The Christmas Issue - December Edition 8 2014 - National Support Office 1800 888 479 www.mga.asn.au - MGA Independent Retailers
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Print post no. 100011226
www.mga.asn.au
December
Edition 8
2014
The Christmas
Issue
National Support Office 1800 888 479 www.mga.asn.au
2
MGA Corporate Partners
Diamond
British American Tobacco
Australia
Platinum
Gold
Silver
Bronze
Associate
Warehouse
and Brand
Partners tasmanian
independent
retailers
December 2014 - Edition 8
3
Calendar 2014
Our Mission December
The mission of Master Grocers Australia/ Wednesday 10 RSA Wangaratta Wangaratta RSL
Liquor Retailers Australia is to deliver the Club, VIC
best possible industry specific business
Tuesday 16 RSA Shepparton The Aussie
support services to independent grocery,
Hotel, VIC
liquor and associate store members.
Wednesday 17 RSA Malvern MGA Head
Office, VIC
Wednesday 17 RSA Echuca The Harvest
MGA National Hotel, VIC
Support Office Thursday 25 Christmas Day National
Suite 5, 1 Milton Parade, Friday 26 Boxing Day National
Malvern, Victoria, 3144
P: 03 9824 4111 • F: 03 9824 4022
E: admin@mga.asn.au
W: www.mga.asn.au
MGA is now on
Freecall: 1800 888 479
Retailer Directors
Rodney Allen (President) – Victoria
Facebook and Twitter!
Andrew Bray – New South Wales
Michael Daly – Victoria
Gino Divitini – Western Australia
Grant Hinchcliffe – Tasmania
Like us
Steve Miller – Victoria
Chris dos Santos – South Australia www.facebook.com
Debbie Smith – Queensland
/MasterGrocersAustralia
Chief Executive Officer
Jos de Bruin
03 9824 4111
Corporate Partnership &
Media Sales
Steve Sellars
0407 399 240
steve.sellars@mga.asn.au
03 9824 4111 Follow us
Editorial and Production @MasterGrocers
production@independentretailer.net.au
www.mga.asn.au
4
Contents
05 CEO Welcome
Training
06 Coles v ACCC: finding the balance between fair trading
and competition 24 National Online Training Courses
07 Australian Small Business and Family Enterprise
Ombudsman
26 Introduction of the Unique Student Identifier (USI)
08 Small business the casualty of misguided 'competition'
policy
26 FWC Bullying jurisdiction results
10 MGA/LRA Industry Business Breakfast and AGM 26 Traffic Management – Loading and Unloading
12 Farewell Russell Markham CEO Foodland 27 Training Snippets
12 Foodland announces appointment of new CEO 27 What should you have in your First Aid Kit?
12 New Franchising Code to apply from 1 January 2015 28 Involve employees in hazard identification
Store Promotion
13 Foodland In Focus 2014
16 The Spudshed in WA 29 This Christmas focus on excellent Customer Service
and Engagement
Legal and HR Services 30 Great store promotion on Facebook
18 Enjoying the staff Christmas celebrations
19 Christmas and New Year Trading 2014/2015
19 Workplace stress – a management issue
19 Using a “probationary period” for new employees
21 Managing work performance
22 Security for your employees
December 2014 - Edition 8
CEO Welcome 5
CEO Welcome
The release of the Terms of proposed introduction of an the development of a
Reference for the review and “effects test” by the Harper mandatory Supermarket and
an independent Panel of four Panel, is certainly a reform we Liquor Retail Industry Code of
highly experienced, skilled and have asked for. Conduct. The “enforceable”
capable Australians, led by Code will be adaptable and
Professor Ian Harper, to form As members will no doubt have and will contain various market
the Harper Competition Policy seen, Coles and Woolworths behavioural expectations.
Review Panel, took place in executives have recently If any part of the code is
March 2014. been very active in lobbying contravened, as judged by the
against our law to try to ACCC, then penalties will apply.
The objective of the review is make politicians disregard
to reset competition policies the recommendation by the All response submissions were
and laws (assess their fitness Harper Panel to introduce lodged with the Competition
for purpose), so that they are an “effects test” into section Policy Review secretariat on
relevant and workable as an 46 of the Competition and 17 November.
First and foremost on behalf economic instrument, to create Consumer Act (CCA). Their
of MGA’s Board of Directors, robust competition, provide agitation strongly suggests The Harper Competition Policy
the LRA Committee and MGA/ incentive to take commercial that they fear their market Review Panel has now ceased
LRA’s dedicated staff, we wish risks, stimulate innovation, power and dominance will be all consultation and is now
all members and industry encourage investment and compromised – they will be working on developing and
stakeholders the very best facilitate small and large prevented from behaving in delivering to the government,
of trading for the lead up to business prosperity, now and anti-competitive ways. the final Harper Competition
Christmas. This is the time to 20 years into the future. Policy Review Panel's report
entice customers to spend Contained within the Harper which is expected to be
money, for their Christmas The outcome, is to develop a report are also state based released in late March 2015.
celebrations, in your store. strong and vibrant Australian recommendations that MGA/
economy, engaging small and LRA does not agree with, You can view MGA/LRA’s
Members around the country large business, based upon a such as deregulation of response document on the
certainly report better sales fair competitive playing field. trading hours and relaxation website www.mga.asn.au.
results, since we, as an of planning and zoning laws.
industry, were collectively As far as MGA/LRA was I would like to take this
Deregulation serves only to opportunity to thank all
able to persuade the ceasing concerned, it was all about assist the duopoly to further
of unfair and anti-competitive giving the ACCC the powers it our members and industry
increase their market share stakeholders from around
petrol shopper dockets, back requires to properly adjudicate and power at the cost of
in January 2014. The repeal of and reign in anti-competitive Australia, for your continuous
small business. If sustainable support and encouragement
the carbon tax by the Coalition behaviours and a misuse of competition for the long term
earlier this year, has also market power by Coles of MGA/LRA; to represent your
benefit of the consumer is the family’s and our industry’s best
provided much needed margin and Woolworths. aim, then the market power of
relief, as a consequence of the interests at a state and federal
Coles and Woolworths must level. We are your “employer
large energy and refrigerant MGA/LRA made an extensive
be reined in to allow others to industry association” and we
gas cost savings, that are now submission to the Harper
have a fair go. are here to be of service to
flowing through into stores. Competition Policy Review
Panel, as did many of our Professor Ian Harper, on your needs.
This calendar year MGA/LRA members and industry behalf of the Panel, has asked
has been heavily focused on stakeholders. Best wishes for a brilliant
for feedback concerning Christmas trading period and a
driving toward Competition their report. MGA/LRA has
Policy and Law reform. On 22 September, the Harper great start to 2015!
worked diligently to develop
Panel released its 300 page
The Minister for Small a comprehensive response Until the next edition in
Draft report to the public.
Business and Competition submission, to the Harper February 2015 – Good Trading,
Matters, Hon Bruce Billson There is no doubt the Harper Competition Policy Review
Panel listened to all our Panel’s report. Jos de Bruin
MP, stood by his pre-election
members’ grievances and CEO, Master Grocers
commitment to initiate a MGA/LRA has made further
opportunities to improve Australia/Liquor Retailers
“root and branch” review of recommendations including
the Australian economy. The Australia
Competition Policy and Laws.
www.mga.asn.au
6 Industry News
Coles v ACCC: finding the Competition is seen as being by its nature a brutal process, but
we are not prepared to accept brutality and destruction in other
balance between fair trading
spheres of social interaction. Nor should we in the context of
market dynamics.
and competition Fairness and competition
Small Business Minister Bruce Billson MP proposes to extend
In the space of just six months, the Australian Competition and unfair contract protections to small business (explicitly
Consumer Commission has launched two major cases against acknowledging the need to recognise an “ethical norm of
supermarket giant Coles for alleged unconscionable conduct fairness” in business dealings). This sits along with the proposed
against its suppliers. code of conduct governing contractual relations between
supermarkets and suppliers and includes a proposed requirement
The cases involve allegations of various forms of unfair treatment of “good faith”.
of suppliers, including harsh and oppressive tactics directed at
extracting supplier rebates for claimed supply chain savings, The ACCC’s recent enforcement actions reflect its annual
pursuit of payments to cover “profit gaps”, payments to cover statement of enforcement priorities and demonstrates
“waste” beyond the supplier’s control and penalties for short or commitment to exploring the bounds of the prohibition on
late deliveries. “unconscionability” as it applies to business-to-businesss
transactions in the legislation. In its media release accompanying
These actions are to be applauded. That is not intended as the latest Coles action, ACCC Chairman, Rod Sims, said:
a comment on their likely success. Coles has said that it will
vigorously defend the allegations and it goes without saying “The ACCC has commenced these proceedings because it
that the ultimate outcomes are highly uncertain. It should also considers the alleged conduct was contrary to the prevailing
be acknowledged that since the conduct alleged in these cases business and social values which underpin business standards
took place, Coles has been party to drafting of a code of conduct that apply to dealings with suppliers.”
relating to retailer-supplier relations, and has developed its own
supplier charter. But clearly there is still much work to be done, including tackling
the big questions - such as what is “fairness”? In interpreting
The ACCC’s cases do not involve allegations that Coles acted the unconscionability laws, the courts speak of “conduct against
anti-competitively or, more specifically, that the conduct involved conscience”; conduct assessed against “moral and normative
a misuse of market power. This is significant. Much of the debate standards, broadly cast”. But how are those standards defined?
surrounding the retail grocery sector in recent years has been They need to be given more content, no matter how daunting
focused on its competitiveness. that task may seem.
Competition at any cost? The ACCC cases against Coles will not address all of the concerns
that surround supermarkets in this country. But in bringing this
Yet the “experts” keep telling us that the market is workably litigation the ACCC is making a substantial contribution
competitive and that consumers are benefiting – pointing to to an informed debate about what value should imbue
staples such as milk and bread prices. The ACCC reached this business dealings.
conclusion in its 2008 inquiry into the sector and the recently
released Harper Review appears to share this view. Whose responsibility?
We are concerned about the threat from competition to other Should, for instance, government be responsible for fostering
interests that we value, like income equality, environmental and protecting fairness in business dealings, or should we expect
sustainability and opportunities for domestic employment. Less our business leaders to also take some responsibility? This
tangibly, but as importantly, there is a sense that unbridled expectation would recognise businesses not just as economic but
competition threatens our traditional attachment to the land, the as social and political actors in our society and place expectations
iconic image of the ‘Aussie battler" and our cultural ethos of a on them accordingly.
“fair go”.
These are questions actively being explored by our political
This general tension is played out vividly in the context of leaders and those who are in the position to influence directly
supermarkets. Consumer patronage of chains at the expense of the nature of the policies, law and enforcement action that
smaller retail outlets has risen over the last decade, due to lower impact on our lives. We should support them in this endeavour
prices on a wider range of products, shopping convenience and - by continuing to engage in the discourse and ensure our
flexible hours. But consumers have a “love/hate” relationship voices are heard in a debate, the outcomes of which will have
with Coles and Woolworths. They feel resentful and distrustful of fundamental and long term implications for how we feel about
the very shops that they patronise, often because they see the being Australian.
chains as undermining the character and amenity of
Source: Caron Beaton-Wells, The Conversation, 21 October,
their communities. theconversation.com
December 2014 - Edition 8
Industry News 7
Australian Small Business and
Family Enterprise Ombudsman
Mark Brennan is the current Government services and
Australian Small Business programmes, including general
Commissioner and commenced business advice.
on 2 January 2013. The
Looking for something new
Commissioner is an advocate The Commonwealth in the supermarket aisle?
for small business interests to Government aims to
the Australian Government. avoid duplicating existing
The Commissioner’s position is Commonwealth/state services,
not underpinned by and in this regard it should be
any legislation. noted that New South Wales,
Victoria, Western Australia
At the 2013 election the and South Australia have state
Government announced small business commissioners.
it would transform the
Commissioner into a Small The Commonwealth intends
Business and Family Enterprise that anyone should be
Ombudsman – with able to approach the Small
‘real power’. Business and Family Enterprise
Ombudsman in relation
The advocacy role will be to issues concerning small
continued and expanded, as businesses and:
the Ombudsman will be a
Commonwealth-wide advocate
• Commonwealth
for small businesses and
Government entities (which
family enterprises.
cannot be dealt with by
The Ombudsman will also existing Commonwealth
be a contributor to the entities);
development of small business
friendly Commonwealth • International or interstate
laws and regulations; and trade and commerce
a concierge for dispute (which cannot be dealt with
resolution. In addition the by other entities); and
Ombudsman will seamlessly
link with the Government’s • Dealings with corporations
single business initiative (which cannot be dealt with
– to help small businesses by existing Commonwealth/
easily find out about other State entities).
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mgaa ad august 2014.indd 1 8/26/2014 2:22:34 PM
8 Industry News
Small business the casualty of misguided 'competition' policy
opinions in the letters page of and responsibility of the
the Australian Financial Review. Commonwealth public
service, but as a so-called
The background to this independent entity.
exchange casts light on the
way the different leaderships This difference in structure is
of the Australian Competition more than a technicality. Public
and Consumer Commission servants are officials on the
(ACCC) may approach their public payroll, working for and
responsibilities. under the direct control of an
elected member of parliament
Attempts by successive — a Cabinet minister chosen
Australian governments to by the Prime Minister to be
shape competition policy go responsible for a particular
back a long way. They have area of government policy.
hardly ever been satisfactory,
in part because for many years By contrast, so-called
Opinion piece by Colin Teese – price war. governments could never quite independent agencies —
News Weekly decide which side they wanted including the ACCC — are
At that point the handful to protect more — business staffed by publicly-paid
Exponents of free market of survivors — or just one or consumers. officials. By deliberate choice,
economics talk endlessly about survivor — normally enjoy a these officials operate outside
competition, as if it were the stronger place in the market In part that problem remains. direct ministerial control. The
driving force of capitalism. and are able to recover But a further overlay of fiction is that, by virtue of this
It isn’t. anything lost in a price war by confusion now exists, because advantage, they will be isolated
raising consumer prices. the idea of competition has from “political influences” —
On the basis of their now been totally subsumed as if any officials administering
fundamental premise, anything Advocates of “cut-throat” under free market ideology. government policy can or
less than unbridled price competition, usually without should be immunised against
competition, resulting in a race a strong business background, This makes it harder than ever
to set policy. On the one hand, such influences.
to the bottom, will supposedly skip over these considerations.
short-change consumers. Practising businessmen can ideology dictates that free In practice, because of their
be counted on for a more markets need no regulation. nominal independence, these
A race to the bottom on price, balanced attitude to the matter On the other are the pressing officials are subject to more
however, will likely bring with it of competition. And certainly demands of common sense pernicious influences — that is
a drop in quality standards, and big business is wary about too in favour of some kind of to say, special interest groups
that becomes a self-serving much competition — at least regulatory framework. within society, including
process. The more competition with its big rivals. those with whom they might
impacts on price, the more But what kind of framework
is the question? Over the sympathise or even have had a
competing businesses will be Those formulating our policies previous working relationship.
under pressure to sacrifice have never been prepared years the framework has been
quality and/or service in order to take account of the fact redefined and refashioned. Interestingly, the recent
to stay price-competitive and that the tentacles of anti- The Hawke/Keating Labor exchange of views, in the pages
still be profitable. competitive practices can governments of 1983-1996, of the Australian Financial
reach beyond consumer wholeheartedly committed Review during August 2014,
That’s on the consumer side. protection and into the heart as they were to free market between the present and past
On the business side, any race of business competitiveness ideology, engaged a champion leadership groups from within
to the bottom on price will itself. That is one of the ideologue, Fred Hilmer, to the ACCC, brings this problem
result in some perfectly sound inevitable consequences of fashion a new strategy. In into clear focus.
(though smaller) businesses imperfect markets. 1995 the new approach was
falling casualty to the price war, crystallised in the setting up of It concerns Section 46 of the
and not necessarily because Against this background I the ACCC. Competition and Consumer
of inefficiencies. Survivor(s) was pleasantly surprised to Act. The present leadership
will not always be the most find an important element In line with the practice of the ACCC has proposed
efficient businesses — they of the problems associated already in place, and prevailing amending the existing
may merely be those big with competition policy being ever since, the ACCC was provisions. As presently
enough to survive a short-term aired in a recent exchange of created, not as a government worded, these prohibit use of
agency within the framework
December 2014 - Edition 8
Industry News 9
market power by big business as it is delivering a short-term The current leadership is to harm small business — the
for anti-competitive purposes. gain to consumers. apparently concerned that reverse is never possible.
loopholes in s46 of the Act,
The change proposed is In its response to that idea, as currently framed, could Ironically, only a couple of
intended to provide greater the present ACCC leadership legitimise unfair competition months after this exchange
specificity to the existing spokesmen, Jill Walker and by big business in the name of between former and present
language. Additionally, it places Roger Featherston, point “competition”. The response leadership of the ACCC, a
a more onerous responsibility out that the narrow and from Samuel and King seems specific instance has emerged
on big business. oversimplified interpretation to suggest that this is precisely involving the alleged behaviour
of what constitutes legitimate the kind of behaviour that of a major supermarket chain
As proposed, the redrafting competition, as favoured by and its alleged misuse of
should be tolerated.
of s46 would read as follows: Samuel and King, carries with it market power. It is currently
“A corporation which has a important shortcomings. On the basis of that being investigated by the ACCC.
substantial degree of market interpretation, the amendment
power shall not engage in The courts have made clear, proposed by the current Speaking as a consumer with
conduct that has the purpose, for example, that a competitive leadership seems timely a clear appreciation of how
or has or is likely to have advantage gained by superior and appropriate. unfair competitive business
the effect, of substantially research or innovation would practices might harm both
lessening competition in that be considered legitimate, but By contrast, Samuel and King business and consumer
or any other market.” that damaging a competitor by want the power to deal with interests, I hope that the
less legitimate means might big business when it seeks changes in s46 of the present
The proposed amendment has be unacceptable. to harm small competitors legislation being advanced by
drawn objections from two with questionable practices, the current leadership of the
former ACCC commissioners, Walker and Featherston are at while hiding behind the shield ACCC proceed into law.
Graeme Samuel and Stephen pains to distinguish between of legitimate competition.
King (AFR August 12, 2014). the competitive process (which Behind this lies the perfectly We all stand to benefit
Samuel and King want the can be either legitimate or valid assumption that in such from that.
present s46 to remain. That otherwise) and the position a contest big business always Source: Colin Teese, News Weekly, 8
is, they want no restrictions of an individual has the capacity and incentive November, newsweekly.com.au
on big business power, so long competitive business.
www.mga.asn.au
10 Industry News
MGA/LRA Industry Business required) of Coles and Woolworths packaged liquor stores had
been stopped, as their liquor license applications must now come
Breakfast and AGM
with a planning permit.
The final speaker for the morning was Peter Anderson, former
On November 19, MGA/LRA held its annual prestigious Industry Chief Executive of the Australian Chamber of Commerce and
Business Breakfast at Leonda Receptions in Hawthorn, Victoria. Industry. Peter is one of four members of the Harper Competition
Policy Review Panel which is reviewing the fitness for purpose
120 members, industry stakeholders and suppliers attended the of the Competition and Consumer Act with respect to it being
breakfast to be inspired by three insightful keynote speakers, as a suitable economic tool that drives prosperity and economic
well as to network with fellow industry colleagues. productivity for Australia and all Australians.
Industry colleagues included representatives from all On November 17, MGA/LRA, as well as many industry
independent supermarket and liquor brands including, IGA, stakeholders, lodged response submissions to the Harper
FoodWorks, Ritchies, SPAR, Cellarbrations, The Bottle O and Competition Policy Review panel’s report, that was released on
Duncans. Key industry stakeholders; Metcash, FoodWorks and 2 September.
Australian Liquor Marketers were also in attendance.
Peter spoke passionately about doing what is “right for Australia”,
The MC of the breakfast was Michael Reddrop, who is also a not what is right for large or small businesses. The Panels
FoodWorks retailer. He did a superb job to keep the morning’s recommendations will be completely independent and based
proceedings running smoothly, delighting the audience with upon the vast amount of facts, evidence and information they
his wit. He made mention that every state and territory (except have been gathering from submissions, public forums, meetings
NT), was represented in the room, testimony to the reputation and various forms of communications since March 2014. This
this event has built over the years as the premier industry is a very challenging task, particularly to envision what the next
business breakfast event. 20 years may look like in Australia, given the incredible speed in
development and accessibility to technology. MGA/LRA has been
The first speaker was Dean Pearson, who is the Head of Industry advocating exhaustively for Competition Law reform on behalf
Analysis for National Australia Bank. Dean, gave the audience members and more specifically the introduction of an effects
a brief, informative and high level overview of the current test into section 46 – Misuse of Market Power into the
performance of the Australian economy, showing various key Competition Act.
economic performance indicators and trends that the audience,
found very useful. Peter was extremely well received by all those in attendance, as
the future of the independent supermarket and liquor sector
The Victorian Treasurer, Hon Michael O’Brien MP, was our depends greatly upon the final Harper report delivering
second speaker for the morning and spoke passionately strong recommendations to the government for Competition
about the impending Victorian state election and a variety of Law reform.
infrastructure initiatives that the state Coalition wish to drive
into the state economy if they win the election. The Treasurer We would like to take this opportunity to thank our guest
spoke about the great value that small businesses such as speakers and all our industry colleagues for putting the morning
independent supermarkets and liquor stores provide to the aside to attend this very important industry business breakfast.
local and state communities. He highlighted that payroll tax had
been reduced, liquor license fees had been increased for the Thank you to our corporate partners; NAB, Visa and LEDified for
large Coles and Woolworths big box liquor stores and that the sponsoring this event.
liberal development (previously no local council planning permit
120 Industry stakeholders attended The Prime Minister's video message
December 2014 - Edition 8Industry News 11
Tom O'Connell – SPAR Canberra, George Kovits – LRA President, Tony
Peter Anderson – Harper Competition Policy Review Panelist, Jos de Bruin – Bongiovanni – Cellarbrations Gisborne, Angelo Gianetta – Cellarbrations
MGA/LRA President Strathmore
Michael Reddrop – MC Dean Pearson – Head of Industry Hon Michael O'Brien MP – Victorian Peter Anderson – Harper Competition
Analysis at NAB Treasurer Policy Review Panel
Ritchies Supa IGA table MGA/LRA Corporate Partners
MGA/LRA Corporate Partners and members ALM and IBA table
MGA/LRA Corporate Partners and members MGA/LRA Corporate Partners and members
www.mga.asn.au12 Industry News
Farewell Russell Markham CEO Foodland SA announces
Foodland South Australia appointment of new CEO
Russell Markham, CEO of The Foodland Board of
Foodland for over eight years, Directors wishes to advise
completed his last day with the that after an extensive review
Foodland Supermarket Group, process and interviewing
at the Foodland in Focus dozens of potential applicants
industry event, held at the they are pleased to announce
Adelaide Hilton on that Con Sciacca has been
14 November. appointed to the position
of Foodland Chief
Russell, reporting to the Executive Officer.
Foodland Group Board,
dedicated his entire tenure Con Sciacca brings a wealth
at Foodland to enhancing of experience in both retail
the prosperity of each and and wholesale. Foodland are confident that he will successfully
every Foodland retailer and manage the group into what will be a very competitive
the Foodland group itself. Russell enabled the exponential sales marketplace.
and South Australian (SA) market share growth in every year
of his service. Russell built an exceptional team of promotional Through this process undertaken by the board it has reinforced
and marketing staff at Foodland who also focussed purely that Foodland is a strong brand and commands a great deal of
on delivering exceptional shopping experiences to Foodland respect and standing in the industry.
customers all over SA. Russell initiated strong and heavily
Current Foodland Chief Executive, Russell Markham, leaves with
community focused initiatives and state-wide promotions.
over eight years of service.
Foodland is heavily involved in local communities and has
become a major contributor to a variety of worthwhile SA Photo: Linkedin
community organisations including; the Little Heroes Foundation,
SA Cancer Council, Tress for Life and the Flinders Medical
Research Foundation. In 2014 there was $100,000 in total
New Franchising Code to apply
donated to these organisations.
The strength of the Foodland brand is second to none in SA with
from 1 January 2015
independent consumer surveys revealing the Foodland Brand as ACCC powers strengthened
having the highest recall of any brand in SA.
From 1 January 2015, the current Franchising Code of Conduct
This is testimony to the very hard work by the entire Foodland will be repealed and replaced with a new Code. This will apply to
team led by Russell. Foodland retailers have consistently all franchise systems operating in Australia.
supported local and national suppliers, processors and
Whilst many provisions of the current Code will remain, some of
manufacturers often giving small suppliers a “first go” in the
the changes to the new Franchising Code will bring include:
supermarket industry.
In more recent years Russell took a great interest in Government • Introducing an obligation for parties to act in good faith in
relations, dedicating many hours in particularly opposing the their dealings with one another
market dominance of Coles and Woolworths. Russell was a
champion for the independent supermarket retailer! • Introducing financial penalties and infringement notices for
serious breaches of the Code
Russell now retires, after
over 40 years in the grocery • Requiring franchisors to provide prospective franchisees with
industry, to spend more time a short information sheet outlining the risks and rewards of
with his partner Cathy and franchising
his grand daughter, as well as
pursuing his love of the sea – • Requiring franchisors to provide greater transparency in the
surfing, yachting and fishing. use of, and accounting for, marketing funds.
Best wishes to Russell and his
family from all of us The new Franchising Code and the Minister’s explanatory
in the independent statement, which helps explain how the Code is intended to
supermarket sector! operate, are available on the Comlaw website.
December 2014 - Edition 8Industry News 13
Foodland In Focus 2014 An announcement was also
made that 2015 Foodland
Conference will be held in
On 14 November, the South Australian Foodland Group held
Darwin 9 to 13 April.
its annual one day industry event, “Foodland in Focus”, at the
Adelaide Hilton Hotel. Russell Markham (left) on his
last day as CEO of Foodland
The event was enormous. 372 retailers, staff, wholesalers and
performed his last official duty
industry suppliers attended this prestigious event.
for Foodland by presenting to
Once again the Foodland management, staff and board are four local SA charities a total
to be commended for organising a highly professional and $100,000 that was raised
engaging industry event involving all members of the SA Foodland through various Foodland
independent supermarket network. Promotional programs
conducted during the course of
Roger Drake (left), Chairman the year.
of Foodland, emphasised
the need for retailers to be Recipients included; Little
positive and assertive in their Heroes Foundation, SA
businesses. Roger said, “It's Cancer Council, Trees for Life
too easy to be distracted and and, Flinders medical
discouraged from focussing research Foundation.
on your own business with
The final session for the day was “The Panel” of three retailers
all the negative news about
and one Foodland management member for John Lees to
new competitors coming to SA
interview. Questions included many of the negative statements
and the continuous growth of
that are being made in the community concerning competition
Coles and Woolworths market
and regulatory challenges.
power.”
The Panel members (bottom photos) included; John Sandercock –
Roger encouraged all Foodland retailers to focus on their
Foodland Ardrossan, Joseph Romeo – Romeos Retail Group, Bob
strengths and doing what is important in their businesses, “Focus
Soang – GM Drakes Supermarkets and Stuart Harrod – Category
on your customer and deliver on their shopping experience
Promotions Manager.
expectations and you give them a reason to keep coming back to
your store!”. Each panel member, a business leader in their own right, was
given the opportunity to answer the questions or make comment
During the day there were
on statements for the benefit of the audience.
a number of professional,
insightful and highly
motivational speakers
addressing the opportunity to
dispel a negative environment
and creating a positive
culture for staff and
importantly customers.
Keynote speakers included;
Vinh Giang – SA 2013
Entrepreneur of the Year, Keith
Thomas – CEO Port Adelaide
Football Club, Andrew Fagan
– CEO Adelaide Football Club
and John Lees – sales and
marketing specialist.
Foodland management
including; Michel Reis (top left)
– Business manager and Narita
Perrotta (bottom left)– Office
manager, also made important presentations highlighting the
Foodland Group’s very strong sales and SA market share driven by
a comprehensive promotional and marketing campaign.
www.mga.asn.au14
Attention Members !
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December 2014 - Edition 8
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$250 payment will be made to the organisation 30 days from proposal submission. Offer valid until 31-1-2015Corporate Partner Advertising 15
J.C.’s Quality Foods announces two new products
Exciting new healthy choices in J.C.’s Yoghurt Topper Mix and “We are confident the attractive packaging, health benefits and
Apple & Strawberry Fruit Pieces. taste will ensure this product is a winner with users truly able to
enjoy it guilt free.”
Leading nut and dried fruit company, J.C.’s Quality Foods, has
revealed two new multiple-use healthy products. They are part of Another innovative new product is J.C.’s new Apple & Strawberry
the company’s snack-sized retail offering, which is championed by Fruit Pieces pack, which is a 100 per cent fruit derived
J.C.’s 40/45g Snack Pack varieties that are sold in more than 1000 ‘confectionery’ snack with no added sugar.
outlets around Australia.
The bite-sized jelly-like pieces are free from artificial colours,
J.C.’s Yoghurt Topper Antioxidant Mix is a source of dietary fibre, flavours, preservatives or sulphites and come in an attractive
vitamin E and antioxidants and will take advantage of Australia’s 25g pack.
yoghurt boom. This 40g pack is a delicious mix of slivered
almonds, sultanas, dried cranberries and blueberries. “Perfect for school lunches and after-school snacks, parents can
at last be confident they are giving their children a healthy, sweet
The grab-and-go pack can be easily torn and poured on to fresh snack without any nasties.
yoghurt and breakfast cereal and also eaten direct from the pack
as a handy snack. It fits neatly into lunch boxes, handbags, desk “The Apple & Strawberry Fruit Pieces are equally suitable for a
drawers and the glove box. sweet-toothed adult as the snacks pack a real flavour punch and
can be enjoyed without the manufactured ingredients that come
Louis Cannatelli, general sales manager of J.C.’s Quality Foods, with ‘normal’ confectionery.
said there’s no longer any excuse to eat junk food snacks because
the Yoghurt Topper tastes delicious, provides the ideal single “Following on from our very successful five Snack Pack varieties
serve portion and has a nine month minimum shelf life. that include the Original Delicious Energy Mix, Healthy Mix,
Outback Mix and Jackaroo Mix, we are confident we have another
“There’s nothing quite like this on the market. The product is winning formula with these two new products. We are always
so versatile that retailers can display them in various in-store innovating and pride ourselves on quality, value, freshness and
locations such as the dairy cabinet, snack aisle, at the checkout, in the ability to take our products to the market quickly,”
the fresh fruit section, in the deli and even in the cooking aisle. Cannatelli said.
www.mga.asn.au16 Industry News
The Spudshed in WA Introducing Jalna’s new range of
The supermarket war is heating up as independent retailer
Spudshed prepares to open its biggest store, which will operate pot set fruit yoghourt made with
around the clock at Innaloo.
Owner Tony Galati said the 24/7 shop would offer a wider range
all natural ingredients
of fresh produce, meat and groceries than any of the other five
Spudsheds, and would employ a record number of people, with
more than 140 staff. He anticipated it would drive down grocery
prices at the Coles and Woolworths stores next door at Innaloo's
main shopping centre.
The fight for customers is expected to intensify when German
discount retailer Aldi opens on the other side of the shopping
centre, in the upcoming Innaloo Megaplex development.
"We create competition, and (Coles and Woolworths) will
probably drop their prices, so for people in the Innaloo area,
prices will come down," Mr Galati said.
"We are looking at putting a few more stores around Perth, giving
people cheaper access to food, and as we find the new locations,
we will announce them."
The team at Jalna, makers of Australia’s
"A lot of people are doing it tough, and we are selling good food favourite pot set yoghourt, has launched
at virtually wholesale prices to the public." the new Pure Yoghourt with Fruit range,
with a real fruit layer below the traditional
Mr Galati said he expected the Innaloo store would be busy pot set Sweet & Creamy Greek yoghourt recipe that
around the clock, especially as local restaurants and cafes sought Australians love.
fresh produce before opening their shops.
It has taken the Jalna team more than two years of research,
Marketing Focus director Barry Urquhart agreed the supermarket trialling and tasting to create four varieties of a pure fruit
giants in Innaloo would reduce prices on fresh produce when yoghourt that is set naturally in the pot so it doesn’t need any
Spudshed opened. But he said reductions would be localised to artificial additives, sweeteners and preservatives or added
the area. "The most loyal shoppers at Spudshed's Innaloo store cane sugar.
will be the managers from Coles and Woolworths, because they
will check the prices six times a day and match accordingly," Mr Jalna is already well established in households, and the new snack
Urquhart said. size Pure Yoghourt with Fruit range extends the product offering
to the office fridge as well as school lunch boxes.
He said Spudshed and Aldi, which plans to open about 70 stores
in WA, would eat into the duopoly's market share. Jalna’s brand manager, Kristy Vandenberghe said “The new
product range was created for on-the-go convenience,
Last year, the multimillionaire farmer took on the supermarket giving consumers even more ways to enjoy Jalna yoghourt.
duopoly in the liquor market, opening what has been billed one The generous layer of real fruit adds a natural sweetness to
of the biggest WA bottle shops. our traditional pot set yoghourt recipe, which is perfect for
Source: Kim Macdonald, The West Australian, 7 November, au.news.yahoo.com
consumers looking for snack sized pure products that don’t
compromise on taste.”
Jalna’s pot set natural yoghourts have been made with care and
craftsmanship for more than 30 years.
Jalna Dairy Foods Pty Ltd, 31 Commercial Drive, Thomastown
VIC 3074 P: (03) 9466 4444 | www.jalna.com.au
Jalna Pure Yoghurt with Fruit (RRP $2.79 for 200g)
METCASH order numbers:
Blueberry: 114210
Mango: 114257
Passionfruit: 114443
Picture: Simon Santi/The West Australian Raspberry: 114477
December 2014 - Edition 817 www.mga.asn.au
18 Legal andRepresentation
Industry HR
Enjoying the staff Christmas
celebrations
Once again we remind
members about you and
your staff enjoying your
Christmas celebrations.
An employer who organises
Christmas celebrations
needs to be aware of the
responsibility for the well-being
and safety of employees during
these celebrations. It is essential to make sure that employees
abide by appropriate standards of behaviour and safety in order
to avoid any employer liability in case things go wrong.
Sexual harassment is one of the most common problems that
arises out of the staff Christmas party. If an incident of sexual
harassment occurs whether at the worksite or off site, if it is
work-related then the employer can be held responsible. Make
sure that a copy of the company policy on sexual harassment is
well-known to all employees.
Over indulgence in alcohol is generally the cause of Christmas
workplace problems. Sometimes disagreements occur due
to excessive drinking and they have been known to end up in
physical fights.
Here are some tips to assist employers to manage their Christmas
celebrations:
• Tell your employees, in writing, that you want everyone
to have a good time and that you expect them to behave
responsibly. Warn employees that they should exercise
caution in regard to the consumption of alcohol. Consider
making cab vouchers available for staff to get home from the
party or call for volunteer drivers amongst staff who don’t
drink alcohol.
• Do not allow anyone from your company to serve alcohol to
staff, and advise bartenders not to serve anyone who
seems intoxicated.
• Make sure there are plenty of soft drinks available, and make
sure that food is served.
• Do not make the function compulsory, and don’t insist that
staff have an alcoholic drink as part of their “networking
obligations”. This could be seen as part of the job
requirements and the employer may be liable if there is any
accident on the way home.
Providing your employees with a few simple reminders will
ensure that everyone has a good time during their festive
celebrations.
December 2014 - Edition 8Legal andRepresentation
Industry HR 19
Christmas and New Year Trading Using a “probationary period”
2014/2015 for new employees
Members are reminded of the public holidays over the There is nothing in the Fair
Christmas/New Year period 2014/2015. Some states have trading Work Act which refers to a
restrictions and members should check our bulletin available on “probationary period”. When
our website. a new person is employed it
is common to suggest there
will be a “probation period”
but it is really a time for the
employee to assess whether
they like or feel comfortable
with the work and for the
employer to see whether the
employee is suitable for the
position that is to be done.
For a business of 14 employees or less (including casuals
employed on a regular and systematic basis), the “probation
Workplace stress – a
period” for an employee can be up to 12 months. For a business
with 15 or more employees, the probation period is up to
6 months. Depending on the size of your business, once an
management issue employee’s service reaches the relevant period, s/he will be
protected by unfair dismissal laws.
Workplace stress can be a significant health and safety issue for The “probation period” is an excellent means of assessing an
employers. It is in the best interests of the store to be aware of employee’s suitability to the role you have placed them in. This is
the causes and signs of stress and to take all the necessary steps not to say that records should not be kept of discussions, verbal
to eliminate it from the workplace. cautions and formal meetings undertaken during the probation
Work related stress can be the result of many factors. It can be period. Any issues raised with employees should always be
the result of conflict in the workplace with bosses or other staff. documented because it is never certain as to what may happen
In many cases employees claim “bullying” is the cause of their down the track.
stress but some staff simply become distressed by their working Do not hesitate to act once you detect there is a problem with an
environment and this situation then rebounds on the employer. employee’s performance. If you allow the problem to continue
There are many symptoms of stress and they include; decline without attempting to remedy it, then it could, and probably
in work performance, increased sick days, increased aggression will, become more problematic. Once the initial period of
and displays of anxiety. Employers are often surprised when the employment has been completed and no action has been taken,
performance of a long serving, hard-working employee then the termination process is more difficult.
suddenly declines. When monitoring an employees work during the initial period
In order to avoid claims for workers compensation, it is of employment an employer should provide feedback on work
recommended that members be aware of how to avoid any stress performance and indicate if any problems exist. If you decide
in the workplace. It is important to have the highest standards of during the first few months of employment that you wish to end
workplace safety. the employment relationship you should advise the employee
that he or she is not suitable and provide a letter to that effect. If
Encourage staff to discuss any issues of concern openly with their the employee is a full time or part time employee and you decide
managers and take any steps necessary to resolve issues. Ensure to terminate the employment contract before the expiry of the
that each person is properly trained for a particular job and “probation period” you will be required to pay the employee a
whilst you can promote a friendly atmosphere in the workplace, week’s notice or have the employee work out the notice.
make sure that the levels of friendliness are not offensive to any
individual employee. You should be alert not to terminate employment at any
time even during the “probation period” on the grounds of
It is most important to have a safe and healthy work environment discrimination, illness, workers compensation, for being a union
and an “open door” policy where employees feel free to consult member or because of any legal claim being brought against you.
with the boss will often assist an employee who might otherwise You should always contact MGA before any decision to
feel stressed. terminate employment.
www.mga.asn.au20 December 2014 - Edition 8
Legal andRepresentation
Industry HR 21
Managing work performance and allowing them a chance to rectify their behaviour. This often
results in causing unnecessary tension and often an otherwise
Every employer wants their employees to perform to the potentially good employee will be lost to the business.
best of their ability. They want them to complete their tasks In both scenarios, the risk of receiving an unfair dismissal
to a satisfactory standard and contribute to the success of application is high.
the business. Unfortunately, employees don’t always fulfil
the employer’s expectations and there is then a need to let It is recommended that employers adopt best practice methods
the employee know that that their standard of work requires for the performance management of employees in a timely and
improvement. Managing your employees is one of the toughest efficient manner. It is helpful to employers and their businesses
tasks associated with operating a business. if managers and employees work together to facilitate better
colour
performance outcomes, grounded by a workplace culture which
The industrial landscape is already difficult for employers with facilitates support and communication. This will inevitably lead to
rising wages, a rigid General Retail Industry Award, and increasing a happier workplace with greater productivity levels.
competition. Attending to the performance management process
your
is not easy, especially when there are so many other business The purpose of the performance management process should
priorities, but addressing workplace problems as soon as they never be to facilitate the termination of an employee, or to
arise, no matter how time consuming, will be beneficial in the "performance manage" an employee out of the business. Rather,
summer
longer term. Conversely, if your fail to address a problem and the process should seek to identify and resolve any
you allow workplace problems to persist and fester, there can be performance concerns.
significant costs to your business.
Employers need to be aware of the need for sound recruitment
Problematic employers fall into one of two categories procedures, including providing proper job descriptions and
which happen to be on either side of the performance reference checking. After a proper induction process wherein the
management spectrum: employee has been given guidance on how to do the job, you
may find you need to give the employee further directions of how
Firstly, some employers allow the performance issues of
colour
you want work performed. Sometimes this approach works out
their employees to persist and remain ongoing without any well, but sometimes the employee is simply not suited to your
intervention. These employers reach a breaking point where they
your
workplace and further action needs to be taken. It is far easier to
finally become exhausted with the employee’s performance and deal with a potential problem immediately rather than letting the
want them out of the business immediately. Often the employee
is unaware of the issue and there have been no documented
discussions or warnings given. Termination of employment then
matter fester and become unmanageable.
Importantly, it is essential that a paper trail is kept of discussions
summer
becomes more complex and often creates a long term, laborious and meetings relating to the identified issues.
colour colour
process to follow.
The objective of performance managing employees is to assist
Secondly, some employers are heavy handed at the first site of both the employer and the employee to achieve an harmonious
poor performance and prefer to immediately issue warnings or your your
working relationship where all parties can benefit.
termination without first discussing the issue with the employee
summer summer
colour colour
your
your
summer
summer
250ml is the perfect size pack for single serve cold drink. A target market with different
Any references to maximum retail prices on packaging or promotional material are references to maximum retail prices only. The customer is always free to sell below.
©2014 The Coca-Cola Company. ‘Coca-Cola’ and the Dynamic Ribbon device are registered trade marks of The Coca-Cola Company. #colouryoursummer
needs to the 600ml PET shopper. $2 maximum retail price for the perfect small change
pack. In November, Coca-Cola & Coke Zero will transition to randomised coloured cans
for 3 months limited edition. $10 million though the line campaign, including impactful
point of sale material to engage your shoppers. Ensure you are ranging these great lines
so you don’t miss out. No changes to EAN’s or Metcash codes.
#colouryoursummer
Any references to maximum retail prices onAnypackaging or promotional material are references to maximum retail
references to maximum retail prices on packaging or promotional material are references to maximum retail prices only. The customer is always free to sell below.
prices only. The customer is always free to sell below. ©2014 The Coca-Cola Company. ‘Coca-Cola’ andAny
©2014 The trade
ic Ribbon device are registered Coca-Cola Company.
marks of ‘Coca-Cola’
The Coca-Colaand the Dynamic
the
Ribbon device are registered
Company.
Dynam-
references to maximum retail prices on packaging or promotional material are references to maximum retail prices only. The customer is always free to sell below.
trade marks of The Coca-Cola Company.
©2014 The Coca-Cola Company. ‘Coca-Cola’ and the Dynamic Ribbon device are registered trade marks of The Coca-Cola Company. #colouryoursummer
#colouryoursummer
Any references to maximum retail prices on packaging or promotional material are references to maximum retail prices only. The customer is always free to sell below.
©2014 The Coca-Cola Company. ‘Coca-Cola’ and the Dynamic Ribbon device are registered trade marks of The Coca-Cola Company.
www.mga.asn.au22 Legal andRepresentation
Industry HR
Security for your employees
Unfortunately we live in increasingly violent times and it is
therefore appropriate for members to be vigilant when it comes
to protecting themselves and the employees against potential
threats to their security.
Armed hold ups, staff working late or alone and money handling
are amongst the risks that employers and employees face every
day. It is recommended that members have risk measures in
place to protect against dangerous situations and to know what
to do in an emergency.
Prevention strategies against an armed hold up
Every store should have a written policy in place for dealing with
armed robbery. It should be dealt with at induction and should be During an armed robbery
placed in the tea room to remind staff how they should respond
in an emergency. Review your policies on an annual basis -don’t It is vital that your employees do everything to take care of their
just rely on an induction program that was used several own safety during any incident of violence in the workplace.
years earlier. Obviously they should be trained to know how to react if an
incident of violence occurs.
In late trading areas where there is only one store, a suggested
strategy is to provide free coffee to taxi drivers and police as a Direct your employees as follows:
means of providing more human activity around the area. Keep
your store brightly lit and the windows free of advertisements. • Try to stay calm
Also keep the outside area brightly lit as a sound preventative
measure. Have signs around your store that say minimal cash is • Follow the instructions of the offender exactly
held on site and also that you use time delay safes. Roster your
more experienced staff to work at night and where possible avoid • Do not stare at the offender
having only one person close the store late at night. Assess your
area and keep in contact with the local police on a regular basis. • Do not pursue the offender
Avoid having items on the counters that could be used as a • Keep your hands still and keep them where the offender can
weapon. Make sure that your employees are knowledgeable see them
about how to address customer aggression and that they are able
to detect signs of potential customer violence. • Do not take any action against the offender
It is also suggested that retailers: • If possible make a mental note of anything that might identify
the offender(s). Such things as height, hair colour, accent,
• Never publically discuss the transfer of money from one place clothing, scars, tattoos which may assist with identification.
to another
• As soon as the offender has left, the employee should then
• Try to minimise the amount of money that is held at the store sound the alarm. If it is possible and you are able to do so
with caution, try to see if the offender leaves in a vehicle and
• Be alert to anyone who might be lurking around the store if it is possible note the colour and make of the vehicle.
• Keep the store well lit and make sure that all exits are secure • Wait for the police and in the meantime do not touch
anything that the offender may have handled
• Train staff to know want to do in an emergency situation
• Encourage any witnesses to the incident to remain.
• Have your cameras on at all times and check them regularly.
They should be placed internally and externally at both front During an armed hold up, under no circumstances should an
and rear entrances. employee attempt to retaliate against the offender. Advise
employees to comply with all requests by a potential attacker.
• It is also recommended that you also have mirrors in place. If there are any demands for money then the employee should
simply hand the money over. There should be no attempts to
be heroic. It is simply not wise to fight an offender at any time.
Retailers should impress this on their employees during training.
December 2014 - Edition 8You can also read
