Bosses
The CoSBA
Broadcast
Small Business News
The Week in Review
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In this issue:r
CoSBA welcomes new member RCIA
$50 an hour penalty rates force
Letter-Penalty rates benefit no one
Bruce Billson denies the government
is under pressure to dump 1.5% small
business tax cut
Businesses warn against push to
remove junior pay rates
Australia is on a road to economic
ruin
Listen to needs of small business,
Canberra tells panel
Panel recommends $10 million
penalties for ADJ clauses, boycotts
Union movement still in the dark
age.docx
 International Business Council
Activities/Information
Attachments:
 Union movement still in the dark ages
.docx
 Submission by Office ofthe Australian
Small Bus Commissioner-workplacerelations.pdf
 WBA Breakfast Meeting.pdf
 SCC Networking Evening.pdf
Combined Small Business Alliance of WA Inc.
“Western Australia’s Voice for Small Business”
See the latest News and Updates
CoSBA Website www.cosba.com.au
Download the CoSBA Policy Position Statements
CoSBA welcomes new member - RCIA
CoSBA welcomes another new member, the Restaurant and Caterers Association (RCIA),
which was a former and inaugural member in the formation of CoSBA.
$50 an hour penalty rates force businesses to stay shut this Easter
THE Australian Chamber of Commerce and Industry has launched a national campaign to fight
madcap penalty rates that will allow teenagers to earn $50 an hour to serve tables over the
Easter long weekend.
Dozens of restaurants and small businesses in Sydney will close for the whole long weekend
because it is too -expensive to pay junior staff $350 a day. Those businesses have been asked
to put glossy -posters in the shopfronts -urging the federal government to change penalty
rates.
The posters will read: “We’re sorry we’re closed today. We’d like to be able to serve you. We’d
like to give local people jobs. But the -penalty rates are too high. ”The closures will affect
employees, who will earn nothing this weekend despite being prepared to work at lower
penalty rates. Businesses are not allowed to pay lower rates. Unions across NSW -yesterday
launched vicious campaigns against the ACCI and small business owners who are closing their
stores.
A Facebook page has been started to “out” businesses who are closing and calling for penalty
rates to change. The laws, which mean pay rates at least double across -tomorrow, Saturday,
Sunday and Monday are crippling businesses and workers. Waitress Ali Lyons is not able to
earn money this weekend because the restaurant where she works is not opening. It can't
afford to pay staff the penalty rates. Picture: Adam Yip
ACCI chief executive Kate Carnell said the existing penalty rate arrangement was a “lose-lose”
situation. “Customers lose because the services they want are harder to access, staff lose
because they don’t get the hours many are seeking at work and business proprietors lose
because they get -little benefit from the holiday traffic,’’ Ms Carnell said.
“We are encouraging small retailers and hospitality businesses to put up posters in their
windows explaining to their customers why they are closed or why they are -operating with
reduced staff.” Ms Carnell said businesses were happy to pay incentives for employees to
work -weekend and public holidays, but said the existing penalty rates were outdated.
“We are encouraging small retailers and hospitality businesses to put up posters explaining
why they are closed.” Kate Carnell “A casual retail shop assistant or fast food employee is
paid a minimum of $50.94 an hour on public holidays,’’ Ms Carnell said.
Federal Small Business Minister Bruce Billson is -consulting employers to look at potential
compromises. Mr Billson declined to comment yesterday. A landmark agreement was struck
in South Australia last month which would reduce penalty rates on -weekends in return for
higher base pay rates. Business groups believe there needs to be nationwide uniformity in
the laws. (SOURCE/EXTRACT: TH E DAI LY T E L EG R APH , 2.4.15)
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NEXT MEETINGS: BOARD MEETING
NECA Board Room, Unit 18, 199 Balcatta Road,
BALCATTA
June - TBA
Combined Small Business Alliance of Western Australia Inc. (CoSBA)
PO Box 2237, MIDLAND DC. WA 6936
President: Les Marshall, Vice President: Stephen Knight, Secretary/Treasurer: Terry Bright
Chief Executive Officer: Oliver Moon. Phone: 9250 3549/0408 957 381
CoSBA website: www.cosba.com.au Email: [email protected]
THE CoSBA BROADCAST - 9 April 2015
Page 2
The Nifnex [Business] Review, go to: www.nifnex.com.au
Letter-Penalty rates benefit no one I HAVE worked in the hospitality industry for over eight years and have never expected penalty rates
(‘‘Topics: Serving up blame over penalty rates’’ Herald 7/4). It is no secret that the hospitality industry requires you to work nights,
weekends and public holidays. It’s all a part of the deal, it’s what you’re signing up for.
Why should I be paid $40 an hour on a Sunday evening (plus more on a public holiday), for unskilled labour such as pulling beers,
polishing glasses and cleaning tables? It’s ludicrous to work in the hospitality industry and expect penalty rates when their removal
ultimately benefits the customer.
Although customers will see major benefits such as lower prices and being able to purchase goods and services when it suits them,
employees will also see benefits such as higher customer turnover, resulting in more shift opportunities. The removal of penalty rates
would also provide more employment opportunities for the unemployed, which will help the current unemployment issue in Newcastle.
Taylor Wright, Hamilton South (SOURCE: Newcastle Herald, 7.4.15)
Businesses warn against push to remove junior pay rates
Retailers and restaurant owners have warned a new push by the -national small business advocate to remove junior rates of pay will
increase costs and contribute to youth unemployment. In its submission to the Productivity Commission’s inquiry into the workplace
relations framework, the Office of the Australian Small Business Commissioner urges consideration of a proposal to remove junior pay
rates for those of voting age and older.
It is a position also held by the nation’s largest union — the Shop Distributive and Allied Employees Association — with national
secretary Gerard Dwyer telling The Australian that 18-year-olds received no discount on rent or groceries and so deserved the full adult
wage. Last year, the industrial umpire granted an SDA application to scrap junior rates for 20-year-old retail workers, with the full adult
rate being phased in from July this year.
The ASBC submission urges the Productivity Commission to “consider aligning the adult age in the workplace relations system with the
legal adult age in Australia” rather than “deeming adulthood to commence at 21”. “This will likely reduce the administrative complexity
of the workplace relations system in regard to wages as it will remove the pay levels for 18, 19 and 20-year-olds across the various
modern awards,” the submission says.
Yesterday Small Business Minister Bruce Billson said he would not offer a “running commentary” on various submissions. But
Restaurant & Catering Australia chief executive John Hart said junior rates were “absolutely vital”. “I find it quite unusual ... It would no
doubt put a cost on business,” he said. “The problem is we’ve had a system where junior rates have applied to 21 for a long time now.
This is one of the only concessions we have left.”
Australian Retailers Association executive director Russell Zimmerman said junior rates encouraged employers to take on younger
workers and train them. “If we had 18-year-olds being paid the same as adults you will get a much greater spike in youth
unemployment,” he said. “The insurance companies will always charge a higher fee to, say, an 18, 19 or 20-year-old driver …. These
young adults have not reached maturity and the reason we have staged those rates is so they can progress and work through that
system.” Council of Small Business of Australia head Peter Strong said removing junior rates of pay was counterintuitive.
(SOURCE/EXTRACT, The Australian, 7.4.15)
Bruce Billson denies the government is under pressure to dump 1.5% small business tax cut
Small Business Minister Bruce Billson has played down speculation he and Prime Minister Tony Abbott are under pressure to drop the
government’s proposed 1.5% company tax cut for small businesses from this year’s budget in favour of accelerated depreciation for
small business capital purchases and wages.
Fairfax reports two members of the Coalition parliamentary party with small business experience – Craig Laundy and Bert van Manen –
have told Billson and Abbott an accelerated depreciation rate would have greater benefit to the small business community.
This is one of three tax options presented to Billson’s office in a letter from Peter Strong, executive director of the Council of Small
Business of Australia. In a copy of the letter seen by SmartCompany, COSBOA also nominates an accelerated depreciation rate of 150%
for capital purchases and wages as its preferred reform to tax arrangements for small businesses.
“The 1.5% tax break recently proposed by the Prime Minister whilst welcome will not have a big impact on confidence or business
activity,” Strong said in the letter, which also canvasses other options for government assistance to small business, including support for
employment, training and skills, local economic development and the removal of fringe benefit tax for childcare and health services
offered by employers to their staff. “We believe we need a more substantial policy in the tax area if we are to have a real impact.”
But Billson told SmartCompany what’s going on”. Billson says, as part of a consultation process, the government invited input from the
small business community. “It’s not a question of either or, or one measure versus the other,” he said. (SOURCE/EXTRACT,
SmartCompany. 24.3.15)
Australia is on a road to economic ruin unless politicians can act in national interest, business groups warn
THE political crisis that has engulfed the federal parliament for the past 18 months will lead Australia down a “road of economic
despair”, the nation’s leading industry and business groups have warned in an unprecedented call to action.
With the Reserve Bank considering another interest rate cut today as a result of collapsing iron ore prices and fears the economy was
stalling, the country’s largest employer groups have issued an Warning that Australians’ standard of living was in jeopardy because of a
lack of political courage to engage in reform, the statement petitioned all sides of politics to govern in the tradition of the “reform
giants” — Hawke/Keating and Howard/Costello.
Taking aim at the Abbott government for signalling it would pull back from further reform in the May budget, the group of nine also
criticised Labor for focusing solely on “budget fairness” and cited past senates as contributing to Australia’s economic welfare, rather
THE CoSBA BROADCAST - 9 April 2015
Page 3
than wilfully damaging it.
The joint statement was authored by business groups [that] represent the largest employers in the country and the bulk of Australia’s
economic and industrial activity. “There is no escaping that reform is hard and often unpopular in the short-term, but Australians are
vastly better off for the actions of a previous generation of leaders,” the joint statement said.
“ ... Our message to today’s leaders is simple: governing is not just the responsibility of government, it is the duty of all members of
parliament, and we must stand on the shoulders of reform giants before it is too late.” The group cited the fiscal disaster facing the
government — spiralling debt and deficits — as even more reason for parliament to act. (SOURCE/EXTRACT, The Australian, 7.4.15)
Listen to needs of small business, Canberra tells panel
The federal government wants the FWC's minimum wage panel to pay greater heed this year to impacts on the viability of small
businesses and the axing of the carbon tax, but has declined to recommend a specific increase, while Labor has made its first-ever
submission from Opposition.
The Coalition in its submission says it has provided "additional information" to the panel to update it on developments in the small
business sector, after last year's ruling said that "little direct evidence" had been put to it on the economic circumstances it faced. The
government says higher labour costs imposed by a rise in minimum rates "could present a major constraint" for small businesses in an
environment in which they are struggling to pass on higher costs to consumers.
The government adds that business surveys suggest conditions are challenging in accommodation, food services and retail – all sectors
with a relatively high proportion of award-reliant employers and employees. The government also seeks that after the panel take into
account the July 1 axing of the carbon tax, after it last year refused to do so because it was yet to pass Parliament. (SOURCE/EXTRACT:
Workplace Express, 30.3.15)
Union movement still in the dark ages
Keep it up, bruvvers. The faster and harder union leaders move to expel Martin Ferguson from the ALP, the quicker they expose the
moral bankruptcy within the union movement. This is the final blow to any notion there is a modern union movement in Australia.
(SOURCE/EXTRACT, The Australian, 8.4.15. For full report see attachment: Union movement still in the dark age.docx)
International Business Council Activities/Information
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