A Print post no. 100011226 post Print
www.mga.asn.au August Edition 5 2015
MGA TAKES THE FIGHT FOR FAIRER COMPETITION TO CANBERRA
Hon Bruce Billson MP Hon Bernie Ripoll - MP Minister for Small Business and Shadow Minister Assisting the Competition Matters Leader for Small Business
National Support Office 1800 888 479 www.mga.asn.auwww.mga.asn.au
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Diamond British American Tobacco Australia
Platinum
Gold
Silver
Bronze
Associate
Warehouse and Brand
tasmanian Partners independent retailers
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Contents
CEO Report
05 CEO Welcome Our Mission Industry Representation The mission of MGA Independent 06 MGA Canberra Industry Business Breakfast 17th June 2015 Retailers is to deliver the best possible industry specific business support 08 services to independent grocery, liquor MGA Board Meetings Canberra and associate store members. 09 Meeting NSW Minister for Small Business 10th June 10 MGA Board and representatives meet with ACCC 1st July MGA National 11 NAB CEO invites to Small Business roundtable Support Office 13 Saving money with Vehicle and Equipment Finance Suite 5, 1 Milton Parade, Malvern, Victoria, 3144 P: 03 9824 4111 • F: 03 9824 4022 Industry News E: [email protected] W: www.mga.asn.au 14 Tasmanian Independent Retailers EXPO and Conference Freecall: 1800 888 479 15 Queensland ̶ two exceptional stores brought to life
Chief Executive Officer 17 MGA’s annual Grocery and Liquor Association Ball August 2015
Jos de Bruin 18 Reserve Bank of Australia inquiry into the card payment system 03 9824 4111 20 Expert argues against smokescreen on e-cigarette research
Corporate Partnership & 20 Fair Work Commission ignores retailer concerns Media Sales 22 Talking point ̶ public’s cognitive dissonance farm prosperity Steve Sellars 0407 399 240 24 Metcash expo 2015 [email protected] 03 9824 4111 Liquor News Editorial and Production 26 Retailer interview August edition
[email protected] 28 VCGLR announce Liquour License Fee and Increases July 2015
28 ALM appoint New Southern Regions General Manager
28 VCGLR appoints new Chair
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30 Community to benefit from improved online RSA
Liquor Committee 32 SA becomes the latest state to back a ban on powdered alcohol 32 Nature and extent of the online liquor industry George Kovits – President
Nick Cook – Mt Beauty FoodWorks Legal and HR
Rita De Fazio – FoodWorks Liquor 34 Something permanent for casuals?
Angelo Giannetta – 34 Avoiding dismissal claims on a transfer of business? Cellarbrations/Bottle-O 35 Proposed extensions of trading hours in Queensland Tony Ingpen – IGA Liquor 35 Reducing an employee’s hours Frank Palumbo - Bottlemart
Jeff Harper – IGA 36 Retailers not barracking for Grand Final Eve public holiday
Michael Reddrop – Alexandra FoodWorks Training
John Rodriguez – IBA/ALM 38 Obtaining a USI
Gary Woodgate - Duncans 39 Training snippets
39 WHS in the supermarket
40 Don’t let This happen to you
40 Infringement notices
40 The cost of neglecting necessary training
42 National online training courses
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CEO Welcome Coupled with a very successful MGA Canberra Industry Business The new MGA brand will be far more agile and modern in Breakfast on the 17th of June, for the first time in its history, MGA’s appearance and will capture all current grocery, liquor and non- Board of Directors met in Parliament House, Canberra for its board 30 food and beverage retailer members such as hardware and other Compliance checks for Snowy Mountains licensed venues meeting. This afforded MGA’s Board the opportunity to closely retailers, as well as, assist with the recruitment of new retail engage with an array of politicians from all persuasions to discuss members into the future. 30 Community to benefit from improved online RSA the most important issue and opportunity associated with the future prosperity of independent supermarkets, liquor stores and The new brand is strong, simple, authorative and friendly in retailers in Australia; The Harper Competition Policy Review Panel’s 32 SA becomes the latest state to back a ban on powdered alcohol appearance and resonates with current members expectations of recommendation to strengthen competition laws by amending the MGA’s progress and standing as a national employer organisation. wording in section 46 of the Competition and Consumer Act. 32 Nature and extent of the online liquor industry The launch of this new brand will be subtle and soft in approach From the 1st July this year MGA’s branding will be refreshed. The – we are not looking for fanfare but the new brand will be current MGA branding was brought to life back in early 2007 with progressively rolled out through MGA’s website, E-Checkouts, the LRA brand arising from the LSAV joining MGA in 2008. Both Legal and HR E-Alerts, magazine and stationery over the coming weeks brands have been enduring and have done a good job for us but it’s and months. 34 Something permanent for casuals? time for a change. Until next edition – successful trading 34 Avoiding dismissal claims on a transfer of business? The decision to change the brand/s was not made lightly. As time went on, the dual brand approach has become cumbersome and Jos de Bruin 35 Proposed extensions of trading hours in Queensland tired – in fact, having the 2 brands to cover both grocery and CEO, MGA Independent Retailers liquor has caused many inefficiencies and duplicity in the way we communicate with our members. 35 Reducing an employee’s hours Moving to the new branding position allows us to use the strong 36 Retailers not barracking for Grand Final Eve public holiday MGA acronym (which our current members know stands for Master Grocers Australia). It allows us to be stronger as one organisation Training and one force under the one brand which is there to safeguard independent retailers. 38 Obtaining a USI The strong MGA acronym is synonymous with members for the employment law, workplace relations, training and compliance, Old identity New identity 39 Training snippets advocacy and industry representation service and support that it provides members around Australia. 39 WHS in the supermarket
40 Don’t let This happen to you
40 Infringement notices
40 The cost of neglecting necessary training
42 National online training courses
Canberra Breakfast Hon Bernie Ripoll MP, Senator Nick Xenophon and Roger Drake
www.mga.asn.au
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humour whilst also sharing their personal and party views MGA Canberra Industry regarding competition law reform.The diversity of views toward the Harper recommendations illustrated to us all Business Breakfast – the diversity in thinking in regard to competitionlaw reform. We were very privileged to have such a panel of dignitaries with us at this event in Canberra to discuss this very 17th June 2015 important issue, given their heavy schedules. The breakfast was deemed by all those e who attended as an outstanding More than 100 MGA supermarket and liquor store members and success. We thank all those participants and guests for industry guests from around Australia attended MGA’s fourth attending, particularly, those who have travelled great Canberra Industry Business Breakfast on 17th June 2015. Held at distances to be with us. the Brassey Hotel in Barton, ably MC’d by MGA President, Rod Allen, the theme of this breakfast was, “Lets have fair competition – Other guests included; Hon Craig Kelly MP, senior change the law”. executives from the ACCC and Treasury department.
Special Guests and speakers included the Minister for Small Business We will run this event in Canberra in 2016. and Competition Matters, Hon Bruce Billson MP and Founder and Managing Director of Drakes Supermarkets in South Australia, Mr Roger Drake.
To coincide with this theme, MGA was able to organise a panel of handpicked dignitaries to have an open discussion about their views concerning the Harper Competition Policy Review Panel recommendations to introduce an Effects Test into section 46 of the Competition and Consumer Act.
The panel, facilitated by former ABC journalist, David Hardaker, included; Minister Billson, Mr Roger Drake, Assistant Shadow Minister for Small Business, Hon Bernie Ripoll MP, Greens Senator Peter Whish -Wilson and Independent Senator Nick Xenophon. All panellists were able to delight the audience with their wit and
Rod Allen, Roger Drake, Jos de Bruin Peter Strong, COSBOA, Kym de Britt Franchise Council Lou Jardin CEO of SPAR
Joe Bernaldi, Mark Garwood, Jag Rawat Hon Bruce Billson MP Tom O’Connell SPAR, Dimitri Spyrakis, SPAR
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Senator Peter Whish-Wilson , Hon Bruce Billson MP, Hon Bernie Ripoll MP, Senator Nick Xenophon, Roger Drake, Drakes Supermarket
Rod Allen, Roger Drake Sandy Chong CEO, Hairdressing Association, David de Garis NAB Paul Frasca
Matthew Whitlock, David de Garis, Kevin Manisamy Grant Hinchcliffe, Thomas Heine, Leigh Garrett
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Politicians who met with us include; Shadow Assistant Minister for MGA Board Meetings - Canberra Small Business, Hon Bernie Ripoll MP, Assistant Treasurer, Hon Josh MGA held its Board of Directors meeting in 2 parts in Canberra. On Frydenberg MP, Nationals Senator Matthew Canavan, Independent the 16th June MGA held its first board meeting in Barton and aside Senator Bob Day and Hon Craig Kelly MP. All politicians had a from dealing with the usual important member issues was also different view of the suggested reforms but one common thread able to engage with the Treasury Department’s Harper Competition was that competition laws definitely needed to be strengthened to Review Secretariat and COSBOA CEO Peter Strong on a variety of foster and protect the competitive process. competition related matters. MGA’s Board left Canberra with one very clear view. Owing to the Day 2, the 17th June, MGA’s Board meeting was held in a Senate diversity of views there is a great risk that nothing will happen Committee room in the centre of Parliament House. This is the first – no competition law reform will occur. To succeed in achieving time in MGA’s 125 year history that the MGA Board meeting has competition law reform politicians (our law makers) must have been held in Parliament House Canberra. a clear understanding of the Harper recommendations and be uniform in supporting those recommendations. Roger Drake, founder and Managing Director of Drake Supermarkets was a special guest of MGA’s board who met with a number of To clarify the validity of the Harper recommendations MGA’s Board government, opposition and independent politicians over the resolved to meet with the ACCC Chairman to seek the views of the course of the meeting to discuss and understand the views of each Competition Regulator. political party toward competition law reform as recommended by the Harper Competition Policy Review Panel.
MGA Board of Directors Marie Brown, MGA, Janine Bialecki, Treasury, Scott Rogerson, Treasurey
MGA Board with Roger Drake, meeting Assistant Treasurer Hon Josh Frydenberg MP in Parliament House Canberra
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Andrew Bray, Director, MGA, Robyn Hobbs, OAM, Hon John Barilaro MP, Jos de Bruin MGA Meeting NSW Minister for Small Business & Small Business Commissioner 10th June
MGA’s NSW Director, Andrew Bray and CEO, Jos de Bruin met with the NSW Minister for Small Business, Hon John Barilaro MP and Robyn Hobbs OAM, the NSW Small Business Commissioner, for a roundtable discussion concerning the many day to day issues MGA NSW members face in their businesses everyday.
The Minister, being a small business owner himself, was very receptive and responsive to the insights and views that were shared at this roundtable and is committed to making this a six monthly meeting so as to keep close to small businesses and their needs.
MGA discussed many issues including the burden of payroll tax, planning and zoning law issues, unfair competition, liquor and tobacco.
www.mga.asn.au
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MGA Board and representatives meet with ACCC– 1st July
The MGA Board and MGA representatives met recently with Mr. Rod Sims and his team at the ACCC, via a national video conference hook up, to discuss possible changes to the Competition and Consumer Act, as proposed in the Harper Review.
A number of issues were discussed, including the proposal to introduce an “effects test,” that might be a means of providing a level playing field in which all retailers, large and small, have an equal opportunity to grow their businesses.
The meeting gave clarity to issues around the “effects test” and MGA will be providing members with further information on this issue in the coming weeks. Rod Sims, ACCC Chairman
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• What are the issues, needs and challenges facing the sector and NAB CEO invites MGA to Small the small businesses you represent?
• What are you and your members finding out on the ground in Business roundtable terms of business conditions and their outlook?
Andrew Thorburn, Group CEO of National Australia Bank (NAB) • What more do you think NAB can do to support the sector in invited MGA and other Industry Associations to a “power hour” the future? roundtable discussion, held on the 3rd July, to discuss three topics concerning the health and prosperity of small and independently The “power hour” meeting, driven by senior NAB executive David owned businesses in Australia. Bannatyne, certainly generated some energy and thinking around the table toward making the life of a small business owner easier NAB has had a long history of focussing on commercially supporting in respect of understanding the commercial and operational the small to medium sized business sector and is the number one challenges many small businesses face on a day to day basis. bank in Australia for doing so. NAB CEO, Andrew Thorburn and his The NAB team were grateful for the information and knowledge team were very keen to glean from all those present some clear and they gained and it was a rich opportunity too for industry real insights into what small and medium sized businesses are facing organisations such as MGA to meet with a premier financial on a day to day basis with a view of NAB understanding how it can institution to share the frustrations our members are having in further assist their customers. There were 3 key questions the group their businesses. shared insights and discussed.
NAB CEO, Andrew Thorburn, hosts Small Business Round Table
www.mga.asn.au
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At NAB we’re lending $1 billion a month to Australian business
If you’re an MGA member looking for more yes, call NAB.
Maree Zwolsman, NSW, 0428 638 691 | Jordan Whittaker, QLD, 0429 212 655 Domenic Palmato, SA, 0404 889 517 | James Tickner, VIC, 0408 127 133 Ross Colley, WA, 0448 971 123
© 2015 National Australia Bank Limited ABN 12 004 044 937 AFSL and Australian Credit Licence 230686
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“My preference is to start at yes and work out the way to go Saving money with Vehicle and forward,” he says. “We finance a lot of specialised equipment for the right customer in the right situation. Another misconception is Equipment Finance that people don’t realise you can fund 100 per cent of the purchase More yes for MGA members price; people think they have to put equity into it, they can’t believe Businesses across a broad range of industries are turning to that we’ll fund the whole amount.” Vehicle and Equipment Finance as a cost-effective way to grow. As Australia’s largest business and agribusiness bank, NAB knows Here are three ways in which NAB Vehicle and Equipment Finance and understands a broad range of industries and working business can benefit you and your business. assets. The bank has provided Vehicle and Equipment Finance across retail, transport, materials handling, manufacturing, farming and Borrow 100 per cent of the purchase price. agricultural, health, medical, aviation, rail, IT and communication, Vehicle and Equipment Finance has many advantages over education, construction, mining, marine and energy. traditional loans for business owners, says Michael Cutting, Specialised Banking Executive at NAB. Tailoring solutions to the individual business. NAB’s approach to vehicle and equipment financing is to gain an This includes the ability to borrow 100 per cent of the purchase in-depth understanding of their customer’s business and offer a price, the fact that the asset acts as security for the loan and that tailored solution. It also makes the process as easy as possible with At NAB we’re lending the length of the loan is tailored to the usable life of the asset. a pre-approved limit in place so loan recipients can negotiate with Many business owners also appreciate the balloon or residual suppliers with more confidence. payment, which reduces loan repayments. “This is complemented with a master agreement with all the “We take into account the intended use of the asset and how that terms and conditions in it, taking away the need for lengthy impacts the effective life to set up a repayment structure that works. documentation each time you buy which can make multiple plant This allows the income being produced by the asset to help pay off and equipment purchases even faster,” says Cutting. “Customers the finance without straining the cash flow of the business.” who order equipment but are awaiting delivery can be vulnerable to says Cutting. interest rate fluctuations and NAB’s rate lock product lets them lock in a rate, taking away the uncertainty of interest rate changes and $1 billion the potential impact on their repayments and cash flow.” Matching repayments to cash flow. Another advantage of Vehicle and Equipment Finance is matching the repayments to the cash flow of the business to take into account To find out more about how NAB Vehicle and Equipment Finance any seasonality in the business. can help you brow your business, call 13 10 12 or visit: nab.com.au/equipmentfinance. This is an aspect that Cutting saw to great effect when he worked a month in Darwin, which has distinct seasons. Tourism operators usually experience an upswing in business during the dry season with demand slowing during the wet season from December to February. to Australian business “When we are funding these tourist operators, we look at repayment holidays over that time, so they pay the loan back over the nine months when they have better income,” says Cutting. “It’s a similar story for farmers. For example, in the cropping industry they’ll only get one payment a year when their grain goes to market so we organise for an annual instalment. For a business that’s starting up and putting in a new equipment line, we might start with a low repayment schedule for the first six months while the efficiencies are fine-tuned and building the equipment to produce at full capacity.”
Broad range of plant and equipment covered. If you’re an MGA member looking for more yes, call NAB. While there’s widespread awareness about Vehicle and Equipment Finance among SMEs, Cutting says people aren’t always aware of Maree Zwolsman, NSW, 0428 638 691 | Jordan Whittaker, QLD, 0429 212 655 the range of things that can be funded by this type of loan thinking their equipment is too specialised to qualify. What’s covered is just Domenic Palmato, SA, 0404 889 517 | James Tickner, VIC, 0408 127 133 about anything labelled as a chattel – anything movable, depreciable Ross Colley, WA, 0448 971 123 and identifiable.
© 2015 National Australia Bank Limited ABN 12 004 044 937 AFSL and Australian Credit Licence 230686
www.mga.asn.au
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Ivan Walker SUPA IGA St Helens, Judy O’Reilly MGA Craig Smith TIR, Sam Richardson, Grant Hinchcliffe CEO TIR, Peter Aulich Chairman TIR Tasmanian Independent Retailers EXPO and Conference
Tasmanian Independent Retailers (TIR) conference, expo and IGA Retailer of the Year Awards was once again held in the Wrestpoint Casino complex in Hobart on 19th & 20th June. TIR CEO Grant Hinchcliffe and his team can be very proud for organising a very high quality and well run industry event that connects, strengthens and unites independent retailers in Tasmania. IGA Express Lauderdale IGA Everday St Helens In the face of adversity, a market totally dominated by Coles and Woolworths, independents in Tasmania have been able to grow their sales and profitability. The supplier expo, the industry breakfast with speakers and guests, the Retailer of the Year Awards night were all superbly run and organised.
The Expo was well supported by local Tasmanian and national industry suppliers. Suppliers of products and services took pride in the merchandising and presentation of their booths. Retailers from all over Tassie came to the expo to take advantage of the many specials that had been organised by Ron Barker and his TIR Overall TIR Retailer of the Year- Super IGA Longford merchandise team. Retailer of the Year Award winners included;
The format of the program was altered slightly from other years to IGA Xpress Lauderdale – Nick and Marko Nikitaris enable the Retailer of the Year Dinner and Awards night to be held IGA Everyday St Helens – Chris and Katie Hill on the Thursday night of the Expo. A huge audience of over 400 Supa IGA Longford – Amy Reiner & Laurie Reiner retailers, suppliers and industry stakeholders gathered at the Grand Sam Richardson Perpetual Award – Ted and Fulvia French (IGA Chancellor Hotel and witnessed many of their retailer colleagues Everyday Youngtown) and friends be nominated and awarded with deserved recognition Overall TIR Retailer of the Year - Supa IGA Longford - Amy Reiner for their hard work in providing excellent customer service and & Laurie Reiner exceptional store presentation.
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The fruit and vegetable produce section is colourful, well presented Queensland – Two exceptional and exudes freshness. Fresh flowers are always available. The 15 metre long delicatessen is a major feature of this store making available an extensive range of cheeses, meats, gourmet items and stores brought to life in suburbs freshly cooked delicacies. Top quality products are sourced from local suppliers in the immediate area which is rich in agriculture and of Brisbane! farming activities.
Tyrone and Leanne Jones commenced in the Queensland grocery industry in a small supermarket in Brisbane in 1995. Since that time, with the help of their dedicated and determined staff and management teams they have evolved into a group of eight exceptionally presented supermarkets in the southern suburbs of Brisbane.
The Jones most recent store openings were at Thornlands and a greenfields site at Mount Cotton. The Thornlands store opened just before Christmas 2014 and Mount Cotton opened just before the Australia Day weekend 2015.
IGA Thornlands IGA Thornlands is located in a conveniently situated local shopping centre just off the main Redlands Bay Road. Stocking over 15,000 SKU’s, employing 50 staff, 900 square metres in size, with 6 grocery aisles, this store seems like a full line supermarket such is the very large range of fresh produce, meat, bakery items, health and gluten free products and an extensive choice of dry grocery. Customers love this new store!
Great care was taken in the design of the store to ensure energy There is also a Lenards and a large hot box which caters for Grab efficiency is maximised. LED lighting, Baker branded clear glass door and Go dinners “for time poor customers and tradies”. Staff take wall fridges (30) and freezers (20) and an inviting 11 metre meat great pride in the presentation of all departments to ensure the case and 13 metre produce case display products perfectly while store is looking 100% all of the time. There is a culture of providing keeping energy costs down. customers with more than what people expect! What a terrific store!
www.mga.asn.au
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Queensland This deli is also famous for its extensive range of local and imported IGA Mount Cotton gourmet and health food lines. The separate bakery section has a large variety of bread along with a select range of artisan breads. Officially opening on the 22nd January 2015, the new Jones Retail The fresh produce section is outstanding with beautiful quality fruit Group, IGA Mount Cotton store, located in Valley Way, is a beauty! and vegetables on display in a chilled 15 metre case along with This modern, well lit and well laid out store with beautiful polished a number of produce bins displaying a variety of locally sourced concrete floors has captured local shoppers with its exceptional products. Fresh flowers add colour to the store and are popular merchandise standards, its impressive presentation and importantly with the locals too. its friendly and customer focused staff. Five butchers operate on the premises ensuring local shoppers Stocking 17,500 SKU’s and 1000 square metres in size, this receive uncompromising quality and a variety of simple cuts and greenfield site is an extension of an existing small local shopping prepared meats for meals ready to go. Customers love the freshness centre. The range in this store is exceptional with most products a and quality of meat products in this store. consumer would want being in stock. Located in a semi-rural area with a large presence of local farming and agriculture, including a The Hot Box is a roaring success with deli staff recognising the local winery, this store will soon become the hub of this growing need for local tradies and residents for quick breakfast, lunch community as new housing estates become established in and dinner solutions. surrounding areas. Customer service is enhanced with a full service express lane along with 4 single service lanes for customers with a larger shop. This store is a terrific example of giving consumers what they want – great service coupled with a large range of fresh and great quality products in a clean, well lit exceptionally merchandised store!
Congratulations to Tyrone, Leanne and all the staff at the Thornlands and Mount Cotton stores. You have provided customers with an exceptional shopper experience!
Over 80 well trained staff are dedicated to providing exceptional customer service. Jones Retail Group head office and store department managers conduct ongoing staff training to ensure high standards in retailing are continually achieved.
There are 7 grocery aisles, 5 dedicated front bulk ends featuring exceptional ½ price promotions and national brand displays. A feature of this store is the very modern and energy efficient
Bonnet Neve glass door fridges (29), freezers (31), the 11 metre meat case and 15 metre produce case. The 20 metre long deli department is exceptional, providing consumers with over 120 hand cut cheeses, ready prepared meals and a Lenards gourmet section.
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MGA’s annual Grocery and Liquor Association Ball – 21st August 2015 On behalf of the GALA Committee we invite all members and industry stakeholders to attend the 66th GALA “Masquerade” Ball that will be held at the Peninsula Atlantic Central Pier Receptions on Friday 21st of August. The BigCityBeat band are outstanding and there will be lots of entertainment on the night.
Book your tables now to ensure you don’t miss out on a great night
of fun and networking with friends and industry colleagues.
MGA – Grocery and Liquor Association Committee
Michael Assimo – Beiersdorf / Nivea Kate Egan – Metcash/IGA Paul Ennis – Lion Ross Carr – Retail Worx Madeleine Smith – Reach Dale Clark – MGA Theo Stratopoulos – FoodWorks Sydney Kingstone – IBA/ALM Steve Sellars – MGA/CRE Jos de Bruin - MGA Celebrating the signature varieties MGA’s Liquor Association Ball invitation 2015 of the Clare Valley
One of Clare’s oldest brands, established in 1893
The Bin range was started in 1967 by Tim Knappstein
Leasingham has been an integral part of the Clare Valley for nearly 150 years
Consistent show success rewards the depth and integrity of these distinctly regional wines
For more information contact your
Enjoy Leasingham responsibly Accolade Wines Area Manager or 131 492
www.mga.asn.au
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This is a staggering increase and coincides with the introduction and Reserve Bank of Australia usage growth of Tap and Go and contactless transaction technology which the banks and credit card companies are promoting.
inquiry into the card There are less debit transactions and more credit transactions and less cash out opportunities negating member’s opportunity to be partially rebated and offset bank interchange and merchant payment system fees. In fact, costs have further increased owing to the wider usage of American Express cards which form part of the 4 banks On the 23 June MGA was invited to attend and participate in the companion card schemes. Contrary to what many people may say RBA Roundtable discussion and forum, chaired by RBA’s Malcolm and according to MGA members around Australia, The American Edey, concerning a review of card payments regulations. MGA NSW Express card is now a must accept card. Consumers want to use it Director Andrew Bray and CEO Jos de Bruin not only attended the because it rewards them with a generous points system compared round table but also attended previous consultation meetings. The with the standard cards. The more generous rewards system as a discussions included interchange fees, surcharging and companion consequence, attracts a higher merchant fee. cards (Amex). Members cannot impose a surcharge on credit card transactions to With the high growth in consumer usage of credit cards and the recover some of these costs because our competitions Coles and increased usage of credit versus debit transactions coupled with the Woolworths do not impose a surcharge. 4 banks adopting a companion card - an American Express card - bank In fact Coles and Woolworth’s, owing to their status as an Acquirer merchant fees have grown at a significant rate over the past 2 years. (a bank) pay far less in merchant fees than smaller businesses. Industry averages indicate that in FY2014 credit card related merchant Clearly an unfair advantage. fees grew by 25% and in FY2015 fees grew by a further 35%.
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The RBA’s Review of Card Payments Regulation has included this Many merchants offset their merchant fees by imposing surcharges. Roundtable meeting, consultation meetings and receiving 44 written This is not the case in the supermarket and retail liquor landscape. submissions, 12 of which were in confidence and so have not been These costs are absorbed into the cost of doing business. MGA also published on the RBA Bank website. suggested that surcharging consumers for credit card usage ought to be banned unless consumers had a choice of either paying by cash In view of escalating variable merchant bank fees and costs MGA or debit card. members are experiencing, associated with the increased usage of credit cards (Tap and Go & contactless), MGA argued strongly for MGA will keep members informed of any further progress with this the RBA to consider a reduction and capping of interchange and matter. Clearly, MGA acknowledges there is a case for paying for a merchant fees. MGA also supported bringing companion cards service to accept payments and transact them but the current card (AMEX) into the regulatory net (less merchant fees). payments landscape suggests there is gouging taking place and if nothing is done this serious issue will only grow. Many submissions received by the RBA, including the majority of those from merchants and consumer groups, argued that the interchange caps should be lowered and that compliance with the caps should be tightened.
www.mga.asn.au
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AVAILABLESOON Professor Hall and UQ collaborators Dr Coral Gartner and Dr Cynthia Forlini said those who recommended legalising e-cigarettes were often portrayed as “in the pay of the tobacco industry”.
But he said this, and other forms of ad hominem argument, prevented a better understanding of ways of combating one of the world’s greatest causes of preventable death.
“A policy that bans a less harmful form of nicotine while still allowing the sale of cigarettes is inconsistent,” Professor Hall said.
“Laws are giving much higher priority to the interests of hypothetical smokers (who could take up smoking via e-cigarettes) at the expense of current, especially addicted, smokers.
“I do not advocate laissez faire, but rather closely-regulated Expert argues against e-cigarette sales for current smokers as a step towards an increased regulation of the most harmful tobacco products – cigarettes.
smokescreen on “If research proves e-cigarettes are much safer than cigarettes and are an acceptable substitute, we would have a strong case for e-cigarette research removing cigarettes from convenience stores and supermarkets.” Source - the Conversation/www.uq.edu.au Until e-cigarettes are approved as medicines, smokers must obtain them from the black market. A leading Australian substance abuse expert is pleading for moderation in policies on e-cigarettes.
The University of Queensland’s Professor Wayne Hall said current law on electronic nicotine delivery systems placed researchers – Fair work commission ignores and people who wanted to use e-cigarettes to quit smoking – in a difficult situation. retailers concerns over E-cigarettes containing nicotine cannot legally be sold in Australia.
”We should not have to choose between banning e-cigarettes minimum wage increase completely and selling them alongside children’s candy,” Professor Hall said. Representative bodies for the retail sector, Australian National Retailers’ Association (ANRA) and Master Grocers Australia/Liquor Professor Hall is an advisor to the World Health Organisation and the Retailers Australia (MGA/LRA) have both voiced their concern over director of UQ’s Centre for Youth Substance Abuse Research. the Fair Work Commission’s decision to increase the minimum wage be 2.5 per cent. Both associations previously shared their concerns “We are told e-cigarettes will only be available to smokers as with the commissioning body in the lead up to the decision, medicinal products to stop them smoking if clinical trials show them advocating that a wage increase of this size would be detrimental to be safe and effective. for the retail sector. Nevertheless, Fair Work has announced the approval of a wage increase, which is expected to lift the minimum “However, regulation as medicines may not be the best regulatory wage to $18.99 per hour for a retail employee. model and, until the products are approved as medicines, smokers must obtain them from the black market. ANRA and MGA/LRA say the increase in minimum wage will add mounting pressure for retailers in a difficult marketplace, “Effectively, we are treating e-cigarettes like heroin or cocaine, and particularly for independents. stifling any real research on their effectiveness.”
Such is debate on the topic, Professor Hall’s paper - Ethical issues raised by a ban on the sale of electronic nicotine devices - has met diverse reactions from around the world before its official publication.
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IR August_2015_FINAL.indd 21 27/07/2015 3:18:00 PM 22 Industry News
Professor Ian Harper chaired the Harper Competition Policy Review Talking Point – public’s jarring Panel which submitted it’s final report on 31st March this year. In his view it comes down to balancing the efficiency that comes with size cognitive dissonance thwarts against the “potential detriment to Australian consumers due to the reduction in competition”.
farm prosperity There is no better example of the difficulty of finding that balance GROCERY shopping is more complicated than you might think. than the duopoly of giants that dominates Australia’s retail food industry. Between them, Coles and Woolworths share 72-74 per As individuals, we are apt to feel sympathy for the farmers and cent of the market. suppliers who the retail giants must be screwing to keep prices down and profits up. But, as consumers, we want cheap stuff. But these giants don’t just dominate the industry — they are everywhere in our lives. This is what psychologists refer to as “cognitive dissonance”. This means the feelings of discomfort that result from holding two Coles is not just the place where “prices are down, down”. Its conflicting beliefs at once. parent company, Wesfarmers, also owns Target, Kmart, Bunnings Warehouse, Officeworks, Bi-Lo, Liquorland, First Choice Liquor and People tend to seek consistency in their beliefs and perceptions. Vintage Cellars. Not to mention a couple of coal companies, a half- When there is a discrepancy like this between beliefs and dozen or so chemical and fertiliser makers, and a bunch of other behaviours, something has to give if the dissonance is to industrial brands. be resolved. Likewise, Woolworths are not just the “fresh food people”. They are As a community, we have the ability to do something about this by also alcohol people, through BWS, Dan Murphy’s and Cellarmasters, determining the point at which the market power of corporations and hardware people via Masters Home Improvement. ceases to provide benefits to society and becomes a threat that Both are also in the fuel business and financial services, including must be reined in. Unlike many other countries, this is an issue credit cards, phone plans, home insurance, travel insurance and we’re struggling with in Australia. life insurance.
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Aldi and IGA are making steady inroads in the grocery sector. Experts estimate they have a market share of 20-22 per cent. This means the four largest players in the sector account for about 95 per cent of the nation’s grocery market.
In the UK, five retailers control just over 70 per cent of supermarkets. In China, the largest five control 38 per cent. In the Experience ebm-papst US, Walmart is the largest player with 25 per cent.
Industry commentators predict there will soon be another player on the block, with the entry of Lidl into the Australian market. Lidl has annual sales of $128 billion worldwide and could be a formidable competitor.
Traditionally, Lidl’s main competitor has been Aldi. However, the size of the market is growing more slowly than the supply side. This means Lidl is sure to also take market share from Coles and Woolworths, who are feeling the pinch as Aldi grows.
There have been consistent calls for more scrutiny of the big two supermarkets with respect to suppliers, and for more oversight of competition practices. Earlier this week, the Australian Competition and Consumer Commission announced it will conduct a public review of Coles’ proposed acquisition of Supabarn supermarkets.
Supabarn is a privately owned supermarket group with stores in Canberra and Sydney. Many are similar in size to typical Coles or Woolworths stores, and include a liquor section.
“Given Supabarn’s position as a significant independent supermarket chain, an important focus of the ACCC’s review will be whether its removal as a competitor would substantially lessen competition between supermarket chains,” ACCC chairman Rod Sims said.
The legal test the ACCC will apply in considering the proposed acquisition is in Section 50 of the Competition and Consumer Act Reduce fan energy use by up to 50% and cut (2010). Section 50 prohibits acquisitions that substantially lessen maintenance costs – retrofit highly efficient competition in a market, or are likely to do so, but does not allow EC fans to your HVAC&R systems. The key to the ACCC to consider factors other than those related energy efficiency projects is capital return, to competition. making the savings exceed the costs as quickly as possible. ebm-papst are Australia’s leaders The ACCC will invite submissions from consumers, suppliers, in high efficiency EC fans for quieter operation, supermarket operators and other parties until mid-July. Consumers lower energy bills and almost zero maintenance. should be watching this with great interest. www.ECupgrades.com.au Hobart Mercury 24 June - Jan Davis is a former CEO of the Tasmanian Farmers and Graziers Association. These are her personal views.
Web: www.ebmpapst.com.au Phone: 03 9360 6400 Email: [email protected] Fax: 03 9360 6464
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MGA was privileged to be in attendance to provide retailers with Metcash Food and Grocery face to face support and advice. We thank all members who made Expo 2015 and IGA National their way to the MGA Booth. Congratulations to Michael Dempsey, Tania Alt and all the Expo Conference – 19th to 21st July team – it was a massive job well done! Expo Conference
The Gold Coast Convention centre was once again the meeting point The IGA National Conference was officially opened to IGA Retailers for many Foodland, FoodWorks, Friendly Grocers and Supa IGA, by Metcash Group CEO Ian Morrice on Sunday 19th July. Ian warmly IGA and IGA Xpress retailers, their families, their management and welcomed all retailers to the conference and invited them to explore their staff who came from around Australia. Hundreds of national all the possibilities to help them improve the performance of their and local fresh produce, dry grocery, point of sale systems, and businesses through better retailing practices. equipment suppliers displayed their innovative wares and provided retailers with support, service and advice, all under the one roof. The overriding theme of the conference was for all in our industry to be consumer led in all retail business practices. Understanding what This Expo is the perfect place for retailers to seek out new ideas the consumer wants is paramount to retail success. Ian launched to refurbish and upgrade their stores with new fridges, freezers, a number of “Diamond” initiatives that have been developed cooking appliances, delicatessen cabinets, shelving, trolleys, and into rich business information tools that will assist retailers to be much more. It has been said time and time again that an investment better placed to make decisions in store to drive toward providing into stores is an investment in growing sales! consumers with an exceptional shopping experience.
The Expo highlight was the range and presentation of the “Fresh National Retailer of the Year Awards Offer” in supermarkets. Suppliers were fastidious with their displays of fresh fruit and vegetables, freshly baked bread, red and white The IGA National Retailer of the Year Awards was held in the meats, flowers, small goods, cheeses, dairy products and ready Jupiter’s Casino Ballroom on Monday 20th July. MC’d by Shane cooked meals. Jacobsen, star of the new IGA TV advertisement, the evening commenced with a very moving tribute to the 100 year anniversary of the battle of Gallipoli (and Wordl War 1) including a bugler who played the last post and a Scottish Highlands Band. twelve hundred retailers, their families, industry stakeholders and suppliers, from all around Australia, gathered together to witness the best stores in the land across 3 store categories win national awards for retail excellence. Speakers on the evening included, IGA National Council Chairman, Ben Ryan, acting Metcash Food and Grocery CEO, Russell Parker, Shane Jacobsen Ben Ryan Mark Batenic, IGA International CEO and Chairman of IGA International, Doctor Tom Haggai.
National Retailer of the Year Awards
National Retailer of the Year! Foodland IGA Frewville SA - Commercial Retail Group (Chapley Family) IGA - Channel 2 Spiro Chapley Commercial Retaill Group SA Nick Chapley Commercial Retail Group SA Ritchies IGA Mt Eliza Vic – Fred Harrison & Team IGA Xpress – Channel 3 IGA Xpress, Tasmania - Nick and Marco Nikitaris Lauderdale, Tasmania. More award winners were as follows – Congratulations to all nominations and winners of these excellent awards National Delicatessen Award IGA Cashmere Qld - Trevor O’Connor White’s Supa IGA Bli Bli Qld - Roz and Michael White National Meat Department Award IGA 2nd Avenue Mt Lawley WA - James Kelly FoodWorks Orbost and Bacchus Marsh Victoria with MGA Supa IGA Atherton Qld - Michael Shakes
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National Bakery Department Award Ceduna Foodland IGA SA - Geoff Boettcher Ritchies IGA Mt Eliza Vic – Fred Harrison & Team National Service Department Award IGA Bellingen NSW - Michael Sutherland and Rhonda Rowland National Customer Service Award Ashcroft’s Supa IGA Summer Centre NSW - Ian and Rochelle Ashcroft. Grocery Department IGA Xpress - IGA Xpress Lauderdale, Tasmania - Nick and Marco Nikitaris National Retail Achievement Award - Regan Jensen, Whites Supa IGA Bli Bli Qld. South Australia Sustainability award - Morgan’s Supa IGA Meadow Heights Vic - Neal Morgan & Morgan family.
IGA Hall of Fame inductee
Aside from the many nominations and subsequent store of the year awards, so too was the new nomination and induction of a prominent industry family who have made an extraordinary contribution to the independent supermarket sector in Australia and more particularly in South Australia. It was a great pleasure Victoria IGA Express Lauderdale Tasmania for 1200 attendees to see Joseph Romeo talk about the humble and determined beginnings of his parents and the many sacrifices, together with their family, they undertook over many decades in building their very successful supermarket business today which is run entirely by his family – The Romeo’s Retail group
Congratulations to Elizabeth and Tony Romeo upon being inducted into the IGA Hall of Fame.
MGA Team and Retailers At Expo
Lou Cannatelli, JC Quality Nuts, Terry Stehbens, Chairman, Friendly Grocer Foodland IGA Frewville SA - Commercial Retail Group (Chapley Family) National Produce Department Award Ritchies IGA Mt Eliza Vic – Fred Harrison & Team Elisabeth and Tony Romeo IGA Hall of Fame Foodland IGA Frewville SA - Commercial Retail Group (Chapley Family) Fresh Department IGA Xpress - IGA Xpress Tasmania , Lauderdale - Nick and Marco Nikitaris National Grocery Department Award IGA Pearsall WA - Lee and Adam Woodgate and Roseanne and Oliver Bertoncini Romeos Supa IGA St Ives NSW - Joseph Romeo National Dairy & Freezer Department Award IGA Pearsall WA - Lee and Adam Woodgate and Roseanne and Oliver Bertoncini Whites Supa IGA Bli Bli Qld - Roz and Michael White National General Merchandise Department Award IGA Fresh Coober Pedy SA - Tim Carter
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Liquor News These superstores have been designed to embody the core values Retailer interview of the standard Cellarbrations brand in a larger scale, with a modern and welcoming environment, creating an entire “retail experience” for consumers while simultaneously meeting the consumer August edition expectations of quality products, convenience, great value and personal service. Matt France Superstore Cellarbrations I caught up with Matt France who has just opened his new 450 Kilmore VIC square metre Cellarbrations Superstore in the town of Kilmore a Shop 2/132-134 Powlett Street, Kilmore, Vic growing hub town which services the local regional area and a short 87 kilometres from the Melbourne CBD. Cellarbrations Superstores taking up the challenge
When the retail packaged liquor market is so dominated by the two chain store brands with their big box format, it is encouraging to see independent liquor retailers taking up the challenge and partnering with Australian Liquor Marketers (ALM) to launch the “Cellarbrations Superstore” big box format. There are currently 16 Cellarbrations Superstore nationally, 6 in Queensland, 4 in NSW, 3 in Western Australia, 2 in Victoria and 1 opening shortly in Tasmania.
The Cellarbrations Superstores are an important part of the Cellarbrations store network around the country and in many ways can be seen as the ‘flagship’ stores of the Cellarbrations brand.
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Matt when did you commence in the liquor industry? is done from my home office in Bendigo. This centralised Not sure of what career I wanted to pursue, in 1988 I started administration allows me complete control of our inventory and working with Stoneman’s Supermarket Group. pricing at each store.
Working my way through the food departments I was eventually What are some of the notable changes that have taken place over made manager of the liquor department of their new Long Gully your time in the industry, and what impact have they had on your store in Bendigo. I was then appointed group liquor buyer and business? promotions manager for our group of nine stores. In 1995 I moved The growth of the chains no doubt has had a huge negative impact to Melbourne where I started working for Peter Beretta at the on independents, but that has only made me work harder on Vaucluse Hotel in Richmond. I later became his manager for the developing a better offer to drive consumers to my stores. Langwarrin Hotel, a business that we built up over a period of time to a very large gaming, food and bar operation. What impact has online-trading had on your business and are you considering developing an online business as part of your In 2000, my wife Tiff and I decided to move back to Bendigo, where I business offer? started working as a sales representative with the then Independent No doubt online sales have had an impact on our sales in particular Distillers, now Asahi. Having developed a broad range of knowledge wine sales, now that every potential customer has a portable and skills by working in retail, hospitality and wholesale I decided I computer by way of a smart phone they can access any winery site wanted to further challenge myself and put those skills into practice and purchase what they want and have it delivered to their door. by venturing into my own retail stores, firstly in Daylesford and Personally I love shop retailing and the satisfaction you get from the then Wallan. interaction you have with your customers when making a sale. But I also know that it is now part of how business is done, so we are in What was your motivation to take on the superstore model? the process of establishing an online presence and hope to have it I had earlier converted my two stores to the Cellarbrations banner operating soon. and we found that the IBA model worked extremely well for us from both the key retailer program to the total market support that IBA How do you see shop front businesses developing into the future? were are able to deliver to independent stores. There will always be room for good bricks and mortar retailers, consumers like to browse stock and be offered personalised service We decided that we wanted to bolster our retail offer in the region, from good well trained staff. and in doing so we were looking for a strong point of difference, the superstore model fitted our vision perfectly. What advice would you offer your fellow retailers on how to remaining competitive? I found this main road, greenfield corner site we are on and I would say it is equally as important to work on your business as developed it to meet the specifications of a superstore layout. We well as in your business. Focus on your business’s strengths and incorporated a state of the art 36 glass door, 12 tonne capacity develop strategies to build on your weaknesses. Develop a plan to coolroom with a walk in self-serve beer, cider and pre-mix slab area be successful and be disciplined enough to stick to it. and have a further 400 square meters of retail space offering over 3500 SKU’s. In summary if you had the ears of politicians what would be your message? We had a soft brand launch to enable us to iron out any operational As a small business owner I welcome competition but it has to be bugs that we might encounter and are planning a major market fair competition, having two retailers controlling 70% of a market is launch shortly. The feedback from our customers to date has been not competition, so develop legislation that puts balance back into overwhelmingly supportive, with the main comment being that “it’s the market. great to see such a great store offering being made locally”.
As a multi Store Operator how do you manage the sites? The key to running any successful single site business is the same as multi store sites, and that is good management and staff. My manager here and the Wallan store is Bobby and she has been as instrumental in driving the success of my business as I have. I don’t think the establishment of the store would have happened as smoothly as it has for us without her commitment and hard work. By having multiple store sites we can offer our staff a career path, which I believe is crucial in keeping good staff.
Of course as well as good staff you also need a good point of sale and computer systems, and although I visit the three stores daily all of the administration, product, pricing updates and maintenance Jamie, Bobby, Matt France
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VCGLR Announce Liquor License ALM Appoint New Southern Fee and Penalty Increases Regions General Manager
“We are pleased to announce the appointment of Bernard Hughes as of 1st July 2015 to the position of General Manager Southern Region (VIC/TAS) for Australian Liquor Marketers. All gambling and liquor licensing fees and penalties have increased as of 1 July 2015. This increase applies to all licensing applications Bernard is indeed no stranger to the liquor industry nor ALM, with a and breaches under the following legislation and regulations: celebrated career spanning State Management, Sales Management, Marketing and Banner Management across businesses including • Liquor Control Reform Act 1998 Lion (Fine Wine Partners), Tucker Seabrook, Pernod Ricard and • Liquor Control Reform Regulations 2009 Australian Liquor Marketers in both Victoria and Western Why are the fees and penalties increasing? Australia. Bernard returns home to Melbourne joining us from The increase in fees and penalties for the 2015-16 financial year is a ALM WA where he has held the result of indexation under the Monetary Units Act 2004. position of State Manager.
The value of one fee unit rose from $13.24 to $13.60. while the Bernard’s significant liquor value of one penalty unit rose from $147.61 to $151.67. For more experience across a variety of information on liquor related breaches and associated penalties, portfolios coupled with his strong customer relationships will enable download Breaches under the Liquor Control Reform him to hit the ground running in Victoria. Act 1998 . Bernard has relocated from WA and will report directly to Scott What does this increase mean to licensees? Marshall CEO Australian Liquor Marketers. “
Licensees submitting licence applications or renewals, or paying penalties or infringements after 1 July 2015 need to pay the increased amount. VCGLR Appoints New Chair
Any application received by the Victorian Commission for Gambling Dr Bruce Cohen and Liquor Regulation (VCGLR) must be accompanied by the correct After an extensive search process, the Victorian Commission of fee. Failure to submit the correct fee will result in the application Gaming, Liquor and Racing (VCGLR) has appointed Dr Bruce Cohen being returned. as their new Chair.
For the fee amounts for 2015-16, download the Liquor licence Dr Cohen has an extensive background in public policy, regulatory fees fact sheet. development and government administration. He holds degrees in law and commerce from Melbourne University, as well as a doctorate in public policy from the Australian National University.
Dr Cohen has also served as a director on the boards of VENCorp, Snowy Hydro Ltd and Melbourne Water, and was previously Chair at VicTrack. He was also a former Commissioner with the Victorian Competition and Efficiency Commission for its inquiry into reform of Melbourne’s retail water sector.
MGA Liquor President George Kovits and MGA CEO Jos De Bruin recently met with Dr Cohen and acting CEO Catherine Myers to discuss the issues effecting the independent liquor retailer sector.
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IR August_2015_FINAL.indd 29 27/07/2015 3:18:11 PM 30 Liquor News - New South Wales
Compliance checks for Snowy Community to benefit from Mountains licensed venues improved online RSA
The Office of Liquor, Gaming & Racing (OLGR) will conduct Online Responsible Service of Alcohol (RSA) training will resume inspections of licensed venues across the Snowy Mountains region in NSW with much higher standards designed to balance quality throughout the winter ski season to ensure they are complying with training and access to providers. Following a review, a range of their licence conditions and the State’s liquor and gaming laws. improvements to the testing framework are to be rolled out over OLGR Director of Compliance and Enforcement Anthony Keon said two stages starting 1 July this year to provide a new training option licensed venue audits as well as overt and covert compliance checks for licensed venue staff including hotels, clubs and restaurants. will be conducted throughout the Snowy River Shire, with a focus on Jindabyne, Perisher and Thredbo. Some of the key improvements are:
“Between June and September each year there is an increased risk • In Stage 1, online training only to by provided to selected of alcohol-related harm in the Snowy River local government area providers who must be registered with the Australian Skills coinciding with the peak ski season and the large seasonal influx of Quality Authority (ASQA) visitors and activity that it attracts,” Mr Keon said. “OLGR will be conducting a targeted compliance operation during • Quality benchmarking to be overseen by the Office of Liquor, this period to ensure that we have well-run licensed venues that can Gaming & Racing (OLGR) enhance the appeal of popular tourism destinations like the Snowy and be welcoming for all.” • At least 50% of all questions must be written, not multiple Mr Keon said OLGR’s audits will focus on venue compliance with choice. liquor and gaming legislation, with a particular emphasis on: • Stage 2 will see a standard assessment tool to ensure uniformity. • Patron behaviour and intoxication levels Mr Grant said online testing is essential to providing licensed venues • Undesirable liquor promotions and activities with improved access to quality RSA training, especially in parts of regional NSW where classroom training may not be practical due • Compliance with licence conditions to distance.
• Responsible service of alcohol (RSA) and responsible conduct of “No matter if you’re in Broken Hill or Balmain, understanding how gambling (RCG) accreditation to responsibly serve alcohol is a crucial part of working in a licensed venue,” Mr Grant said. • Prevention of alcohol sales to minors. “Online training provides greater access to RSA training, however “Snowy Mountains licensed venues should expect to be inspected quality needs to be assured and that’s what the government has set during this period and it is important that they regularly review their out to do with these changes.” business practices and procedures to ensure they are compliant with legislative requirements,” Mr Keon said. From 1 July 2015, TAFE NSW and approved industry associations (or a provider they nominate) will be able to provide online RSA training Media Release by the NSW Government, Justice, Office of Liquor, under the improved framework with strict quality assurances. Gaming & Racing Wednesday 8 July 2015 Following this a new and enhanced online RSA training course will be developed throughout 2015-16 and provided to other approved training providers to begin using.
A trial of online RSA training was suspended in February 2014 after concerns about training standards, leaving limited training options available.
The staged reintroduction of online RSA training will help meet industry demands for trained staff while ensuring improvements can be closely monitored and fine-tuned if required before online training is offered more broadly.
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RSA online course improvements
Stage one improvements:
• Locked-down course materials to ensure students complete all training across four separate modules (Introduction to RSA, RSA legislation, Impact of alcohol, RSA strategies).
• Trainers required to mark final RSA assessments and provide feedback to students (i.e. automated processes cannot be used).
• More comprehensive written answers to questions. At least 50 per cent of assessments must be free text questions (i.e. not multiple choice).
• Training providers must satisfy the Office of Liquor, Gaming and Racing (OLGR) that they have appropriate measures in place to verify the identity of students, assess the competency of students, and minimise potential for fraudulent activity.
• Training cannot be conducted unless a training provider is registered with the Australian Skills Quality Authority (ASQA).
• Training providers can only offer online training during hours when trainers are available to immediately assist students.
• Compliance monitoring by OLGR. This may also include an audit of each training provider’s online system before training is made publicly available, and a requirement for regular reports from training providers to allow for quality benchmarking.
Stage two improvements:
• A new and enhanced online RSA training course will be developed.
• This will allow a standard assessment tool to be introduced to help training providers ensure uniform quality assessments of students.
More information including application forms for stage one of online RSA training is available on OLGR’s website at www.olgr.nsw.gov.au Media: Jarrad Schwark 0429 234 308
Media Release Troy Grant MP Deputy Premier of NSW Minister for Justice and Police
Wednesday 3 June 2015
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as online sales continue to grow much faster than traditional bricks- SA becomes the latest state to and-mortar retail.”2
In addition, the NAB Online Retail Sales Index for December 2014 back a ban on powdered alcohol reported that groceries and liquor combined saw year on year growth to December of 19 per cent, the highest rate of all online By Andy Young categories.3 South Australia’s Attorney-General John Rau has said that the state is working towards banning powdered alcohol and has joined the Recent research of online sales of liquor indicated that, while data growing chorus of voices pushing for a consistent approach across about the volume and growth of online liquor sales is limited, the country. findings suggest that online liquor sales are a small but quickly growing sector of packaged liquor retailers businesses with higher The product is already banned in Victoria and Rau agrees with many priced and boutique wines accounting for a large majority of online across the industry who have raised concerns over the risks and sales (approx. 95%) followed by craft & premium beer, spirits and harms associated with powdered alcohol. other liquor categories. “While it may be a novelty for many users, it has the potential of Whilst online liquor sales represent approx. less than 5% for most being misused and consumed in unsafe and inappropriate ways, liquor retailers in 2014, this compares favourably with 1% in 2011. particularly as it targets minors,” Mr Rau said. Online sales of liquor are either delivered to the purchaser or picked up from the store by the customer. “We know it is happening overseas and manufacturers are trying to launch the product here in Australia but we have an obligation to The demographic most attracted to online liquor shopping is the protect South Australian consumers. “mature market”. People 30 years or over with average sales for “Having a substance where there is difficulty in regulating the on line liquor being approx. $250, comprising largely of higher end amount used is simply unacceptable. wines ($15 to $30) that exceed the average price per bottle paid “We don’t want dangerous products such as powdered alcohol over the counter. readily available to young people as it could lead to lethal consequences.” MGA liquor suggests that all members be aware of the fast growing online shopping trends that are revolutionising the way people shop Rau said powdered alcohol comes with a number of risks, for their goods – liquor is no different. There are a growing number from sneaking it into venues where alcohol is not permitted to of customers who are time poor, who are shopping smarter and overindulgence through inappropriate methods such as putting it on welcome easy to use websites to do their wine, craft and premium food, snorting it or eating it straight out of the packet. beer and spirits shopping online. Powdered alcohol has been approved in the US and, although it is not yet available in Australia, its manufacturer Palcohol has 1 http://www.ibisworld.com.au/industry/online-beer-wine-and-liquor-sales.html previously expressed an interest in this market. 2 Lin, Ryan: IBISWorld Industry Report – Liquor Retailing in Australia, March 2015 3 http://business.nab.com.au/wp-content/uploads/2015/02/nab-online-retail-sales- Nature and extent of the online indexdecember-2014-pdf. liquor industry
MGA receives many queries from members around Australia in regard to online sales of liquor. Questions about who is able to sell liquor on line, what type of liquor license is required, what is the size of the market and so on. There are a number of facts members may wish to consider; There is increasing evidence that the sale of liquor online in Australia is a growing industry.
The market research firm IBIS World reports that the online liquor sales industry is in its growth phase. It estimates that Australia’s online liquor industry revenue has grown at an annualised 8.7 per cent over the five years through 2014-15, to reach $760.1 million.1
IBISWorld anticipates that “industry operators will increasingly depend on online sales channels over the coming years, especially
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IR August_2015_FINAL.indd 33 27/07/2015 3:18:13 PM 34 Legal and HR
Legal and HR Something permanent Avoiding dismissal claims on a for casuals? transfer of business?
The Union is preparing a case to be presented to the Fair Work Employers who purchase a business as an ongoing concern have Commission, seeking for casual retail employees to be granted few choices regarding which employee entitlements and benefits permanent status after working for an employer for 12 months. they inherit. However, an important benefit under the Fair Work Many retailers employ casual employees and they are prepared to legislation is that an incoming employer may refuse to recognise the pay an additional 25% to compensate for annual leave, sick leave, and prior service of employees for the purposes of unfair dismissal. any other benefits that compensate for the employment not being In other words, the incoming employer can re-commence the permanent. Many employees enjoy the additional money in their pay qualifying periods an employee has to serve to lodge an unfair packet and prefer payment of the higher rate. dismissal claim. Despite the length of service with the former employer, the new employer can start the clock ticking again on the The rates are attractive, as a casual adult employee working on a public 6 month and 12 month qualifying periods an employee has to serve holiday, under the General Retail Industry Award, receives $52.71 an before making an unfair dismissal claim. hour. Members should be aware that casual employees under the GRA are not entitled to overtime payments for work performed outside We encourage members to make use of this provision as it allows ordinary hours. you to determine the suitability of ongoing employees for your business needs. The legislation does require formal letters to be The Unions will argue that once an employee has worked for 12 given to the ongoing employees upon a transfer of business and the months on a casual basis it will not necessarily mean that the employee MGA Legal and HR team is happy to assist in this matter. automatically becomes permanent, but they should have the option to make that choice. The employer will then have no option but to agree with the employee’s choice.
Many employers rely heavily on casual employees, they like the flexibility of being able to increase or reduce hours. Employers are reminded that after 6 months employment, as a casual or permanent, all employees are able to apply for unfair dismissal. MOSCATO Although MGA will oppose the application to allow an application & SAUVIGNON BLANC for permanent status after 12 months service it should be noted that employment of casual staff will continue even if the Union is successful. As a precaution members should employ their casual employees on a truly casual basis, that is, no set rosters and only employed spasmodically. In fact an employee employed on a “truly casual basis” would not be eligible to apply for permanency.
The general opinion appears to be that the status quo should remain and employers should have the freedom to choose how they employ their staff. MGA will oppose the proposed change in the FairWork Commission.
Winner Alcohol Category Survey of 15,000+ people by Nielsen
For more information, contact your Brown Brothers or MGM Distributors Area Manager or call 1800 032 248
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Proposed extensions of trading Reducing an employee’s hours
An employer may experience difficulties maintaining staff hours hours in Queensland if there is a down turn in business. However, problems can arise if an employer simply decides to reduce a permanent employee’s MGA is currently assisting independent retailers in Queensland to hours without carefully considering the right course of action. It fight against the extension of trading hours. There are currently is advisable not to just make a full time employee into a part time three applications before the Queensland Industrial Relations employee or reduce their status to casual. This could be seen as an Commission (QIRC). unfair dismissal.
One application is seeking the extension of trading on Sundayand If you have full time, part time and casual employees and you wish public holidays in Goondiwindi. There is also an application for to reduce your workforce you should look firstly to see if the hours extended trading hours within the Pacific Fair and Robina Town of work for casuals can be reduced, before reducing the hours for Centre and there is an application to “harmonise” trading hours in your permanent staff. Only after you have carefully considered this South East Queensland, including extending trading hours in the option should you address the issue with permanent staff. morning and on Saturday evenings. MGA is currently involved in all three hearings and is preparing to oppose these applications in All full time and part time staff should already have their rosters that the QIRC. set out their hours of work in advance. If you need to reduce their hours you should have a meeting with the employees concerned to Our opposition to these applications will focus on how competition see if you can reach an agreement on a change of hours, or even a and the interests of customers will be adversely affected if the change of status. However, if an employer reduces an employee’s extensions of trading hours are allowed. It is clear that where working hours, or makes that person into a casual, without deregulation of trading hours has happened in other places there agreement then such action would be considered to be a dismissal. has been a clear movement of market share to the duopoly. It is quite apparent, from extensive evidence that has been collected If an employer and employee cannot agree on reduced hours of over several regions where the extended trading hours have been work and an employer can no longer afford to maintain the hours, implemented, that it is only the chains that benefit. then it may be necessary to consider making some staff redundant. This would be a last resort, but it is important for an employer not It is inevitable that if extended trading hours are introduced in to simply reduce hours without proper consultation and agreement the areas under threat that there will be closure of many smaller with the employee. If you have any concerns about the correct stores that have been established for years by hardworking families. course of action then please ring MGA to discuss the issue. There are likely to be job losses, a deterioration of local community, benefits such as support for local producers, and a definite decline in competition. MGA will be strongly fighting to support the interests of our independent retailers and we will continue the fight in other regions where similar applications are made to the QIRC. We will keep members informed of our progress in these matters.
www.mga.asn.au
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Easter Sunday public holiday has been finalised, it seems that the Retailers not barracking for grand final eve is the one causing the greatest concern. It could be argued that there will be economic benefits for the state arising out of the grand final eve holiday but that is unlikely to stop the Grand Final Eve Public Holiday alarm bells coming from the retail and the hospitality industries.
Victoria is often described as the sports capital of Australia. Other There may be increased tourism which will benefit hotels and states may be a little envious of this status, but they will be quite restaurants, and some stores might welcome the increase in foot happy to let Victoria retain this “claim to fame” if it includes traffic, but there are many businesses that will not be happy and payment for yet another public holiday. they will find the day will impose a huge financial burden.
The Victorian Government promised that if it was elected to So far the Government has not altered its intention to pursue the Parliament it would make not only Easter Sunday a public holiday, introduction of the grand final eve holiday. In the past crowds have but also Grand Final Eve. That might sound like an attractive gathered in the City to cheer on the AFL finalists, whether they are proposal but what will be the cost to industry if it is implemented? tourists, Melburnians or regional visitors. Only time will tell if the crowds are bigger and the tourists flock to Melbourne if a public Recently a PriceWaterhouseCoopers regulatory impact report holiday is declared. showed that the economic cost for both the Easter Sunday and proposed Grand Final public holiday could reach between $717 However, will shops, restaurants and cafes close because it’s just million and $898 million. too big a cost to bear? The “one day in September” may not be what the Government wants it to be in fact this year it’s already One of the major contributing factors to the cost of the additional different because if falls in October. public holidays is the penalty rates payable to employees. Whilst the
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IR August_2015_FINAL.indd 37 27/07/2015 3:18:15 PM 38 Training
Training Obtaining a USI • give your training organisation view access to your transcript; • control access to your transcript; and From 1 January 2015 if you are undertaking nationally recognised training delivered by a registered training organisation you will need • view online and download your training records and results in to have a Unique Student Identifier (USI). This includes studying the form of a transcript which will help you with job applications at TAFE or with a private training organisation, completing an and enrolment in further training. apprenticeship or skill set, certificate or diploma course. If you are an international, overseas or an offshore student please A USI gives you access to your online USI account which is visit usi.gov.au for more information. made up of ten numbers and letters. It will look something like this: 3AW88YH9U5. How to get a USI
A USI account will contain all your nationally recognised training It is free and easy for you to create your own USI online. records and results from 1 January 2015 onwards. Your results from 2015 will be available in your USI account in 2016. While you may create your own USI, training organisations are also able to create a USI for you. Training organisations should do this as When applying for a job or enrolling in further study, you will often part of the enrolment process when you begin studying. Where this need to provide your training records and results. One of the main service is provided, training organisations will let you know. benefits of the USI is that you will have easy access to your training records and results throughout your life. Steps to create your USI
You can access your USI account online from a computer, tablet or The following steps show how you can create a USI: smart phone anywhere and anytime. Step 1 Have at least one and preferably two forms of ID ready from the list below: Do you need a USI? • Driver’s Licence You will need a USI when you enrol or re-enrol in training from 1 January 2015 if you are a: • Medicare Card
• student enrolling in nationally recognised training for the first • Australian Passport time, for example if you are studying at TAFE or with a private training organisation, completing an apprenticeship or skill set, • Visa (with Non-Australian Passport) for international students certificate or diploma course; • Birth Certificate (Australian) • school student completing nationally recognised training; or • Certificate Of Registration By Descent • student continuing with nationally recognised training. • Citizenship Certificate You are a continuing student if you are a student who has already started your course in a previous year (and not yet completed it) • Immi Card and will continue studying after 1 January 2015. IMPORTANT: To make sure we keep all of your training records Once you create your USI you will need to give your USI to each together, the USI will be linked to your name as it appears on the training organisation you study with so your training outcomes can form of ID you used to create the USI. The personal details entered be linked and you will be able to: when you create a USI must match exactly with those on your form of ID. • view and update your details in your USI account; If you do not have proof of ID from the list above, you can contact • give your training organisation permission to view and/or update your training organisation about the other forms of ID they can your USI account; accept to help you get a USI.
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Step 2 Have your personal contact details ready (e.g. email address, safety equipment because they feel it to be too costly. Not having or mobile number, or address). anything in place to protect your staff and customers may result in Step 3 Visit the USI website at: usi.gov.au. more severe costs than not having it in place. Step 4 Select the ‘Create a USI’ link and follow the steps. Step 5 Agree to the Terms and Conditions. Your responsibility as an owner or manager of the store is to make Step 6 Follow the instructions to create a USI – it should only take sure that the business does not have any health and safety risks for a few minutes. Upon completion, the USI will be displayed on the your employees, customers and any other persons from the general screen. It will also be sent to your preferred method of contact. public. Having the knowledge and the understanding of WHS laws Step 7 You should then write down the USI and keep it somewhere will assist you to avoid any costs or damage that may arise from handy and safe. workplace injury or illness. Along with this knowledge, implementing procedures will give your business a strong foundation to achieve the correct culture throughout the store that is required to Training Snippets achieve compliance. Peter Clay – Orbost FoodWorks If you need or want to reduce potential health and safety hazards Peter has been working in the retail trade for 8 years. In this time within the workplace but do not know where to start then contact he has gained valuable experience in customer service, stock the Training Department at MGA. We have a very simple solution management, ordering and receiving. Peter has worked for the to assist you on your way to creating a culture and allowing a better independents and for a chain but returned to the independent understanding of your requirements. A WHS system should not be sector where he now works for the Orbost FoodWorks. He has been seen as an extra cost or burden, you should look at it as a tool to working in the Point of Sale area while completing the course. The address and reduce any health and safety issues before they course has enabled Peter to fine tune his leadership skills and now may escalate. has a role using many of those skills and the knowledge that he has gained while completing the Certificate IV in Retail Management. Under the WHS laws you are obliged to provide the following to Completing the course has developed many of the required to ensure safety for employees, customers and the public. assist in the day to day running of the store and allowed him the satisfaction of receiving formal recognition for his training. He has • Safe working premises a better understanding of how to prevent OH&S issues and how to handle them if they do arise within the store. Congratulations Peter • Safe equipment and materials from the training department for a job well done. • Safe systems in place Nicolle Osborne – Sussex Inlet Spar Nichole works in Sussex Inlet which is a small town in the South • Safe working instructions or information available Coast region of New South Wales. It is a quiet town during the winter months but come summer the population booms. The Spar • Correct documented training and supervision store is the only supermarket in town to cater for the locals and the many holiday makers. Nicholle previously had no formal training • Provide suitable working environment and facilities within the retail sector. This opportunity has enabled Nicholle to develop the skills and confidence to engage at different levels in If you are complying with these in the correct manner then you dealing with a broader range of issues as she has developed a better are at less risk of being prosecuted and fined, and to help you keep understanding of what is required in the retails sector. She has trained/skilled staff. To have a strong health and safety culture developed a great knowledge in the OH&S area and can certainly within the business owner/managers are required to be seen as a identify any issues within the store. Nicholle has also developed the leader that is committed to the health and safety of the employees. skills to lead a team to achieving the common goals of the business. Staff value an owner/manager that is seen to be proactive and gives Even though Nicolle was already a valuable asset to the business, clear direction and commitment. Owners and managers need to the course has fine-tuned her already acquired skills and knowledge consult with employees and be seen to be developing or reviewing to bring her to a level that she was hoping for. Congratulations on a systems that may or may not be in place. job well done in completing the course. As we all have a responsibility in regards to WHS, getting staff involved will assist in having the policies and the procedures followed at all times which in turn will reduce the risk of injury WHS in the supermarket and illness in the workplace. Employees are the ones that usually Ensuring a safe working environment is critical to the success face the hazards of a task, and often are the ones that have the of your business and is one of the best ways to retain staff and knowledge and experiences that makes them a valuable part of maximise productivity. Having a safe work environment also reduces setting the health and safety standards in the workplace. Involving any risk of injury or at worst death in the workplace. Many owners staff in the decision and reviewing process allows them to take a and managers avoid implementing safe working procedures and better ownership of WHS issues within your business.
www.mga.asn.au
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offenders were convicted with offences directly related to a Don’t Let This Happen to You lack of training.
These are some recent convictions and fines for food safety What’s more, the majority of the convicted vendors charged with breaches in supermarkets and small grocery stores. food safety training breaches were also charged with breaches All convictions are recorded and offenders are published in relating to poor hygiene, hand-washing and cleanliness – issues ‘Name and Shame’ registers. which could easily be managed with better training.
• In SA a Coles store was convicted and fined $42,000 for selling out of date deli meats. The Cost of Neglecting
• A 7-Eleven in NSW fined for selling out of date milk and not having adequate garbage and recycling facilities. Necessary Training (Australian
In NSW Coles, Woolworths and IGA stores were fined for various beaches: Food Safety News)
• ‘The IGA store was caught selling potato salad, fish, yoghurt and The price for failing to undergo the correct training is not only high in bread more than two weeks past their use-by date. terms of finance, but also in regards the reputation and future success of a business. • Two Caltex Woolworths shops were also fined for selling milk past its use-by date . Once an eatery has been discovered to breach Standard 3.2.2 Clause 3(1) (b) of the Food Act S16 (1), their details are added to • Coles supermarkets have been fined for displaying ‘high-risk’ the register for twelve months where the public can access details foods at incorrect temperatures.’ about their misconduct. The clause demands that all food-based establishments are responsible for ensuring that the people who are supervising or undertaking food handling operations must have Infringement notices “knowledge of food safety and food hygiene matters”.
Councils are able to issue infringement notices for certain food Some of the establishments in Victoria that were recently charged safety or hygiene offences. This is a small sample from a range of with failing to comply with food safety training laws include: offences regarding: • Milk Torquay Pty Ltd: Fined $6000.00 as part of their aggregate • failure to store, process, display and transport food; order, with $10,000 costs.
• lack of cleanliness and adequacy of food premises; • High Street Bakers and Confectioners of Thornbury: Fined $40,700.00 as part of their aggregate order with $1,300.00 costs. • failure to clean and sanitise food equipment; • Dream Cakes Café of Oakleigh: Fined $5,000.00 as part of their • operating food premises without registration or notification; aggregate order with $6009.35 costs, and $10,000 in another aggregate order with $6009 costs. • failure to keep the required records on site. While it’s safe to say that these convicted vendors were found The complete list of offences for which infringement notices may guilty of various breaches, including hand-washing and cleanliness be issued is listed in Schedule 1 of the Food Act. These offences are problems, it’s shocking to imagine that in 2015, restaurants, cafes, found in chapter 3 of the Food Standards Code and are known as and eateries are still staffed by individuals ignorant of food the Food Safety Standards. A complete guide, Safe Food Australia. safety matters. A Guide to the Food Safety Standards is available on the web www.foodstandards.gov.au/publications/pages/ Food Safety Supervisor (all states) safefoodaustralia2nd519.aspx Monitor Food Safety Program. code is a criminal offence. The Importance of Training Many restaurants, cafes, and related eateries in Victoria have earned their place on the register for improper food handling practices in Victoria. The offences were numerous, and despite the ease of access to food safety training across Australia, 25% of the total
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www.mga.asn.au
IR August_2015_FINAL.indd 41 27/07/2015 3:18:17 PM 42 Training National Online Training Courses Food Safety Retail Qualifications
These nationally recognised online courses have been developed MGA offers; Certificate II (basic retail operational knowledge and especially for delivery to all retail staff involved in all aspects of the limited practical skills), Certificate III (retail operations and/or preparation, storage and serving of food. supervision) and Certificate IV (first line management). Basic Food Handling Certificate II in Retail (VIC) Duration: 20-30 minutes Duration: 12 Months Member Price: $25 Fee for Service: $2000 | Funded: POA
Food Safety Supervisors Certificate III in Retail (VIC) Duration: 4-8 hours Duration: 12 Months Member Price: $105 Fee for Service: $2500 | Funded: POA
Food Safety Supervisors – NSW Certificate IV in Retail Management Duration: 4-8 hours (Nationally – ex. NT) Member Price: $150 Duration: 24 Months Fee for Service: $2500 | Funded: POA Monitor Food Safety System & Plan Duration: 2-4 hours Member Price: $105 Responsible Service of Alcohol
Food Safety Supervisor & This course deals with the skills and knowledge required to satisfy the requirements for responsible service of alcohol under state/ Monitor Food Safety System territory legislation. All persons undertaking training as part of a Duration: 6.5 hours national certificate in the serving of alcohol must complete this. Member Price: $180 Responsible Service of Alcohol – NT, WA, SA, ACT Food Safety Program Duration: 3 hours Member Price: $55 In order to keep food safe and your business operational, food businesses need to comply with Food Safety Authority guidelines Responsible Service of Alcohol – QLD in each state and territory. This Food Safety Program provides everything you need to ensure compliance of your food business. Duration: 4-5 hours Member Price: $55 Food Safety System & Plan $440 Express Store $660 Medium Store $1100 Super Store For bookings and more information visit www.mga.asn.au
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Health and Safety Workplace Health and Safety System
These courses aim to provide employees with information and Systems include customised policies, procedures, templates, instruction on their responsibilities and the responsibilities of safe work instructions, checklists etc. – everything you need to management with regard to workplace health and safety. implement, monitor and maintain a WHS compliant workplace. Health & Safety Induction General Workplace Health & Safety Duration: 30 minutes Annual Fee: $399 Member Price: $25
Administer Workplace Health & Safety Bullying & Harassment Duration: 60 minutes Annual Fee: $399 Member Price: $40
Emergency Management Emergency Management Duration: 60 minutes Annual Fee: $399 Member Price: $25
Store Security Hazardous Chemicals Duration: 30 minutes Annual Fee: $399 Member Price: $25
Manual Handling Hazards & Risks Duration: 60 minutes Annual Fee: $399 Member Price: $25
Workplace Violence, Bullying & Induction Harassment Annual Fee: $399 Duration: 30 minutes Member Price: $25 Manual Handling Hazard Identification & Risk Annual Fee: $399 Management Duration: 40 minutes Member Price: $40 Security Annual Fee: $399
Full Bundle of 8 WHS Systems Annual Fee: $2999 Monthly Fee: $265
www.mga.asn.au
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