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Vic. Chamber comments on final report from Productivity Commission’s review of Australia’s Workplace Relations Framework

THE Victorian Chamber’s submission to the Productivity Commission (PC) has argued that the key outcomes of its review of Australia’s workplace relations framework must be the creation of a simpler, fairer and more efficient framework that spurs economic growth, increased productivity and improved business competitiveness.
                                                                         
Victorian Chamber chief executive Mark Stone said he welcomed a number of the final report’s recommendations including:

  • Aligning penalty rates on Sundays in hospitality, entertainment, retail, restaurants and cafes with Saturday rates.
  • Reform to curtail the cost impost of state based public holidays in addition to the national public holidays, as recently seen with the introduction of two new public holidays in Victoria.
  • An emphasis on substance rather than process for unfair dismissal claims.
  • The return of upfront assessments of unfair dismissal claims in some circumstances, which would limit the time and effort spent by employers in defending unmeritorious claims.
  • Recognition that the enterprise agreement approval process is overly rigid and requires reform.
  • Addressing ‘strike first, talk later’ tactics that subject business to costly disruptions. The PC has recommended prohibitions and restrictions that would limit this avenue.
  • The PC’s assessment that the costs involved with expanding existing portable long service schemes would not be justified, given this would effectively introduce an additional employment tax on business with no associated benefit. 

"However, the report falls short in removing costly and lengthy general protections claims, though it does propose reforms to limit the ability of frivolous and vexatious claims to proceed, and for greater powers to award costs against applicants," Mr Stone said.

"We are disappointed that our recommendation to remove the ‘complaints’ element of the expansive general protections regime was not adopted, despite our analysis revealing only one successful case in over six years that would not have attracted protection under prior legislation. The thousands of claims against employers and rise in ‘go away money’ are therefore set to continue.

"The report also misses the opportunity to recommend crucial changes to restrict access to unfair dismissal claims, including for high income earners and genuine redundancy situations.

"Despite urging the PC to remove the burden of unfair dismissal for businesses with under 20 employees, this recommendation was not part of the final report, meaning small business will continue to spend time and money defending claims rather than running their businesses," Mr Stone said.

"We now urge the government to consider the recommendations of the PC and take on the heavy lifting required to legislate much needed reforms for business."

The Victorian Chamber of Commerce and Industry, established in 1851, is the most influential business organisation in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

victorianchamber.com.au

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Victorian Chamber welcomes Major Projects Skills Guarantee release

THE Victorian Chamber of Commerce and Industry has welcomed today’s release of the Andrews Government’s Major Projects Skills Guarantee.

"It is good that the government is leveraging the delivery of Victoria’s infrastructure projects to develop the skills of the next generation of workers," Victorian Chamber of Commerce chief executive Mark Stone said.

"Like the Victorian Chamber Internship Program, this measure supports the development of a skilled, adaptive and productive workforce aligned to the needs of business.
 
"Business wants to employ graduates with 'real world” work experience and this announcement will help apprentices, trainees and engineering cadets throughout Victoria get this experience.
 
"While the Major Projects Skills Guarantee will expand opportunities for apprentices and trainees, further reforms to industry purchasing policy are needed to foster jobs and enhance local industry capability and competitiveness," he said.

The Victorian Chamber’s recent submission to the Review of Victorian Industry Participation Policy (VIPP) calls for:

  • Changes to government purchasing frameworks to provide small business with more timely information about genuine procurement opportunities.
  • The establishment of a formal weighting system for local content in the evaluation of tenders.
  • A minimum local content target for all major regional procurement projects.
  • Improvements to procurement practices in the public healthcare and judicial systems to ensure there is greater transparency in the way in which tenders are advertised, evaluated and awarded.
  • The streamlining of procurement frameworks currently in operation across the three tiers of government. 

"The private sector plays a significant role in the government procurement process; designing, constructing, operating and maintaining an array of infrastructure projects across the state," Mr Stone said. "Therefore, reforms must also improve the environment for business by lowering costs, reducing red tape and improving investor confidence."

The Victorian Chamber of Commerce and Industry, established in 1851, is the most influential business organisation in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

victorianchamber.com.au

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Productivity Commission falls short on workplace reform: AMMA

THE PRODUCTIVITY Commission (PC) has failed employers, employees and the Australian community by giving our unnecessarily complicated workplace relations system a free pass and not properly considering how it should be fundamentally reformed for the future.

That is the view of national resource industry employer group, AMMA (Australian Mines and Metals Association) executive director for policy and public affairs, Scott Barklamb.

"While recommending some useful changes to elements of our current employment laws, today’s 1229 page PC report fails to deliver a proper plan for how our workplace relations system can best support jobs, productivity and competitiveness in Australia’s 21st Century economy," Mr Barklamb said.

"The PC fails to address how uncoordinated, excessive regulation is harming our competitiveness as a place to do business, invest and create jobs. Australia is the only country in the world to overlay awards, agreements, minimum standards and regulation of day-to-day relations between employers and employees.

"Unions are also artificially placed at the centre of our workplace laws when just 11% of private sector employees join them. 

"Australia’s business community recommended a raft of positive ideas to the PC to genuinely reform our workplace relations system and expected the PC to deliver options for meaningful change. Anything less risks failing not only existing employers and employees, but young people whose future livelihoods hinge on this generation’s will to properly address serious national challenges," Mr Barklamb said.

"The PC’s 21 pages of recommendations do contain some positive ideas that will improve our workplace relations laws and that will be supported by employers.

"However, the PC needed to do more than blithely conclude our overall system is not in need of fundamental repair. It is very disappointing the PC appears to have made only piecemeal, uncoordinated recommendations across a limited subset of areas, rather than thinking about how our workplace relations system could be improved.

"AMMA and its members welcome the Minister for Employment, Senator Michaelia Cash, opening a period for further input to government on how the PC’s report and recommendations should be progressed. We will use planned roundtable discussions to further advocate the national benefits of more meaningful reform, as well as engage with the PC’s specific recommendations.

"AMMA will encourage the Turnbull Government to put jobs, investment, productivity, growth and our future living standards at the centre of how it proceeds following the PC report, and we welcome the Minister’s prioritisation of these concerns as she released the report today," he said.

"Genuine workplace reform can deliver real benefits for Australia. For instance, independent research showed that key workplace reforms advocated by AMMA could support resource sector productivity growth of up to 5% and investment growth of 8%, add $30.9 billion to Australia’s GDP and create 36,000 additional jobs."

www.amma.org.au

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ARA supports PC on retail penalty rate reform

THE Australian Retailers Association (ARA) has come out in support of the Productivity Commission’s Workplace Relations Framework final report, which emphasises the need for penalty rates need to be set at an economically viable level to support further retail and economic growth while creating more jobs.

Russell Zimmerman, ARA Executive Director, says retailers are happy to have determination of penalty rates left to the Fair Work Commission (FWC) as the ARA has a case currently before the FWC that we believe will influence a reduction in retail penalty rates to a more viable level to more create jobs.

“The ARA, along with the Master Grocers Association is engaged in a review of the General Retail Industry Award 2010 (GRIA), with the view to reducing costs for retailers who trade on Sundays,” said Mr Zimmerman.

The ARA is pushing for a reduction in Sunday penalty rates from 100 percent, known as double time, to 50 per cent, or time and half for retail workers. The ARA is not seeking to remove penalty rates, but instead to have penalties set at a more viable level to allow for the creation of more jobs.

“The recommendation that Sunday penalty rates for retailers should be aligned with Saturday rates is an important step in the recognition that rates are not currently viable for retailers,” he said.

“The retail industry is seeking a moderate reduction, not an abolition. We propose a reduction to allow retailers more flexibility around employment of staff to be able to compete in the 24/7 global marketplace we now find ourselves in.

“The fast food and restaurant industry Awards are both significantly lower than the GRIA for Sunday penalties at just 50 percent, and we would like to see the GRIA brought down to match this.

“The decision on standards such as penalty rates have always been made by independent arbitrators and this is a process the ARA will continue to support, as long as it remains fair and within a reasonable framework,” Mr Zimmerman said.

Retailers fully support the recommendations of the Productivity Commission’s report and look forward to working with the Government and its arbitrator the FWC to achieve these objectives.

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $284 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.

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ARA: Food and groceries to go gangbusters this week

THE Australian Retailers Association (ARA) is encouraging shoppers to hit supermarkets and other fresh food retailers this weekend and early next week to avoid the traditional last minute rush for Christmas groceries expected on Wednesday and Thursday.

Fresh food, perishables, alcohol, and other groceries, along with last minute gift purchases will be top of shopper’s lists this week as Aussies stock up on food and beverages for Christmas entertaining, or to tide them over on Christmas Day when stores may be closed.

Australian consumers are expected to spend almost $19 billion on grocery items this Christmas, up 2.5 percent on last year. The ARA ‘s top seller predictions for groceries in the next week include boxed chocolates, confectionary, ham, turkey, seafood, chips, dips and crackers.

“The sharing of meals and drinks with friends and family is a huge part of an Australian Christmas, and as a result, retailers of both food and drink products fare very well over the period,” Russell Zimmerman, Executive Director of the ARA, said.

“Fresh foods in particular, as well as alcohol are big sellers in the five days to Christmas, with many consumers also stocking up for Boxing Day parties and gatherings in anticipation of the day of no trade on Christmas Day.

“We recommend all consumers hit the stores early next week to avoid the queues that inevitably form in stores at this time of year and ask that shoppers remain patient as retail staff manage the increased number of customers,” Mr Zimmerman said.

Seafood will be one of the most popular fresh foods, as Australians continue their tradition of a cold lunch to counter the warmer southern hemisphere weather.

Sydney Fish Markets is expecting more than 100,000 shoppers to visit the market in the 36 hours from 5am December 23 to 5pm December 24, with more than 660 tonnes of seafood, including 130 tonnes of prawns to be sold.

“Seafood is one of those items that cannot be as easily purchased in advance, but there are many seafood retailers who will be taking orders well in advance of Christmas Eve and Christmas Day to ensure customers don’t miss out. We advise shoppers to take advantage of retailer’s pre-order offers, whether for seafood, turkey or hams wherever they can,” Mr Zimmerman said.

ARA ROY MORGAN PRE-CHRISTMAS 2015 SALES PREDICTIONS

November 15 - December 24, 2015

 

2015 Pre-Christmas Sales Growth by State

State

2014 pre-xmas

Actual ($mil)

2015 pre-xmas

Forecast ($mil)

Predicted growth

(%)

NSW

14377

14854

3.3%

Victoria

11174

11688

4.6%

Queensland

9200

9590

4.2%

South Australia

2945

3026

2.7%

Western Australia

5253

5393

2.7%

Tasmania

882

907

2.7%

Northern Territory

489

493

0.8%

Australian Capital Territory

815

824

1.1%

NATIONAL

45137

46775

3.6%

         

(ARA/ROY MORGAN)

 

2015 Pre-Christmas Sales Growth by Category

Category

2014 pre-xmas

Actual ($mil)

2015 pre-xmas

Forecast ($mil)

Predicted growth

(%)

Food

18545

18987

2.4%

Household goods

7839

8144

3.9%

Apparel

3436

3598

4.7%

Department stores

2901

3018

4.0%

Other

6112

6456

5.6%

Hospitality

6305

6573

4.3%

NATIONAL

45137

46775

3.6%

(ARA/ROY MORGAN)

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $284 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.

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