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INDUSTRY INSIGHT A VOICE FOR FRANCHISING AND SMES IN CHALLENGING TIMES As pandemic restrictions endanger small businesses, efforts of the peak body for the franchise sector are helping to ease the struggle for companies and employees affected. ABy Franchise Council of Australia CEO Mary Aldred. lot has changed over the past months as our businesses and community have had to face the massive challenges created by restrictions to stop the spread of COVID-19. For the Franchise Council of Australia (FCA), it has meant stepping up our advocacy and activity to represent members’ interests and concerns to government while delivering timely information, business advice and practical support to help meet the trading and workplace challenges. The response from our members has been terrific, including more than a hundred emails and messages of thanks and congratulations, as well as significant positive feedback from government and media. We’ve taken a strong public stance on the key issues that have impacted on the sustainability of franchising and small/ medium sized businesses (SMEs), and the wellbeing of owners, managers and staff. Some of the key platforms have been: • The need for rental relief and government intervention as some landlords refused to negotiate despite the plight of their tenants, especially in retailing. • The need for tangible government support for businesses to help maintain staff and supplement their income as trading revenue evaporated. • Assisting with expert advice on managing staff working from home, including maintaining their commitment, morale and mental health. • Calling on the big food delivery networks experiencing a huge lift in volumes to help the struggling food retail and hospitality groups rather than profiteer. • Currently making strong representations to the federal government on the issue of redefining casual workers. We’re hopeful of an improved result. Definition of casual workers Industrial relations is at crunch point, 12 CONVENIENCE WORLD JUL, 2020 and the July court decision to redefine casual workers means we can’t put this conversation off any longer. Thousands of SMEs and hundreds of thousands of casual workers are going to be hurt by this decision, if left unanswered. Casual workers are paid a higher base wage, trading off sick leave and annual leave that permanent workers receive for a lower base wage. Putting casual workers on the same leave loadings as permanent workers will make it simply untenable for many businesses to keep them employed. Businesses will hit the wall, and employees will ultimately lose out. The FCA is hopeful of an improved outcome through its strong representations to the government on this issue. Calling for food delivery platforms to cut fees Most of Australia’s 90,000-plus individual franchised outlets are SMEs, employing 598,500 Australians. Many are in the food and hospitality sector, so when they struggle, there’s massive impact on the national economy. The FCA argued that unless the food delivery platforms reduced commissions to help sustain restaurants and food franchises, there was a risk that many would not be able to continue operation, with the threat of further major job losses. Relief for commercial tenants The FCA also welcomed the ACCC decision to allow tenants and landlords to collectively negotiate outcomes that optimise businesses’ ability to meet rental obligations. This will support SMEs’ ongoing sustainability in the face of COVID-19 trading impacts. The decision recognising the urgency for retailers and landlords to collectively negotiate rent relief was an excellent outcome following a joint application to the ACCC by the FCA along with the National Retail Association, Australian Hotels Association and the Pharmacy Guild. Looking to the future SMEs have been hit hard by COVID-19. Although restrictions are starting to be eased, the impacts on individual businesses and the economy nationally will be felt for some time. The FCA is continuing to work closely with government and other industry peak bodies to ensure the voice of franchising and small business is heard by government as we head down the path to economic recovery. About Mary Aldred Mary Aldred has been CEO of the Franchise Council of Australia, the peak body for the nation’s $184 billion franchise business segment, since April 2018, following extensive experience across government, industry and the corporate sectors. As CEO, Mary has led the FCA in developing and delivering strategic priorities to strengthen its role as an effective peak business organisation. As well as advocating for compliance and sustainability in franchising, Mary has positioned the FCA as a strong voice for the needs and concerns of small business and ensuring the profitability and growth of this vital contributor to the national economy.