Issue 58 - 11 May 2009

CCI and the Perth Theatre Trust invite you to enjoy an evening of world-class music, ballet and theatre at the Inaugural Commerce Meets Culture Gala Dinner.

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CCI invites you to join the Premier Colin Barnett and Treasurer Troy Buswell at this business leaders’ State Budget Breakfast where they will outline the details of the 2009-2010 State Budget and discuss its impact on Western Australian business.

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Japan’s Foreign Minister Hirofumi Nakasone met with Premier Colin Barnett and Federal Foreign Affairs Minister Stephen Smith last week at a luncheon hosted by the two in Perth.

Mr Nakasone’s trip came 10 weeks after Mr Barnett used his first overseas visit as Premier to travel to Japan.

“I am honoured to have Mr Nakasone visit Western Australia so soon after our first meeting,” the Premier said.

“When we met in February, I was told that I was the first Australian State Premier to meet with a Minister of such high ranking in the Japanese Government. This was a clear indication of how this State’s exports are valued and the widespread interest in our minerals, petroleum and agriculture sector.

“As one of our most important trade and investment partners, Japan has played a vital role in WA’s economic development and I am keen to see this relationship continue and strengthen.”

As global concern grows about the spread of swine flu, and health authorities step up their efforts to stop the spread of the disease, local businesses are being reminded there are steps they can take to look after the health and wellbeing of their staff and customers.

The State’s peak business organisation, the Chamber of Commerce and Industry of Western Australia, has released a list of practical measures to help local businesses reduce the risk of their employees and customers contracting and spreading the disease.

CCI has received a number of calls from businesses asking what they can do to help in the international effort to combat swine flu.

CCI director of health, OSH and workers' compensation Anne Bellamy said while there was yet to be a confirmed case of swine flu in Australia, CCI was reminding businesses that prevention was better than a cure.

"It is critical that community efforts, including businesses big and small, focus on preventing the spread of swine flu through the development, and implementation, of good hygiene practices," she said.

Swine flu is a viral respiratory illness that is regularly seen in pigs and can transmit to people. Transmission between people is occurring, mainly through coughing, sneezing and coming into contact with infected items.

CCI’s swine flu tips for business include:

• develop a clear and well practised hygiene policy that addresses the good hygiene behaviours employers expect from their people;
• encourage staff to wash hands with soap and water on a regular basis;
• provide amenities such as hand washing basins, soaps, disposable towels and tissues, and good waste disposal systems;
• encourage staff who feel unwell to stay at home and keep away from work;
• special consideration should be given to staff travelling to countries with reported cases;
• discuss with employees and customers the health measures the business has introduced, and;
• plan for the possibility of high absenteeism.

Businesses seeking further advice are encouraged to contact CCI’s Occupational Safety and Health Team on (08) 9365 7415, or call the Swine Influenza Hotline on 180 2007.

CCI's swine flu guide can be downloaded at www.cciwa.com/.

Overseas individuals who have have worked in Australia as temporary residents may be eligible to claim their superannuation money as part of the Departing Australia Superannuation Payment (DASP).

They can do this if they have worked in Australia on an eligible temporary visa; their visa has ceased to be in effect (i.e. the visa has either expired or been cancelled); and they have departed Australia.

A list of eligible temporary resident visas is available from the Australian Taxation Office (ATO) and can be found by clicking here

Individuals may still be able to return to Australia on another visa even if they claim and receive their superannuation money.

The DASP is not available for Australian permanent residents and citizens or New Zealand citizens (unless they have previously visited Australia on an eligible temporary visa - in which case some of their superannuation may still be payable as a DASP).

Eligibility and procedures for lodging a claim for superannuation benefits are available from http://www.ato.gov.au.

Important changes which apply to unclaimed super for temporary residents under the DASP scheme have been introduced since towards the end of 2008.

Effective from 18 December 2008, overseas individuals have at least six months after they cease to hold the visa and leave Australia to claim the DASP from their superannuation provider.

If the DASP is not claimed within six months since their visa ceases to be in effect and the individual has left Australia, their superannuation provider may be required to transfer the money to the ATO as unclaimed superannuation.

Eligibility and procedures for lodging a claim for superannuation benefits as an unclaimed superannuation payment are available from http://www.ato.gov.au.

For further information contact CCI Migration Services (MARN 0318589) on (08) 9365 7521 or email visas@cciwa.com.

The Chamber of Commerce and Industry of Western Australia has welcomed the Federal Government’s decision to delay the start of its proposed Carbon Pollution Reduction Scheme (CPRS).

CCI has played a lead role in calling for the emissions trading scheme to be delayed, arguing the original proposed 2010 start date was too soon, and did not provide small, medium and large businesses enough time to prepare.

CCi chief executive James Pearson was pleased the Federal Government had recognised the importance of not imposing another cost barrier and regulatory burden on business during challenging and uncertain economic times.

"Delaying the start of the proposed scheme by one year will assist business and industry, hit hard by the global financial crisis, by giving them time to plan for the scheme’s introduction, developing the necessary systems for reporting and compliance, and integrating them into existing business operations," he said.

CCI believed the Government’s plan to reduce emissions by 25% of 2000 levels by 2020 was ambitious, even though it would require a strong international agreement to ensure Australia’s emissions-intensive trade exposed industries were not placed at a competitive disadvantage.

"CCI will study how the proposed changes, including altering the price for carbon and the thresholds for permits, will affect the ability of businesses to lower emissions, while continuing to be internationally competitive," Mr Pearson said.

"In particular, we need to know how the Government will manage the transition from a capped carbon price of $10 per tonne in the first year of the scheme, to a market based price thereafter."

CCI said the CPRS was one of the most significant economic policy decisions in modern history and it was critical the right decisions were made by government to ensure the economy, and local business and industry, were not unfairly penalised. 

In a recent appeal decision the Workers Compensation Commission of New South Wales (NSWWCC) determined that a worker who was assaulted whilst obtaining a meal prior to his shift was in the process of journeying to work and should therefore be eligible to receive workers compensation.

The worker was requested at short notice to undertake an evening shift which was due to commence at 10pm. He travelled to work an hour prior to the scheduled shift commencement time and parked his car in the staff car park, leaving his belongings at the workplace. The worker then proceeded to a nearby KFC store to purchase a meal where he became the victim of an un-aggravated physical assault. The encounter left the worker with a number of injuries primarily to the face and upper body as well as suffering from anxiety. He was taken to hospital and never commenced his shift.

The worker’s claim for workers compensation, in relation to injuries sustained as a result of the assault, was initially accepted by his employer’s insurer. However his eligibility to receive workers compensation was later questioned by the insurer who argued that his employment was not a substantial contributing factor to his injuries. The insurer argued that at the time the injuries occurred the worker was no longer on a “periodic journey” to his place of employment as required under the Workers Compensation Act 1987 to be eligible for compensation. As a result it was argued the link between employment and the injury was insufficient to be compensable.

In the initial arbitrated decision on the matter, it was determined that the worker’s journey ceased upon arriving at the workplace and that the journey to KFC was not part of his travels to the workplace. As such the worker’s injuries were deemed not to have occurred during the journey to work and therefore the worker was not eligible to receive workers compensation.

In the more recent appeal decision the NSWWCC determined that in the first instance the arbitrator failed to properly apply the law in relation to journey claims and that the worker should be entitled to workers compensation. This was primarily due to the fact that the worker was called to work at short notice which disrupted his usual routine and consequently required the purchase of a meal on his way to work. The intention to purchase a meal as part of the journey to work was always there and the fact that the employee arrived at the place of work and then travelled elsewhere to obtain a meal does not deter from the fact that the travelling in its entirety was necessary for the employee to commence his shift. The NSWWCC recommended the employee be entitled to workers compensation for his injuries and subsequently remitted the matter to the initial arbitrator for re-determination on the basis of the NSWWCC findings.

It is important to note that workers compensation law in New South Wales covers employees for travel from their home to work and vice versa. While Western Australian workers compensation law expressly excludes such travel from coverage, aspects of the above case such as the employee being directed to work by their employer at short notice necessitating the purchase of the meal on the way to shift and direction to work a shift not usually worked are relevant for WA cases.

For further information please contact the CCI Employee Relations Advice Centre on (08) 9365 7660 or advice@cciwa.com

Singh v Thompson Health Care Ltd (2009) 97 AWR 4,184; [2009] NSWWCCPD 11.

Don't miss this exclusive invitation to join the Federal Treasurer, to discuss the detail of the Budget, and learn what impact it will have on Western Australian business.

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The State Government is to spend another $700,000 to continue its campaign to promote local destinations and encourage Western Australians to holiday at home.

Tourism Minster Liz Constable told State Parliament last week the ‘Holiday at Home’ campaign, launched in February, had proven effective.

She said anecdotal evidence suggested the campaign had led to higher bookings in some parts of the State.

“One recent media report quoted a Broome operator saying this was the busiest tourist season in 20 years, and Rottnest Island ferry operators also reported a 12% increase in numbers over the Easter period, compared to 2008 and we have heard similar stories in the Mid-West,” Dr Constable said.

“There’s been a 27% increase in hits to Tourism WA’s website and publicity surrounding the campaign has been worth nearly $1.3 million.

“We had hoped the campaign would reach an audience of more than 1.2 million, and this has been achieved through television, radio and print advertising.”

The Minister said a further $310,000 would be spent to extend the ‘Holiday at Home’ campaign to the end of June.

Another $385,000 would be spent as part of WA’s participation in Tourism Australia’s ‘No Leave No Life’ campaign.

“We are the first State to partner Tourism Australia in this innovative campaign, which encourages Australians to reduce their accumulated annual leave by taking a local holiday,” Dr Constable told the Legislative Assembly.

“Research shows that Western Australians have accrued more than 12 million days of annual leave. We want people to use these days to take a break at a WA destination.”

The Minister said the State Government’s commitment to continue to market WA during the global financial crisis would help the local tourism industry.

“These campaigns will assist in keeping tourism dollars in our State,” she said.

In a statement issued by the Australian Industrial Relations Commission (‘the Commission’) on 3 April 2009, it was announced that transitional provisions for modern awards will be dealt with upon finalisation of each stage of the award modernisation process.

Additionally the Commission established a consultation process for transitional issues relating to the Priority (Stage 1), and Stage 2, modern awards over the period from 29 May to 18 July 2009.

The award modernisation process will create a completely new safety net of national awards for employers and employees, removing employment condition differentials that currently exist between various states and territories.

In a separate statement issued earlier this year by Minister for Employment and Workplace Relations Julia Gillard, the Federal Government has indicated that no employee shall receive a reduction in pay as part of the award modernisation process. Although the statement also indicated there was to be no increased costs for employers, it is now clear that increased costs will be a direct result of the process.

However, the level of impact of modern awards will vary across industries. For example, employers in the retail and hospitality industries will be disproportionately affected by the process, with increases in most allowances, loadings and penalties for casual employees, penalties for weekend work and a new classification structure introducing significantly higher base award rates of pay for supervisors, and managers in the case of the General Retail Industry Award 2010.

Transitional provisions are intended to allow increased costs to be phased in over a five year period where these occur as a consequence of terms and conditions prescribed by modern awards.

Further to the previous articles in Business Bytes which examined the agreement making provisions under the Fair Work Act 2009 (The FW Act), this week’s issue considers how agreements will be made after 1 January 2010, when the final elements of the FW Act — the new safety net of modern awards and ten National Employment Standards, take effect.

From 1 January 2010 it will only be possible to make collective agreements. Statutory individual agreements, such as Individual Transitional Employer Agreements (ITEAs) and Australian Workplace Agreements (AWAs), will not be available.

The bargaining process for an agreement after 1 January 2010 will be the same as during the bridging period (1 July 2009 – 31 December 2009).

Employers will need to ensure that they are following the bargaining process under the FW Act. This includes:

• notification provisions;
• the relevant union being a default bargaining representative;
• the ability for Fair Work Australia (FWA) to make orders forcing employers to commence bargaining; 
• the requirement to bargain over matters that relate not only to the relationship between the employer and the employee but also the relationship between the employer and the union;
• the requirement to bargain in good faith, and; 
• the ability for FWA to arbitrate if it deems that a party has seriously breached good faith bargaining.

Collective agreements will still need to be approved by a valid majority of employees. Once an agreement has been approved by employees, it will need to be lodged with FWA.

While agreements made during the bridging period will be subject to a “no-disadvantage test”, agreements made from 1 January 2010 will be required to pass the “Better Off Overall Test” (BOOT). Under the BOOT, each employee that will be covered by the agreement must be better off overall when compared with the relevant modern award. When assessing an agreement, FWA can also consider a class of employees rather than each individual employee.

Agreements made from 1 January must also comply with the National Employment Standards (NES). Under the FW Act, any term of an agreement which is in contravention of the NES will have no effect.

Further information on agreement making and the Fair Work Act 2009 is available at http://www.cciwa.com//Current_Issues_1.aspx.

Next week’s issue of Business Bytes will provide more detailed information on greenfields agreements made after 1 July 2010.

If members have queries about agreement making under the new system, please contact the Employee Relations Advice Centre on (08) 9365 7630, email advice@cciwa.com or contact your relevant industry adviser.

Grants are now available for small and medium enterprises to provide greater access to WA's high performance computing, scientific visualisation and large scale data storage facilities.

iVEC are seeking applications from small and medium enterprises wishing to undertake a research and development or innovation project associated with high performance computing, advanced scientific visualisation and large scale data storage.

CCI's ICT Committee recognises that large businesses are generally well serviced by high performance computing facilities in Western Australia.

However, small and medium enterprises often don't have the time or money to invest in hiring the appropriate professionals or building the required facilities to progress innovative ideas that require large volumes of data to be proccessed.

Successful projects could receive up to $66,000 in matching funds to support their project.

Further information about the grants can be found by clicking here.

Australia participated at the sixth Project Qatar exhibition with a number of stalls from Down Under offering advanced solutions to meet the requirements of the region’s ever growing construction industry.

The Australian pavilion showcased 18 companies, all frontrunners in their respective industry segments in Australia.

Perth-based Australia Arab Chamber of Commerce and Industry Inc chairman Edmund Damouni said that the chamber currently had 600 members doing business with GCC and that Australian businesses were seen to be keen on setting up ventures in the region in partnership with local business that would provide benefits to each other.

For more information visit www.austarab.com.au

Minister for Foreign Affairs Stephen Smith visited the Kingdom of Saudi Arabia this month to discuss perspectives on bilateral, regional and global issues and to reinforce Australia’s strong desire for an early conclusion to an Australia-Gulf Cooperation Council (GCC) free trade agreement.

It was the first visit to Saudi Arabia by an Australian Foreign Minister since 2003.

The countries of the GCC (Saudi Arabia, Bahrain, Kuwait, Oman, Qatar and the United Arab Emirates) are a major export market for Australia, with total merchandise trade worth $12.3 billion in 2008.