Print post no. 100011226 post Print www.mga.asn.au August Edition 5 2014
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August 2014 - Edition 5 3 Contents
05 CEO Welcome Legal and HR 07 “Root and branch” Competition Policy Review 22 Making sure employees are paid for all time worked 08 Victoria – Payroll Tax and Workcover premium cuts 22 Cashing out of annual leave – Is it permitted?
ATO encourages employers to prepare for What is a Fair Work Information Statement? 08 SuperStream 22 Coles and Woolworths trading hours push - another New wage rates and your store 10 step to total market domination – QLD 23
Michael Russell departs MGA Breaks between work periods 10 23 – no split shifts Coles and Woolworths carving up Australia town by 11 town Training 11 YouTube Video release – “Change the Game” 26 Food allergies – The Dangers 11 Proposed Carbon Tax Repeal 27 Be asbestos aware 12 Scammers continue to target small businesses 27 Training Snippets 12 Paid Parental Leave – Relieving the 'Pay-Clerk' Burden 29 Safe Work Instructions – SWI’s
Retailers urged to encourage PIN Number use before National Online Training Courses 13 1 August 30 13 Rise and rise of supermarkets 32 VIC face-to-face Training courses 14 Metcash Expo 2014 – “Successful Independents” Energy Efficiency
Tasmanian Independent Retailers Expo and Retailer of MGA EEIP – Final report and results 18 the Year Awards 32
www.mga.asn.au 4 Calendar 2014
Our Mission August The mission of Master Grocers Australia/ Tuesday 19 RSA Shepparton Shepparton, VIC Liquor Retailers Australia is to deliver the best possible industry specific business Wednesday 20 RSA Wangaratta Wangaratta, VIC support services to independent grocery, liquor and associate store members. Thursday 21 RSA Malvern Malvern, VIC MGA National Thursday 28 RSA Numurkah Numurkah, VIC Support Office
Suite 5, 1 Milton Parade, Malvern, Victoria, 3144 P: 03 9824 4111 • F: 03 9824 4022 E: [email protected] W: www.mga.asn.au Freecall: 1800 888 479 Retailer Directors Keep your store up to date Rodney Allen (President) – Victoria Andrew Bray – New South Wales without the need to travel Michael Daly – Victoria Gino Divitini – Western Australia Grant Hinchcliff– Tasmania Steve Miller – Victoria Chris dos Santos – South Australia Debbie Smith – Queensland MGA is now on Chief Executive Officer
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August 2014 - Edition 5 CEO Welcome 5 Calendar 2014 CEO Welcome
Left to right: Marie Brown, Steve Sellars, Chrissy Groat, Dr Harry Cooper, Jos de Bruin, Joe Giblin (Icon Global Link)
As financial year 2014 comes to reduce these onerous It's time for our industry to and not when it’s all too late! to a close, stocktakes are costs. Despite MGA/LRA’s get tough on Competition completed, the past year comprehensive submission Law reform so MGA/LRA For MGA/LRA to continue its is reviewed and without a to the Fair Work Commission launched the “Change the high level of representation moment to reflect, the new to not increase wages, from Game” YouTube video in in FY 2015, MGA’s Board financial year rolls into action. 1 July, staff wages will rise late May. This video pulls no has resolved to increase by 2.7% with the employers punches by clearly illustrating membership subscriptions by Members don’t have to be superannuation Guarantee the enormous market power a CPI of 2.7% and a further reminded that it’s been a Contribution rising from 9.25% and dominance of Coles and 1.55% to cover Competition tough year for trading. Sales to 9.5%. Woolworths and the unsavoury Law reform activities, for a have been hard earned “misuse of market power” total of 4.25%. MGA’s Board in a very competitive and With the allocation of behaviours they engage in. are adamant that, as an challenging retail environment. additional advocacy resources, Please take the time to view industry, we have “one shot Many members report little to MGA/LRA has continually this on YouTube and share it in the locker” to achieve no growth in sales with gross engaged with a number with local, state and federal favourable Competition margins under continuous of Federal Ministers and politicians, colleagues, friends Law reform outcomes, not pressure. MGA has had a bureaucrats to address and families. This YouTube to mention the many other very busy year assisting and many major issues effecting video was launched to coincide advocacy issues that are supporting members not the livelihoods of members with MGA’s submission to the concurrently being dealt with only with many staff and including; Competition Law Competition Policy review on behalf of members. compliance issues at a store Reform, repealing the Carbon panel in early June. level but increasingly at a tax, reinstate training fund Best wishes to all members and state and federal government support for retailers, review MGA’s Board has again industry stakeholders for an advocacy level. penalty rates, adult wage rates committed to allocate over and improved year of trading ahead for 18, 19 and 20 year olds, above resources toward MGA/ from all of us at MGA/LRA. Red Tape and additional deregulation of trading hours, LRA advocacy on behalf of its Front cover photo: Mick and Peter cost burdens to do business tobacco and liquor regulations members, on the basis that we Daly, family and staff being presented seem to be on the rise, even and workplace health must invest in representing the with IGA National Retailer of the year award - 21/7/2014 though the federal and state and safety. best interests of members now governments are vowing
www.mga.asn.au 6 Industry Representation “Root and branch” Competition Policy Review 80% market concentration is dangerous, oppressive – and the laws to the limit and sometimes beyond, in the pursuit of market rules need to change domination. The MGA/LRA submission to the “Root and Branch” review identifies several strategies which Coles and Woolworths In its comprehensive submission to the Competition Policy have used. These include: Review Panel, lodged on 7 June, Master Grocers Australia (MGA) and Liquor Retailers Australia (LRA) called for changes to • Fuel shopper dockets with discounts of up to 45 cents a litre, competition laws to counter the extraordinary and dangerous which has killed business for independent petrol retailers and 80% market domination of Coles and Woolworths. MGA/LRA’s grocers alike case is that without change there will be no competition left to protect. • Crowding out a local market by building big new stores where they are not needed, which forces small, family businesses to MGA/LRA speaks for the thousands of smaller independent close their doors (called “Predatory capacity”) grocery/liquor retailers that make up just 15% of the market. It has now made its submission to the Federal government’s “Root • Pricing essential goods such as milk at such a low price that and Branch” Competition Policy Review. The submission can be smaller operators can’t compete and push farmers/suppliers viewed on the MGA website. to the wall at the same time (called “Predatory Pricing”) MGA/LRA also released a short animated video which captures the oppressive power of the two major chains, this can be seen • Buying up real estate which competitors may want and then on MGA's YouTube channel. leaving it vacant (called “Landbanking”)
The competition laws which have been operating for the last two The ACCC has moved on several of Coles/Woolworths tactics decades have made Australia unique in the world. We are the however it is often too late, the damage is done before they can only country where two supermarket chains control close to 80% be stopped. In this way the chains have been gaming the system. of the market. In the UK the two major chains control 44%. In the MGA/LRA says that the laws need to be changed to stop this USA it is 42%. oppressive use of power. Specifically we recommend changes This means that laws which have been designed to maximise to the Competition and Consumer Act, Section 46. This covers competition in Australia have in fact led to competitors closing “Misuse of Market Power” and has traditionally been at the heart down and the extraordinary rise of just two major chains. It is of Australia’s competition law. We ask for these changes: proof that what may work in theory does not translate to on-the- 1. Add an “effects” test ground reality when it comes to competition. Practically speaking it has been difficult for authorities to prove Competition policy is often debated purely in terms of price to that Coles/Woolworths intend to drive competitors out of consumer. However this is only one dimension of a much business/damage them by their practices. An “effects” test is wider picture. straightforward because it measures the impact – rather than forcing authorities to collect evidence on intention or somehow An 80% market concentration is dangerous because ultimately read the minds of Coles and Woolworths executives it means consumers have little or no real choice. It kills the livelihoods of small business owners, with devastating 2. Add a prohibition on “predatory capacity” (crowding out a consequences not just for owners and their families, but market with new stores) employees and also a local network of interrelated small This would be inserted along with the existing prohibition on businesses. It also means an unfair fight for suppliers/ “predatory pricing”. It would cover the acquisition of an existing manufacturers who have no chance against the oppressive power store, the building of a new store, or the acquisition of land of two huge chains. (freehold or leasehold) which is far greater than would be required in a particular area, or where the corporation is already Ultimately this extreme concentration of power means the big reasonably represented. This is a logical change and is being get bigger while the small get smaller. Wealth is transferred from conducted overseas. small, family operators who can ill afford it, to two huge chains. Wealth is also transferred from small towns and suburbs to the 3. Reverse the onus of proof head offices of Coles and Woolworths, thereby destroying local This means that Coles or Woolworths need to prove they did economies. This has dramatic effects on smaller retailers and not intend for their actions to have certain consequences – as their communities. The status quo is not only fundamentally opposed to the status quo where authorities face the near unfair, it is destroying the nature of local communities in Australia impossible task of making a case. and turning them into support systems for Coles/Woolworths We also call for changes to Section 50 of the CCA, covering profit models. Creeping Acquisitions and Mergers, as its name suggests, this is a Coles and Woolworths have consistently pushed the competition way of gaining market domination by stealth, but escapes the law. Currently the law does not effectively cover what consequences
June 2014 - Edition 4 Industry Representation 7 MGA Delegation meets with the an individual acquisition means in terms of a larger pattern of acquisitions in the overall market and an overall move to market Competition Policy Review Panel domination. MGA/LRA recommends measuring the cumulative effect of any acquisition.
Finally MGA/LRA calls for a mandatory Industry Code embedded in the CCA to control and direct a number of activities which inhibit fair competition. The Code would have a wide ambit, reflecting the fact that the current competition problems confronting the supermarket and liquor industry are now overwhelming. It would cover a range of areas including:
• Overall scrutiny of market conduct
• Disclosure of Coles and Woolworths terms of trade with suppliers Grant Hinchcliffe (TAS), Debbie Smith (QLD), Fred Harrison (National), Len • Advance notice to the ACCC of any planned acquisitions Morabito (VIC), Tim Heath (National) On 16 June a delegation of MGA members and industry • Scrutiny of the basis of new acquisitions stakeholders met with the Competition Policy Review Panel (The Panel) in Melbourne. This was the first closed door meeting the • Greater clarity on how the ACCC deals with fuel shopper Panel has had with an organisation. dockets and other product bundling Members of the Panel who attended included; Professor Ian • A procedure for divesting of stores/sites acquired in breach of Harper, Sue McCluskey and Peter Anderson. The fourth panellist, the Code. Michael O’Bryan was unable to attend.
The measures we propose represent a challenge to legislators. Those who attended from MGA included; Fred Harrison – They are certainly a challenge to the status quo. But they are Ritchies Group, Len Morabito – Lorenze Supa IGA Group, Grant necessary because the last 20 years have been devastating to Hinchcliffe – CEO Tasmanian Independent Retailers, Debbie Smith smaller operators. The current system shuts out individuals – Foodworks Director, Tim Heath – FoodWorks Planning and who have the enterprise to build their own business. And it is Development Manager and Jos de Bruin – CEO MGA/LRA. destructive to local communities while enhancing the interests The forum was conducted in an informal manner with sufficient of just two major entities. time allocated for the MGA delegation to raise and discuss a As we have stated, without any change there will no longer be range of unfair competition issues with the Panel. The Panel any competition to protect and everyone will pay the price listened intently and asked questions at different times to seek a for that. better understanding of the issues raised. The issues raised and points discussed included a common theme. The market power and dominance of Coles and Woolworths and the effects of their unfair behaviours on the future sustainability and viability of the independent supermarket, liquor and food retail sector, not to mention hardware, florists, newsagents, etc.
Some of their unsavoury behaviours include; anti-competitive pricing behaviours, market saturation strategies, predatory capacity and inconsistent and inadequate planning practices.
The Panel listened to the issues we raised and will take them into account when reading MGA/LRA’s Competition Policy Review submission lodged on 7 June.
A big thank you to our members for travelling from far distances and setting their day aside to attend this very valuable meeting with the CCA Policy Review Panel on behalf of all MGA/LRA members. This is only the beginning of a very important journey to drive for Competition Law Reform.
www.mga.asn.au 8 Industry News
Victoria – Payroll Tax and ATO encourages employers to Workcover premium cuts prepare for SuperStream • From 1 July, the average that will flow from a cut to The ATO is encouraging employers to prepare for the introduction WorkCover premium will WorkCover premiums. of SuperStream which will change the way they make be cut by 2% which builds superannuation contributions in the future. on the 3% premium cut Dr Napthine announced In cooperation with their service provider or default fund, delivered in the 2012/13 that the Victorian Coalition employers can opt-in to use SuperStream from as early as 1 State Budget. Government will reduce the average Victorian WorkCover July 2014. premium for 2014/15 by 2% • There will be an additional SuperStream introduces a new standard for all employers which from 1 July, representing Workcover premium involves making super contributions electronically with linked a saving of $40 million for discount of 5% offered on data and payments. All super contributions are treated in the employers. annual premiums when same way – whether sent to a default or choice fund, an APRA paid by 1 August. “The current average premium fund or self-managed superannuation fund (SMSF). rate of 1.298% of payroll will • Victoria’s payroll tax “The main benefit for employers is that the SuperStream fall to an average of 1.272%. reduced from 4.9% to standard will simplify the employer experience and reduce costs 4.85% in the 2014/15 “More than 75% of employers by eliminating unnecessary variation and complexity that has State Budget. will benefit from stable or crept into the system over recent years,” Mr Philip Hind ATO’s lower premiums as a result National Program Manager, Data Standards & E-Commerce MGA/LRA has made the of this cut, with 115,883 (SuperStream) said. Victorian government aware businesses paying less for their of the impacts of red tape and The improvements mean employers will increasingly find that premiums in 2014/15,” Dr cost burdens upon members, they can use a single channel when dealing with super funds, Napthine said. particularly Workcover and regardless of how many funds their employees contribute to. Payroll tax. It was also announced that an “The need for reform of Australia’s superannuation system additional premium discount of Speaking at a recent Victorian was highlighted in the 2010 Cooper Review which found the 5% will be offered to employers Business Leaders event, existing processes made poor use of technology and there was who pay their annual premium Premier Denis Napthine no consistency in the data required and how funds deal with by 1 August 2014, and this outlined the Coalition contributions,” Mr Hind said. has also been extended to Government’s key economic smaller employers who pay the priorities and the benefits “All employers need to introduce changes in the way they minimum premium. currently make super contributions; although some who are already working electronically or have a clearing house partner will find these changes are relatively minor.”
The ATO is focused on awareness raising, education and support for employers during the first few years of SuperStream as the new standard is adopted.
“All large and medium-sized employers need to prepare now to ensure they’re ready to transition to SuperStream at the earliest available opportunity,” Mr Hind said.
“The ATO will provide flexibility and support to employers making a genuine attempt to comply with their obligations under SuperStream. This means you must have in place firm implementation plans with your service provider or default fund including a proposed completion date. A large or medium employer must complete their implementation by no later than 30 June 2015.”
Small employers (those with 19 or fewer employers) have another year before they commence using SuperStream, starting from 1 July 2015 but completing their implementation by no later than 30 June 2016.
June 2014 - Edition 4 Corporate Partner Advertising 9
www.mga.asn.au 10 Industry News Coles and Woolworths trading hours push - another step to total market domination – QLD Master Grocers Australia MGA is reacting to submissions which Coles and Woolworths (MGA) strongly opposes have made to the Productivity Commission study, “Relative Costs Coles and Woolworths calls of Doing Business in Australia: Retail Trade Industry”. The net to further deregulate trading effect would be that Coles and Woolworths would be open for hours across Australia. longer hours in Queensland.
“This move is aimed at "The big two already control more than 75% of the market. delivering even more market Not content with that, they now want to change the laws in share to the Coles and a way which they know will destroy the one small area where Woolworths duopoly”, said independent grocers are competitive. The ability to open an hour MGA Chief Executive, Jos de or so earlier than the big two and gain a small share of Bruin. “And it will come at the market. the expense of independent grocers which are typically Coles and Woolworths are in fact two sides of the same coin. family concerns.” We have already seen the duopoly act as one when it comes to predatory behaviours and to buying up major new sites to muscle A recent survey of consumers conducted by Patterson Research in out any competition. Now they want to flex their muscles further WA, confirmed that 88% of consumers surveyed are very satisfied by extending trading hours to the detriment of smaller retailers. with current trading hours, why should this be any different in Queensland? Our stores are very much part of the local community and if a store closes it does real damage to the local network of suppliers The suggestion by the big two that deregulation will result in an and support services putting consumer choice at risk. These increase in employment is also misleading. In WA it has been ripple effects can be catastrophic for small, local communities but proven that extending trading hours does not create additional they don’t concern Coles and Woolworths who are active only employment as was the case for Woolworths Kambalda. No new in their own self interests. However, these impacts should be of positions have been created at Kambalda's Woolworths following major concern to our governments when it comes to considering the introduction of Sunday trading, despite the supermarket Coles and Woolworths latest demands. giant claiming hundreds of new jobs would be created if limits on Sunday trading were abolished across WA. Our local communities need to be sustainable and vibrant – not just a support system for Coles and Woolworths."
Michael Russell departs MGA Over seven years ago, as MGA online, that are relevant to our members around Australia. MGA embarked upon fulfilling its members are benefitting greatly from his hard work over the vision to becoming the national years, culminating in the recent launch of MGA’s state of the art employer organisation to help Workplace Health and Safety system. and support independent supermarket and liquor store After making an enormous contribution to our industry training owners, Michael Russell joined and a major contribution to the growth of MGA into a national MGA as National Training organisation, Michael has decided to leave MGA to explore and Manager. take up new opportunities outside of MGA.
At the time, an extensive Over the past seven years, Michael has formed many strong survey of members found that internal and external industry relationships throughout his time members expected MGA/ with MGA that he will leave as a legacy as well as the many LRA to provide them with training programs and the team he has nurtured and developed. comprehensive industry retail and compliance training. Michael MGA will capitalise on the legacy Michael is leaving by continuing took up the challenge of building 'something from nothing' and a very comprehensive industry training service. formed MGA Training into a Core Pillar for MGA. On behalf of MGA’s Board, staff and members we say farewell to Michael was the first to innovate and embark upon many Michael and thank for your passion and contribution to all our forms of industry training and compliance systems, particularly members businesses!
June 2014 - Edition 4 Industry News 11 Coles and Woolworths carving up Australia town by town “The two giant supermarket here: http://www.mga.asn.au/ Review Panel which is the town centre loses its heart. chains, Coles and Woolworths, files/3514/0426/0305/MGA_ examining Australia’s have been carving up Australia position-background_paper.pdf competition laws. The net effect is that Coles’ town by town using an and Woolworths’ actions aggressive strategy to buy “We are witnessing a Mr de Bruin said; “When are destroying businesses, up sites and drive smaller sharp increase in Coles and Coles or Woolworths use destroying livelihoods and operators out of business. This Woolworths buying up sites in their financial muscle to open destroying jobs while taking oppressive strategy, which towns and suburbs that don’t up a big new supermarket money out of the local we call “Predatory Capacity”, need a big new supermarket. in a small community there economy and sending it to is sucking money out of local This is having serious long-term is a dramatic domino effect. their corporate head offices. effects because it destroys the First the independent grocer economies and it is having a In the end this strategy devastating human impact on fabric of our local towns and suffers, imagine waking up suburbs and is not sustainable one morning and finding your kills rather than enhances small business owners competition. So competition and local communities.” for the country.” superannuation is gone and you have to sack half your staff. laws need to join the dots and Jos de Bruin, the CEO of The release of the MGA/LRA’s look at the whole story rather Master Grocers Australia policy paper coincides with Next smaller businesses like than what seems to work (MGA) and Liquor Retailers revelations on July 1 that Coles the liquor store, the butcher on paper.” admitted to the Federal court and the baker face closing Australia (LRA), made these MGA/LRA speaks for the comments while releasing a that it has used its power to down as the Big Two introduce threaten and punish smaller their own brands into thousands of smaller new MGA/LRA policy paper independent grocery/liquor on Predatory Capacity. The suppliers if it doesn’t get the equation. its way. retailers that make up now just paper proposes changes to the Then the local supply 15% of the market, against the national competition laws to The paper also feeds into businesses such as the near 80% market domination reverse this dangerous trend the work of the Federal accountant and the transport of Coles and Woolworths. and give incentive to small government’s Competition services lose business. Finally businesses. See the full paper YouTube Video release – Carbon tax repeal will assist “Change the Game” independent retailers On 14 May, to a large audience of members, industry MGA CEO, Jos de Bruin, welcomed the repeal of the carbon stakeholders, politicians and bureaucrats, MGA/LRA launched tax laws and estimated that its removal will save independent its YouTube video entitled, “Change the Game – Coles and supermarkets approximately $70 million a year across Australia. Woolworths destroy competition”. This compelling YouTube According to Mr. de Bruin, “Energy consumption and refrigerant video runs for just over three minutes and captures most of gas replenishment is the second biggest cost behind wages for the predatory behaviours of the big two retailers and clearly independent supermarket owners to do business.” illustrates, by way of examples, their misuse of market power. “The independent grocery sector places high importance on Members are strongly encouraged to view this YouTube clip and promoting effective, energy efficient programs in their stores and share it with local, state and federal politicians, staff, friends, will continue to do so after the laws have changed. However, the industry colleagues and family. repeal of this burdensome carbon tax will have a direct impact on the sustainability of independent supermarket businesses. The removal of what amounted to an onerous toll will give greater opportunities for independent retailers to invest in their businesses and employ more staff.”
“On average a small independent supermarket of around 500 square metres in size will save approximately $17,500 per annum and a large store of around 2000 square metres will save $51,000. The removal of the carbon tax will free up cash and help to restore business confidence and certainty.”
Mr. de Bruin said, "The repeal of the carbon tax laws will undoubtedly provide some financial relief for our members.”
www.mga.asn.au 12 Industry News Scammers continue to target Paid Parental Leave – Relieving small businesses the 'Pay-Clerk' Burden” The ACCC's 'Targeting scams report 2013' reveals that over 90,000 Australians reported scams to the ACCC last year, with almost $90 million reported lost.
The most common scam affecting small businesses is the false billing scam, which includes advertising, directory and domain name scams.
In 2013, over 3,600 reports were received about this scam – an increase of 45 per cent from 2012 – and almost $725,000 was lost.
This type of scam targets small businesses by tricking them into paying for unwanted or unauthorised listings or advertisements in magazines, journals, business registers or directories.
Common scam tactics are to send a business a subscription form disguised as an outstanding invoice to get the business to sign up for unwanted ongoing advertising services. Scammers also falsely claim that the directory or publication is well known or has a high readership.
Another common false billing approach used by scammers Businesses of all sizes and the not-for-profit sector are one involves sending invoices for the renewal of domain names. step closer to securing $44 million in red-tape savings after the Scammers will send businesses an invoice to renew their current Federal Government successfully passed the Paid Parental Leave domain name registration, however the domain name will be Amendment 2014 through the House of Representatives in different, such as ‘.com’ instead of ‘.com.au’. mid-June.
If you run or work in a small business, protect yourself from If the legislation passes the Senate, business will no longer have scammers by following these golden rules: to act as the ‘pay-clerk’ for the paid parental leave scheme which is unnecessarily complex, and forces business to bear the costs of • Ensure you have clear procedures for verifying, paying and the extra workload. managing accounts and invoices. Limit the number of people authorised to place orders or pay invoices. There is no reason why business should have to act as the ‘pay- clerk’ when the Family Assistance Office can do the job. In fact, • Make sure the business billing you is the one you normally the Family Assistance Office did the job when the scheme deal with. Check whether all the details on the invoices first started. you receive are the same as usual or whether some are subtly different. The Australian Chamber of Commerce and Industry conducted a survey of its members on the Paid Parental Leave scheme in • Never provide personal information and banking details to May 2013. In the survey, 84.3 per cent of businesses either anybody you don’t know and trust. agreed or strongly agreed that "the Government should not require employers to be the paymaster for the Paid Parental • Don't let anyone pressure you into making decisions involving Leave scheme." payments or ongoing contracts. If you are unsure, always seek By removing the ‘pay-clerk’ burden, businesses of all sizes would independent financial or legal advice. be relieved of the red-tape burden of acting as the ‘pay-clerk’ for the paid parental leave scheme unless the employer • Install reputable computer protection software and a firewall and employee both ‘opt in’ to having the employer – and keep them up to date. administer payments. If you become aware of a scam or are scammed, report it to the MGA will inform members immediately after the Senate has SCAMwatch Infocentre on 1300 795 995. made a decision to pass/not pass the legislation.
To put it into perspective, the abolition of the ‘pay-clerk’ burden (on all employers, big and small) from the paid parental leave scheme, would save businesses $44 million per year.
June 2014 - Edition 4 Industry News 13
The national bid to make Australia’s payment system the most Retailers urged to encourage PIN secure it's ever been, is expected to benefit businesses with over two thirds (67%) of Australians believing the move to “PIN only” Number use before 1 August technology is a positive step towards improving the security of Australia’s payment industry. New research recently released has found that 24 per cent The study also found that increased PIN use will not influence of Australian credit and debit the shopping behaviours of Australians, with a slim 9% of cardholders are yet to embrace respondents indicating that the move may impact how they PIN at the checkout ahead purchase at point-of-sale. of the 1 August deadline, MGA/LRA encourages members to speak with their financial prompting the Industry Security institution in regard to what the change will mean for them. Initiative to issue an urgent It is of paramount importance that MGA/LRA members warning to all Australian help to communicate and educate customers of these merchants and retailers: forthcoming changes. “Come 1 August 2014, Australia There will be no change to contactless or online transactions. will phase out accepting For visitors from overseas, signature will still be a valid form of signature as a valid form of payment authorisation. authorisation on chip-enabled credit and debit cards. Today is the time for all Australians To help communicate the message to customers, members to prepare for this move. Retailers play an important role in can download a free retailer toolkit available now at communicating and implementing this change. If customers don’t www.pinwise.com.au have a valid form of authorisation, they may be unable to transact and pay for goods such as petrol and groceries. To avoid this pain This will give members the materials to promote the move to all Australian consumers and retailers must become PINwise customers and staff in-store. today.”
ALH Group has a portfolio of over 460 liquor outlets across Rise And Rise Of Supermarkets Australia and 294 licensed venues, including Young and Jacksons in Melbourne and the Kirribilli Hotel and Crows Nest Hotel in How much choice do we really have? Sydney.
Coles is teaming up with GE Capital in a plan to issue personal These venues are home to an estimated 12,000 pokie machines. loans. The fact that seems like a natural progression just goes to Yep, 12,000 pokie machines. show how far the tentacles of our big two supermarkets have already extended. Coles has got flybuys, Liquorland, First Choice Liquor, Vintage Cellars, Bunnings, Officeworks, Target and Kmart under its The joint venture will issue credit cards and other personal umbrella. finance products, like small loans, from mid next year. Throw in their recent venture into insurance and their daily financial So while it might seem like consumers are given more and more products suite is starting to look like that of a big four bank. product and shopping choices, the reality is our retail choices are increasingly likely to be owned by one of the big two. So if it seems like our two supermarket towers are ballooning like never before, it’s because they are. From personal loans to pokie According to Roy Morgan analysis released in February, Coles machines, car insurance to cuppa soup, they’ve got you covered. and Woolworths combine to hold 72.5 per cent of the $82 billion grocery sector. That’s a huge chunk in itself, but there’s also Analysis by the Commonwealth Bank a few years ago showed petrol, liquor, hardware and stationery to tack on too. almost 40 cents in every retail dollar in Australia is spent at Woolworths or Coles (Wesfarmers). When it comes to petrol, Coles and Woolworths each have a 24 per cent market share, making up almost half of the retail “Both groups have been expanding their market share through petrol market. In 2003, Coles bought out Shell, while Woolworths a spate of acquisitions, which has given them an enormous announced a joint venture with Caltex. concentration in our retail market,” said CBA’s retail analyst Andrew McLennan at the time. Away from products, both giants also offer personal cover, from car insurance to life insurance, proving there isn’t anything too And since then, those acquisitions have continued to grow. left-field for these guys to tackle. Woolworths’ brands now include Thomas Dux grocer, Big W, Masters Home Improvement, Dan Murphy’s, BWS, Cellarmasters, Source: July 16, 2014, Kochie's Business Builders Langton’s, ALH Group and Ezibuy.
www.mga.asn.au 14 Industry Events Metcash Expo 2014 – “Successful Independents” Once again IGA and Foodworks retailers from around Australia congregated on the Gold Coast on 20 – 22 July for three jam packed experiential days at the annual Metcash Food and Grocery Expo held at the Gold Coast Convention Centre and the Jupiter’s Complex. The theme of this event was appropriately, “Successful Independents” and was reflected throughout the Expo and the many retailer events running simultaneously with the Expo.
1000’s of people congregated from everywhere to attend this Ian Morrice (Metcash CEO), Fergus Collins (Metcash Food and Grocery CEO) annual event to engage, to network and to do business with each other, including; national and local product suppliers, equipment and service suppliers, Metcash staff and management, IGA retailers, Foodworks management, staff and retailers and Friendly Grocers retailers.
The attendance by retailers from all states and territories was significantly up on previous years, delighting all exhibitors and suppliers at the expo. It has been reported that once again orders placed by retailers, with suppliers were well up on last year!
The Metcash IGA Conference and Expo event was officially opened by Metcash CEO, Ian Morrice and Metcash Food And Grocery CEO, Fergus Collins, who took the opportunity to officially introduce to retailers the new Metcash executives who Roy Leisk (Metcash National Joseph Romeo (Romeos Group), Ben have recently joined the Metcash Team, who will help guide Operations Manager) Ryan (IGA National Council Chairman) and direct a new “consumer led” culture, with a “retailer focus” throughout the organisation. Retailers were greatly encouraged by the many initiatives that were presented to assist them to be “consumer led” retailers, at a time of intense competition, business challenges and increasing costs to do business. The Expo The location of the entrance and the configuration of the exhibitors at the Expo was changed from previous years, to reflect the preferred layout of a supermarket. That is, the first department a consumer sees in an independent supermarket, no matter how small or large, is the Fresh Department, made up of Robert Grub (Kloses Supermarkets SA), Michael Smith (Balaklava Foodland SA), Produce, Delicatessen, Bakery and Meat, followed by Grocery and Dylan Smith (Foodland SA) General Merchandise. The consumer led approach to retailing begins with an exceptional Fresh Offer. An exceptional Fresh Department is the attraction to consumers and is the key success factor to engender trust and consumer satisfaction. A well laid out “consumer led” store will encourage shoppers to increase their basket size and shop more often. Also on show were many “instore theatre” examples and suggestions to help stimulate the consumer and to bring a fun experience into retailing.
All suppliers and exhibitors made a significant commitment and contribution to the success of this Expo event, stimulating retailers with new product launches, providing category insights and offering in store incentives to purchase their products.
Sukhdeep Sandhu and Joseph Gordon and Lisa Edwards (Oatley IGA Weeraratne (Lynwood Supa IGA WA) NSW)
June 2014 - Edition 4 Industry Events 15
Michael Reddrop, Lincoln Wymer, Jared Bridgart, Andrew Marshal, Chris Bekiaris (All FoodWorks VIC)
Ian Morrice (CEO Metcash), Jos de Bruin (CEO MGA), Peter Struck (CEO Convenience at Metcash), Rod Allen (President MGA)
Val Belladonna, Steve Postlethwaite (Metcash), Salvatore Belladonna Damian Rose (Metcash), Murray McIvor (Metcash), Cleve Brand (Metcash), Bob (Wembley Supa IGA), Mrs Belladonna Cybula (Denmark Supa IGA WA)
Teresa Lorenz, Michael Lorenz (Michaels Supa IGA Korumburra VIC), Franca Weir Family (Weir Family Supermarket VIC) Battaglia (IGA North Melbourne VIC)
Niraj Shekhawatia, Brenton Waters (Both from IGA Pine Mountain Road Steve Wood and Mike Reis (Foodland Elizabeth Romeo (Romeo's Group SA), Anthony Romeo (Romeo's Group SA), QLD) SA) Mike Reis (Foodland SA)
www.mga.asn.au 16 Industry Events The 2014 IGA Retailer of the Year Awards Hosted by Paul McDermott, held in the Jupiter’s Ballroom, the 2014 IGA Retailer of the Year Awards evening was again an amazing evening of celebration. This is an evening where the best of, small, medium and large IGA stores from around Australia come together to celebrate their state awards but moreover, are then eligible for a prestigious National Department Award or the National Retailer Awards. Gino Divitini (MGA Board WA), Wally Ian Bourke and Terry Bourke Daly (Belmont Supa IGA WA) (FoodWorks Portland NSW) As always, there are many fine examples of IGA retail excellence in each of the states and territories where retailers have developed and demonstrated, on a consistent basis, the highest level of retailing, merchandising and customer service standards. MGA congratulates all the store nominees and winners for 2014.
The 2014 Doctor Thomas Haggai IGA Hall of Fame inductee was awarded to the popular Mel Luke from the Sunshine Coast region in Queensland. Mel, since 1986, together with his wife Gill and later on son Matt, have owned and operated up to nine supermarkets in the sunshine Coast region over the years, making a significant contribution to the independent supermarket landscape in Queensland for more than 28 years.
The highest award, the 2015 National Retailer of the Year award Mark Latkowski (Parmalat), Peter Leysen (Arora's Supa IGA Group NSW), John was won by the Daly Family’s Supa IGA Store in Portland, Victoria. Veccio (Parmalat) Mick & Donna and Peter & Barbara Daly and their families, proudly dedicated this award to the long line of Daly family members, dating back over 100 years, to their great grandfather, who founded the business in the very early 1900’s.
The IGA retailer of the Year was, for the third time, was Brad Hopper’s IGA Greenslopes store, managed by Matt Puddiford and his dedicated staff. To achieve this award for the third consecutive time in a row is testimony to the consistent and impeccable retailing, merchandising and customer service standards this store upholds.
The IGA X-press store of the year for the 2nd year in a row was IGA X-press Circular Quay, owned and run by Jin Xiang Guo and Jian Zhong Hu. This is another store that demonstrates, Susan Charlson, Chris Antonieff and Rebecca Antonieff (FoodWorks Oxley QLD) uncompromisingly the highest retailing, merchandising and customer service standards, day in day out.
National Retailer of the Year Daly’s Supa IGA, Portland, Victoria Mick and Peter Daly & family IGA Retailer of the Year IGA Greenslopes, Queensland Brad Hopper, store manager Matt Puddiford and his staff IGA X-press Retailer of the Year Circular Quay, Sydney NSW Jin Xiang Guo and Jian Zhong Hu Doctor Thomas S Haggai IGA Hall of Fame Award Jean Cowley (IGA Barwon Heads VIC), Dr Tom Haggai (IGA International), David Mel and Gill Luke – Mel Luke Group Queensland and Aaron Reynolds (Foodland Goolwa SA)
June 2014 - Edition 4 Industry Events 17
National Retailer of the Year – Daly’s Supa IGA, Portland, Victoria Doctor Thomas S Haggai IGA Hall of Fame Award Left to right: Barbara and Peter Daly, Nathan Lovell (store manager), Mick and Mel and Gill Luke, Sunshine Coast QLD Donna Daly
IGA Retailer of the Year – Hoppers IGA Greenslopes, Queensland Sarah Mauby, Nick Ploughman, Matt Puddiford (Store Manager), David Kindt IGA X-press Retailer of the Year – Circular Quay, Sydney NSW (GM), Michael Beer (CEO) Jin Xiang Guo and Jian Zhong Hu Bakery Department Dairy Freezer Department Fairview Park Foodland IGA, SA Henley Square Foodland IGA, SA The 2014 IGA Romeo’s Retail Group John Chapley and Family Victor Harbour IGA Fresh, SA IGA Greenslopes, Qld Retailer Winners Andrew Williamson Brad Hopper National IGA Sustainable Store Produce Department General Merchandise Department of the Year The Fishers Group Pasadena Foodland IGA, SA Supa IGA Pialba, SA Alan Fisher Commercial Retail Group Brett Leishman 2014 Store Manager of the Year The Park Hive IGA, WA Coober Pedy IGA Fresh, SA Darren Madigan Inderjit Singh Tim Carter Belladonna Family Supa IGA Wembley, WA Overall Fresh Department Customer Service Department Delicatessen Department Circular Quay IGA X-press Plus Liquor Sisters Supa IGA Perth, WA Romeo’s Supa IGA St Ives, NSW Jin Xiang Guo and Jian Zhong Hu Cate and Peter Brodie Romeo’s Retail Group Grocery Department IGA Toodyay, SA Dean and Amanda Carter IGA Ainslie, ACT Romeo’s Supa IGA St Ives, NSW Manual Xyrakis and Irene Mihailkis Romeo’s Retail Group Liquor Department Meat Department Weir’s IGA Donald, Victoria Supa IGA Orange Plus Liquor, NSW Brighton Foodland, SA The Weir Family Ian and Rochelle Ashcroft Tim Rugless Circular Quay IGA X-press Plus Liquor IGA St Georges Basin Plus Liquor, NSW IGA Ainslie, ACT Jin Xiang Guo and Jian Zhong Hu Les and Michelle Corish Manual Xyrakis and Irene Mihailkis
www.mga.asn.au 18 Industry Events Tasmanian Independent Retailers Expo and Retailer of the Year Awards On 13 and 14 June, Tasmanian Independent Retailers (TIR) held its Annual Industry Expo and Retailer of the Year Awards night at the Wrest Point Casino in Hobart.
Suppliers and industry stakeholders again supported this Grant Hinchcliffe (standing) with IGA retailers premier independent grocery state event with great energy and commitment. Most of TIR’s retailers from around Tasmania attended this excellent forum to take advantage of meeting face- to-face and doing business with industry suppliers of groceries, equipment and support services as well as engaging with the TIR team.
Grant Hinchcliffe, TIR CEO, gave his annual TIR business overview at the Expo industry breakfast. Once again TIR retailers had a very solid year of trading, delivering a very good sales result despite the dominance of the chains and challenging retail trading environment. Much of the positive sales results can be attributed to the enormous amount of energy and capital investment TIR and TIR independent retailers are putting into their stores. Joe Giblin – IGL, Chrissy Groat – MGA training, David Wilkes – IGA Beaconsfield
Grant Hinchcliffe – CEO TIR The Expo breakfast – IGA Retailers
Tasmania Retail Awards night Louis Canatelli (centre) and JC's Quality Foods at the Expo
June 2014 - Edition 4 Industry Events 19
The TIR Retailer of the Year (ROTY) awards night was again a highlight at this event. Retailers, suppliers and many local and interstate guests were in attendance at this very special industry night of nights. Over the past year, many stores excelled in lifting their customer service, merchandising and retail standards to make it very difficult for the ROTY judges to choose the winners of each store category for this past year.
Well done to the TIR team for organising another terrific and polished Tasmanian industry event!
The following stores are to be congratulated for their Retailer of the Year awards: 2014 Retailer of the Year: 2014 Retailer of the Year: IGA Everyday Norwood – Mark, Supa IGA St Helens – Store Manager The overall Retailer of the Year Daniel and Leanne Coulson Cassey and Kemuel Wood IGA Everyday Norwood – Mark, Leanne and Daniel Coulson and Family
State retailers of the Year by channel
Supa IGA St Helens – Pam and Ivan Walker
IGA Everyday Norwood – Mark, Leanne and Daniel Coulson and Family
IGA X-press Newtown – Hill Street Grocer: Nick, Marko and Victor Nikitaris 2014 Retailer of the Year: Sam Richardson Perpetual Award: Sam Richardson Perpetual Award IGA X-press New Town – Hill Street IGA Everyday Beaconsfield – David IGA Everyday Beaconsfield – David and Gundi Wilkes Grocer: Nick, Marko and Victor and Gundi Wilkes Nikitaris
www.mga.asn.au 20 Corporate Partner Advertising
June 2014 - Edition 4 Corporate Partner Advertising 21 Arneg Oceania Arneg have been very active in the independent supermarket • A taste of Europe was brought to Sydney with the recent sector in Australia for over 10 years providing efficient and installation of the Baden delicatessen cabinets at Romeo's innovative refrigeration merchandisers to independent retailers. IGA St Ives. The store features a European-style delicatessen incorporating fresh fish display, fresh olive display and self- Recent key installations to Australian independents have included serve sections throughout, all using the Baden range of the supply of cabinets to: cabinets.
• 2014 Victorian IGA Retailer of the year Daly’s IGA Portland. • Arneg are the exclusive supplier of refrigeration cabinets to The fit out included Santiago dairy cases with doors, full LED Drakes Supermarkets with the first installation of Santiago lighting and EC fans. The Santiago maximizes product visibility cases being installed at Blackwood (SA). In 2013/2014 whilst delivering significant energy savings for the store. supplied cabinets to new Drakes stores in Surrey Downs (SA), Gympie (QLD), Fulham Gardens (SA) • The recently opened Ritchies Fine Food and Liquor Mt Eliza features the Belgrado square front delicatessen in a • Cornett’s IGA have recently installed the Santiago cabinets combination of serve over and self-serve, some modules with doors and LED lighting for their dairy and meat purpose built to meet the design requirements of the store. departments in stores at Cooktown, Middlemount and Dysart, A feature of the store is the new bakery department with a achieving much improved product presentation and energy Belgrado pastry cabinet as its center piece. All cabinets in the savings for the group. store were fitted with LED lighting, further reducing energy consumption and long term maintenance. • Recently Arneg have supplied cabinets to many other key IGA retailers including Morgans Supa IGA Glengala (VIC), IGA St • Arneg continue their exclusive supply to Champions Supa Leonards (VIC), IGA Longford (Tasmania), IGA Altona (VIC), IGA, working closely with the group in their renovation of IGA East Coburg (VIC), IGA Queenstown (Tasmania), Supa IGA Long Gully. Recently replaced chest freezers with the Toronto Maddison Heights (QLD), Supa IGA Wondall (QLD) chest freezer cabinet with slide (front to back) glass lids to reduce overall energy consumption and high glass sides giving For further information please visit www.arneg.com.au improved vision to the product on display.
www.mga.asn.au 22 Legal and HR Making sure employees are paid Cashing Out of Annual Leave – for all time worked Is it permitted? Members are reminded that employees are entitled to be paid Members often ask MGA Legal and HR whether or not an for all the time that they are actually engaged in performing employee can request to have their annual leave paid out rather work in the store. This includes the obvious tasks such as serving than actually taking a period of leave. customers, stacking shelves or moving goods in store. There is often some confusion about when payment actually commences If you employ your employees under the General Retail Industry for a shift or when employees are required to take monies to a Award, the cashing out of annual leave is prohibited. This is so, collection point before finishing work or they need to count a even if an employee makes this request in writing. float at the cash register. A Collective Agreement, however, may contain terms permitting In order to ensure that you are not going to be subject to a wage the cashing out of annual leave. Such terms must be considered claim for time spent in the store after “clocking on” or “clocking in conjunction with the National Employment Standards in the off” it is important to make it clear to staff what their obligations Fair Work Act 2009. If your Collective Agreement does allow are for keeping to their rostered times. for the cashing out of annual leave, this must only occur on the following terms: It is suggested that members advise their employees of the basic rules that must be followed, which may well conform to • Paid annual leave must not be cashed out if it would result in your clocking on and off system. The rules should include the less than 4 weeks remaining of accrued entitlement to annual following: leave;
• An employee should clock on and allow 5 minutes to be at • Each occasion of cashing out of annual leave must be in their work station in time to commence a shift writing and signed by both employer and employee; and
• Similarly an employee should be allowed 5 minutes at the • The employee must be paid the full amount that would have completion of the shift before clocking off so as to ensure been payable had they actually taken the leave. This means they will be paid for their rostered time. that if your Collective Agreement provides for annual leave loading, this is also payable upon the cashing out of annual • If an employee works in excess of the rostered time then a leave. variation to the rostered time may be appropriate to ensure that the employee is paid for any excess time worked. If you have any questions regarding the annual leave provisions in your Collective Agreement, please contact Legal and HR. • If an employee is required to count a float or engage in any form of extra “work” this should be calculated into the shift and time allowed to ensure that payment is made. What is a Fair Work Information The Fair Work Ombudsman has recently targeted a number of retailers for not paying employees for the times they are actually Statement? “working.” However, it is also important to ensure that members do not have employees “clocking on” and then spending time All new employees must be given a Fair Work Information chatting to friends or sitting in the tea room before commencing Statement when they are employed. The Statement must be a shift. provided to any employee, whether the employee is a checkout operator or a senior manager. For further information please contact MGA on 1800 888 479 The Statement sets out all the information that the employee needs to know about the employment. It contains the national Employment Standards, which include details about such matters as annual leave, personal leave, long service leave, public holidays and hours of work.
The Information Statement also provides information about flexibility arrangements, termination of employment and the modern award system.
It is important that this Information Statement is given to the employee at the time of appointment or sent to the employee either by fax or mail.
June 2014 - Edition 4 Legal and HR 23 New Wage Rates and Your Store Stores under the General increased to “$16.99” and varying managerial levels in A copy of the Retail Award with Retail Award “$15.38” respectively. The your agreement are equal to the varying employee levels transport allowance in clause or higher than those in the can be found on the MGA Members are advised that 20.6 has also been increased Award. This can be done, by website in the members area. the new wage rates for the by $0.02 cents to $0.78 cents comparing the roles and duties General Retail Industry Award per kilometre. of the varying retail employee Sole Traders and Partnerships (the Award) are now available levels in schedule B of the covered by State Awards in on the MGA website. If your Stores with an enterprise Retail Award with the varying Western Australia store operates under the agreement levels in your agreement. Award, the wages will apply The WA Shop and Warehouse in your store from the first full For members whose stores For example, in your Award, and the WA Licensed pay period in July. Members operate under an enterprise agreement a new employee, Establishment Award are should note that 20 year old agreement, it is important to employed as a register now available for download employees, who have been ensure that the base figures operator may be categorised from the MGA website. This employed by your company for in your agreement are above as a level 1 employee, and year the WA State Award more than 6 months, will now or equal to the base figures become a level 2 employee minimum rates increased by receive 95% of the full adult (ordinary hourly rate) for each after 6 months. Under the $20.00 per week for full time rate. New employees who are age group within the Award. retail award, a register adult employees with the 20 year of age, with less than This can be done by comparing operator is categorised as a increase being proportional 6 months experience within the Retail Award wage table retail employee level 1 at all for apprentices and junior your company, will continue to on the MGA website with times. Therefore the level 1 employees. The allowances receive 90% of the adult rate. your own wage table in your and 2 rates in your agreement within the award have also agreement. must be above or equal to the been adjusted to reflect an In further changes to the level 1 rates in the Award. increase to location allowances Award, the meal allowance in It is also important to ensure throughout Western Australia. clause 20.1(a) has now been that the base rates for the Breaks between work periods Romano "Technology is a part of life" – no split shifts As web based technology It is important to ensure that employees are given a 12 hour is now commonplace and rest period between work on one day and the commencement retailers are aware of its of work on the following day. If the employer and the employee potential, it is important to agree the 12 hours may be reduced to 10 hours. understand how shoppers are using it. Recent national If an employee recommences work and has not had a 12 research shows that shopper hour break the employee must be paid at double the rate the age is the main factor in web employee would have been entitled to until the being released to use. There is still a divide at have a 12 hour break. Split shifts are not permissible under the about the age of 40 yrs, with General Retail Industry Award. older shoppers less likely to be users and younger ones more Employees are, of course, also entitled to breaks from their work likely, but the divide is fading. according to the length of the shift. Desktops and laptops are almost evenly used across all age groups, whereas smartphones are noticeably used more by those under 40 yrs. Tablet use shows an age divide too, but much less pronounced. The most popular web uses in decreasing order are email, social media and banking, reading news and articles, watching videos and listening to music, and on-line shopping. Almost half of all grocery shoppers have shopped or browsed on-line in the last week.
Romano DelBeato DBY Research 11 July 2014
www.mga.asn.au 24 Corporate Partner Advertising
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T
June 2014 - Edition 4 Industry Events 25
www.mga.asn.au 26 Training Food Allergies – The Dangers
Australia has one of the highest and cardiovascular). A severe for staff at all levels in this • The food is not in a package reported incidences of food allergic reaction or anaphylaxis sector. It is FSANZ's view allergies in the world, and the usually occurs within 20 that the current regulatory • The food is in an inner numbers are growing at an minutes to 2 hours of exposure measures are adequate to package not designed for alarming rate. Currently over to the trigger and can rapidly manage the food allergy individual sale. Despite this, 400,000 Australians suffer from become life threatening. risks from foods exempt individual portion packs in a food allergies and in fact, from bearing a label. container or wrapper with one in 10 babies born in Food Triggers However, there is a need for a surface area of 30 cm² or establishing more effective greater must bear a label Australia today will develop Milk, eggs, peanuts, tree nuts, means of communicating containing information in a food allergy. sesame, fish, shellfish, wheat these regulatory obligations accordance with clauses 3 and soy are the most common An allergic reaction can quickly and implementing initiatives and 4 of Standard 1.2.3 food triggers, which cause 90 become life threatening and to enhance the allergen percent of allergic reactions; people can die from food management knowledge • The food is made and however, any food can trigger allergy. While the risk cannot of workers in the food packaged on the premises anaphylaxis. There are more be removed, it can service sector. from which it is sold be managed. than 170 foods known to have triggered severe allergic MGA has an online ‘Allergy • The food is packaged in the It’s up to all of us to be allergy reactions including kiwi fruit, Awareness’ training module presence of the purchaser aware – if you own or run a banana, chicken, mustard on our website. This online food business you need to and celery. short course focuses on • The food is whole or cut know what is required and raising awareness of food It is important to understand fresh fruit and vegetables, staff must have the knowledge, allergens for those working in that in some people even except sprouting seeds documents and correct food businesses. It includes very small amounts of food or similar products, in labelling in place. examples and case studies with can cause a life-threatening packages that do not strategies for controlling and What is anaphylaxis? reaction. Some extremely obscure the nature or managing the risks associated sensitive individuals can react quality of the fruit or with food allergens. The course Anaphylaxis is the most severe to just the smell of particular vegetables concludes with an online quiz form of allergic reaction and foods being cooked (e.g. fish) to test participants’ knowledge is potentially life threatening. or even kissing someone who • The food is packaged and and understanding and the It must be treated as a has eaten the food they’re displayed in an assisted price is $53. medical emergency, requiring allergic to. service display cabinet immediate treatment and The Food Standards Code urgent medical attention. Currently, there is no cure for You must be able to provide (Standard 1.2.1) states that food allergy. Avoidance of the information if requested about food for retail sale must bear Anaphylaxis is a generalised food is the only way to prevent ingredients in any unpackaged a label setting out all of the allergic reaction, which a reaction. foods you sell eg. bakery often involves more than information in the code, and deli items that are not one body system (e.g. skin, There is a need to establish except where: packaged. respiratory, gastro-intestinal further education and training
June 2014 - Edition 4 Training 27 Be Asbestos Aware Training Snippets Homes in the ACT built in or before 1990 can have asbestos- Well done to all of the trainees who put in an extra effort to containing materials used in parts of its construction, while complete their courses before the June transition date. commercial buildings built up until the end of 2003 may include asbestos-containing materials.
Bonded asbestos in residential premises was used in kitchens, bathrooms, laundries, under the eaves outside the house and remnants of removed loose-fill asbestos may be found in difficult- to-access areas such as wall cavities.
In commercial buildings, asbestos is commonly found behind tiles in wet areas, in heater flues and other cement piping, and lagging on wall pipes.
When asbestos products deteriorate or are disturbed, dangerous fibres can be released. Inhaling asbestos fibres can cause asbestos-related disease, which can be serious and cause death.
Only appropriately licensed and qualified asbestos assessors Margaret Slattery Karen Evans can advise on asbestos and how it can be managed. Licensed Quorn IGA Quorn IGA asbestos assessors can undertake and supervise air monitoring, South Australia South Australia conduct surveys to identify the location, type and condition of Margaret Slattery completed Karen Evans completed asbestos in buildings, assess the risk of the asbestos present the Certificate IV in Retail the Certificate IV in Retail and advise how it should be managed. If asbestos is detected, a Management course. Management course. licensed and qualified asbestos removalist can handle, remove and dispose of bonded and friable asbestos from buildings in a safe manner. Sonia Morgani LaManna Direct Don’t try to renovate an area identified as containing asbestos or Victoria attempt to remove asbestos yourself. Sonia Morgani completed the Certificate IV in Retail For more information about asbestos awareness and where to Management course. find an assessor or removalist, visit www.asbestos.act.gov.au or call 13 22 81. James Tsarouhas Master Grocers Australia provides the documents and guidance Prospect Plaza Foodland you need to deal with asbestos in your workplace. South Australia James Tsarouhas completed As part of our Hazard and Risk Assessment WHS System you the Certificate IV in Retail will receive a Dealing with Asbestos Policy and Guidance, PPCE Management course. Policy, Risk Assessment Policy Procedure and Guidance, Asbestos Management Plan and Guidance, Asbestos Register and an online training module on how to conduct Risk Assessments. Caitlin Studdert Zane Heinjus Bomaderry IGA Corryong FoodWorks Also contained within this system are numerous other policies, New South Wales Victoria templates and guidance including 40 Department Inspection Caitlin Studdert completed Zane Heinjus (store manager) Templates from which to choose dependent on your business. the Certificate IV in Retail completed the Certificate IV in Management course. Retail Management course. MGA Workplace Health and Safety Systems start from $399pa for one system or $2999pa for the entire bundle of 8 systems which are designed to cover your WHS needs. Emily Stoward Corryong FoodWorks To purchase a system see our website – www.mga.asn.au/ Victoria training-courses/workplace-health-and-safety-systems/ Emily Stoward (assistant manager) completed the Source: The Office of Regulatory Services’ Electronic News Bulletin 22.5.2014, Certificate IV in Retail ACT Government, Justice and Community Safety Management course.
www.mga.asn.au 28 Industry Events Protect your nuts
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Independent Liquor Outlets
June 2014 - Edition 4 Training 29
SWI training must be refreshed regularly. Don’t assume that if you Safe Work Instructions – SWI’s have trained someone when they start their employment, you don’t need to follow that up regularly. Ideally the training should Safe work instructions are sequences of steps for performing a be updated and completed each year. task safely in the workplace. Has your business put Safe Work Instructions in place for the safety of the employees? SWI’s, MGA has a solution - implementing the new Workplace Health sometimes known as SOP’s or safe operating procedures, are a and Safety System can assist you in achieving compliance and useful tool for training employees at all levels; they also assist in making your business a safer working environment for all reducing incidents within the workplace. Employees have specific employees and general public. responsibilities and therefore the information supplied must be relevant to the use of equipment safely or any other safety If you wish to find out more to assist you in an easy but effective issues within the workplace. It can be a complex undertaking to way to meet your compliance requirements please contact the keep up with regulations, policies, processes, control points and Training Department at Master Grocers Australia on 03 9824 the employee responsibilities especially when there are many 4111 (option 2) documents that need reviewing and updating.
Supa IGA Doc No: SWI 04.01 Revision: 1 Supa IGA Doc No: SWI 25.01 Revision: 1 O'Reilly's Supa Duper Store Issue Date: 12/02/14 Page: 1 of 1 O'Reilly's Supa Duper Store Issue Date: 12/02/14 Page: 1 of 3 Approved for use by: - Approved for use by: - For systems to achieve the objectives within the workplace Plan Section Name: Safe Work Instructions Plan Section Name: Safe Work Instructions BAND SAW WALL POSTER DELI SLICER WALL POSTER we need to have the right culture. We need to be genuinely Only properly trained and authorised employees are to use the Band Saw Only properly trained and authorised employees are to use the deli slicer ALWAYS USE CORRECT Personal Protective Clothing and Equipment (PPCE) Use safe Manual Handling technique Sharp object safety conscious and not just seen to be compliant, but actually Sharp edges, wear gloves Beware of trip hazards USING THE DELI SLICER operating in a very safety conscious fashion. Reasons that CORRECTLY USING THE BAND SAW 1. Make sure that the machine is clean and sanitary 1. Prior to setting up each day, make sure that the power to the band saw is switched off both at the wall socket and at the machine switch 2. Make sure that all surfaces on and around the band saw are clean and sterile systems may not work is that the employee did not know they 3. Make sure that the area around the band saw is tidy and free from obstructions and trip hazards 2. Ensure that the power is off both at the wall socket and at the machine switch 4. Put a clean, sterile tub beside the band saw to put your cuttings in 3. Make sure that all parts and guards are attached and secure 5. Check that the band saw is properly assembled, and that the blade has been correctly tensioned existed or where to find them. Having a system that has all the 6. Set the width gauge (if fitted) according to your requirements
7. switch the power to the band saw on at the wall socket 4. Ensure that the deli slicer is switched to ‘Manual’ setting – if the machine is in ‘Automatic’ 8. Ensure that the blade mechanism is clear and unobstructed, and turn the machine’s power switch on mode when turned on, it may cause injury as a result of the guide moving automatically procedures in one place makes it more productive and safer for 9. Place meat on the cutting guide. Ensure that all meat being cut is either frozen, or firm – never cut soft 5. Ensure that the machine is in the lowered position (if adjustable in height). Lower it if it has meat! been raised
10. Use the hand guard (if provided) to push meat through the blade. Always use the hand guard, if provided, and never your hand or any other object for this purpose 6. Set the thickness guide at ‘Zero’ – the machine should be left at ‘Zero’ when not in use to the business. Having Safe Work Instructions that are easy to find, 11. Never put your fingers in the direct line of the blade prevent accidental cuts or damage to the blade 12. Never cut pieces that are too small or too large to handle and control safely 7. Ensure that the machine is plugged in (make sure your hands are dry before plugging the 13. Never pull material backwards when you are cutting machine in to the wall socket) 14. Ensure that the machine is completely stopped before attempting to pull any work back away from the 8. Put the food you intend to slice on the guide bar follow, and understand makes it easier for employees to learn the blade 15. Cut in a straight line – never try to make angular or curved cuts unless the machine is specifically designed for this kind of work, and you have been specifically trained on how to do so safely 9. Place the hand guard on the food – the hand guard must always be used 10. Check that the blade is clear and turn the power on at the wall (make sure your hands are 16. Shut the machine off whenever you are not using it. Never leave the band saw running unattended dry) required knowledge and skills to operate equipment and perform 17. If you are working for any length of time, periodically turn the machine off (both at the machine switch and the wall socket), and check for and clear any build-up of meat matter/waste in the guards
18. Ensure that the machine switch is off, unplugged at the wall socket and completely static before attempting tasks safely in the workplace. Businesses must make sure that to clean it 11. Turn the power on at the machine 19. Clean the machine according to the manufacturer’s instructions, provided with the band saw. Make sure 12. Choose the desired settings (e.g. thickness etc.) you use the correct PPCE (including cut-resistant Kevlar gloves, if necessary) 20. Ensure that both the machine and the area surrounding it are properly cleaned, sterilised and tidied after each use the employees are trained in the work that they do and in the 21. Ensure that the band saw is regularly serviced and lubricated, as per the manufacturer’s recommendations
This Safe Work Instruction must be reviewed: After any accident or incident When training new staff If adopted by a new work group equipment that they use. But it also needs to be reinforced with If equipment, substances or process change ANNUALLY easy access to consistent, current and reliable information. © Master Grocers Australia Powered by Icon Global Link www.mga.asn.au © Master Grocers Australia Powered by Icon Global Link www.mga.asn.au
www.mga.asn.au 30 Training National Online Training Courses Food Safety
These nationally recognised online courses have been developed especially for delivery to all retail staff involved in all aspects of the preparation, storage and serving of food.
Duration Short Course Member Price Non Member Price
2 -4 hours Food Safety - Food Handlers $105 $115 2 -4 hours Food Safety Supervisors $105 $115 4 -8 hours Food Safety Supervisors & Food Handlers (combined) $180 $230 4 -6 hours Food Safety Supervisors - NSW only $150 $180
5 -8 hours Food Safety Supervisors & Food Handlers (combined) - NSW only $210 $230
60 minutes Allergen Awareness (GST applies) $53
Food Safety Program
In order to keep food safe and your business operational, food businesses need to comply with Food Safety Authority guidelines in each state and territory. This Food Safety Program provides everything you need to ensure compliance of your food business in your location.
Duration Food Safety Program Systems Member Price 2 -4 hours Food Safety Program Express $440 2 -4 hours Food Safety Program Medium $660 4 -8 hours Food Safety Program Super $1100
Retail Qualifications
MGA offers three retail qualifications; Certificate II (basic retail operational knowledge and limited practical skills), Certificate III (retail operations and/or supervision) and Certificate IV (first line management).
Duration Nationally Recognised Qualification Courses Fee for service Funded 12 months Certificate II in Retail (VIC) $2000 POA 12 months Certificate III in Retail (VIC) $2500 POA 24 months Certificate IV in Retail Management (Nationally - ex. NT) $2500 POA
June 2014 - Edition 4 Training 31 Responsible Service of Alcohol
This course deals with the skills and knowledge required to satisfy the requirements for responsible service of alcohol under state/territory legislation. All persons undertaking training as part of a national certificate in the serving of alcohol must complete this unit. Duration Short Course Member Price 3 hours Responsible Service of Alcohol - NT, WA, SA, ACT $55 4-5 hours Responsible Service of Alcohol - QLD $55
Health and Safety
Aims to provide employees with information and instruction on their responsibilities and the responsibilities of management with regard to workplace health and safety, including general and specific policies and procedures and what is required to ensure these are observed and followed. Duration Module Member Price Non Member Price 30 minutes Health & Safety Induction $25 $30 60 minutes Administer Workplace Health & Safety $40 $50 40 minutes Hazard Identification & Risk Management $40 $50 60 minutes Emergency Management $25 $30 30 minutes Store Security $25 $30 30 minutes Workplace Violence, Bullying & Harassment $25 $30 60 minutes Manual Handling $25 $30
Workplace Health and Safety System
Systems include customised policies, procedures, templates, safe work instructions, checklists, reminders, risk assessments etc. – everything you need to implement, monitor and maintain a WHS compliant workplace.
Module Member Price
General Workplace Health & Safety, Bullying & Harassment, Security, Manual Handling, Workplace Health & $399 each Safety Induction, Emergency Management, Hazardous Chemicals, Hazards & Risks
All 8 systems $2999
For bookings and more information visit www.mga.asn.au * All prices correct as of March 2014
www.mga.asn.au 32 Training VIC Face-to-face Training courses
Food Safety and RSA face to face courses
Month Date Time Course Member Non Member Price Price August 21/08/2014 1-5 PM RSA $75 $85 September 25/09/2014 1-5 PM RSA $75 $85 October 23/10/2014 1-5 PM RSA $75 $85 5/11/2014 9-4 PM Food Safety $180 $230 * Please note a light lunch will be provided to full day attendees November 19/11/2014 1-5 PM RSA $75 $85 December 17/12/2014 1-5 PM RSA $75 $85
All face-to-face classes will run at MGA’s Head Office, Suite 5, 1 Milton Parade, Malvern VIC 3144.
stores to use, a comprehensive energy efficiency booklet was MGA EEIP – Final Report and published on-line on the EEIP website, 8 fact sheets including business cases and case studies were developed and we also Results maintained a Blog for members to receive up to date information and be able to ask questions. Members who participated and MGA has recently submitted then took action have saved thousands of dollars in energy costs. the EEIP Final Report to AusIndustry – Skills and Energy Message from Rodney Allen (President of MGA) Programs. As president of the MGA Board I would like to thank the MGA/LRA appreciates the Department for the grant which has enabled us to develop an support of the Department exceptional suite of energy efficiency information materials and of Industry, through funding tools to assist our members to reduce energy consumption, from the Energy Efficiency reduce energy costs and assist them to become more profitable. Information Grants (EEIG) The project is a credit to MGA’s capability, skill and industry Program, on behalf of its expertise which will have a lasting impression on all our members members and other retailers for years to come. around Australia. Message from Jos de Bruin (CEO of MGA) The EEIG is a $34 million merit-based, competitive grants program established by the Commonwealth Government to assist Thanks to the grant MGA received to implement the EEIP, we industry associations and non-profits to provide practical, tailored have now embedded energy efficiency across our industry as energy efficiency information to small and medium enterprises a core pillar to support our members alongside, Legal and HR, (SMEs) and community organisations. Training and Compliance, Industry Representation and Industry Community and Membership Services. The objective of the EEIG Program is to empower SMEs and community organisations to make informed decisions about I would also like to thank our own internal staff, who have energy efficiency – and thereby reduce their operational costs. tirelessly travelled around the country to deliver all of the seminars. The material delivered is second to none in regard to MGA held information sessions by way of seminars and webinars the information and tools developed through the EEIP. throughout Australia a self-assessment tool was developed for Continued p.33-35
June 2014 - Edition 4 Energy Efficiency 33
Outcomes and impacts/benefits Acacia Ridge IGA Changes: As a result of the program and in conjunction with programs such as Metcash’s Energy efficiency assessment of their store: Lights were left on overnight Sustainability@Retail the following case studies have been developed: The air conditioning was running when not required The night blinds were not put down Gununamanda Limited correctly Changes: Capital cost: $15,000 33 kW solar power system Savings: $7,600 More than 300 LED lights Payback: Less than two years Two solar hot water systems Savings: $100,000 per annum on power bills
White’s IGA, Mt Coolum Changes: Lighting controls HVAC compressor optimisation Recommissioning of timers to control on/ off periods Capital cost: $27,970 Savings: $9,364 per annum Payback: less than three years
Donges Supa IGA Changes: LED lighting upgrade including refrigeration and freezer cases Queens Supa IGA Refrigeration re-commissioning Changes: Installation of anti-sweat control Adjusting lighting times Installation of voltage optimisation and Savings: $3,000 per month on energy costs power factor correction units Savings: $58,000 per annum in electricity savings Payback: two years
FoodWorks Creswick IGA Mansfield Changes: Changes: LED upgrade Upgraded to a range of LED T8s Capital cost: $6,196 Savings: $27,359 per annum Payback: less than 14 months Payback: 13 Months Savings: $349 per month
Ivanhoe FoodWorks Bright Supa IGA Changes: Changes: Replaced standalone cabinets with a new Refrigeration system linked to the main refrigeration rack Lighting Installed VSD’s to the low and medium HVAC systems temperature compressors Savings: $20,000 per annum in energy savings Redirected air intake locations to the HVAC Payback: less than 20 months system Upgraded the domestic hot water system Savings: $30,000 per year Payback: approximately four years.
www.mga.asn.au 34 Energy Efficiency Store Case Studies It has been assessed that the level of awareness and/or Bright Supa IGA knowledge level of energy efficiencies has increased through the Bright Supa IGA partnered with SEDAC Energy Management feedback received and as a results of stores taking action which is (SEM) through the Metcash Sustainability@Retail program testament to the project. to identify and implement energy efficiency upgrades. With the help of government funding from Sustainability Victoria’s There has also been an increased level of activity in relation Smarter Resources, Smarter Business Program, Bright Supa IGA to stores seeking expert advice and implementing store implemented a number of SEM efficiency solutions for their improvements. refrigeration, lighting and HVAC systems. They are achieving over MGA believe that the objectives of the project to develop and $20,000 per annum in energy savings or 12% of the total store present energy efficiency in a way that both engages and enables energy use. Factoring in the government funding, Bright Supa store owners and managers to recognise and implement energy IGA’s capital investment has a payback of less than 20 months efficiencies within their retail environment have been met. “Reducing our energy use by 10% has provided, a great bottom line and environmental benefits that we are proud to have achieved.” Nick Cook, Owner Bright Supa IGA Acacia Ridge IGA Acacia Ridge store owners Rob and Helen Gibson recently engaged SEDAC to undertake an energy efficiency assessment of Donges Supa IGA their store. By focusing on areas of high energy consumption, the After recently undertaking a Metcash Sustainability@Retail assessment led to a review and optimisation of the site’s controls energy audit of their store, Donges Supa IGA implemented to ensure a more efficient operation. Some of the initiatives that a number of SEDAC Energy Management’s solutions. The where identified included a review of when lights were left on upgrades included an LED lighting upgrade of the store, including overnight, if the air conditioning was running when not required refrigeration and freezer cases, as well as refrigeration re- and if the night blinds were not put down correctly. commissioning, installation of anti-sweat control, and installation of voltage optimisation and power factor correction units. The Overall, the site is saving 14% on their electricity costs each result is over $58,000 in electricity savings per annum (19% of the month. total store energy use) with a two year payback. This is equivalent to an average reduction in total energy use of approximately • Capital cost: $15,000 18,700 kWh per month.
• Savings: $7,600 “This energy efficiency solution is proving to be a great investment. After the two year payback period ends, we’ll be • Payback: Less than two years seeing $58,000 in annual profits that we didn’t have before!” Wendy Silk, Donges Supa IGA. The total savings equate to between approximately 10,000 to 20,000 kWh per month. Ivanhoe FoodWorks Ivanhoe FoodWorks has recently received a $25,000 Queens Supa IGA capital funding grant from Sustainability Victoria for various Rather than rely on existing automatic timers which turned all the improvements to reduce overall site energy use, including lighting on at 4am and turned lights off after hours, the Geraldton replacing standalone cabinets with a new system linked to the IGA teams played with different lighting combinations – such as main refrigeration rack, installing VSD’s to the low and medium half-lighting during after-hours night filling and departmental only temperature compressors, redirecting air intake locations to the lighting, e.g. when the bakery staff arrived each morning. HVAC system and upgrading the domestic hot water system to take advantage of reclaimed heat from the main refrigeration All department managers and staff were instructed how and plant. The store will also have a monitoring system installed so when to turn on and off lighting within their section using colour energy consumption can be managed in real time and energy coded light switches. efficiencies assessed. 2 The Queens Supa IGA store is 3,200 m with a peak usage of 420 The total capital cost of the project will be $150,000. Once kilowatts before the changes were made. The store is now saving completed the store is expected to save approximately $30,000 about $3,000 per month in energy costs without any capital per year. The entire project will have a simple payback of investment. approximately four years. Given the savings, the store is now trialling different lighting technologies to replace the existing high-bay systems and investing in solar PV to generate its own electricity.
June 2014 - Edition 4 Energy Efficiency 35
White’s IGA, Mt Coolum IGA Mansfield White’s IGA located at Mt Coolum recently engaged SEDAC, IGA Mansfield supermarket/grocery store is your typical small an energy management company, to assess their store energy business with an eye on overheads. use and recommend cost savings based on the identification and implementation of energy efficiencies. Areas that were Working closely with the store owners, LEDified Lighting investigated included lighting, HVAC and refrigeration systems. upgraded the Mansfield IGA Store to a range of LED T8s. Through the application of smart solutions, such as, lighting The upgrade to the LED T8’s attracted a saving of $33,000. This controls, HVAC compressor optimisation and recommissioning was half of the upfront cost, allowing the project cost to be of timers to control on/off periods, it was determined that the affordable. store was able to save 12% of the site’s total consumption for an investment of under $30,000 which included: While the light quality dramatically improved the store to be more inviting to shop in the changeover to LEDs also facilitated • Capital cost: $27,970 fresh produce to have a longer shelf life and better sell through.
• Savings per annum: $9,364 • Current Lights Operating Cost: $39,256
• Payback: less than three years • Cost of Upgrade: $66,012
To date, the site has reduced energy use by 8.5% or over 20,100 • Government Incentive: $33,820 kWh of electricity from November 2012 to March 2013, with some refrigeration adjustments still to be completed. SEDAC is • Customer Cost: $32,192 continuing to monitor energy use at the site to quantify the savings. • Annual Savings: $27,359 “Achieving an 8.5% reduction in 3 months given the • Return on Investment: 93% circumstances is a fantastic result” - Roz and Michael White Store owners. • Payback Period: 13 Months On average, 50% of electricity consumption costs are related to network charges. FoodWorks Creswick A recent network tariff review conducted by Schneider Electric FoodWorks Creswick found new ways to save money through an resulted in over $10,000 in monthly savings for a client over four LED Replacement program and payments facilitated through their sites. These savings had an immediate impact on what the client electricity provider. was paying for electricity consumption by changing the network After initially undertaking an energy audit of their store the tariff that was being applied by the retailer/distributor. regional FoodWorks retailer went the next step to engage a The responsibility of the network tariff applied is with the reputable LED supplier and installer to identify what financial customer and unless this is reviewed each year (in line with the options might be available to pay-off the investment through an network cost increases), businesses can miss out on these saving alternative funding approach. opportunities. Through a unique arrangement with the store's current electricity Network costs are ‘regulated’ costs, so the price cannot be provider organised by the LED company, the entire upgrade negotiated but the transfer to a lower network tariff can result in was able to be undertaken with no initial outlay and with the significant savings. total capital cost paid off over 6 equal instalments over the year, payable through the retailer's electricity bills, with no interest charges. Mornington Island’s only not-for-profit supermarket The supermarket, located on a remote island in the Gulf of Taking into account maintenance costs over the year, the store Carpentaria, has partnered with Infinity Power to install a 33 kW would actually save $162 over the year, with all of the costs paid solar power system, more than 300 LED lights and two solar hot through the electricity bills against actual energy savings. water systems, reducing their energy bills by almost $25,000. Even without the unique billing arrangement the total lighting Gununamanda Limited, the aboriginal not-for-profit company, upgrade would be paid off in less than 14 months, making it a which runs the supermarket, a general goods store and a café, very worthwhile and cost effective investment. currently spends almost $100,000 on power bills every year. • Total capital investment: $6,196 By replacing all fluorescent bulbs with LED lights the stores is able to save around 18,000 kWh every year which is to 10 per • Monthly charge on electricity bill: $413 cent off their current electricity bills. • Monthly reduction in electricity costs: $349
www.mga.asn.au 36 Training
June 2014 - Edition 4
PAR488 Zymil Retailer Mag Ad.indd 1 27/05/2014 2:20 pm