IR september 2017 by MGA Independent Businesses Australia

ISSUE 6 | SEPTEMBER 2017

YOUR INDUSTRY NEWS PROVIDED BY MGA INDEPENDENT RETAILERS

WINS FOR ALL MGA MEMBERS! EFFECTS TEST PASSES THE SENATE SUNDAY PENALTY RATES REDUCED COMPANY TAX REDUCED QLD TRADING HOURS PASSED BY PARLIAMENT 33

2017

Annual Report

www.mga.asn.au

2017 ANNUAL REPORT INSIDE!

National Support Office

•

1800 888 479

•

www.mga.asn.au

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

MGA CHIEF EXECUTIVE OFFICER Jos de Bruin 03 9824 4111 E: jos.debruin@mga.asn.au

CORPORATE PARTNERSHIP AND MEDIA SALES Steve Sellars 0407 399 240 E: steve.sellars@mga.asn.au

EDITORIAL AND PRODUCTION

E: courtenay.hirst@mga.asn.au

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

CONTENTS 5 CEO Welcome

INDUSTRY NEWS 7 MGA absorbs Timber Merchants Association (TMA) 8 New Metcash CEO 9 New QLD trading hours passed by Parliament 11 Combined strength leads to a powerful outcome – Effects Test section 46 13 Strengthened competition law to benefit Aussie small businesses and consumers 14 You can’t control the playground… 15 Hamilton Island welcomes its first supermarket

LEGAL AND HR 16 Apprenticeship basics 16 Sunday Penalty Rates – the challenge in the Federal Court 17 Managing sick employees 17 Social media and your employees 19 Can you legally reduce a permanent employee’s hours?

LIQUOR NEWS 21 ALM signs on Star Hotel and Liquor Group 21 Exchange for Change appoints new CEO 25 NSW Container Deposit Scheme update 26 Accolade Wines has announced that Chris Flaherty has been appointed to the role of General Manager, Australia, New Zealand and the Pacific

27 Around the World

TRAINING 29 PCBU obligation to train staff 29 Employment law seminars 29 Identifying training requirements 32 MGA Industry Training Course Guide

ANNUAL REPORT 33 2017 Annual Report

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MGA CORPORATE PARTNERS DIAMOND

British American Tobacco Australia PLATINUM

GOLD

SILVER

BRONZE

ASSOCIATE

WAREHOUSE AND BRAND PARTNERS

tasmanian independent retailers

CEO REPORT

CEO WELCOME Welcome to the Annual Report edition of MGA’s Independent Retailer magazine. The last financial year can only be described as another year full of challenges for our members. Sales and particularly profits have been difficult to come by and the battle to win the consumer continues to intensify. WA and SA are the latest states to meet the new ALDI competition in an already saturated market in each state for supermarkets. Liberalisation of trading hours have had debilitating effects on the sales of our Queensland members and continue to be flexed in SA an WA. The most impactful impediment that has become a hand brake on all members business is the sharply rising cost of electricity. Inadequate supply and increasing demands, coupled with both sides of government lacking a strong energy policy have led to debilitating and unsustainable electricity price increases, rendering many members with unviable businesses. If both sides of Federal Government do nothing then this trend will continue resulting in a sharp rise in unemployment. State Governments are also to blame by relying far too quickly upon renewables and charging electricity users renewable energy target levies. Cheaper electricity can only be forthcoming if there is adequate supply along with healthy competition. Energy companies will only invest if

there is certainty and there is a strong government energy policy, therefore it is paramount that both sides of government embrace the recently released Finkel Energy Report and its recommendations. The good news however, is that the work of so many people in our industry continues to be focused, committed and dedicated. This year has delivered quite a few amazing results including at a Federal level, the passing of the Effects Test legislation for inclusion into section 46 of the Competition and Consumer Act – Misuse of Market Power, the reduction in the company tax rate from 30% to 27% for companies with a sales turnover of $50m or less and the reduction in Sunday Penalty rates from 100% to 50% to be phased in over 4 years. At a state level MGA members have had a number of positive results none more than the significant win in QLD where the QLD Government together with the LNP and the cross benchers recently voted for a 5 year moratorium for no further changes to retail trading hours in QLD. The 25% reduction in payroll tax for VIC regional businesses from 4.85% to 3.65% represents a significant saving to members that will result in more employment. Another significant result for SA members is the recent endorsement of

an independent SA liquor report by the SA government to allow independent supermarkets to stock and retail packaged liquor to better compete with the chains. Currently MGA has many state and Federal government workstreams underway including: • illicit tobacco • defending the FWC commission decision to reduce Sunday penalty rates • packaged liquor in QLD • Container Deposit Schemes in QLD, NSW, ACT and VIC • plastic bag bans in QLD and VIC and; • Christmas trading hours in WA to name a few. The year ahead is already shaping up to be another year of more change and challenges. Together, we are strong and resilient as an industry sector and together we have already built significant credibility and presence with state and federal governments and MPs, as well as bureaucrats and departments that we will continue to foster and bring members issues, challenges and opportunities to the table to seek positive outcomes. Until next edition – good selling. Jos de Bruin CEO MGA Independent Retailers

2017 INDUSTRY

BUSINESS BREAKFAST PERTH – THURSDAY 21ST SEPTEMBER

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INDUSTRY NEWS NATIONAL

MGA absorbs Timber Merchants Association (TMA) Dear MGA members, I have a very important and historical announcement to make. In keeping with the MGA Board’s objective to deliver MGA members a strong and robust industry association that provides the best value supportive “back of house” services, and after 2 years of close discussions and planning, I wish to announce that from the 1st of July 2017, the Timber Merchants Association of Victoria was absorbed by MGA. TMA currently comprises 120 small, medium and large outlets, employing more than 4000 people and generating $2b in sales. TMA members are largely Victorian with TMA having served its members for over 120 years. The TMA has very closely aligned values

and policies to that of MGA. TMA members consist of independent timber and hardware retailers, timber wholesalers, timber suppliers and businesses that “add value” to timber products. TMA’s members are no different to MGA members, they are independently owned family enterprises privately owned businesses competing against giants such as Wesfarmers – Bunnings outlets. MGA will form a MGA TMA committee of members which will identify industry priorities and will plan to rapidly grow “like minded” membership nationally. MGA TMA members will be strongly supported by MGA’s legal and HR, admin and training teams, the same as MGA’s existing members. As the membership grows, so too will membership revenue, enabling MGA to invest back into vital support services for its members.

Members please be assured, it’s business as usual for MGA. MGA will continue to focus on members needs and providing the best support service possible. There will be no drop in the service levels that you currently enjoy as the absorption of TMA includes 2 existing staff members Eric Siegers, the secretariat for TMA, who will be joining MGA initially on a full time basis and Emma Watt current Workplace Relations Advisor on a Part time basis. Please join me in welcoming the TMA and its members into the MGA organisation. United we are stronger and we achieve more for our members. Yours sincerely,

Rod Allen, MGA Board President

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INDUSTRY NEWS

New Metcash CEO Jeff Adams will succeed Ian Morrice as Metcash Group CEO, bringing more than 20 years of experience in retail and wholesale industries with Tesco PLC to the role. The accomplished executive has held a number of senior positions with Tesco PLC, including CEO of Tesco Kipa (Turkey), CEO of Tesco Lotus (Thailand), retail operations director of Fresh & Easy (US) and director of operations of Tesco Express (UK). Mr Adams has also operated as a business consultant, working with a number of organisations across the US and Europe since leaving Tesco in 2015. Announcing the appointment, Metcash Limited Chairman Rob Murray said Mr Adams has a lifelong passion for the retail industry and is ideally suited to lead Metcash’s continued focus on ensuring

September 2017 - Edition 6

the competitiveness and success of independent retailers. “Jeff’s deep international experience, including a strong track record in difficult retail market conditions, made him a standout candidate for this role,” Mr Murray said. “We are delighted to have a person of Jeff’s calibre and experience join us.” Mr Adams says independent retailing is in his family, and claims to understand the “vital role that independents play in local communities and the economy more widely”. “I am deeply passionate about the independent retail sector and am honoured to be joining a company whose core purpose is building their

success,” he said. “I look forward to using my experience to take our plans to the next level.” Mr Adams will join Metcash on September 4, 2017, subject to visa approval. He will be on a $1.8 million-a-year pay package, plus possible bonuses, for his four-year contract. Metcash says Mr Adams will undergo a comprehensive orientation of the business and work with Mr Morrice to ensure a smooth transition to the role. He will succeed Mr Morrice as Group CEO following completion of the transition in December. Mr Morrice will then act as an advisor to Mr Adams and the Metcash Board through to his planned retirement in June 2018.

INDUSTRY NEWS QUEENSLAND

New QLD trading hours passed by Parliament After many months of meetings and discussions with Minister for Industrial Relations Hon Grace Grace, the MGAQ Committee were finally able to come to an agreement to support a number of changes to the Trading Hours Amendment Bill 2017. We not only thank the Palaszczuk government but also Tim Nicholls and the LNP and independent Members of Parliament, Robbie Pyne and Billy Gordon for supporting these crucial changes. On Tuesday 22 August 2017 the following notable changes were passed by the Queensland Parliament; 1. A five-year moratorium on further trading hours’ applications to amend the allowable trading hours for non-exempt shops. a. The 21 major towns without Sunday/public holiday trading include; Mt Isa, Goondiwindi, Chinchilla, Kingaroy, Roma, Childers, Blackwater, Bowen, Ayr, Charters Towers, Proserpine, Mission Beach, Cloncurry, Weipa, Nanango, Oakey, Home Hill, Pittsworth, Blackwater, Charleville, and Longreach – these are covered by the 5 year moratorium. 2. The number of persons that may be engaged at an independent retail shop or shops at any one time is to be increased from 20 to 30, and where a number of related retail shops are operated, increased from 60 to 100 persons overall.. 3. All non-exempt shops in areas outside south-east Queensland may open including Coles & Woolworths Days

Amended Hours

Previous Hours

Monday – Friday

8.00am – 9.00pm

Saturday

8.00am – 6.00pm

8.00am – 5.00pm

Sunday

9.00am – 6.00pm

Various times

Most Public Holidays

9.00am – 6.00pm

Various times

However, regional towns that do not currently have Sunday and public holiday trading for non-exempt shops remain that way. Most major regional towns along the coast are covered by sevenday trading hours orders and already have Sunday trading. 4. The public holidays on which all non-exempt shops (eg. Coles & Woolworths) must be closed are the same in all areas of Queensland. Public Holidays

Amended

Good Friday

Closed

Various times

Anzac day

Closed

Various times

Labour day

Closed

Various times

Christmas day

Closed

Various times

Easter Sunday

Open

Various times

5. Gold Coast Coastal Tourist Area, Pacific Fair Shopping Centre, Port Douglas, Great Barrier Reef Wonderland Tourist Complex) non-exempt shops may open: Days

Amended Hours

Previous Hours

Monday to Friday

6.00am – 10.00pm

Various times

Saturday

7.00am – 10.00pm

Various times

Sunday

7.00am – 9.00pm

Various times

Most Public Holidays

7.00am – 9.00pm

Various times

a. The Townsville Tourist Area which will retain the arrangements under the current Act allowing it to open from 7am Monday to Friday. 6. Extended trading will apply in the period prior to Christmas Day by allowing non-exempt shops in all areas of the state to open: a. 8am – 6pm on the three Sundays prior to 18 December each year, and b. Until midnight Monday – Sunday in the period from 18 – 23 December. c. All non-exempt shops to be closed from 6.00pm on 24 December. d. The 24-hour shopping arrangements currently in place for Westfield Chermside and Garden City will continue. 7. Changes implemented from 1e December 2016 by order of the QIRC for south east Queensland remain in place as follows; Days

Amended Hours

Previous Hours

Monday – Friday

7.00am – 9.00pm

8.00am – 9.00pm

Saturday

7.00am – 9.00pm

8.00am – 5.00pm

Sunday

9.00am – 6.00pm

Most Public Holidays

9.00am – 6.00pm

8. The following shops are to be included in the list of exempt shops (meaning they can trade without any restrictions): a. Shops operating within a designated area around and during international special events (e.g. Commonwealth Games) and for local festivals. An application for special event or local festival status and the designated area will be made to the QIRC for determination; and b. Shops in the Mossman and Port Douglas Tourist area to be exempt for a trial period of five years.

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INDUSTRY NEWS

Combined strength leads to a powerful outcome – Effects Test section 46 On Tuesday 15th August the government honoured its promise to thousands of small businesses when the Senate passed the amendments to Section 46 of the Competition and Consumer Act. One of the platforms of the Federal Government at the last election was competition law reform and finally after many powerful submissions and encouragement from supporters of change, the longawaited amendments to the “effects test”, so strongly proposed by small business advocates and recommended by Professor Ian Harper and his panel, have been heard and will become law. Small businesses put their faith in the government to deliver on its election promise to make these changes and now the variations have become a reality. Jos de Bruin, the CEO of Master Grocers Australia, welcomed the announcement made by the Treasurer, the Hon Scott Morrison M.P. who said that the new

section 46,” will prevent firms with substantial market power from engaging conduct that harms competition in Australian markets.” The amendment will address any anti-competitive conduct and protect the process of competition rather than individual competitors. Mr. de Bruin continued, “During the many years of advocating for change it was pointed out on numerous occasions that large businesses had for years been able to exert their corporate strength over their smaller, weaker rivals because of the inadequacies in the law. But now the new law will level the playing field. Achieving the amendments to the legislation has been a long process, they are the culmination of many years of political lobbying and MGA welcomes the fact that the government consulted and listened to the numerous supporters of this cause, and has supported their efforts.

MGA congratulates the government and other political groups, including the Nationals, Greens and Senator Nick Xenophon who threw their relentless support behind the work of MGA, its members, its industry stakeholders and many other industry associations, because they recognised the importance of this major step forward for our economy. The new law acknowledges the power of small businesses to contribute to and sustain economic growth. They can now move forward with a greater degree of confidence in establishing new businesses, and operating and building further on their current businesses. This is truly a victory for this vital sector of our economy and a tribute to the hard work of so many people, and on behalf of small businesses all over this country we thank all those who gave their time and energy to this cause.”

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INDUSTRY NEWS NATIONAL

Strengthened competition law to benefit Aussie small businesses and consumers The Turnbull Government has legislated significant amendments to strengthen Australia’s competition law providing greater protections for small businesses and more choice for consumers by boosting innovation and opening new markets. The amendments implement a key recommendation of the Harper Competition Policy Review to strengthen section 46 of the Competition and Consumer Act 2010, also known as the misuse of market power provision. The Harper Review found the misuse of market power law was not reliably enforceable and did not effectively target and deter anti-competitive conduct. The new section 46 is robust law that will prevent firms with substantial market power engaging in conduct that harms competition in Australian markets. This is particularly important for Australia’s 3.2 million small businesses which make up more than 97 per cent of all businesses. The reformed section 46 will prohibit a corporation from engaging in conduct with the purpose, effect or likely effect of substantially lessening competition in a market in which it directly or indirectly participates. The new provision will more effectively address anti-competitive conduct, protecting the process of competition rather than individual competitors. Typically, the Labor party was left almost alone in opposing these important reforms, preferring to back big businesses and big unions over the interests of consumers and small businesses. The amendments have been subject to extensive public consultation following the release of the government’s response, the Harper Review, an exposure draft in 2016, and a Senate inquiry. Concerns raised by stakeholders have been addressed in the legislation. Further amendments to the Competition and Consumer Act 2010 to implement a range of other important reforms recommended by the Harper Review are currently before the House of Representatives. These include replacing the never-used and unworkable price-signalling provisions with a general prohibition on concerted practices with the purpose or effect of substantially lessening competition, and reforming merger clearance and authorisation processes. Both section 46 and the additional amendments will commence as soon as possible, once the additional amendments have passed the Parliament. Source: The Hon. Scott Morrison MP

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INDUSTRY NEWS

You can’t control the playground… It’s not only directors and officers of large public corporations that find themselves exposed to personal liability for breaches of their duties. Smaller, private companies are also exposed to a wide range of risks arising from acts, errors or omissions that can cause lasting damage. You need to know you’re protected against those risks. As a business owner or manager, you have a lot on your plate – sales, managing staff, marketing, maintaining customer relationships. It can be incredibly intimidating when you factor in things like company legislation, tax laws, employment laws, statutory regulations and workplace health and safety legislation on top of everything else. So what kind of risks do you need to look out for and how can you mitigate those risks? In this day and age, there’s a wide spectrum of risks that business owners and managers face. Minimising exposure to risks such as breach of duties, breach of laws and regulations, unfair dismissal or workplace bullying allegations, employee or third party fraud or expenses from tax audits should be front of mind. You can also find yourself in hot water as a result of decisions your staff make – some of which you have no control over. How – and why – to protect yourself All of these risks can cause immediate financial damage to your company, and the effects can also be felt in the long term through lengthy and costly litigation procedures. Unfortunately, you can’t control them either. What you can do, is protect yourself and your business by investing in Management Liability Insurance. This insurance cover protects against employment practices liability, directors and officer’s liability, statutory liability and more. For instance, at a local business, a 59 year old manager was dismissed due to poor performance, including alienating employees and customers, as well as a general lack of interest in his job. The dismissed employee later alleged he was dismissed due to his age after a younger employee replaced him, with comments made by senior management about “getting rid of the old guys”. The employee had received regular pay increases based on performance, and poor performance was not noted on the termination form as reason for his dismissal. The company felt they were innocent of the allegation but decided to settle out of court rather than go through the costly and lengthy process of defending themselves in court. Settlement was $250,000 for pain and suffering and legal expenses totalled more than $60,000. These amounts were paid by the insurer of the company’s management liability policy.

September 2017 - Edition 6

Things to tick off With management liability cover in place, you can rest easy knowing you and your business are protected from scenarios like this and more. You can extend your policy to also include things like internet liability, taxation investigation, cyber liability, kidnap and extortion (you never know!) or professional indemnity. Working with the right insurance broker means finding a policy that’s tailored to your business needs. You’ll also want to be sure you know who is covered under your policy. If you have subsidiary companies or are involved in joint ventures, make sure your broker is aware of those branches and goes over them with you explicitly to ensure they’re included. Different insurers have different definitions of subsidiaries and joint ventures, so it’s best to double, or even triple check. If e-commerce is a part of your business, you’ll want to make sure you’re protected against theft by third parties through credit card fraud. These policies can also include theft by employees against the company and theft by third parties against the company. Make sure to have your broker go through the crime section of your policy with you, as the coverage can vary from case to case. Finding the right cover You have a lot on your plate, and there are hundreds of insurance policies out there each tailored for a different industry or risk. It’s not something you should buy quickly online, or on a whim, but something that should be carefully thought out, with the advice of a trusted advisor who can do the hard work for you. We have a partnership with Adroit Insurance Group, who works regularly with supermarkets and liquor stores and has tailor made insurance plans. Sitting down with a broker and discussing your needs is the first step to protecting yourself.

Contact your local broker on 1300 402 756 for a FREE INSURANCE REVIEW or go to www.adroitig.com.au/mga

INDUSTRY NEWS QUEENSLAND

Hamilton Island welcomes its first supermarket Hamilton Island residents and holiday goers are set to enjoy local and fresh produce, a traditional deli with fresh seafood, independent big brands and fantastic customer service with the first ever supermarket opening on the island. In a landmark move for the island, IGA and Hamilton Island will deliver greater convenience and ease for local shoppers on holiday, and enhance the community feel and delight for customers with a range of local, fresh and independent produce. Hamilton Island CEO Glenn Bourke said, “The community is thrilled about the opening of our new IGA supermarket which will be an excellent new offering, not just for our permanent residents, but our many hotel and holiday home guests.” IGA Hamilton Island store manager Brett Rhode said, “We are delighted to bring the new look IGA store format to Hamilton Island and we’re looking forward to carrying a range of products, services and great prices to locals and holiday goers alike. We’re proud to champion the local produce the area is famed for, along with the products customers know and love.”

Each IGA is famous for something special – unique products or catering for the local residents, families and holiday makers. “We want to make sure this store delivers a competitive and tailored offer for locals and visitors. Hamilton Island IGA will boast a full fresh food offering, a deli with an array of fresh seafood, meat and an extended range of gourmet and extensive health and gluten free food range. The store will also lead the way in reducing plastic by introducing the policy of using recyclable bags and cardboard boxes instead of single use lightweight plastic bags in order to reduce its environmental footprint on the island. IGA Hamilton Island will also participate in IGA Community Chest which raises funds for local organisations and charities, including products from IGA’s new Community Co range. All of the funds raised will be invested back in the local community of Hamilton Island.

www.mga.asn.au

LEGAL AND HR

LEGAL AND HR Apprenticeship basics Hiring an apprentice can be a great investment for your business and gives you the opportunity to guide and mentor the next generation of workers. It’s also an important decision for your business and comes with responsibilities. Who is an apprentice? An apprentice is someone who combines work and study to obtain a trade qualification in their industry, for example as a butcher or baker. An apprenticeship typically takes between 1 to 4 years to complete. Anyone who’s old enough to work can be an apprentice and they don’t need a secondary school certificate or any other qualification. Apprenticeships can be either full time or part time, however cannot be done on a casual basis. An apprentice must have a formal training contract with the relevant state or territory apprenticeship authority and regularly undertake training at a Registered Training Organisation (RTO), for example a TAFE or other registered training provider. Apprentice entitlements Apprentices receive the same entitlements as other employees, such as annual leave, sick leave, public holidays, penalty rates, superannuation and breaks. These entitlements are set out in the

National Employment Standards and the General Retail Industry Award (“GRA”) or agreement that applies to your business. Apprentices usually receive special pay rates while they complete their qualification. This includes payment for all hours spent working at your business and in formal training/trade school. You can only pay apprentice wages if you have a formal training contract with your apprentice that has been registered and recognised by a state or territory training authority. Apprentice wages are set out in the GRA or agreement that applies to your business. It can vary based on the length of the apprenticeship, how much training the apprentice has completed, and if the employee is a school-based or adult apprentice.

contract, and must be paid for this time. Under the GRA, the employer must reimburse an apprentice (or you can choose to pay the RTO directly) for the cost of training fees and prescribed textbooks.

As with all employees, apprentice wages usually increase on 1 July each year and each time a milestone is reached in the apprenticeship. Once the apprenticeship is completed and signed off by the RTO, the employee will be paid the tradesperson’s pay rate.

Employers hiring apprentices may be eligible to receive financial support and incentives. For more information, you can visit the Australian Apprenticeships website at www. australianapprenticeships.gov.au.

Training An apprentice may need to attend offthe-job training as part of their training

For more information on apprentice entitlements, please contact MGA’s Legal & HR Team on 1800 888 479.

Sunday Penalty Rates – the challenge in the Federal Court The union challenge to overturn the Sunday penalty rates decision will be heard this month in the Federal Court. The decision review will commence on Tuesday September 26th for a three day hearing. The court has assembled five Federal Court judges who will listen to the argument of the

September 2017 - Edition 6

unions that the decision of the Fair Work Commission to cut Sunday penalty rates was “misconceived” or misunderstood. The unions are of the opinion that workers will be severely impacted by the decision, whereas the employers have argued that the decision will increase productivity.

LEGAL AND HR

Managing sick employees An inevitable part of running a business is that employees may suffer an illness or injury and are unable to attend work for a period of time. An employee is entitled to take as much paid sick leave as they have accumulated to get better from an injury or illness. There is no waiting period for employees to be entitled to take sick leave that has been credited to them, and it continues to accrue from year to year. Employers can ask an employee to provide evidence, such as a medical certificate, to confirm why they have been away from work at any time and to confirm that they were unfit for work. This includes even if an employee has only been off sick for 1 day. An employee who doesn't give their employer evidence when asked may not be entitled to be paid for their sick leave.

reasons, and one of those reasons is where an employee is temporarily absent from work because of illness or injury. If an employee has used all their accumulated sick leave and is on unpaid leave for more than 3 months over a 12-month period, then in certain circumstances you may be able to lawfully terminate the employee. However before an employer may take this step, they must have adequate medical evidence regarding the employee’s prognosis and prospect of return.

When sick or injured and an employee has run out of paid sick leave, they can take unpaid leave if they are unfit for work.

The normal rules for a termination still apply and the employee may dispute the termination by: 1. Making an unfair dismissal application if the reason for the dismissal is harsh, unjust or unreasonable; or 2. Making a general protections claim if the reason for the dismissal is because of the employee’s disability; or 3. Making a discrimination complaint to the Australian Human Rights Commission or relevant state body.

It is important to note that an employee cannot be terminated because they are sick. The Fair Work Act 2009 (Cth) prohibits the termination of an employee for certain

Given the significant risks involved in terminating a sick employee, please contact MGA’s Legal & HR team on 1800 888 479 before taking any action.

Social media and your employees Employers must not act hastily when terminating an employee’s employment for misconduct on social media. Recent decisions before the Fair Work Commission illustrate that what constitutes social media conduct worthy of dismissal remains uncertain. The FWC highlighted the importance of employers having a comprehensive social media policy and that employees are provided with training on that policy. This will allow employees to be aware of employer’s expectations on acceptable conduct and allow for disciplinary action in the circumstances. Employers may then be able to rely on a policy breach to support dismissal for misconduct on social media. However like all terminations, employers must have a valid reason for the termination of an employee’s employment, and give them an opportunity to respond to any reason for the termination, before the termination occurs which relates to the “capacity or conduct” of that employee. Please contact MGA’s Legal & HR team on 1800 888 479 for more information.

www.mga.asn.au

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LEGAL AND HR

Can you legally reduce a permanent employee’s hours? An employer may experience difficulties maintaining staff hours if there is a down turn in business. Many members often call MGA to ask whether they are legally entitled to reduce an employee’s hours either because some of a worker’s hours can be absorbed by others in the workplace. However, problems can arise if an employer simply decides to reduce a permanent employee’s hours without carefully considering the right course of action. It is not advisable to reduce an employee's hours from full time to part time or even change their status to casual unless they agree. However, if they do voluntarily agree which is confirmed in writing, then there is no issue.

If you have full time, part time and casual employees and you wish to reduce your workforce you should look firstly to see if the hours of work for casuals can be reduced, before reducing the hours for your permanent staff. Only after you have carefully considered this option should you address the issue with permanent staff. All full time and part time staff should already have their rosters that set out their hours of work in advance. If you need to reduce their hours you should have a meeting with the employees concerned to see if you can reach an agreement on a change of hours, or even a change of status. If you unilaterally reduce a full time or part

time employee’s ordinary hours or change their status to casual, this may constitute a breach or even a termination of the original contract of employment (whether written or verbal) and you would therefore be vulnerable to an unfair dismissal or breach of contract claim. If an employer and employee cannot agree on reduced hours of work and an employer can no longer afford to maintain the hours, then it may be necessary to consider making some staff redundant. This would be a last resort, but it is important for an employer not to simply reduce hours without proper consultation and agreement with the employee. If you have any concerns about the correct course of action then please ring MGA to discuss the issue.

www.mga.asn.au

A LWAYS P O L I S H E D NEVER DULL

Contact your Treasury Wine Estates representative on 134 893

N E W

LIQUOR NEWS

LIQUOR NEWS ALM signs on Star Hotel and Liquor Group Queensland-based Star Hotel and Liquor Group has selected Australian Liquor Marketers as its new wholesale partner, moving on from its previous deal with ILG. The agreement will see more than 40 stores, which form Star Liquor, supplied by ALM, with the new deal kicking off from 1 August 2017. ALM’s CEO, Scott Marshall, told The Shout that he was very happy to be working with Star Liquor from next week and that the deal shows that ALM is focused on helping independents to grow in all areas. “Star Liquor joining ALM will mean $85m+ of new wholesale business for our Queensland operations and further strengthen our resolve to ensure a sustainable future for independent liquor operators across the country,” Marshall said. “This is also further endorsement that ALM has the right offer to support and grow independent liquor businesses of all sizes to remain competitive for the long term”.

Shaun Landy, the General Manager of Star Liquor added: “We have spent many months negotiating the right outcome for our business and are excited that ALM can offer us a successful supply model into the future. “Star Liquor will be operating as a standalone banner group for the first time in our short history and this change will allow us to grow faster with more control of our own destiny.” ALM currently operates out of three warehouses in Queensland, one in Brisbane, one in Cairns and one in Townsville, while Star Liquor operates stores from Gold Coast up to Townsville.

Exchange for Change appoints new CEO Following the recent announcement by the NSW Government that Exchange for Change (EFC) had won the NSW Government tender to be the scheme coordinator for the state’s CDS, which will be called Return and Earn. EFC have appointed Mr Peter Bruce as its CEO, Bruce brings with him logistics, environmental and project management experience to EFC. “I am delighted to be able to take up this opportunity in what will be an exciting and

dynamic time for recycling in NSW,” said Bruce. “We want this scheme to be a success and for all stakeholders to have a voice. We will be working to the highest levels of integrity to help deliver the government’s littering targets while running a cost-effective scheme. We look forward to supporting a well-run, effective container deposit scheme for NSW. As Scheme Co-ordinator we will work closely with government to get the scheme up and running, and give

Peter Bruce the public a great incentive to recycle bottles and cans.”

www.mga.asn.au

NEW

LIQUOR NEWS NEW SOUTH WALES

NSW Container Deposit Scheme update All stock invoiced to retailers by beverage suppliers on 1 November 2017 will include the scheme cost to help establish cashflow in preparation for its implementation on 1 December. Speaking about the estimated costs for suppliers, Jeff Maguire, Exchange for Change’s (EFC) Project Director, said: “EFC, as an organisation looks forward to supporting recycling initiatives in New South Wales and what we are really looking forward to is delivering a well-run and cost-effective scheme for New South Wales. “It remains our priority as an organisation to keep the costs as low as possible for both suppliers and ultimately consumers. “We have now issued the estimated fees to beverage suppliers, we need to stress that this guidance provides information per material type, along with the pricing methodology that we have adopted to establish that pricing.” In summary, the total estimated range of fees for the first three months will start at 13.54c and go down to 10.94c for aluminium, 14.07c and go down to 11.36c for glass, and 13.78c and go down to 11.13c for PET. This includes the 10c refund for consumers, but does not include GST.

portal by 1 November and have a supplier agreement in place with Return and Earn by 1 October. While these costs are initially based on estimates and assumed recovery rates, Maguire did say that the scheme will go through a settling period over the next 12 months as the true costs are established. Based on global figures Maguire said he was anticipating an overall redemption rate of around 85 per cent. “The key factors affecting the fees are the numbers of containers returned (redemption rates), the type of material returned and the method by which they are collected – either via consumer collection points or traditional kerbside rubbish collection,” he said. For further information contact the MGA national support centre on free call 1800 888 479 or visit http://www.returnandearn.org.au/.

This costing estimate would see $3.38 added to the cost of a 24-pack of bottled beer for the first month of the scheme. This is estimated to drop to $2.84 in the third month of the scheme, although Maguire emphasised these are estimated costs which are based on assumed recovery rates per material type.

WIN

“The costs per container are calculated based on a number of variables to ensure they reflect actual redemption rates over time,” Maguire said. “It is a matter of trying to strike the balance between making sure there are enough funds to pay consumers’ 10c deposit per container and also ensuring the scheme reflects the lowest costs possible for both suppliers and consumers. “The first three months of fees are estimated, with subsequent invoicing periods to reflect actual redemption rates. As this is a new system and the database for returns needs to be established, the initial three months’ fees will be based on the past twelve months of containers produced, by market share, and an estimate of the initial return rate.” Maguire also explained that suppliers and manufacturers must also register all of their eligible containers with the EPA via the

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www.mga.asn.au

LIQUOR NEWS

Accolade Wines has announced that Chris Flaherty has been appointed to the role of General Manager, Australia, New Zealand and the Pacific Accolade Wines has announced that Chris Flaherty has been appointed to the role of General Manager, Australia, New Zealand and the Pacific. Flaherty’s most recent position was Chief Executive Officer with ASM Liquor and he has previously held the role of Managing Director Australia and New Zealand at Treasury Wine Estates as well as a number of positions at Diageo. Flaherty brings over 30 years experience to Accolade, which has seen him work in four Australian states as well as in markets throughout the Asia Pacific region.

“It is a great honour and privilege to be leading the ANZP team at Accolade Wines with its portfolio of wonderful brands, steeped in an amazing wine heritage,” Chris Flaherty said. “We are very pleased to have Chris join the senior executive team and his leadership experience coupled with a deep knowledge of the market will be a great benefit to Accolade,” said Accolade’s Executive Chairman Jim Anderson. Flaherty, who will be based in Sydney, will commence the role on 28 August and will report to Anderson.

Chris Flaherty

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September 2017 - Edition 6

LIQUOR NEWS

Around the World India – Global tourism body seeks way around booze ban The World Travel & Tourism Council (WTTC), a global forum for the industry, called for a coordinated countrywide response to the Supreme Court (SC) ban on the sale of alcohol in proximity to highways, reflecting concern that move will take a toll on the revenue of several companies with interests in India. Some members of the industry, meanwhile, threatened a strike if the matter wasn’t resolved soon. WTTC said the ban will have a significantly negative effect on hotels and restaurants in India and will curtail investment for job creation in the industry. In December, the SC had directed states and Union territories to cease granting liquor licences to outlets along national and state highways. No shops should be visible or directly accessible within 500 metres from the highways, the top court had said. In its March 31 order, the Supreme Court rejected review petitions seeking clarification on the earlier judgement, forcing a vast number of hotels, restaurants and pubs to stop serving alcohol to guests, leading to losses in sales and tax revenue. “While we acknowledge the importance of implementing policies that address the abuse of alcohol when driving, we call on the Indian government to reverse or amend the current ruling,“ said David Scowsill, chief executive officer, WTTC. “I do not believe that this ban was aimed at the travel industry. It is an unbalanced approach that will have negative consequences for the country’s economy, as business and leisure customers cancel their bookings in those

affected establishments.“ Various options are being considered to mitigate the effect of the ban, including legal challenges, redesignation of highways as district roads and increasing the motorable distance to outlets. Key industry groupings such as Federation of Hotels and Restaurant Association of India (FHRAI) and NRAI are planning to meet on April 11 in New Delhi with other tourism and travel bodies to discuss the matter. Industry associations said they may be forced to declare a strike if talks with the state governments fail. “Let the tourists be out on the roads. We are contemplating calling a nationwide bandh if our efforts to deal with the state governments fail,“ said Dilip Datwani, president of Hotel and Restaurant Association of Western India (HRAWI). The order, based on a public interest litigation filed by an NGO called Arrive Safe, is aimed at checking drunk-driving on highways but industry experts say it will do little to discourage the practice. Western industry associations met Maharashtra tourism minister Jaykumar Jitendrasinh Rawal on Thursday. The state government assured them that move would not hurt the industry. Amlani said around 30,000 restaurants and bars in India will lose their licences as a result of the ban. Other incidental losses could affect 1 million jobs in the industry, according to previous estimates.

Why did the peacock go to the liquor store? To smash $500 worth of wine and Champagne A peacock walks into a liquor store — it’s a punchline waiting to happen. The butt of the joke in this case was Rani Ghanem, the manager at Royal Oaks Liquor Store in Arcadia, California. He was forced to clean up about $500 worth of wine and Champagne after the exotic bird became trapped in his store. “This was really out of my comfort zone,” he told CBS Los Angeles. “I was kind of scared; I didn’t know what to do.” Ghanem tried to guide the peacock out of the store but it found its way to the top of the wine shelves, where it watched customers with a “bird’s eye view,” the network said. Customers filed in and out of the store as it remained there and some took pictures with it. Animal Control eventually arrived to guide the bird out of the store with a net but the peacock instead flew down to a shelf full of wine bottles knocking over a number of items in the process. The bird was eventually guided to safety.

www.mga.asn.au

Helping lower your cost of doing business eftpos is committed to helping keep Australian payments competitive and convenient. We can also help lower your cost of acceptance. To find out more email info@eftposaustralia.com.au

TRAINING

TRAINING PCBU obligation to train staff A ‘person conducting a business or undertaking’ (PCBU) is a legal term under WHS laws for individuals, businesses or organisations that are conducting business. A person who performs work for a PCBU is considered a worker. In order to address any skills or knowledge gaps that you identify, you will need to organise training for your staff. The type of training that is organised will depend on a number of factors such as number of staff requiring the training, resources required for the training, budget allowed and level of knowledge and skill within the business. You may conduct in-house training presented by yourself or another staff member. In this case you may choose to utilise Safe Work Instructions (SWIs) available from MGA Industry Training. SWIs have been developed as a resource to assist in a cost effective process to train staff in a face to face situation. The use of SWIs allows for multiple sessions in group settings to be conducted which allows staggered downtime for staff which will have less impact on the business operations. They may also be used when training a new staff member or refreshing training in WHS areas. Alternatively you may need to have a training system in place, such as, the Manage Training System (MTS) available from MGA Industry Training. This system allows the staff to complete online training on the use of equipment and different aspects of business to improve the skills and knowledge of staff. Maintaining training records is a vital part of any training undertaken. It is important to keep these records up to date. The MTS automatically records any training completed through the system where as the SWIs are paper based, having a register to complete manually. It does not matter which process you use as long as you remember that training is very important in the running of the business and retaining of staff.

Employment law seminars Essential for store owners, department managers and human resource managers. Be informed, save time and costs by attending an interactive session on employment law.

Areas Covered • Your legal rights and obligations as an employer • Knowing how to deal with employment issues • Managing a legally compliant workplace

PERTH

Date: Thursday 12th October, 2017 Time: 9.30am – 4.30pm Members price: $250 or two for $350

Identifying training requirements Training requirements are quite simply a list of all of the appropriate training which personnel need to undertake in order to meet the WHS requirements of the business, as well as, to perform their duties efficiently and effectively. A Person Conducting a Business or Undertaking (PCBU) is responsible for providing workers with information, instruction, training or supervision needed for them to work safely and without risks to their health. Training required can also be triggered by the introduction of new equipment or procedures and by any changes of legislation. In any business there will be certain training requirements different staff members need in order to: • Work safely within their role • Work safely within their workplace • Comply with organisational WHS policies and procedures • Comply with legislative requirements

www.mga.asn.au

TRAINING

NATIONAL ONLINE 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 your courses at these member prices. Call us on 1800 888 479 if you need your log in details.

Manage Training System (MTS) Manage Training System (MTS) is an easy to use training program – set up training per department, allocate courses to staff, monitor results and have complete training records for all staff. Either use included HR policies or upload your own including staff rosters!

Employment law seminars Essential for store owners, department managers and human resource managers. Be informed, save time and costs by attending an interactive session on employment law. Areas Covered • Your legal rights and obligations as an employer • Knowing how to deal with employment issues • Managing a legally compliant workplace

PERTH Date: Thursday 12th October, 2017 Time: 9.30am – 4.30pm Members price: $250 or two for $350

September 2017 - Edition 6

TRAINING

Online & face to face training MGA Industry Training offers discounted training for all members. Courses are online or can be conducted face to face at your business for 10 or more employees! Responsible Service of Alcohol, Food Safety, Employment Law, Customer Service, plus more!!!

Tobacco training This course covers information on the legal obligations for the sale and service of tobacco, non-tobacco smoking products, smoking accessories, e-cigarettes and e-cigarette accessories in each respective state/ territory. Training ensures your staff comply with Tobacco Retailing Laws â&#x20AC;&#x201C; protecting your business.

STATE BASED TRAINING Duration: 30 minutes Member price: FREE

Donâ&#x20AC;&#x2122;t forget to log in for your member discounts! Visit www.mga.asn.au to see our range of training courses!

www.mga.asn.au

2017

COURSE GUIDE

Practical.

Supportive.

Interactive. 1800 888 479 www.mga.asn.au

MGA Industry Training course guide MGA Independent Retailers is here to make your life easier! We are thrilled to announce that the training department has developed a course guide with new courses that are in line with the day to day running of your business. Training is crucial for organisational development and success, it is beneficial to both employers and employees. An employee will become more efficient and productive if he/she is trained well. Some of the benefits are improved

September 2017 - Edition 6

morale, less accidents, less supervision required and increased productivity.

the employee satisfaction and retain their job.

Training is particularly important for new employees. When a business invests in the training and development of their employees it tends to generally give

To download your copy of the 2017 course guide, go to http://mga.asn.au/ training or call 1800 888 479 if you would like one sent out.

2017

Annual Report

PRESIDENT’S

REPORT MGA’s Board of Directors have had a very busy year identifying members’ business needs and many matters of concern that affect the viability and sustainability of their businesses. First and foremost, I wish to thank MGA’s dedicated and committed Board of Directors for the enormous amount of time, enthusiasm and energy they put into the running of MGA. On behalf of MGA’s Board, staff and members I wish to acknowledge that our NSW / ACT Director, Andrew Bray, who has served as MGA Director for almost 9 years, has tendered his resignation. Andrew has been a successful multiple store owner and operator in country NSW and Sydney for close to 20 years. Andrew and Suzanne decided to sell their last remaining store located in Castlecrag, Sydney in May 2017. This being the case, Andrew felt it was time to step back from the industry he has embraced and cherished for so many years. Andrew’s positive energy and enthusiasm, business acumen, knowledge and outstanding experience and capability will be missed. Thank you Andrew and Suzanne Bray for your dedication and commitment. Members can be assured that under the stewardship of this Board of Directors, and the strong MGA management team and staff we have working for our industry, that MGA is a viable and strong employer industry association with a clear direction that is well prepared for any future opportunities and challenges that may face MGA members. MGA membership remains stable around Australia with modest membership growth coming from a number of new greenfield developments. Many members have invested significantly back into their businesses. This is a great sign of confidence and certainty that out industry sector is able to more than compete with the chains to win over consumers with our customer service and unique local product ranging. A challenging competitive retail environment continues to be the norm and is as intense as ever, particularly in SA and WA where ALDI have begun to roll out their stores in many key locations around Adelaide and Perth, as well as regionally. We applaud our SA and WA members, most of whom have put investment strategies in place to refurbish, modernise and increase their customer offer, with a view of providing customers with a more improved customer and shopping experience – something the chains cannot do like the independents. MGA 2017 Annual Report

By far the biggest issue risking the viability of members’ businesses is the enormous escalation of energy prices. This cost alone is now, for many members, the 3rd highest expense to conduct business and its only looking to get worse. As we all know our margins are paper thin, and we can ill afford dramatically rising energy costs if our stores are to remain viable. MGA has been strongly advocating for immediate action to help reduce the energy cost burdens with federal politicians and the ACCC. State and Federal Governments and bureaucrats also continue to challenge our sector with additional regulations and laws that create a plethora of red tape restrictions and cost burdens for our members. Some examples include; liberalisation of trading hours, tobacco regulations, takeaway food labelling; liquor regulations, Workplace Health and Safety matters, workplace relations and employment law issues and so the list goes on. MGA is dedicated to minimising these burdens facing members. On a brighter note MGA has achieved a number of significant wins for members too. These wins could not have been possible without the collaboration of members, industry stakeholders and other industry associations. These include, the reduction in company tax rates for businesses with sales of $50m and under, the reduction of Sunday penalty rates from 100% to 50%, the ongoing ACCC enforceable undertaking by the 2 major chains that restricts shopper dockets to 4 cents per litre, the strengthening of competition law by introducing an effects test into section 46 of the Competition and Consumer Act – misuse of market power and the constant engagement for action with governments, concerning the availability of illicit and illegal tobacco. MGA’s support services continue to improve, with members constantly letting me know how pleased they are to be able to freely call their industry association to avail themselves of first class legal and HR support, cutting edge compliance and professional development training courses and advice concerning energy efficiency strategies, all for a very reasonable membership fee. MGA’s higher purpose is to “make life easier” for members in everything we do. This is a way of life at MGA and is incorporated into everything that is done for members including all forms of communication, website navigation, up to date business intelligence and

Jos de Bruin. He continues to leave no stone unturned in his determined efforts to challenge the increased costs or regulatory burdens being placed upon us. He is the tower of strength & the driving force behind the MGA initiatives that make your MGA the best industry association & I urge all members to use the many services on offer which will definitely “make your life easier”.

information, online training courses and master classes in employment law. These services are provided every day by the passionate & dedicated MGA team and I wish to acknowledge their continued efforts to “make life easier” for all us retailers. MGA has a very exciting year ahead with further member support services planned for improvement and easier member accessibility; including a new member focused website and more effective communications, content and method.

On behalf of us all of at MGA we wish to sincerely thank all our members for supporting your industry association. We look forward to continuing to be of service to you and your business! Rodney Allen,

After 2 years of discussions and planning, the Timber Merchants Association (more members), was absorbed by MGA from the 1st July 2017, more information will follow in the Annual Report next year. Nobody is more passionate about our industry than our CEO

President MGA Independent Retailers

MGA Board of Directors MGA’s Board of Directors has again worked hard to keep up with the many state and national matters and issues that effect MGA members on a day to day basis. Directors have been active in developing policies and addressing and allocating MGA resources to help meet the needs of members.

Andrew Bray, who has been a dedicated and committed Director for 7 years resigned in May 2017 after he sold his supermarket located in Castlecrag, Sydney to another MGA member. We wish Andrew and his family well for the future and thank him sincerely for his leadership and guidance as a MGA Board member.

PRESIDENT Rod Allen

COMPANY SECRETARY Phil Ibbotson

Mick Daly

Debbie Smith

Victoria

Queensland

Andrew Bray New South Wales / ACT

Steve Miller Victoria

Gino Divitini Western Australia

Chris dos Santos

Grant Hinchcliffe

South Australia

Tasmania

MGA 2017 Annual Report

CEO’S

REPORT MGA has again provided members with another outstanding year of support and service. MGA’s higher purpose is to “make life easier” for members and whilst doing so we work very hard and enthusiastically to seek ways of saving members money in their businesses.

his legal career with a private law firm. We thank David for his dedication and commitment. In turn, we warmly welcomed employment law lawyer, Belinda Imbriano to the team, and she has quickly endeared herself to our members around Australia.

This outstanding work for members could not take place without the dedication and commitment of MGA’s management and staff. MGA is truly lucky to have staff who care about the work they do and pride themselves in providing benefits and satisfying outcomes for members.

Aside from the day to day activities of immediately assisting members with IR matters, this team spends hours and does an amazing job in developing and producing a wide range of state and federal submissions in response to Senate, Productivity, and government department inquiries and hearings. These include; national wage reviews, annual workplace relations survey of members, reducing Sunday penalty rates, deregulation of trading hours matters and many more.

Similar to many of our members, MGA’s business environment is constantly changing. Understanding and dealing proactively with change is essential for any business to survive and prosper. MGA is no different and seeks to constantly embrace change to provide members with a relevant and seamless support service. From January 2017, MGA’s focus became “the year of engagement”. Engagement and communication with members and industry stakeholders that is targeted frequent, timely, professional and relevant with the correct people – not a shot gun approach. To that end MGA’s Finance and Administration team led by Desma Harrod has experienced and delivered much change within MGA to achieve the goal of effective engagement with members. MGA’s co-ordinator for communications, Courtenay Hirst has reviewed and improved all forms of external member communication. MGA’s website is undergoing significant change for better navigation outcomes. The Independent Retailer magazine has had an appearance and content lift whilst e-Alerts and Checkout newsletters have been modernised. A relationship matrix, which is a tool to identify the correct people in industry to receive MGA communications has been developed – all in the name of MGA delivering better engagement with members. MGA’s Dale Clark has also been very busy making sure members details are correct in our data base, again assisting MGA to better communicate with members. We welcome Brian Boyle to the Finance and Administration team in the capacity of book keeper. The Legal and HR team led by Marie Brown has again provided outstanding support to members throughout the year. This year we saw one of our more experienced employment law lawyers, David Sztrajt, leave MGA to further

MGA 2017 Annual Report

MGA Membership Services led by Steve Sellars is another important component of MGA’s value proposition for members. Savings for insurance cover, energy, telephone services and other services offer significant savings for members and their staff. Corporate member support is an extremely important component of MGA’s day to day role to support members. Not only do MGA’s 34 corporate members provide MGA with valuable insights and engagement with members, but their partnership enables MGA to better resource itself, so as to strongly represent members best interests at State and Federal government levels. David Grey-Smith leads MGA’s training program, and together with the help of Christine Potter and Finance and Administration Manager Desma Harrod, he has developed a compelling Training Course Guide comprising online and face to face, compliance and professional development training courses. Training has become a difficult retail industry issue with federal and state government funding being withdrawn, and only having made available upon satisfying a number of unrealistic hurdles. MGA was therefore compelled to reinvent its training and compliance management offer, to satisfy member needs and this took over 12 months to complete. MGA now has a unique and affordable training advantage for members.

MGA’s national Liquor Committee led by George Kovits has been very active in pursuing a myriad of matters and issues affecting members packaged liquor business. With more than 1000 members nationally having a packaged liquor license, the MGA Liquor Committee has an important role to play in working with relevant state governments and bureaucrats to minimise the risk of any regulatory and red tape impacts on members’ businesses. The MGA Liquor Committee is to be commended for the high level of engagement it has with our industry, industry stakeholders and state governments. We thank the MGA Liquor Committee for their valuable time, enthusiasm and insights.

identified as relevant and vital to MGA delivering members the best possible support and service. Some of these initiatives include; improved communication tools such as a MGA smart phone app, a dynamic website, stronger and more modern branding, an up to date industry relationship matrix and the newly developed Training Course Guide.

In late 2016 the Australian Hairdressing Council (AHC) appointed MGA as its legal and HR provider to support its 400 hairdresser owner operators on the Eastern seaboard.

I wish to conclude by sincerely thanking MGA members for their continued support. It is an absolute pleasure that we work on behalf of all members, who comprise family enterprises and privately owned businesses from around Australia.

After 2 years of discussions and planning MGA and the Timber Merchants Association (TMA) (VIC) agreed to come together, with TMA being absorbed by MGA on 1 July 2017 bringing with it 120 independent timber and hardware outlets. Throughout the year the MGA team has met and worked through its 2020 strategic imperatives, discussing strategic opportunities and actioning initiatives that have been

During the next financial year MGA’s team will continue to build on the 2020 MGA business strategy, including a focus on further improving MGA’s high performing culture, ongoing training of its staff and developing a succession plan for the future.

Jos de Bruin

CEO MGA Independent Retailers

2016 – 2017 highlights Competition law reform – Section 46 – misuse market power – inclusion of effects test

Illicit & illegal tobacco – strong advocacy to government to eradicate

MGA’s Employment Law Master Classes were welcomed and well received by members.

Company tax reduced from 30% to 27% for companies with $50 million or less in sales

MGA’s focus to deliver the best support service to members and the industry is encapsulated in the theme “the Year of Engagement”

Development of MGA’s online and face to face training courses couple with the launch of MGA’s inaugural Training Course Guide

Successful reduction of Sunday penalty rates: 100% – 50% National wage reviews Enforceable undertaking continues – capping shopper dockets to 4c / litre

After a financially challenging few years and prudent management of operating costs, MGA is able to report that its financial sustainability and stability is stronger than ever and this year has delivered a modest profit.

E-cigarettes – E-vapourisers – submission lodged to support an alternative to tobacco products

MGA 2017 Annual Report

ANNUAL REPORT

FINANCIAL YEAR 2017 MGA’s Higher Purpose

A MGA team dedicated to caring for and supporting its members.

Objective

Mission

Vision

To be a highly respected national industry organisation led by an inspired and aligned high performing team.

To deliver support services that enhances members’ business health and prosperity.

A robust, competitive and profitable independent retailer and business sector.

MGA values

MGA’s workplace

• • • • • •

A workplace that has an enjoyable and productive culture. A team oriented workplace that values staff work performance and provides them with challenges and opportunities to grow personally and professionally.

Consult when decisions affect others Integrity in everything we do Respect for one another Communicate open and honestly Leadership take ownership Embrace change as a healthy part of growth

Overview for financial year 16/17 MGA is pleased to report a net ordinary FY2017 income result of $66,704 versus a loss of $142,032 last year and a net income (profit) of $240,000 versus a net loss last year of $635,219. This is an outstanding result and allows MGA to further improve its support and service for members. Whilst MGA as an organisation is “not for profit” it is also “not for loss.” The poor financial outcome reported for FY2016 was largely overshadowed by 2 main factors; the ‘writing down” of the Compliance Management System (CMS) from the balance sheet and the recording of the Fair

MGA 2017 Annual Report

Value of MGA’s share portfolio which as at 30th June 2016, was valued below the cost price – in other words MGA was required to report a significant paper loss. MGA’s Board is to be congratulated for making a very tough decision to write down the CMS asset in one year rather than over a period of 3 years. Had this decision not been made then this would only have continued to reflect a poor trading result in ensuing years. The full financial report is available on www.mga.asn.au.

8 reasons to be a member

WE KNOW THE INDUSTRY – MGA has been an employer organisation for the independent grocery and liquor industry since 1898 – we have over 100 years of experience! Registered with FWC and ASIC.

WE ARE YOUR VOICE – MGA represents your views, fighting for our members & industry sustainability at Federal, State and local levels. See our work on Sunday penalty rates, national wage reviews, shopper dockets, competition law reform, trading hours, packaged liquor & energy costs at www.mga.asn.au!

FREE UNLIMITED LEGAL ADVICE – on all employment law and HR matters, Workplace Health and Safety and consumer laws – SAVING YOU $$ and giving you peace of mind!

SUPPORT WITH YOUR BUSINESS – Free access to policies and templates to help you run your business – letting you focus on what you need to focus on! As a member, access our members website portal for wage rates, public holidays and more!

INDUSTRY TRAINING – Food safety, RSA, customer service, tobacco, leadership and much, much more. Industry specific, member discounts, bulk buys – talk to the experts in grocery and liquor retail industry training. Join our face to face employment law master classes or food safety training at member rates.

EXCLUSIVE DEALS – Member only special deals on big ticket items such as electricity and insurance – check them out at www.mga.asn.au!

STAY INFORMED – With our fortnightly checkout newsletter – we keep you up to date with the latest employment law news, or e-alerts on the latest industry news and events. Alternatively – check out our Independent Retailer magazine that has all the latest news!

COMMUNITY – An opportunity to network at our Industry business breakfasts, lunches, golf days and GALA Ball. Join in our industry events that help those in need. MGA has a long history of assisting the Reach Foundation!

OUR SERVICES Legal and HR Have a problem with wages or employees and don’t know where to turn? Don’t get caught... seek advice first. Call us – 7 days per week.

Training MGA can provide accredited training in the areas that matter to you. Speak to the retailer training specialist.

Advocacy MGA tirelessly lobbies on behalf of the independent retail sector – what affects you, affects us! Visit our website to see the latest news and submissions.

Member Benefits From electricity to insurance, mobiles phone plans or banking – MGA gets the best deals for our members... Try us!

Community Diverse opportunities to join your industry colleagues, at a range of networking & informative events hosted by the MGA, including industry breakfasts, lunches, golf days and the Gala Ball.

www.mga.asn.au Free call: 1800 888 479

MGA 2017 Annual Report

INDUSTRY

LANDSCAPE Member engagement MGA members around Australia continue to rely upon the strong support service that MGA provides. For the price of an all-inclusive membership fee, members can avail themselves of MGA’s highly skilled and capable team for advice and support pertaining to many “back of house” matters whether they be legal and HR, training or local advocacy matters.

18 466

459

493 45

272

760

TOTAL

MEMBERS

2596

Industry Stakeholders SUPERMARKETS – Farmer Jacks (WA), Foodland (SA), FoodWorks, Friendly Grocers, IGA, SPAR LIQUOR – Bottlemart, Cellarbrations, Duncans, IBA, Local Liquor, The Bottle O

MGA 2017 Annual Report

HARDWARE – Mitre10 WHOLESALERS – Australian Liquor Marketers, Metcash and SPAR

41 Corporate Partners MGA corporate partners continue to strongly support the efforts of MGA to strengthen the resilience and sustainability of MGA’s members – independent retailers around Australia. Corporate partners are able to more easily engage and build relationships with members through a

DIAMOND

variety of advertising and promotion mediums and industry events. Many corporate partners also enable MGA to be able to provide significant member benefits that will save members money.

PLATINUM

British American Tobacco Australia

GOLD

SILVER

BRONZE

Number of Contacts (July 2016 to June 2017)

Number of Hours (July 2016 to June 2017)

ASSOCIATE

Number of Hours Number Hours: (July 2016 to Juneof 2017)

July 2016 – June 2017

Number of Contacts Number Contacts: (July 2016 to Juneof 2017)

July 2016 – June 2017

54.79% - Industry Representation

62.69% - Legal and HR

39.57% - Legal and HR

24.90% - Industry Representation

3.30% - Administration

8.83% - Administration

2.17% - Training

3.29% - Training

0.17% - Membership Services

0.30% - Membership Services

Total: 4380

Total: 6025

54.79% - Industry Representation

62.69% - Legal and HR

39.57% - Legal and HR

24.90% - Industry Representation

3.30% - Administration

8.83% - Administration

2.17% - Training

3.29% - Training

0.17% - Membership Services

0.30% - Membership Services

MGA 2017 Annual Report

LEGAL AND HR

SERVICES MGA’s legal and HR team continue to please and delight members with their first class employment law and HR service and support. Looking after members’ everyday needs, is the cornerstone of why MGA exists. MGA helps to “make life easier” for its members. Many workplace relations and employment law matters have been addressed on behalf of members and taken considerable time to manage over the past 12 months.

The legal and HR team have addressed many state and federal government issues and opportunities by way of representation, surveys or submissions. Some of these include; National Wage Review, Productivity Commission Inquiries, Senate Committee Inquiries, Fair Work Commission liaison and Queensland Trading Hours matters

Staffing in MGA legal team Members continue to seek help from MGA’s legal and HR team for anything from a wage rate enquiry to a major unfair dismissal issue. Members often make comment regarding the ease with which they are able to speak with a qualified employment law lawyer and the immediate support they then receive. One day employment law master classes to assist store owners, managers and department managers to handle employee workplace matters with care were conducted in Perth and Melbourne. These seminars were deemed by members as a tremendous success and as such will be rolled out to other states. Members valued learning about their employment law obligations and how to best manage employees in a shared learning environment and welcomed the “tools” of knowledge to help them to perform their roles in store more effectively.

Early this year David Szrtajt, a long serving, competent and well known MGA employment law lawyer left MGA to take up a position with a private firm. We thank David for all the wonderful work he did with and for members and wish him well. MGA welcomed Belinda Imbriano to the team. Belinda who has already endeared herself to many MGA members, worked with the Fair Work Commission as an employment law lawyer prior to joining MGA.

Sunday penalty rates MGA together with other industry associations and retailers, unified by coming together to apply for a reduction in Sunday penalty rates from 100% to 50% in the Fair Work Commission (FWC). MGA’s members made a $90,000 contribution toward this case which cost in excess of $1.4m to conduct. Stuart Wood QC and his barristers were engaged to act on behalf of MGA and all other unified stakeholders including the ARA. The FWC decision to reduce Sunday penalty rates was officially handed down by Justice Iain Ross on 23rd February 2017. This was an incredible and historic result as a consequence of the very hard work and financial resources MGA’s team and other industry organisations committed to achieve this result. After much industry discussion and anticipation the FWC directed the Sunday penalty rates reduction be phased in over a 4 year period effective from 1 July 2017. This will bring much needed wage cost relief to our members businesses and will encourage employment growth within our sector. Full time and Part time employees 1 July 2017 200 % – 195 % 1 July 2018 195 % – 180 % 1 July 2019 180 % – 165 % 1 July 2020 165 % – 150 %

MGA 2017 Annual Report

Casual employees (inclusive of casual loading) 1 July 2017 200 % – 195 % 1 July 2018 195 % – 185 % 1 July 2019 185 % – 175 % 1 July 2020 175 % – 150%

43 Public holiday rates changes to the GRA. The FWC has approved the implementation of the new public holiday payments. The rate for permanent employees will be 225% and the casual rate will remain at 250% but the calculation will be based on the base rate and not on the casual rate. These rates will be effective as from the 1 July 2017.

SDA seeks Saturday penalties increases – At the time of writing MGA reports there is an application from the SDA before the FWC to increase the combined penalty and loading for casual employees that work on weekday evenings, and on Saturdays. They are seeking an increase from 125% to 150% on weekday evenings and increase from 135% to 150% on Saturdays. The matter has been referred to the Penalty Rates Full Bench for consideration and the SDA will lodge submissions stating the reasons for their claim. If this application should succeed this will have devastating financial impact on MGA members, as Saturday wages will escalate, causing unemployment and operational stress on already overburdened business operators.

Annual Wage Review MGA researched and surveyed its members, made a submission to the Fair Work Commission (FWC) in respect of the annual review of award wages. After careful consideration of the survey results including MGA’s members financial burdens, MGA made a recommendation of no more than a 1.2% increase. It is unfortunate the FWC announced a 3.3% increase, placing enormous stress upon the viability and sustainability of members businesses.

• •

Queensland – deregulation of trading hours MGA has been very active and continues to vigorously oppose applications made to the QIRC by the NRA to deregulate / liberalise trading hours in QLD. The MGAQ Committee policy is to oppose all applications. Hearings of particular note include SE Queensland, Pittsworth, Stanthorpe, Warwick and before and during the Christmas period. This activity to oppose applications is very costly and resource hungry.

Other matters that are being addressed include; •

•

Assisting WA members with termination of the Independent Supermarkets Agreement 2002 Assist members with “cashing out” of annual leave

Casuals become permanent after 12 months of employment – MGA opposed casual conversion to permanent status in the GRA but the FWC determined this will proceed from 1 July 2017 Review of the conciliatory process – our members (employers) paying go away monies

Number of hours by topic:

Number of contacts by topic:

Legal and HR Services Count of hours by topic (1 July 2016 to 30 June 2017)

Legal and HR Services -

July 2016 – June 2017

Count of– contacts by topic July 2016 June 2017 (1 July 2016 to 30 June 2017)

Agreements Bullying Change of Details Closed store Employee Issues FTF Training General Invoice Leases Liquor Litigation Membership Existing New Membership Policies Public Holidays QLD Trading Hours Submissions Transmission of business Wage Claims Wages and Conditions Workcover OH&S

Agreements Bullying Change of Details Closed Store Employee Issues FTF Training General Invoice Leases Liquor Litigation Membership Existing New Membership Policies Public Holidays Qld Trading Hours Submissions Transmission of business Wage Claims Wages and Conditions Workcover OH&S 0

100

200

300

Total: 1734

400

500

600

500

1000

1500

Total: 3777 MGA 2017 Annual Report

2000

COMPLIANCE AND

TRAINING MGA training is a very important key industry function. The industry compliance and professional development training environment these past 12 months has been difficult and challenging. With the tightening of state and federal government training funding and the higher hurdles put before members before they could become eligible for industry training has meant that MGA has discontinued, offering Certificate 3 and 4 Retail Training. Our members are quoted as saying, “It’s just not worth the time and effort”. Training fund (RTO) compliance obligations have also become onerous and costly to manage. Late in 2016 it was decided to embark upon a new and innovative approach to industry training – MGA had to think outside the square and provide members with training solutions that matched their everyday needs. MGA developed, remodelled and produced a suite of online and face to face training courses to better suit members’ needs. In addition, it became evident that members had a real need for their workers to be exposed to Safe Work Instructions in order to foster a safe work place. As a result, a comprehensive suite of Safe Work Instructions for various supermarket and liquor store departments has been developed and offered to members in bundles. Many MGA members who were former users of the Compliance Management System also made requests of MGA to provide a similar simple system with which to better manage and keep track of staff training . This was produced and named the “Management Training System”. The entire newly developed MGA training offer was brought together and published in a one stop Training Course Guide that will give members a complete overview of the MGA training courses and seminars available.

MASTER CLASS IN EMPLOYMENT LAW

This financial year we have seen a turn around in MGA training performance and we look forward to a very strong year of members uptake and usage growth ahead. MGA continuously encourages members to focus on staff training to maximize capability and performance in the workplace. Many members have indicated their reluctance to invest in their staff in the form of training. This is a mind set MGA is endeavouring to shift to better cope with competition, foster business growth and to promote succession planning.

What if we train them and they leave? What if we don’t and they stay? MGA 2017 Annual Report

1800 888 479 www.mga.asn.au

INDUSTRY REPRESENTATION

FEDERAL

On the 2nd of July 2016 there was a federal election with the Prime Minister Malcolm Turnbull and his Government returned with a lesser majority and a Senate comprising many independents holding the balance of power – the new government must work very hard to promote and deliver legislation through the Senate, particularly with the Labor Party blocking most legislation including company tax reductions for small businesses and competition law reform.

The most critical aspect of MGA’s submission was the recommendation to drop “mandatory factors” from the draft legislation, as these “factors “would provide insurmountable hurdles for the ACCC to prosecute the misuse of market power breaches by large companies.

Draft competition legislation released- sec 46

After the election, the Nationals member for Wagga, Hon Michael McCormack replaced Small Business Minister and Assistant Treasurer, Kelly O’Dwyer as the new Federal Minister for Small Business. This has become a junior minister role, as this “all important” ministerial portfolio now sits outside the Cabinet. MGA continues to build its credibility and profile with most Federal Ministers and Shadow Ministers, by discussing and promoting the needs of members, whether it be rising energy costs, competition law reform or illicit tobacco.

The Federal Government released the draft legislation to amend Australia’s competition laws. The proposed new laws reflected all the changes to competition laws – sec 46 – misuse of market power, as proposed by the Harper Review. For MGA members this means that the introduction of the effects test will strengthen sec 46 of the CCA which would result in fairer competition laws for independent retailers. However, MGA’s submission opposed the introduction of mandatory factors in the legislation and the Committee assessing the bill has recommended that they be removed from the proposed legislation.

Proposed competition law changes

Mandatory factors dropped from the effects test

As a follow up to Prime Minister Turnbull announcing in March 2016, that the “effects test” would be fully supported as a mechanism for competition law reform in section 46 – of the CCA, as recommended by the Harper Review, Treasurer Scott Morrison announced there would be an Exposure Draft – Competition and Consumer Amendment (Competition Policy Review) Bill 2016 for comment.

Treasurer Scott Morrison announced an amendment to the effects test legislation that will remove the “mandatory factors”. A court would have to consider when deciding whether a business has misused its market power. The amendments to the Competition and Consumer Act, seek to change competition law to ensure businesses cannot act with the “purpose, effect or likely effect of lessening competition”, regardless of whether they intended that outcome from their actions. The removal of mandatory factors will alleviate some of the hurdles the courts may have in finding a business has misused its market power.

MGA was active participating in many consultation meetings and lodging submissions concerning the Treasurer’s Exposure Draft and the ACCC guidelines for Section 46 framework.

Prime Minister Malcolm Turnbull speaking at the Federal Budget dinner in May 2017

Parliament House Canberra

MGA 2017 Annual Report

46 Other matters • • • • • •

• • • •

• • •

Company Tax reduction – from 30% to 27.5% – $50m threshold FY 2018 Federal Budget input – consultation and submission with suggestions for support – Small Business Minister Red tape and cost burdens associated with sale of tobacco products – Federal Senate Committee Inquiry Abolish Road Safety Remuneration Tribunal Access to justice for small business – MGA has begun the conversation with Labor, Greens and Independents to support access to justice with no cost orders for competition matters Industry training & development non-existent – affecting succession planning and mental health issues Illicit and illegal tobacco – impacting the sales of legal tobacco in small, medium and large members stores E-cigarettes and personal vaporisers – Senate Inquiry participation and submissions House of Representatives Economics Committee – submissions and appearances – barriers preventing small businesses to survive and prosper. Network cards and mobile wallet technology – Senate Economics Committee – consultation and submissions Unfair contracts amendments – threshold increased to $1m – Small Business Minister Federal working relationships – Australian Competition and Consumer Commission (ACCC) Treasury Department, Australian Tax Office (ATO), Fair Work Commission (FWC)

Minister for Employment and Women Michaelia Cash with Jos de Bruin

Major industry concerns • • • •

Rapidly increasing energy costs Illicit and illegal tobacco use Industry mental health – “Mates in Retail” WIP Cyber security

Committees, boards, affiliations and industry associations • • • • • • • • • • •

Michael McCormack – Small Business Minister and Jos de Bruin

ACCC – Small Business and Franchise Consultative Committee Coalition of Small Business Organisations of Australia – MGA is a Director of COSBOA Industry Skills Council Australia Prime Minister’s Committee for Cyber Security National Measurement Institute of Australia Standards Australia – Unit Pricing working group Franchise Code of Conduct consultation committee Black Economy Task Force – consultation Queensland Small Business Advisory Council Victorian Liquor Control Advisory Committee (LCAC) statutory state liquor body ACT Liquor Advisory Consultative Committee – statutory body

Small Business & Family Enterprise Ombudsman (SBFEO) The announcement by former Small Business Minister Kelly O’Dwyer in April 2016, that there would be a Small Business and Family Enterprise Ombudsman has been a strong success. MGA 2017 Annual Report

Kate Carnell, Small Business and Family Enterprise Ombudsman, presenting at the 2016 MGA Business Breakfast in Victoria

47 Inaugural SBFE Ombudsman, Kate Carnell, has been very active engaging with most small, business industry associations to understand the needs of their members and advocate these needs, on their behalf, to the government. The most significant achievement so far is the development and delivery of the Carnell Banking Practices Report released late in February 2017. MGA is well connected with the ASBFEO.

Australian Competition and Consumer Commission – ACCC MGA is very proud to have an outstanding working relationship with the leadership team at the ACCC, particularly, Chairman Rod Sims, Deputy Chair Michael Schaper and Senior Commissioner Roger Featherston. Members have raised a myriad of competition issues with the ACCC over the past year or so that have been reviewed and clarified. MGA has engaged on many matters by way of consultation or submissions as follows: • Excessive Credit Card Surcharges- effective 5 September • $1 per litre milk inquiry • Petrol Shopper Dockets – enforceable undertaking continues. • Authorisation sought by BP & Caltex – merge and Woolworths Shopper Dockets & Rewards • Authorisation sought by 3 tobacco companies to stop supply to retailers consistently selling illicit tobacco • Competition law reform – numerous meetings and teleconferences to discuss sec 46 misuse of market power provisions – effects test (and removal of mandatory factors from draft legislation) • Country of Origin Labelling inquiry – new regulations • MGA is a member of the ACCC Small Business and Franchise Consultative Council

NAB Small Business Advisory Council meeting

Rod Sims, ACCC Chairman presenting at the 2016 MGA Business Breakfast in VIC

COSBOA CEO, Peter Strong at the VIC Micro, Small and Medium Enterprise Day

National Australia Bank National Australia Bank is very important and valued MGA corporate partner. NAB assists MGA to deliver better support and services to its members. A great majority of MGA’s members actively bank with NAB and value their strong business support. MGA is a an active member of the NAB Customer Service Advisory Council led by NAB Executive General Manager for Micro & Small Business, Leigh O’Neill. Many topics have been discussed and are being addressed including; what small business customers expect from a bank, simplification of processes, streamlining engagement, the Carnell Banking Practices Review and mental health issues. MGA also met with NAB Group CEO Andrew Thorburn at a small gathering of small business owners for a meet and greet with NAB Directors and management including, new NAB Director, former NSW Premier Mike Baird.

COSBOA – Council of Small Business of Australia COSBOA has been at the forefront of many matters in Canberra and in the federal parliament advocating on behalf of all its members across many sectors. COSBOA, led by Peter Strong and a dedicated Board of Directors, has played a large role in advocating for a variety of matters on behalf of privately owned business and family enterprises including; • Competition Law Reform – sec 46 misuse of market power – effects test • Unfair Contract Terms – threshold at $1m • Reduction in Sunday penalty rates • Superannuation administration • Favourable taxation policies The COSBOA Small Business Summit was held in Brisbane a week after the last Federal Election on 6, 7 and 8 of July 2016 – Many Federal and State MPs as well as bureaucrats attended the summit.

MGA 2017 Annual Report

INDUSTRY REPRESENTATION

STATES

MGA has had various meetings with State ministers and Government department heads to discuss an array of matters of concern. Many submissions have been developed and lodged by MGA in response to a variety of enquiries conducted by various state government departments;

ACT •

Packaged Liquor License Fees – engaging with Chief Minister Barr • Also discussing entrapment laws and RSA training improvements • Proposed Container Deposit Legislation – effective 1 December 2017 – follow NSW

•

• Tobacco • Oppose suggestions to restrict the sale of tobacco products to geography and times • Oppose increase to tobacco license fees • Support E-vapourisers • Planning and zoning issues • MGA is a member of the ACT Liquor Review Committee (statutory body) – Peter Karkazis is a member • Advocate for fair competition – independents have a very low market share

• • • • •

sustainable developments Member of the NSW Tobacco Control Act Committee • Change the current NSW Tobacco act to change the words “sell tobacco from one cash register to one point of sale to transact tobacco products • Continue to support E-Cigarettes – allow for the retail sale of E-vapourisers with nicotine Plastic Bag bans – ongoing collaboration to mitigate risk of cost burdens to members Food ingredient labelling – takeaway products Payroll tax – increase threshold and decrease % MGA is a member of the Tobacco Control Act Committee, the Small Business Commissioner Group, the NSW Planning Minister Environment and Planning reform group State relationships – NSW Department of Health / Planning & Environment – Planning and Zoning Working Committee

New South Wales

Queensland

•

MGAQ Committee – very active in consulting with the government and its agencies Wayne Mason – FoodWorks QLD State Manager Chris Antonieff – FoodWorks Oxley Craig Careswell – Friendly Grocers Group; National Operations Debbie Smith – FoodWorks – 3 x Toowoomba Fred Elisha – IGA Xpress Palmwoods

•

Member of Small Business Commissioner’s Small Business roundtable group Container Deposit Legislation – continue to collaborate to mitigate member red tape and cost – due to be implemented 1 December 2017 Member of NSW Planning and Zoning Development committee – engagement concerning a new approach to

Jos de Bruin, Roz White, Queensland Minister for IR Hon Grace Grace, Wayne Mason, Peter Piccone

MGA 2017 Annual Report

Grant Hinchcliffe, Debbie Smith, Jos de Bruin, Rod Allen, Kate Carnell at the COSBOA Small Business Summit in Brisbane

49 Mark Meszaros – Drakes Supa IGA Peter Lee – Ritchies Supa IGA Peter Piccone – Supa IGA Cairns Richard Hinson – GM Metcash QLD Roz White – Whites IGA Group Sunshine Coast Terry Slaughter – IGA Springfield Lakes Zac Mina – Metcash Commercial and Finance The MGAQ Committee, which represents all Queensland MGA members, is to be sincerely thanked for their untiring dedication and commitment to making Queensland a better place for independent supermarket owners and operators. Their energy and leadership is outstanding and to be admired. Debbie Smith is a member of Minister for Small Business, Hon Leeanne Enoch’s, statutory “Queensland Small Business Consultative Council” • Member – Palaszcuk Government’s Allowable Shop Trading Hours Act review reference group • Member – John Mickel Allowable Shop Trading Hours Act Reference Group – submissions presented, forums & consultations attended. • Waste and Recycling Amendment Bill 2017 • Container Deposit Legislation – continue to collaborate to mitigate member red tape and costs – due to be implemented 1 December 2017 • Plastic bag bans – collaborate to mitigate risk of cost burdens or red tape. To be implemented 1 July 2018 • Member – QLD Recycling and Waste Management Amendment Bill – Container Deposit Legislation committee Trading hours • Extensive research, surveys & submissions concerning the Trading (Allowable) Amendment Bill – working closely with Minister Grace and other MPs. Work with Government to legislate a 5 year moratorium on any changes to QLD trading hours.

John Chapman – Small Business Commissioner SA, Jos de Bruin and Roger Featherston – Commissioner of the ACCC

•

Oppose the NRA applications to liberalise trading hours... many hearings conducted • Extensive and costly research projects carried out to gather facts evidence and data for hearings. • Most recent hearings – Sunday trading – Pittsworth, Stanthorpe and Warwick. QIRC decision – Sunday trading for Warwick and Stanthorpe not Pittsworth. • SEQ decision handed down 14 Oct 2016 by QIRC released 10 trading hours – 7am – 8am and Saturday evenings – the result has been devastating since it was implemented on 1 December 2016 for MGA members • Packaged liquor for supermarkets – packaged liquor licenses for independent supermarkets – MGA members cannot offer packaged liquor as part of their meal solutions offer whilst Coles and Woolworths are advertising packaged liquor in their supermarket catalogues – this is not the intention of the existing QLD laws! Tobacco • Tobacco licensing for tobacco retailers – oppose retail tobacco licensing as a means to raise revenue and possibly restrict tobacco distribution • E-vapourisers – support the legitimisation of E-cigarettes as a healthier alternative to tobacco products • Inconsistent planning and infrastructure (and development) practices – Minister Enoch • Industry skill and capability training support – Minister Enoch • Food ingredient labelling – takeaway products such as roasted chickens • State working relationships – Queensland Industrial Relations Commission (QIRC)

South Australia • • •

Energy crisis has created hardship for many MGA members Liquor Licensing in South Australian Supermarkets The SA Government has introduced a proposed bill for

Francis Bedford – State Labor MP with Jo Chapley

MGA 2017 Annual Report

• • •

•

the introduction of liquor sales in supermarkets which is strongly supported by MGA. The changes follow an independent review of the licensing laws and will be introduced in stages. There is however some contention about the entrance to the stores liquor area, with the proposal that there must be a completely separate entrance door to the liquor section of the store. • MGA has demonstrated that there is a way of operating the store without the need for an outside separate entry which is the case in other states. Oppose further liberalisation of trading hours – driven by the chains Payroll tax relief – was reduced for small business with less than $1.2 million in payroll Liquor Licensing discussion paper – liquor licenses for supermarkets – member of Attorney General’s consultative group Tobacco – support E-vapourisers

Department of Health Payroll tax relief – reduced in regional areas by 25% to 3.65% – A BIG WIN for members! • Looking to increase the threshold and reduce % in Melbourne • Energy crises – members experiencing massive increases • Container Deposit Legislation Victoria – not on the agenda •

Western Australia Western Australia had a state election on 11 March 2017 with the public convincingly ousting the Liberal government with a 16% swing away from the Liberals. The new Labor government led by Premier Mark McGowan has communicated its will to work with all sectors of the WA community. MGA is currently in the process of engaging with various ministers. On the 21 March 2017 – led by MGA WA Director Gino Divitini, MGA formed the MGA WA Committee.

Tasmania •

Tobacco laws • Tobacco – oppose lifting min. age to purchase tobacco from 18 years • Support E-vapourisers for retail sale with nicotine • Advocate for fair competition – independents have a very low market share

Victoria • • •

• • • • •

Election – new Labor government, 29 November 2016 Plastic Bag Bans – Collaborate with the government to mitigate red tape or cost burdens Red tape and cost burden elimination – MGA is a member of the designated review panel – extensive consultation, participation and submissions Food ingredient labelling – takeaway products Continue to oppose the introduction of 2 additional public holidays – Easter Sunday & AFL GF eve Continue to oppose additional liquor & tobacco regulations MGA is a member of the Liquor Control Advisory Council (LCAC) – a statutory body State working relationship – Victorian Commission for Gambling and Liquor Relations (VCGLR) and Victorian

Leader of the Opposition Matthew Guy MP, Andrew Spark, Brad Battin MP, Jos de Bruin and Tony Ingpen MGA 2017 Annual Report

MGA WA Committee members include; Gino Givitini – Supa IGA Hilton & MGA Director Greg Brindle – IGA Wembley, Canning Bridge and Applecross Greg Rice – IGA Ballajura John Cummings – former owner operator of Duncraig store Pierre Sequira – IGA Como Rob Halvorsen – IGA Canningvale, Riverton & Baldivas South Ross Anile – IGA Roleystone Tony Macris – FoodWorks Forestfield Wally Daly – IGA Belmont • • • • • • • •

Trading hours issues – oppose further liberalisation of trading hours Continue to oppose extending Sunday trading hours Packaged Liquor – oppose the development of “Big Box” outlets – ie. Como Payroll tax – reduce threshold and percentage E-cigarettes – allow for sale – currently banned MGA WA Liquor – strong legal and HR support being provided Payroll tax – increase threshold and decrease percentage State relationship – WA Economic Regulation Authority

Judy O’Connell with Victorian Minister for Small Business, Hon Philip Dalidakis MLC

Victorian Minister for Small Business, Innovation and Trade, Philip Dalidakis with Jos de Bruin

MGA INDEPENDENT RETAILERS

COMMUNICATION MGA’s team has stepped up more effective and relevant communication and engagement with members and stake holders in line with its higher purpose – “Making Life Easier” and the agreed team focus for the 2017 calendar year – “2017 the Year of Engagement.” Branding and layouts have been modernised on all mediums as well as MGA’s website. Checkouts, e-Alerts, magazines and MGA’s website continue to be members preferred methods of communication. Social mediums, Facebook and twitter, although MGA keeps these updated, are not commonly used communication methods by members. MGA’s website has again been improved and continues to deliver members a more robust and responsive knowledge tool.

Public Relations and Media The past 12 months has witnessed MGA once again significantly lift its profile within Federal and State government MPs and department’s circles as well as with the media.

Media release

The Effects Test, to curtail misuse of market power, passes the Senate The voices of small businesses have finally been heard and at last the long-awaited effects test has passed through the Senate. Mr. Jos de Bruin, CEO of Master Grocers Australia said, “This is a great triumph for our independent retailers who have struggled for years against stifling unfair competition laws. At last we will have a level playing field.” The introduction of the effects test, and the consequent changes to Section 46, misuse of market power in the Competition and Consumer Act, as proposed by Professor Harper, will deter the anti- competitive behaviour of big businesses, who have been able to wield their corporate power at the expense of small independent businesses for far too long.

MGA continues to be active and receive various media exposures via state and national radio, TV and press.

Mr. de Bruin continued, “Whilst the entire Senate was not supportive of the proposed change to the law, a significant number of Senators fortunately expressed the urgency of cracking down on stifling anticompetitive behaviour. They referred to the need to suppress the abuse and misuse of market power that has prevailed, to the detriment of smaller players, for decades. Small businesses were described as the ones who can make a major contribution to the growth of our economy, but only if they were free to compete with their bigger rivals on level turf. It was essential for the Senate to remove the restrictive laws that were holding back innovation and growth, and to provide the opportunity that would allow small businesses to compete on their merits.” Master Grocers Australia and its members, applaud those who supported the Bill and it will now be up to the thousands of small businesses, who are the backbone of this country, to prove that they are worth all the political support that has been provided to them in this overwhelmingly long struggle to get this far. Jos de Bruin commended all those who had contributed their assistance and encouragement to make this significant legislative amendment.

For further comment contact: Jos de Bruin CEO – MGA Independent Retailers Tel: 0418 312 723

National Support Centre - Suite 5, 1 Milton Parade, Malvern VIC 3144

Comment is being sought regarding a range of topics including; competition law reform – section 46 – the effects test, reduction in Sunday penalty rates, the deregulation of trading hours in Queensland just to name a few. MGA has received exposure with the following media – AFR, The Australian, Courier Mail, The Age, the SMH, ABC Radio National, 2GB, 4BC, 2UE and Channel 9.

MGA team of professionals The past 12 months have been particularly challenging for MGA from a resource perspective. MGA’s limited resources are put to very good use in addressing the many issues members face each day in their businesses. The independent retail sector is constantly changing; members businesses are becoming more exposed to workplace, commercial and competitive challenges than ever before and industry skills training continues to lack government direction.

Despite the challenges, MGA’s dedicated and committed team of professionals is able to be of support and service to members around Australia, on an as needs basis, to address most members’ matters of concern within the workplace. To MGA’s knowledge, no other employer organisation can emulate this professional response model as well as MGA staff can! MGA is truly fortunate to have the committed and professional staff available to support its members!

MGA 2017 Annual Report

INDUSTRY

COMMUNITY Grocery & Liquor Association (GALA) The Grocery and Liquor Association (GALA) was formed some 71 years ago as a community fundraising arm of Master Grocers Australia (MGA). GALA is incorporated under MGA and is an organisation dedicated to bringing our wonderful industry together for fellowship, networking and importantly, supporting flagship community support organisations, namely the Reach Foundation in Victoria and New South Wales. The GALA Committee consists of a number of grocery and liquor industry representatives who willingly and enthusiastically volunteer their time. GALA conducts major annual industry community/charity events throughout Australia including industry golf days, industry breakfasts and the GALA industry ball, held in Melbourne, in August/September each year. The GALA Committee is made up of the following members we thank them for their dedication and energy to unite our industry for a great community cause: Aaron Scalzo – Lion Dale Clark – MGA Frana Tatkovich – ALM / IBA Jos de Bruin – MGA

MGA 2017 Annual Report

Kate Egan – Metcash / IGA currently on leave Madeleine Smith – Reach Marino Biviano – FoodWorks Paul Holmes – Bulla Ross Carr – Retailworx Steve Sellars – MGA Theo Stratopoulos – Reddrops FoodWorks Group Arthur Hayes – Industry Mentor The annual MGA GALA Ball, held in August 2016 at the Docklands in Melbourne was again successful with over 400 industry people attending, raising over $50k for the Reach Foundation. The Industry Breakfast and AGM was held at the Adelaide Oval in Adelaide in November 2016. It was a great success with special guest speakers including Hon Nicolle Flint MPO Member for Boothby, representing the Prime Minister Hon Malcolm Turnbull, Independent Senator Nick Xenophon and ACCC Commissioner Roger Featherston. The MGA GALA Golf Day held at the Keysborough Golf Club in Melbourne was a sell out with groups playing in the morning and afternoon and over 100 people attending the presentation dinner. This event raised over $20k for the Reach Foundation.

MGA Employment Law Support Services Australian Hairdressing Council (AHC)

In November 2016 MGA came to a commercial support arrangement with the AHC. Led by CEO Sandy Chong, the AHC have entered into an agreement with MGA to provide AHC’s 400 hairdressing outlet members, located in QLD, NSW, ACT and Victoria with employment law and HR support, service and advice. Hairdressers are traditionally owner operated service focused businesses who require affordable workplace relations assistance. MGA is delighted to provide this assistance. AHC members have become associate members of MGA so that MGA is able to provide unencumbered support when required. A separate telephone number has been created to accommodate the AHC. The revenue derived from this arrangement will be put toward further improving MGA’s support and service to its members.

Timber Merchants Association Established in 1883 the TMA Board of Directors have been in discussions with MGA’s Board concerning the opportunity for TMA to be absorbed and integrated within MGA so as to further grow TMA membership and provide a larger range of support services. The Timber Merchants Association (TMA) currently comprises 120 small, medium and large outlets, employing more than 4000 people and generating $2b in sales. TMA members are largely Victorian with TMA having served its members for over 120 years. The TMA has very closely aligned values and policies to that of MGA. TMA members consist of independent timber and hardware retailers, timber wholesalers, timber suppliers and businesses that “add value” to timber products. TMA’s members are no different to MGA members, they are independently owned family enterprises privately owned businesses competing against giants such as Wesfarmers’ Bunnings outlets. Both boards agreed to facilitate this arrangement from 1 July 2017. TMA will deregister as an organization with the FWC. The current TMA Board will continue as a committee and all new activities will be take place under the brand name TMA MGA.

MGA 2017 Annual Report

MGA

LIQUOR The National MGA Liquor Committee has once again been very active on behalf of members. On behalf of all packaged liquor licensed members MGA sincerely thanks each committee member for giving up their valuable business time and sharing their insightful views concerning packaged liquor. Together we have been able to make a difference to push back on packaged liquor license fee increases, additional regulatory red tape and oppose the anti competitive behaviours of the large chains. The industry has changed rapidly in recent years with a high influx of new overseas investors and new settlers purchasing licensed supermarket and liquor stores. Senior health bureaucrats have advocated that the irresponsible consumption of alcohol is contributing to the serious issue of family violence and thus suggesting ways to temper

alcohol consumption to reduce harms. MGA fully supports initiatives to reduce any harm that may be caused through alcohol consumption and believes the most effective way to grow a culture and behaviour toward responsible alcohol consumption is through robust deep reaching education programs. Increased taxes, increased license fees, increased regulations will not achieve cultural change. Queensland – Packaged liquor is unable to be sold by independent supermarkets in QLD. It is able to be sold by Coles and Woolworths as they have manipulated the current laws by purchasing hotels, placing a big box on the site and then placing the 3 detached bottleshops next to their supermarkets located within a 10km radius. Most Woolworths and Coles stores advertise packaged liquor in their weekly catalogues. This is completely anti-competitive. MGA is working with

the current government to bring this discussion to life and is advocating strongly for members to be able to sell packaged liquor. South Australia – After many years of advocacy for MGA’s SA members, they will to be able to compete on a level playing field with the chains by selling packaged liquor. The SA government, after a lengthy independent inquiry, has determined that they support the recommendations in the report and will allow independent supermarkets to sell packaged liquor if they choose to. The committee, which meets monthly has covered many issues and matters of importance • ACT, NSW, VIC – Oppose increased packaged liquor licenses fees • VIC – Equalise liquor licenses fees – packaged vs general • NSW, VIC – Promote RSA online for remote users

President George Kovits MGA

Nick Cook Frank Palumbo Bottlemart

FoodWorks Mt Beauty Yackandandah Myrtleford

Tony Ingpen

Jeff Harper

IGA Mt Evelyn

IGA Ashburton

IGA Liquor National

IGA Liquor Victoria

MGA 2017 Annual Report

Angelo Giannetta Cellarbrations

Tony Bongiovani Cellarbrations

John Rodriguez

Michael Reddrop

Anthony Abdallah

IBA ALM

FoodWorks Alexandra

FoodWorks Head Office

Tony Leon

Jodie Louise Gratian

Steve’s Liquor

Kings Family Liquor

Peter Karkazis Local Liquor ACT

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NSW, ACT, QLD – Introduction of Container Deposit Scheme VIC – Review of LCRA 1988, RSA Training Review, Alcohol Advertising and Promotions Review, NSW – Callinan Final Report SA – Sale of packaged liquor in supermarkets TAS – Advocating for a restrictive liquor license for independent supermarkets stores Statutory Committees Queensland Government – Debbie Smith (MGA Director) – Small Business Advisory Council ACT – Liquor Advisory Council – Peter Karkazis (MGA Liquor Committee member)

MGA Liquor Committee with new committee members Tony Leon (far right) and Peter Karkazis (ACT) (fifth from left) meets at Brown-Forman. •

VIC – Liquor Control Advisory Council – Jos de Bruin CEO MGA

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Sub Committees – Online / RSA training – George Kovits MGAL Committee

Industry Engagement – Year of Engagement 7 – 8 July 2016 – Brisbane – COSBOA Summit 17 – 19 July 2016 – Queensland – Metcash EXPO 16 September 2016 – Adelaide – Foodland Independent Supermarket Buying Group Expo (ISBG) 19 August 2016 – Melbourne – MGA GALA Industry Ball 16 to 22 October 2016 – Thailand – FoodWorks Conference October 2016 – Perth – MGA Employment Law Master Class 11 November 2016 – Adelaide – MGA Industry Business breakfast and AGM

Liquor Committee

February & March 2017 – Presented to FoodWorks and IGA state regional meetings 15 March 2017 – Victoria – MGA GALA Golf day 23 May 2017 – Victoria – MGA Employment Law Master Class

FoodWorks retailers & management with Hon Michael McCormack MP in Wagga Wagga

MGA Employment Law Master Class – Western Australia

MGA 2017 Annual Report

Ask your customers to press or to get cash out and avoid ATM fees. CHQ

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.

SAV