PEAK retail body the Australian Retailers Association (ARA) recommends that the Fair Work Commission’s (FWC) Minimum Wage Panel increase national minimum and award wages by no more than $8.50 or 1.3 percent in the 2014 Minimum Wage Review. 

ARA Executive Director Russell Zimmerman said the 1.3 percent increase allows for expected inflation over the year to the September quarter 2014, while clawing back the over-compensation for inflation provided in the past two minimum wage decisions. 

“The ARA’s position preserves the value of the minimum wage over the last three years, and our submission addresses the key considerations of FWC when performing its wage setting function - which is to promote the economic prosperity of the people of Australia having regard to the capacity for the unemployed to obtain employment, as well as providing a safety net for the low paid and providing minimum wages for junior employees. 

“The ARA’s submission has outlined the difficult trading environment existing for the retail sector. With most small to medium retailers being reliant on a minimum wage workforce, any move to increase wages within the sector during this time of low consumer confidence and low to negative growth will only further job losses currently underway within the sector. 

“The retail industry makes a significant contribution to the overall state of the national economy and employs more people (including more juniors) in Australia than any other private sector industry. The retail industry is more reliant on pay scales than any other industry, and also suffers a higher disproportionate effect in minimum wage increases than other industries due to deregulated trading hours and penalties across all retail awards. 

“It is no secret that the retail sector is on a low to negative growth period during this time of low consumer confidence and low business confidence in the services sector. The FWC should consider any increase on an award-by-award basis and provide an interim decision or statement prior to handing down a final decision. 

“The ARA strongly recommends the FWC hand down a minimum wage increase that is realistic and reasonable and one that considers weak economic trading conditions, current and imminent wage bill increases for industries undergoing structural adjustment and underemployment levels. 

“What also must be taken into account is that the retail sector could hold potential wages growth if costs through wages are kept under control,” Mr Zimmerman said. 

View the ARA Minimum Wage Submission 2014
 
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.

PEAK retail industry body the Australian Retailers Association (ARA) has welcomed the Federal Government’s announcement today of the final terms of reference and the panel for its Competition Review and congratulates Small Business Minister Bruce Billson for driving this review.
 
ARA Executive Director Russell Zimmerman said the ARA is positive about the scope of the inquiry and will be active in the process to see serious competitive issues addressed within the retail sector which have hurt consumers and reduced competition in some areas.

“The ARA sees the short-termism of dominant sector players are working to the long term disadvantage of retailers, retail jobs and consumers.
 
“Retailers will be happy with the balance in the panel and the need for the panel to look at markets in the retail sector which lack real competition.

“The ARA has worked with many of the panel appointees in the past, whether in workplace relations roles such as with Ian Harper on the Australian Payments Clearing Association (APCA) Merchant Forum, or in the case of Peter Anderson, as the head of Australia’s largest small to medium business representative body ACCI of which the ARA is a member.
 
“The ARA looks forward to working with appointees including Professor Ian Harper (Chair), Ms Su McCluskey, Mr Michael O’Bryan SC and Mr Peter Anderson.
 
“The Harper Review will be the first comprehensive review of competition laws and policy in more than 20 years and we look forward to this initiative getting underway,” 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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VICTORIA'S lead tourism body has called for the Melbourne Convention and Exhibition Centre (MCEC) to be funded to stem Melbourne's loss of international business events.

Victoria Tourism Industry Council (VTIC) Chief Executive, Dianne Smith said:

"VTIC calls on the State Government to fund the expansion of the Melbourne Convention and Exhibition Centre (MCEC). 

"MCEC turns away 17 percent of potential clients due to lack of capacity. 

"VTIC has been a consistent advocate of the need for this project and the VTIC 2014-15 state budget submission encourages the government to prioritise funding for this expansion.

"Business events are vital to Victoria, as they contribute $1.2 billion to the economy and are responsible for 22,000 jobs.

"Work recently commenced on Sydney’s convention and exhibition centre renovation, so if the MCEC expansion does not go ahead Victoria will lose a significant amount of business to NSW. 

"Losing business events to Sydney would mean Victoria loses the very high return on investment benefits that business events provide to the events and associated sectors.

"Victoria's priority sectors, such as health and medical research, greatly benefit from the array of worldwide industry leaders that congregate in Melbourne for events, such as for the recent Diabetes World Conference or the upcoming AIDS conference.

"There is also significant flow-on benefit for local businesses such as hotels and restaurants."

* The Victoria Tourism Industry Council (VTIC) is the peak body for Victoria’s s tourism and events industry, providing one united industry voice. Tourism and events are growth industries for Victoria and contribute $19.1 billion to the state economy each year and employ more than 201,000 people.

www.vtic.com.au

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THE Abbott Government’s move today to repeal the extension of the Migration Act to vessels servicing Australia’s offshore oil and gas projects shows it is serious about reducing red tape and attracting further resource investment to Australia, says resource industry employer group AMMA.

The Migration Amendment (Offshore Resources Activity) Repeal Bill 2014 seeks to repeal last ditch Gillard Government legislation designed to deliberately increase the regulatory burden on employers using essential overseas labour to temporarily service Australia’s offshore oil and gas projects.

“The current legislation is a relic of the 2013 election year, delivered by Labor and the Greens at the behest of trade unions whipping up false panic on foreign workers,” says AMMA executive director Scott Barklamb.

“It is set to force foreign nationals working on foreign-flagged ships in international waters to obtain an Australian visa.  This is an extraordinary proposition, only possible through an equally extraordinary expansion of Australia's migration zone. 

“Extending Australia’s migration zone to regulate offshore activities in this way was never in our national interest. It is completely at odds with how offshore resource projects are built and regulated anywhere in the world.”

Mr Barklamb says the current legislation, set to take effect from 30 June 2014, puts Australia at a competitive disadvantage as a place to do business in a critically important part of the offshore oil and gas sector.

“Labor’s legislation introduced a radical change that massively expanded Australia’s legal territory and targets highly specialised international vessels assisting with the laying of pipes and assembly of critical infrastructure in international waters,” he says.

“It was an attempt by a dying government to deliberately impose punitive red tape for red tape’s sake and pander to a union desire to control workplaces that were outside Australia’s legal reach.

“Imposing unnecessary additional costs on this critical service sector will only delay the construction of mega oil and gas projects and damage Australia’s reputation at a time when we need to demonstrate to international investors that we are a rewarding, productive and flexible place to do business.

“AMMA urges the parliament to pass this important remedial legislation as soon as possible and correct the short-sighted regulatory excess bequeathed by the previous government.

“Now is not the time to play petty party politics. It is time to make smart decisions that will support further investment and employment in Australia.”

AMMA’s 2013 submission to the federal government detailed the detrimental effect of the provisions on Australia’s resource industry, economy and employment.

www.amma.org.au

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NATIONAL resource industry employer group AMMA acknowledges Paul Howes’ contribution to the union movement and industrial relations landscape, following today’s announcement that he will step down as national secretary of the Australian Workers’ Union (AWU) in July.

“AMMA and our members wish Paul Howes all the best in the next phase of his career,” AMMA chief executive Steve Knott says.

“In serving the union movement as national secretary of the AWU and vice president of the ACTU, Mr Howes has achieved a great deal in what is still a developing career. I have no doubt he will make a strong impact in his next position.”

Mr Knott acknowledged the important role of the AWU in the hard rock mining, metal smelting and oil and gas industries; all sectors in which AMMA members operate.

“During Mr Howes’ AWU leadership, AMMA has enjoyed both a constructive and sometimes robust relationship with the union and its officials. However, this has generally occurred in the prism of our respective members’ best interests,” he says.

“Mr Howes and I both take the representation of our members very seriously and as such have had some very public disagreements. Nonetheless, we have a strong history of constructive industrial relations away from the public eye and AMMA looks forward to continuing this with the AWU leadership.

“AMMA has also worked positively with Mr Howes behind the scenes to progress new resource project investment, another area in which we appreciate his support and insight.”

Mr Knott also urged the union movement to take note of Mr Howes’ recent recognition of Australia’s uncompetitive workplace relations environment.

“We urge Mr Howes’ successor and fellow leaders of the union movement to heed his warning that our tumultuous industrial relations system is damaging the economy. In particular, attention should be given to his criticism of unstainable wage inflation in the offshore sector, which is not conducive to a globally exposed industry,” he says.

“The union movement should work with resource employers and the Abbott Government to ensure our industry remains an attractive place to invest and employ people.

“AMMA wishes Mr Howes well in his next career move and looks forward to continuing a productive relationship with the AWU.”

www.amma.org.au

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PEAK retail industry body the Australian Retailers Association (ARA) urges the Federal Government to give retailers the opportunity to grow the Australian economy and create employment opportunities by quickly removing unnecessary red tape costs.

ARA Executive Director Russell Zimmerman will present at the Regulatory Reform conference in Canberra tomorrow morning. Mr Zimmerman will outline key cost blowouts which are killing jobs and growth in the Australian retail sector, as well as highlight potential employment growth opportunities if these issues are addressed in a timely manner. 

“The key message we will be delivering is that retail has a real opportunity for jobs and economic growth over the next five years, however, regulatory costs have stifled that growth in the last five years. The only way we will achieve our potential is to remove costs and restrictions. 

Key points that will be raised include: 

• Over the last five years retail has grown by around 2% p.a. while jobs have only grown by 0.2% p.a.
• Average full time wage is now over $55,000 with regulation killing flexibility.
• Ernst & Young report confirms 93,000 jobs have been lost due to non-collection of overseas GST and the sector could grow by 87,000 jobs in the next four years with this red tape non-compliance measure being removed.
• ARA/ACCI report shows 70% of businesses had their red tape burden increased in the last 12 months.
• More than 55% of all businesses indicated they had no capacity to pass the cost of regulation on to consumers.
• The carbon tax has significantly increased costs for retailers (e.g. for bakery retailers by $20,000 p.a.)
• Almost one quarter of businesses (23%) spent between $10,001 to $50,000 on compliance management.
• Safety and Workers Compensation is the most complex area of compliance (55.8 %). This was followed by Employee Wages, Conditions and Superannuation (51.4%) and Tax Compliance Obligations (47.5%).

“The retail sector shows real promise as the jobs driver for the economy over the next five years, but in order to achieve this, we must reduce costs and burden on retailers. 

“I see retailers every day of the week, from single store businesses to the boardrooms of some of Australia’s largest companies, and I can confirm that all of them have done a fantastic job in surviving - they have all had to cut costs and cut jobs. They are running on the smell of an oily rag. 

“The ARA congratulates the government on their first steps to reducing burden but the bulk of the work is still in front of them,” 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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PEAK retail industry body the Australian Retailers Association (ARA) strongly condemned the Fair Work Commission (FWC) inexplicable decision last Friday to abolish junior wage rates for 20 year old employees.

ARA Executive Director Russell Zimmerman said retailers are outraged at the decision which was based on no evidence and will kill jobs for youth as well as hinder skills developments.

“This junior wage increase will severely hit retailers financially, as well as change the face of employment for 20 year olds.

“Young people are done a disservice if our system of wage regulation locks them out of employment opportunities – and it is now clear that young people will be forced to compete against older and more experienced job-seekers.

“Unfortunately, youth unemployment is at its highest level in 11 years and with the unions case to remove junior wage rates now successful, young Australians are going to find employment near impossible.

“What retailer is going to employ a young Australian without any experience in the industry, when they can employ someone a few years older with more experience for exactly the same wage? This decision will prove detrimental to both employers and employees.

“Friday’s decision was also inconsistent with previous FWC decisions, making it obvious this was a narrow review. Previous FWC decisions have held that major changes like this require expert evidence.

“The retail sector is struggling, and although the industry is just starting to show signs of improvement in terms of retail employment, this is certainly a major setback.

“The ARA is looking into all possible appeal options and will be raising this matter directly with Minister Abetz, as well as instructing its legal team to look at all options to address this poor decision.

"The ARA will also fight against the already promised claims from the union movement to move on under 20 year old pay rates,” Mr Zimmerman said.

s $258 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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