IR OCTOBER 2016

ISSUE 7 | OCTOBER 2016

YOUR INDUSTRY NEWS PROVIDED BY MGA INDEPENDENT RETAILERS

INDEPENDENTS SUPPORTING LOCAL SUPPLIERS

1800 888 479 • www.mga.asn.au National National SupportSupport Office •Office 1800 •888 479 • www.mga.asn.au

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MAKING LIFE EASIER

Our Mission

The mission of MGA Independent Retailers is to deliver the best possible industry specific business support services to independent grocery, liquor, hardware and associate store members.

MGA National

Support Office Suite 5, 1 Milton Parade, Malvern, Victoria, 3144 P: 03 9824 4111 • F: 03 9824 4022 admin@mga.asn.au www.mga.asn.au Freecall: 1800 888 479

Retailer Directors 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

Editorial and Production courtenay.hirst@mga.asn.au

Follow us online: www.facebook.com/ MGAIndependentRetailers www. twitter.com/MasterGrocers

Contents 5 CEO Welcome

Industry News 6

Perth suburb - City Beach 8 MGA Industry Business Breakfast 8 Legal and HR seminars 9 New Peregian Beach IGA provides a lasting legacy for the whole community 10 Guidance on unit pricing 11 Independent Supermarket Buying Group (ISBG) Expo 12 Three-tiered refrigeration at IGA Green Square 13 ACCC to keep a close eye on retail competition 13 Queensland trading hours review 15 The history behind one of Australia’s oldest family owned dairy companies 17 MGA visits Parliament House 17 Farewell Geoff Browne – Victorian Small Business Commissioner 19 Exposure Draft – Competition and Consumer Amendment (Competition Policy Review) Bill 2016 20 Dyson’s IGA Numurkah refurbished

Liquor News 23 Brown Brothers host MGA Liquor Committee meeting 25 Executive changes at CUB 26 Barr Government – confirms new ACT liquor license fee structure 27 Diageo confirms Simon Tamke resignation 27 NSW Callinan report released 28 De Bortoli Wines receives platinum project certificate 29 Around the World 29 Art gallery sues Idaho police for old-fashioned liquor law after burlesque bust

Legal and HR 30 General protections under the Fair Work Act 31 Employing new staff 33 Backpackers taxed at 19% 35 Redundancy

Training 36 Food Safety Supervisors (FSS) for NSW 36 The hierarchy of control for working at night 37 Young workers in the workplace 37 Trainee of the Year Award - Josiah Clayton

MGA Corporate Partners Diamond British American Tobacco Australia

Platinum

Gold

Silver

Bronze

Associate

Warehouse and Brand Partners

tasmanian independent retailers

CEO Report

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CEO Welcome Welcome to MGA’s spring edition of the Independent Retailer magazine. The football season is now over and retailers are reporting that preparations are well underway for the summer period, and more particularly the festive season, Christmas and New Year.

The Australian economy remains steady with consumer confidence levels growing, interest rates, as announced by the RBA earlier this month, remaining unchanged at an all-time low cash rate of 1.5%, the Aussie dollar continues to hover around 77 cents against the $US and the seasonally adjusted unemployment rate unexpectedly falling to 5.6 percent in August of 2016. Encouragingly this was the lowest jobless rate since July 2013.

On the 5th September, Treasurer Scott Morrison released in the Parliament an Exposure Draft – Competition and Consumer (Competition Policy Review) Bill 2016. The ACCC also released its guidelines concerning the Harper Review proposed section 46 (misuse of market power) framework. MGA has lodged its response submissions to strongly support both documents.

MGA has conducted two very good legal and HR seminars.

One each in SA and WA. The response after each seminar from participants has been outstanding. With current media and Fair Work Ombudsman attention, in respect of such companies as; 7-Eleven Coles supermarkets and McDonald’s concerning their EBA’s not satisfying the BOOT test and underpayment of wages, there has been a high demand from members wishing to ensure they are well informed and able to handle legal and HR matters in their stores to ensure total compliance.

MGA thanks all members for their support to help fund this very expensive case.

MGA Queensland has been invited to participate and be a member of the Palaszczuk Government’s Allowable Shop Trading Hours Act review reference group. MGA will keep members informed of any issues or matters arising from this review.

We live in a world where local, state and federal governments continue to be rhetorical. On the one hand they say they wish to reduce red tape and cost burdens to business and on the other hand, our members continue to be bombarded with new regulations. The “nanny state” mentality is alive and well! Container Deposit Legislation has been in South Australia for a number of years and more recently in the NT. Members are advised that it is now the intention for various state governments and territories to implement a similar scheme. What is the problem? More red tape and costs burdens? MGA’s policy is to work with various governments to ensure these schemes operate efficiently without adding further cost burdens to our members.

MGA’s online training offer continues to grow, members are encouraged to utilise these cost efficient courses to help better train staff and to be compliant.

MGA welcomes all feedback and comments from members. Should you wish to discuss any matters concerning your business workplace then please don’t hesitate to call the MGA team.

Until next edition – good trading.

MGA is anticipating that the Fair Work Commission will hand down its decision concerning the reduction of Sunday Penalty rates from 100% to 50% sometime in February 2017. There has been an enormous effort put into this case by many interested parties.

Jos de Bruin CEO – MGA Independent Retailers “MAKING LIFE EASIER”

MGA INDUSTRY BUSINESS FOOD SAFETY

BREAKFAST & AGM TRAINING Protect your business

For more information visit: www.mga.asn.au/community-events/mga-business-breakfast

www.mga.asn.au

6

Industry News

WESTERN AUSTRALIA

Perth suburb – City Beach Taylor Road, Nedlands Supa IGA store owner James Kelly who won the IGA National Retailer of the Year award has opened another state-of-the-art supermarket in the Perth suburb of City Beach.

In recent years a devastating fire swept through the City Beach local shopping centre destroying the existing supermarket and most other retailers, cafes and service provider’s premises within the centre.

James Kelly took up the challenge, together with the developer, to create an exceptional supermarket shopping offer in keeping with the demands of the local community. Opening in July 2016, trading

7 days per week, 24 hours per day, this store exudes class and is dripping with innovation. The theme of the store is ‘for the love of food’ which emanates from every department within the store.

The design of this store, the emphasis on exceptional customer service, a focus on modern and energy efficient equipment and LED lighting along with the warm homestead style flooring, well laid out eye level fresh section and the spacious grocery aisles demonstrates that there was no stone left unturned to create potentially the best supermarket offer in Perth.

Fresh, locally sourced, best quality, interesting and beautifully presented food is the hallmark offer to attract customers to this

MGA WA Director Gino Divitini and Store Manager John Barton

Brilliantly presented fresh fruit and vegetables

December 2016 - Edition 8

Industry News

unique operation. 60% of the 1,100 sq m store is allocated to fresh food which is cleverly merchandised and displayed, maximised to create a “wow” factor and stimulate consumers.

The fresh food area includes innovative rows of exceptionally presented “handpicked” fruit and vegetables, dried fruit displays, superb cakes, flavoursome soups and sandwiches, 16 metres of floor to ceiling chilled fruit and vegetables, a large freshly baked bread section, a delightful delicatessen serving numerous varieties of small goods, olives, cheeses, ready-made meal solutions and salads. In addition there is a 16 door upright fridge displaying a huge variety of top quality cuts of meat, chicken and sausages. Fresh tortillas are handmade and baked in store every day.

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A short distance from the entrance of the store there is an area at the front of the store set aside to tantalise and stimulate consumers. In keeping with the “for the love of food” theme, there is a highly visible branded “PURE” concept booth, specialising in making fresh fruit and vegetable juices, fruit baskets, soup ingredients and segmenting and pre-packaging boutique cheeses.

Congratulations to James Kelly and his team for presenting a magnificent supermarket offer in WA. This is something the chains and Aldi can never do like an independent operator can.

Outstanding presentation

www.mga.asn.au

8

Industry News

VICTORIA

MGA Industry Business Breakfast MGA continues to organise high quality professional development events to lift the profile of our industry sector and to assist members to better understand industry issues and opportunities. On the 13th September, MGA held an Industry Business Breakfast in Melbourne at Leonda Receptions, Hawthorn. MGA Board Director, Mick Daly was the Master of Ceremonies. A sell out audience of over 130 industry people attended this event to hear the Small Business and Family Enterprise Ombudsman, Kate Carnell and Chairman of the ACCC, Rod Sims present and speak.

Kate, who is completely passionate about the challenges small business owners face, spoke about her powers and role as the Ombudsman and the immediate goals her office wished to achieve including, quicker payment terms and conditions applicable to larger businesses paying their smaller supplier businesses which at present is untenable. Rod Sims, who is passionate about fair competition between respective businesses but also very protective of consumers’ rights enlightened the audience by speaking about the Harper Competition Policy Review report and the need for section 46 of the CCA to be strengthened.

Rod Sims, Chairman of the ACCC

Business Breakfast attendees

Kate Carnell, Small Business and Family Enterprise Ombudsman

Rod Sims, ACCC & Mick Daly, MGA

Warwick Ponder, eftpos

Gerard Burg, NAB

Our major sponsors for this event, eftpos and NAB respectively, also made highly informative presentations concerning the use of “Tap and Go” eftpos cash out facilities and global / Australian economic performance, trends and future outlooks. We thank them for their contribution.

The next industry Business Breakfast, coupled with an AGM, will be held in Adelaide on Friday 11th November.

WESTERN AUSTRALIA

Legal and HR seminars After a successful MGA Legal and HR seminar held in Adelaide in September, it was decided to conduct a Legal and HR seminar in Perth WA on 5th October 2016.

As members are acutely aware there has been a very strong focus in the media this year concerning underpayment of wages and EBA’s not satisfying the BOOT test by the likes of 7-Eleven, Coles, Hungry Jacks and so on.

MGA’s highly qualified and skilled professionals, after receiving a plethora of phone calls and enquiries from members from around Australia have developed a comprehensive 1 day seminar

December 2016 - Edition 8

encapsulating all the workplace legal and HR obligations MGA’s members must consider when employing people. Not only is there considerable information and interaction concerning the Industry Awards and their idiosyncrasies but also such areas as people performance, people management, dispute resolutions etc.

Members from as far away as Fitzroy Crossing, Mount Barker and Geraldton together with members from Perth attended this highly engaging seminar.

Members are encouraged to attend these seminars when they are next scheduled in your regions…please call MGA to enquire.

Industry News

9

Roz White, Barnaby Joyce - Deputy PM, Kim McCosker - 4 Ingredients

Michael and Roz White; Tony Wellington – Noosa Mayor, Tony Scanlon – Centre Developer, Llew O’Brien – MP and Glen Elmes – MP

QUEENSLAND

New Peregian Beach IGA provides a lasting legacy for the whole community With the vast majority of construction work on the new White’s IGA at Peregian Beach going to local suppliers and tradespeople, owner Roz White now has her sights set on filling the store with as much local produce as possible.

The new 1,200 sq m store which undertook a $2m fit out, opened in the Peregian Village Market on 21st September 2016. This “state of the art” store includes a stunning new design and innovative features which have been drawn from the White’s travels across Australia and overseas.

“Best of all, the Whites have engaged a number of local firms such as John Maslen and his team at Advanced Refrigeration Technology at Warana to design, construct and install the store’s $1m refrigeration system.

“The refrigeration system adopts cutting edge technology which is designed to reduce energy consumption and offer an impressive environmentally sustainable mode. The water cooled system also interacts geo-thermally utilising natural elements to cool and recycle energy. It’s wonderful that this cooling system can be designed, constructed and installed right here on the Sunshine Coast. Many of the refrigeration display units in the Peregian store have been custom built to our

specifications which makes them a ‘world first’ utilising the cutting edge technology John and his team has designed,” Roz said.

The White’s have had a long held ‘buy local’ mantra based around the locavore philosophy which is directed towards sourcing as much labour and produce from the local community. “Supporting the local community is part of our culture and how we operate on a daily basis.”

“In fact it was written into our job descriptions when we were employing people for the new store. We wanted applicants to show how they support the local Peregian Beach community and it’s really pleasing to know that we have employed many staff who are active in the local community.”

“70 staff are working at Peregian Beach, most are locals and they all love the area so we really look forward to being an integral part of the community,” Roz added.

Roz said the new store includes all the traditional supermarket lines along with a

number of gourmet and hard to source items such as cheeses, breads, cured meat, seafood, spices, sauces and other condiments.

“We also have our own in house barista where customers can enjoy a freshly brewed coffee, they can sit and read the newspapers while their partner shops or just to take time out.”

“The store is different but I am sure people will embrace this new shopping experience,” Roz added.

Long term local Tony Trask, a recent international store manager of the year recipient, will be the store manager. Tony possesses an enormous wealth of experience and knowledge both in the local area and in the supermarket industry.

Congratulations to Roz and Michael White for meeting the needs of their local community at Peregian Beach with a superb supermarket offer and experience.

www.mga.asn.au

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Industry News

Guidance on unit pricing On the 11th October 2016, MGA’s NSW Director, Andrew Bray was invited by Standards Australia to attend an important meeting of delegates from various backgrounds, including academics specialising in consumer behavior, in Sydney, to provide Guidance on Unit Pricing.

The purpose of this meeting was to review the Guidance on Unit Pricing standard (WD ISO 2104_v4) and to provide guidance to the Australian delegate for ISO PC 294 standards meeting to be held in Tokyo, Japan.

The all-day meeting led to the writing of a final paper on the Australian Standard for Unit pricing and debated a number of issues relating to the application of unit pricing.

The contents of this paper will go to the International Standards Meeting in Tokyo in December for discussion and a further meeting scheduled for next year.

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December 2016 - Edition 8

A member of the Australian Consumers Federation, who also represents the International Consumers Federation, provided a number of recommendations with statistical background regarding the display of unit pricing.

His recommendation was to have bottom shelving to be angled so tickets can be read easier and wanted the font of the unit price to be at 17 points…..(MGA members currently use 10/11/12 points on our tickets). He also provided examples of price tickets from Germany, UK and US, of all different sizes, some in color and some in plain white.

Not being retailers, members of the panel were not aware of the significant cost impacts of any Unit Pricing ticketing changes that retailers from all industries would face.

Andrew was able to explain that random changes are not practicable and that MGA would not support any increase in ticketing font size over 13 points and not support the introduction of angled ticket stripping as they are not suitable for lower shelves.

Examples of shelf price ticket’s from all over the world were displayed at the meeting and debated over many hours.

The result of the meeting is that the Standards committee will not state any Unit Pricing ticket font change recommendations in its draft to the international committee and will report back in the new year.

Industry News

11

SOUTH AUSTRALIA

Independent Supermarket Buying Group (ISBG) Expo South Australia On the 16th September a large group of Foodland independent supermarket store owners, operators and managers met at the Morphettville Racecourse to attend their annual ISBG Expo.

Led by Chairman Wesley Burgan (Foodland Happy Valley) and ISBG CEO Brian Alloway and Operations Manager Michael Cameron, Foodland store owners came from far and wide to attend their AGM, various meetings and the Expo. Recently retired John Sandercock from Foodland Ardrossan was the official spruiker.

Michael Cameron - ISBG (centre) and Wesley Burgan - Foodland Happy Valley (right)

There were over 200 suppliers and service providers displaying their wares in the very large function room overlooking the picturesque racecourse.

The Expo is a unique opportunity for suppliers to engage with store owners personally, particularly those retailers from faraway places that rarely have representatives visit their stores. Strength and unity is also achieved through networking, sharing of ideas and having a bit of fun along the way. It enables store owners to avail themselves to great deals which they can reflect into price back in their stores to compete fiercely with the duopoly and Aldi.

Chris Dos Santos - MGA SA Director (right)

MGA stand

Michael Cameron - ISBG (right)

Chris Dos Santos - MGA SA Director (left)

www.mga.asn.au

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Industry News

VICTORIA

Three-tiered refrigeration at IGA Green Square A 14-glass door refrigerated dairy case and an open, self serve refrigerated delicatessen are two of the features of the new IGA Green Square store at Abbotsford, near Melbourne.

The store, which opened in August, also boasts a 10-door liquor coolroom and access door, a 14-door freezer and refrigerated display cases for produce and meat.

The refrigeration system was installed and commissioned by the Kilsyth-based Allstate Refrigeration Services, who specialise in the independent supermarket sector.

“Due to the constraints of this project, we installed three systems at IGA Green Square which are all run by Bitzer Evolution condensing units located in the underground carpark,” Allstate Refrigeration Services manager Kristan Wood said.

“System one is the 14-glass door freezer and freezer room, system two includes the deli,

FOR SALE

produce, meat and dairy cases, while the third system is the dairy and liquor coolrooms.

“The Hussmann dairy cases selected include doors which are way more energy efficient than an open case.”

Kristan said there were a few restrictions on installation of this system especially due to the underground carpark where his company had to install the condensing units.

“We had issues with bringing the cases into the store with a tramline directly out in front of the store, so that took some extra labour and a bit of co-ordination with VicRoads and Yarra Trams as well as the Body Corporate,” he said.

Romel Andrawis, the owner of IGA Green Square, told Independent Retailer that Allstate Refrigeration had done an “awesome job” in installing all the cases, in terms of the freezers, dairy and deli.

Allstate Refrigeration Services manager Kristan Wood with IGA Green Square staff member Bilal

“They were very prompt and responsive to my requests. Their after-sales support was really good. Kristan has done an awesome job and he has a good solid team behind him,” Romel said.

“I would recommend Allstate Refrigeration to any retailer that is planning to build a new store or a refurbishment of an existing store.

For all enquiries phone Kristan Wood on 0411 605 203 or visit www. allstaterefrigeration.com.au

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Contact the exclusive Agent for further information Steve Sellars 0407 399 240 CRE Ref: 60302L

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December 2016 - Edition 8

Industry News

13

ACCC to keep a close eye on retail competition Speaking at the AFR Retail Summit in Melbourne on the 28th September 2016, Australian Competition and Consumer Commission Chairman Rod Sims stressed the importance of competition.

“Competition is essential to our economic prosperity; it drives innovation and productivity, and it lowers costs and improves product quality,” Mr Sims said.

“While all economists welcome competition, of course businesses usually do not.”

Mr Sims noted many promising signs for competition in retail. “In particular, competition is benefitting from online sales challenging the established bricks and mortar stores,” Mr Sims said.

“Going forward, our main competition role in retail will be to ensure new entrants are not prevented from competing on their merits. We will, therefore, be alert to the consequences of large firms acquiring promising start ups, we will closely monitor access to data issues, and we will continue to support the proposed Harper changes to section 46,” Mr Sims said.

Mr Sims then went on to discuss using laws to good effect, addressing supply chain issues and ensuring honest promotional claims so as to enhance competition in the retail sector.

Mr Sims backed the Harper Review’s calls to ensure retail regulations around liquor licencing and planning and zoning don’t have unintended competition consequences.

Mr Sims said the ACCC has used the competition provisions of the Competition and Consumer Act 2010 to good effect in several areas of the retail sector.

He said the ACCC’s interventions had benefitted competition Rod Sims – Chairman of the ACCC in areas such as restrictive supermarket leases and petrol retailing.

In providing an update on supermarket supplier issues, Mr Sims said the ACCC has seen changes in the way retailers behave, but the problems have not been solved.

“We are looking at reports of behaviour associated with the [Food and Grocery] Code and we are advising suppliers who have concerns about their dealings with the supermarkets to raise them with the ACCC, confidentially if required,” Mr Sims said.

Following actions involving Nurofen, Coles par-baked bread and Paddle Pops, Mr Sims said providing consumer protection will very often enhance competition and the benefits that flow.

“The Australian Consumer Law protects consumers, but it also has a powerful effect on competition. It enables businesses and retailers to compete on their merits, not falsehoods.”

Mr Sims also told retailers that consumer guarantees and product safety are key areas of focus for the ACCC in the retail sector.

Source Australian Financial Review – 28 September 2016

Queensland trading hours review The Palaszczuk Government has announced that there will a review of the Queensland Trading (Allowable Hours) Act 1990.

Relations lawyer, David Sztrajt, will be MGAQ’s representative on the reference group.

MGA Queensland has been invited to participate and be a member of the Palaszczuk Government’s Allowable Shop Trading Hours Act review reference group. The refence group will include representatives from the NRA, CCIQ, SDA and Qld Tourism. The review will be led and independently chaired by John Mickel. MGA’s very capable Workplace

This will be an important opportunity to put forward the views of MGA’s members that any further deregulation of trading hours in Qld will simply pave the way for the chains to further crowd out smaller retailers, reduce competition and ultimately have a detrimental effect on the viability of privately owned businesses and family enterprises.

It is the intention of John Mickel to conduct the consultation part of the review prior to Christmas 2016 with a view of finalising a report for lodgement with Premier Palaszczuk prior to Easter 2017.

The first meeting of the reference group took place in Brisbane on Friday 6th October. The MGAQ committee will be working very hard to put a case forward that will ensure that MGA’s members best interests are not put at risk.

www.mga.asn.au

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Industry News

Get Getsome someAsk dough dough your with withyour your bread. bread. customers to & press && Press Press to get cash out and every everyday dayin-store in-store avoid ATM fees. to toget getcash cashout outand and avoid avoidATM ATMfees. fees.

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eftpos is a great way to give your customers added value with their everyday purchases. The more cash they get out from your store, the less cash you will have on the premises, helping to reduce the cost and risk of doing business.

December 2016 - Edition 8

Industry News

15

The history behind one of Australia’s oldest family owned dairy companies Bulla Dairy Foods is one of Australia’s oldest family owned and operated dairy companies, proudly making dairy products in country Australia since 1910.

Thomas Sloan established the Bulla Cream Company in the Melbourne suburb of Moonee Ponds in 1910. Thomas famously pioneered a new method of thickening cream, which involved pasteurising the cream in open cans in wood fired copper. Thomas’ brother William, supplied the milk from his dairy farm in Bulla, and together they created the famous Bulla thickened cream.

From there, Thomas’ brother in law Hugh, and Hugh’s brother Jack joined in the operation, and later they were also joined by Hugh’s daughter and son in law. The three families then launched Bulla into the successful business it is today, and the Sloans, Andersons and Downeys all still operate the business in harmony today.

Over the years, Bulla has expanded its business across Victoria.

Locations now include four manufacturing sites, two in Colac, one in Mulgrave and one in Dandenong South, a state-of-the-art Innovation Centre in Colac, as well as its head office in Derrimut. Bulla still produces it’s award winning thickened cream product today, and in addition to this also produce a range of award winning ice cream, frozen yoghurt, chilled yoghurt and cottage cheese.

Family focus Bulla has a passion for dairy; they have been continually manufacturing and selling under the same families for a century, making the lineage and history a very tangible part of the Bulla brand.

Tenure in the business is much higher than industry average, with some of the current management and directors literally growing up in the company. This is recognition of the strong family connection and the translation of this into pride in what they do.

All of the company’s employees are regarded to be part of the ‘Bulla Family’, and they have multiple generations of the same families working for them. Bulla is unique in that many employees tend to stay for decades. They have many staff who have passed 20, 30 and even 40-year milestones.

Throughout the decades, regardless of changes in the market or economy, Bulla is careful to maintain a close, family-like environment where all people, employees, employers, customers and suppliers alike, are treated with respect and dignity. The management structure at Bulla is relatively ‘flat’, and there has never been a sharp distinction between boss and worker.

There are always pressures on family owned and operated businesses to sell-up, publicly list, or be absorbed by larger, ‘more profitable’ companies. This pressure is from a purely commercial aspect.

From an emotional aspect, family businesses face the pressure of delivering products that are honest and of a certain quality – reasons why being a family business is honorable but conversely a reason why it can challenge the bottom line.

There has never been a consideration for Bulla to operate as anything other than a family business and it is because of this steadfast attitude that they will continue to deliver products with care, craftsmanship and passion – today, and for generations to come.

www.mga.asn.au

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Industry News

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Industry News

17

MGA visits Parliament House Canberra On the 14th September MGA visited Parliament House Canberra during the first sitting since the federal election in July.

There were many changes of course, with many members of Parliament choosing to retire or having lost their seats. One significant retiree was Hon Bruce Billson, former Small Business Minister and Minister for competition matters.

The Cabinet Ministry was also changed with new parliamentarians being elevated into ministerial roles and current ministers having their portfolio’s changed. Minister Kelly O’Dwyer, who did a great job as Small Business Minister and Assistant Treasurer, taking over from Bruce Billson, has moved into a new finance portfolio.

The new Minister for Small Business is Hon Michael McCormack who hails from regional city Wagga Wagga in NSW. The most significant change to the cabinet is that the Small Business Minister will now not be included in the Cabinet. This is a significant setback for the small business sector being the back bone and thermometer of the Australian economy.

The purpose of the visit to parliament house was to meet a string of current new ministers and parliamentarians to discuss the Harper Competition Policy review panel

recommendation to strengthen section 46 – misuse of market power. The current members of parliament from the Coalition to the back benchers are strongly supportive of the draft legislation as it is currently written. Whilst it is expected that the Labor party will oppose the legislation it is widely thought that the proposed bill will be driven through the parliament.

A number of politicians believed the amendments were not strong enough hence we will expect some more healthy debate through both houses.

The Members of Parliament visited include, new Small Business Minister Hon Michael MCCormack, Assistant Minister for Innovation, Hon Craig Laundy, Senator Nick Xenophon, Senators Jacqui Lambie and Derryn Hinch, senior advisors in Deputy Prime Minister Barnaby Joyce and former Small Business Minister Kelly O’Dwyer’s offices, Greens Senator and Small Business spokesman, Senator Nick McKim and Shadow Minister for Small Business, Senator Katy Gallagher’s senior advisor. The parliament was in somewhat of a disarray as new members of parliament tried to familiarise and settle in to their new roles.

MGA also met with COSBOA CEO, Peter Strong, who is a strong advocate for fair competition.

Jos de Bruin – MGA CEO, COSBOA CEO Peter Strong and Hon Craig Laundy – Assistant MInister for Innovation

Michael McCormack – Small Business Minister and Jos de Bruin

Farewell Geoff Browne – Victorian Small Business Commissioner With Geoff Browne’s 5 year tenure as Victorian Small Business Commissioner coming to a close, MGA would like to wish Geoff the very best for his future and thank him for his endless support of Small Businesses in Victoria and of the MGA organisation.

Geoff Browne – Victorian Small Business Commissioner and Jos de Bruin

Geoff and his dedicated team have been instrumental in working with many industry, government (local, state and federal) and community stakeholders to foster the support and

prosperity for privately owned businesses and family enterprises.

In the past 5 years Geoff has doubled awareness of the VSBC, doubled engagement with businesses and advisers, curtailed the growth in retail lease disputes, reduced by two-thirds refusal rates and VSBC settlement rates and satisfaction rates are at an all-time high.

These outcomes are a tribute to the skills and professionalism of Geoff, VSBC staff and mediators. Best wishes to Geoff!

www.mga.asn.au

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Industry News

Mountain Goat started out as Dave’s weekend homebrew project in a suburban Melbourne backyard when a postcard turned up from his mate Cam who was backpacking overseas.

Cam had just discovered good beer in Vancouver and decided Melbourne needed good beer too. This was back in 1997.

So Cam and Dave had a great idea but no money to build a brewery. They were knocked back from every bank they approached but

Drink Responsibly.

December 2016 - Edition 8

luckily, with a little help from friends and family, they prevailed and Mountain Goat was soon tapped at a few local pubs.

Today, almost 19 years later, Mountain Goat is now found nationally and the brewery and bar still operates in the back streets of Richmond, with a lineup of old favourites on tap and constantly changing limited releases and barrel aged beers.

From Steam Ale, one of Australia’s first organic beers, to the refreshing Summer Ale and Pale Ale, through to the complex malt characters in Hightail Ale and Fancy Pants, there is a Mountain Goat beer for everyone.

To place an order for Mountain Goat please contact your Asahi Premium Beverages representative or call our customer service team on 1800 090 378.

goatbeer.com.au

Industry News

19

Exposure Draft – Competition and Consumer Amendment (Competition Policy Review) Bill 2016 On the 5th September in the second sitting week of the new parliament in Canberra, Treasurer and Minister for Competition, Scott Morrison announced the release of the “Exposure Draft – Competition and Consumer Amendment (Competition Policy Review) Bill 2016 (the Exposure Draft)”, showing within it all the proposed recommendations for changes to the Competition and Consumer Act as proposed by the Harper Review Panel. This is the final opportunity for the public to view the proposed legislation and to make their respective comments concerning the amendments before going before the parliament for debate later in 2017.

MGA commends the work of the Government in producing

the Exposure Draft as proposed by the Harper Review which are directed at reform of Australian competition laws.

MGA’s submission particularly referred to Chapter 7 of the Exposure Draft – “The Misuse of Market Power” which it is noted focusses on the “prohibition of the misuse of market power by corporations and better target anti – competitive conduct by corporations with a substantial degree of market power.”

MGA has been a very keen advocate of the need for competition law reform over many years and has long sought amendments to the Competition and Consumer Act 2010 (CCA), in order to maintain the sustainability of Australian small independent businesses in

the retail industry and provide for their growth. MGA also recognizes that there are other industries across Australia that are seeking competition law reform in the interests of increasing employment and productivity through enhanced competition law reform.

Conducted by the Treasury Department of the Australian Government all submissions were required to be lodged by end of September.

Comment on the Framework for Misuse of Market power guidelines – ACCC At the time of Treasurer Scott Morrison releasing the “Exposure draft” in the Parliament on 5th September, so too did the ACCC launch their draft framework for

comment for Misuse of Market power guidelines as published by the ACCC in respect of the proposed amendment to Section 46 of the Competition and Consumer Act 2010 (CCA). The purpose of the Framework is to provide assistance with the implementation of the reforms to the misuse of market power provision in the CCA. In its response to the ACCC, MGA fully supported the development of the draft framework and commended its use as a means of understanding the proposed amendment to Section 46 from a practical perspective. The framework is informative and an invaluable tool to understand the proposed amendments to the CCA. MGA lodged its response to the ACCC in late September.

www.mga.asn.au

20

Industry News

VICTORIA

Dyson’s IGA Numurkah refurbished In 2005 Wayne Dyson and his father Colin planned to build a bigger and better supermarket for the locals of Numurkah, Victoria.

With the help of Peter Shaw these plans were drawn, changed, re-drawn, changed and re-drawn many times before they applied for permits. Plans were submitted to the council, and after 8 years, the initial plans were passed with many conditions to be adhered to.

Some of these conditions were so restrictive that Wayne and Colin went back to Peter for more alterations. Two years later they were re-submitted and passed – still with conditions but not as many.

After 10 years of council (mess arounds) the Dyson’s finally broke ground in early August 2015. By Christmas 2015 a ‘box’ had been built on the back of the old supermarket and this was fitted out with a new tea room, toilets and offices. The happy staff, moved into this area Christmas week.

December 2016 - Edition 8

Early 2016, once the builders were back into the swing of things, they started moving fixtures and fittings within the old store.

The newest equipment available was used in this renovation.

Everything from the floor tiles, to the roof, refrigeration cabinets, checkouts and everything else in between. The only part now left of the existing building is the North wall, the roof trusses and the East wall which forms the new storeroom wall.

Frigrite cases were used within the store for all dairy, freezer, and deli. Frameworks supplied the shelving; Frame and Turnball supplied all the joinery works; Alltech built the plant room and fitted out all the cases and cool rooms – and local trades built and fitted out the building.

CO2 gas is used to run the plant room, which at this stage is the best gas on the market for our greenhouse issues, although some

Industry News

21

may argue that there are more problems than the more widely used gasses 404 or 134A with the pressure that they run at.

Alltech can dial into the system at any stage and look to see if there are any problems – plus there is a computer upstairs that shows a plan of the shop and any alarms that may arise. A full history of temperatures can be printed out at any stage for any refrigeration case for the health department, although the store still does a manual check daily just in case any of the fridge probes have a fault.

Experience ebm-papst

Twelve grocery aisles have been put in the store – four extra than the original eight. Refrigeration has doubled. Checkouts have gone from five grocery and one liquor to eight grocery and two liquor. The locals love what the store now has to offer and sales are reflecting this.

If any retailers would like to see the latest and newest equipment in action, either Wayne or Colin welcome you to come and look around.

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www.mga.asn.au

22

Industry News

December 2016 - Edition 8

Industry News - Liquor

23

Liquor News Brown Brothers host MGA Liquor Committee meeting On Thursday 8th September Brown Brothers kindly hosted the MGA Liquor Committee meeting at their Milawa Winery.

The Brown family have been strong supporters of MGA and independent retailers for many years.

The committee was welcomed to the winery by 4th generation Katherine Brown and Victorian State Manager Dean White.

Brown Brothers is one of Australia’s leading family-owned wine companies, with the family making wine in Victoria for over 120 years.

Founded in 1889 by John Francis Brown, it was under the guidance of his son, John Charles Brown that Brown Brothers established its reputation as a producer willing to experiment with innovative grape varieties. This experimentation and sense of adventure carries across the whole business and can be seen at their cellar doors from Milawa to Tasmania.

As a key member of Australia’s First Families of Wine, the third and fourth generations of the family keep tradition alive with over

60 different wines available for tasting. The Brown family is proud to have forged a reputation, locally and abroad, as varietal wine specialists and winemaking innovators. Over the years we’ve seen many changes in the Australian wine industry, yet the cornerstones of Brown Brothers remain constant. They are still a family business and still hand-crafting wines.

Dean Carroll, Brown Brothers CEO, briefed the committee on the company’s future direction, the domestic market, wine trends and new unfolding markets. Members can view the presentation on the MGA website.

The committee would once again wish to thank the Brown family for being such a generous host and in particular to both CEO Dean Carroll and Victorian State Manager Dean White for the time they afforded the committee.

George Kovitz, John Rodriguez, Nick Cook, Jan King, Alex Gianetta, Angelo Gianetta, Tony Bongiovanni, Kathryn Brown, Campbell King, Dean White, Tony Ingpen, Jos de Bruin

Dean White – VIC/TAS Brown Brothers Sales Manager

www.mga.asn.au

24

Industry News - Liquor

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Industry News - Liquor

25

Executive changes at CUB A number of executive changes will be taking place at Carlton and United Breweries, once the AB InBev proposed takeover of SABMiller is confirmed in October 2016.

Operating Officer are going to be split into separate functional roles for the Zone. As a consequence, I will be leaving the business soon after change of control, subject to orderly hand¬over requirements.

In a letter to the brewer’s partners, Chief Operating Officer Mike Walsh outlined key changes to CUB’s organisational design and personnel as a result of the SABMiller acquisition.

I would like to thank you for your support over the past five years that I have spent with CUB. “As part of the new management team, Peter Filipovic has been appointed Australia Business Unit President, and Richard Oppy as Vice President Marketing Australia. “On the supply side, Ken Hitchcock has been appointed Vice President of Supply, and Anton van Heerden as Vice President of Logistics & Operational Integration for the zone.” Last month AB InBev announced that Jan Craps, currently the Business Unit President of Labatt in Canada will take over as the Zone President for Asia Pacific South, which includes Australia, New Zealand, India, Vietnam and other South and Southeast Asian countries.

CUB’s current CEO Ari Mervis has already been confirmed as leaving the business in October and Walsh also confirmed in his letter that he will be leaving and that current Sales Director Peter Filipovic, will be taking over as the Australia Business Unit President.

Walsh said: “AB InBev has announced its new organisational design for the Asia Pacific South Zone. Under this new structure my previous responsibilities as Chief

N E W

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www.mga.asn.au

26

Industry News - Liquor

Barr Government – confirms new ACT liquor license fee structure After constant lobbing by the MGA on behalf of its members, the Barr Government agreed to lift the threshold of the proposed 25% off-premise license fee increase to liquor stores with annual purchases as recommended in the ACT Liquor Advisory Board ‘White Paper’ from $1million to $3 million or more which affectively excluded the majority of our members from any increase at all.

Chief Minister Barr has now detailed his government’s proposed fee structure if re-elected.

Proposed Fee Structure Stores with Gross Annual Purchases (GLP) Less than – $3m No Change to Fees $3m – $4m + 5% to $21,381.15 $4m – $5m +10% to $22,399.30 $5m – $6m +15% to $23,417.45 $6m plus +20% to $24,435.6

As stated in the media release, “the proposed fee structure increase is aimed at high volume, big discount off licences that trade long hours” that represent the majority of packaged liquor sales in the territory.

During our negotiations with both the Labor and Liberal politicians we argued that the best solution to curb the minority of people who put themselves and others at risk when binge drinking was through consumer educational campaigns. We are pleased to say that the government has listened agreed to devote the additional revenue raised towards educational campaigns that focus on responsible consumption of alcohol.

Liberal leader Jeremy Hanson has stated that should he win the upcoming election he would not impose any liquor fee increases.

MGA will continue to monitor both parties

Andrew Barr

to ensure that whoever is successful on polling day are held to account on their promises on this issue.

If you need any further clarification please do not hesitate to contact the MGA National Support Office on free call 1800 888 479.

RSA training is mandatory for anyone selling, offering and serving alcohol in any state.

Make sure you and your staff members are accredited!

Check out our range of online and face to face courses today.

Visit us at www.mga.asn.au/training or free call 1800 888 479.

Don’t forget to log in to the website to receive your member discount!

October 2016 - Edition 7

Industry News - Liquor

27

Diageo confirms Simon Tamke resignation Diageo Australia has confirmed that its Commercial Director, Simon Tamke, has resigned and will leave the business on 1 February 2017.

A Diageo spokesperson said that the decision had been based on the pressure of Simon having to commute between Adelaide and Sydney for the role.

“This was a personal but difficult decision for Simon who has been commuting from Adelaide to Sydney for almost a year and had originally planned to relocate to Sydney where our head office is based,” the spokesperson said.

“After significant deliberation, Simon and his family have decided that they would prefer not to disrupt their arrangements by moving to Sydney or continuing to commute between Sydney and Adelaide.”

Simon has been with Diageo Australia since November 2012 when he joined as State Manager for South Australia and the Northern Territory and Head of Third Party. In 2013, Simon was promoted to Head of Key Accounts and then Commercial Director in November last year.

Simon Tamke

Managing Director, David Smith, said: “While I am disappointed that this means we will be losing Simon, I totally understand and respect his reasons for not wanting to uproot his family. We are in the process of looking for a new Commercial Director, however until 1st February, it is very much business as usual with Simon continuing to lead our great Commercial Team as we move in to one of the busiest trading periods.”

NSW Callinan report released The NSW Government has released Hon Ian Callinan AC QC's independent review of the state's liquor laws to the public immediately after receiving it.

The review included more than 1,800 submissions and almost 30 stakeholder sessions, Ian Callinan AC QC including three roundtables into Sydney's night-time economy.

The government will now consider the report and deliver its response before the end of the year.

Stakeholder briefings and community drop-in information sessions will be held over the next few weeks on the Callinan report's findings. More information about these sessions will be made available on the Liquor & Gaming website.

The report, including its conclusions, is available at the Independent Liquor Law Review website. Part Seven (p.139) deals directly with 10pm take away sales restrictions.

Classic bistro wine – ethereal, aromatic, textural, sophisticated and so easy to pair with food. La Bohème are wines with poise and charm.

Enjoy with friends over a few plates of tapas.

For more information contact your De Bortoli representative or visit debortoli.com.au

/DeBortoliWines

www.mga.asn.au

28

Industry News - Liquor

De Bortoli Wines receives platinum project certificate De Bortoli Wines’ goal to become the ‘Zero Waste Winery’ has earned them a Platinum Project certificate, in the NSW Office of Environment and Heritage’s Sustainability Advantage program.

Being the first business in NSW to have received this certificate, it is a great achievement that shows De Bortoli Wines continue to be on the forefront of sustainability initiatives.

The certificate recognises ‘The De Bortoli Method’, a unique potassium recovery system designed to eliminate the environmental impact of potassium build up in soil and significantly reduce dependence on imported caustic cleaning agents.

community. De Bortoli Wines is one of just 12 NSW companies (and the only winery) to achieve Gold Partner recognition, and is now the first to attain a Platinum Project.

Sustainability Advantage is the NSW Government’s flagship program, offered via the Office of Environment and Heritage (OEH), which encourages and enables sustainable best practice in the NSW business

“With this Platinum Project, which is circular by design, De Bortoli Wines should consider itself as a world leader in the pursuit of beyond zero waste and zero harm.” – Tom Grosskopf, Director, Metropolitan Branch, NSW OEH.

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Industry News - Liquor

29

Around the World Putin on the rocks Meanwhile, back in Lithuania, Putin Vodka hit liquor stores in what some call a clever marketing ploy that capitalizes on the name of Russian President Vladimir Putin.

The vodka, produced by the ex-Soviet republic’s Alita distillery, features a label in white, blue and red — the colors of Russia’s flag. “Putin” is emblazoned in large white letters.

A bottle of Putin costs $7 — a little less than most top-end vodkas in Lithuania.

Alita spokesman Vilmantas Peciura maintained the brand wasn’t meant to refer to the Russian president. He said it derived from “putinas,” a tree with red berries found in Lithuania, although the vodka reportedly is clear and not flavored.

Since Lithuania broke with the Soviet Union in 1991, relations with Russia have sometimes been strained. Many Lithuanians have expressed suspicion about Putin’s past work for the Soviet secret police, saying he can’t be trusted.

The new vodka now is sold only in Lithuania, though the distillery said it may decide to export it later, perhaps to Russia.

Russian Embassy spokesman Boris Kirilov said he knew about the vodka and said he didn’t think Russians would be offended by it.

Putin is said to drink little.

Morocco’s imports of liquor on the rise Morocco imported MAD 300 (AUD 40m) of liquor in the last seven months, according to Morocco’s Exchange Office.

The same source said that Morocco imported approximately 5,772 tons of liquor estimated at MAD 300 million since March 2016.

The same source noted that Morocco’s exports of liquor showed an increase in the last seven months. It reached 5,772 tons, compared to the same period in 2015 when it reached 4,295 tons.

Last year, L’Economiste reported that the Moroccan treasury received over MAD one billion in revenue from the sale of liquor in Morocco.

Art gallery sues Idaho police for old-fashioned liquor law after burlesque bust Idaho artist Anne McDonald is suing the state police for censuring her artistic expression and infringing upon her free speech by fining her for a partially nude burlesque performance, reports Courthouse News. Her lawyers include the American Civil Liberties Union of Idaho.

The performance in question, where alcohol was allegedly sold, took place on March 18 at Visual Arts Collective, a Garden City, Idaho art gallery and performance venue. According to the complaint, which was filed in Idaho Federal Court on September 15, two undercover state police detectives attended the show and served the gallery with an administrative violation notice in May threatening to cancel its liquor license.

The detectives found McDonald’s act to be in violation of Idaho Code Section 23-614(a), which states that businesses that sell alcoholic beverages are not allowed to have employees wearing clothes that expose any portion of the female breasts, buttocks or genitalia.

The gallery relies on alcohol sales to stay in business, so “is now training all artists who perform at its venue to comply with the severe

Anne McDonald performing as Frankly Frankie

artistic restrictions [of the] Idaho Code.” The complaint rails against the necessity of such self-censorship, and seeks to have the statute revoked.

www.mga.asn.au

30

Legal and HR

Legal and HR General protections under the Fair Work Act MGA has previously advised members on both unfair dismissal claims and the alternative adverse action claims. The Fair Work Act 2009 introduced a set of general protections to prevent ‘adverse action’ such as discrimination, unfair or unlawful conduct. These claims are becoming increasingly common.

to an employee’s employment. For example an employee has a workplace right to be a member of a union or take personal leave when sick. Therefore, an employer could not dismiss an employee (adverse action) because an employee takes personal leave (workplace right). Recent case examples include:

An employee has a claim if the ‘adverse action’ is linked to a ‘workplace right’. Adverse action may include: • Dismissing an employee because the employee has made a complaint • Reducing hours, shifts or taking unwarranted disciplinary action • Altering the employee’s position, for example, through suspension or demotion • Discriminatory action

Personal leave resulted in adverse action Fair Work Ombudsman v AJR Nominees Pty Ltd [2013]: The employee contended that he was dismissed because he exercised his workplace right to personal leave for an absence due to illness. The court did not accept the evidence of the employer that they were unaware of the employee’s illness. The court found that the employer had a motive to lie in order to avoid paying out a substantial amount of sick leave and that the employee’s absence on personal leave was the reason for his dismissal and therefore had engaged in a prohibited adverse action.

Workplace rights arise under employment law or an award and they consist of entitlements, roles or responsibilities that are attached

BROWN BROTHERS PROSECCO DESIGNED BY MIMCO

Maternity leave not reason for adverse action Lai v Symantec (Australia) Pty Ltd [2013]: The employee was made redundant whilst on maternity leave. The employer gave evidence that the decision to terminate the applicant’s employment was for cost-cutting reasons and had nothing to do with her maternity leave. This argument was supported by strong evidence. The court found that the employee was not dismissed because they were on maternity leave.

Union role not reason for adverse action Board of Bendigo Regional Institute of Technical and Further Education v Barclay (2012): The employee, who was his union’s sub-branch president, sent an email to other employees containing serious allegations concerning the employer’s conduct.

The employee was suspended on full pay and requested to explain why he should not be subject to disciplinary action. The employer gave evidence that they decided to take the action against the employee because of their concern about the allegations in the email and their potential consequences, and not because of the employee’s union membership, office or activities. The employer’s evidence was accepted. It was held that there had not been any contravention by the employer.

FOR MORE INFORMATION Contact your Brown Brothers Area Manager or call 1800 032 248.

October 2016 - Edition 7

Due to the technical nature of these matters, members are strongly advised to contact the MGA Legal & HR team before terminating an employee for any reason.

Legal and HR

31

Employing new staff Employing new staff can be a stressful process for both the person conducting the recruitment process and the prospective employee. It is important to take care during the interview process to ensure that you do not make any discriminatory remarks. Often it takes more than one interview to ensure you have the right person for the job, and it is important wherever possible to check a person’s references.

When speaking to the prospective employee or their referees, ensure that the questions you ask relate specifically to the selection criteria and the requirements of the role. For example, rather than asking whether the worker has a history of back problems, ask whether the employee is capable of lifting heavy boxes or working in a repetitively physical environment.

Applicants should be selected on the basis of skill, ability, qualifications and experience relevant to the inherent duties and requirements of the role, and not asked questions that imply discriminatory decision-making e.g. those based on age, race, sex, marital status, etc. It is strongly recommended for prospective employees to be provided a clear outline or description of the duties contained within the job, before asking if they are aware of any pre-existing injury or illness that might affect the performance of tasks and duties.

Be cautious of prospective employees providing statements of service, rather than written references. If possible, contact their previous employers and ask to speak to the human resources representative or their manager.

If the position available is a senior position, consider the possibility of an internal promotion. If you are unsure about the capabilities of your junior employees for a more senior role, offer a fixed term contract which will give you the opportunity to access the employee’s performance. If they are competent in their new role you can offer them an ongoing position. With a fixed term contract, if the promoted employee is unable to handle the more senior position, you will be able to return them to their previous position once the fixed term expires. It is important to note however that you cannot offer an employee consecutive fixed term contracts.

On finding the right employee, give the employee a contract of employment stating the award or agreement that applies to their employment. You must give any new employee a copy of the Fair Work Information Statement. The contract should also specify the terms and conditions of employment, including wages. The benefit of having this document in writing from the outset is that it can be referenced if necessary in a future dispute as to employment conditions. MGA can assist in providing you with written contracts

for all prospective employees including both permanent and casual employees.

Avoid salary arrangements wherever possible and never offer “sweetheart deals” where an employee is given wages that don’t quite cover matters such as overtime. If you are covered by the General Retail Industry Award, salary arrangements are not expressly allowed and therefore it is recommended that you pay employees in accordance with the applicable penalty rates and loadings. If you have any doubts, contact the MGA Legal & HR Team.

Once an employee begins in their new role, give them time to settle in and adjust to your business. Ensure that you provide adequate training and that the employee understands all of the policies that operate in your store. If you have any training or induction programmes that you require your employees to attend, then you must pay wages to the employees for their attendance.

The initial period of employment is often considered the probation period and it will provide you with some flexibility as to the employee’s ongoing employment. For a business of 14 employees or less, the probation period for an employee can be up to 12 months.

For businesses with 15 or more employees, the probation period is up to 6 months. Use this time to assess the employee’s performance and their suitability within your store.

While recruiting and managing new employees can be tough, with the right recruitment process, paperwork and performance management approach, your new employees should become valued members of your staff.

www.mga.asn.au

32 Legal and HR BEWARE: THE HIDDEN ELECTRICITY COSTS

METERING COSTS Metering Cost $8,892.00*+

Was $6.79 per day Now $1.92 per day Electricity $33,000.00*

Tariff Review $30,000.00* Peak Reset $22,800.00* Billing Errors $1,350.00*

JUST THE TIP OF

THE ICEBERG? A recent case study done by Aussie NRG on one of MGA’s very own members stores, has identified approximately $96,042.00 worth of savings over a 5 year contract!

Aussie NRG can assist you with all aspects of your electricity costs to secure savings and improve your profit.

If you are paying more than $1.92 per day for your metering costs give us a call.

*These figures represent dollars saved in ONE store over a 5 year contract negotiated by Aussie NRG

For an obligation FREE quote Send both pages of your recent energy bill to: MGA’s dedicated account manager on: 1300 139 731 Email: mges@aussienrg.com October 2016 - Edition 7

AUSSIE

NRG

Legal and HR

33

Backpackers taxed at 19% With new tax arrangements due to take effect on 1 January 2017 the Federal Government has responded to backbench and industry pressure and dumped the budget plan to impose a 32.5 per cent tax on backpacker workers.

Under the new deal working holidaymakers will be taxed at 19 per cent from their first dollar earned.

The Government was facing increased pressure from farmers with reports surfacing in September that some growers were intending not to plant fruit and vegetables this season in case they could not find workers to harvest them. Backpackers are a vital supply of workers for the agricultural sector, with as much as a quarter of the industry’s workforce in Australia on a working holiday visa and up to 85 per cent of farm labourers in the Northern Territory on a working holiday visa.

In September 2016 Deloitte consultants spent two weeks gathering submissions and holding roundtable consultations on the matter of the backpacker tax however the Government had not asked Deloitte to make any formal recommendations about where backpacker tax rates should be set.

The Government’s original tax plan of 32.5 per cent was expected to recoup $500 million from the backpacker tax, however to offset the lower tax rate, the Government will now increase the passenger departure tax by $5.

It is hoped that the decision will discourage backpackers from heading to more lucrative destinations such as New Zealand or Canada and provide farmers with greater certainty in finding workers. Working holiday visa applications fell to just 214,583 last financial year from a peak of 258,248 in 2012-13.

Following the decision, the Treasurer

insisted the change would put working holiday makers in Australia on the same footing as if they were in Canada, New Zealand and the UK. The opposition leader has not yet announced Labor’s view, but the Greens oppose any increases.

X

www.mga.asn.au

34

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Legal and HR

35

Redundancy Several members of MGA have recently contacted our Legal & HR Team to discuss reducing their employee numbers within their store. Before making the decision to make an employee redundant, you must firstly attempt to adjust rosters and reduce casuals staff hours to alleviate financial strain. If this is not possible or further action is still required, then you may wish to consider redundancies.

In order to make employees redundant, there must be sound, defensible and wellfounded reason for the dismissal, being that your store no longer requires the employee's job to be performed by anyone because of changes to the operational requirements of your store. Importantly, the redundancy must not be on account of underperformance, personal act or fault of the employee.

Examples of when redundancies may occur: • when business trade slows down • when there is a business restructure • when your business is transferred to a new purchaser

Understanding the legalities and ethics of redundancies is not an easy task. However, there are some basic guidelines in relation to dealing with the sensitive nature of redundancy that may be helpful.

It is essential that a consultation process takes place with all the affected staff members before the redundancy occurs and that all other employment opportunities are considered, including casual or part time positions that may be available. You should not just tell the employee that the position no longer exists but you should have a meeting to discuss the options (perhaps discuss difficulties; are there any other positions; then have a second meeting after you have given the situation further thought).

The discussion with the employee needs to be handled on a business-like basis, trying to avoid emotions, recriminations and irrelevant references to performance issues.

If consultation does not occur, it does not meet the definition of genuine redundancy.

If after the consultation process redundancy remains essential, you will be required

to provide your redundant employees with a notice period and if your business employs 15 or more employees, permanent employees are entitled redundancy entitlements that reflect the duration of their employment.

Generally, there is no legal obligation to provide outplacement services or financial counselling, but it may be beneficial to your interests, and certainly to those of the employee, to provide these services.

Remaining staff also need to be informed of the developments in your workplace.

Making employees redundant is an extremely high risk business decision. If an employee considers that the redundancy is not genuine, they are entitled to lodge an unfair dismissal claim or other complaint with the Fair Work Commission.

Due to the risks involved, MGA encourages that any member considering redundancies consults with the MGA Legal & HR Team to discuss the store’s operational requirements / obligations regarding the redundancy process.

Business innovation Businessinnovation innovation Business CULTURE OPPORTUNITIES OPPORTUNITIES

important aspects of culture SMEs term that 56% Topopportunities opportunities forSMEs SMEsininthe theMost Australian economy the shorttotofor medium termallowed Top for Australian economy ininthe short medium % 44 them to be innovative (% of total reponses). (%of oftotal totalresponses). responses). (% 34% 33%

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Service compelling and enhanced overall experience Foodsafety, safety, Housing Ageing provides Food Digital Housing Ageing Digital for customers qualityand and shortage population technology quality shortage population technology security /affordability /affordability Passion, energy andsecurity drive NAB Special Report: Survey of Business Innovation in Australia September 2015.

NAB Special Report: Survey Business Innovation Australia -- September 2015.

NAB Special Report: AAA Survey ofof Business Innovation inin Australia - September 2015. www.mga.asn.au

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Training

Training Food Safety Supervisors (FSS) for NSW The Food Act 2003 (NSW) requires certain food businesses in the NSW hospitality and retail food service sector to have at least one trained Food Safety Supervisor (FSS). The FSS needs to have gained specific units of competency under the national Vocational Education Training system.

The NSW Food Authority's FSS program was established to help reduce foodborne illness in the hospitality and retail food service sectors in NSW by improving food handler skills and knowledge. The program also aims to provide food businesses with high quality and consistent training by a Registered Training Organisation (RTO) that has been approved by the Food Authority.

FSS training From 1 September 2015 to be certified

as an FSS for a food premise in NSW and issued a valid certificate, a person must attain required units of competency from an approved RTO under the FSS program.

Participants undertaking this training will be required to supply a current NSW Food Safety Supervisor certificate that is still within the expiry date.

The units of competency must incorporate three key focus areas determined by the Food Authority and published on its website: 1. safe egg handling 2. allergen management 3. cleaning and sanitising practices.

This is the link to the webpage – http:// www.mga.asn.au/courses/food-safety

FSS refresher training FSS certificates expire 5 years from the date of issue.

MGA Independent Retailers offers the NSW Food Safety Supervisor refresher training through our online training platform.

Food businesses that have an appointed FSS whose FSS certificate is due to expire will need to enrol their FSS in recertification training with MGA, who are approved under the NSW Food Safety Supervisor program.

When an FSS holder’s certification expires, a food business has 30 days to ensure: 1. The FSS renews their training within 30 working days; or 2. Another FSS with a current qualification is appointed

The hierarchy of control for working at height It is of utmost priority to eliminate the risk of a fall. The ultimate goal is to ensure a fall from height cannot occur. This can be achieved either by eliminating the need to work above the ground or to provide a solid elevated construction from which the work can be performed. If it is not possible to achieve this, the risk of a fall must be minimised through the application of control measures further down on the Hierarchy of Control.

The Hierarchy of Control is as follows: Elimination Eliminate the hazard. Undertake the work from ground level or from a solid construction. Redesign should be considered to eliminate the need for working at height.

Substitution Change the control measure to undertake the work from a safe zone. Relocation of equipment requiring maintenance should be considered to eliminate the requirement for the operator to enter the danger zone.

Isolation Separate the operator from the hazard by means of passive fall protection. A plant screen, barrier or guardrail will effectively prevent a fall whilst maintenance is being undertaken.

October 2016 - Edition 7

Engineering Manage the risk using an engineered control. Work undertaken using fall arrest systems requires operator training but it will prevent a fall from occurring when used correctly.

Administration Control the risk using procedure. Control the environment using signage, demarcation line marking and operational instructions.

It is important to note that the level of Hierarchy of Control is equivalent to the risk of injury, as a result of operator incompetence.

A lesser control measure requires greater skill of the operator and is therefore the least preferred.

Training

Young workers in the workplace According to WorkSafe Victoria, young workers are most vulnerable to workplace injuries. They also released new statistics which showed that 49 young people aged 15 – 24 were injured every week from April 2015 to March 2016 and said that employers need to prioritise safety discussions and training to reduce the risks.

Overall, 2554 injury claims were made by young workers in Victoria.

The statistics revealed that young workers in retail, manufacturing, construction and hospitality suffered the most injuries. The most common cause of the injuries was poor manual handling, while hand, finger and back injuries were the most common injury types.

It is vital for employers to provide adequate training, support and information for young workers. Injuries such as pulled muscles, twisted

knees and bad backs caused by poor manual handling and repetitive lifting and stacking are common injuries among young people and the effects can last a lifetime.

Employers must take time to train their young workers of the potential risks involved in completing certain tasks, and how to control or eliminate those risks. Educating young workers how to properly operate machinery and equipment is also vital in reducing any possible injury.

The message to every employer is that it is your responsibility to ensure you are providing appropriate training and guidance to young workers. If not sure what training should be given or needed please contact one of the training team at MGA Independent Retailers on 1800 888 479, option 2.

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Trainee of the Year Award Josiah Clayton The Trainee of the Year Award is presented to an individual who has undertaken a traineeship and has been outstanding in all aspects of their training. It with great pleasure that we here at MGA Independent Retailers announce that one of our trainees has achieved the great honour of winning the state category for South Australia.

Josiah, or Joe as he is called, was inspired by his first manger to make a career in the retail sector. Joe one day hopes to start his own business that helps out troubled teenage boys growing up without a father.

In the past Joe has been bestowed with other awards such as the 2015 Achiever of the Year in South Australia, given for high excellence in his area of work.

In April 2016 the department he manages won Best Fresh Produce for South Australia.

Now with this accolade for Trainee of the Year Award he is moving on to represent South Australia in the National Awards being hosted in Darwin in November this year. What a great achievement for such a young man that shows such enthusiasm for his job.

It was always a pleasure to assist and guide a person with such passion for the retail sector during the course of his training.

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. *Log in to our website with your member login to order you courses at these member prices.

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 Food Safety Supervisors Refresher Course – NSW

Duration: 2-4 hours Member Price: $100 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

October 2016 - Edition 7

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.

WA

RSA

SA

RSA

QLD

RSA

NT

RSA

RSA – WA, QLD, SA, NT

Duration: 3 hours Member Price: $45

ACT

RSA – ACT

ACT

RSA Refresher – ACT

VIC

RSA Face to Face – VIC

RSA RSA RSA

Duration: 3-4 hours Member Price: $45

(must be completed every 3 years) Duration: 1-2 hours Member Price: $30

Duration: 4 hours Member Price: $49

See our website for regional RSA courses and prices.

RESPONSIBLE SERVICE OF ALCOHOL COURSES Do you have 10 or more staff to train in RSA? Contact us to see if we can organise an instore course. *Available in MELB Metro and surrounds.

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.

There is a large selection to choose from:

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

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 Workplace Violence, Bullying & Harassment

Duration: 30 minutes Member Price: $25 Hazard Identification & Risk Management

Duration: 40 minutes Member Price: $40

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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