A NORTHERN Queensland business operator has been jailed – and then released pending the outcome of his appeal – as a result of the Fair Work Ombudsman’s first contempt-of-court action.

On Thursday May 10, the Federal Circuit Court sentenced Leigh Alan Jorgensen - the owner-operator of a Cairns company trading as Trek North Tours – to a 12-month jail term and fined him $84,956 for committing contempt of court by contravening a freezing order that applied to funds in his company’s accounts.

The Court ordered that Jorgensen’s jail term be suspended after he had spent 10 days in jail on the condition of payment of the fine.

Mr Jorgensen sought an urgent stay of the orders in the Federal Court and lodged an appeal against his conviction and sentence. In accordance with her model litigant obligations, the Fair Work Ombudsman agreed to the stay on conditions. On May 11, the Federal Court ordered that his sentence be stayed and Mr Jorgensen be released from jail on conditions, pending the outcome of his appeal.

A Court date has not yet been set for the appeal hearing but an order has been made that it be expedited.

The matter is the first time the Fair Work Ombudsman has commenced a contempt of court action and the first time a jail term has been imposed as a result of the Agency’s actions.

Judge Salvatore Vasta imposed the jail term after finding Jorgensen had committed contempt of court when he contravened a freezing order the Fair Work Ombudsman secured against his company in 2015.

Judge Salvatore Vasta imposed the jail term after finding Mr Jorgensen had committed contempt of court when he contravened a freezing order the Fair Work Ombudsman secured against his company in 2015.

Freezing orders were imposed in the Federal Circuit Court in 2015 preventing any dispersion of Jorgensen’s and his company’s assets until such time as they complied with penalty and back-payment orders resulting from the Fair Work Ombudsman taking legal action against them for underpaying five back-packers on 417 working holiday visas in 2013 and 2014.

The relevant orders from that legal action, imposed by the Federal Circuit Court in June 2015, were for Mr Jorgensen to pay a $12,000 penalty and his company to pay a $55,000 penalty and back-pay the backpackers in full, all by July 17, 2015.

The Fair Work Ombudsman took the step of securing freezing orders against both Jorgensen and his company after both failed to pay the amounts owed by the due date and receiving information that gave rise to concerns that Mr Jorgensen would divert company assets to avoid payment of the penalties and back-pay.

At the time, Mr Jorgensen’s communications with the Fair Work Ombudsman suggested he was prepared to ‘bankrupt’ his company to avoid paying the penalties and back-pay order.

Mr Jorgensen had also previously told Fair Work inspectors investigating the underpayments that the backpackers ‘would not get a cent’ in back-pay.

After the freezing orders were imposed, Mr Jorgensen paid the penalty imposed on him personally into Court, resulting in the freezing order against him being lifted.

However, Mr Jorgensen’s company failed to pay its penalty and failed to back-pay the workers, resulting in the freezing order against his company remaining in place.

The Fair Work Ombudsman commenced legal action against Mr Jorgensen for contempt of Court last year, alleging that Mr Jorgensen committed the offence of contempt of court in August 2015 when he contravened the freezing order against his company by transferring a total of $41,035 from two frozen accounts into his family trust account.

Judge Vasta found that the Fair Work Ombudsman had presented evidence to prove, beyond a reasonable doubt, that Mr Jorgensen committed the offence.

Pending the outcome of his appeal, the Federal Court has released Mr Jorgensen on conditions including that he surrender his passport, remain in Queensland and report to Police twice a week.

Fair Work Ombudsman Natalie James says that the commencement of these proceedings demonstrates that her Agency is prepared to use every tool at its disposal to ensure justice is served.

“We will use every lever open to us to ensure the integrity of the administration of justice and compliance with court orders imposed under the Fair Work Act 2009.

“This includes taking unprecedented new actions available to us across the legal framework such as this one.”

Employers and employees seeking assistance can visit www.fairwork.gov.au or contact the Fair Work Infoline on 13 13 94.

An interpreter service is available by calling 13 14 50.

Information on the website includes the Fair Work Ombudsman’s compliance and enforcement policy.

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THE Australian Retailers Association (ARA) said retailers across Australia are preparing for large crowds this weekend as shoppers enter their doors in search of the perfect Mother’s Day gift this Sunday.

With technology transforming every industry, Russell Zimmerman, executive director of the ARA said mums are more mobile than ever and all Australian’s should take this into account when buying their gift this Mother’s Day.

“Technology is creating new ways for consumers to interact with each other, and retailers are now redesigning their products to align with consumer behaviour and modernising the way they market to their consumers on these special occasions,” Mr Zimmerman said.

“Although the usual Mother’s Day gifts like slippers, perfume and pajamas are still high on the wish list this year, we are seeing retailers push more electronic gifts to suit the needs of the modern-day mum.”

Roy Morgan Research surveyed almost 2,000 mothers in 2015 to find out how they engaged with online activities and found mums are more likely to use their smartphone for life admin rather than pure entertainment.  

With this is in mind, the ARA are seeing retailers across the country stock up on Fitbits and Smart Watches this year, as department store Myer believes the highly anticipated Fitbit Versa Smart Watch will be the perfect gift for mums on the go.

Gerry Gerrard, CEO of Interflora, said flowers will still be very popular this Mother’s Day with chrysanthemums, carnations and lilies being the most popular flowers of choice.

“With Interfora’s Mother’s Day Collection offering a wide range of beautiful bouquets and hampers filled with every mum’s favourite treats, we’re expecting Mother’s Day to be as busy for our florists as ever,” Mr Gerrard said.

From bright flowers to sparkling jewellery, the ARA know Mother’s Day is the second largest trading month for the retail jewellery category, after Christmas.

Carson Webb, general manager of Showcase Jewellers said their stores often experience increased diamond business during the Mother’s Day lead-up as no one can ever have too many diamonds.

Mother’s Day is strong in the general jewellery lines, including watches and branded fashion jewellery. The most beautiful, yet simple gift selection for Mum are diamond studs,” Mr Webb said.

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is Australia’s largest retail association, representing the country’s $310 billion sector, which employs more than 1.2 million people. As Australia’s leading retail peak industry body, the ARA is a strong pro-active advocate for Australian retail and works to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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THE Australian Retailers Association (ARA) said March trade figures released today by the Australian Bureau of Statistics (ABS) represent an adequate Easter trade, with a 3.15 percent total growth year-on-year.

Russell Zimmerman, executive director of the ARA, said although March figures were in line with expected year-on-year retail growth, the ARA would like to see a much stronger growth for retailers already struggling in an uncertain market.

“Although March trade figures are slightly stronger than February’s retail trade, the growth relies highly on food retailing,” Mr Zimmerman said.

“We’ve seen the majority of retail categories take a step back in year-on-year growth across the industry.”

Food Retailing grew by 4.17 percent year-on-year which was boosted by Specialised Food (9.84%), Liquor (7.26%) and Supermarkets (3.37%).

“With Easter trade being early, we would have hoped to see strong growth in Department Stores and Clothing, Footwear and Personal accessories,” Mr Zimmerman said.

“However, instead we have lost ground in these categories at a time when they should be thriving.”

Across the country, Victoria (5.48%) and South Australia (4.13%) showed the strongest year-on-year growth of all the states, while the Australian Capital Territory (3.04%), Tasmania (3%), New South Wales (2.84%) and Queensland (2.47%) remained steady.

The Northern Territory (1.79%) has improved month-on-month but showed weak year-on-year growth. Unfortunately, Western Australia (-0.50%) still lags behind the rest of the country with negative figures yet again.

“It was pleasing to see Online Retail remain steady in March, however our major concern is in Newspapers and Books who have fallen -12.74 percent, showing negative figures for three months in a row,” Mr Zimmerman said.

“We are hoping to see localised growth across most retail categories come July, with the commencement of GST collection for overseas goods.”

The ARA are hoping tonight’s Budget focuses on personal and company tax cuts to ensure retailers across the country can invest in their businesses and grow employment in the sector.

“We also believe personal tax cuts will be key for the future of retail, as personal income tax cuts will enable consumers to feel confident about their spending and ensure the longevity of Australian retail.”

Monthly Retail Growth (February 2018 - March 2018 seasonally adjusted) 

Food retailing (0.70%), Clothing, footwear and personal accessory retailing (-0.19%) Household goods retailing (-0.26%), Department stores (-0.52%), Other retailing (-0.56%) and Cafes, restaurants and takeaway food services (-0.81%).

Australian Capital Territory (1.52%), Victoria (0.23%), South Australia (0.19%), Northern Territory (0.08%), Western Australia (-0.07%), New South Wales (-0.14%), Queensland (-0.23%) and Tasmania (-0.29%).

Total sales (0.00%).

Year-on-Year Retail Growth (March 2017 - March 2018 seasonally adjusted)

Food retailing (4.17%), Clothing, footwear and personal accessory retailing (3.90%), Household goods retailing (2.96%), Cafés, restaurants and takeaway food services (2.84%), Other retailing (1.55%) and Department stores (0.38%).

Victoria (5.48%), South Australia (4.13%), Australian Capital Territory (3.04%), Tasmania (3.00%), New South Wales (2.84%), Queensland (2.47%), Northern Territory (1.79%) and Western Australia (-0.50%),

Total sales (3.15%). 

About the Australian Retailers Association: 

Founded in 1903, the Australian Retailers Association (ARA) is Australia’s largest retail association, representing the country’s $310 billion sector, which employs more than 1.2 million people. As Australia’s leading retail peak industry body, the ARA is a strong pro-active advocate for Australian retail and works to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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THE House of Representatives Standing Committee on Economics has tabled the report of its Review of the Reserve Bank of Australia Annual Report 2017 (First Report).

The report provides a summary of issues raised at the public hearing with the Reserve Bank in Sydney on 16 February 2018.

The chair of the committee, Sarah Henderson MP, said "evidence at the hearing revealed the strength of Australia’s labour market with 400,000 new jobs created in the past year, three-quarters of which were full-time. Labour force participation is close to its record high in 2011".

During the hearing, the committee examined the RBA on its monetary policy settings given the low levels of inflation in the Australian economy, and the prospects for a pick-up in inflation and wage growth as the economy strengthens.

The RBA forecasts Australia’s GDP growth to further strengthen from 2.75 percent in mid-2018 to be a little over 3 percent over 2018 and 2019. Underlying inflation is expected to rise gradually to around 2.25 percent by 2020.

Ms Henderson commented, "The Australian economy is transitioning successfully out of the mining boom and there is a large pipeline of infrastructure investment currently underway.’ She added ‘these projects are creating new jobs now, while building Australia’s productive capacity for the future."

Public hearing details: 9.30 am, Friday 17 August, Main Committee Room, Parliament House, Canberra

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

For information about the inquiry visit the committee’s website. 

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