Myer

Myer’s announcement today to give permanent workers paid parental leave is a clever employment relations move in the battle to attract and retain staff. This move will put Myer in a better position to attract more skilled employees and retaining those employees if they choose to have children. Such a scheme makes good sense particularly in a time of a skills shortage and labour shortage.

Myer will offer will offer employees 6 weeks paid leave, with the option to stretch it to 12 weeks on half pay.

The following are the views of various stakeholders in this issue:

  • Greg Travers, Myer spokesperson said, “While there is a cost involved in such an initiative, we see the benefits both in recognising our workforce and the importance of raising a family, while building the Myer brand as a preferred employer in the retail industry.”
  • Federal Status of Women Minister Tanya Plibersek said, “I really think this will make Myer an employer of choice for many people who are considering a career in retail.”
  • Workplace Relations Minister Julia Gillard said it was terrific to see such a move by a major company, which employs more than 10,000 permanent workers, 81 per cent of whom are female.
  • ACTU president Sharan Burrow said “Paid maternity leave should be standard across all workplaces, big and small, and the ACTU would like to see other workplaces following Myer’s example and a national employment standard that guarantees this important right for Australian workers,” she said.

Read the full report on this issue from National Nine News and consider the following qestions:

  1. What is paid paternity leave and when will Myer employees qualify for this leave?
  2. What does it mean to be an ‘employer of choice’ and why will this move make Myer an employer of choice?
  3. Outline, in full, each of the arguments outlined in the article in support of paid paternity leave from the following stakeholders: government, union, employer.

At the same time, Aldi Supermarkets have also announced a paid maternity leave scheme, giving female employees 14 weeks off at half pay.

Read more about the Myer and Aldi leave schemes in The Age, 28 March, 2008.

Air New Zealand.

Air New Zealand is one of many in a recent string of airlines offering customers carbon credits to offset emissions from their travel. Other airlines offering customers the option of purchasing carbon credits include Virgin Blue and Qantas.

Carbon offset systems work by allowing airline customers to purchase ‘carbon credits’ which are then used to fund the planting of trees or investing in other environmentally sustainable projects such as wind farms. Carbon credits are usually fairly inexpensive and are based on distance flown. Their purchase is usually added to the price of the airfare paid by the customer.

To see how Virgin Blue’s carbon offest system works click here and watch their Flash animation.

To calculate carbon credits when flying Qantas click here to use their carbon offset calculator.

Read the article in The Age, Business Day on 27 March, 2008 about Air New Zealand’s carbon credits program then consider the following questions.

  1. Why would a large organisation such as an airline offer customers the ability to purchase carbon credits?
  2. What other environmental initiatives is Air New Zealand itroducing?
  3. How much does it cost to puchase carbon credits on a flight from Sydney to Christchurch? Compare this to Qantas by using the Qantas carbon credit calculator in the link above.
  4. Find out what other large organisations are implementing carbon offset schemes.

Making waves before sitting down to a strategy meeting.

Every year at this time in Australia there is a well known international surfing competition held at Bells Beach in Torquay, Victoria. This year, to coincide with the Bells Beach competition, Rip Curl has gathering all their international licence holders and franchisees from around the world at their headquarters in Tourquay to attend a board meeting, conferences and special seminars. Not many executives wander into director meetings clad in T-shirts, thongs and board shorts, where the group CEO will deliver the three-year vision and plan for the company, its brand and principles, however this is not the case at Rip Curl in Torquay.

Read the article from The Age, Business Day on 24 March, 2008 for more about this unique meeting.

After reading the article, consider the following:

  1. How would you describe the corporate culture at Rip Curl, Torquay?
  2. What does the chairman Neil Ridgeway mean by his statement ‘We make products for surfers, but really sell dreams.”?
  3. Describe Rip Curls growth and financial position.

In Australia there are many types of businesses: small, medium and large. This method of classification seems simple enough, or is it? Think of businesses you have dealt with this week. How can you tell what size they are? When you enter a business premises it is often very difficult to tell whether you are standing in a small, medium or large business. The business may only occupy a small building or only have a small number of employees working there, but it may be part of a larger national chain of businesses or it may be owned by a multinational corporation. Alternatively, the business may only be owned by one person or it may be owned by a large group of people. It may be part of a very small industry or it may form part of a much larger industry.

According to the Australian Taxation Office a business is defined as any activity that is carried out on a regular basis with the intention of making a profit. In determining whether an activity is a business or just a hobby, the courts have provided some guidelines to help determine whether a business exists or whether it is, in fact, a hobby. Guidelines adopted by the courts include the following:

  • Does the activity have a significant commercial purpose or character?
  • Does the person have more than just an intention to engage in business?
  • Does the person have a purpose of profit as well as a prospect of profit?
  • Is there repetition and regularity to the activity?
  • Is the activity of the same kind and carried on in a similar manner to businesses in the same industry?
  •  Is the activity planned, organised and carried on in a business-like manner?
  • What is the size, scale and permanency of the activity?
  • Is the activity better described as a hobby, recreation or sporting activity?

Can you answer?

  1. Identify six businesses with which you have dealt with in the past week.
  2. Classify each of the businesses you identified as either small, medium or large businesses.
  3. Develop a list of criteria for determining the size of a business.
  4. Where could you go to find out information about starting your own business?
  5. What does it mean to run a business based on ethical principles?

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