Business News Releases

Bright future for ship building in South Australia

MINISTER for Defence Industry, Christopher Pyne MP, has launched the Pricewaterhouse Coopers (PwC) Australia’s report, which outlines the significant economic benefits of naval shipbuilding to South Australia over the coming decades.

Mr Pyne welcomed the report which estimates 8000 new jobs will be created in South Australia, demonstrating the impact of the Government’s commitment to this national enterprise.

“This PwC report illustrates just how beneficial to the South Australian economy the Turnbull Government’s $90 billion Naval Shipbuilding program will be. This is great news for South Australians currently working in the shipbuilding industry as well those wanting to find work within the industry in the coming years,” Minister Pyne said.

“Not only will there be thousands of new jobs as a result of the Government’s $90 billion naval shipbuilding endeavour, but South Australia will be hallmarked as Australia’s key naval construction centre.

“The shipbuilding aspect of programme alone will triple the South Australian workforce and boost Gross State Product (GSP) by $134.4 billion over the next 40 years.”

“The report also states that for every $10 million in expenditure in South Australia directly related to shipbuilding, there is a total of $24 million in additional gross state product,” he said.

“PwC also estimates that the shipbuilding enterprise will deliver a 3.4 per cent increase in South Australia’s total economic activity. In reality this means adding a total new mining industry to the South Australian economy year on year.

“The Turnbull Government is committed to maximising Australian industry involvement in the naval shipbuilding enterprise and as outlined in the Naval Shipbuilding Plan released in May 2017, the continuous naval shipbuilding and sustainment programs will bring long-term employment and economic benefits to all South Australians.

Report link: https://www.pwc.com.au/publications/pdf/defence-briefing-note-oct17.pdf

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ARA calls upon NSW Government ot abandon 'unnecessary' gift card regulations

THE Australian Retailers Association (ARA) strongly oppose the NSW Gift Card Reforms as the proposed regulation by NSW Fair Trading will significantly disadvantage consumers, hurt small businesses and place NSW at a competitive disadvantage to other states. 

The ARA on behalf of the NSW Business Chamber (NSWBC), Australian Sporting Goods Association (ASGA), Franchise Council of Australia (FCA), Pharmacy Guild of Australia (PGA), and Restaurant and Catering Australia (RCA) all disapprove of the proposed reforms to NSW gift cards as previous Federal inquiries into the operation of gift cards have found no associated consumer benefit to altering the regulations.

ARA Executive Director, Russell Zimmerman, said the ARA along with the above industry groups are concerned that members and the business community were not properly notified of these reforms and believes implementing any changes without consultation to key stakeholders is concerning. 

“Introducing a three-year minimum expiry limit for gift cards within New South Wales places an unnecessary regulatory burden and significant additional administrative costs on small, medium and large businesses,” Mr Zimmerman said.

“It is unreasonable to expect small retailers and family businesses to amend their administrative practices and incur extra liabilities on their books simply to respond to unnecessary regulation.”

The ARA are highly concerned these reforms will also create jurisdictional and competitive issues for small businesses in New South Wales. 

“Gift cards are issued to consumers free of charge, with the majority used within their first 12 months. Increasing red tape and imposing conflicting rules on gift cards from retailers who operate across the nation will simply not work,” Mr Zimmerman said.

“This will restrict trade and competition between New South Wales and other states, and there is no means of monitoring the use of gift cards across borders.”

Given the issues of consistency, the extra administrative burden on small business, and the lack of engagement with stakeholders, the ARA call upon the NSW Government to abandon these unnecessary regulations, which will serve to hurt consumers and small businesses alike.

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $310 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 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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Online safety a must for small businesses

SMALL business owners across Australia are encouraged to take part in Stay Smart Online Week by taking simple steps to ensure that they don’t fall victim to cyber criminals.  

Minister for Small Business Michael McCormack said cyber criminals don’t discriminate when looking to extort or disrupt operations and often take advantage of small businesses.

“In a rapidly changing online world small businesses need to be equipped to manage the challenges that cyber criminals and syndicates pose,” Mr McCormack said.

“I encourage all small businesses to learn more about the risks of being online and how to protect their business.

“Cybercrime is estimated to cost the Australian economy more than $1 billion a year, and around 43 per cent of cybercrimes are targeted at small businesses.

“There are practical steps that small businesses can take to improve their online security to ensure that personal information doesn’t fall into the wrong hands.

“Setting strong passwords, making sure your software is up-to-date, backing up your important data and knowing what to look for with online scams are just some of the ways can work towards improving the online security of your business.

“Stay Smart Online Week is the perfect time to take steps to improve your cyber security and to talk to family, friends, and colleagues about internet safety.

“Everyone has a role to play to ensure Australia’s cyber security and Stay Smart Online Week is a great opportunity to ensure you are taking effective cyber security measures.

“If you think you or your business has been targeted in a scam or cyber-attack you can take action. You can report suspicious online activity at the Australian Cybercrime Online Reporting Network website or at the Scamwatch webpage.”

Stay Smart Online Week, from 9-13 October, is a national awareness raising initiative to encourage Australians to be more proactive about their cyber security.

For more information about Stay Smart Online Week 2017, visit the Stay Smart Online website.

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Westpac and ANZ to face parliamentary scrutiny

THE House of Representatives Standing Committee on Economics is conducting further public hearings with Australia’s four major banks in October as part of its ongoing scrutiny. On 11 October 2017 in Canberra the committee will hear from Westpac and ANZ banks.

The committee’s First Report was published in November 2016, following on from the initial public hearings in October 2016. The committee affirmed the ten Recommendations of its November Report in April 2017 following on from the further public hearings held in March of this year. In the May Budget, the Government broadly adopted nine of the committee’s ten Recommendations.

Recommendations adopted by the Government relating to the banking sector include a one-stop-shop for consumer complaints, a regulated executive accountability regime, and new powers and resources for the ACCC in investigating competition issues in the setting of interest rates.

The committee’s mandate from the Government to review the banking sector is ongoing. The Chair of the committee, Mr David Coleman, MP, stated that ‘these hearings provide an important mechanism to hold the four major banks to account before the Parliament.’

 

Public hearing details: 

Wednesday, 11 October 2017

Main Committee Room, Parliament House, Canberra

Westpac—9.15am to 12.15pm
Mr Brian Hartzer, CEO
Mr Peter King, Chief Financial Officer

ANZ—1.15pm to 4.15pm
Mr Shayne Elliott, CEO
Mr Graham Hodges, Deputy CEO
Ms Alexis George, Group Executive, Wealth Australia

The hearing audio will be broadcast live at aph.gov.au/live

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FOS Annual Review reveals record financial dispute numbers

THE Financial Ombudsman Service (FOS) Australia received record dispute numbers in 2016-17, according to new data published today.

The Annual Review shows that FOS received 39,479 disputes, a 16 percent increase from last year, after a 7 percent increase the previous year.
 
The increase was driven by continued growth in general insurance disputes. The number of general insurance disputes received (13,200) increased by 2,612, accounting for about 38 percent of the overall increase.
 
FOS said the increase in general insurance disputes was due to a continuation of industry-specific issues including higher claim numbers, organisational changes and the impact of Cyclone Debbie, all of which may have affected insurers’ internal dispute resolution.
 
Resolving disputes more quickly and efficiently
 
Overall, FOS reduced the average time taken to resolve disputes by 13 percent in 2016-17 and 43 percent from the previous year without compromising the quality of outcomes. A major challenge this year has been the increase in disputes received (from 34,095 to 39,479).
 
“This means that people can have their cases resolved more quickly and get on with the rest of their lives,” Chief Ombudsman Shane Tregillis said.
 
FOS resolved disputes in an average of 54 days in 2016-17 compared with 62 days last year and 95 days in 2014-15. It also closed 44% percent of disputes within 30 days (up one percentage point from last year and double the previous year’s 22%).

The record number of disputes have put pressure on staff workloads and we saw some queues re-emerge in the second half of the year. In response to this, we have recently recruited additional ombudsmen and other staff to ensure we can handle the anticipated high volume of disputes we continue to receive.
 
Financial difficulty disputes continue to decline
 
Financial difficulty disputes, which occur when a consumer is unexpectedly unable to meet their payment obligations, fell again in 2016-17.
 
Chief Ombudsman Shane Tregillis said this was due to improvements that FSPs were continuing to make in managing hardship requests and complaints from customers in financial difficulty, consistently low interest rates (which had reduced repayment pressures for many borrowers), and improvements to the FOS process.
 
Systemic issues a key priority
 
A key focus again was on systemic issues. FOS identified and referred 192 possible systemic issues to FSPs for response and resolved 66 definite systemic issues. FSPs said more than 940,000 customers were affected by these systemic issues, leading to significant refunds and other remedies such as amendments to, or removal of, credit listings. 
 
Improving accessibility
 
In 2016-17, FOS continued working to make its service as open and accessible as possible. “Every person who comes to us has specific circumstances that we need to take into account,” Mr Tregillis said.
 
As part of its work in response to the Victorian Royal Commission, FOS encouraged applicants to identify if family violence was a factor in their dispute. We also developed partnerships with expert services to help staff understand and help people affected by family violence and financial elder abuse.
 
A key achievement was completing the FOS Reconciliation Action Plan and having it endorsed by Reconciliation Australia. The plan outlines 16 key initiatives to help make FOS more accessible to Aboriginal and Torres Strait Islander peoples.
 
What the disputes were about
 
FOS accepted 22,475 disputes in 2016-17. Of these, there were:
 

  • 10,973 credit disputes (43%)
  • 8,756 general insurance disputes (35%)
  • 1,861 deposit-taking disputes (7%)
  • 1,331 payment system disputes (5%)
  • 1,292 investments and advice disputes (5%)
  • 1,018 life insurance disputes (4%)

Total disputes accepted (22,475) are based on counting disputes that may involve multiple products or issues as single cases.
 
Of credit disputes, one-third (33%) involved credit cards, one-quarter (24%) involved home loans and one-fifth (19%) were about personal loans. Of all disputes accepted by FOS, credit cards were involved in 14 percent, home loans 10 percent and personal loans 8 percent.

Some 10,464 disputes (or 41% of all disputes FOS accepted) involved banks. This was a slightly lower proportion than in 2015-16. Disputes involving banks were mainly about FSP decisions (23%) and financial difficulty (20%).
 
Of general insurance disputes, almost one-third (31%) involved motor vehicle – comprehensive insurance and more than one-quarter (28%) involved home building insurance. The main issues were claim amount (20%), denial of claim (18%) and denial of claim – exclusion/condition (16%).
 
Of deposit-taking disputes, 63 percent involved personal transaction accounts and the main issue was unauthorised transactions (29%). Of payment system disputes, 28% involved non-cash systems and the main issue was interpretation of product terms and conditions (28%).
 
Of investments and advice disputes, 25 percent involved mixed asset funds (investing in multiple asset classes such as cash, bonds, shares and property), and the main issue was inappropriate advice (24%). In life insurance, almost half (48%) the disputes involved income protection insurance, and the main issue was denial of claim (26%).
 
External dispute resolution review
 
FOS contributed throughout the year by making submissions to the Federal Government’s review of the financial system’s external dispute resolution (EDR) and complaints framework.
 
FOS advocated that changes to current dispute arrangements should build on the proven features of the industry ombudsman model, and be designed to simplify, strengthen and increase access to timely, cost-effective and efficient EDR for individuals and small business.
 
The key elements of the industry ombudsman model remain at the heart of the Government’s plans for a single EDR scheme, which is to be called the Australian Financial Complaints Authority.
 
 
Links: FOS Annual Review

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Select Committee to hold public hearings in Victoria and Tasmania

BENDIGO will host the first of a series of public hearings this week, as the Select Committee on Regional Development and Decentralisation heads to Victoria and Tasmania.

Launceston and Burnie in Tasmania, and Wodonga, on the border of New South Wales and Victoria, will also host public hearings.

The Chair of the Committee, Dr John McVeigh MP said, “these public hearings will provide the Committee with some good opportunities to engage with local communities in regional Australia. The Committee is keen to hear from the diverse range of witnesses to better inform ourselves of the issues impacting regional communities, and what can be done to address them.

“Each regional and rural community in Australia is unique, with localised issues. The Committee has heard that what works well for these communities is local, tailored strategies. We are hoping to hear more about the local strategies being adopted by the communities of Bendigo, Launceston, Burnie, Albury and Wodonga,” said Dr McVeigh.

Dr McVeigh indicated that witnesses across the four public hearings will include business and communities leaders, universities and TAFEs, community advocacy groups, healthcare providers, and regional development specialists.

The hearing will be broadcast live at aph.gov.au/live and a transcript will be available on the Committee’s website.

 

Public hearing details: 

Bendigo

Time: 9.00am – 3.20pm (click to listen live)
Date: Monday 9 October 2017
Location: Bendigo Town Hall (Reception Room), 189-193 Hargreaves St, Bendigo Vic


Launceston

Time: 9.00am – 2.20pm (click to listen live)
Date: Tuesday 10 October 2017
Location: Hotel Grand Chancellor (Chancellor 6) 29 Cameron St, Launceston Tasmania

 
Burnie

Time: 8.30am – 12.15pm (click to listen live)
Date: Wednesday 11 October 2017
Location: University of Tasmania, Domestic Arts Building (103 Lecture Room) 8 Bass Hwy, Parklands Tasmania


Wodonga

Time: 8.30am – 4.00pm (click to listen live)
Date: Thursday 12 October 2017
Location: 158 Lawrence Street, Wodonga TAFEspace, Strategic Planning Room, Wodonga, Victoria

For the full programs of these public hearings, see the Committee’s website.

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

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ASBFEO welcomes NAB's lead on small business contract changes

THE Australian Small Business and Family Enterprise Ombudsman has welcomed the introduction of shorter, plain English loan contracts by National Australia Bank for small business borrowers.

The bank announced yesterday that more than 130,000 Australian business owners would benefit from a complete overhaul of its existing business standard loan form contract.

Ombudsman Kate Carnell said this was a positive step.

“My small business loans inquiry recommended this in December last year and called for implementation by July 2017,” Ms Carnell said.

“It followed unfair contract terms legislation coming into force last November.

“The inquiry report recommended that where a small business had met loan payments and acted lawfully, the bank must not default a loan for any reason.

“The report also said conditions must be removed where banks could unilaterally value existing security assets during the life of a loan; and not invoke financial covenants or catch-all ‘material adverse change’ clauses.

“I applaud NAB for being first off the mark and urge other banks to follow.

“It shouldn’t have taken so long, but we finally have a situation where banks will be treating small business clients as partners and share some of the risk. Currently the contractual relationship is one-sided and unfair.”

The NAB statement says: “The changes come after NAB announced financial indicator covenants will no longer be used in most loan contracts for new and existing small business customers with total business lending of less than $3 million in April 2017.”

However, Ms Carnell said it would be disappointing if changes such as these were not applied by all lenders to loans above $3 million.

“The banks’ own independent expert adviser on the ABA Code of Banking Practice review, the Financial Ombudsman Service and the Government’s response to the Ramsay review on external dispute resolution have all identified a credit facility of at least $5 million is an appropriate threshold,” she said.

“I’ll continue talking to the government, opposition, crossbench MPs and the banks about raising the threshold to $5 million.”

www.asbfeo.gov.au

 

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Supporting women in STEM and entrepreneurship

BUSINESSES, not-for-profits, education and research organisations are encouraged to apply for grants to inspire more girls and women to pursue careers in science, technology, engineering, and maths (STEM) and entrepreneurship.

Acting Minister for Industry, Innovation and Science, Senator Michaelia Cash, today announced the second round of the Australian Government’s $8 million Women in STEM and Entrepreneurship (WISE) grants program.

“It is vital that all Australians are equipped with the skills they need for the jobs of the future but in particular, we need to get more girls and women engaged with STEM in schools, universities, TAFEs and in the workforce,” Minister Cash said.

“The WISE program supports activities to get girls and women interested and involved in STEM education and careers. This includes helping them develop entrepreneurial skills and professional networks, paving the way for more Australian women to start their own businesses and become entrepreneurs.”

The first round of WISE grants, announced in December 2016, saw approximately $4 million awarded to a diverse range of projects including coding workshops for teachers and primary school girls, networking and mentoring for female entrepreneurs in rural and remote Queensland, drone flying and programming camps in Northern Australia, and a new ‘Superstars of STEM’ initiative to raise the profile of Australia’s women in science, technology and engineering.

Minister Cash said eliminating barriers for women’s participation in STEM education and careers was a key aspect of the WISE program.

“As a Government we understand the importance of ensuring our young women have female role models in science and research, entrepreneurship and corporate leadership to look to for inspiration,” Minister Cash said.

Minister Cash also announced today that the Australian Mathematics Trust would receive $75,000 over 2017­­­–­18 to 2019–20 to recruit and send a team of four Australian students to the European Girls Mathematical Olympiad in each of the next three years.

“For the first time, Australia’s best and brightest female high school mathematics students will compete at this prestigious international event,” Minister Cash said.

“This will open up new opportunities for Australian girls to compete in elite international mathematical competitions and inspire more students to strive for mathematical excellence.”

Applications for round two of the WISE program close on 15 November 2017, and the successful projects will be announced in early 2018. The Women in STEM and Entrepreneurship program is part of the ‘Inspiring all Australians in Digital Literacy and STEM’ component of the National Innovation and Science Agenda.

business.gov.au/wise

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Logility sponsors the Australasian Supply Chain Institute to promote supply chain excellence across the region

LOGILITY Inc., a provider of collaborative supply chain optimization and advanced retail planning solutions, today announced the company became a corporate sponsor of the Australasian Supply Chain Institute (ASCI).

As a corporate sponsor, Logility is better positioned to provide the vibrant Australasian supply chain community with new opportunities to enrich their supply chain knowledge and learn from the best practices of Logility’s more than 40 years helping to optimize some of the world’s leading supply chains. 

The Australasian region has experienced significant growth that has led to increasingly more complex supply chains. Visibility, efficiency and integrated planning have become crucial for companies to stay ahead of this changing market. Companies across the region have turned to Logility Voyager Solutions to transform these challenges into opportunities for profitable growth. Today’s announcement further strengthens Logility’s commitment to and helping to shape the region’s supply chain of the future.

“Logility will add value to ASCI members with their 40 years’ worth of knowledge on supply chain optimization,” said Dr. Pieter Nagel, CEO, ASCI. “We welcome Logility into our community and look forward to the solutions and programs that can help our members in a time when optimization is key to moving forward.”

“Optimizing supply chain performance is an increasingly vital component of a company’s success in today’s rapidly evolving global market,” said Allan Dow, president, Logility. “Fierce competition, rising customer expectations and volatility in both supply and demand are driving the need for supply chain professionals to employ resilient business processes and advanced planning solutions such as Logility Voyager Solutions to drive more profitable growth and boost efficiencies. Logility is excited to partner with ASCI to help elevate the role of supply chain in the region.”

Under the sponsorship, Logility will provide opportunities for members to explore new educational resources including white papers, eBooks, webinars, and more.

About ASCI

Established in Australia in 1963 as a not for profit organisation, apicsAU, now trading as Australasian Supply Chain Institute (ASCI), facilitates and enables the development and professionalisation of the Australasian Professional Supply Chain Community. ASCI provides formal education programs, site visits, research, industry presentations and peer learning to its members with a range of opportunities to enrich and grow professional supply chain performance and competence. ASCI is a Premier Channel Partner of APICS and offers APICS certification programs in Australia, as well as other international supply chain management certifications. ASCI membership is available to individuals and provides access to educational programs, a network of industry professionals, real-world learning opportunities, resources and social media networks.

About Logility

With more than 1,250 customers worldwide, Logility is a leading provider of collaborative supply chain optimization and advanced retail planning solutions that help small, medium, large, and Fortune 500 companies realize substantial bottom-line results in record time. Logility Voyager Solutions is a complete supply chain management and retail optimization solution that features a performance monitoring architecture and provides supply chain visibility; demand, inventory and replenishment planning; Sales and Operations Planning (S&OP); Integrated Business Planning (IBP); supply and inventory optimization; manufacturing planning and scheduling; retail merchandise planning and allocation; and transportation planning and management. Logility customers include Abercrombie & Fitch, Big Lots, Fender Musical Instruments, Parker Hannifin, Verizon Wireless, and VF Corporation. Logility is a wholly owned subsidiary of American Software, Inc. (NASDAQ: AMSWA), named one of the 100 Most Trustworthy Companies in America by Forbes. For more information about Logility, call 800-762-5207 USA or visit http://www.logility.com.

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August retail figures a major concern leading into Christmas

THE Australian Retailers Association (ARA) said the August trade figures released by the Australian Bureau of Statistics (ABS) represent a lower than expected move towards Spring with a 2.13 percent total growth year-on-year.

ARA Executive Director Russell Zimmerman said the August retail trade figures continued to show strong growth in the Other Retailing category which inlcudes gambling and online goods and services, however the broader retail categories have suffered significantly.

“With many historic challenges affecting the Australian industry these past few months, we have expected to see the sector suffer,” Mr Zimmerman said.

“With increased energy costs, higher tax burdens and an inflexible wage system, we need Government action to increase consumer and business confidence.”

Alongside Other Retailing, Food Retailing (2.30%) and Household Goods (2.01%) show moderate year-on-year growth.

The retail categories showing a significant hit to year-on-year sales growth include Cafes Restaurants and Takeaway Food (1.92%), Clothing Footwear & Personal Accessories (0.89%) and Department Stores (-1.35%).

“These August figures have seen Takeaway Food Services receive a -0.80% year-on-year growth, the first negative figures for this category in over 15 months,” Mr Zimmerman said.

Although Department Stores (-1.35%), Newspapers & Books (-3.87) and Hardware & Building (-0.47%) also received negative year-on-year growth figures, the drop in Takeaway Food is quite concerning for the industry.

“July month-to-month retail trade figures saw a return to growth for Department stores, to see these figures go backwards is of high concern to the sector.”

All states recorded a drop in growth year-on year, an undesirable sign for the months ahead. Victoria (3.41%) and New South Wales (2.91%) showed the strongest year-on-year growth of the States. With Tasmania (1.92%), the Northern Territory (1.71%), the Australian Capital Territory (1.69%) and South Australia (1.36%) trailing behind. Both Queensland (0.37%) and Western Australia (0.81%) again showed the least year-on-year growth across the nation.

“As we lead into Spring racing and the beginning of the Christmas season we expect to see a pickup in both Food Retailing and Clothing, Footwear and Accessories,” Mr Zimmerman said.

MONTHLY RETAIL GROWTH (July 2017– August 2017 seasonally adjusted) 

Department stores (0.67%), Other retailing (0.06%), Clothing, footwear and personal accessory retailing (-0.16%), Food retailing (-0.63%), Household goods retailing (-1.02%) and Cafes, restaurants and takeaway food services (-1.27%).

New South Wales (-0.25%), South Australia (-0.57%), Western Australia (-0.62%), Tasmania (-0.68%), Northern Territory (-0.68%), Queensland (-0.78%), Victoria (-0.79%) and Australian Capital Territory (-0.81%).

Total sales (-1.27%). 

 

YEAR-ON-YEAR RETAIL GROWTH (August 2016 – August 2017 seasonally adjusted)

Other retailing (4.92%), Food retailing (2.30%), Household goods retailing (2.01%), Cafes, restaurants and takeaway food services (1.92%), Clothing, footwear and personal accessory retailing (0.89%) and Department stores (-1.35%). 

Victoria (3.41%), New South Wales (2.91%), Tasmania (1.92%), Northern Territory (1.71%), Australian Capital Territory (1.69%), South Australia (1.36%), Western Australia (0.81%) and Queensland (0.37%).

Total sales (2.13%).

 

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $310 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 7,000 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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Senate Committee report: a slap in the face for young retail employees

THE Australian Retailers Association (ARA) strongly urges the Senate Education and Employment Committee’s recommendations in the Penalty Rates Report be rejected, as the ARA believe the Labor majority on the Committee have no understanding of the Penalty Rates Decision’s positive impact on employment in the retail industry.

ARA Executive Director, Russell Zimmerman said the Committee’s recommendations to overturn the Penalty Rates Decision would severely damage the pathways and opportunities for employees within the retail sector.

“It baffles us how the Labor Members of the Committee want to overturn the Fair Work Commission’s Penalty Rates Decision, as for more than a century the Government have entrusted this expert industrial body to fairly balance the interests of employers and employees” Mr Zimmerman said.

“It should be noted that the current Fair Work Commission was set up by past Prime Minister Julia Gillard, whilst she was Minister for Employment, to be the independent umpire in determining significant employment conditions such as penalty rates.”

“We are extremely shocked that the Labor Members on the Senate Committee did not refer to the ARA for any questions about the Penalty Rates Decision, as we have been the peak body association leading this case and its positive impact on employment within the retail industry.”

The ARA and its members have previously called on all sides of Government to implement the Productivity Commission's recommendations on Penalty Rates and wage agreements to improve efficiency for retailers and employees across the sector.

“As Enterprise Bargaining Agreements (EBA’s) in the retail industry have fallen to drastic levels, the ARA congratulate the Committee in recognising the ineffectiveness of the current EBA system and the Better-off Overall Test (BOOT),” Mr Zimmerman said.

“However, the ARA also note that the Committee has not given any recommendations on how to improve the EBA system andhow to get bargaining back on track.”

The ARA and its members want to see the Productivity Commission's recommendations enacted to create a fairer, more effective EBA system to guarantee a bright and prosperous future for retail employees.

“The current EBA approval system is too inflexible and we urge the Committee to provide a more practical bargaining system for the retail industry and its employees,” Mr Zimmerman said.

The ARA have been the only retail association that has participated in the inquiry, and continues its strong tradition of advocating for wage fairness in the retail industry.

 

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $310 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 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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