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EMPLOYMENT RELATIONS UPDATE
When It's Time For Intervention
Poor performance should never be ignored. It doesn't just go away or get better on its own. Like any managerial issue, confronting unacceptable behaviour requires good preparation and follow-through. By working through potential concerns and having a plan of action, you can prepare yourself, and your employee, for a successful intervention. Let's start with the prep work. By using the following 10-point checklist, you can focus your time and energy to create a positive outcome.
- Personally ask the employee to meet with you. That doesn't mean asking your secretary to relay the mesage.
- Don't be evasive. Explain the purpose of the meeting so that the employee can also prepare for it.
- All good employers understand the importance of documenting performance and having records available to support claims of poor performance. Take the time to review your records and condense your supporting details. Prepare specific examples to support your claims. (MTA.ACT has a counselling form for this purpose).
- While reviewing your records, look for positive performance that you can also discuss. If this is a difficult task, ask the employee to discuss his positive contributions.
- Prepare a list of open-ended questions that will allow the employee to speak about their performance. Also prepare questions that will allow the employee to discuss their plan to improve.
- Try to anticipate reactions from your employee and prepare appropriate responses.
- Consider what excites and motivates your employee. If you don't know, it's time to ask. Then implement some motivating factors.
- Tell the employee what you plan to do to help them be successful. This may include training, resources, support or a mentoring relationship.
- Create a mutually agreed-upon written plan. Include specific expectations, time frames and consequences (both positive and negative).
- Follow through with both support and a meeting.
NEW PAY SCALES COMMENCING 1 OCTOBER 2008
The new pay scales commencing 1 October 2008 will be emailed to all financial MTA.ACT members towards the end of September 2008.
MTA FINANCIAL SOLUTIONS 
Global Credit Crisis?
Anyone who has a variable rate loan whether it be home loan, commercial loan or personal loan has all recently received letters from there lender increasing rates either above Reserve Bank levels and in many cases completely independent of them. Lenders are sighting anything from global credit crisis, increased market turmoil and liquidity issues through to simple increased funding costs leaving the people these increases effect most asking what does it all mean and why does it effect me?
Firstly, if this exercise has taught us nothing it is that banks borrow a lot of the money that they lend from the money market in much the same way as non-bank lenders do. The money market is essentially like every other market where there are suppliers (investors) and demanders (lending institutions and large public companies) and what has happened recently is the suppliers/investors of the money have lost confidence, and like with any market when demand is strong but supply limited, the price of the money increases and this is what is happening to our loans. The other thing that many people may have noticed recently is banks offering highly competitive and some might even say excessive term deposit rates, this is because it is still cheaper to obtain money this way rather than borrow it from the market.
The next question I think everyone is asking is how long is this going to last? Unfortunately most people are predicting this still has some time to run, with business and consumer confidence at 18 year lows, high oil prices, an unprecedented US property crisis and fears of a global recession most economists are predicting it will be quite sometime before the supply of money or liquidity in the market returns. The good news however for our hip pocket is that with the reduced confidence, the Reserve Bank I believe will look at cutting rates sooner rather than later in order to stimulate some growth in the economy, and even if the banks don’t pass on the rate drop immediately, the Reserve bank will continue to reduce rates or apply pressure on the banks until the actual cost of borrowing money is reduced.
My suggestions as part of all of this are to hang on as long as possible and while there is the obvious temptation to sell and reduce debt, this is a classic example of buying at the bottom of the market and selling at the top. At this point there are a lot of sellers, not a lot of buyers and prices are down, now is almost the perfect time to buy, with underlying demand for housing increasing constantly and recent drops in property prices many are predicting big things for property prices towards the end of 2009 and 2010. Should there be any questions relating to this article or how MTA Financial Solutions can ensure they are getting the best financial deal my staff and I can be contacted on 1300-724-622.
David Kelly
General Manager
MTAA SUPERANNUATION 
Steady as she goes: the MTAA Super ‘all-weather’ investment strategy
Even in challenging investment times, the MTAA Super Two Portfolio Strategy is designed to stay the course in all weathers, delivering long-term results to members.
If you have been taking notice of business news over the past several months, you will know that the sub-prime mortgage crisis and other factors have had a major impact on all investment markets. Falls have accelerated recently, and this has led to some panic in the press. The important thing to remember amidst the sensational headlines is that markets often experience significant fluctuations in returns over the short term. For this reason, you must view your super investment performance over the long term, and not just the last few weeks or months.
MTAA Super aims to maximise the long-term returns of members, while providing some protection against downturns in listed markets. As a forward-looking measure to achieve these performance goals, the Fund’s investment approach seeks an appropriate balance between investment returns and risk. And in order to strike this balance, MTAA Super holds two distinct investment portfolios: the Market Linked Portfolio and the Target Return Portfolio. Together they create the Two Portfolio Strategy.
Market Linked Portfolio
The Market Linked Portfolio invests in a wide range of sectors such as shares, fixed interest and cash within both domestic and international markets. These investments are measured against the relevant market index (benchmark) and generate returns that reflect market fluctuations through time. This portfolio seeks to modestly out-perform the key market indices with minimal risk and low management costs.
Target Return Portfolio
The Target Return Portfolio contains what are known as ‘unlisted’ asset classes, such as directly owned property, infrastructure, private equity, utilities and enhanced cash. Many of these assets deliver very stable income streams and tend to increase in value over the long term, providing this portfolio with a defensive quality.
For example, the stability in returns may be driven by long-term leasing arrangements in the case of property investments, or the monopolistic nature of many utility assets. So these unlisted assets comprise a low risk, strong return investment over the long term.
The frequency of valuations of individual assets in the Target Return Portfolio will vary. However, on average the assets in the Target Return Portfolio are valued once every three and a half months, to ensure their fair market value, which is measured against an absolute return target set by the Fund and reflecting the risks inherent to each asset. Assets within this Portfolio often help cushion members’ returns against short term fluctuations in listed markets, while providing returns that may be in line with or higher than listed equities over the long run. For further information visit www.mtaasuper.com.au/investments/investment-strategy/valuations
As you can see, the Target Return and Market Linked Portfolios work together under the Fund’s Two Portfolio Strategy to provide members with favourable returns over the long run, while aiming to help protect members’ accumulated retirement savings during listed equity market downturns.
Visit: www.mtaasuper.com.au
MTAA SUPER'S NEW CONTACT 
Ms Julie French
Industry Fund Financial Planner and Business Development contact
Telephone: 6273 4333
Mobile: 0414 340149
Email: jfrench@mail.ifs.net.au
THEFT TORQUE
Trialling First Option Salvage For Recyclers
The NMVTRC is proposing to trial a scheme which would provide first salvage sales to accredited automotive recycling businesses in an attempt to ensure the best salvage is only available to the legitimate trade, and criminals and illegal traders are effectively excluded.
The trial would operate under the supervision of the National Parts Code (NPC), which was established by the NMVTRC in 2004 to limit the opportunity for criminals to launder stolen parts via the legitimate supply chain. The trial has two main objectives:
- to provide legitimate recycling businesses with a tangible incentive to participate in the Motor Trades Association of Australia accreditation program and to comply with its requirements about the traceability of stock; and
- to provide a fairer market for legitimate traders by denying criminal and illegal traders access to the best salvage vehicles.
Under the trial certified recyclers would have first option on salvage sales through an internet based auction. Any unsold stock would then be returned to the public auction process.
The final details of the model are still being finalised in conjunction with insurers and auction houses. However the trial is expected to run for six months, with the NPC committing to a minimum of 200 certified recyclers at start-up with a target of certifying at least 300 participating businesses over the trial period.
ENVIRONMENTAL UPDATE 
An Environmental Management Plan –
Is it as hard as it sounds?
With all the “management plans” being required these days, it can seem impossible that an environmental one should have to exist. After all, how many plans can there possibly be? But there are some good reasons to have an Environmental Management Plan on hand, and it doesn’t need to take up any of your time to implement one.
What is an Environmental Management Plan?
An Environmental Management Plan puts environmental practices and objectives into a written format (namely, a checklist or anything else that works). This then serves to demonstrate a businesses’ commitment to the protection of the environment. Whilst many businesses actively protect the environment through everyday actions, it is important that the business records these actions and initiatives.
So you might be doing the right thing, but can you prove it? Completing a checklist every 6 months or so (or better yet, delegating someone to complete the checklist) can demonstrate environmental responsibility and prove consistent good behaviours or regular checks. Proving that the business is being proactive in preventing pollution is important if being audited by the industry regulator for environmental issues, Local Councils. It might just seem like another piece of paperwork, but it might just come in handy one day and can also be used as a training tool for younger technicians.
MTA’s Sample Environmental Management Plan
The MTA has a sample Environmental Management Plan which is available to Members to assist in the establishment of individual business Environmental Management Plans. Members are welcome to use the checklist provided, whether all or in part, and can add anything relevant or incorporate it into an Occupational Health and Safety check that may already be completed by the business.
The sample Environmental Management Plan is a tool for members to use in their business to ensure environmental legislative compliance and best practice. It is a baseline checklist, and there are plenty of additional steps and checks your business can take to improve its environmental efficiency. A sample is provided because, for many businesses, this baseline checklist will be enough to cover the basics. This sample may provide all your needs or at least get you started, either of which will save your business time.
To download the sample Environmental Management Plan, go to www.greenstamp.mtansw.com.au and click “Information Guides”. Alternatively, email greenstamp@mtansw.com.au or call the MTA on 02 9213 4222 to have one sent to you.
Implementation
An Environmental Management Plan should reflect legislative requirements, best practice guidelines and any initiatives that the business has. After establishing an appropriate checklist or similar document, a business can carry out the checks at the determined timeframes. The findings of the checks should always be reported back to management for implementation and, if appropriate, to all staff. If any action is needed it should be addressed as required (please note, the shaded action items in the checklist represent the most important/urgent items) before the next check is completed.
Reviews
It is crucial that the Environmental Management Plan is reviewed to ensure that all environmental impacts are being addressed and that scope is being made for continuous improvements. Businesses need to be undertaking steps to raise the level of environmental performance, which may mean setting goals of equipment upgrades or putting together training schedules. Each business needs to review the information gathered in the Environmental Management Plan checklist and make sure that required actions are completed.
So, it’s not as hard as it sounds ...
An Environmental Management Plan is simply putting what you already do in writing and opening up avenues for any required improvements. Use the MTA’s sample, or contact the MTA about putting one together specifically for your business requirements.
The MTA is running the Green Stamp Plus program in New South Wales and the Australian Capital Territory as a joint initiative with the Australian Government Department of Environment, Water, Heritage and the Arts. For more information please visit www.greenstamp.mtansw.com.au or call MTA on 02 9213 4222
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