PEAK retail industry body the Australian Retailers Association (ARA) said the seasonally adjusted fall (-0.5 percent) in monthly retail trade figures (month-on-month) reported by the ABS followed a 0.2 percent rise in April 2014.

Year on year retail growth fell 4.6% in May 2014, seasonally adjusted, compared to May 2013.

ARA Executive Director Russell Zimmerman said May trade results -0.5% were disappointing for retailers. Retailers have been enduring struggles with the unexpected change in weather and while sudden winter weather showed glimpse of hope for winter stock, this was not sufficient as resulted by the buying behaviours of consumers.

“Retailers were hoping that Mothers Day in May would lift buying behaviours and although this did lift some sales, it did not compete with the unseasonably warm weather which caused consumers to hold off purchasing winter products.

“Department stores experienced a tough month during May (fall of -2.6%) and clothing, footwear and personal accessory retailing (fall of -2.3%). The unseasonably warm weather in May caused consumers to hold off on purchasing their winter goods. Retailers particularly in fashion experienced major struggles due to this.

“The effects of the Federal Budget announcement has obviously slowed down retail trade and lowered consumer confidence. The Federal Government must act quickly to ensure that retail trade does not suffer as we gear up toward the Spring Summer racing season and as retailers start looking towards stocking up for Christmas.

“According to the Australian Retail Index (delivered by BDO and Retail Express), retail sales for the month of June are very patchy and this would indicate that consumers have not returned to their former spending patterns from before the budget. This does not auger well for the next few months.

“With the added on costs that retailers have taken a hit on in July, (Minimum  wage increase the last transition of the Modern award for penalty rates, and 20 year olds being paid as adults after six months employment) retailers will need to review their costs such as labour and look to reducing costs wherever possible.

“Turnover fell in Victoria (-1.1%), followed by New South Wales (-0.5%), Western Australia (-0.3%), Queensland (-0.1%), the Australian Capital Territory (-0.3%) and Tasmania (-0.2%). These falls were partially offset by rises in South Australia (0.2%) and the Northern Territory (0.4%).

“After this week’s interest rates remaining stagnant, it is clear that the Reserve Bank of Australia (RBA)  must  assist and stimulate the economy by reducing interest rates at its meeting in August as slow retail trade being endured by retailers is doing little to assist retailers making a profit and the SME sector will feel this the most.

MONTHLY RETAIL GROWTH (April 2014 – May 2014 seasonally adjusted)

Cafes, restaurants and takeaway food services (0.1%), Food retailing (0.1%), Other retailing (-0.4%), Household goods retailing (-0.9%), Clothing, footwear and personal accessory retailing (-2.3%) and Department stores (-2.6%).  Total sales (-0.5%).

New South Wales (-0.5%), Northern Territory (0.4%), South Australia (0.2%), Queensland (-0.1%), Tasmania (-0.2), Western Australia (-0.3%), Australian Capital Territory (-0.3%) and Victoria (-1.1%), and Total sales (-0.5%).

YEAR-ON-YEAR RETAIL GROWTH (May 2013 – May 2014 seasonally adjusted)

Cafes, restaurants and takeaway food services (11.6%), , Food retailing (5.2%), Household goods retailing (3.8%), Clothing, footwear and personal accessory retailing (2.7%), Other retailing (1.5%) and Department stores (-1.9%). Total sales (4.6%).

Tasmania (8.7%), New South Wales (7.3%), Victoria (5.4%), Queensland (3.4%), South Australia (2.5%), Western Australia (-0.7%), Australian Capital Territory (-0.8%) and Northern Territory (7.4%). Total sales (4.6%).

Since 1903, the Australian Retailers Association (ARA) has been the peak industry body representing Australia’s $265 billion retail sector, which employs over 1.2 million people. The ARA ensures retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia.

Visit www.retail.org.au or call 1300 368 041.

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IN recent months the Maritime Union of Australia (MUA) has made completely untrue and repeated assertions that AMMA is “misrepresenting” the wages earned by maritime employees in the offshore oil and gas maritime industry.

The latest example of this is another untruthful assertion in today’s West Australian newspaper.
It is time for the MUA to cease running its inaccurate and tired campaign deliberately confusing rates of pay between their maritime members and higher paid offshore construction workers, in an attempt to vilify the real position of AMMA and the companies that employ their members.

For the record, AMMA has never stated maritime workers are responsible for cost overruns on any resource sector project. We have never claimed the maritime workers represented by the MUA are earning wages in excess of $350,000 per annum.

Any public statements on such extraordinarily high wages for offshore cooks, kitchen hands or barge welders have always been referencing offshore construction rates, paid to workers who are eligible and usually covered by other non-maritime trade unions.

Examples include AMMA’s media statement on 29 April 2014, and a prominent opinion editorial in The Australian newspaper on May 16, 2013. We have also referenced offshore construction salaries in this graph, using data derived from registered with the Fair Work Commission and publicly available.

In these statements, it is very clear that we are talking about offshore construction rates, not the rates paid to MUA eligible maritime employees.

Moreover, on several occasions AMMA has publicly clarified the remuneration being paid to maritime workers, whom are firstly employees of our offshore support members and secondly members of the MUA, are in the vicinity of $170-$240,000.

Public statements where we cite these maritime wages include on 23 May 2014; 28 February 2014; and in data provided for a Deloitte Access Economics report, published last year.

Attached here for the public record are full-year wage calculations for lower paid (general support vessels) and higher paid (construction support vessels) maritime employees in the offshore resource sector. The data shows the Maritime Schedule 1 occupation pays up to $183,000 per year, while the Maritime Schedule 8 occupation pays more than $247,000 per year.

We can only assume the MUA is continuing to misinform the public and its members about AMMA’s position to deflect from the union’s reckless industrial campaigns that damage the reputation of an industry that directly employs 2,500 maritime workers and creates 10,000 jobs in flow-on effects.

It is time the MUA’s officials be responsible in industry negotiations and work towards sustainable and fair wage increases for their members in the future.

Such an approach would be in the greater interests of securing more investment into future oil and gas projects and providing further opportunities for maritime workers and their families.

www.amma.org.au

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The Queensland Resources Council (QRC) welcomed the June release of the State Government’s Ports Strategy, which shows an environmentally responsible and sustainable approach to future development, and in particular alongside the iconic Great Barrier Reef.

The strategy is the Queensland Government's blueprint for managing and improving the efficiency and environmental management of the state's port network over the next decade. 

QRC Chief Executive Michael Roche said the strategy’s focus on driving economic growth through five long-established Priority Port Development Areas (PPDAs) recognised the export sector’s proud record of working responsibly alongside the Great Barrier Reef for many decades.

"The Queensland Ports Strategy is supported by the resources industry and restricts new port development adjacent to the reef, and containing development to the long-running existing ports of Abbot Point; Gladstone; Hay Point and Mackay; and Townsville," Mr Roche said.

"The incremental expansion of these ports has been fundamental to Queensland’s economic and social progress over more than a century.

"Their continuing operation under the scrutiny of state, federal and international environmental agencies is fundamental to Queensland’s global trade in coal, minerals, gas, sugar and grain."

Exports through ports adjacent to the Great Barrier Reef were worth $40 billion in 2012-13.

The latest benchmark for responsible port development quashes the false claims put forward by the WWF in its latest reef scare campaign.

"Once again the anti-resources activists have been caught out in their latest scaremongering campaign that features old re-runs of Bob Irwin’s Fight for the Reef TV advertisements," Mr Roche said.

"All of the false claims put forward in the ad – which we have seen before – are wrong, including the number of coal ships that will export from the ports and claims of fast-tracking mega industrial ports.

"The WWF ads have Mr Irwin claiming that 7,000 coal ships will be 'crossing the reef'.

"No coal ships cross the reef - they in fact travel through designated naturally occurring shipping channels.

"The official forecast from the Australian Maritime Safety Authority is that by 2020 some 2,450 coal ships will be using the coal ports in the reef zone.

"The Ports Strategy also sends a clear message that UNESCO should be in no doubt over the commitment of the Queensland Government and industry to deliver the twin goals of economic growth and environmental protection," Mr Roche said.

"In this day and age, we don’t have to sacrifice one for the other, as many decades of productive co-existence have demonstrated."

www.qrc.org.au

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PEAK retail industry body the Australian Retailers Association (ARA) said the Reserve Bank of Australia’s (RBA) decision to keep the cash rate on hold at 2.5 percent for the ninth consecutive month, did little to ease retail struggles after last month’s sluggish retail trade figures and low consumer confidence.

ARA Executive Director Russell Zimmerman said today’s decision while expected, left retailers disappointed yet again.

“Retailers have been doing it tough after concerns raised following the Federal Budget announcement and after experiencing unexpected warm weather affecting retail trade, retailers need to see some form of light at the end of the tunnel.

“What we need is steady Government support to give retailers a positive boost into the new financial year and as such, the ARA urges the RBA to cut interest rates in August given the struggles retailers have been enduring.

“From the concerns raised following the Federal Budget to low consumer confidence due to unexpected warm weather confirmed through last month’s retail trade figures, retailers are feeling the pressure to compete with the sudden winter weather.

“Retailers are running out of time with winter stock and sudden winter weather will leave retailers anxious. It will be interesting to see how retail trade figures released this week will confirm the hiccups in consumer confidence.

“Interest rates must be lowered to give retailers much deserved support and consumer confidence, especially the SME sector,” Mr Zimmerman said.

Since 1903, the Australian Retailers Association (ARA) has been the peak industry body representing Australia’s $265 billion retail sector, which employs over 1.2 million people. The ARA ensures retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia.

Visit www.retail.org.au or call 1300 368 041.

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RETAIL figures recorded its biggest monthly fall in more than a year when retail sales for May were released today, according to analysis from the Australian National Retailers’ Association (ANRA).

The Australian Bureau of Statistics (ABS) released retail figures today showing a decrease of 0.5 percent in May compared to April. April’s figure was also revised down to record the first fall in eleven months (down 0.1%). Throughout the year to May retail turnover rose 4.6 percent.

ANRA CEO Margy Osmond said the Abbott government’s first Budget has halted much of the momentum the sector generated over the past year.

“Today’s figures are exactly what retailers were hoping to avoid. The discretionary spend categories have been hit the hardest with consumers pulling back on spending in the lead up to and following the Federal Budget.

“The biggest fall was seen in department stores (down 2.6 per cent), erasing any gains recorded in April. Clothing, footwear and personal accessories, other retailing and household goods also recorded falls in May.

“This is the third month in a row the clothing, footwear and personal accessories, household goods and other retailing categories have recorded decreases.

“Food continued its resilience, recording the only rises amongst the categories in May up 0.1 per cent and cafes, restaurants and takeaway food services also up 0.1 percent.

“Food has now outperformed non-food for seven of the last twelve months. Year-on-year food is up 6.8 percent while non-food is up only 2.1 per cent and on shaky ground.

“Looking to the states and territories, Victoria recorded the biggest fall – down 1.1%. Contributing to the state’s drop in May was recreational goods (down 10%), speciality foods (down 6%) and department stores (down 5%).

“It’s also the fifth consecutive month of declining sales for Western Australia and it isn’t a rosy picture for the ACT either, where retail sales have declined for six out of the last seven months.

“Year-on-year, Tasmania continues to be the strongest performer amongst the states and territories – up 8.8 per cent. The ACT was the worst performer – down 0.9 per cent.

“Consumers are showing all the signs in May of being spooked by the Federal Budget and its cuts to family benefits. We normally see some softening of confidence after a Budget with a pick in the June figures.  With many aspects of the Budget facing a battle to get through the Senate and ongoing uncertainty, we wouldn’t expect retail sales to bounce back for a few months yet,” said Ms Osmond.

www.anra.com.au

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 THE resource industry strongly endorses technical changes to the Fair Work system which will allow a third party which is impacted by damaging strike action to apply to the Fair Work Commission (FWC) to suspend or terminate that action.

Steve Knott, chief executive of resource industry employer group AMMA, says the Commonwealth’s changes this week will provide much-needed industrial powers for the Western Australian Government as well as employers facing crippling strikes.

“The new regulation will allow a minister of a state which has not referred its industrial relations powers to the Commonwealth, to apply to the Fair Work Commission for the suspension or termination of protected industrial action,” Mr Knott says.

“Such a power exists presently for the ministers of all the states except for Western Australia, where industrial action often threatens both state operations and international trade activities of great national significance.

“The change fixes this anomaly which Labor did not address, despite calls from the WA Government to allow it the same legal capacities as its counterparts in other jurisdictions.”

Importantly, the new regulation will also allow innocent third parties directly impacted by damaging strike action to pursue relief through the FWC.

“This move recognises that strike action sometimes has far broader impacts than just the direct parties, including hurting employers and employees on both sides of the supply chain and disrupting economic activities more widely,” Mr Knott says.

“A current example is the Teekay Shipping dispute, where a small group of well-paid tug boat employees are threatening to halt the $100 million per day export operations of Port Hedland.

“At a state level, such a stoppage would cost Western Australian taxpayers around $7 million per day in revenue foregone in lost iron ore royalties. Over three days that is the entire state budget for homeless support or the cost of building a new primary school.

“Ultimately, the Fair Work Commission will decide how it deals with these matters on a case-by-case basis, but clearly any workplace system that allows a third party to be so heavily impacted by strike action should be amended so they can state their case to the tribunal.”

While a small change to the Fair Work Act 2009, the move also provides much-needed scope to apply to stop strike action where it is threatened, and before it can wreak economic havoc.

“It is well recognised that threatening to take industrial action can inflict as much commercial disruption as the action itself. This has been exacerbated under the Fair Work Act, where union tactics has often seen notice given to strike and then withdrawn at the last minute,” Mr Knott says.

“There is also a greater cost to consider to our international reputation as a reliable supplier of resource commodities. This reputation has been hard won but can be easily lost.

“Australia does not have a monopoly on such exports and provisions such as those introduced by the government this week will assist in minimising the impact of unnecessary strike action on our national reputation and global competitiveness.”

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VECCI Chief Executive Mark Stone said the chamber has welcomed the announcement by the Victorian Minister for Planning, Matthew Guy, that approval has been given for the eastern section of the East West Link project. 

"VECCI has long advocated for this vital piece of infrastructure to be built in its entirety, including the port connection, and this announcement is another step towards this becoming a reality," Mr Stone said.

"As reinforced in our Taking Care of Business state election agenda, VECCI ranks East West Link as the number one infrastructure project for Victoria. 

"By reducing congestion it will increase the capacity of Melbourne’s transport network, unlock productivity gains for business and improve social amenity, particularly in Melbourne’s expanding residential areas."

vecci.org.au

The Victorian Employers' Chamber of Commerce and Industry (VECCI) is the peak body for employers in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

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VECCI Chief Executive Mark Stone said the State Government’s announced 4,000 additional weekly train, tram and bus services is welcomed by VECCI, as a strong economy is depend on a reliable, user friendly and efficient public transport system. 

"The boost to services will move more commuters and improve service frequency across these important, interconnected transport modes," Mr Stone said.

"Improved reliability will benefit commuters, including employees transiting to and from work, shoppers and tourists.

"Employers whose staff are dependant on public transport can expect less risk of employees being delayed due to service cancellations or bottlenecks.

"The increase in services will be of particular benefit to existing high population suburbs that are reliant on public transport, including Dandenong, Pakenham, Cranbourne and Frankston.  

- It is also positive to see improvements to regional services, with V/Line’s Ballarat, Bendigo and Traralgon lines to operate on new timetables that will help increase service frequency and reliability. 

"Improvements to our public transport system make Victoria an even greater place to live, invest and work and we welcome this announcement."

The Victorian Employers' Chamber of Commerce and Industry (VECCI) is the peak body for employers in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

www.vecci.org.au

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