THE CEO of Council of Small Business of Australia (COSBOA) says the Australian Council of Trade Unions (ACTU) should expel the Shop Distributive and Allied Employees' Association (SDA) as a member.

This comes following the Fair Work Commission’s ruling that Coles left workers worse-off due to the latter’s and SDA’s bargaining agreements.

The Secretary of ACTU stated that the findings by the Fair Work Commission show the system works, but Peter Strong, CEO of COSBOA, disagrees saying that the fact this has been occurring for at least six years shows a systemic failure.

“ACTU need to expel the SDA from their membership. The SDA still has on its website a call to arms for people to fight against lower penalty rates, while they have up to 100 agreements with the biggest businesses in Australia to actually have lower penalty rates, and in some situations remove them altogether. The hypocrisy and duplicity of the SDA is breathtaking,” says Mr Strong.

COSBOA has called on the Fair Work Commission to deregister the SDA due to their proven treachery.

“How did so many illegitimate enterprise agreements get approved by the Fair Work Commission? The Australian Labor Party (ALP), the Greens and others have campaigns against high penalty rates falsely influenced by a campaign run by the SDA. A campaign that misrepresented the facts and forced thousands of workers into low paid jobs, while forcing many small businesses to close,” says Mr Strong.

Mr Strong also called on the ALP to admit that small business has been disadvantaged by this campaign, while big businesses have benefited.

He states: “How can the ALP support a campaign that in the end targeted the likes of newsagents, coffee shops, bookshops, pharmacies, gift shops and small restaurants?

“These businesses are not just the backbone of the economy but also of our culture. In the end, the only businesses that paid double time on a Sunday were small businesses. All the big businesses had a deal with the SDA that paid under award rates.”

COSBOA fully backs changes to competition regulations to stop unethical practice from organisations like Wesfarmers (who own Coles) and the SDA from being created. COBOA recommends The Effects Test in section 46 and even stronger measures are needed.

“The Labor Party and The Greens need to stop listening to the SDA and start listening to the real defenders of workers’ rights and provider of jobs - small business people,” says Mr Strong.

“The union movement cannot sweep this activity under the carpet.  If they really care for workers, then their actions need to show this. At the moment there appears to be a difference,” concluded Mr Strong.

www.cosboa.org.au

ends

A FEDERAL report into the system of taxpayer subsidies for green activists’ activities reveals the current governance of the system needs an urgent overhaul, according to the Queensland Resources Council.

The report, from the House of Representatives Inquiry into the Register of Environmental Organisations, was handed down today, after launching early last year. 

Queensland Resources Council Chief Executive Michael Roche, who appeared as a witness at one of the Australia-wide hearings last year, said it was high time the light was shone onto the questionable activities of some green activist groups.

‘The myriad of evidence uncovered as a result of the inquiry reveals that some green activists – not all – may have been breaching the rules of the tax system,’ Mr Roche said.

‘Our submission to the inquiry identified alleged breaches of the Tax Act under the rules governing those registered on the Register of Environmental Organisations, on which almost all of the green activist groups are registered.

‘The recommendations from the inquiry include, abolishing the Register of Environmental Organisations, and making all organisations that claim Deductible Gift Recipient Status, come under the Charities Act – a move the QRC strongly endorses.

‘Such changes would ensure any groups using taxpayer funds would have to operate under the Charities Act, which the QRC believes has much stricter governance and rules compared to the existing Register of Environmental Organisations.’

Mr Roche also welcomed the recommendation that each environmental deductible gift recipient organisation must spend at least 25 per cent of its income on actual environmental remediation work.

‘For too long some activist groups have been unfettered in diverting taxpayer subsidised donations to campaigns against sectors such as resources and to litigation to disrupt and delay resource projects,' Mr Roche said.

‘A perfect example is the Australian Conservation Foundation case against the Adani Carmichael coal mine that commenced this week in the Federal Court.’

www.qrc.org.au

ends

THE Australian Retailers Association (ARA) is concerned for the future of the retail industry after the Fair Work Commission has today awarded an unmanageable $15.80 a week increase in the minimum wage.

From 1 July 2016, the National Minimum Wage will increase to $672.70 a week, or $17.70 per hour.  For retailers it will see the rate for shop assistants increase by $17.30 per week to $738.80 per week, or $19.44 per hour.

Executive Director Russell Zimmerman said the ARA advocated before the tribunal a realistic and manageable minimum wage increase of no more than $7.90 per week for the retail sector.

“We are obviously concerned about the effects this decision will have on retailers.

“Retailers and young Australians have been reliant on pay rates to enable retail to bring on low-skilled young staff and increase their skill levels, reducing youth unemployment. Many small to medium enterprise retailers are reliant on a minimum wage workforce, and the announcement today to increase wages during this time of low consumer confidence and low growth will sadly result in further job losses and business closures – a very distressing truth for retailers.

“The minimum wage increase, coupled with weak trade figures and penalty rates, will only cause further damage to retailers who are struggling to keep their heads above water as it is. With nervousness during the election period, weakening retail trade figures and global economic concerns the retail industry cannot simply keep up with excessive wage increases.

“The ACTU and SDA aren’t about creating jobs and opportunity but they now continue a low productivity/high wages agenda which will only harm retailers and their employees,” Mr Zimmerman said.

"There appears to have been no if little consideration taken into account of the fragile economy, risk to jobs or low growth for sectors such as retail by the Commission."

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $300 billion sector, which employs more than 1.2 million people. The ARA works to ensure retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

ends

AUSTRALIAN small business owners have reacted positively to key measures introduced in the recent Federal Budget, new research from MYOB reveals.

Over half (56 percent) of small businesses believe that lowering the company tax rate to 27.5 percent for businesses with up to $10 million in revenue will  have a positive impact.

The latest SME Snapshot also found that SMEs support increasing the instant tax write-off eligibility to include businesses generating up to $10 million in revenue. The survey found that 50 percent of small businesses believe this eligibility increase would benefit their business.

“While this year’s budget has come under fire for favouring big business, the results show that the majority of Australian SMEs believe that lowering the company tax rate is an important reform and will encourage growth.  For every dollar a small business spends with a big business, big businesses spend $2 with small businesses – it is an ecosystem and we need to make sure all parts are healthy,” said Tim Reed, CEO of MYOB.

The survey also revealed that 72 per cent of SMEs agreed growth would be encouraged through widening the definition of a small business. Tim Reed believes this move will result in SMEs feeling less restrained when it comes to planning for business success.

“It’s encouraging to see these barriers to growth removed. The previous system discouraged SMEs to grow beyond $2 million in revenue because they lose the benefits of being a small business. Small businesses often rely on bigger businesses as customers – without stimulating investment in bigger business, small businesses won’t receive the positive flow on effect,” said Mr Reed.

In this month’s survey, small businesses were also asked if they were in favour of the reduction in GST codes from seven to three as part of the government’s BAS simplification trial. Not surprisingly, almost half of the businesses surveyed (47 per cent) were in favour of the new measure.

Youth Jobs PaTH – Prepare, Trial, Hire

SMEs were also asked how likely they would be to employ someone under the age of 25 years through the Federal Government’s new PaTH initiative. Encouragingly, almost a third of SMEs (31 percent) confirmed they were likely or very likely to consider hiring a job seeker through this program. Younger business owners, aged under 40 years, were more likely (58 per cent) to use the program to hire young people.

“I believe we all should be very encouraged by these results. If just a small portion of Australia’s 2M SMEs took part in this new initiative and consider hiring a young Australian it will be a big success. There are nearly a quarter of a million young Australians out of work, so it is great to see SMEs becoming part of the solution to youth unemployment.

“With millennials set to define the future of the Australian workforce, we encourage small businesses to be a part of this internship program, and do what they can to create opportunities for the younger generation,” said Mr Reed.

www.myob.com

ends