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What does the supermarket code of conduct actually do?

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Food and Grocery Code of Conduct - What does the supermarket code of conduct actually do?
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What does the supermarket code of conduct actually do?

 

By Jeff Gibbs

Public scrutiny of supermarkets has a longstanding history. Nearly a decade preceding the current spotlight on inflated prices and allegations of price gouging, a code of conduct was instituted to address the market disparities between major retailers such as Woolworths and Coles and their suppliers. Fast forward to the present, and it’s evident that issues persist. A 2023 report revealed that over a third of Australian vegetable producers contemplated exiting the industry within a year, citing pressures from retailers on pricing and shrinking profit margins. Consequently, the federal government has commissioned a review of the code of conduct.

So, what precisely is this code, and does it effectively operate? Introduced in 2015, the Food and Grocery Code of Conduct serves as an agreement aimed at enhancing business practices within the supermarket sector, particularly concerning the dynamics among retailers, wholesalers, and suppliers. While suppliers are mandatorily covered by the code, participation by supermarkets remains entirely voluntary. Notably, major players like Woolworths, Coles, Aldi, and Metcalf (parent company of IGA) have all opted in.

Under the code, supermarkets bear several obligations, including the fundamental principle of conducting dealings with suppliers in good faith — be it during negotiations, contract establishment, or dispute resolution. However, the code refrains from explicitly defining the concept of “good faith.” Instead, it delineates various factors to assess good faith, such as acting honestly and without retaliatory or coercive measures. Additionally, supermarkets are required to appoint their own code arbiter to investigate disputes and propose resolutions, though a recent review highlighted supplier concerns regarding the arbiters’ lack of independence, resulting in scant formal complaints.

Should a breach of the code occur, suppliers possess the option to file formal complaints with the designated arbiter. Yet, a central critique of the code emerges here: due to its voluntary nature, supermarkets face no tangible repercussions for non-compliance. This deficiency was acknowledged by Dr. Craig Emerson, tasked with leading a review of the code, who emphasised that instituting penalties within a mandatory code could incentivise greater adherence from supermarkets. Nonetheless, supermarkets argue that the paucity of complaints indicates smooth relations between them and suppliers.

Food and Grocery Code of Conduct - What does the supermarket code of conduct actually do?

The Food and Grocery Code of Conduct serves as an agreement aimed at enhancing business practices within the supermarket sector.

Will the code undergo revision? It remains uncertain. Dr. Emerson is slated to deliver a report on the review by June’s end, which will furnish a recommendation to the federal government on potential amendments — either retaining it as a voluntary pact while modifying certain aspects or overhauling it into mandatory regulation. The government, led by Prime Minister Anthony Albanese, asserted a commitment to taking requisite action following the review’s outcome.

This was acknowledged by Dr Craig Emerson, who said proper penalties in a mandatory code would improve supermarket behaviour after he was appointed to lead a review of the code in January.

“Critics point to the weak enforcement powers in a voluntary code,” he said in early February.

“A mandatory code with penalty provisions would likely incentivise greater compliance by supermarkets.

“Enforcement options could include infringement notices and court proceedings to impose financial penalties for non-compliance.”

Supermarkets, however, say the paltry number of complaints shows the relationships between them and suppliers are running smoothly.

Is the code going to change?

It might, but we don’t know for sure yet.

Emerson is due to deliver a report on the review by the end of June.

That will include a recommendation to the federal government on whether to amend the code – that is, keep it as a voluntary agreement but change some other elements – or remake it entirely to turn it into mandatory regulation.

The government will then have to choose whether or not to accept Emerson’s recommendation.

Prime Minister Anthony Albanese said when the review was launched that he “will not hesitate to take action” if it’s required.

 

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Workforce barriers tripping up young Australians and how to overcome them

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Workforce barriers tripping up young Australians and how to overcome them

 

Only half of young people feel confident in achieving their current or future career aspirations due to workforce barriers, new research has found.

This, coupled with a youth unemployment rate of 9.7% as of May 20242, underscores the critical need for targeted support and resources to equip young individuals with the foundational skills essential for navigating today’s complex job market.

For young people, particularly those from marginalised groups like Indigenous youth and women, there are additional barriers that exacerbate the challenge in securing employment and advancing careers including things like systemic inequities, limited access to quality education and training as well as pervasive social biases.

For example, recent studies have shown that 37% of women working in predominantly male environments report experiencing gender-based competence challenges3.

Employment services provider atWork Australia is addressing these challenges head-on by spotlighting the empowerment of young talent in preparation for World Youth Skills Day on 15 July, providing comprehensive support to young individuals, ensuring they have the necessary skills and assistance to confidently enter the workforce.

Over the last year, atWork Australia has supported over 7,300 young people (aged 25 years or younger) on their individual employment journey across metropolitan and regional Australia. Trends show that hospitality, warehousing and retail are the most appealing industries for young people to seek out. atWork Australia celebrates and applauds youth transition to all industries as each individual embarks on their employment and career journey.

One inspiring example is atWork Australia client, 18-year-old Yasmine, a determined Indigenous young woman from Mount Druitt, New South Wales. Through atWork Australia’s guidance, Yasmine defied odds and successfully entered the traditionally male-dominated mechanical industry.

Yasmine’s journey, starting from when she left school in Year 10, it reflects her resilience in overcoming significant challenges. Initial barriers included securing additional work hours and attending appointments due to financial constraints. Yasmine found crucial support from atWork Australia for emotional, mental and educational barriers as well as practical needs like food vouchers and travel costs4.

“atWork Australia has been a tremendous support for me,” Yasmine shared. “They kept me informed about job opportunities and reached out to discuss potential roles. It was empowering to be able to communicate my interests and preferences directly to them.”

Navigating her way through interviews and her initial week on the job, Yasmine benefitted from the guidance of atWork Australia’s Indigenous Connections team, who provided essential mentorship and support.

Despite encountering scepticism and doubts as a woman in a male-dominated field, Yasmine persevered, impressing her colleagues with her skills and determination.

“At 18, there were moments of self-doubt, especially being an 18-year-old female in this industry, but with atWork Australia’s unwavering support, I gained confidence and pushed through,” Yasmine reflected.

atWork Australia will continue to assist Yasmine until she feels fully settled in her new role and is committed to supporting her journey towards achieving her long-term goal of saving for a house deposit.

Yasmine’s story exemplifies the transformative impact of tailored support and mentorship in empowering young individuals to thrive in challenging environments.

atWork Australia is dedicated to providing comprehensive support to young individuals, ensuring they have the necessary skills and assistance to confidently enter the workforce.

To find out more about atWork Australia’s support services, please visit: www.atworkaustralia.com.au. Additionally, you can listen to any of the podcasts from the ‘Candid Conversations with Shaun Pianta’ podcast series here where atWork Australia Brand Ambassador and Paralympian, Shaun Pianta, speaks about his employment journey, following a life-changing holiday.

 

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Scrap Metal Company and Directors Fined for Mass Limit Breaches

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Scrap Metal Company and Directors Fined for Mass Limit Breaches

 

A Melbourne-based scrap metal company and its three directors have been fined for failing to manage legal mass limits after an investigation uncovered 69 mass limit breaches over two years.

The National Heavy Vehicle Regulator (NHVR) Safety and Compliance Officers intercepted one of the company’s heavy vehicles in April 2021, discovering it was loaded at 120.42% of the prescribed mass limit.

Subsequent investigations revealed 69 mass limit breaches, including 24 severe risk breaches, defined as loads at 120% or more of the mass limit. The company pleaded guilty to a Category 1 offence under the Heavy Vehicle National Law (HVNL) and was fined $180,000.

The three directors also pleaded guilty to failing to exercise due diligence and ensure transport safety, receiving fines of $8,500, $7,000, and $7,000, respectively.

NHVR Acting Director of Prosecutions Elim Chan emphasised the dangers of overloaded heavy vehicles. “Heavy vehicles loaded beyond their prescribed mass limits pose serious public safety risks by compromising stability, steering, performance, and braking capability,” Ms. Chan said.

She stressed the importance of proper systems and training to ensure compliance with the HVNL and protect both drivers and the public.

The NHVR offers online tools and guides to assist with loading requirements. For resources, visit NHVR Loading Guides View the resources.

 For more information on NHVR prosecutions, visit NHVR Prosecutions.

 

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In June Australian unemployment dropped to 8.3%; lowest unemployment since September 2022

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In June Australian unemployment dropped to 8.3%; lowest unemployment since September 2022

 

In June 2024, Australian ‘real’ unemployment dropped 62,000 to 1,307,000 (down 0.4% to 8.3% of the workforce). This is the lowest rate of unemployment for nearly two years since September 2022 although overall employment is virtually unchanged above 14.3 million.

Although unemployment decreased in June as people left the workforce, under-employment increased by a similar amount in the month, up 65,000 to 1,403,000. Taken together overall unemployment and under-employment in June is virtually unchanged at 2.7 million (17.3% of the workforce).

The June Roy Morgan Unemployment estimates were obtained by surveying an Australia-wide cross section of people aged 14+. A person is classified as unemployed if they are looking for work, no matter when. The ‘real’ unemployment rate is presented as a percentage of the workforce (employed & unemployed).

  • Overall employment reaches virtually unchanged in June near record high above 14.3 million:

Australian employment was virtually unchanged at 14,307,000 (down 3,000) in June. There was a shift to more part-time employment though with 4,941,000 (up 72,000) now employed part-time while full-time employment was down 75,000 to 9,366,000. Increasing part-time employment is often associated with a rise in under-employment – which increased by 65,000 in June.

  • Unemployment decreased for a second straight month in June to its lowest for over a year:

In June 1,307,000 Australians were unemployed (8.3% of the workforce, down 0.4%), a decrease of 62,000 from May and the lowest level of unemployment for over a year since May 2023 (1,258,000). It is also the lowest rate of unemployment for nearly two years since September 2022 (8.1%).

The fall in unemployment was driven by fewer people looking for full-time work, down 131,000 to 469,000 while there was an increase in those looking for part-time work, up 69,000 to 834,000.

  • Overall unemployment and under-employment was virtually unchanged at 17.3% in June:

In addition to the unemployed, a further 1.4 million Australians (9% of the workforce) were under-employed, i.e. working part-time but looking for more work, up 65,000 from May. In total 2.7 million Australians (17.3% of the workforce) were either unemployed or under-employed in June.

  • Comparisons with a year ago show rapidly increasing workforce is driving employment growth:

The workforce in June was 15,610,000 (down 65,000 from May, but up 404,000 from a year ago) – comprised of a near record high 14,307,000 employed Australians (virtually unchanged from a month ago but up a massive 673,000 from a year ago) and 1,303,000 unemployed Australians looking for work (down 62,000 from a month ago and down 269,000 from a year ago).

 

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