf advice - Free ‘Insurance Health Check’ Most retailers are under insured and therefore under risk. Protect your business and livelihood adequately by getting a quote today from one of our brokers in your local area. With over 300 stores currently insured, we understand what members want and we make it easy! We understand your risks and challenges, and will help create the policy you need so you can stay focused on your business.
For a FREE quote call 1300 402 756 Visit www.adroitig.com.au February 2016 - Edition 1
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