The Master Electrician Magazine Spring 2014 by Master Electricians Australia

Registered by Australia Post Publications No. PP100007372

INSIDE Chasing the sun – the rotating house THE INTERVIEW – Nigel Hadgkiss The Aussie iHome is here Australia’s largest solar façade

SPRING 14

themaster

table of contents Average Net Distribution 33 909 CAB Audited as of March 2014

the Aussie iHome is here 04 chasing the sun

buying online

the buzz

Australia’s largest solar façade

cash flow – the lifeblood of businesses 22

the rising tide of workplace relations 26 meet a master electrician

regulator wrap up

letter of the law

WELCOME TO THE SPRING EDITION OF THE MASTER ELECTRICIAN

the interview – Nigel Hadgkiss

Are you a Master

gadget guide

techno biz

tech talk

workplace relations

all about ME

consider our members as

test drive

and this is demonstrated

events calendar

shocking photograph

the last word

LIKE US ON FACEBOOK

GENERAL ENQUIRIES Master Electricians Australia PO Box 2438, Fortitude Valley BC Queensland 4006 PHONE 1300 889 198 FAX 1800 622 914 EMAIL magazine@masterelectricians.com.au WEB www.masterelectricians.com.au

EDITORIAL CONTACTS & CONTRIBUTORS EDITOR Malcolm Richards ASSOCIATE EDITOR Rebecca McNeil ADVERTISING ENQUIRIES Janelle MacDonald PHONE 07 3252 4860 EMAIL magazine@masterelectricians.com.au DESIGN AND PRINT POMO 1300 762 865

Electricians member? If you answered no, this issue will make you consider it. As a growing not-forprofit association, we our sole reason for being,

through our wide range of membership benefits. From the support of our qualified experts (p26), to exclusive work opportunities (p47), to free industry events (p24 & 31), and even

50 Follow us @MasterElectrics on Twitter Become a Fan on Facebook www.facebook.com/ masterelectricians

discounts on your vehicles (p50), Master Electricians Australia is like the business partner you never had, but always needed. So go on, keep reading and find out what all the fuss is about.

www.masterelectricians.com.au or call 1300 889 198

Until next time.

The Master Electrician is printed on environmentally responsible paper sourced from FSC® certified forestry plantations. The paper is made with Elemental Chlorine Free pulps (ECF).

Rebecca McNeil

DISCLAIMER: The statements and opinions expressed in this publication are offered solely in pursuance of the objects of the Electrical Contractors Association and Master Electricians Australia to provide an informative service to contractors in the electrical industry on legal, commercial and other issues and problems related to the industry. The Electrical Contractors Association and Master Electricians Australia are not aware that any person intends to act or rely upon such statements and opinions contained in this publication or the manner in which it might be possible to do so. The Electrical Contractors Association and Master Electricians Australia issues no invitation to any member or other persons to act or rely upon such statements or opinions or any of them and it accepts no responsibility for any of them. It intends by this provision to exclude, to the extent permitted by law, all liability for any such statements and opinions. The Master Electrician Magazine can be viewed online at www.masterelectricians.com.au

Associate Editor

The Master Electrician

Spring 2014

feature

The Aussie iHome is here The meteoric rise of smartphones and tablets, alongside innovation and solutions built around their cost effective nature, is making the smart home closer than ever before. As Lisa Carter writes, The Jetsons were on to something.

IN days of old, if you suspected you had left the iron on, you

“We’re becoming so used to having our Smartphones and tablets at arm’s reach to update our Facebook status, check our emails, or watch a movie, so why not also use it to control our lights?” asks Product Manager Ben Brady.

Typically, every home has a combination of individual controls for lights, security, air conditioning, audio-visual systems, and panel lift doors, to name a few. Smart home automation technologies can get some, or all of those systems working together.

The system is designed to take the fear and complication away for both consumers and contractors.

would be forced to turn back, but the newest wave of technology to hit Australian shores allows you to check virtually any device that runs on electricity with a glance at your smartphone.

OSRAM is due to launch a new, state-of-the-art system called Lightify next year. Users will be able to create their own wirelesslycontrolled light atmospheres, eliminating the need for extra cables. www.masterelectricians.com.au

“The communication method from the gateway to the Lightify devices is through the Zigbee protocol. Users simply purchase the Lightify Gateway and Lightify-enabled light source, download the free smartphone/tablet app, and follow the instructions to set it all up themselves,” Mr Brady says.

Connect Multimedia’s smart-wired project in Noosa

Users will be able to create individual lighting scenes, customised through the app, using Lightify bulbs that can change colour, brightness and temperature. ‘On Holidays’ could signal lights to mimic someone being at home, ‘Good Morning’ could contain a gradual build in light intensity, or a ‘Date Night’ setting could create a soft ambience for a little evening romance. Additional lights can be added in stages due to the mesh networking of the Zigbee communication. “Maybe you have guests arriving before you get home who aren’t sure of the house? Turn the front light on, and switch it to green to stand out. Or even use the Lightify adapter on an iron as a fail safe to switch it off remotely,” Mr Brady says. Basic electrical appliances are now on the radar for those who are after a more rudimentary introduction. Even renters aren’t excluded, as off-the-shelf, entry-level products make their way into the Australian market. Philips, Belkin and Samsung have all released products to connect day-to-day appliances to the internet.

The Belkin WeMo Switch, for example, retails for around $70 from the Apple store, and lets users turn electronics on or off from their iPhone, iPad or iPod Touch from anywhere in the world where there is an internet connection. The Wi-Fi-enabled switch plugs in to the powerpoint, and the appliance then plugs into the switch. Use the app to turn a lamp on in the middle of the night before visiting the bathroom, fill the crock pot with vegetables and switch it on from work, or set the electric heater to turn on a few minutes before the alarm goes off. Additional switches and WeMo Motion sensors can then be added at any time. But while this explosion in DIY apps is making the ‘internet of things’ closer to reality for the Average Joe, experts warn it can end up being more costly, and complex, than originally anticipated. “While DIY lends itself perfectly to the user who requires limited control of specific products, the drawbacks become clear when trying to expand this into whole home smart control with unsupported products and complicated DIY configuration,” says Ben Green, General Manager of Push by Schneider Electric. The Master Electrician

Spring 2014

At the moment, the concept is fragmented at best, as users are still forced to control all of their connected appliances and devices from single apps. It’s the modern day equivalent of having 200 remote controls, only on a smartphone instead of a coffee table. “Obviously, the more devices that can be controlled in the home, the more powerful the smart home becomes, but customers don’t always understand the cabling and design requirements.” says Mr Green. And that means, for those yearning for all their systems to talk to each other, setting up a complete ‘iHome’ is going to take some serious technical expertise. At this stage, a fully-integrated smart home can only be achieved through smart wiring. In the professional home automation market the possibilities are endless, and subject only to the client’s imagination and budget (Microsoft founder Bill Gates reportedly dropped a cool $100 million on his smart home, complete with heated driveways and occupantspecific room settings). Connect Multimedia on Queensland’s Sunshine Coast has just finished a smart-wired home on a grand scale at Noosa. “Our client can log in to the system from anywhere in the world and let tradies in and out of the house, disarm the security system, turn lights on and off. They can watch on their iPhone (through the CCTV system) who is standing at their front door, watch them walk in and make sure the house is locked up once the tradie has left,” says Project Manager Glenn Voyzey. Large homes such as this have enormous difficulties with wireless technology – Wi-Fi can have a very short range due to the reenforcing steel bars inside the walls, floor and ceiling absorbing the RF transmissions. While there are Wi-Fi boosters on the market, they have to be in range of each other and the more added, the slower the network becomes. www.masterelectricians.com.au

“We made provisions for this in the planning and construction phase. We only used Wi-Fi products that create what is called a wireless mesh network. Our access points talk to each other, constantly assessing what mobile devices are on the wireless network and which of the installed access points has the strongest signal,” says Mr Voyzey. Just a snapshot of the home’s requirements includes a whopping 190 LED lighting circuits, 48 C-bus switches, 24 lighting movement sensors, 49 motorised blinds/curtains, eight different zones of floor heating, seven bathrooms with towel and mirror heaters, 21 security zones, 12 music zones, access control for nine external doors and gates, four CCTV cameras, multiple intercom systems, irrigation, and air-conditioning control for plant equipment, just to name a few! “Can you imagine how many conventional buttons and switches would be needed to turn all of this on and off?” he asks. But in order to be a success, the end result must be simple for even the most technologically-challenged person to operate. “The final system is controlled by a single interface, so all the heavy lifting is done behind the scenes with tradies and computer nerds working together. We deal with almost all trades, from cabinet makers to landscapers, which takes enormous planning and understanding about what’s required from each one,” he says. Ultimately, the smart home automation industry has a lot to be excited about, and with every new technology comes unprecedented opportunity. Let’s hope the next instalment includes a sassy robot called Rosie, who hides all the junk food when you’ve put on a few kilos and takes out the wheelie bin without being asked.

feature

Chasing the sun Subtly nestled in the quiet rural suburb of Crace, lies one of the most impressive sustainable energy projects in the country. Rebecca Manley takes a full circle look at Girasole, Australia’s energy efficient, rotating home.

SOME inspiration from Galileo, twenty-eight wheels, two

motors, and less power than a light bulb – that’s all it took to get this rotating house moving. Dubbed Girasole, meaning ‘to follow the sun’ or ‘sunflower’, the home takes full advantage of natural light and solar efficiency by moving at the touch of a button and using only about 100 watts of energy to turn. The home is the brainchild of MAG Constructions builder, John Andriolo, who says it was his life-long dream to construct such a fascinating building. www.masterelectricians.com.au

“The idea for this house came about 50 years ago, when I was just a 10-year-old boy studying history in Italy,” Mr Andriolo says. “I found Galileo Galilei’s idea of ‘eppur si mouve’ (‘and yet it moves’), that the earth revolved around the sun, completely fascinating, and since then, I’ve always dreamt that one day I would build a house that follows the sun. “Seeing that idea finally become a reality has been a little surreal, but I hope it will demonstrate how our natural

9 resources, like the sun and rain, can be put to good use in home designs.” Girasole is named after ‘Villa Girasole’ (‘Villa Sunflower’) in Verona, Italy, another rotating structure that was built by Angelo Invernizzi in 1935. The original Villa Girasole was pushed by a diesel engine over three circular tracks at a speed of four millimetres per second, meaning that it took nine hours and 20 minutes to rotate fully. John Andriolo commissioned DNA Architects to bring his modern, energy efficient, rotating house concept to life, and they successfully designed a home that could fully rotate in virtual silence in as little as 10 minutes. DNA Architects Chief Architect, Ross Norwood says Canberra’s very own Girasole shows off the advancement in technology and architecture over the last 80 years. “This eco-friendly home can track the sun automatically, and also includes a sloping roof hosting 10.5 kilowatt solar panels to power the home and its hot water system,” Mr Norwood says. “Electricity comes through to the house underground, where it connects with a special flexible cable that can coil and uncoil as the house moves. From there, the rest of the electrical installation is fairly traditional. “The house is programmed to never turn more than one and a half rotations, so that the flexible cable leading the electricity into the house won’t snap.” Despite Girasole’s futuristic and sustainable features, its exterior is designed to fit in with the single-storey street

“The idea for this house came about 50 years ago, when I was just a 10-year-old boy studying history in Italy.”

The Master Electrician

Spring 2014

frontage of most of the neighbouring homes, making it almost totally inconspicuous.

aspect of that was ensuring the house was safe and that no one could get hurt when it was rotating.

Mr Norwood says the entire construction can make a 360° turn with the help of a state-of-the-art operational system driven by a touch screen panel.

“John was uncompromising in his commitment to quality and innovation, and the result is an amazing house that challenges us to think differently about how we live and what we build.”

“When the house is moving, it is dead silent and everything inside the home is dead still, so you can sit there with a glass of wine close to overflowing and you won’t lose a drop!

John Andriolo says the most common question people ask him about Girasole is how the plumbing works.

“You can also use the rotating feature to your advantage during bad weather by swinging the home away from gale-force winds or rain.

“The sewage system is in the dead centre of the house and acts like an axis that the house moves with and on,” he says. “Girasole has encouraged a change in thinking, away from needing to find a perfectly orientated block, and it has demonstrated that even the most ambitious undertakings can quickly become a prototype for future environmentally friendly homes.”

“The home basically sits on a huge steel wagon wheel, which turns using a small motor and a series of 20 kilogram wheels on top of a round footing. You can even physically push the whole house yourself, with the help of a few muscly mates – the design is actually quite simple.” “Designing Girasole meant we just had to The four bedroom house sits on a 704 square metre block, and features a large underground water tank, which adds to its aesthetics and sustainability.

throw the traditional architecture rule book out the window!”

Mr Norwood says Girasole is a fantastic place to live in, thanks to its smart floor plan, which provides plenty of open living space. “Designing Girasole meant we just had to throw the traditional architecture rule book out the window! “There’s no fixed north, so rather than the traditional approach of designing a home based on having a north facing living room, we had to work out totally new basic design principles, and a key www.masterelectricians.com.au

Fittingly, Girasole looks out across the protected Gungaderra Grasslands Reserve, to Mount Majura and the nearby hills.

The project was ambitious and costly, but when it sold in June 2013, it managed to fetch a cool $1.2 million – a record price for the Canberra suburb of Crace. Girasole is now owned by a local retired couple, Phillip and Anna Burroughs, who bought the property to downsize from a much larger house. The Burroughs told the Canberra Times that they were very excited about “living in a moving work of art”. Standard energy rating programs can only determine a rating when a house is in a fixed position for a whole year, however, Girasole has an unofficial six star EER (energy efficiency rating), meaning its expected 10-year running cost is less than $6,400.

GIRASOLE’S SUSTAINABLE FEATURES: Underground water tank

Solar panels

120,000-litre tank stores rainwater. Rainwater falling directly on the roof or on the garage is captured and directed to the underground facility. The owners can decide whether to use it for specific purposes, like watering the garden or doing the laundry, or they can completely eliminate the need to use community water supply by relying entirely on the building’s water resources.

10.5 kW panels generate sufficient electricity to sustain the needs of the entire building all year round. Thanks to them, there is also an abundance of hot water.

High-quality insulation Girasole relies on top-notch insulation materials to keep the warmth indoors during the winter and reflect heat in the summer. The house’s polystyrene external cladding has the highest insulation rating possible. The design, and Weathertex cladding around the curved area of the house, along with increased bulk insulation within the stud frames, creates an insulated box-like structure.

Double glazed windows The living room windows are clear doubled-glazed aluminum to allow winter sun to warm the house when facing north. In summer, the house can turn away from the sun to protect itself with a Low E glazing system that reflects the heat.

Clever design The house features operable doors or windows in all rooms for excellent cross ventilation. Top windows in the living area are electronically controlled to allow the heat to escape in summer.

Sustainable lighting Girasole has LED lighting installed throughout.

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Spring 2014

feature

Buying online – quick, convenient, safe? Everyone seems to be buying online these days, but is it a safe way to buy electrical products or is the electrical industry behind the game? We investigate.

RECENT research by Swinburne University has demonstrated

how pervasive online purchasing has become, finding that a massive 85 per cent of Australian’s have purchased items online. When you consider that 91 per cent of Australians are now regularly active online, it is not surprising that most of these people are buying online as well. So is it safe to buy electrical products online? As with all things, the answer is ‘it depends’. Electrical contractors should exercise caution when purchasing products online, and always purchase from a reputable supplier. Although the pressure of reducing costs and staying ahead of the competition can force contractors to buy products online or from cheaper sources, the recent recall of the faulty Avanco PV Power branded DC solar isolators and the Infinity Cable are harsh reminders about the importance of buying from quality dealers. L&H Executive General Manager (QLD/WA), Ross Swepson suggests that contractors should use normal wholesaler networks to purchase electrical products, as it provides an extra layer of support if anything goes wrong with the product after it is purchased. “Many products sold on online auction sites or overnight online sellers appear to be the ‘real deal’, however, these products are often manufactured with cheap materials and do not meet Australian Standards. “Generally, contractors will have an idea on the cost of the products they purchase often, so if they then see it for 75 or 50 per cent cheaper, there is something wrong. www.masterelectricians.com.au

“The leading brands on the market don’t generally have the sort of margins that mean prices can be undercut by that much. “A general rule of thumb to use is if it sounds too good to be true, it probably is,” Mr Swepson says. Another danger of purchasing potentially non-compliant products is that once they are installed, the electrical contractor must vouch for not only its safety but its performance. If the product turns out to be non-compliant or a counterfeit, your only recourse is to your point of purchase. What are the chances that a supplier on an online auction site will stand behind a warranty claim? You may also be in breach of state electrical regulations that require electrical products to conform to a specific standard or be certified as electrically safe. If the product fails and causes property damage, civil claims by the customer could be costly and your current insurance policies may not cover this event. In spite of these dangers, there does not seem to be a lack of online activity. So what can contractors do to ensure their online experience is safe and rewarding? When purchasing online, people like to compare the quality and price of items they could get in-store with those they find on the web, however, often what is being compared online is not the same as what is in store. How can you be sure what you are receiving from online suppliers is reputable? This issue is why L&H Group have invested so much in electronic commerce.

13 “Over the last four years, we have invested over $4 million building an electronic experience for our customers that is not only easy to use, but protects customers from the dangers of non-compliant online trade,” L&H’s Ross Swepson says. The electrical industry is a long way behind when it comes to safely purchasing products online. Nearly all electrical contractors utilise the internet on a daily basis, however, the proportion that trade online is below five per cent. What is more concerning is that the opportunity that electronic trading creates for increased efficiency and improved labour utilisation is being passed up as a result of this lack of online take-up.

they get the right product at the right time without having to drive around to find if their local wholesaler has it in stock. Overseas experience has shown the great potential for electrical contractors to take up ecommerce and improve the efficiency of their business. Countries in Europe and North America have in excess of 50 per cent of industry sales occurring online. Mr Swepson says there will always be a need for branches, well located and well staffed, to help electrical contractors with their immediate needs, but we will see more and more contractors deciding to buy online to increase their productivity and labour efficiency in the future.

Electrical wholesalers are ideally placed to overcome the concerns with purchasing online. Wholesaler L&H Group now has a state-of-theart online store (lhnow.com.au) featuring over 600,000 products, with images and details for each item. The store is an account-only facility, so there is no risk of credit card fraud or other security concerns. It allows customers full comparison of products based on price and specifications, and it only carries recognised brands. L&H still have over 160 branches, so customers can have the best of both worlds. (c/w compression spring & bolt assembly) (c/w compression spring & bolt assembly) “Our customers can be certain that the products they buy from L&H, either in store or online, are from the original source, are genuine, and come with the full backing of not only the manufacturer, but also our company. “Unfortunately, the same cannot be said for products bought on sites like Alibaba, or any number of online stores which seem to 30MM SADDLE HEAD says Mr Swepson. appear and disappear PRIMER overnight,” 30MM SADDLE

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Spring 2014

the buzz Calls for tradies to stop trading their health away The Australian Physiotherapy Association is calling on tradies to take care of their health and better manage their work, life, and safety habits. The APA wants sparkies to stop and think before lifting something or reaching over to grab those electrical cables. Taking the time to answer a few questions such as “am I going to trip?”, “will I use it awkwardly?”, “do I need a hand?”, or “could I use some equipment?” could make all the difference. Early injury intervention and treatment through physiotherapy, and the promotion of preventative health measures can prolong working careers and improve general wellbeing. Did you know that 10 tradies are badly injured at work every day? That’s 3,650 tradies on workers’ compensation each year.

legs gently side to side each day can help reduce some tightness in your low back in readiness for the next day, it doesn’t need to take a long time.

The Australian Physiotherapy Association (APA) is so concerned about the rate of injury that they declared August “Tradies National Health Month”. The initiative aims to educate tradies with a series of tips about the importance of full body health and safety.

“What we do know is the earlier we can treat a condition, the quicker it gets better, so seeing a physio before it gets to that point will not only result in it having less of an impact in the long run, but you will also get better faster,” he says.

Despite the majority of tradies’ relying on their musculoskeletal health to do their jobs, many continue to ignore aches, pains, and body stress, which often means an early retirement, or worse, living with a disability or debilitation.

The 2014 Work Health and Safety Report shows that tradies have among the highest rates of injury and musculoskeletal conditions of any profession, and account for a whopping 20.6 per cent of serious workplace injuries.

APA Physiotherapist, Greg Borman says an injury will often have to reach the point where it makes it physically impossible for a sparkie to continue to work before they’ll seek outside help.

It’s often a total surprise just how debilitating an injury can be and the effect that the constant pain will have on your life. For those who are used to being on the go, being stuck home while physically unable to do all those odd jobs can be torture.

“Electricians are exposed to a number of serious risks like electric shock or electrocution. In comparison to this, it isn’t surprising they don’t see as high a risk associated with their physical health, but an injury can have a big an impact,” he says. The most common injury areas are the knees, lower back, neck, shoulders, elbows, and wrists. Mr Borman says it’s essential that the body has time to rest and recover completely each day. “Carrying some fatigue or stiffness from the day before will only compound the effects of work on the next day, increasing your risk of injury. Quite simply, even rolling your www.masterelectricians.com.au

In 2012, 18 per cent of injured workers had sought access to mental health services after six months off work, and 30 per cent of injured workers had sought treatment after a year. Depression and even relationship breakdowns can be an unexpected side effect of physical injury. Mr Borman says you don’t have to do it alone. “Getting an injury seen to early is the best way to try to avoid this, but if it is something you are dealing with, your employer may have someone to talk to. Alternatively Beyond Blue are a fantastic resource to seek help and support,” he says.

For more information and tools on injury prevention, as well as on general diet, lifestyle, and wellbeing, visit www.tradieshealth.com.au

APA’s top tips for taking care of your health: • Exercise and stretching help you prepare your body for work, cope with movements during your tasks, and recover afterwards. Exercise won’t prevent injury, but it can help reduce risk • Gentle range of movement exercises such as marching, rocking the knees side to side while lying down, and shoulder circles are a good way to start the blood flowing • Stretching the pectorals (chest), biceps, wrist extensors, hamstrings, quadriceps, and gluteals can all help reduce the risk of common injuries • Take regular breaks, stay hydrated, and engage in regular stretching and exercise during and outside of work • Consult with your physiotherapist for more information on a specific exercise program and stretches suited to your workplace.

USB sockets come to Aussie walls courtesy of Legrand Nearly every device we rely on daily charges from a USB connection – phone, tablet, camera, fitness band the list goes on. Now, thanks to Legrand these devices can be charged with the new Dual USB Charging Module. In response to the demand from Australians to spend more time connected via mobile devices, Legrand has expanded its range of USB charging solutions with the launch of the Excel Life Dual USB Charging Module. Delivering a market-leading specification in USB charging, with a maximum total charging capacity of 4.2A (2.1A or 10W per USB socket), this dual connection design allows safe charging of any combination of Apple or Android mobile devices. This includes two tablets, smart phones, digital cameras, MP3 players and GPS, without the need for the original manufacturers’ charger. The 4.2A (Dual 2.1A) charging capacity allows full rate charging of devices that require more than 1.2A charge rates. Other USB charger models, with a 1.2A charging capacity available in are not capable of charging devices like iPads and other mobile devices at their full rate, meaning a slower charge rate and in some cases the inability to charge them at all. HPM Legrand Category Manager (wiring devices and automation systems) Eduardo Yudowski says his company is seeing a clear shift toward connected homes and offices, as Australians look to wire and design their homes for convenient, smart living. “Recent research indicates that Australians are not only spending more time connected, but are using more devices to do so. The need

to be connected and the increasing reliance on portable devices is creating unprecedented demands for access to powerpoints to charge devices at home and at work,” says Mr Yudowski. “Often, you’ll have to unplug one device to charge another or charge through a computer USB port at a reduced charging capacity, which can be inconvenient or frustrating. “The Legrand Excel Life USB Charging Module solves this problem by providing consumers with a fast and convenient solution for charging multiple Apple or Android devices, without compromising on charging capacity. “Plugging devices into the wall using a USB cable eliminates the need for bulky manufacturer’s chargers and leaves powerpoints available for other household appliances, such as TVs and computers.” The Dual USB Charging Module is designed for easy integration into a variety of powerpoints including single, double, horizontal and vertical, as well as one to multiple gang switchplate configurations, and is suitable for new builds and retro-fit applications. Contractors can now offer customers more valuable solutions to make the home or work environment smarter and more functional. “This growing demand for electrical products and service presents a significant opportunity for contractors to grow their business through upselling. “Educating customers on how re-thinking their electrical design can enhance comfort and convenience at home can increase upsell rates. Many customers simply may not be familiar with advancements in electrical accessories and practical applications for their everyday life,” explains Mr Yudowski. “This can be as simple as gaining insights into a customer’s lifestyle and explaining the range of electrical solutions available to meet their needs. For example, a customer that often works from home may benefit from USB charging points and additional powerpoints in the study, or a customer that is concerned about safety and security could be interested in additional outdoor lighting, motion sensors and an intercom system,” he says. The wide range of products from HPM and Legrand ensure contractors have an endless array of convenient, fuss-free solutions to offer, keeping their customers at the forefront of design and energy management solutions, while growing their business. The 4.2A (Dual 2.1A) modules are also available in the Arteor and HPM Excel and Linea ranges. For more information contact Legrand on 1300 369 777 or visit www.legrand.com.au The Master Electrician

Spring 2014

the buzz

ASIC tackles rogue operators head on with launch of new Business Checks app Fraudsters have always been out in force within the electrical industry, but how do you ensure that the slick company you’re about to partner with isn’t actually just one audit away from collapse? The Australian Securities and Investments Commission (ASIC) have developed a new smartphone or tablet app to give small business owners an extra level of safety before entering into business transactions with other organisations.

Once you have that information, you can verify its veracity by conducting free searches available through the ASIC Connect portal on the front page of their website, or you can purchase more detailed information.

ASIC Commissioner, Greg Tanzer says what you see on the surface isn’t always what you get.

The app also reminds users to take advantage of free searches, including ASIC’s MoneySmart website, to make sure the company isn’t on the ‘Companies you should not deal with’ list, and that it hasn’t been flagged on any ASIC register. You can also monitor documents lodged by companies by signing up to ASIC’s free company alert service.

“Due diligence needs to start the moment you’re thinking about starting a relationship with a business, not after you find out you’re chasing money from a business that doesn’t exist,” Mr Tanzer says. The app is free on iTunes and Google Play and aims to save business owners time and money by reducing the risks of being inadvertently swindled by unreliable and fly-by-night operators. Business Checks, launched in July, encourages users to ask the right questions from the outset and confirm details like a company’s legal name, ACN or ABN, directors, and principal place of business. www.masterelectricians.com.au

This simple verification process could alert you to mismatched ABNs, former bankruptcies, or a dodgy operator’s history of skipping out on creditors. “There will always be an element of risk when you enter into business transactions, but you can help protect your interests by doing your homework and checking for warning signs,” Mr Tanzer says.

Business Checks also prompts people supplying goods or services on credit to consider protecting themselves by becoming a secured creditor, and asks users to seek ASIC’s help or the help of a professional advisor if they need more information. ASIC says it launched the app after extensive consultation with the small businesses sector. “We understand that time and resources are tight for small businesses, which is why we’ve developed a tool which is free and easy to use. “Small businesses account for 96 per cent of businesses registered with ASIC, so a big focus for us in 2014–15 is providing the sector with information that is not only easily understood, but relevant and accessible,” Mr Tanzer says. Users are asked to report any suspected misconduct immediately. Details on how to make a complaint are on ASIC’s website: www.asic.gov.au

MEA welcomes moves by NSW Government to cut red tape Master Electricians Australia has applauded the New South Wales Fair Trading Commission for taking a common-sense approach in introducing legislation to cut red tape for electricians and make it easier for small businesses to boost their productivity. The Mutual Recognition (Automatic Licensed Occupations Recognition) Bill 2014 means tradespeople from other states will be able to carry out their trade in NSW on the basis of the licence that they hold in their home state. NSW Fair Trading Minister, Matthew Mason-Cox fast-tracked the legislation earlier this year, saying the reforms would benefit small businesses and the wider community. “Business drives the economy and by removing unnecessary business regulation and costs, we can boost our economy, drive down costs for consumers, support job creation, and lift productivity,” Mr Mason-Cox said. The Bill also contains a number of Independent Pricing and Regulatory Tribunal (IPART) recommendations, including the abolition of licences for air-conditioning and refrigeration work. “The removal of duplicative licensing requirements for refrigeration and air-conditioning work in NSW in favour of the Commonwealth licence is expected to generate a net benefit of $16.5 million for industry and save NSW tradespeople up to $860 on licence fees,” he said. MEA NSW State Manager Jody McGann said the Bill was a common-sense and low-cost solution to labour mobility problems, which had long been an issue for electricians in regional border communities. “Fair Trading has put consumer protection and businesses’ needs first by ensuring only appropriately qualified electricians perform work, while removing the need to hold two licences to do the same work in different states.” However, Ms McGann said it was disappointing that the Mutual Recognition Bill only applied to electricians and not electrical contractors. “Fair Trading has taken a big step in cutting red tape for small businesses, but we’d like to see it applied more widely to include all contractors, not just electricians,” Ms McGann said. The recommendations will come into effect in NSW by the end of 2014. The Master Electrician

Spring 2014

feature energy spotlight

Out with the old, in with the new A previously unimpressive, regular office building in Adelaide has earned its place in the sun, now featuring the largest solar powered glass façade in the country. Rebecca Manley explores how a $346,000 solar installation changed the entire face of a South Australian building. Solar installations are being used throughout the world to boost energy efficiency and cut greenhouse gas emissions, but one savvy property investor in Dulwich, Adelaide had the bright idea of using photovoltaic glass solar panels to hide the ageing exterior of his office building in a bid to increase the net leaseability of the property. Building owner Doctor Joe Verco was awarded a grant of $240,000, as part of the South Australian Government’s Building Innovation Fund, to design and construct a west-facing façade consisting of Building Integrated Photovoltaic (BIPV) and translucent glass solar panels. www.masterelectricians.com.au

Installer and Master Electricians member Newman Mundy of Newman Mundy Electrical says optimal sun exposure is more commonly achieved by installing solar panels on the roof of a building, however, in this case, there were multiple benefits to installing the panels on the building’s façade. “Dr Verco wanted to extend the building and give it a muchneeded facelift while also increasing the building’s energy efficiency,” Mr Mundy says. “The project designers managed to fulfill all of these requirements by recommending the installation of solar powered glass panels on the exterior of the building.

“Despite being widely used throughout Europe, solar glass is a relatively new technology in Australia, so we faced a number of challenges early on in the design phase of the project. “We eventually partnered with Canberra’s Laros Technology, who successfully engineered the design, and together we completed the entire installation in just six months, despite original projections the project would take more than one year to complete.” The building’s façade comprises 320 glass panels, each measuring 1.1m by 1.3m. They use 125 watt micromorph thin film technology and sit on aluminum framing that hides the cables and other electrical fittings. Micromorph technology is an advancement on amorphous silicon solar cells (a-Si cells). Traditional thin film a-Si solar cells are made from amorphous silicon and consist of a thin layer of silicon deposited onto a transparent conductive oxide (TCO). Micromorph technology has an added microcrystalline absorber which enables the solar cell to absorb a wider spectrum of light, which edges into the red and near infrared spectrum. The extra absorbent micromorph technology increases cell conversion efficiency (the rate at which sunlight is converted into electricity) by 30 per cent.

Paul Caica, former Minister for Sustainability, Environment and Conservation, says the South Australian Government’s $2 million Building Innovation Fund encouraged businesses to explore innovative methods to reduce energy use and cut greenhouse gas emissions.

“Despite being widely used throughout Europe, solar glass is a relatively new technology in Australia, so we faced a number of challenges early on in the design phase of the project.”

“The State Government introduced the Building Innovation Fund as part of our commitment to supporting new and developing technologies to help reduce the carbon footprint of our built environment,’’ Mr Caica says. “The Fund has supported several feasibility studies and capital works projects to demonstrate the performance of

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The Master Electrician

Spring 2014

20 new technologies and to help the industry to better assess the options available to retrofit existing buildings.” Other projects previously funded by the Building Innovation Fund, which ran from 2008 to 2012, included trialling a green wall and green roof in the Adelaide CBD, developing energy generation technologies, including tri-generation, and using thermography to model building façade improvements. Mr Mundy encourages other electrical and solar contractors to consider using BIPV to replace conventional building materials in the construction of façades, skylights and cladding. “Australia has been slow to uptake this new technology, with two of the biggest BIPV Solar projects being the Gold Coast Suns football stadium, with a solar roof, and the country’s largest commercial solar façade that we installed in Dulwich,” he says. “With technologies and solar solutions like this becoming easier to find, it has become a visual playground for architects and engineers.

“With technologies and solar solutions like this becoming easier to find, it has become a visual playground for architects and engineers.”

“Normal cladding does nothing but protect the building from the elements, by using BIPV cladding, you’re giving a building’s exterior another use and ensuring a return on investment. No cladding has ever done this before!

www.masterelectricians.com.au

“Australia has more available sun than most other parts of the word, so it makes sense for our industry to commonly install BIPV solutions. Unfortunately, there is not enough information about BIPV here, and therefore there are not many companies that have experience in installing this type of solution. “The property sector is beginning to recognise that energy efficiency and carbon pricing are quickly becoming an everyday business consideration, however, increased education and awareness of the BIPV options available is the only way that it will become more common. “Our project in Dulwich has certainly helped secure South Australia as the nation’s leader in retrofitting existing office buildings to significantly reduce greenhouse gas emissions in an innovative manner.”

What is the minimum size of a conductor if it is connected in parallel? A: 15mm

B: Same as neutral

C: 4mm

D: Rated same as protective device

Use a lifeline and phone a friend the MEA Technical Team Expert technical hotline When you join Master Electricians Australia (MEA) you gain access to our dedicated Technical Team who can help clarify those aspects of the wiring rules that you just aren’t sure about, or for those times when you just really need someone to point you in the right direction.

Online resources Our members only website has a wealth of helpful resources. Members can log on to view detailed information on technical fact sheets, Safe Work Method Statements, AS 3000 documentation and much more.

We’re always here for members Our qualified and experienced team is on call for when you need it most. They are available for you any time during business hours with an emergency hotline for after hours advice.

So, what is the minimum size of a conductor if it is connected in parallel? Our Technical team can tell you. Join today! Visit masterelectricians.com.au/join or call 1300 889 198.

We can provide specific advice on: • Wiring Rules • Supply authority meter wiring • Additional electrical requirements for the Building Code of Australia • Special standards for specific industries.

feature business

Cash flow – the lifeblood of every business There is a saying that goes “turnover is vanity, profit is sanity, and cash flow is king!” So if cash flow is king, why is it one of the biggest blind spots in many businesses? Brightwater business guru and coach, Anthony Davis unveils why cash flow is so important and the processes businesses can implement to develop healthy cash flow. The first thing to understand is that issues affecting cash flow start a long time before you need to get paid. Anthony Davis says there are two critical issues that are poorly developed and almost never documented in many businesses – credit policies and debt collection procedures, and they both contribute to successful or unsuccessful cash flow.

“The most important point to note is that there are many steps to manage before the final step of getting paid, and each of these steps impacts on your cash flow.”

“Cash flow is more than just money in and money out. Consider the Working Capital Cycle (Figure 1). While your cycle may vary slightly, all businesses have a cycle,” Anthony says.

“What is your business worth? What are your terms of trade? How do you intend to get paid by those with whom you choose to deal? All of these decisions should precede the sale and will assist you to enter into a contract on terms agreeable to you.”

“The most important point to note is that there are many steps to manage before the final step of getting paid, and each of these steps impacts on your cash flow.”

He suggests that the single most important decision you have to make is to determine your credit policy.

It all begins before the sale “Even before you make the sale, there are some questions you need to ask yourself,” Anthony advises. www.masterelectricians.com.au

Credit policy Credit is the ability to obtain goods or services before payment, based on the trust that payment will be made in the future. Policy is a course or principle of action adopted by an organisation.

Cash

Get paid Debtors Invoice

WORKING CAPITAL CYCLE Inventory

Purchase Creditors Create

Figure 1: Working Capital Cycle

Credit policy, therefore is the time period that you allow your customers to pay for their purchases, the form of payment, the discounts offered for early payment, and the charges applied for late payment. Anthony believes that it is the lack of a clearly stated credit policy that causes the greatest level of debt collection issues and poor cash flow in many trade businesses. “It is common in the electrical contracting industry to ‘give customers credit’, that is allow them to make payment after the work has been carried out. “Be sure you understand why you give credit. Just because it is common in the industry, does not mean you have to. If you build a desired reputation for your business, you can set your own credit policy,” Anthony says. Anthony recalls a client who now takes credit card details with each order. When a job is complete, the card is processed. The result of this action has reduced his debtors from $80,000 to $20,000, recovering an amazing $60,000. Anthony advises that if you expect to be repaid by a certain time, then create a credit policy and ensure that your customers agree to the policy before you deal with them. Remember, when you buy retail, you pay immediately! Now let’s look at the Working Capital Cycle again (Figure 1). Purchasing results in creditors Many businesses over-buy products because they lack purchasing controls. When the supplier offers you a deal that is too good to be true, it usually means that your stock level goes up and your cashflow goes down. Anthony says you should consider the relationship that you have with your supplier. “Many smaller electrical contracting businesses think they are too small to negotiate with larger suppliers. There are always special opportunities that suppliers have, and the reality is if you don’t ask, the answer is already no. “Another important part of purchasing is ensuring you receive what you ordered and pay for what you receive. Having the following systems in place can ensure this happens: purchase order policy www.masterelectricians.com.au

“Delaying getting an invoice to a customer can result in the customer perceiving that payment is not really an issue and therefore delays their payment.” and procedure, order receiving procedure, and quality and theft controls,” Anthony explains. Creating stock and inventory control It is important to consider how well you control your purchased or manufactured stock. Everything used as stock affects both cash flow and profitability. If you consider stock as anything that you can convert into dollars, you will see that it is more than just the items you purchase. “The trades industry is well known for ‘weekenders’, where tradies help out a friend on the weekend. While you have little control over what your employees do in their own time, you can control what happens to your stock,” Anthony says. Anthony recalls another client who investigated the cash purchases made by his team, only to realise that some purchases were used for off-the-clock weekend jobs. “Whether it is a physical item or a service provided, you need to be in control of the productivity and the usage associated. Any variations from cost expectations affect your cash flow and ultimately, your profitability,” he says. Invoicing creates debtors Anthony says when you issue an invoice, you are communicating your customer’s indebtedness, as agreed when you made the sale. “Delaying getting an invoice to a customer can result in the customer perceiving that payment is not really an issue and therefore delays their payment. “Your credit policy should determine exactly how you expect to be paid. A great place to start is by taking a deposit, or new clients paying the initial transaction in full, in advance and then giving a credit account. The Master Electrician

Spring 2014

24 “There are also a variety of new payment technologies available that allow businesses to invoice on site. This can communicate a sense of urgency and give your customers a chance to query the information immediately. “Following this, if the client doesn’t pay, you can then implement your debt collection procedure,” Anthony advises.

Bright Ideas Business series

Debt collection procedures Anthony says the best debt collection system in a business is one you don’t need to use. “A well implemented credit policy will ensure a minimum use of your debt collection procedure. “Trying to impose credit terms after you have provided your product or service is like closing the door after the horse has bolted! “Even with a very strong credit policy, there will always be an opportunity to use a debt collection procedure, however there must be an accounting process to track if debts are being paid on time. “The tougher you are at policing your debt collection procedure, the less likely your customers will exceed your credit policy. Your procedure must be well documented and start the day the credit policy is broken. “A debt collection system should include phone scripts, letter templates including a letter of demand, and if all else fails, use a collection agency. “Every business has its difference but the core principles are the same. Cash is the lifeblood of business, without proper cash flow management and planning, your business will suffer.”

Master Electricians Australia, in conjunction with Brightwater Business Coaching , provides a series of free business development sessions- Bright Ideas Business Series. The sessions, which run throughout the year, are practical presentations designed to equip tradesmen and their support team with the knowledge to become better business owners and managers. To find out more about the Bright Ideas Business Series visit: www.masterelectricians.com.au/bright_ideas Master Electricians members can also watch previous Bright Ideas events and download the event worksheets on the members website. Visit: www.members.masterelectricians.com.au

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benefit spotlight

The rising tide of workplace relations With a virtual flood of workplace relations issues affecting electrical contractors across the nation, Master Electricians membership can help keep your head above water.

THE field of workplace relations can be a diverse and

complicated one, forcing business owners and managers to navigate issues such as wages and superannuation, terminations and redundancies, and a host of legal obligations. Add to the mix regular legislation changes at both a state and national level, and it can certainly feel like you’re battling your way through a flood of workplace relations issues. The support of qualified experts, who can offer assistance on everyday workplace concerns, and a platform for having your voice heard are valuable life rafts for electrical contractors when times get tough. Upon joining Master Electricians Australia (MEA), members get exclusive access to the Workplace Relations Team, who offer a great variety of benefits to assist members. Members can quickly access advice on a range of problems through the Workplace Relations Hotline – a team of dedicated staff members, just a phone call away.

www.masterelectricians.com.au

“The support of qualified experts, who can offer assistance on everyday workplace concerns, and a platform for having your voice heard are valuable life rafts for electrical contractors when times get tough.”

The Workplace Relations Hotline is your first port of call for a wide range of issues, including employment contracts, wages advice, award interpretation, redundancies, and workplace policies. And with over 5,500 cases resolved successfully in the last 12 months, it has clearly been an enormous benefit to members.

If a larger issue arises, the team also offers consultation to help alleviate the situation. Members can get assistance for enterprise bargaining agreements, unfair dismissal applications, general protection claims, and more.

“If that means taking an issue to the federal government, like last year’s fight to keep apprentice wages from becoming unsustainable, or addressing concerns regarding licensing, then we take it to the government.

Additionally, a range of online resources are available exclusively to members, including detailed information on allowances, leave entitlements, payroll tax, union and industrial action, and workers compensation, as well as a yearly release of Wage Summary Sheets.

“We represent the best of the electrical trade across the country. Our ultimate goal is to not only support, but strengthen our industry for members and the community.”

These valuable resources are available exclusively to members, providing contractors with the necessary tools to manage their workplace relations needs. In the past 12 months alone, MEA has advocated many national issues, including the increase to apprentice wages in 2013, and a recent submission regarding unfair contracts in small business. MEA General Manager of Workplace Policy, Jason O’Dwyer says it’s about giving members two key benefits. “Firstly, we want members to see our Workplace Relations Team as their own virtual human resource team. “Secondly, it’s about giving our members a chance to participate and have their say on broad policy issues, like licensing, safety, consumer law, and trade, across a number of areas, not just workplace relations at national and state level. “We regularly represent our members in arenas they couldn’t otherwise access, calling on the big players to make changes for our members,” he says.

MEA Human Resources Manual MEA’s Human Resource Manual is designed to provide contractors with the resources and knowledge to deal with everyday situations that may arise in the workplace. The manual comprises a range of templates, policies and procedures, employment contracts, and information on recruitment and interview techniques, leave entitlements, record keeping requirements, managing performance, and more. The MEA Human Resource Manual is available to purchase as an electronic copy, allowing users to personalise with their company logo and details. Master Electricians member price: $150 ex GST Non-member price: $850 ex GST To purchase a copy, simply call 1300 889 198 or email wr@masterelectricians.com.au

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The Master Electrician

Spring 2014

meet a master electrician Name: Anita & Michael Payet Company: Assurance Solar & Electrical and Assurance Consulting State: Queensland Status: Master Electricians Member

What’s the most rewarding aspect of running your own business? Anita: Working from home, designing my own day, and not having to travel in the eight-to-five traffic rat race.

Assurance Solar & Electrical husband and wife team, Anita and Michael Payet share the secret to running a successful business alongside a strong marriage. As a child, what career aspirations did you have? Anita: My parents owned a painting contracting business, so having a family business of my own has always been an aspiration of mine. Michael: I still don’t know what I want to do! I did spend a lot of time pulling things apart when I was growing up. I commenced a mature age electrical apprenticeship and was fortunate enough to get an excellent, experienced and passionate mentor who passed on that attitude to me. As a husband and wife team, how do you keep work and your personal lives separate? Anita: Having a home office does sometimes blur the lines between work and home. We find it’s better to get out of the house in order to have quality time where we’re not thinking about work. Working together is rewarding because I get to spend most days with the person I chose to spend my life with, but it can be challenging because we have had to learn how to work and communicate with each other as individuals with very different ways of seeing things. Michael: I find it very difficult to separate the business from our personal life. Most dinners Anita and I have are usually addressing some portion of the business. We have realised that boundaries are www.masterelectricians.com.au

extremely important, so Sundays are usually just for each other… and our cats! There’s no use having a great business, but a failed marriage. What do you believe sets your business apart from others in the industry? Anita: We are not your typical solar and electrical installation company. We offer energy auditing, consulting and monitoring services to our clients. This is the result of Michael’s passion for helping people and businesses make better energy efficiency decisions by providing them with accurately costed solutions to saving on their power bills. Michael: We connect our clients to the very best technologies and assist them to plan for the future, and in the process, create massive improvements to their bottom line with a fantastic return on their investments. I’m one of only a few people in Australia who has completed a Certificate IV in Energy Efficiency and Assessment, (through Master Electricians SkillsConnect) so that, combined with Anita’s wealth of business, legal reporting, and analysis skills, means we have something truly unique to offer the industry. What motto do you like to do business by every day? Anita & Michael: We love turning energy efficiency sceptics into believers by getting results.

Michael: The great relationships we make with our clients, knowing that we have come into someone’s life, helped them reduce their energy expenses, and taken a bit of stress out of their everyday. What does the future hold for Assurance Solar & Electrical? Anita: Assurance Solar & Electrical is in the process of rebranding and expanding to include the services of Assurance Consulting. With the new arm, we will be able to offer dedicated energy auditing and consulting services to businesses, as we feel there is a real need for this in the industry. Michael: We want to be known as the experts in energy efficiency and energy auditing in South East Queensland. We strive to be a business that clients can trust. What’s your favourite activity to help you wind down and keep a healthy work/life balance? Anita: We love to travel, and find travelling a great way to escape work and experience what this world has to offer. Michael: Anita and I love eating out. We have been known to drive more than 45 minutes just to find a great restaurant — that’s our thing!

Assurance Consulting is interested in partnering with other Master Electricians members to deliver expert energy saving solutions. For more information visit www.assurancesolar.com.au

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regulator wrap up the latest state news from regulators ELECTRICAL SAFETY OFFICE

QLD

ARE YOU AN ELECTRICIAN WHO SUB-CONTRACTS TO AN ELECTRICAL CONTRACTOR? Many tradies, particularly in the building industry, work on a sub-contract basis for a primary contractor, instead of working as employees. However, if you are an electrician carrying out electrical work under a sub-contract for another electrical contractor, you must hold an electrical contractor licence. This is to

FAIR TRADING

NSW MOVE TO IMPROVE HOME WARRANTY INSURANCE

The NSW Government is working to improve the sustainability of the Home Warranty Insurance (HWI) scheme, ensuring it continues to meet the needs of homeowners and the building industry in NSW. Minister for Fair Trading, Matthew MasonCox announced that the Government will initiate a review of the scheme to keep it on a sustainable footing and ensure that it provides adequate protection for homeowners while minimising costs for builders. “Home warranty insurance is a key consumer protection in the residential building sector. It is the safety net that provides cover for consumers in the event that a builder dies, disappears, or becomes insolvent. “The review will consider a range of matters to ensure the sustainability of the scheme,” Mr Mason-Cox said. Home warranty insurance is mandatory in NSW for residential building work valued at more than $20,000, unless exempt. www.masterelectricians.com.au

ensure that those responsible for electrical work are clearly accountable. For example, an electrical contractor is contacted by a builder to conduct the electrical installations for a number of homes. The electrical contractor does not have the workforce to complete all the buildings on time, so they may subcontract out the electrical installation work on a dwelling-by-dwelling basis. Those who perform the sub-contracted installations are conducting business or undertaking that includes the performance of electrical work, and under s56 of the Electrical Safety Act 2002, they must therefore have an electrical contractor license. The primary electrical

The NSW Government currently underwrites the scheme, which is funded by premiums and established under the Home Building Act 1989. The review will build upon recent changes to the Home Building Act. This includes clarifying what constitutes minor and major defects, thereby reducing conflict between builders and customers; outlining tougher penalties, including prison sentences for repeat offences; and regulating the removal of HWI for owner builders.

contractor should always check that their sub-contractor has an electrical contractor licence. The sub-contractor for the electrical installation, as the person who carried out the electrical work, is responsible for ensuring that the electrical work complies with the wiring rules and any other applicable standards, and that it is tested to ensure it is electrically safe. The subcontractor must also provide a Certificate of Test for any work carried out to the primary electrical contractor who subcontracted them. For more information, visit www.electricalsafety.qld.gov.au or call 1300 650 662.

Mr Mason-Cox said it was important that the scheme continued to meet the needs of the community and the building industry. “I will set up a stakeholder working group to assist in developing options for the Government to consider,” he said. Refinements to the scheme will be progressed in the first half of 2015 as part of a package of reforms relating to multiple occupancy of buildings, security of payments, and community title. Visit www.fairtrading.nsw.gov.au for more information.

OFFICE OF THE TECHNICAL REGULATOR

NEW SA FORUMS The Office of the Technical Regulator, in conjunction with Master Electricians Australia (MEA), is hosting a new series of forums across the state throughout September and October. The forums present an excellent opportunity to stay informed on relevant and local industry issues, as well as keep abreast of the latest standards and trends in our ever changing industry. A panel of government and industry representatives will be present at each forum for a Q&A

style segment where attendees can ask questions and receive clarification on topics such as standards, product compliance, technical issues, and safety. Topics covered at the forums include: • Business risk assessment • Sham contracting • Product recalls and your responsibilities • Australian Standards updates • Service and installation rules • LED lighting standards For dates, and to secure your place at one of the forums, simply visit www.masterelectricians.com. au/saforums

ENERGY SAFETY

NEW CHANGES TO SMOKE ALARMS The new national smoke alarm laws featured in the Building Code of Australia came into effect on 1 May 2014, and require electrical contractors to interconnect smoke alarms in domestic installations when more than one alarm is installed. Due to concerns from industry stakeholders who felt that they could not comply with the new requirements before the 1 May deadline, buildings in Western Australia have a one year transition period to comply with the interconnection requirement.

Buildings that were constructed or approved for construction before 1 May 2015 and are: • Subject to sale, transfer of ownership, rent, or hire • Require replacement smoke alarms in a dwelling subject to sale, transfer of ownership, rent, or hire will not be required to have smoke alarms interconnected. For dwellings under construction, smoke alarms must comply with approved plans and specifications associated with the building permit. For further information visit www.buildingcommission. wa.gov.au

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Spring 2014

regulator wrap up ENERGY SAFE VICTORIA

VIC

ESV WARNS ONLINE ELECTRICAL TRADERS Energy Safe Victoria (ESV) has launched a campaign to warn online electrical retailers who supply USB power adaptors that these items are classified as prescribed electrical equipment and must be certified prior to sale. The campaign comes after the tragic death of a woman was caused by an unapproved and non-compliant USB charger. ESV Director, Paul Fearon said that this tragedy highlights the problem we now face, whereby retailers and customers can purchase and import electrical goods via the internet that do not meet Australian Standards. USB power adaptors must be electrically safe and compliant to the relevant

standards, and be approved prior to sale. Hazards identified with non-compliant and unapproved power adaptors include: • Risk of electrocution or electric shock • Risk of fire and property damage • Risk of damage to equipment connected to the device. Under the Victorian Electricity Safety Act 1998, suppliers selling unapproved and non-compliant power adaptors or chargers may face prosecution in the Magistrates Court, and can be fined up to $5,904 for individuals and $29,522 for companies for each breach. Other States and Territories in Australia also have penalties for selling unapproved and/or unsafe electrical equipment. ESV has legislative power to require a supplier selling unsafe electrical equipment to recall that product. Other states of Australia have similar legislative requirements.

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Approved electrical equipment is required to display a regulatory compliance mark or unique approval number. Approval markings can vary between states, but typically they have an alphanumeric code, for example ESV140000. More examples can be found on the ESV website in the Electricity Professionals section. The Electrical Regulatory Authorities Council’s national certification database is a register for approved electrical appliances. A quick search of the approval number or model number will show whether equipment has a current safety approval. ESV and other state regulators will be conducting electrical safety audits on online trading sites. Suppliers of unapproved or non-compliant electrical equipment should cease trading immediately to avoid fines or prosecution. For more information visit: www.esv.vic.gov.au

RENAULT VANS PUT A SPARK IN YOUR DRIVE.

TRAFIC SWB FROM $32,990 DRIVE AWAY* MASTER SWB FROM $39,990 DRIVE AWAY*

Renault light commercial vehicles are Europe’s number one selling range of vans. Take a closer look and you’ll see why. The Trafic SWB is one of the most versatile in its class with a load space of 5m3 and a towing capacity of 2,000kg. The turbo-diesel Master boasts a load space capacity of 8m3 and has been designed for maximum manoeuvrability without compromising on space or capability. ENDS OCTOBER 31. VISIT YOUR RENAULT DEALER OR RENAULT.COM.AU *Recommended drive away prices for the Trafic L1H1 SWB manual and Master L1H1 SWB manual, each with non-metallic paint. Valid for vehicles ordered between 01/09/2014 & 31/10/2014 while stocks last. Renault reserves the right to vary, extend or withdraw this offer. Offer not available for Govt. buyers. ABN holders only. †Warranty valid for 3 years or 200,000km (whichever comes first) from new. Demonstrator vehicles receive balance of new vehicle warranty. Roadside Assistance terms and conditions apply. Call our Customer Service Team on 1800 009 008 or view the Terms and Conditions statement at www.renault.com.au/drivingpeaceofmind for details. Scheduled services capped at $349 per service for 3 years or 45,000km (whichever comes first) on new or demonstrator Trafic models only and 3 years or 90,000km (whichever comes first) on new or demonstrator Master models. Offers based on standard scheduled servicing from new and normal operating conditions. If the vehicle is not presented within three (3) months of the due date for the scheduled service, the vehicle forfeits the right to that capped-price service under the program.

letter of the law

Reform of unfair contract terms to protect small businesses Current Australian Consumer Laws protect consumers from unfair terms in standard contracts that leave little or no room for negotiation, but what about small businesses? Consumer law expert Rawia Elsleiman sheds light on the recent push for consumer laws to protect the little guy. Small businesses have been likened to consumers in that they are offered standard form contracts by larger businesses, and in such dealings, they may lack bargaining power, legal expertise, and negotiating skills, leaving them exposed to unfair contract terms. Recently, there has been a push for the unfair contract term provisions provided for in the Australian consumer laws to extend to small businesses. This vulnerability of small business has been recognised by the Commonwealth Government, and through Consumer Affairs Australia and New Zealand (CAANZ). Currently the courts have the power to void an unfair contract term where it: 1. Causes a ‘significant imbalance’ of the rights afforded to the consumer to that of the contracting business or supplier 2. Is not reasonably necessary to protect the legitimate interests of the party who would benefit from the term and where it was relied upon by the advantaged party 3. Would cause damage to the consumer. On 23 May 2014, CAANZ released its consultation paper titled Extending Unfair Contract Term Protections to Small Businesses to determine whether government intervention in this area may be necessary (Consultation Paper). It welcomed submissions from stakeholders up until 1 August 2014, allowing them to comment on how best to address these problems encountered by small www.masterelectricians.com.au

businesses, and it has indicated that the extension of existing unfair contract terms in the Australian Consumer Laws is a preferable choice. Considerations It is undeniable that a contract is vital to business dealings, as it records the promises made by the parties and identifies the measures of enforcement for an aggrieved party where the terms of a contract are not met. Additionally, a standard contract is both useful and necessary, as it promotes the efficient and effective transaction process of a business without their having to negotiate the same terms with each and every party each and every time. However, the fundamental issue is that because a standard contract is prepared by only one of the contracting parties, the party proposing the standard contract may include terms to its own benefit and the other party’s detriment, thereby unfairly allocating the risk of the transaction. Contract benefits may include the power to: 1. Amend or vary the contract 2. Terminate the contract 3. Control the resolution of dispute, and 4. Dictate time bars on claims.

Nevertheless, small businesses may agree to standard contracts without understanding their rights and obligations under the contract. This may be because they fear that they will miss out on commercial opportunities, and/or because they assume that the proposed arrangement is fair and equitable. Unfortunately, this only leaves them exposed to unfair contract terms and commercial manipulation.

While the effects of the respective consultation are not known yet, any changes to legislative provisions relating to unfair contract terms will likely affect Master Electricians members Australia-wide. Changes may include:

Legislative amendments A simple legislative provision to capture small business contracts is among the options considered by CAANZ. As the Australian Consumer Laws do not provide a definition for small businesses, the inclusion of the related provisions would need to be considered carefully and weighed up against the costs. The greater the scope of small businesses captured by the reforms, the higher the costs of compliance.

3. The types of contracts covered by the reforms, and

CAANZ is considering a definition of small business based on: • A business-to-business, excluding publicly listed companies • Transaction threshold (focusing on the transaction amount, rather than the nature of the contracting parties) • The business’s annual turnover • The number of employees.

1. Whether the reforms will be limited to small business 2. How a ‘small business’ will be defined

4. W hether protections will be limited to contracting with large businesses. Public submissions to the Consultation Paper expired on 1 August 2014, and the Consumer Affairs Ministers from each state and territory will now meet to discuss the appropriate steps. Master Electricians Australia will notify members of any further developments regarding this issue. It is important that businesses obtain legal advice to understand and manage their risks prior to entering into contractual dealings. For further information contact Doyles Construction Lawyers on 1800 888 783 or email doyles@doylesconstructionlawyers.com Written by Lawyer Rawia Elsleiman from Doyles Construction Lawyers.

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The Master Electrician

Spring 2014

the interview

Nigel Hadgkiss Director of Fair Work Building and Construction, Nigel Hadgkiss has been tasked with cleaning up the industry since his appointment to the role last year. His tough stance on rogue operators has earned him a fearsome reputation. Lisa Carter sits down with Mr Hadgkiss, and hears about his determination to stamp out unlawful industrial tactics.

You’ve taken a tough stance since your appointment as Director of Fair Work Building and Construction (FWBC) in October 2013, taking prosecutions and action on many fronts to ensure compliance. How has your former career with the Australian Federal Police (AFP) influenced your attitude towards those within the industry who engage in dishonest tactics? My time at the AFP instilled a greater awareness of the nature of organised crime and how truly detrimental it can be, especially once infiltrated throughout other parts of society. There are parallels between the thuggery and systematic unlawful activity that is rife within Australia’s building and construction industry and what I observed of the disregard for the rule of law during my time with the AFP. I personally believe that there have always been elements within the building and construction industry that have thought the rule of law does not really apply to it. So the attitude I brought with me to my role was that the law must be upheld without fear or favour, as I believe you cannot be protected by the law, and yet not be subject to it. Former US President Theodore Roosevelt once said, “no man is above the law and no man is below it, nor do we ask any man’s permission when we ask him to obey it”. Workers, employers, and unions all play a critical role in the industry, and therefore must equally follow the laws in place. You spent five months studying Comparative Methods for Combating Organised Crime in Northern Ireland, Italy, Switzerland, Germany, England, the USA, and Canada, as a Winston Churchill Fellow early in your career. What were the most important things you took away from that experience? At that time, Australia had largely been sheltered from a number of organised crime trends being increasingly experienced by Western countries, for example outlaw motor cycle gangs and crystal methamphetamine (ice). We were soon to follow suit. On a positive note though, I realised that Australian law enforcement methodology, particularly our use of information technology at the time, was as good as, if not better, than most of the agencies I spent time with. You’ve spent your entire career striving for criminal justice, beginning with the Hong Kong Police Force and rising to Assistant Commissioner with the AFP, then the National Director of Intelligence with the National Crime Authority (Australian Crime Commission), before bringing that expertise to the construction industry. What drives you to continue in such a difficult and controversial field, and why do you do what you do? Despite the highly charged nature of the work and the current state of the industry, I continue to receive great satisfaction in simply getting on with the job, with the hope of eventually leaving the industry in a better shape than it was when I began

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“... the law must be upheld without fear or favour, as I believe you cannot be protected by the law, and yet not be subject to it ...” in 2002. My vision, ambitious though it is, is to create a building and construction industry where all participants accept, without reservation, that the rule of law applies to them as it would if they were engaged in any other industry, and people can actually go to work each day free from unlawful industrial action, free from coercion, and free from downright thuggery. There are work practices within the construction industry that many would suggest are hostile and highly adversarial — how will the work that you do impact on these negative cultures? Upmost and foremost, the agency will uphold the rule of law. Put simply, if you breach workplace laws, we will investigate you, and where appropriate, we will put you before the courts. This unequivocal stance is the platform to create a new culture within the industry. Unlawful industrial action is, regrettably, commonplace in the industry, and has a serious impact on productivity. Ensuring it does not occur and taking appropriate action when it does are therefore key components of our core business. For example, as well as commencing proceedings against those who organise and procure industrial action, the FWBC has commenced proceedings against individuals who have engaged in the unlawful industrial action. You may have heard in the news in the past few months of 33 West Australian workers whom the Federal Court found had engaged in unlawful industrial action on a huge Woodside project in the Pilbara, and imposed monetary penalties on them for that conduct. After allowing all parties an extension of time to pay any outstanding penalties, some penalties remained unpaid. The step was then taken to enforce the Court’s orders, and in some cases that included laying claim to respondents’ cars and placing caveats on their houses to ensure the penalties were paid. This is the same situation that would apply for a failure to pay a civil penalty ordered by the Court in any other aspect of civil life. Despite protest from one union, I remain steadfast in stating that it is not up to me to simply pick and choose who must respect court orders and who may choose to ignore them. For the rule of law to apply in a just and fair manner, it must be applied consistently, without fail. Our work in addressing right of entry laws is also a huge part of our core business. Earlier this year, we published a list on our website of union officials who do not hold a current right of entry permit.

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The Master Electrician

Spring 2014

38 This list is a critical tool for site managers. A recurring and alarming theme emerging is that of union officials using alleged safety concerns to get on site, but as soon as they get past the site office, they seem to forget all about the safety issues that they are purportedly there to investigate. Every time a union official misuses safety as a guise for an industrial agenda, it undermines the very system established to protect workers when a legitimate safety issue occurs. Building and construction workers have a hard job to perform. They are entitled to carry out that job in a safe working environment.

and had a presence on building and construction sites. At the end of the day, I would like to help sub-contractors and workers get on with their jobs whilst feeling free from the kind of unlawful conduct prevalent on construction sites. In Australia in 2014, no worker should feel frightened to go to work feeling intimidated and threatened by third parties. What changes have you seen in the agency you left in 2008 and the one you returned to at the end of last year? When I took over as the head of FWBC at the end of last year, I found an agency that was a shadow of its former self the ABCC.

You’ve been quoted as saying you’re trying to unwind a general loss of confidence in the agency and make We now have reduced powers to it easier for those in the industry to investigate unlawful behaviour. This makes report issues. How do you think this will affect subcontractors, as opposed to developers and builders? “... I would like to help sub-contractors When it comes to unlawful workers get on with their jobs ...” conduct such as coercion and adverse action, subcontractors such as electricians are just as exposed to unlawful behaviour on it that much more difficult to deal with the worksites as workers employed by the kind of conduct we continue to confront head contractor. This kind of conduct on construction sites. directly affects workers’ access and, at Likewise, the heavily reduced penalties do times, their wellbeing. As a result, they not necessarily appear to be an effective are encouraged to come forward to the deterrent. I find it unfortunate that some agency with concerns that they may wish in the industry consider civil penalties to to discuss. simply be the cost of doing business. At the time when I left the Australian That this view exists in the industry does Building and Construction Commission not bode well for the goal of ensuring (ABCC) in 2008, the feedback that I universal respect for the rule of law in received was that contractors, big and the industry. small, and workers wanted an agency that For instance, the Construction, Forestry, was timely in responding and an agency Mining, and Energy Union and its affiliates that one could confide in. Above all, have been penalised almost $4.7 million they wanted an agency that was visible

www.masterelectricians.com.au

since 2005 in cases brought by this agency and the ABCC. One senior official has personally been penalised more than a quarter of a million dollars following 13 actions taken by us (FWBC and ABCC). The feedback that I was receiving at the time of my departure from the industry in October 2008 was that some progress was being made. Since then, not only do I believe this progress has stopped, but unlawful conduct on Australian building and construction sites has regressed. Your appointment has brought with it an extremely high level of expectation about cleaning up the industry. How difficult is it to withstand the pressures, and how do you ‘switch off’? I would say that the immense satisfaction I receive from the job outweighs the pressures and demands that you mention. Having witnessed, over many years, the extent of serious unlawful conduct within the and industry has only focused my determination to get the job done in as swift and thorough a manner as possible. The late American artist Andy Warhol once said, “... they always say time changes things, but actually you have to change them yourself”. Despite the size of the task, I truly enjoy the challenge, and I am certainly not waiting for time alone to change the dreadful culture prevailing within the industry. My staff, who sometimes travel interstate with me, can tell you that I am a keen walker, as I encourage them to walk with me each morning to start the day. I would say walking is a way to ‘switch on’ rather than off! It is great mental therapy and helps one plan the day ahead. My favourite way to spend a weekend is with family or entertaining friends at home.

gadget guide

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MILWAUKEE M18 JOBSITE RADIO CHARGER

BACKBONE SPARKIES WATCH

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The M18 Jobsite Radio/Charger is the first charging radio to bring the power of Bluetooth to the jobsite.

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The tool is ergonomically designed for comfortable repeat use and requires minimal force. Constructed from cast alloy, the Quick Termination Tool is suitable for Actassi Cat.6 and Cat.6A UTP connectors and accommodates 30 Mech and keystone connectors. It features a locking handle for neat storage, and its small size makes it easy to store in your tool box. Trade Price: $80.69 Visit: www.clipsal.com

Delivering optimum reception and sound, it lets you stream wireless audio from up to 30 metres away. Equipped with a reinforced roll cage to protect against harsh conditions, this radio allows you to charge your M18 batteries or any other devices you need via USB port. Its weather-sealed auxiliary compartment provides protection for small belongings, and has a flip-up stand for electronic devices. To top it all off, the Milwaukee radio has a built-in bottle opener.

Lightweight, durable, and strong with no exposed metal, the Sparkies Watch is ideal for keeping track of time during the busy workday or at play. Available in a range of six colour combinations, the water resistant watch comes complete with a date function, a comfortable and hard-wearing silicone rubber strap with polycarbonate buckle, a strong polycarbonate case with moveable bezel, and a polycarbonate case back. RRP: $49.95 Visit: www.sparkieswatch.com.au

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Single & 3 phase installation testing to AS/NZS3017 covering earth continuity, insulation resistance, polarity, correct connections, fault loop impedance and RCD testing.

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Call EMONA on tel: 1 800 632 953, email: testinst@emona.com.au or www.instaltest.com.au The Master Electrician

Spring 2014

techno biz

THERMO SCIENTIFIC MICROPHAZIR AS ASBESTOS ANALYSER The Thermo Scientific microPhazir AS is a handheld analyser designed for the screening and identification of asbestoscontaining materials. The analyser delivers accurate results on the spot, enabling users to perform rapid screening. The 1.25 kg device minimises work delays and inspection costs due to sample processing and helps ensure worker safety during material handling. Powered by near infrared spectroscopy, a proven analytical technique used in laboratories for quality analysis and material identification, the device is designed for ease of use by non-experts with limited operational training. Visit www.thermofisher.com.au/ microphazir for more information.

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SICK FLEXI LOOP Flexi Loop is a cost-effective way to cascade safety switches and sensors within a machine while also supporting diagnostics. Flexi Loop makes it possible to cascade up to 32 safety sensors while maintaining the highest level of safety. Any combination of safety switches and safety sensors with OSSD outputs can be used, regardless of the manufacturer. This type of system set-up ensures the continuous diagnosis of all door switches, emergency stop push-buttons, and sensors.

PHILIPS GREENSPACE GEN3 LED DOWNLIGHT Philips has released the GreenSpace Gen3 LED downlight, an easy retrofit solution for conventional compact fluorescent downlights. With an average lifetime of up to 50,000 hours and significant energy savings compared to conventional downlights, GreenSpace is both an energy and cost efficient LED choice, ideally suited to commercial applications including hospitality, office, retail and public areas.

Used in connection with Flexi Soft, the entire safety application can be tailored to meet the user’s needs – cost effective, personalised, and efficient.

The new GreenSpace is available in 105mm, 152mm, and 203mm cut out sizes and can be specified in a range of system wattages and lumen combinations with a choice of two rim finishes: classic white, or aluminium.

Visit www.sick.com.au for more information.

Visit www.philips.com.au for more information.

feature tech talk

Certification requirements for patient areas For contractors carrying out electrical installations in ‘patient areas’, it is important to understand the requirements under AS/NZS 3003:2011. Here we explain how electricians can ensure that their work meets the requirements for certification.

ELECTRICAL installations in patient areas have special

electrical requirements under AS/NZS 3003:2011. Patient areas are classified in clause 2.2 AS/NZS 3003, and are either classed as body-protected electrical areas or cardiac-protected electrical areas. If the design of the installation does not clearly define the patient areas, discussions with the health care facility or owner must be undertaken to determine the patient areas. Unless the electrical contractor is fully versed in AS/NZ 3003, a professional specialising in this standard should be consulted with the advice documented.

Cardiac-protected electrical areas Patient areas are to be wired as cardiac-protected electrical areas if cardiac-type procedures will be undertaken in the area. The specific cardiac-protected electrical areas listed in AS/NZS 3003 are: a. Cardiac catheter laboratories and control rooms b. Cardiac ICU c. CCU d. ICU with regular thermodilution Swann-Ganz monitoring The Master Electrician

Spring 2014

42 e. Neo natal ICU (level 3) f. Operating theatres for cardiac and thoracic surgery. Body-protected electrical areas Patient areas not wired as cardiac-protected electrical areas may need to be wired as body-protected electrical areas. The specific body-protected electrical areas listed in AS/NZS 3003 are: a. Accident and emergency wards b. Blood collection areas c. Chiropractic and physiotherapy treatment rooms d. CT rooms e. Day procedure theatres

a. The verification and testing requirements of AS/NZS 3000

f. Delivery suites

b. Testing of equipotential earthing system in protected electrical cardiac-protected electrical areas

g. Dental surgeries h. Endoscopy theatres and procedure rooms i. General medical and surgical wards j. High dependency wards k. MRI rooms l. Nurseries m. Operating theatres intended for non-cardiac surgery n. Patient en-suite bathrooms, shower rooms, toilets, etc o. Patient examination rooms in outpatients p. Plasmapherisis areas q. Plaster rooms r. Recovery areas or wards associated with operating theatres and imaging rooms s. Respiratory function laboratories t. Resuscitation bays u. Stress test rooms v. Treatment rooms w. Ultrasound rooms x. X-ray rooms y. Doctors consulting room z. Nursing homes. Once the patient area has been classified, the installing electrician must install to the requirements of AS/NZS 3003. The standard includes quite a number of specific requirements for each electrical area, including, for example: a. Separation of circuits b. Leakage Protection Devices, for example 10mA RCD c. Marking and identification d. Special earthing and equipotential bonding. When an installation is complete, AS/NZS 3003 requires specified testing and commissioning over and above the mandatory tests required by AS/NZS 3000. The testing and commissioning is required for all new work, alterations, and additions. It includes repairs and shall satisfy theÂ following: www.masterelectricians.com.au

c. Testing and operating of LPD devices d. Marking and identification requirements, and e. Correct equipotential earthing format (section 4 of AS/NZS 3003). Compliance with item A shall be confirmed by a written statement signed by the electrical contractor or electrician who has carried out the work. The statement shall be in accordance with Appendix F of AS/NZS 3003, which is a documentation of compliance to AS/ NZS 3000:2007. Each state and territory has different requirements for who can perform the compliance of items B to E. Some states and territories allow the contractor who performed the work to certify, although some require a licensed inspector to perform the certification. If the contractor who performed the work is to certify the work, previous experience in certifying areas to AS/NZS 3003 may be required. NSW, NT, QLD, SA, TAS and WA requirements The NSW, NT, QLD, SA TAS and WA regulators will accept a certificate of compliance issued by an electrical contractor as evidence of compliance. The contractor will need documented evidence to satisfy the regulator and the health care facility that they have the required experience in the area. The health care facility may also stipulate external certification. ACT requirements The ACT Regulator will not accept a certificate of compliance issued by the installing electrical contractor as evidence of compliance. On completion of the testing and verification, the installing electrician must submit a report to the electrical inspectorate, and the certification must be completed by an independent competent person, for example a licensed electrician, licensed inspector, qualified engineer, or persons acceptable to the health care facility. VIC requirements The Victorian Regulator will not accept a certificate of compliance issued by the installing electrical contractor as evidence of compliance. In Victoria, any work in a medical establishment must be inspected on completion by an M Class Inspector. If a contractor does not have experience in electrical installations wired to AS/NZS 3003, it is recommended that they engage the services of an experienced electrical engineer or professional to design and certify the installation. For further information or advice, Master Electricians members can contact the Technical Department on 1300 889 198.

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workplace relations

ACTU stabs employers with budget pain “Australia should be a nation of lifters, not leaners”. That is the message from Treasurer Joe Hockey in his tough budget, which featured welfare cuts, tax increases, and cuts to health and education. As the Government wrestles with the minor parties to pass its measures, the Australian Council of Trade Unions (ACTU) and affiliated unions have sought to leap on employers before the ink on the budget bills is even dry. In response, the ACTU has produced a “bargaining toolkit”, which is passed on to employers, to help unions pursue claims that offset Federal Budget measures. This includes the $7 GP co-payment, a freeze on child care rebates, and the re-indexation of fuel excise. www.masterelectricians.com.au

The bargaining toolkit is expected to attract strong support from most of the ACTU’s affiliated unions. Unions will target employers of the four million Australian workers who are covered by enterprise bargaining agreements and will fight to get these clauses into all new agreements.

ACTU secretary Dave Oliver argues that the Government is targeting working Australians while giving big business a 1.5 per cent cut in company tax and freezing the increase in the superannuation guarantee. While the Government reconfirmed its commitment to a reduction in the corporate tax rate in this year’s Federal Budget, the benefit of any rate reduction for many companies will be offset by the Government’s previously proposed Paid Parental Leave (PPL) Levy.

“The bargaining toolkit is expected to attract strong support from most of the ACTU’s affiliated unions.”

The reduction to the corporate tax rate should benefit companies across all sectors, but in particular smaller companies, which will benefit from a much needed cash flow boost to support business activity and growth. However, for larger companies (with taxable income in excess of $5 million), any expected benefits from the rate cut will be largely offset by the imposition of the PPL Levy at the rate of 1.5 per cent, to be imposed on the taxable income that exceeds $5 million. Effectively, for those companies subject to the PPL Levy, the total company tax take will remain close to 30 per cent. For these businesses, the budget gave no real benefit to the bottom line or productivity gains. As such, the ACTU’s claims will simply compound business costs in these difficult times. In the budget, the Government put an end to uncertainty for businesses by confirming that the superannuation guarantee will go up to 9.5 per cent on 1 July, however it will then be frozen until 30 June 2021, before increasing 0.5 per cent a year thereafter, and eventually hitting 12 per cent. In response, the ACTU’s bargaining toolkit will include a claim for employer superannuation contributions to rise by 0.5 per cent annually for four years, to freeze the super guarantee at 9.5 per cent for that period. Mr Oliver says unions will also fight to ensure that employers guarantee existing penalty rates, arguing that they are under “concerted attack” from employer groups and the government. Under the toolkit, unions will seek to include terms in enterprise agreements that require an employer, upon receipt of a sick note, to pay the $7 GP co-payment when a worker takes personal or carer’s leave.

The detailed claims propose the introduction of a “working parents” allowance of $13.75 per week to recognise cost increases from the Government’s decision to freeze the child care rebate at $7500 rather than continuing to index it by the CPI. The Union’s claim is approximately equivalent to a CPI of 10 per cent per year. Another claim is for workers to be paid 78 cents per kilometre if they use their own vehicles on employer business, to compensate for increases in fuel excise, however this is a condition that already exists in the modern Electrical, Electronic and Communications Contracting Award 2010. Union sources say the budget-related bargaining claims will only be pursued if the measures are passed into law. This clearly shows that this bargaining toolkit represents a political strategy to put pressure on the Government by holding employers hostage. Mr Oliver says a family with two children and a single income earner would be $1,600 worse off this year and $6,000 worse off in two years from the cuts to family payments, the new GP co-payment, and fuel excise rises. “The ACTU’s new enterprise bargaining toolkit will empower workers to fight back against the Government’s cruel attack on hardworking Australians.” Employment Minister, Eric Abetz warned the strategy would come “at a huge cost to jobs”, and the Australian Industry Group and the Australian Chamber of Commerce and Industry has warned of the consequences of the push. Ai Group Chief Executive, Innes Willox says industrial action should not be permitted over a union claim for an employer to pay the proposed $7 GP co-payment if the employer wants an employee to provide reasonable evidence of sickness. “This is a blatantly political claim, not an employment matter,” Mr Willox says. “Other union claims relating to the budget fall in the same category.” When a claim by a bargaining representative does not pertain to the employment relationship, it should not be sought, further applications for protected industrial action in pursuit of such a claim should not be approved by the Fair Work Commission. Seemingly, passing the literal ‘buck’ on to employers, and thereby increasing the precariousness of employment, is the answer. The prospect of being $1,600 worse off a year would have to be preferable to being responsible for job losses. The Master Electrician

Spring 2014

all about ME MEA recognises the shining stars of the industry Some of the country’s best and brightest sparkies were acknowledged for their contributions to the industry at the recent MEA state excellence awards. Master Electricians Australia (MEA) received an overwhelming number of entries this year from individuals who demonstrated outstanding achievements in their chosen field. MEA CEO Malcolm Richards said he was impressed by all of the award recipients, commending them on their stellar efforts.

See which sparkies shone bright this year: AWARD CATEGORY

WINNER

South Queensland Accredited Master Electrician of the Year

Platinum Electrical

Business Woman of the Year

Kate Lievesley (A&K Lievesley)

Residential Project of the Year

Power Integration

Commercial Project of the Year

Brett Thiedeke & Excite Energy

Industrial/Mining Project of the Year

Corfield’s Electrical Service

Apprentice of the Year (4th year only)

Amyee Rhodes (Electrogroup)

North Queensland Accredited Master Electrician of the Year

Horan and Bird

Business Woman of the Year

Lisa Viczko (K.P. Walsh Electrics)

“The awards are a wonderful opportunity to recognise outstanding quality, attention to detail and high standards of professionalism within the industry.

Residential Project of the Year

ADP Electrical

Commercial Project of the Year

Horan and Bird

Industrial/Mining Project of the Year

ICS Electrical Contractors

“Each of the winners epitomise what Master Electricians is all about, which is essentially to lead the industry and connect with others on these advancements,” said Mr Richards.

Apprentice of the Year (4th year only)

Samuel Whiting (Horan and Bird)

The state excellence award winners will now go head-to-head at the National Excellence Awards and compete for the national title. National winners will be announced at the 2014 Electrical Industry Conference on 27 September.

South Australia Residential Project of the Year

P-MEC Electrical

Commercial Project of the Year

Azzo Automation

Industrial/Mining Project of the Year

Azzo Automation

Victoria Accredited Master Electrician of the Year

AF Electrical & Smokeshield

Business Woman of the Year

Bridgette Elder (Bri’Lectrix)

Residential Project of the Year

Argus Technologies

Commercial Project of the Year

Corospark Electrical & Solar

Industrial/Mining Project of the Year

Wattrix Electrical

Western Australia Accredited Master Electrician of the Year

Aurora Electrical Service

Business Woman of the Year

Kimberley Marshall (ComSpark)

Residential Project of the Year

CB Electrics

Commercial Project of the Year

S & K Electrical Contractors

Industrial/Mining Project of the Year

Trifield Electrical

Data Project of the Year

ADCO

Apprentice of the Year (4th year only)

Scott Bryant (Laser Electrical Bunbury)

New South Wales

NSW Accredited Master Electrician of the Year winner GB Electrical Contractors

www.masterelectricians.com.au

Accredited Master Electrician of the Year

GB Electrical Contractors

Residential Project of the Year

Greenelec

Commercial Project of the Year

Alland Group

Industrial/Mining Project of the Year

Connect Electrical Contractors

Apprentice of the Year (4th year only)

Jacob O’Grady (Cromack Electrics)

WA Residential Project of the Year winner CB Electrics

QLD Accredited Master Electrician of the Year winner Platinum Electrical

VIC/TAS Residential Project of the Year winner Argus Technologies

WA Apprentice of the Year winner Scott Bryant

MEA’s Rob Browning with North QLD Accredited Master Electrician of the Year winner Scott Bird and John Horan, and Haymans’ Brad Tully

SA/NT Commercial Project of the Year and Industrial/Mining Project of the Year winner Azzo Automation.

Work opportunities for members MEA is calling out for members who are looking for additional work and would like to be part of the national AeroDC Warranty Service Program. Master Electricians Australia (MEA) has partnered with AeroDC, the Australian distributor of the multi-award-winning Aeratron Ceiling fan, to create the national AeroDC Warranty Service Program, which exclusively utilises Master Electricians members. Aeratron Ceiling Fans are the world’s most silent and eco-efficient ceiling fans available for residential environments and commercial buildings. They use around 80 per cent less energy than common fans and, together with their silent operation delivered by the unique even air circulation system, they create a comfortable environment for living and working. Aeratron has a strong presence in Australia, with retailers in Brisbane, Sydney,

Melbourne, Adelaide and Perth. Aeratron fans can be found in schools, resorts and hotels, hospitals, multi-residential buildings, open plan offices, and homes. Members who enrol in the program can look forward to a possible ongoing flow of work that involves not only servicing units, but forming new relationships with both residential and commercial clients. Aeratron has a simple product line-up consisting of two models: the twin blade e502, and the three blade e503. Both models have a fan diameter of 1,260mm, and come with a fully-featured remote control with six speeds and a reverse winter function.

The work will be distributed through MEA and is quick and simple, with the average service taking between just 15 and 20 minutes. Approved Master Electricians members will receive training on the equipment and procedures to ensure that they are equipped to perform the service with ease.

If you are interested in joining this venture, please send an email with your contact information to aerodcservice@masterelectricians. com.au or contact the MEA Projects Team on 1300 889 198. The Master Electrician

Spring 2014

Congratulating milestone members Each year, Master Electricians Australia (MEA) congratulates members who reach 15, 25 and 50 years of membership. These members have demonstrated loyalty to the association and commitment to the industry, and in return, they have gained a leading business partner, knowledge source, and advocate. They are testament to the vitality of the industry and the dedication of those who have chosen it as their lives’ work. Joining the association back in 1989 (known then as the Electrical Contractors Association), the following list of members demonstrate a 25 year partnership: • Yandina Electrical Contracting Services • Adlec Electrical Service • Aldo Cantoni’s Electrical • Winton Electrical Service • BW & JL Moore Electrical Contractors • Bonlec • Brite-lec • Canelec ATF Cansdale Family Trust • Certelec • Chief Electrical Services • DB Electrical • Cabling & Contract Services • Epac Electrical • Frank Liddy Electrical • G & N Duffield Electrical P/L

• Peter Colston Elect Contrs • Barry’s Electrical Contracting • City View Electrical • Powerfactor Electrical Joining the association back in 1999, the following list of members demonstrate a 15 year partnership: • Alan’s Electrical • Barclay Electrical • Innes Electrical Service • Carandoo Enterprises • CIE (Cristaudo’s Industrial Electrics) • Connolly Electrical & Fire • Dave Parsons Electrical • DESA Australia • DLF Electrical

John Wright from Wrights Electrical Services with MEA’s Andrew Bailey.

• Mauro Electrical • Gary Cahill Data & Electrical • Rocky Industrial Controls • Varsity Electrical • Westair • Speed Elec • Wurtulla Electrical Systems

• Don Neal Electrical

• Yeti’s Refrigeration & Electrical

• Ensor Electrical

• D & B Whiting Electrical

• G & R Bryce

• GB Electrics

• Garvic Services

• Total Energy Services

• Geddes & Locke

• Northern Switchboard Solutions

• Heaton Electrical

• Casual Electrics

• IRM Electrical

• ElectroGroup – Apprentices.

• J & B Donovan

• K & R Electrical

• Jeff Bleney Electrical

• Elliott’s Electrical Services

• Tanners Electrical • Jason Cummings Electrical Service • Keith Willmot Electrical

• John Lang Family Trust • Trevor Johnson Trade Services • Barry G Andrews

• Geoff Catto Electrical

• Klenner Murphy Electrical

• I & C Instrumentation & Electrical

• Koolum

• JC & JM O’Shea

• Cooee Electrical

• JF & JC Spink Electrical Contractors

• L B Dyer Electrical

• Kevin Laing Electrical

• MEC Electrical Solutions

• Sparkrite Electrical

• Hoolihans Electrical Service

• Michael Foote Electrical

• Dumac Engineering

• Lakes Electrical

• Michael J Montgomery

• Sigmars Electrical

• Aywon Electrical

• Mr Robin P Sim

• Sullivan Electrical (QLD)

• Mcleod Electrical Contracting

• Mr William Morgan

• Black Bros.

• N & D Phillips

• Paice Group • Ridings Electrical

• Optical Communications & Electrical Services

• Pool Electric

• Owen Bain Electrical

• Pearson Sellwood Group

• P T Hardess Electrical

A big thank you to all our members who continue to value and support the services provided by MEA, and allow our association to build business success and provide industry development and representation across Australia.

• S J Electric

• Par Electrical & Communication

• Tony Hendry Electrical Services

• Fitzroy Electrical/Leenders Electrical

• Tony Skirrow Electrical.

• Queensland Electro Technical Services

• Wrights Electrical Services

• RL & VE Trinder

www.masterelectricians.com.au

• Chaplin Electrical • Neal E Wilkes • Gm Electrical

If you have not received your 15 or 25 year member milestone certificate, let our Member Services Team know, call 1300 889 198, or email mst@masterelectricians.com.au

GENERATING WEALTH FOR ENERGY EMPLOYEES It’s just how we’re wired. Energy Super is the leading industry superannuation fund for people who work in the energy industry. Run only to benefit members, Energy Super puts you first – generating wealth for your future and financial freedom. We are a platinum-rated* $5 billion industry superannuation fund with over 48,000 members and offer you flexible retirement savings solutions and professional advice so you can build practical strategies to help secure the future lifestyle you want.

For more information on the services that Energy Super offers visit energysuper.com.au or call us on 1300 4 ENERGY (1300 436 374).

Information current as at July 2014. Electricity Supply Industry Superannuation (Qld) Ltd (ABN 30 069 634 439) (AFSL 336567) is the Trustee and issuer of Energy Super (ABN 33 761 363 685). A Product Disclosure Statement (PDS) is available from energysuper.com.au or by calling 1300 4 ENERGY (1300 436 374). Advice contained in this document has been prepared without taking account your particular objectives, financial situation or needs. Before making an investment decision or acting on this advice you should consider your financial situation, the PDS and whether Energy Super is right for you. If you need assistance, talk to one of our financial advisers. Platinum rating ‘Best Value for Money’ for the Fund. Platinum performance pension. Platinum rating MySuper 2014. Selecting Super AAA Quality Assessment for the Fund. Ratings provided by SuperRatings (ABN 95 100 192 283 AFSL 311880) and Rainmaker Information Limited (ABN 86 095 610 996). Ratings are only one factor to be considered when making investment decisions. ENE0645

test drive

Hyuandai iLoad – the tradie workhorse The Hyundai iLoad claims to be the ‘everything to everyone’ tradie vehicle. We sent MEA Safety and Technical Officer, Mitch Cini out in the field in a brand new iLoad to test this claim. When I was approached to test drive the Hyundai iLoad, to tell you the truth, I did not see myself as the ideal road tester for a vehicle designed to be a workhorse in the field. So, I decided to have the Master Electricians members assist me in finding out if this vehicle really is all it’s cracked up to be.

and unfortunately, I didn’t think the kind people at Hyundai would appreciate my drilling into the car they had lent me, so that idea was out the window. I then investigated what Hyundai claimed the iLoad could do.

First, I called Todd from MEA Fleet and had him round me up an iLoad whilst I considered how to get the most out of the test drive. Next call was to Darren from CNW, Nerang, to organise some ladders and conduits for the roof, so it could look like a real sparkie’s van. After that, all I needed were some willing members to test drive the vehicle and a trusty dog to keep me company.

The first claim is “no job too small”. To test this claim, I collected the shopping on the way home from work. The first thing you notice when you drive this vehicle is the seriously powerful 2.5L CRDI turbo diesel engine, the second thing you notice is the absence of any rear park assist system. I have since found out that you can have this added as an accessory, so do yourself a favour and talk to MEA Fleet about having it included in the purchase price.

When collecting the vehicle, I noted there were no roof racks. The roof racks need to be secured by drilling into the vehicle body,

As I pulled into the shopping centre car park, I was surprised by how good the turning circle was for a van. As I went to lock the

www.masterelectricians.com.au

van, I realised that the lock was simply one button on the side of the key. This would prove to be my greatest frustration, as I came back to an unlocked vehicle on many occasions due to the button’s sensitivity. Loading and unloading the groceries was a breeze with the dual sliding doors, which allowed me to unload from the driver’s side. As it was, claim one, “no job too small”, was plausible. Next, I tested the second claim: “a powerful performer”. The test drive of the iLoad could not have come at any better time. I had the Master Electricians Australia (MEA) Gold Coast Golf Day coming up, which required someone to collect the Golf Day sponsors’ merchandise and equipment to take down the coast. I loaded the van from top to bottom with cartons of merchandise. Now I could really see if the van was as powerful as it claimed to be. The verdict … pass! The acceleration remained the same, there was plenty of torque up hills, and the van actually felt like it handled better with the load in the back. This van has changed the way I think about the power of vans. Compared to previous work vans I drove when I was an electrician, this is the Ferrari of vans. My golf playing partner and van passenger for the MEA Gold Coast Golf Day was none other than Accredited Master Electrician, Kevin Cosgrove from Cosgrove Electrical: a man I could trust to wire my house and make a birdie when our golf team needs it most. I asked Kevin for his perspective on the van, to which he replied “I don’t like the fact that it’s a diesel, you can’t feel or hear the diesel engine, it feels like a car”. I’ll take that as a positive. He also mentioned that there is plenty of room in the front cabin for the passenger. I appreciated this comment more than “I like the seat warmers”. To be clear, there are no seat warmers, it was just the afternoon sun. I had tested just about everything and the van was doing extremely well in my books. But what about getting a sparkie to test the van for day-to-day work? For this, I headed down the coast to meet with recently-crowned Queensland Master Electrician Business Woman of the Year, Kate Lievesley of A & K Lievesley Electrical. I could trust that A&K would know how to test the van. When I arrived at their office, they had a pallet of 150KW solar panels ready to load into the van. The hi-vis was donned and safe work area created as we manoeuvred the pallet into the back of the van using a forklift. The dimensions of the load could not have been bigger as we navigated the forklift under the raised door of the van. The van took the load quite comfortably and had plenty

of room to spare up front, although if you plan on loading pallets regularly, you might want to purchase an iLoad with twin swing tailgates on the back. The road test was all but complete. My only disappointment was that we had not been able to test the height of the vehicle with the roof racks. Fortunately for us, Tony Lievesley had an apprentice (Dan) wandering around the workshop looking for something to do. It was decided that Dan would “test the height of the vehicle” and wash the van. Dan looked a little downtrodden that he could not find a bucket, sponge, or carwash solution in the workshop. Fortunately for Dan, I just so happened to be carrying carwash items with me, should a situation just like this arise. The outcome according to Dan: “you need a set of steps to be able to reach the middle of the roof”. I guess I deserved the bucket of water over my head when I advised Dan that he had missed a spot. The verdict As a car, the Hyundai iLoad is good, but as a workhorse designed to carry loads, you can’t go wrong with this one. I think I’m going to miss the van when I go back to my Camry, it’s just not as practical. Priced from $29,990. Full vehicle specs are available on the Hyundai Australia website www.hyundai.com.au

Are you looking for a vehicle for your fleet? MEA Fleet offer great savings when purchasing new vehicles. The fleet program uses national membership buying power to deliver the best fleet discounts and obtain the best price for members. Master Electricians members can contact Todd from MEA Fleet to discuss options for purchasing your next work vehicle. Call Todd on 1300 889 198 or email meafleet@masterelectricians.com.au Not a member? Join today! Visit masterelectricians.com.au/join

The Master Electrician

Spring 2014

events calendar SEPTEMBER 15 – 17 September 2014 Safety in Action – Melbourne Melbourne Convention & Exhibition Centre www.safetyinaction.net.au

15 – 16 October 2014 Australia’s Sustainability in Business Melbourne Convention & Exhibition Centre www.australiansustainability.com.au

IMPORTANT DATES THIS QUARTER

18 September – 28 October 2014 MEA SA Forums Various locations in SA www.masterelectricians.com.au/ saforums

16 October 2014 L&H Darwin Trade Show Darwin Turf Club www.lh.com.au

29 September 2014 Family and Community Day Public Holiday (ACT)

18 – 20 September 2014 Skills West Expo Perth Convention & Exhibition Centre www.skillswestexpo.com.au

17 – 19 October 2014 Sunday Mail Home Show – Adelaide Adelaide Showground www.kjex.com.au

26 – 29 September 2014 MEA Electrical Industry Conference Outrigger Little Hasting Street, Noosa conference.masterelectricians.com.au

NOVEMBER

OCTOBER 15 – 16 October 2014 All-Energy Australia Melbourne Convention & Exhibition Centre www.all-energy.com.au

1 – 30 November 2014 MOvember au.movember.com 4 November 2014 Melbourne Cup Flemington Racecourse, Melbourne www.melbournecup.com

ESTILEC ADVANCED Electrical Estimating Software System Save time and money, speed up the tender process and improve your closure rates

27 September 2014 AFL Grand Final

29 September 2014 Queen’s Birthday Public Holiday (WA) 5 October 2014 NRL Grand Final 6 October 2014 Labour Day Public Holiday (ACT, NSW, QLD, and SA) 4 November 2014 Melbourne Cup Public Holiday (VIC) 14 November 2014 G20 Summit Public Holiday (Brisbane)

SAVE TIME & MONEY on your quotes for critical jobs and tenders GENERATE ACCURATE BUSINESS FIGURES for quantities, timelines and pricing NEGATE THE RISKS OF MISCALCULATION without the need for expensive proprietary electrical estimating software Access your FREE bonus features at theelectricalestimator.com.au Gain access to templates and strategies based on tried-and-tested industry data from over 30 years experience theelectricalestimator.com.au

Call ESTILEC ADVANCED developer Peter Pidwarko now

www.masterelectricians.com.au

0488 188 199

shocking photograph

Timber truss, what timber truss? An electrician was called to a house to replace a recessed light fitting with an LED alternative, and discovered that the electrician who installed the initial light fitting had decided that the positioning of the light was more important than the structure of the house. He had removed a section of a beam connected to supporting trusses to make room for the light fitting, compromising the structural integrity of theÂ dwelling. The electrician who discovered the issue advised the owners and recommended they seek expert advice to rectify the issue.

LIKE TO WIN $50?

Thanks to Myles from M.E. Christie Electrical on the Gold Coast, $50 is on its way.

Send us your favourite picture (in high resolution of at least 1MB please) and if we publish it in The Master Electrician magazine, weâ&#x20AC;&#x2122;ll send you $50!

The Master Electrician

Spring 2014

the last word

Do you want fries with that? I always find it very interesting when I hear members talk about their businesses. Some contractors identify themselves as electricians, that is, people who perform electrical services for clients. Others identify themselves as business owners, for these people, the emphasis is on the fact that they run a business that happens to supply electrical contracting services.

charger. He said, “If the contractors who were at my house this week had offered me that product, I would have bought two on the spot”. As you’d expect, the contractors were efficient, tidy, and did a good job, but they simply didn’t bother trying to upsell any new products or other services. We know that most homeowners probably have an odd job or two that they could be talked into having done when a contractor is on site. Replace the broken dimmer? Switch halogens for LEDs? Need a safety switch on your light circuit? But are you making sure that you are capturing all that latent business? And even if you are, what about your staff?

Which category are you in? Are you in a business that simply turns up at the job site, does the work requested, and then moves on to the next site? Or are you an entrepreneur? Do you always look for a way to add value for your client, and in doing so, add profitability to each job? Who hasn’t placed an order at McDonalds and been asked whether you want fries with that? Or if you’ve ordered fries, added a drink? An apple pie? I know it’s become a bit of a running joke, but it’s also the basis for one of the world’s most successful business models, and we could do worse than try to emulate it. A friend of mine recently had some work done by a Master Electricians member whom he called out to repair an appliance in his kitchen. Just two days later, he was looking through The Master Electrician magazine and saw an advertisement for Legrand’s new combo power point and USB

As a business owner, most of the money you spend in marketing your business is getting customers to make the initial call and choose you. It’s completely free to offer them an additional service once you’re on site, so why don’t more contractors do it?

It could be a very powerful incentive to help you keep your most engaging staff, and it will boost your bottom line. More importantly, you will be a business owner, rather than an electrician.

Why not carry a couple of novel products – such as a powerpoint/USB combo – in the van and offer them to consumers while you’re on the site already? Special price for existing customer, no call-out fee, and fitted today? It’s a pretty good offer. Taking a step further, why not turn your electricians into a sales team? Offer them 10 per cent of every item they upsell to customers on the spot?

Now, how about a chocolate sundae?

MALCOLM RICHARDS CEO

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