Commerce & Industry

V O L U M E 6 - s p r i n g 2 0 1 2 - $ 9 . 5 0 p E r E D i T i O n - $ 3 6 A n n U A L s U B s C r i p T i O n

A U S T R A L I A N C H A M B E R O F C O M M E R C E A N D I N D U S T R Y

AUsTrALiAn BUsinEss in ThE AsiAn CEnTUry

fairness in the fair work system remains elusive

red tape is strangling

australian business

should australia have the best education system?

international

feature

the workplace

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chief executive’s message

the economy Red tape stRangling austRalian business 2

infRastRuctuRe funding - the case foR RefoRm 4

Why austRalia’s RegulatoRy appRoach foR loW-Risk pRoducts needs a fundamental Rethink 7

secuRing success: RefoRms to acceleRate gRoWth and incRease competitiveness in Regional victoRia 8

caRbon spike alaRming 9

features unlocking value in the supply chain thRough collaboRation 10

faiRness Remains elusive folloWing RevieW of faiR WoRk laWs 12

international affairs: australian business in the asian century education the key to unlocking “the asian centuRy” 16

asia RepoRt: a suRpRise packet of ambition that packs a punch 17

fRee tRade essential foR advancing the asian centuRy 18

apec business tRavel caRds suppoRt austRalian business in the asian centuRy 18

histoRic business agReement on indonesian tRade 19

iR Regulation is the missing ingRedient in Recipe foR success in the asian centuRy 20

pRinciples foR a betteR WoRld 21

austRalian climate change leadeRship in Regional chambeR foRum 22

the Japan economic Relationship - lessons fRom 50 successful yeaRs 23

the workplaceshould austRalia have the best education system? 24

We aRe still on the Road toWaRds haRmonised Whs 26

implementing Whs: a nsW RegulatoRs peRspective 27

gReenfields agReements undeR the faiR WoRk act – a genuine Risk oR oppoRtunity? 28

acci networksuccessful acci paRtneRships: the vacc case example 30

thank you to anne bellamy 32

tRain to maintain: engaged and tRained staff means betteR customeR seRvice 33

adia and chaRles stuRt univeRsity paRtneR on upskilling 34

2013 act & Region indigenous expo 34

investing in a secuRity solution? ask an expeRt 37

austRalian chambeRs business congRess 2012 38

Contents

CommerCe & IndustryPublished by the Australian Chamber of Commerce & Industry (ACCI)

ISBN 9780646534091

edItorDr Imogen Reid Manager Membership Services and Marketing P: 03 9668 9950 E: [email protected] www.acci.asn.au

desIgn3 Degrees Marketing 3dm.com.au

No part of this publication may be reproduced in any manner or form without written permission from ACCI.

The views expressed in Commerce & Industry are not necessarily those of the editors or the Australian Chamber of Commerce & Industry.

Education thE KEy to unlocKing thE asian cEntury P.16

EFIC dId morE than FInanCE oUr ContraCt

When we won the contract to be part of the supply chain to the massive Queensland Curtis LNG project, we were delighted. This was an opportunity to further establish our track record and reputation within the oil and gas industry in Australia.

However, like other suppliers, we were required to provide performance bonds in support of our contractual obligations. We also needed to ensure that we had access to additional working capital for other contracts. Yet, as a company without a

long trading history in Australia, we couldn’t get sufficient bonding or bank finance for our needs.

Luckily we knew in which direction to turn. With the support of EFIC’s export working capital guarantee and bonds, we were able to meet the financial requirements and demonstrate our company’s ability to take on such challenging projects.

overcoming financial barriers for exportersVisit efic.gov.au/acci

thEY EnablEd It.

Cory Stevens, Managing Director, Lean Field Developments

EFICAds11_LeanField_ACCI_201207.indd 1 1/05/2012 5:35:45 PM

COMMERCE & INDUSTRY SpRINg 2012 1

The pasT Three monThs haven’T seen The business communiTy geT a fair deal in naTional public affairs.

The attention of the government, Opposition and media turned to debate over personality, character and gender following the resignation of Speaker Peter Slipper in October. This had two impacts for business. It weakened the government’s parliamentary majority to the finest of margins. With that comes an extra dose of uncertainty in national leadership and governance – not ideal for confidence.

Political debate about character also meant less room for debate about productivity, competitiveness, business costs and economic reform – things that matter to business people. The saturation coverage given to political events meant that most people missed the International Monetary Fund downgrading world growth forecasts (saying, worryingly, a one in six chance now exists for a second global recession), and the Australian Bureau of Statistics providing evidence that the labour market is softening, with unemployment and underemployment on an upward trend.

Fortunately, by year’s end wiser heads in both the government and Opposition realised that public and business tolerance for a prolonged parliamentary war about gender politics and name calling was in short supply. And, in a timely move, focus turned to our economic relationship with Asia.

Getting politicians back talking about business issues become one of our tasks. We used ACCI’s first National Red Tape Survey to do just that. The survey of 870 businesses was conducted in August and September 2012. The results weren’t pretty, but have been widely accepted as credible and reflective of real life experience. Through the survey, small and medium business people told us that they are spending at least five hours per week and over $10,000 per year simply on compliance with government regulation and red tape. Seventy five per cent of business owners also said that the problem has become worse in the past two years – at all levels of government: federal, state and local.

Fixing red tape is never going to be easy with the way governments and departments organise their fiefdoms and protect their jurisdiction. ACCI’s survey asked business people to tell us what they thought could be done to ease the problem. Interestingly, many said better communication from government would be a start. Spending evenings searching web sites only to then be told the next day that information is wrong or can’t be relied on simply doubles the frustration and adds dead weight costs to the economy. Unsurprisingly, the survey revealed that business organisations are a much more reliable conveyor of information about how to navigate regulation and comply.

The COAG Business Advisory Forum set up by Prime Minister Gillard with the support of Premiers and Chief Ministers earlier this year allows ACCI and other business voices to put this message on one of the tables that now form our federation, and that’s a step forward. Yet outcomes matter more than process. That’s my expectation.

Another big issue that challenges national business organisations like ACCI is to convince powerful interests to take cost pressure off small and medium businesses so that we lift confidence, growth and jobs. During 2012 we were successful in convincing the Reserve Bank to cut interest rates in order to support weaker parts of the economy. Yet each time the central bank did the right thing, ACCI had to undertake a second

campaign to try to get retail banks to pass on the interest rate cuts in full, in good time and to business customers.

The shifting excuses being offered by the retail banking industry for failing to pass on the full 25 basis point cut in interest rates made by the Reserve Bank in October was a case in point. The inordinate time taken to pass on the rate cut was exacerbated when most banks took even longer to pass it to business customers. When ACCI pointed out that wholesale funding pressures had actually eased, making that a poor excuse for holding back the full rate reduction, the banks trotted out the excuse that there has been an increase in competition. Excuse me? In any other market, including the markets my members do business in, competition forces prices down and shaves margins – not the opposite. And the banks hardly need reminding that since the global financial crisis they have gained domestic market share as some foreign competitors exited the market.

As we turn the calendar over from 2012 to 2013 we look to a federal election year. We can expect politics to remain centre-stage. The silver lining may be, by year’s end, a government of one political persuasion or another with a mandate to govern and manage the economy in its own right.

While an election may break this impasse, there’s no point if an elected government does not have a good plan for economic management. The economy performs best where there is strong certain leadership. Australia is slipping in competitiveness and productivity, especially in Asia.

A Word From our CHIeF eXeCutIVeBy Peter Anderson, chief executive, Acci

2 COMMERCE & INDUSTRY SpRINg 2012

the economy

The inaugural acci naTional red Tape survey has found overwhelming and concerning evidence ThaT business is being sTrangled by red Tape. each business spends aT leasT $10,000 a year and 5 hours per week on red Tape compliance.

The debates about productivity, job creation and the state of the economy, all indicate the need for policy solutions and policy settings that encourage business growth. In principle, regulation and compliance regimes ought to support:

• business growth which also upholds environmental and industrial responsibility

• a focus on outcomes

• regulator’s willingness to work with business to improve regulation making and implementation, with a focus on best practice and customer service

• a whole-of-government approach to measure and track the effectiveness and appropriateness of regulations

Sadly, the survey results indicate that business perceives the opposite as their reality. Badly designed and enforced regulation, and a less-than-desirable culture of engagement and communication appears de rigeur. Constrained growth is the unfortunate outcome.

ACCI undertook its first ever national red tape survey to gauge the extent to which small business feels the impact of regulation in their day-to-day operations. Earlier in the year, the COAG Business Advisory Forum agreed that government and business needed a collaborative

strategy to seriously tackle the issue of red tape and the burden of administrative compliance and reporting required of business.

Only the business community can provide evidence and detail about the time and cost they spend on administrative reporting and compliance activities required by all levels of government. Importantly too, it is only the business community which can describe the impact of this cumulative burden on their business growth and employment decisions.

The survey was distributed through state and territory chambers of commerce and selected industry associations. The 870 respondents clearly represented the small and medium business sector, with the majority employing 20 people or less. In short, this lifeblood of the Australian economy reported that the growth in red tape has not only increased in the last two years, but that it has negatively impacted on their business.

red tApe Is strAnglIng AustrAlIAn busInessBy JoAnne yAtes, senior ProJect mAnAger – coAg reform, Acci

bAdly desIgned And enForCed regulAtIon, And A less-tHAn-desIrAble Culture oF engAgement And CommunICAtIon AppeArs de rIgeur.


the results found:

• 44% of businesses spend between 1 and 5 hours a week complying with government regulatory requirements and 21.6% spend more than 10 hours;

• 72% of business say they are spending more time on red tape and this has increased in the last two years;

• 42.2% estimate they spent more than $10,000 complying with government regulations last year;

• 73% say red tape has a negative impact on their business;

• 54.3% say that complying with government regulations has prevented them from making changes to grow or expand their business.

The most regulated areas are workplace health and safety; conditions of employment; and employing workers.

Reflecting this, the top three agencies which business believes have a moderate to high level of red tape burden are the Australian Tax Office, Fair Work Australia and Centrelink. At a state level, these are local government, safety regulators, and offices of industrial relations.

And business tells us that much of the burden can be alleviated by better communication.

• 64.9% of businesses say that the burden would be reduced if communications about how to comply with regulations improved;

• 61.4% believe we need less regulations;

• 61.0% believe more consultation with business in developing regulations would help. Approximately 40% of businesses rely on their Chamber of Commerce for such information.

Business knows that it is critical to develop a strategic and collaborative approach to solving the red tape challenge with government. This is why we successfully lobbied for the COAG Business Advisory Forum. Improved consultation and a seat at the decision making table is an important step to ensuring not only that current burdens are addressed, but that the rising tide of new regulation is stemmed. Red tape dampens productivity. Less red tape allows business to be flexible, innovative and adaptive. These are critical elements in an uncertain economic environment.

ACCI will encourage governments to use the results of this important inaugural survey to drive improved policy outcomes. We need to release the red tape stranglehold.

red tApe dAmpens produCtIVIty. less red tApe AlloWs busIness to be FleXIble, InnoVAtIVe And AdAptIVe. tHese Are CrItICAl elements In An unCertAIn eConomIC enVIronment.


the economy

infrAsTrUCTUrE fUnDing - ThE CAsE fOr rEfOrM

ausTralia’s ever-increasing infrasTrucTure backlog sends a clear message ThaT currenT policy will noT fund The TransporT infrasTrucTure we need now for a growing populaTion and compeTiTive economy. The paTh To reform lies wiTh indusTry and The communiTy. TogeTher we musT demand fundamenTal reforms To The way we plan, manage, finance and fund our land TransporT neTworks and services

In November 2010, Consult Australia released our thought-leadership report, Transporting Australia’s Future. The framework was a call to action for all governments to back new ways of increasing infrastructure funding mechanisms, to ensure Australia gets the transport infrastructure it needs. With these proposed reforms and the right political leadership, a fully funded, fully

developed national and cities transport system, that includes city metros and intercity train services, could be implemented within two generations.

Following this report, Consult Australia has been pleased to continue to advance our recommendations for transport funding reform, more recently through the Transport Reform Network (TRN) launched in Sydney in August. Over 300 high-profile guests attended the launch of the TRN, established as a wide group of organisations coming together to support industry consensus encouraging changes in the approach to transport infrastructure funding at the highest levels of government. In broad terms, the TRN’s mission is to seek a better way of planning, managing, funding and financing land transport in Australia to ensure it delivers optimum and sustainable economic, social and environmental outcomes for all Australians.

TRN Chair, Dennis Cliche says that the problem lies in the fact that as individuals, we largely feel disempowered to do anything about the congested roads, crowded trains and buses and poorly performing infrastructure.

“The reality is there is no easy solution. Our governments are faced with significant funding challenges and difficult choices,” said Mr Cliche.

By megAn motto, chief executive officer, consult AustrAliA

“tHere’s A reAl urgenCy to get tHIs debAte goIng. We’re At CrIsIs poInt. despIte tHe best IntentIons oF our goVernments And tHeIr trAnsport AgenCIes, our Current solutIons sImply Aren’t delIVerIng tHe system-WIde outComes We WAnt or eXpeCt.”


“We can’t bury our heads in the sand. It’s time we had an open, honest conversation in the community. We need to get informed, ask questions and consider all the options.”

Australia is taking this critical first step but we are not alone. Leaders from around the world have acknowledged the need for reform in their own countries and have embarked on a similar journey. Initiatives in the United States, Europe, the United Kingdom, China and Canada are all seeking to develop a more sustainable approach to infrastructure funding in the face of ever-dwindling revenue to government.

The city of Toronto is in the midst of trying to kick-start a public conversation around taxes, tolls and fees. Wide-spread community buy-in is critical to this reform agenda - without public support the province will be unlikely to implement the new taxes that are required to fund the plan. Increasing congestion, cost-of-living, rising fuel prices, and associated health impacts will support a more ambitious policy agenda by governments.

To fuel this public conversation, the TRN has set up a new website, which will be a ‘go to’ resource for the latest news, reports and studies from here and overseas on transport reform, as well as a blog site for individuals to express their

views.

“A lot of credible work has been done, both here and overseas, by governments, academics and the private sector on alterative models for financing and funding transport,” said Mr Cliche.

“What’s missing is a public forum where those ideas can be discussed and tested. That’s what we want to provide.

“There’s a real urgency to get this debate going. We’re at crisis point. Despite the best intentions of our governments and their transport agencies, our current solutions simply aren’t delivering the system-wide outcomes we want or expect.”

The TRN coalition is supported by a dedicated secretariat funded through committee members’ contributions and is a natural next step to support long-term policy change. In addition to Consult Australia being a member of the Network, fellow ACCI member the Bus Industry Confederation is also a member alongside Consult Australia member firms including: AECOM; Aurecon; GHD; pitt&sherry; SMEC; and Sinclair Knight Merz (SKM). Other key industry stakeholders such as Infrastructure Partnerships Australia (IPA); Australian Local Government Association (ALGA); Abigroup; Thiess; and Transport for NSW are also part of the Network.

As we look at opportunities to drive national productivity, reform of infrastructure funding is critical. Members of the Australian Chamber of Commerce and Industry are encouraged to join Consult Australia and the Bus Industry Confederation as members of the TRN and advance this critical issue.

Join the campaign today by visiting transportreform.org and spread the word through Twitter (@transportreform).

About Consult Australia Consult Australia is an industry association member of ACCI. It is the association for professional services firms within the built and natural environment; influencing policy, creating value and promoting excellence.


the economy


Why AUsTrALiA’s rEgULATOry ApprOACh fOr LOW-risk prODUCTs nEEDs A fUnDAMEnTAL rEThink

Those close To my indusTry – The hygiene, cosmeTic and specialTy producTs indusTry – know full well The frusTraTion felT by businesses in our secTor when Trying To geT new producTs inTo The hands of ausTralian consumers and indusTry.

And the primary source of this frustration? Australian over-regulation that is often out-of-step with that of other advanced and equally safety-conscious nations, presenting a significant barrier to new product introduction.

As fragmented and complex as the Australian regulatory system for chemical-based products is, with more than 140 pieces of legislation across the nation, this is by no means its fundamental weakness.

Instead the real problems stem from a lack of recognition that chemical-based products, much like our daily actions as we risk the commute to work by bus, bike or car – all come with varying levels of risk.

Inability to properly adjust for risk, often embedded deeply within the DNA of many of our regulatory agencies, remains the root cause of over-regulation in Australia.

For example, did you know that the shampoo, handwash or moisturisers you used this morning are regulated under the same rules and requirements that apply to hazardous industrial chemicals?

Or did you know that some specific-purpose products, like the sunscreens we

all rely on to protect us from harmful sun damage, are often regulated in much the same way as a pharmaceutical drug that you take by mouth? Even toilet cleaners are regulated by the medicines regulator in this country!

And, even more startling, were you aware that according to the chemical regulator, NICNAS, one of the nation’s favourite breakfast cereals “…steamed rolled oats would therefore meet the definition of a new industrial chemical”? The letter from the regulator notifying a business that they’d need to provide data supporting the cosmetic use of this ingredient holds pride of place in the annals of boneheaded bureaucracy.

Low-risk cosmetics like shampoos and moisturisers are not industrial chemicals. Nor are sunscreens or toilet cleaning products pharmaceutical drugs. It’s time to put this front-and-centre of what has become a drawn-out regulatory reform program, which commenced optimistically in 2008 with a thorough Productivity Commission study of chemicals regulation, but has since become stuck in depressing cycle of review-and-report, free of the most critical step – effective implementation.

The concept that the level of regulation should reflect the actual level of risk is a ‘Productivity 101’ idea. What is bemusing is that this idea should be so elusive for Australian regulators, while being embraced so wholeheartedly ‘across the ditch’ in New Zealand.

New Zealand has pragmatically geared its regulatory approach to make the most of its modest resources. It strategically targets its regulatory attention at hazardous chemicals. Not every chemical. And certainly not steamed rolled oats. This provides clarity and focus for both

the regulator and the regulated industry, helping to promote greater compliance and safety.

New Zealand also avoids ‘re-inventing the wheel’ by unilaterally recognising the science-based assessments of the advanced regulatory approval systems of the EU and the USA. And does this especially for lower-risk chemicals and product categories. Such an approach calibrates the level of regulatory intervention to the realities of low-risk products, like most household cleaning products.

For global products like cosmetics, this makes the utmost sense. The NZ system, like that of the expanding ASEAN region, has mirrored the European Union’s Cosmetics Directive. And via this alignment to the world’s largest market for cosmetics, NZ consumers often get quicker access to wider range of new products than occurs here.

A Better Regulation Ministerial Partnership Review of the Australian chemicals regulator, NICNAS, is currently underway. Looking seriously at the NZ approach has to be a priority for any credible review, if productivity and safety are serious local policy concerns.

About Accord Accord is a national industry association member of ACCI. It is the national industry association for the hygiene, cosmetic and specialty products industry.

Accord’s detailed positions for reform for cosmetics and other low-risk products can be found at www.accord.asn.au

By Bronwyn cAPAnnA, executive director, Accord - hygiene, cosmetic And sPeciAlty Products industry

neW ZeAlAnd HAs prAgmAtICAlly geAred Its regulAtory ApproACH to mAke tHe most oF Its modest resourCes.


the economy

sECUring sUCCEss: rEfOrMs TO ACCELErATE grOWTh AnD inCrEAsE COMpETiTiVEnEss in rEgiOnAL ViCTOriA

The influence of technological change, an ageing population, the global economic cycle and ongoing structural change, continue to affect Victoria – and its regions.

While these forces have not eroded the strong gains in regional jobs, investment and export growth over the past decade, they have hit some regions, industries and communities hard. Left unchecked, they stand to threaten the speed of recovery from the current downturn, as well as longer term growth.

While much of the growth in regional populations and economic activity has been concentrated in major cities and large hub regions, the same growth has brought new pressures: rising land and house prices, competing development views, tiring infrastructure, congestion and social stress. These problems need to be resolved, not left to deteriorate further.

Similarly, even though the pattern of regional growth has seen some smaller regional cities and towns fall behind, they should not be ignored – particularly if existing economic resources are underutilised.

It is therefore our strong view that there is a clear case for regional policy that supports the efforts of communities to achieve sustainable, long-term prosperity.

In the lead up to the 2012 VECCI Regional Business Convention, which was held in Geelong on 19 October, business owners and relevant stakeholders came together at workshops held across the state to

discuss their views on how each region can contribute to Victoria’s growth over the coming years and the actions needed in order to achieve it.

These views were presented by workshop delegates to attendees at the Regional Business Convention, which was also attended by the Premier, the Hon. Ted Baillieu MP and Opposition Leader, the Hon. Daniel Andrews MP.

VECCI also used the Regional Business Convention to release our policy paper, titled Securing success: Reforms to accelerate regional growth and increase competitiveness.

The policy paper takes a close look at how the regional policy framework has changed, and makes a series of recommendations to achieve growth and prosperity through facilitating regional infrastructure, investing in human capital, nurturing regional innovation, and advancing regional leadership, connectivity and collaboration.

Strong population growth in major regional centres has attracted highly-skilled and adaptive workforces that have underpinned local employment trends. The challenge for all of us now is to build on this momentum and continue to attract new talent to our regions that will help unlock new comparative advantages.

Now is the time to undertake a detailed analysis of existing and foreseeable skills gaps and examine more closely the capacity to promote skills transferability and mobility across different industries,

By mArk stone, chief executive, victoriAn emPloyers chAmBer of commerce And industry

despiTe The currenT difficulT economic environmenT, vicToria’s regions have performed well in recenT years. There are many challenges ahead, buT even more opporTuniTies. iT is Time To realise These opporTuniTies Through new parTnerships, policies, commiTmenT and endeavour. vicToria’s fuTure depends on iT.


CArBOn spikE COsTs

occupations and geographic regional areas.

The drivers of low economic participation by young people in a number of our regions also need to be better understood and responded to by state-wide skill formation strategies.

The dividend from investing in human capital in our regions should not be underestimated – studies consistently show the best performing regions are those endowed with adequate levels of human capital.

To support this investment, it’s important that we also invest in appropriate infrastructure to unlock new business opportunities in markets at home and abroad.

Many of Victoria’s regions are experiencing growth pains associated with their expanding populations, and existing forms of infrastructure are beginning to feel the strain.

Pushing infrastructure projects forward requires clear road maps based on agreed priorities, needs assessments and stakeholder buy-in, which is why a coherent strategy that integrates investment projects and spreads their benefits throughout our regions is so important.

We must also continue to invest in innovation and turn the knowledge we have into new products, services and markets. Innovation is a longer-term process, so it is important that we do not let the current difficult environment deter new energy, ideas and risk-taking from flourishing in our regions.

One of the key ingredients in the change process that leads to regional prosperity includes local communities working in partnership with different levels of government – local, state and federal. The three Cs – conversation, connection and capacity - are vital to getting more people thinking, planning and acting regionally.

Cooperative arrangements should be established for key Victorian regions to support their structural adjustment transitional and economic diversification. This would include all three tiers of government in partnership with business, unions and the wider community.

The outcome of the Regional Business Convention suggests that reform in these key areas has great potential to provide region-wide benefits in both the short and longer terms, and visibly lift regional economic activity, employment prospects, welfare and liveability.

About VECCI VECCI is a Chamber member of ACCI. It is the peak business body in Victoria, informing and servicing more than 15,000 members, customers and clients around the State. www.vecci.org.au

The firsT official daTa on The price impacT of The carbon Tax is very concerning.

The consumer price index released by the Australian Bureau of Statistics reveals an alarming rise in direct energy costs. Electricity prices spiked 15.3 per cent in the September quarter alone and gas prices surged 14.2 per cent.

Such a sharp rise in only three months is deeply concerning for business. ACCI has repeatedly argued that the carbon tax imposes a very real burden on business and reduces Australia’s competitiveness, and these figures underline that point.

Furthermore, the data calls into question

the accuracy of Treasury modelling that estimated the carbon tax will increase electricity prices for consumers by 10 per cent over a period of five years. That analysis clearly needs to be revisited.

Households and businesses are now wearing the cost of a major policy failure that undermines productivity and living standards at the same time as failing to deliver any tangible environmental benefits.

ACCI remains resolutely opposed to the introduction of a carbon tax and believes it should be repealed.

Looking back over recent months, we’ve seen the government abandon a promised tax cut to business, impose a carbon tax that pushes energy prices up, and in the Mid-Year Economic and Fiscal

outlook, imposed a burden on larger business of $8.3 Billion and hit mall and medium enterprises via a tax clampdown worth $2.3 billion.

The costs just keep adding up and they are negative for productivity and business competitiveness.

By greg evAns, chief economist And director economics And industry Policy, Acci

HouseHolds And busInesses Are noW WeArIng tHe Cost oF A mAjor polICy FAIlure tHAt undermInes produCtIVIty And lIVIng stAndArds At tHe sAme tIme As FAIlIng to delIVer Any tAngIble enVIronmentAl beneFIts.

tHe dIVIdend From InVestIng In HumAn CApItAl In our regIons sHould not be underestImAted – studIes ConsIstently sHoW tHe best perFormIng regIons Are tHose endoWed WItH AdequAte leVels oF HumAn CApItAl.


feAtures

When the Melbourne-based polyethylene and polymer manufacturer Qenos needed to dramatically increase deliveries to enable pipemaker Iplex to meet the terms of a significant new contract, the companies faced a major challenge.

A fourfold increase in daily supplies, from two containers to seven or eight containers, was required at short notice. Deliveries were being made by road from Qenos to the Iplex plant at Thurgoona near Albury – but this was no longer feasible, practical or cost-effective at the higher volumes.

Qenos collaborated with its logistics provider, Toll Holdings, to develop a strategy based on moving containers by rail between Melbourne and Albury.

This approach took more than one million kilometres of truck transport off the roads and onto the rail network, saving fuel and reducing greenhouse gas emissions.

This case study, which features PACIA members Qenos and Toll, is a prime example of manufacturers and their supply chain partners improving resource efficiency, reducing environmental impacts, risks and costs, creating market advantage and strengthening relationships.

These are some of the major benefits outlined by PACIA in its recently

launched 8 Step Guide to Supply Chain Sustainability.

The guide is a practical and interactive online resource designed to help companies identify and take advantage of sustainable business opportunities through their supply chains.

It is based on the concepts of life cycle thinking and sharing value with suppliers, service providers and customers in a highly competitive and carbon-constrained business environment.

PACIA Chief Executive Margaret Donnan said: “It is a significant and forward-looking document because it recognises that the strength of inextricably linked supply chains is crucial to the strength of Australian manufacturing – and all this at a time when manufacturing is under severe pressure from the high Australian dollar, high labour costs and increasing energy prices.

“It encourages innovation and resource efficiency, and positions member companies to meet customers’ evolving demands.”

The guide aims to help PACIA’s member companies generate business value and cut costs by collaborating on specific projects with supply chain partners.

Ms Donnan said it was important that

unloCkIng VAlue In tHe supply

CHAIn tHrougH CollAborAtIon

By tony heselev, PlAstics And chemicAls industries AssociAtion

for many manufacTurers, The key To business susTainabiliTy may be found aT Their ‘doorsTep’ – Their supply chain. a new 8 sTep guide, developed by The plasTics and chemicals indusTries associaTion (pacia), is a blueprinT for manufacTuring and oTher secTors To creaTe value and reduce cosTs by working collaboraTively wiTh suppliers, service providers and cusTomers.


businesses looked beyond the often adversarial world of procurement, contracts and margins towards cooperative projects that could create long-term business opportunities.

She said the guide encouraged PACIA members to turn strong relationships in the supply chain into flourishing business partnerships, and realise the potential of greater collaboration.

As Stephen Bell, General Manager Commercial of Qenos, put it: “The guide is a great way to build collaboration, and it can shake out opportunities to deliver cash throughout the supply chain.”

An online portal, available via the PACIA website (www.pacia.org.au), houses the guide. Links to supporting resources including workshops, case studies, supply chain mapping and life cycle thinking, will be gradually added. The first in a series of workshops was held in September.

The guide, developed with the support of Sustainability Victoria and the assistance of Qenos, is a further demonstration of PACIA’s leadership and innovation in helping the chemicals and plastics sectors deliver sustainable practices and outcomes.

It builds on and complements PACIA’s Sustainability Leadership Framework, which was introduced four years ago. The framework is designed to help companies respond, adapt and transform to remain successful, competitive and profitable.

The launch of the 8 Step Guide to Supply Chain Sustainability marks the beginning of PACIA’s second action strategy on sustainability. It focuses on supply chains because PACIA believes that is the next area of major opportunities for industry.

Victoria’s Minister for Manufacturing, Exports and Trade, the Hon. Richard Dalla-Riva, launched the guide at Qenos in August. More than 70 people from member companies, supply chain partners, community groups and government attended.

PACIA represents the Australian chemistry industry, the third largest manufacturing sector in Australia with annual turnover of $33.6 billion. The sector directly employs about 83,000 people, with wages and salaries of $4.9 billion. Every chemical manufacturing job created inside a plant creates five jobs outside the plant.

The chemistry industry – comprising

the chemicals and plastics sectors – represents 10 per cent of Australian manufacturing.

It is at the headwaters of most supply chains in the economy, providing building blocks into most other sectors – from mining to health, defence and aerospace – via products, technologies and services.

“We are arguably the most diverse and broad industry in our reach across Australian society, environment and industry,” Ms Donnan said.

“We work with product and supply chains to deliver solutions to major challenges including climate change, water shortages, population increases and resource constraints. So we are uniquely placed to provide the solutions needed for a sustainable future.”

For more information on the 8 Step Guide to Supply Chain Sustainability, contact Krista Imberger, Director Sustainability, Plastics and Chemicals Industries Association, email [email protected], phone (03) 9611 5415 or see www.pacia.org.au/reports/8StepGuide

About PACIA PACIA is an industry association member of ACCI. It is the pre-eminent national body representing Australia’s $33.6bn plastics and chemicals industry. Members comprise of a range of companies positioned across the entire value chain. www.pacia.org.au

PACIA Chief Executive, Margaret Donnan with Qenos CEO Jonathan Clancy, The Hon. Richard Dalla-Riva MLC and Qenos Operations Manager, Andrew Lake

tHIs CAse study, WHICH FeAtures pACIA members qenos And toll, Is A prIme eXAmple oF mAnuFACturers And tHeIr supply CHAIn pArtners ImproVIng resourCe eFFICIenCy, reduCIng enVIronmentAl ImpACts, rIsks And Costs, CreAtIng mArket AdVAntAge And strengtHenIng relAtIonsHIps.

tHe guIde, deVeloped WItH tHe support oF sustAInAbIlIty VICtorIA And tHe AssIstAnCe oF qenos, Is A FurtHer demonstrAtIon oF pACIA’s leAdersHIp And InnoVAtIon In HelpIng tHe CHemICAls And plAstICs seCtors de


feAtures

fAirnEss rEMAins iLLUsiVE fOLLOWing rEViEW Of fAir WOrk LAWs

On 20 December 2011, the Minister for Employment and Workplace Relations, Hon. Bill Shorten MP, announced the details of a review of the Act, including the terms of reference. The Review was conducted by a Panel comprising the Reserve Bank Board Member Dr John Edwards, former Federal Court Judge, the Honourable Michael Moore and noted legal and workplace relations academic Professor Emeritus Ron McCallum AO.

ACCI lodged a detailed evidence-based submission to the Review Panel and followed this up with supplementary written and oral submissions. ACCI submissions follows extensive engagement with ACCI network members, employers (small, medium and large firms representing all major sectors of the economy) and members of the wider IR/HR/legal community since 2008/09. ACCI’s submission outlined major problem areas employers have experienced since the laws commenced in July 2009 and makes over 75 specific recommendations to amend the laws to ensure that they meet the government’s commitments to industry as contained in its key 2007 Forward with Fairness policy platform, which underpins the Act.

The evidence-based submission builds

upon ACCI’s most recent policy Blueprint dedicated to the burgeoning services sector “Services: the New Economic Paradigm” launched in 2011, which clearly highlighted that service sector firms need to be able to react in a more dynamic way compared to other industries. Inflexible labour rules, which operates on a “one size fits all” basis or a 9am to 5pm, Monday to Friday paradigm, do not reflect the evolution of the sector and specific needs of firms operating in the services sector. It also doesn’t reflect the needs and capacities of the majority of Australian business employers (89.5%) which employs less than 20 employees.

Panel’s rePort

On 2 August 2012, the Federal Minister for Employment and Workplace Relations, Hon. Bill Shorten MP, released the report of the Panel, “Towards more productive and equitable workplaces: An evaluation of the Fair Work legislation” (the Report). The Report is over 300 pages in length and makes 53 recommendations in total. The Panel’s major finding is “that the effects of the Fair Work legislation has been broadly consistent with the objects set out in s.3 of the FW Act. We also find that the legislation is operating broadly as intended.”

By dAniel mAmmone, director workPlAce Policy, Acci

The governmenT was required To conducT a posT implemenTaTion review of The Fair Work act 2009, as a resulT of The Then prime minisTer, hon. kevin rudd mp, granTing an exempTion To The fair work bill 2008 from office of besT pracTice regulaTion requiremenTs.


A number of key beneficial findings and recommendations included:

• Making Individual Flexibility Arrangements (IFAs) more workable by extending the duration from 28 days to 90 days, easing the application of the better off overall test to include off-setting monetary benefits against non-financial benefits and making it unlawful for unions to water down the number of terms and conditions an IFA can modify (whilst a step in the right direction, ACCI called for IFAs to be extended to at least two years in duration);

• Clarifying that under the National Employment Standard (NES) annual leave loading (an entitlement from modern awards) is not payable on termination unless a modern award directs it is payable (ACCI recommended this as a relatively uncontroversial and common sense technical amendment following a ruling by the Fair Work Ombudsman);

• Limiting the number of national public holidays for the purposes of paying penalty rates under the NES to 11 days;

• Agreeing with employers in the vital construction and resources industry sectors that “there is significant risk that some bargaining practices and outcomes associated with greenfield agreements potentially threaten future investment in major projects in Australia”;

• Agreeing with employers that protected strike action can only commence if a union has majority

support of the workforce. This was intended to reverse a significant decision of JJ Richards & Sons v TWU which confirmed that unions can effectively “strike first and bargain later”.

• Recommending changes to the unfair dismissal system (ie. costs to apply in a broader range of circumstances) to minimise unmeritorious claims (whilst welcome, ACCI called for much more substantive changes to turn the tide on the rise of “go-away money” paid by small business);

• Clarifying that the new adverse action provisions, which reverses the onus of proof on the employer, does not extend to an examination of an employer’s apparent unlawful “unconscious reasons” (yes, you read this correctly - this is not a typo). The High Court’s recent decision in The Board of Bendigo Regional Institute of Technical and Further Education v Barclay, overturned the earlier and erroneous Federal Court decision, and has effectively implemented this on behalf of the Government. The High Court ruled that to accept the union and Government’s propositions would “destroy the balance between employers and employees ... and create an impossible burden on employers accused of taking adverse action to search the minds of the employees whose conduct is said to have caused the contravention.”. One High Court judge went so far as to label the Government’s intervention before the High Court in support of the Freudian-like approach as “partisan”. Whilst this has been clarified by the

intervening High Court decision, ACCI had called for more substantive changes to the adverse action provisions which has become a new province of go away money;

• Agreeing with ACCI’s recommendation to re-name the Tribunal in a way which indicates its significance as a quasi-judicial Tribunal distinguishable from the Fair Work Ombudsman;

• Rejecting many proposals by unions and interest groups which would potentially exacerbate the negative impact already experienced by employers.

However, the Panel made a number of significant recommendations, which, if given effect to, would make a bad situation worse. This includes giving Fair Work Australia the power to arbitrate when unions veto greenfield agreements, preventing valuable and significant projects in the resources sector from commencing. Requiring employers to notify the Fair Work Ombudsman when making an Individual Flexibility Arrangement with employees, changing the rules on strike action and payments for employees on strike, and giving notice to unions (via notification to Fair Work Australia) when an employer and non-union workforce decide to bargain for an enterprise agreement.

Many areas employers highlighted as imposing new constraints on business, costs or inflexibilities were unfortunately found by the Panel to be actual improvements to the IR system. For example, the Panel favoured changes which reduced former agreement making options to only allow collective agreements subject to good faith bargaining requirements (those requirements being recently described by a Federal Court Judge as similar to the exchange between Brian and the street merchant in Monty Python’s Life of Brian). It also favoured changes which now force employers to bargain with the union, contrary to international treaty obligations requiring “voluntary” bargaining.

ACCI also provided the Panel with extracts from the trade unions innocently titled “Fair Work Bargaining Kit”, which is a tactical guide for trade unions to leverage off the newfound capacities under the Fair Work laws. The introduction to the Kit states:

“This kit provides advice on how to maximise the opportunities afforded by good faith bargaining and how to avoid some of the obvious traps. In using the Act, unions are reminded that their actions have the potential to affect the development of legal precedent on the new provisions. The new laws must be used strategically, so as to ensure that


feAtures

beneficial provisions are interpreted broadly by FWA (and the courts) and enable us to secure maximum benefits from the new laws.”

The Kit summarises the union’s views of the various pros and cons of the Fair Work laws as follows:

“The FW Act expands the opportunities for unions to:

• bargain with employers who have not bargained before;

• bring recalcitrant employers to the bargaining table, and apply pressure upon them to reach an agreement;

• bargain more effectively, by gaining access to company information;

• ensure greater protection for delegates in the course of bargaining; and

• boost recruitment, by showing potential members that unions can achieve important bargaining outcomes for them.

The changed legal framework for bargaining also creates some challenges, including:

• the obligation on unions to bargain in good faith;

• the requirement, in some cases, for unions to bargain alongside other unions and/or alongside non-union bargaining representatives;

• dealing with employers who merely ‘go through the motions’ of bargaining with no intention of reaching agreement;

• securing the inclusion of important clauses in agreements (such as a DSP that results in arbitration);

• responding to cases in which employers simply bypass bargaining by making direct offers to employees;

• the danger that beneficial provisions in the new laws will be interpreted narrowly, or against our interests, by FWA and the courts; and

• the risk that effective industrial action will be stopped by FWA.”

Flick through the 90 page document and you will be hard pressed to see any mention on how the Fair Work bargaining framework can enhance firm productivity, efficiencies or achieve a win-win situation between employers and employees. The Kit is replete with model clauses, “template” letters and forms, in order to achieve what the introductory note sets out is the unions’ main objectives. It goes without saying that if unions hold the view that the Fair Work laws are designed to empower them to put “pressure” upon so-called “recalcitrant” employers,

something is seriously wrong with the Fair Work system and the mindset of unions who have new found rights and powers under the Fair Work laws, particularly when unions only cover 13% of the private sector. The majority of the private sector firms, particularly SMEs, do not engage in collective bargaining and the majority of employees are directly engaged on individual contracts of employment supplemented by a safety net of awards and statutory minimum standards. The working model which underpins the Fair Work system ignores this important reality.

In releasing the Report, the Minister indicated that the Panel “has also found the Act has not had a negative impact on productivity. I’m particularly pleased by this finding and I remain optimistic that it will be acknowledged and widely reported in the business papers.” To the Government’s credit, it has sought to bolster workplace productivity growth through multiple policy levers, including but not limited to education and training initiatives, a new workplace research center and funding employees and employers to build capacity and knowledge. ACCI has welcomed these initiatives. However, it must be recalled that the Government did not promise that its proposed Fair Work system would not have a negative impact on productivity. On the contrary, it made numerous promises that its Fair Work IR system, particularly its new collective bargaining system, would “promote productivity”, “drive productivity”, “shift the focus of negotiations towards boosting productivity”, and be “less bound by regulation and red tape and is designed to have a positive impact on labour productivity”. The Government indicated in 2008 that the post-implementation review of the new system would be an important means of assessing the effectiveness of the new bargaining system. The Panel’s Report notes that on this important score the Fair Work laws have actually not improved productivity levels and stated that productivity growth has been “disappointing” under the Fair Work system and that it is “concerned that productivity growth has slowed”. The Panel ultimately recommended non-legislative changes and encouraged the Fair Work institutions “play a more active role in encouraging productivity awareness and best practice” to address this. The findings by the Panel that productivity has not improved under the Fair Work system is reiterated in the Australian Competition & Consumer Commission’s (ACCC) latest report on the stevedoring industry, which found that both higher nominal unit labour costs increased by 7.5% during 2011-2012 and labour productivity significantly fell for

to tHe goVernment’s CredIt, It HAs sougHt to bolster WorkplACe produCtIVIty groWtH tHrougH multIple polICy leVers, InCludIng but not lImIted to eduCAtIon And trAInIng InItIAtIVes, A neW WorkplACe reseArCH Center And FundIng employees And employers to buIld CApACIty And knoWledge.


the first time since 1998-99. The ACCC report also notes that industrial activity has increased since 2008, and this has been coupled with unofficial reports of “go slow” strategies. The ACCC warned that “if industrial disputes become more frequent and widespread in Australian stevedoring, this could undermine investment in additional capacity and greater competition”. It concluded that it could “put at risk the gains previously made in establishing a more productive stevedoring service and undermine the benefits of additional capacity and greater competition”.

Unfortunately, the Report was essentially viewed by the business community as a Pollyanna view of the IR system which failed to properly grapple with the overwhelming evidence and united voice of the business community. It is notable that absent was any employer submission to the Panel which called for the status quo or support the Government’s longstanding view that it has “got the balance right”. Whilst a voluminous tome on IR history may make for interesting reading by IR practitioners and academics, the Report displays an alarming indifference to the Australian economy’s need for better workplace regulation to support productivity, competitiveness and a softening labour market. The most

disappointed will be small business employers, particularly as there was no recommendation to address the increases to labour costs under so called “modern awards” in key services industries.

The Panel missed an important opportunity to recommend meaningful changes, with only a handful of useful recommendations inadequate to restore much needed balance to the IR system. The Report is a bitter disappointment to the vast majority of Australian SME business owners who run family businesses, have a real face, have mortgaged the family home and create valuable employment opportunities and build wealth for all Australians.

Post sCrIPt

On 30 October, the Government introduced into the federal Parliament amendments to the Act, in response to the Panel’s Report as part of a “first tranche” response.

Whilst the first tranche contained welcome amendments to discourage unmeritorious unfair dismissal applications, it is disappointing that the Government is delaying the introduction of more important recommendations or give effect to findings made by the Panel to restore much needed balance to the

system. These include amendments to encourage greenfield agreement making, stop the capacity for unions to take industrial action before bargaining has commenced, and proposals to encourage Individual Flexibility Arrangement (IFAs) making which have flat-lined according to research commissioned by Fair Work Australia with a survey indicating that only 6% had used an IFA. The technical amendments, like the majority of the Panel’s recommendations, are inadequate to address the existing problems employers are experiencing with the Fair Work laws and will be more relevant to IR practitioners than SMEs.

Whilst the Government has to date not ruled in or out other recommendations in the report, the business community expects that policy makers will quickly move beyond consultations with stakeholders and act more swiftly in the national interest. Beyond the Panel’s own Report there remains a range of issues which, if left unattended, will slowly continue to chip away at the labour force, the economy and the fairness employers rightly expect from a modern and durable IR system. By simply not addressing them will not make the problems go away.

WHIlst tHe FIrst trAnCHe ContAIned WelCome Amendments to dIsCourAge unmerItorIous unFAIr dIsmIssAl ApplICAtIons, It Is dIsAppoIntIng tHAt tHe goVernment Is delAyIng tHe IntroduCtIon oF more ImportAnt reCommendAtIons or gIVe eFFeCt to FIndIngs mAde by tHe pAnel to restore muCH needed bAlAnCe to tHe system.

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internAtionAl AffAirs: AustrAliAn Business in the AsiAn century

By Jenny lAmBert, director emPloyment, educAtion And trAining, Acci

The ausTralian chamber of commerce and indusTry (acci), ausTralia’s peak business group, is backing The holisTic approach The whiTe paper on ausTralia in The asian cenTury Takes To educaTion.

Education and training has a huge part to play in preparing Australia to take full advantage of the opportunities that lie ahead.

ACCI welcomes the integrated strategic approach outlined in the White Paper that focusses on improving Asian literacy in schools and tertiary institutions, and then broadening out by helping business and the public sector to develop more cultural understanding, and Asian-relevant skills.

But we need to be mindful that these things will not be easy to achieve.

ACCI calls on the States and Territories to support this vision, right from the outset, and to commit to collectively identify the implementation strategy on how the goals outlined in the White Paper can be achieved.

Governments must address education funding, the quality of teaching including rewards for good performance and action against poor teaching, and how we can achieve the number of Asian language

EDUCATiOn ThE kEy TO UnLOCking “ThE AsiAn CEnTUry”


teachers needed to meet the goals.

Most importantly, we need new and innovative thinking and action as to how we can engage students to want to learn about Asia and to study the languages of our region.

Recent evidence shows that despite significant encouragement and financial support for programs aiming to increase that involvement, the disappointing lack of strong take-up points to more fundamental barriers to success, and ones which we have to overcome. We

can lead a horse to water but we can’t make it drink. So it is with students – we need them to want to learn.

Turning vision into reality in the education and training system can often be the most difficult part.

The ausTralia in The asia cenTury reporT and governmenT response is expecTed To go down well wiTh The privaTe secTor if governmenTs, The opposiTion and The finance secTor follow Through on iTs ambiTion wiTh consisTenT and uncompromised prioriTy on compeTiTiveness, Trade finance, asian language and culTural learning.

The report needs to recast political debate in our country and not just be a one day or one issue wonder. It sets the right ambition and points to more than enough economic, trade and social pathways for regional prosperity to keep both government and Opposition away from the gender wars or partisan politics from now until the next election if they have enough will and discipline.

In some cases it states the bleeding obvious, but with a populist minority parliament the bleeding obvious needs

to be restated to get policy and spending priorities back on track.

The focus on not just Asian literacy in our schools, VET system, and universities but cultural understanding and strong links with education and training institutions in Asia is very important and strongly supported by ACCI. However, we should also reach beyond the institutions to educate the business community generally to improve their understanding of the opportunities that are on their doorstep and improve their capability to take advantage of them.

With only a couple of exceptions, the government response is a surprise packet of good intentions and practical first measures. The exceptions are a failure to have saved the money to now afford what needs to be done, and lack of willingness to turn away from domestic policy errors that have eaten away at industry competitiveness like labour market re-regulation and the carbon tax.

And the report won’t meet its ambition unless the Australian banks lift their willingness to provide export finance to small and medium business on better terms.

The most welcome aspect of the report

and the government’s initial response is the vision of deeper Asian engagement it invites the community at large to capture, and not just with China. The private sector won’t find the report daunting because both individual companies as well as organisations like chambers of commerce are already facilitating trade and building Asian links.

Australia must not to have an insular view of itself. We must maintain a competitive advantage in all available aspects of our economy if we are to maintain our current living standards and opportunities. We should embrace change and not be afraid that the future may not be a reflection of the past. The opportunity presented in this paper is for us to consider the implications arising from our neighbourhood becoming wealthy, better educated and well fed.

AsIA report: A surprIse pACket oF AmbItIon tHAt pACks A punCHBy Peter Anderson, chief executive, Acci

WItH only A Couple oF eXCeptIons, tHe goVernment response Is A surprIse pACket oF good IntentIons And prACtICAl FIrst meAsures.

goVernments must Address eduCAtIon FundIng, tHe quAlIty oF teACHIng InCludIng reWArds For good perFormAnCe And ACtIon AgAInst poor teACHIng, And HoW We CAn ACHIeVe tHe number oF AsIAn lAnguAge teACHers needed to meet tHe goAls.



The ausTralian chamber of commerce and indusTry (acci), applauds The focus on seeking improved Trading and invesTmenT arrangemenTs, which underpins The proposed approach in The whiTe paper on ausTralia in The asian cenTury.

Australia is currently engaged on over eight live bilateral and regional negotiations aimed at improving liberalised trade and investment within Asia, and concluding the most advanced of these, particularly Japan and Korea, is essential to provide early progress against the Government and business aspirations for the Asian Century

Many of these Free Trade Agreements (FTAs) involve the same countries and so it is important we make sure they build upon each other and not inadvertently make the international trading environment more complex for business in our region. There is a need to ensure a consistent approach to the business features of these overlapping FTA’s such as the rules of origin and the dispute resolution systems.

Such Agreements also concentrate on the Asia-Pacific part of Asia, with only two of the eight agreements under negotiation addressing our westward interests. The regional meeting of the Indian Ocean Rim Association for Regional Cooperation was held in October and ACCI is calling for an Indian Ocean Rim FTA to be part of the government’s aspiration for the period when Australia will be the Chair of this organisation starting in 2013.

Similarly we hope that with the input of the Business Partnership Group, the Indonesia-Australia Comprehensive Economic Partnership negotiations will be swift with some early pilot programmes put in place to assist in building momentum against the Asian Century roadmap.

Of late there has been a concerning public debate about the nature of foreign investment in Australia. There should be no question, we need foreign investment and it should be welcomed with open arms. What we are looking for in our FTA negotiations is reciprocity. That is, for Australian investors and companies to be able to invest in other countries with the same ease as foreign investors can in Australia.

The government’s announcements, with respect to refocussed and targeted programmes for our Export Finance Corporation (EFIC), Enterprise Connect and Export Market Development Grants will assist smaller Australian companies to engage in our region and identify new market opportunities.

Free trAde essentIAl For AdVAnCIng tHe AsIAn CenturyBy BryAn clArk, director trAde And internAtionAl AffAirs, Acci

ApEC BUsinEss TrAVEL CArDs sUppOrT AUsTrALiAn BUsinEss in ThEAsiAn CEnTUryThe APEC Business Travel Card scheme is an important initiative that commenced permanent operations in March 1999. Developed in response to the need for business people to gain streamlined entry to other economies, it contributes to APEC’s goal of free and open trade within the Asia-Pacific region.

ACCI’s Director of Trade and International Affairs, Bryan Clark, said: “The long awaited Stage 2 of the APEC Business Travel Card Scheme has been launched will involve a process where the Australian Chamber of Commerce and Industry, through the State based Chambers of Commerce will provide

supporting services to the Department of Immigration and businesses seeking to apply for an APEC Business Travel Card (ABTC).”

“ACCI will be an ‘approved body’ under the scheme and will provide certifying services that a business entity, or Australian Peak Body, is genuinely engaged in international trade and investment within the APEC region.”

“Australian businesses will be relieved that the scheme to assist with fast tracking visa applications and border crossing for business travellers is now open to applications following the discussions with industry to improve the scheme. The scheme will assist

Australian businesses to participate in the aspirations set out in the Governments Asian Century paper.”

Every business entity that seeks to utilise Australia’s APEC Business Travel Card for its employees must establish, through Business Certification, that it is engaged in international trade or investment in the APEC region. ACCI’s state member chambers provide this Business Certification service.

For more information on the card, including applying for the card, please visit the Department of Immigration’s website: http://www.immi.gov.au/skilled/business/apec/ or ACCI www.acci.asn.au.


The ausTralian chamber of commerce and indusTry (acci) and The ausTralia indonesia business council (aibc) have successfully reached a joinT agreemenT wiTh The indonesian business communiTy on common economic and Trade direcTions ThaT should be pursued by governmenTs of boTh counTries.

In a unique step sanctioning private sector input prior to government-to-government economic partnership talks in 2013, Prime Minister Gillard and President Yudhoyono had mandated the Indonesian Chamber of Commerce and Industry (KADIN) and ACCI, together with the bilateral business councils from both countries, to jointly scope key issues by October 31st.

Speaking at a joint press conference and signing ceremony in Jakarta with KADIN chief negotiator Maxi Gunawan, ACCI Chief Executive Peter Anderson said:

“After three rounds of negotiations here and in Sydney, and countless hours of analysis and consultation with local business sectors, I am delighted that a substantive joint position paper has been settled.”

“It is a unique and historical step that

business groups help frame government talks, but it’s a step taken with confidence because of good will and a growing sense of common economic destiny in Asia.”

“The business talks succeeded because both sides believe our economies are complementary with untapped potential for growth through supply chain partnerships. The fact that private sector bodies like ACCI and KADIN and our bilateral councils have done this work makes it more likely that an economic partnership agreement, if reached by governments, will have direct relevance to investment, trade and jobs.”

Mr. Anderson said that while business groups had scoped key principles and made substantive recommendations, they also committed to ongoing dialogue with local industry on thorny trade issues that have been past obstacles to fully

opening trade and commerce between the nations.

Indonesia is already Australia’s eleventh largest export destination. Its thirst for infrastructure, food and energy security, know-how, skills capability, foreign investment, people movement and consumer goods holds great prospect for two way trade that can take it into the top ten of our trading partners.

Mr Anderson added, “I said at the Jakarta press conference that an Australian business serious about exporting will, in coming years, pass over Indonesia at its peril. There might be other opportunities in faraway shores, but our closest Asian neighbour is Indonesia and it is almost 50% of ASEAN’s GDP and has 260 million people, a young population and a growing middle class. If that isn’t food for thought, I don’t know what is.”

HIstorIC busIness Agreement on IndonesIAn trAde

ACCI Chief Executive, Peter Anderson (second from left) with Business Partnership Group members

Business Partnership Group, IA-CEPA, Sydney 2012



ir rEgULATiOn is ThE Missing ingrEDiEnT in rECipE fOr sUCCEss in ThE AsiAn CEnTUry

The release of The ausTralia in The asian cenTury whiTe paper was Timely following The reTurn of a successful ausTralian governmenT led delegaTion To myanmar.

ACCI was represented by Steve Knott, Chief Executive of Australian Mines and Metals Association, in high level meetings to better understand both the opportunities and challenges in Myanmar for Australians seeking to do business. Whilst the White Paper rightly highlights important policy areas to kick start policy dialogue in how we as a nation can be more competitive and continue to attract foreign investment, the White Paper fails to address the consequences of our re-regulated IR system. There is only passing reference to workplace regulation in the White Paper and no real discourse or assessment as to how excessive labour regulation acts as an impediment to Australian business, particularly the burgeoning services industry sector, as highlighted in ACCI’s Services Industries Blueprint and our submission to the Fair Work Review.

Flexible labour regulation is a critical aspect of getting policy settings correct, as it has the ability to make business more confident, agile, and responsive to demand in the domestic and international marketplace for goods and services. This is obviously not limited to our potential success in Asia and is equally important with other trading regions. The business community expects that the starting point to addressing the problems with the Fair Work Act would be to act on the government’s own independent panel’s report which made a number of recommendations and findings to restore balance to the Fair Work system.

As the head of Toyota Australia, Mr Yasuda, declared in an Australian interview in February 2012, the Fair Work system did not give him the flexibility to build a globally competitive industry and he had to persuade Toyota’s international management to keep the Australian operations, but only if there was an overhaul of IR practices.

The laudable objectives of the White Paper and success that government and industry are seeking by 2025 are significantly constrained without substantive changes to key areas of the existing Australian IR system.


As tHe HeAd oF toyotA AustrAlIA, mr yAsudA, deClAred In An AustrAlIAn InterVIeW In FebruAry 2012, tHe FAIr Work system dId not gIVe HIm tHe FleXIbIlIty to buIld A globAlly CompetItIVe Industry And He HAd to persuAde toyotA’s InternAtIonAl mAnAgement to keep tHe AustrAlIAn operAtIons, but only IF tHere WAs An oVerHAul oF Ir prACtICes.


pACifiC grOWTh AnD EMpLOyMEnT prOjECT LAUnChED

The pacific growTh and employmenT projecT (pgep) is a joinT iniTiaTive of The acci and acTu under The auspices of an hisToric parTnership agreemenT reached beTween The ausTralian governmenT and The inTernaTional labour organisaTion which seeks To provide decenT work and susTainable employmenT opporTuniTies in The pacific.

The PGEP is intended to improve employment opportunities for sustainable and productive employment growth in the tourism and transport sectors in Papua New Guinea and Vanuatu. The PGEP management committee comprising of senior officers from the Australian Chamber of Commerce and Industry and the Australian Council of Trade Unions has appointed two project officers to implement the project activities.

A formal launch of the PGEP will take place at the Australian Parliament in

Canberra in November 2012. It will be an important gathering of business leaders, trade unions, government and other stakeholders who have a commercial or related footprint in the Pacific Islands. Stay tuned for updates in the next edition of Commerce & Industry.


ACCI Chief Executive, Peter Anderson; ACTU Research Officer, Amy Schwebel; ACTU President, Ged Kearney; ACCI Director Workplace Policy, Daniel Mammone; ANF Senior Industrial Officer and Project Officer, Nick Blake and Consultant and Project Officer, Peter Glynn

tHe pgep Is Intended to ImproVe employment opportunItIes For sustAInAble And produCtIVe employment groWtH In tHe tourIsm And trAnsport seCtors In pApuA neW guIneA And VAnuAtu.



AustrAlIAn ClImAte CHAnge leAdersHIp In regIonAl CHAmber Forum

The ausTralian chamber of commerce movemenT Took a leadership role in building regional supporT for economically balanced responses To climaTe change aT The 26Th confederaTion of asia-pacific conference held in kaThmandu, nepal This ocTober.

ACCI successfully secured support from the Confederation of Asia-Pacific Chambers of Commerce and Industry

(CACCI) members, which include peak Chambers from the Asian continent and the Pacific, for policy principles which urge regional collaboration between the private sector and governments on new investments in technology to combat climate change, target measures to make industry more sustainable in industrializing and developing countries, and in information sharing where contractual and property rights permit.

These policy directions are set out in a regional policy paper submitted and presented to CACCI members by ACCI. The paper ‘Flexible Responses to Environmental Uncertainty and Infrastructure’, is available on the ACCI website.

“Regional and global action that increases business sustainability improves the doing of business and helps combat climate change as part of concerted collective action. Regional and global action is a better approach than countries like Australia going alone with ineffective carbon taxes or expensive renewable energy targets. Regional and global action reduces the risk of Australia becoming less competitive by going alone” ACCI Chief Executive Peter Anderson said.

ACCI is pleased CACCI has accepted principles that urge collective action by governments and information sharing amongst policy makers and the private sector.

Former President, FNCCI, Pradeep Kumar Shrestha, President Emeritus, CACCI, K. K. Modi, Vice President, CACCI, Tariq Sayeed, Director General, CACCI, David Liu and former Director General, CACCI, Webster Kang

By dr imogen reid, mAnAger memBershiP services And mArketing, Acci


ThE jApAn ECOnOMiC rELATiOnship - LEssOns frOM 50 sUCCEssfUL yEArs

Prime Minister of Australia the Hon Julia Gillard MPAJBCC Chairman Sir Rod Eddington

The ausTralian chamber of commerce and indusTry (acci) sTrongly supporTed The 50Th anniversary of The ausTralian-japan business council and iTs counTerparT (jabcc) aT The ausTralia-japan joinT business conference, held in sydney during ocTober.

“The importance of the Japan economic relationship to Australia and the region risks being undervalued because of China’s rise and stronger growth rates. Australian business doesn’t choose between Japan and China, nor does it need to. Both are extraordinary markets for inward investment,” ACCI Chief Executive, Peter Anderson said.

“Learning lessons from the Japan relationship helps doing business elsewhere in north Asia, especially China. In the 70s and 80s Japanese investment in Australia’s tourism industry hit community roadblocks. Now that’s passe. In the 80s and 90s Australian exporters needed to better understand

culture before the commerce. Now that’s a given - as proven by our agriculture and aquaculture industries. These lessons should be applied more broadly to Asian investment.” Mr Anderson continued.

Japanese investment in Australia and in south-east Asia provides great opportunities for partnership and supply chain value-adding with the public and private sectors, especially in large scale infrastructure. Doing business in Japan means doing business in a mature market, one that respects the relationship and one that is deep and strong.

Mr Anderson further noted “The trade relationship has also been more than a capable of withstanding external shocks,

whether natural disasters or conflict over social and environmental issues.”

“Even without a formal free trade agreement with Japan, market access - with a few exceptions - has been two way. ACCI encourages both our governments to seek resolution to the FTA talks, and remain open minded about Japanese participation in the Trans Pacific Partnership.”

The conference was attended by the Prime Minister of Australia, the Premier of New South Wales and senior business figures from both nations. ACCI’s Paul Gallagher and AJBCC Chairman Sir Rod Eddington provided exceptional leadership for the event.

“tHe trAde relAtIonsHIp HAs Also been more tHAn A CApAble oF WItHstAndIng eXternAl sHoCks, WHetHer nAturAl dIsAsters or ConFlICt oVer soCIAl And enVIronmentAl Issues.”


the workPlAce

over The lasT few years, The ausTralian governmenT, led by a prime minisTer who is clearly passionaTe abouT educaTion and Training, has placed a sTrong emphasis on The big educaTion and Training announcemenT. This announcemenT is ofTen accompanied, wiTh much fanfare, by budgeTary allocaTions in The billions of dollars.

Education and Training is largely uncontested policy space. Supporting an increase in funding for schools is “motherhood and apple pie” material – widely supported by stakeholders and the community. In vocational education and training (VET), business needs a well-educated and skilled workforce and as such, both unions and employers support the investment of public funding to enable the delivery of accredited, portable, nationally recognised training.

However, such spending is not without controversy, and three projects readily come to mind. Firstly, the $16.2 billion Building Education Revolution (BER) project was part of the economic stimulus package post –GFC. Although it delivered much needed school infrastructure, the project extended spend well beyond the threat of recession and attracted much criticism due to the inefficient overspend on many buildings at the local level.

Secondly, the $2.5 billion allocated from 2008 onwards for Trade Training Centres in Schools. For some schools and local businesses this investment has been unquestionably successful, but for

others, the Centres are underutilised or are delivering training that is of poor quality or not needed by the labour market. Unfortunately, this large amount of government money was only allocated to the “hardware” without any allocation to the quality and suitability of the training that is conducted within it. The Commonwealth required the States to cover the operational costs. This remains a lost opportunity for the Federal Government to use the funding to incentivise and work with the states to improve vocational training at school.

Thirdly, the Digital Education Revolution program announced as part of the

2007 Election aimed to deliver over 800,000 computers has had its share of implementation problems, with no initial allocation for improving computer network support resources and teacher training to cope with the implementation, again expecting the States to pick up the tab. Over four years into the program, it is still not clear that all of the objectives of the program have been met.

These three examples provide an illustration of one of the key challenges in education and training funding – how to achieve efficient and effective outcomes in a federated system, where schools and VET are largely State responsibilities, but with the Commonwealth holding the purse strings.

Contrast the difficulties of both Schools and VET funding with Higher Education. The Commonwealth has virtually taken over full responsibility of higher education, and has implemented an uncapped demand driven system in line with the recommendations of the Bradley Review, together with a national regulator in the Tertiary Education Quality and Standards Agency (TEQSA). Although issues such

By Jenny lAmBert, director emPloyment, educAtion And trAining, Acci

eduCAtIon And trAInIng Is lArgely unContested polICy spACe. supportIng An InCreAse In FundIng For sCHools Is “motHerHood And Apple pIe” mAterIAl – WIdely supported by stAkeHolders And tHe CommunIty.

sHould AustrAlIA HAVe tHe best eduCAtIon system?


as the appropriateness of the targets set for university graduates, the quantum of the spend and the job readiness of the graduates are all subjects of legitimate debate, the ability for the Australian Government to pull the policy levers to effect change is irrefutable.

Meanwhile, schools and VET policy remain stuck in the mire of COAG negotiations, where the change of political players and falling State and Territory revenues often affect the stance taken in the negotiations. Although there are plenty of current examples, one which is of much public interest at the moment is schools funding.

Prime Minister, Julia Gillard, on 3 September 2012 announced the Government’s response to the Gonski review on school funding, and committed the Government to pursue with the States through COAG to spend over $5 billion additional dollars on school education. The speech set a target for Australia to be in the top five countries in terms of language, literacy and numeracy.

The announcement was widely welcomed by the public and school stakeholders, although those with a more realistic frame of reference questioned how such a significant increase could be afforded, and what the proposed contributions of the cash-poor States will be. The speech also marked a continuation of a trend for the Commonwealth to announce reform to areas of policy in which they do not have constitutional responsibility, and in advance of a negotiated agreement with the States and Territories to implement the announced reform. It will now be up to COAG to finalise a deal to deliver the funding increase.

The school funding announcement opens up questions as to whether the existing spend is being delivered in the most efficient and effective way. Not unlike the Trade Training Centres, it is not much use spending billions of additional dollars if it is applied to an inefficient base. Certainly, the recent evidence of those

pilot schools that have had additional funds spent on them strongly supports the notion that more money delivers better outcomes. However, will the same be true if that investment was made across the entire system. For example, spending money in a small number of schools attracts the best leadership, teachers and resources to those schools. Does it follow that Australia has sufficient numbers of high quality school leaders, teachers and resources to achieve a universal improvement? Will $5 billion be sufficient, and how do we overcome the industrial resistance by the Unions who are against pay for performance?

As we head towards the next Federal Election, the significant budgetary issues relating to education and training loom large. There is no doubt that ACCI and its member organisations place a high value on a strong education and training system, and will remain supportive of many of the initiatives at State and Federal level that have been implemented in the last few years. However, there is a broader context at play, given the focus on budget surpluses, where there will need to be a balance between financial responsibility and effective outcomes. To inform this debate, it is useful and apt for an Association representing business, to borrow from one of the most popular management theoretical approaches of recent times, the Resource Based View (RBV), which has elements not unlike the more well-known SWOT analysis.

In summary, the RBV suggests that a company should examine its resources (tradeable) and capabilities (non-tradeable) and identify those that are: rare, valuable, and difficult if not impossible to imitate or substitute with something else. For many companies this might be its brand value, distribution channel (such as a branch network), unique history, position in the market, or the skills of its team built up over a long time. Those resources that meet these tests are strategic capabilities that can deliver a sustainable competitive advantage.

In education and training, Australia has

very strong resources and capabilities that compare favourably against its international competitors – a relatively wealthy population, a long history of placing a high value on education, including compulsory schooling, a structured approach to competency based vocational training to name but a few. However, what in our schools and VET systems can other ambitious countries not imitate, or is not made more complex by the federated system or an entrenched approach to workplace relations within state education and VET systems?

Setting a goal such as being in the top five in the world for literacy and numeracy is certainly admirable, but how well placed are we to achieve it against countries where there is no division of responsibility? For example, comparisons with Finland and Hong Kong are often quoted, but can Australia hope to implement the systems they have, or are the barriers too high, or most importantly is there the political will to overcome the significant inefficiencies and often ineffectiveness of money spent in education and training due to the way it is delivered?

In short, is it realistic to aim for our schooling and VET system to be Australia’s strategic capability, or is it appropriate given the structural weaknesses to seek to provide the best possible system within the existing constraints? Of course there is a third option, that the negotiations about schools and VET within COAG rise above the existing argy-bargy and seek to establish an efficient and effective division of responsibilities that is truly capable of delivering Australia a competitive advantage in the global marketplace. This will also involve a united approach to how work is organised within schools and VET, to recognise and remunerate effective educators and alter work practices that inhibit internationally competitive educational outcomes.

This is the challenge of education and training policy in Australia for the future.

tHe sCHool FundIng AnnounCement opens up questIons As to WHetHer tHe eXIstIng spend Is beIng delIVered In tHe most eFFICIent And eFFeCtIVe WAy. not unlIke tHe trAde trAInIng Centres, It Is not muCH use spendIng bIllIons oF AddItIonAl dollArs IF It Is ApplIed to An IneFFICIent bAse.


the workPlAce

acci as ausTralia’s largesT and mosT represenTaTive, peak employer body, has Taken a leadership role in occupaTional healTh and safeTy (ohs) and now in The newly forged model work healTh and safeTy regulaTory framework They remain fronT and cenTre.

Six jurisdictions are working with this legislation with around 58% of employees covered. Those businesses that work across borders are already enjoying some consistency.

The model legislation is intended to reflect modern workplaces and work approaches and, in many respects, it achieves this; however there is still room for improvement. There is also an opportunity to rethink how work is done and how WHS is communicated. It may be timely to revamp how some of the messages are being delivered: from a focus on the adversarial to a more proactive, positive approach.

Building better, safer workplaces means everyone, all individuals working together and sharing responsibilities. It also means flexible approaches that take into account the diverse nature of work and workplaces.

Large and small businesses can create improved, more productive and sustainable practices with flexibility and methods appropriate for their size and operations. For instance, the way information is communicated effectively in an organisation of 20 people is different from the way it’s communicated in one with 300, hence work practices must suit the resources available as well as the scale and type of activity.

Making workplaces safer starts with workplace culture and attitude, not with more regulation. We believe the legislative framework should be simple and it should be supported by specific guidance that allows for compliance but also provides the specific advice needed

for WHS to become acceptable standard practice.

Decisions are made every day taking into account the risks - WHS is about managing risk. As such, it should be incorporated into daily decision-making. Like any other aspect of corporate governance, getting this balance right is even more important in these tough times. Due diligence on WHS is now required in the same way as any other organisational decision: be it on finance, manufacturing, marketing or growth.

A recent survey conducted by ACCI (ACCI Red Tape Survey 2012 now available on the ACCI website) rated compliance on WHS as a major area of red tape. It also showed that rather than rely on regulators, businesses looked to their employer associations for advice and guidance.

ACCI’s network, including Master Builders, has an important role in providing constructive guidance. Rather than more regulation and enforcement, what is needed is effective communication with all parties sharing the responsibilities.

Recent advertisements have done well in raising awareness of the importance of WHS. But they haven’t taken the essential step of empowering everyone involved. Instead of focusing on the negative and the “we will catch you out”, the focus should be on what should be done. Advertisements should show how well consultation works, show people making good decisions, and show how apprentices can be empowered to respond and be pro-active. Let’s lead the way forward!

The tripartite process in developing the new WHS framework is a good basis for the collaborative way forward, even with the inevitable bumps and diversions.

ACCI is well placed to build on the model legislation towards successful and sustainable WHS practice in business. Master Builders Australia too, is well placed to support its members in the steps and hurdles along the way.

The challenge now is for all parties involved: regulators, workers, employers, Unions, to be constructive, to communicate and to provide positive paths for all to follow.

About Master Builders Australia MBA is a national industry association member of ACCI. It represents the Australian building and construction industry and promotes the views and interests of its membership. MBA has representation in every state and territory in Australia.

By John dArcy, ohs mAnAger, mAster Builders AustrAliA

We Are stIll on tHe roAd toWArds HArmonIsed WHs

lArge And smAll busInesses CAn CreAte ImproVed, more produCtIVe And sustAInAble prACtICes WItH FleXIbIlIty And metHods ApproprIAte For tHeIr sIZe And operAtIons.


on 1 january 2012, new work healTh and safeTy (whs) laws were inTroduced in nsw. The new laws were several years in developmenT and were a resulT of an iniTiaTive of The council of ausTralian governmenTs (coag). The new laws replace The occupaTional healTh and safeTy legislaTion in nsw.

It is important to note that there is not one, over-riding piece of Federal legislation governing work health and safety throughout Australia. Each jurisdiction will enact their own version of the Model legislation consistent with their legal framework and parliamentary input. For example, NSW has enacted its own Act governing work health and safety, but it is virtually identical to the model Act. South Australia has also just had WHS legislation based on the same model legislation, pass through both houses of parliament with some amendments.

WorkCover NSW, along with ACCI, are members of Safe Work Australia. The jurisdictions, industry and unions have played a critical role in the drafting of the model WHS Act, Regulation and Codes of Practice and continue to do so.

All states and territories and the commonwealth as well as employer associations and unions have worked to ensure the new laws provide greater consistency, certainty and clarity across Australia.

The tripartite process, despite its challenges, is a good way to consider WHS as it impacts on every operation, every business – large or small in Australia.

NSW was one of the first jurisdictions to pass their WHS legislation. NSW worked hard to raise awareness, working closely with its stakeholders and communicated messages to assist with the changes – constructive engagement and constructive compliance. The comments below are from John Watson, General Manager, Work Health & Safety Division, WorkCover NSW.

The main changes in the new laws for NSW are:

• If you are an employer, sole trader, association, partnership, corporation or volunteer organisation with paid workers, you will be classed as a person conducting a business or undertaking (PCBU).

• If you are an employee, volunteer, labour hire staff, apprentice, work experience student, trainee, outworker, sub-contractor or contractor, working for a PCBU you will be classed as a worker.

• If you are a supplier, designer, manufacturer, importer, or manager or controller of a workplace, you will have specific duties in addition to those as a PCBU.

• Health and safety representatives (HSRs) will replace OHS representatives and play a key role in consultation.

• If you work in – or even just visit – a workplace, you will have WHS rights and duties.

Your industry may also be affected by specific changes outlined in the WHS Regulation 2011.

In the lead up to 1 January 2012, WorkCover established the Work Health and Safety Legislation Implementation Program to ensure WorkCover and its stakeholders were ready to operate under the new regulatory framework. The priorities of this program were to ensure:

• WorkCover had effective and targeted communication strategies

• Materials to support NSW businesses were accessible and available to all businesses and industries

• WorkCover had the structure, procedures, systems and trained personnel in place to support the new work health and safety laws

During 2011 WorkCover ran presentations across NSW, hosted a range of webinars and presented at an extenswive number of forums on the new WHS laws and what impact the laws would have for business, industry and workers. WorkCover also provided grants totalling $5.4 million to employer, employee and not for profit groups to enable them to implement a range of programs to prepare their stakeholders for changes in work health and safety. These programs included workshops, training courses, publications and educational visits. All the material provided by WorkCover to assist these programs is freely available on the WorkCover website.

WorkCover is committed to ensuring that the transition to the new WHS legislation is as seamless as possible for businesses and industry. Transitional arrangements have been put in place where there are new or significantly changed requirements to the work health and safety laws. WorkCover staff are always on hand to provide advice and assistance and we strongly believe that the best outcomes for businesses and industry are achieved when we work together in partnership.

NSW is in the early stages of adopting the new work health and safety laws and WorkCover will be monitoring feedback and commentary from business and industry in order to provide assistance where needed.

For information, advice and regular updates visit www.workcover.nsw.gov.au

By John wAtson, generAl mAnAger, work heAlth & sAfety division, workcover nsw.

iMpLEMEnTing Whs: A nsW rEgULATOrs pErspECTiVE


the workPlAce

This noTe examines some key issues concerning greenfields agreemenTs, including The legal requiremenTs for The making and approval of such an agreemenT, and The Typical legal issues ThaT arise if The approval of an agreemenT is conTesTed.

Present requIrements for makIng greenfIelds agreements and tyPICal legal Issues

A greenfields agreement is made between an employer and one or more unions in relation to a genuine new enterprise (such as a new business venture or project) before the employees who would be covered by the agreement are employed.

Part 2-4 of Chapter 4 of the Act provides that a greenfields agreement can be made between an employer or two or more employers and one or more relevant unions if the conditions set out below are met and the general approval requirements contained in the Act are met. A greenfields agreement is made when it has been signed by each employer and each relevant employee organisation that the agreement is expressed to cover.

the agreement relates to a “genuIne new enterPrIse” that the emPloyer Is establIshIng or ProPosIng to establIsh

A contest to whether an agreement covers a genuine new enterprise typically concerns two separate arguments – whether the project or undertaking is sufficiently established or proposed to be established, and whether the enterprise is “new” or simply an extension of an existing enterprise already carried on by the employer.

Demonstrating that a new enterprise is established, or a proposal for a new enterprise is sufficiently advanced, is a low legal hurdle. For example, where

a greenfields agreement is made in the context of a bid for tender, it is not necessary for a prospective supplier to be awarded the tender to satisfy this condition, even if the enterprise will not commence operation if the supplier does not win the tender.1

The more difficult issue is whether the enterprise is new. The Explanatory Memorandum to the Fair Work Bill indicates that Parliament intended the expression “genuine new enterprise” to be given a broad meaning, such that distinct projects or undertakings are to be considered a new enterprise even where the employer operates other similar projects or undertakings. Fair Work Australia has, on a number of occasions, approved greenfields agreements in relation to enterprises which are the same or similar to the employer’s existing enterprise, including franchises which are, by their nature, identical or very similar to already established franchises.

the emPloyer has not emPloyed emPloyees neCessary for the normal ConduCt of the enterPrIse

This condition will be established even where the employer has employed persons on other projects who may end up performing work covered by the

greenfields agreement, so long as they are not yet employed to perform work for the new enterprise that has been established.2 It will also be satisfied where workers engaged through a labour hire company on a project or undertaking are employed to work on the same project or undertaking after a greenfields agreement is made.3

the unIons Covered by the agreement are entItled to rePresent the IndustrIal Interests of a majorIty of emPloyees PerformIng work under the agreement

Whether a union is (or a group of unions are) entitled to represent the industrial interests of a majority of employees is also a question of fact, which will turn on the nature of the work performed and the scope of the relevant union rules.

It Is In the PublIC Interest to aPProve the agreement

Whether the approval of an agreement is in the public interest involves a discretionary assessment by Fair Work Australia at the time of the application for approval. Matters which have been found to support the conclusion that approval of the agreement is in the public interest include that the agreement minimises the potential for industrial disputation; it provides certainty of employment terms and conditions; is consistent with greenfields agreements made for other parts of the construction; provides terms and conditions equal to or better than the relevant modern award; and would assist with completion of the project on time and within financial targets.4

By michAel tAmvAkologos, PArtner, Ashurst - AustrAliA

greenFIelds Agreements under tHe FAIr Work ACt – A genuIne rIsk or opportunIty?

employers sHould prepAre tHorougHly prIor to InVItIng negotIAtIons by ConsIderIng tHe terms And CondItIons to be InCluded In tHe Agreement


reCommendatIons for emPloyers

In light of the above, an employer can maximise the opportunities presented by the greenfields agreement provisions, and avoid or minimise the risks identified above by taking the following steps:

• Consider whether making a greenfields agreement is the best commercial option taking into account the possible alternative labour arrangements.

• Consider precisely the nature of the work to be done under the agreement, which will then have a flow on consequence in relation to which union(s) can represent a majority of employees who will work under the agreement and who the employer can make a greenfields agreement with.

• Ensure that sufficient preparatory steps have been taken to establish a genuine new enterprise or to show

that a genuine new enterprise is proposed to be established.

• Employers should prepare thoroughly prior to inviting negotiations by considering the terms and conditions to be included in the agreement; likely union claims for terms and conditions; how the timing of negotiations will play out in the broader commercial environment, such as a request for tender or construction timeline.

• Prepare approval documentation (a statutory declaration will be required). It may also be necessary to provide evidence in support of an application for approval, which addresses each of the conditions for approval referred to above.

• Seek legal advice as necessary to ensure that any application for approval meets the requirements of the legislation and will withstand any

challenge from a union or unions not covered by the greenfields agreement.

Ashurst Australia acted for Thiess Pty Ltd and Balfour Beatty Pty Ltd in Thiess Pty Ltd; Balfour Beatty Pty Ltd; John Holland Pty Ltd [2011] FWA 6904. This note is a truncated version of a client alert available at www.ashurst.com.

Michael Tamvakologos, partner and Justine Giuliani, lawyer, are Melbourne based employment law and industrial relations practitioners at Ashurst Australia.

1 See Thiess Pty Ltd; Balfour Beatty Pty Ltd; John Holland Pty Ltd [2011] FWA 6904 at [14].2 McConnell Dowell Constructors Pty Ltd [2010] FWAA 9486 at [6].3 HP Distribution Proprietary Limited Greenfields Agreement 2011 [2012] FWAFB 6302.4 Abigroup Contractors Pty Ltd [2012] FWA 3745 at [67].

If the answer is YES, whether you are an employer or a worker, you must be registered with CoINVEST, the administrator of portable long service leave for Victoria’s construction workers.

ArE You pArt of thE conStructIon InduStrY?

www.coinvest.com.aufor all other enquiries contact our Membership Services team on 03 9664 7666

To see whether you or your workers should be registered with CoINVEST visit www.coinvest.com.au for a full list of all work occupations covered

EMploYErS:As an employer you are required to register your business and make regular contributions to CoINVEST on behalf of your workers in order for them to receive their long service leave entitlements.

WorkErS:As a worker you must register with CoINVEST to receive your entitlement to paid long service leave. It doesn’t matter how often you change jobs within the industry or how many employers you work for, CoINVEST maintains an up-to-date record of your employment history.

CoINVEST covers workers and apprentices employed on commercial, industrial or

domestic projects. All full-time, casual or part-time workers, even self-employed and labour hire workers are covered by the scheme. Anyone and everyone performing work in the construction industry must be registered.

trAdES covErEd IncludE:

• Building Trades Work

• Metal Trades Construction Work

• Electrical Contracting Work

In some instances work may be covered by the scheme even though you are not working on a construction site.


Acci network

few businesses succeed by going iT alone. business people know ThaT successful operaTions involve sTraTegic parTnerships.

Similarly with business organisations. The Australian Chamber of Commerce and Industry (ACCI) is the nation’s peak council of business organisations, with members drawn from Chambers of Commerce and also industry specific bodies. By affiliating with ACCI, a strategic partnership is created. Combining each organisation’s strength forms a formidable business voice.

Membership between the Victorian Automobile Chamber of Commerce (VACC) and ACCI is a good example of how strategic partnerships add value and benefit business, not just business organisations. VACC, with its intimate knowledge of the retail motor industry, plays a leadership role in bringing small business issues, red tape concerns, apprenticeship and skill issues and industrial issues to the fore. Given many of these matters are regulated by the national government, affiliation with ACCI make it possible for VACC to get its interests heard in Canberra, not just Victoria.

The strategic partnership also means that VACC gets a say on the big cross-cutting economic issues of the day. These include tax reform, superannuation policy, wage setting, interest rates and competition policy. ACCI’s work in these areas fills gaps that industry-specific bodies find hard to resource.

small busIness

The need to champion small and medium businesses is VACC’s and ACCI’s life

blood. Small business is the cornerstone of the economy and jobs. Respecting this is vital in the face of growing market influence from large corporates and cost pressure from governments and suppliers. VACC has worked with ACCI over the past two years in landmark ways that support national small business advocacy. For example, VACC used its seat around ACCI’s General Council to urge ACCI to commission independent work on the impact of a carbon tax on energy intensive small businesses. ACCI did this because federal Treasury costed impacts on large trade exposed industries, but not small businesses. The result: uncontradicted independent research by global consultancy Castalia which showed, over time, a big hit on profitability, given the fine margins and lack of control over fixed costs.

busIness leadershIP

VACC is an industry leader, shaping not only the retail motor industry but also using its partnership with ACCI to

advance the sector’s interests on whole of industry issues. Over the past decade, ACCI’s members have recognised VACC leaders on its General Council, Board and Policy Committees. Just last year, retired VACC manager Kevin Redfern was the first industry association executive in Australia to receive ACCI’s Service Award, honouring exceptional achievement over 20 years. And VACC executive, Leyla Yilmaz, is currently deputy chairman of ACCI’s national Workplace Policy Committee – following the footsteps of former chairman, VACC President and ACCI board member Owen Brown.

By Peter Anderson, chief executive, Acci

tHe VACC CAse eXAmple

SucceSSful accI PartnerShIPS

VACC’s InVolVement In ACCI’s surVey Work brougHt tHe reserVe bAnk And FederAl treAsury reAl tIme InFormAtIon About trAdIng CondItIons – Well beFore oFFICIAl Abs dAtA.

ACCI Director Workplace Policy, Daniel Mammone and VACC General Manager Industrial Relations, OHS and Training, Leyla Yilmaz


eConomIC stImulus

When the global financial crisis hit, VACC was out of the blocks working with ACCI to develop ways the government could stimulate the economy in the wake of declining confidence. The result: a 30% business investment allowance in new plant and equipment which provided a tax offset of $6 billion. It wasn’t everything we argued for, but the retail motor industry secured important activity from the tax break just when the outlook was bleakest.

Interest rates

Interest rate decisions by the Reserve Bank are often, even on their own admission, ‘judgment calls’. Twice in 2012 the central bank was persuaded to reduce rates when market economists didn’t expect it. Business advocacy helped make the difference. VACC’s involvement in ACCI’s survey work brought the Reserve Bank and federal Treasury real time information about trading conditions – well before official ABS data. There are plenty of small business feeling the pinch from rough play by the banks. ACCI advocacy supported by organisations like VACC shaved more than $9 billion this year off overdrafts and borrowings by small and medium business. That’s helped the bottom line.

Red taPe

Politicians say they’re concerned about red tape, but rarely do they direct public servants to decrease the load. When confronted, governments duck and weave

and ask for real examples. With VACC’s support, this year ACCI took the step of going to the horse’s mouth – surveying 870 small and medium businesses about the red tape problem. The result: findings no government or ministry can contradict – on average five hours per week per business wasted just in compliance. Armed with this data, VACC is now able to use facts to strengthen the case for freeing up the retail motor industry from excessive red tape.

health and safety

Nationally harmonised health and safety regulations are being proposed by the Australian government. These will directly affect employers and contractors in the retail motor industry. ACCI has the job of pushing-back against some of these new proposals, where they are costly or impractical for small business. VACC is the key driver of the retail motor industry’s input into ACCI on these matters. Without the ACCI-VACC partnership, the sector would not have a voice at the Safe Work Australia table where these decisions are first made.

wage and labour Costs

Every employer in the retail industry knows that profit margins have been eroded by the ‘’cautious consumer’’ and soaring labour costs. VACC works with ACCI each year to keep wage rises ordered in the retail motor industry down. It’s tough work, because employer calls for moderation are opposed by unions and regrettably, often by governments. VACC has put facts facts on the table to Fair Work Australia and its 7-member wages panel. ACCI used that data in 2012 to successfully convince the tribunal that economic conditions were worse than previously predicted by the panel’s experts. The result: while the rise was still

too high, VACC and ACCI achieved a lower outcome which shaved $936 million off the employer payroll in 2012, compared to the cost of a flow on from 2011.

unfaIr dIsmIssal

ACCI and VACC combined to take the case for changes to onerous unfair dismissal laws to the highest levels of government and the parliament. VACC’s practical expertise is used by ACCI to lobby Ministers, shadow Ministers and parliamentarians. This has included extensive evidence of unfair cases being brought against small and medium employers in the retail motor industry – evidence ACCI’s Peter Anderson and VACC’s Leyla Yilmaz jointly presented to Senate Committees of Inquiry.

suPerannuatIon

Labour on costs, like superannuation, are big costs for industry. It is ACCI’s and VACC’s job to do the heavy lifting against uneconomic proposals. When the Australian government lifted the 9% superannuation levy paid by employers to 12%, ACCI and VACC opposed the rise, and gave evidence to the parliament about the unfair impact on small and medium employers, who struggle to fund their own retirement. The result: the rises are being phased in over seven years – not our preferred result, but a lot better than a 3% payroll levy hitting labour costs and jobs in one year.

traInIng and skIlls

With productivity down, it has been ACCI’s job to ensure governments support the training effort by industry. VACC’s commitment to industry-specific training and apprenticeships is highly recognised by wider industry, and nationally. ACCI combined with VACC to fight for the retail motor industry securing specific structures to examine its skills needs, separate from the manufacturing sector. Again, VACC’s persistence and ACCI’s support, forced authorities to change plans and give the retail motor industry a more independent voice.

The beauty of ACCI affiliation is that these outcomes don’t threaten the independence of industry associations, because ACCI’s members are associations like VACC, not specific businesses. The business relationship remains very local, with VACC. Put simply, it’s a strategic partnership that adds joint value, and works – even in the difficult area of government and industrial tribunal advocacy.

About VACC VACC is an industry association member of ACCI. It is the premiere association for employers and business people in the retail motor industry in Victoria. www.vacc.com.au

tHe need to CHAmpIon smAll And medIum busInesses Is VACC’s And ACCI’s lIFe blood.

ACCI’s Daniel Mammone; Director, Construction Code Compliance Unit, Department of Treasury and Finance, Victorian Government, Nigel Hadgkiss; Assistant Director, Construction Code Compliance Unit, Department of Treasury and Finance, Victorian Government, Cathy Cato and VACC’s Leyla Yilmaz


Acci network

tHAnk you to Anne bellAmyacci congraTulaTes anne bellamy on The service she has provided To wesTern ausTralia and naTional work healTh and safeTy policy and pracTice over The pasT Two decades.

The ACCI Secretariat and extended member network sincerely thank Anne for her long-term national representation on Safe Work Australia and the enormous and important role she has played in developing WHS and OHS’s visibility on the national policy stage. We wish her all the best for her ongoing activities.

Anne is taking her corporate skills to wider fields, helping her family in a small business and supporting her many philanthropic ventures.

Thanks also go to the Chamber of Commerce and Industry Western Australia (CCIWA) for loaning their support and allowing Anne to divert her energies to national WHS issues and advocacy.

ACCI Chief Executive, Peter Anderson; CCIWA’s Anne Bellamy; ACCI Manager WHS and Compensation, Carolyn Davis and ACCI Senior Advisor WHS and Compensation, Toula Papadopoulos

‘Enhancing Success’ describes both our relationships with our clients and our role in their endeavours. Our clients are successful in their own right - our purpose is to enhance that success. We provide legal expertise, industry proficiency, business networks and knowledge to help clients achieve their business goals and personal ambitions. We do this by listening, collaborating and delivering.

Cornwalls Lawyers Pty Ltd Level 10, 114 William Street, Melbourne VIC 3000, AustraliaPhone +61 3 9608 2000 Fax +61 3 9608 2222 [email protected] www.cornwalls.com.au

Enhancing Success


trAIn to mAIntAIn: engAged And trAIned stAFF meAns better Customer serVICein These difficulT Times iT is also The case ThaT many employers may view Training and developmenT of Their sTaff as an expense cuT back – when in facT iT is one of The areas employers should mainTain invesTmenT. now more Than ever, engagemenT wiTh cusTomers and addressing Their unique needs is criTical To business survival and success. Training and educaTion is The key To sTaff knowing whaT cusTomers wanT and need.

Training and education can also help maintain engaged employees. All businesses need engaged employees who know what to do and why. Engaged employees are more likely to give maximum effort when they’re at work and have a greater justification for their salary. Their salary is an investment for your business and you’re able to see the return to your bottom line. As engagement starts to slip, the investment (their salary) can become a straight cost and an expense off the bottom line.

Research by the Gallup organisation (an international management consulting firm) has found that up to 70 per cent of employees can be disengaged in some organisations.

For small businesses to be truly successful they need to differentiate from their competitors and provide a meaningful reason for customers to want to do business with them and make themselves an ‘EST’ in their field. It may not be enough to be the closEST or the biggEST or the cheapEST – but be the bEST. To be the bEST, a critical pre-requisite is well trained and knowledgeable staff that are engaged and committed to what your core beliefs and purpose is as a business.

When an employer chooses a provider for delivery of training and education to their staff, the choice should not come to cost alone. Other important factors should also be considered including; reputation of the provider, awareness of how well the provider understands your needs and your industry, and the modes of the delivery.

The Pharmacy Guild and the Guild Pharmacy Academy are strongly committed to this vision of ensuring high quality training and education to the pharmacy industry and its members (and their staff) including; pharmacy assistants, intern pharmacists and pharmacists. We do this through the ongoing delivery of Certificates of Community Pharmacy to pharmacy assistants as a Registered Training Organisation (RTO), major

conference events for both pharmacy assistants and pharmacists, a specifically tailored intern training program for intern-pharmacists and continuing professional development materials for pharmacists via online learning and at face-to-face workshops across Australia.

A common question asked by business is ‘What happens if I train my staff and they leave?’ A bigger problem presents itself if you do not train your staff and they stay. As research and industry experience suggests, increasing the probability of retaining the staff you want to keep will be influenced by support in their training, education and personal development.

About the Pharmacy Guild of Australia The Pharmacy Guild of Australia is a national industry association member of ACCI. It is the national peak body representing community pharmacy. The Guild is committed to supporting and maintaining the community pharmacy model as the most appropriate and efficient system of delivering medicine.www.guild.org.au

By Anthony tAssone, nAtionAl director, PhArmAcy guild of AustrAliA

A Common questIon Asked by busIness Is ‘WHAt HAppens IF I trAIn my stAFF And tHey leAVe?’ A bIgger problem presents ItselF IF you do not trAIn your stAFF And tHey stAy.


Acci network

2013 ACt & regIon IndIgenous eXpofrIday, 8 february 2013 – saturday, 9 february 2013

The ACT & Region Indigenous Expo aims to increase awareness of career and education opportunities including support services available to Aboriginal and Torres Strait Islander people living in the ACT and Region.

The Expo will occur in conjunction with 2013 National Multicultural Festival, and provides both Indigenous and non-Indigenous businesses and job

seekers an opportunity to connect with over 350 different community groups, education sector, the corporate & industry sector, local and national arts groups and up to 70 diplomatic missions. The Festival attracted over 300,000 visitors in 2012.

The 2013 ACT & Region Indigenous Expo is proudly hosted by the Indigenous Business Chamber in collaboration with the ACT & Region Chamber of Commerce & Industry, Habitat Personnel, the National

Disability Coordination Office and will be held in conjunction with the 2013 National Multicultural Festival.

To find out more and get involved, please contact Sarah Kentwell on 02 6283 5200 or [email protected]

About ACT & Region Chamber of Commerce & Industry The ACT Chamber is a chamber member of ACCI. It is the largest and strongest Canberra based organisation representing local business. The Chamber provides members with a range of services to help them meet the challenges facing business today.

The ausTralian denTal indusTry associaTion (adia) has recenTly signed an agreemenT wiTh charles sTurT universiTy (csu) To provide employees of adia member businesses The opporTuniTy To enrol in The csu graduaTe cerTificaTe in small business managemenT. This is a course designed To help professionals in The denTal indusTry TransiTioning To broader managemenT roles and esTablished proprieTors of small businesses To gain new skills.

The CSU Graduate Certificate in Small Business Management course equips new and established business owners and managers within the dental industry with the latest ideas and concepts in management to enhance their business knowledge. The course emphasises personal development and industry best practice whilst also providing the opportunity to network with industry peers and market leaders.

“This initiative is designed to provide the skills necessary to lift productivity and provide a defined career path for individuals associated with the manufacture and distribution of dental products,” says Troy Williams, ADIA Chief Executive Officer.

“There was a genuine need amongst our members for more training and upskilling in business management. As part of our ongoing commitment to providing

employees within the dental industry with opportunities for career development, we partnered with CSU who were able to tailor a business management course with the dental industry in mind,” Mr Williams said.

The course requires completion of three core subjects in marketing, human

resources and strategy and one elective, enabling students to tailor the course to their needs. It is structured so that it provides direct application of knowledge, allowing students to benchmark their current business processes and practices.

“We understand that small business owners and managers learn informally and often on an ‘as needs’ basis. This course is designed to complement previous informal training by challenging existing knowledge, thereby providing opportunities for business innovation,” says CSU Course Coordinator, Dr Lan Snell.

If you are interested in enrolling or want more information regarding the course, please call 1800 334 733 or visit www.csu.edu.au/courses/postgradute/small_business_mgt

About ADIA ADIA is a national industry association member of ACCI. It is the peak representative body for suppliers of quality dental products.www.adia.org.au

AdIA And CHArles sturt unIVersIty pArtner on upskIllIngBy fionA lee, communicAtions officer, AustrAliAn dentAl industry AssociAtion

“tHIs InItIAtIVe Is desIgned to proVIde tHe skIlls neCessAry to lIFt produCtIVIty And proVIde A deFIned CAreer pAtH For IndIVIduAls AssoCIAted WItH tHe mAnuFACture And dIstrIbutIon oF dentAl produCts,”


Get the Australian advantage

Shoppers are looking for Australian products and produce.

The Australian Made Australian Grown logo will help them find yours.

To find out how the logo can help your business or to register to use the logo, visit

www.australianmade.com.au or call 1800 350 520

5836AM


Acci network

Southern Cross Protection is one of Australia’s largest national security patrol networks, providing intelligent and

comprehensive security solutions to a wide range of businesses and communities.

Southern Cross has a commitment to delivering services that are tailored to meet our client needs, at the right price.

Founded in the 1930s, the company has an extensive heritage in assessing security needs, as well as providing integrated and

effective solutions that deliver peace of mind.

Security SolutionsSecurity Patrols

Alarm Monitoring & ResponseRisk Advisory and Management

Security for People, Business and Communities

For further information1300 136 102

ww.sxprotection.com.au


consulTing an experT before purchasing a securiTy soluTion could mean cosT reducTions in The long run, according To souThern cross proTecTion managing direcTor paTrick bourke.

For the second year running, Southern Cross Protection has partnered with the Australian Chamber of Commerce and Industry (ACCI) to carry out a study into the security concerns of small to medium businesses around Australia.

Designed to help the security industry improve its services to small to medium enterprise (SME) owners, the results of the study reveal SMEs possess low levels of knowledge and confidence around choosing a business security solution – which puts many at risk of theft of physical assets, and intellectual property and vandalism. To put this in context, more than three quarters (77.1 per cent) said their business sees an annual turnover of less than $5 million, however most said they spend less than $5,000 per year on security solutions to protect their business.

The findings from the study that I see as the most alarming are nearly two thirds (65.9 per cent) of SMEs do not seek out professional advice before purchasing a security solution, while a further 8.9 per cent of respondents said they simply guessed when it came to deciding on the best security options for their business.

These results clearly show that Australian SMEs have a limited understanding of security needs for their business. They also indicate that SMEs lack the confidence to determine the most suitable security solution.

Despite indicating that they have invested in security solutions, more than half of the survey respondents said they do not measure a return on their investment (55.9 per cent), and in not doing so miss out on realising potential cost reductions for their business.

As the managing director of a security solutions provider, I encourage SMEs to measure return on investment for security spend; at the very least, I recommend conducting a cost benefit analysis. The simple reason for doing this could result in cost savings for a business, such as a reduced insurance premium.

Thankfully, the findings of the Index weren’t all doom and gloom. 80.4 per cent of SMEs said they invested in basic measures such as locks to deny unauthorised access to their premises; almost three quarters (71.0 per cent) said they had invested in an alarm to deter potential intruders. So it is clear that SMEs are conscious of the need to invest in security – there’s just a disconnect that SMEs are often either unaware of the security risks they face, or unsure of the most appropriate and cost effective solutions available for their business. Too many are simply guessing when deciding on a security solution.

Securing your private business is an important consideration and investment, and it can be hard to know what to do right, what is enough, and what is not enough. Action needs to be taken by the security industry in order to help SMEs develop greater awareness and better understanding of the measures they can take to ensure better protection for

their business, employees and business partners.

If you would like to talk to Southern Cross Protection about security options for your business, or to arrange for a security consultation, call (02) 9923 9923 or visit the Southern Cross website for more information, www.sxprotection.com.au.

Conducted as part of the quarterly ACCI Survey of Investor Confidence, the research was undertaken through ACCI’s member associations during August and September 2012

About Southern Cross Protection

Protecting Australians since its inception in the 1930s, Southern Cross Protection is one of Australia’s largest national security patrol networks. With a deep commitment to providing adequate levels of security provision to SMEs in Australia, Southern Cross Protection will continue to offer intelligent and comprehensive security solutions to hundreds of businesses and communities, while at the same time working closely with Government, Business Chambers and the wider industry to improve education, awareness and security provision for SMEs. With a countrywide reach, Southern Cross Protection is Australian owned and managed.

InVestIng In A seCurIty solutIon? Ask An eXpertSouthern Cross Protection is one of Australia’s largest

national security patrol networks, providing intelligent and comprehensive security solutions to a wide range of

businesses and communities.

Southern Cross has a commitment to delivering services that are tailored to meet our client needs, at the right price.

Founded in the 1930s, the company has an extensive heritage in assessing security needs, as well as providing integrated and

effective solutions that deliver peace of mind.

Security SolutionsSecurity Patrols

Alarm Monitoring & ResponseRisk Advisory and Management

Security for People, Business and Communities

For further information1300 136 102

ww.sxprotection.com.au

By PAt Bourke, mAnAging director, southern cross Protection


Acci network

AustrAlIAn CHAmbers busIness Congress 2012This year saw the successful delivery of the second Australian Chambers Business Congress. Held in Melbourne 15-17th August, the event was attended by over 1000 delegates and included international and national speakers such as Harvard University Professor Rosabeth Moss Kanter; ex Facebook Head of Marketing Randi Zuckerberg, and Nobel Laureate Professor Muhammad Yunus.


ACCI NATIONAl MEMbER NETwORk: bUSINESS SA ChAMbER Of COMMERCE & INDUSTRY QUEENSlAND

ChAMbER Of COMMERCE NORThERN TERRITORY NSw bUSINESS ChAMbER TASMANIAN ChAMbER

Of COMMERCE & INDUSTRY ACT & REgION ChAMbER Of COMMERCE & INDUSTRY VICTORIAN

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wESTERN AUSTRAlIA ACCORD - hYgIENE, COSMETIC AND SpECIAlTY pRODUCTS INDUSTRY

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ASSOCIATION AUSTRAlIAN bEVERAgES COUNCIl AUSTRAlIAN DENTAl INDUSTRY ASSOCIATION

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gROUp AUSTRAlIAN MADE, AUSTRAlIAN gROwN CAMpAIgN AUSTRAlIAN MINES & METAlS

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