Business News Releases

Is Bill Shorten intending to deliver the ACTU its wish list of reforms?

FOLLOWING the Opposition Leader’s cryptic response to new ACTU Secretary Sally McManus’s controversial comments, Australia’s resource employers are calling on Bill Shorten to clarify which ‘bad’ workplace relations laws he intends to change if made Prime Minister.

Ms McManus yesterday outlined the union movement’s ‘wish list’ of changes, intending to damage the economy and take Australia’s workplace relations system back to the 1970’s, including:

  • Ability for unions to take strike action at any time, over any issue;
  • Having the Fair Work Commission, a tribunal headed by an ex-union boss, arbitrate disputes;
  • Reducing the bargaining power of employers;
  • Restricting employers from hiring part-time, casual or contract employees;
  • Preventing the Fair Work Commission from terminating expired, uncommercial enterprise agreements.

In response to Ms McManus supporting law-breaking by unionists in pursuit of these goals, Mr Shorten said he "believes in changing bad laws, not breaking them”.

“Ms McManus’s comments are terribly timed given last week, militant unionists led by the CFMEU illegally walked off worksites around the country, sucking millions out of the national economy,” AMMA chief executive, Steve Knott, said.

“It is extraordinary for the new ACTU leader to suggest the current workplace laws are ‘unjust’ given we are still operating under the legislation co-written by Julia Gillard and Bill Shorten at the behest of the union movement.  These are Labor’s workplace laws, smothered in the fingerprints of the ACTU.

“Does our alternate Prime Minister support a scenario where unions can strike at any time, over any issue? Does he support providing the Fair Work Commission, a body he helped set up and placed an ex-ACTU boss at its head, with arbitration powers over disputes?

“The current legislation already provides unions with the legal ability to strike when enterprise agreements expire. It provides unions generous powers to enter worksites, to run union membership campaigns in employee lunchrooms, and to insert themselves into agreement-making despite having a minority of employee support.

“Resource employers are deeply concerned with what the Opposition Leader’s real workplace relations agenda might be.  If he indeed does intend to ‘run Australia like a trade union’, Mr Shorten must clarify his position on key workplace relations issues and rule out supporting the damaging, regressive notions put forward by the ACTU’s new secretary.”

AMMA is campaigning for ‘Five Urgent Reforms’ to restore balance to Australia’s workplace relations system. Visit our campaign page and watch our animated video on union workplace entry laws.

www.amma.org.au

 

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ARA proposes a two-stage transition for Sunday penalty rates reduction

THE Australian Retailers Association (ARA) supports a two-stage transitional pay arrangement of the Sunday penalty rate reduction.

This phased approach will allow retailers to implement the benefits of the penalty rate reduction in terms of additional hours of work and employment opportunities in a reasonable manner. 

The ARA proposes the Sunday penalty rates reduction for permanent and casual employees be reduced to 175% from 1 July 2017. The second stage of this transitional arrangement proposes Sunday penalty rates for permanent employees be reduced to 150% from 1 July 2018.

ARA Executive Director, Russell Zimmerman, said phasing in these changes will assist retailers across the industry in creating more jobs, offering additional work hours and increasing levels of service to the community.

"After speaking with our members and legal providers, we propose the Sunday penalty rate reduction be phased through a two-stage pay arrangement,” Mr Zimmerman said.

“Based on the evidence presented to the Commission during this industry-wide case, employees in the industry would experience no, or very marginal, negative impact, as a result of this phased approach.”

The ARA has carefully examined the feedback received from retailers across the country and strongly believe Take Home Pay Orders will be an unsustainable process moving forward.

“Modern Awards needs to be simple, steady and easy to implement,” Mr Zimmerman said.

“Take Home Pay Orders will add an unnecessary level of administrative complexity to this transition which will be superfluous.”

The retail industry supports a phased penalty rate reduction process provided this does not impact negatively on retailers’ capacity to increase employment rates across Australia and sustain growth in the retail industry.

“Implementing a two-stage transitional pay arrangement for the reduction in Sunday penalty rates will allow retailers to roster additional staff on a Sunday, and give more employment opportunities to young workers seeking both extra hours and new employment over the weekend,” Mr Zimmerman said.

“With 725,000 people out of work, including 259,000 young people, the ARA believes the reduced penalty rates will make it easier for employers to hire staff.”

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $300 billion sector, which employs more than 1.2 million people. The ARA works to ensure retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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Creative and employer organisations to discuss innovation and creativity with committee.

AS PART of its inquiry into Innovation and Creativity: Workforce for the New Economy  the Standing Committee on Employment, Education and Training will hear from various creative and employer organisations in a series of public hearing roundtables to be held in Sydney, Melbourne and Brisbane.

Committee Chair Mr Andrew Laming MP said hearing from those working in creative industries and from employer groups was very important to the Committee.

“As an inquiry focusing on Innovation and Creativity in relation to the Workforce for a New Economy it will be good to hear from a wide variety of creative and employer organisations across three days in three of Australia’s major cities,” Mr Laming said.

Committee Deputy Chair Ms Terri Butler MP said she was looking forward to hearing from the organisations.

“The Committee has taken a lot of evidence on innovation and balancing this with some good discussions around creativity will be very useful and interesting. The roundtable forum will be a good way to allow witnesses to address each other and collaborate to bring the best views to the Committee,” Ms Butler said.

Further information on the inquiry, including the full terms of reference, is available on the Committee website.

 

Public hearing details

Sydney Public Hearing Roundtable details:
Time: 10.00 am – 12.00 pm and 12:45 pm – 2:45 pm
Date: Tuesday 14 March 2017
Location: Sydney Masonic Centre – Conference and Function Centre “Composite Room”
66 Goulburn Street Sydney

Melbourne Public Hearing Roundtable details:
Time:
12:45 pm – 2:45 pm
Date: Wednesday 15 March 2017
Location: Victorian Parliament, Room G1, 55 St Andrews Place

Sydney Public Hearing Roundtable details:
Time:
9.00 am – 11.00 am
Date: Thursday 16 March 2017
Location: Commonwealth Parliamentary Offices, Level 36 Waterfront Place, 1 Eagle Street Brisbane

Programs are available here.

The public hearing will be live broadcast and available at aph.gov.au/live.

House of Representatives Standing Committee on Employment, Education and Training

(02) 6277 4573 or This email address is being protected from spambots. You need JavaScript enabled to view it. or aph.gov.au/ee

Interested members of the public may wish to track the committee via the website

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IPA still pushing for a loan guarantee scheme

THE Institute of Public Accountants (IPA) is urging the Federal Government to introduce a state-backed loan guarantee scheme for small business.

“On average, 28,000 Australian businesses per annum face a binding finance constraint, whilst 118,000 face some access to finance issues,” said IPA chief executive officer, Andrew Conway.

“To help increase the availability of much-needed affordable loan finance to the small business sector, the Federal Government should introduce a state-backed loan guarantee scheme.

“Australia is one of the only countries in the developed world without such a scheme.

“A limited state-backed guarantee would encourage banks and other commercial lenders to increase loan finance available to small business.

“Evidence presented in the Australian Small Business White Paper suggests that by international standards, the cost of debt for Australian small businesses is high and risk-adjusted lending is not the norm in Australia.

“There is a strong case for designing and implementing a loan guarantee program in Australia to help remedy the specific problems of smaller and younger start-ups unable to finance new investment opportunities through normal commercial channels.

“Access to responsible and affordable finance will help many small businesses reinvest in their businesses and help create new ideas, new capacity and new jobs.

“When appropriately designed and administered, loan guarantee programs can deliver value for taxpayers through their support of employment, growth, productivity, innovation and exporting,” said Mr Conway.

The IPA’s recommendation for the small business loan guarantee scheme forms part of the IPA’s pre-Budget submission for 2017-18. For the IPA’s complete pre-Budget submission go to http://bit.ly/2jxoU7L

publicaccountants.org.au

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ACCC takes action against Audi over diesel emission claims

The ACCC alleges that Audi AG and Audi Australia engaged in misleading or deceptive conduct, made false or misleading representations and engaged in conduct liable to mislead the public in relation to certain diesel vehicle emission claims, and that VWAG was knowingly concerned in this conduct.

The ACCC alleges that between 2011 and 2015:

  • Audi AG engaged in misleading conduct by not disclosing the existence and operation of ‘defeat’ software in certain Audi branded vehicles. The software caused the vehicles to produce lower nitrogen oxide (NOx) emissions when subject to test conditions in a laboratory than during normal on-road driving conditions.
  • Both Audi AG and Audi Australia engaged in misleading conduct by representing that the vehicles complied with all applicable regulatory requirements for road vehicles in Australia when, because of the defeat software, that was not the case.
  • Using information provided by Audi AG, Audi Australia marketed the vehicles in Australia as being environmentally friendly, producing low emissions and complying with stringent European standards when this was not the case under normal driving conditions.
  • VWAG designed and supplied the engines and defeat software to Audi AG for installation in the affected vehicles.

“Consumers expect that there is some relationship between the performance of the car as set out in the sales brochure and their day to day on-road use. We allege that the installation of software which allows the vehicle to meet testing standards but then causes the vehicles to operate differently on the road, and associated representations about the vehicle and its performance, breach the Australian Consumer Law,” ACCC Chairman Rod Sims said.

The ACCC is seeking declarations, pecuniary penalties, corrective advertising, orders relating to the future use of findings of fact and costs.

Skoda-branded vehicles are also affected by the Volkswagen diesel emissions issue. The ACCC has decided not to pursue further action against Volkswagen (which owns the Skoda brand in Australia) at this time in relation to these Skoda vehicles, noting the lower volume of sales in Australia, the continuing class actions seeking damages for affected consumers and the proceedings which the ACCC has already commenced against Volkswagen in respect of Volkswagen and, now, Audi vehicles.

The Audi branded vehicles covered by these proceedings are:

A1 3 Door – 2011 to 2013

A1 Sportback – 2012 to 2015

A3 Sportback – 2011 to 2013

A4 Allroad – 2012 to 2015

A4 Avant – 2011 to 2015

A4 Sedan – 2011 to 2015

A5 Cabriolet – 2012 to 2015

A5 Coupe – 2012 to 2015

A5 Sportback – 2012 to 2015

A6 Avant – 2012 to 2015

A6 Sedan – 2011 to 2015

Q3 SUV – 2012 to 2015

Q5 SUV – 2011 to 2015

TT Coupe – 2011 to 2014

The Australian Design Rules implement international standards that regulate the emission of NOx from motor vehicles. NOx can cause respiratory illnesses and is particularly harmful to vulnerable consumers such as the young, the elderly, and those with pre-existing respiratory conditions.

Background

Audi Australia has supplied more than 12,000 affected vehicles to Australian consumers.

These proceedings are in addition to the proceedings that the ACCC instituted on 1 September 2016 against VWAG and its Australian subsidiary, Volkswagen Group Australia Pty Ltd (VGA), and relate to the same alleged conduct.

The ACCC’s action against VWAG and private class actions seeking redress for consumers affected by this conduct are currently before the Federal Court.

In December 2016, VGA and Audi Australia announced the implementation of a recall designed to remediate the diesel vehicles affected by the emissions software issue. The recall involves a software update and in some cases, a minor hardware upgrade, for the affected vehicles. The recall is voluntary and if consumers choose not to have the recall update applied to their vehicle, they do not waive their legal rights under the Australian Consumer Law.

VWAG is the world’s second-largest car manufacturer by sales volume in the world. Audi AG and VGA are subsidiaries of VWAG. Audi Australia operates in Australia independently from VGA.

www.accc.gov.au

 

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