Newsagents are just starting to understand the implications of the new employment rules introduced by the federal government at the start of this year.
In addition to an increase to minimum length shifts, there are other changes which I am told significantly add to newsagency costs, especially in the slim margin area of newspaper home delivery.
In one case for which I have considerable data comparing wages and other costs for a full year, the newsagent is facing an increase thsi year in home delivery expenses of $85,000. Such an increase, if accurate, is unsustainable for this business.
Newsagents have little capacity to absorb cost increases in their home delivery businesses. They do not control the price of what they sell nor do they control the fee they charge for the service as these are set by newspaper publishers.
Newsagents made good strides in the 1990s on operational efficiency. There are not many additional gains to be made in this area.
So, with no opportunity to increase prices and limited opportunities to cut costs, newsagents will have no choice but to absorb and cost increase caused by the federal government changes.
Unless newsagents achieve concessions from the federal government or fair Work Australia, the only option is for newsagents themselves to work more hours in the newspaper delivery business since they will not be constrained by minimum shift times and the requirement to pay the higher per kilometre fees. This would take newsagents away from developing the business and spending time with their family. I wonder if the government thought through the implications of the changes.
Changing workplace conditions is complex and fraught with danger as both sides of politics in this country will know from what has happened over the last four years.
The latest changes are not good for newsagents. If allowed to stand without adjustment or relief, thousands of working families will be worse off. The economic knock-on effect will be considerable.
Newsagents need to organise themselves on this issue and consider using the considerable contact they have with Australians every week to get their message out to voters.
I sold my distribution business a few years ago. If I were affected today I’d be in contact with a raft of politicians and I’d be running a campaign to let my customers know how my small and local business has been hurt by poor policy work.
A footnote to this issue is the new newspaper distribution contracts many newsagents have just signed. Had newsagents been fully aware of the labour changes, I suspect more would not have signed. Some newsagents wonder about the timing of the contracts.
Mark…simply, many Newsagents will not be able to carry the extra workload, or the extra costs involved.The home delivery system will be under threat..and some may find themselves in court over contract non-compliance. If there is no respite, many will be forced to lose money.
Baz
Hence the two year’s leeway News has given itself to be accountable to agents in terms of certainty and sustainability.
Sign here so we can hedge our bets, but you can’t.
Mark do you have a spread sheet that anyone could use to see how much delivery cost are?
Nana does have a spreadsheet However costs are individual and can only be put case by case to the publisher. I have an individual spreadsheet on home delivery Incomes and costs if you wish to use it you can
Andy I will see if I can get permission to release this.
The key is to do a before and after calculation including all costs – labour, vehicle etc.
I am walking away from my run because of the change in cost structure. I have no choice. I cannot keep losing $1,000 a week with the new costs. Any newsagent who does not believe me will change their mind once they are visited by an inspector. Even if you think you are doing the right thing like us you will be shocked. The vehicle fees are a killer. The only way to bring them down is to buy vehicles yourself but that increases lease and other costs. A system which was working for us and our drivers is now stuffed. I approached the ANF to discuss this and they said they had more pressing issues. I wrote to their magazine but I doubt they will print my letter.
graham & mark thanks but i have received one from nanna thanks for your help
I cannot believe the lack of debate on this issue at this blog; as newsagents we are prepared to bitch about marketing groups, yet have had little discussion surrounding the massive increase in costs associated with home delivery.
I implore newsagents to start discussing this issue now; contact your association, find out if anything has been done; contact your local federal memeber and raise your concerns.
I Have a visit due from a Fairwork Inspector due shortly and I wait to see their demands with interest
Peter
I have done my calculations and am set to go from making $30,000 a year from my runs to losing $25,000 a year. I have to pay for more hours and higher vehicle costs. I think I can get the extra hours reduced if I make an application to fair work Australia but it appears unlikely I can cut my vehicle costs. Regardless, this is all taking time from running the business.
I wanted to sell later this year. Now, the chances of that have been reduced.
I agree with Mark and Vaughan, newsagents have their priorities wrong by not talking about this issue more.
Vaughan,
You and I share a federal MP (at least for one of your stores) and I find it a little bit frustrating that that member refuses to even acknowledge that she has received a number of emails from me (on the issues facing newsagents and the Australia Post issue in particular) let alone act on them. I am pleased but find it ironic that she has now decided to go to bat on the home delivery issue – perhaps being east of the tracks you may get a better response – I wish you luck.
I must admit I am totally in the dark with all this. The Fair Work website is as clear as mud. Being that there seems to be different rules for Companies, partnership, Sole traders etc, and different rules again depending on when the company was formed, I don’t even know if I am affected at all. Our association has not sent any info regarding this. We have one delivery driver getting paid the minimum 3 hours for a run that takes 2 hours a day. It has always been this way. What has changed to massively increase everyones delivery costs? I don’t know. I guess we’ll keep doing what we are doing until someone tells us different.
Vaughan Leonne maybe there has not been much of a discussion here is because a lot of us do not understand it or are just not effected by it .If home delivery died i would personally not loose any sleep
We would actually get MORE sleep.
Even though I sold my run a few years ago I have contacted my local member to put the newsagent case. We all should do this because of the suffering as a consequence of government driven changes.
Teenagers can now again work 90-min shifts between 3.30 and 6pm on school days.
Hopefully now jobs would be a bit easier for teens to get.