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LIFE MEMBERSHIP OF MTA.ACT 
Presentation to Denis Sargent by MTA.ACT President Peter Taylor
"There are times in an Association or organizations life when things change. One of these times occurs tonight at the annual general meeting of the MTA.-.ACT.
I take this opportunity to recognize a member of your organization who has over the past 35 years worked for the benefit of not only his own industry but the whole of the automotive industry in the ACT and beyond.
He is an original board member, a past president, has represented the organization as a lobbyist, advocate and at times a provocateur.
He is respected in a broad range of industry forums and associations, working at all times for the benefit of MTA-ACT.
I am of course speaking of Denis Sargent. Denis and his wife Denise have decided to take a well earned retirement.
It is with great pleasure that on behalf of the Board and members of MTA-ACT that in recognition of his commitment and loyal service we grant Denis -LIFE MEMBERSHIP of the Association."
PRESIDENT'S REPORT - AGM
As I come to the end of my second term as President of the MTA-ACT, I am pleased to report on the affairs and achievements of our association over the past 12 months.
I doubt any of us would disagree that we are living through some trying times, with news of the financial and economic woes of the world so often dominating the headlines.
In contrast, it is pleasing to be able to report that our Association has grown from strength to strength.
Projects which we embarked on last year are now starting to come to fruition, and at a time when other associations and organizations are suffering downturns in membership we have maintained a strong presence in the industry and wider community.
Financially, the Association continues to sit in a strong position, as reported in the audited accounts. The commitment to keep the Association’s finances in profit has again been achieved, largely through the diligence of our Executive Director.
Skills shortages in all facets of industry are a continuing concern, however our direct involvement in Regional Group Training has laid the foundation for a strong and ongoing presence in the future of trainees and apprentices.
Throughout the year, our Association has worked tirelessly with industry and government stakeholders, successfully lobbying on many issues to directly benefit members.
The Board of Directors has worked to ensure that the Association has not only been seen in the right places, but also heard. Both the Executive Director and I have worked to represent your interests at appropriate national meetings and on committees, and will endeavour to do so in future.
The major involvement of our Association in RGT is such that we have now engaged a Deputy Executive Director, ensuring an increased level of service and commitment to you, as a member.
The Association continues to strengthen its relationship with our business partners to ensure every opportunity and market advantage can be capitalized on, for the benefit of our members.
I would like to acknowledge the valuable assistance of key partners, including MTAA SUPER, COMMONWEALTH BANK, NRMA, SNEDDEN HALL and GALLOP, AUSWILD and CO CHARTERED ACCOUNTANTS, and CAPRICORN SOCIETY. The ongoing support of such organizations is paramount to the success of the Association and we look forward to your continued partnership in future.
Many thanks to our Executive Director Phil McGilvray and Office Manager Helen Jones for their continued efforts and commitment over the past year in ensuring the needs of members’ are met, if not exceeded. As mentioned in my previous correspondence, we extend a warm welcome to Bob Gardner, who has recently joined the team as our Deputy Executive Director.
It would also be remiss of me not to mention Tony Evans; our membership representative who many of you may have had contact with throughout the year.
Finally, no organization can exist without the continued support of our members. Thank you for your contributions and continued loyalty, in these recent tough times.
I am pleased to recommit the resources of the Association to ensure we meet or exceed your expectations.
Peter Taylor
President
MTA-ACT
MTA.ACT BOARD OF DIRECTORS
The annual general meeting of the MTA.ACT was held on Thursday 18 June at the Ainslie Function Centre. A great evening was had by all following the formalities, and I'm pleased to announce the appointment of the following directors for the ensuing year.
MTA President - Peter Taylor
MTA Vice President - Christine Macauley
New Car Division Chairman - John McGrath
Used Car Division Chairman - Paul McGuinness
Service Station Division Chairman - Peter Taylor
Tyre & Retreaders Division Chairman - Glenn Forrest
Auto Mechanical Division Chairman - John Whyte
Motorcycle Division - Christine Macauley
Brake, Clutch & Suspension Division Chairman - Rob Cunningham
Body Repair & Towing Division Chairman - Terry Geoghegan
Industry Standards - Jon Waterhouse
WELL DESERVED RETIREMENT
Members of the MTA and all who know him will join with us in wishing Dave and Eileen Wignall (BP Jamison) the very best in their retirement.
Dave’s franchisee agreement with BP concludes on Tuesday 30 June 2009 ending Dave’s 51 years in the industry. He started his working career with WB Freebody in Braddon way back in 1958, proprietor of Caltex Kippax from 1975 to 1987 and then jumping ship to join BP Australia at their Jamison site from 1987 until 2009.
Dave served on the MTA Service Station Committee for many years and we thank him sincerely for his contribution to the Association and the industry.
FROM THE EXECUTIVE DIRECTOR'S DESK 
Automotive Training Packages In Limbo
The 18th March 2009, will go down in automotive history as the point in time to which the industry was advised they would no longer have any say in the training packages for automotive apprentices.
The Federal government is sending out mixed messages as to the importance of the automotive industry to the Australian economy. On one hand in order to secure the long term future of the industry providing financial assistance in the order of $6.2 billion, established Ozcar to assist dealers with vehicle bailment arrangements, and on the other hand denies the automotive industry to have a stand along skills council, along with the Deputy Prime Minister Hon Julia Gillard MP announcing to everyone’s utter amazement and without any consultation, that the responsibility for future development and maintenance of the two automotive training packages AUR 08 for the Manufacturing sector and AUR 05 for Retail, Service and Repair, would be transferred to Manufacturing Skills Australia (MSA).
Previously the responsibility for the training packages was preformed by Automotive Training Australia (ATA), a national automotive advisory board established in 1990 through the joint efforts of three founding members; Federal Chamber of Automotive Industries (representing vehicle manufacturing and importers), Motor Trades Association of Australia (representing the retail, service and repair sectors) and the Australian Council of Trade Unions (representing unions involved in the automotive industry).
This decision spells the demise of ATA together with the industry knowledge and expertise within the training package, corporate knowledge and not to forget the efforts of committed industry representatives who gave up their valuable time and resources to participate in continuous improvements groups.
Currently there are some 1,500 apprentices and trainees covered by the AUR08 package and 30,500 apprentices and trainees within AUR05 package. Whilst there could be some justification to the transfer of the manufacturing training packages to MSA where one could argue MSA has some expertise, MSA has absolutely no experience within the Automotive Retail and Service industry. MSA has conducted some industry forums since the announcement where they advise attendee’s that in order to appease industry concerns they would commit to appointing two additional staff to assist in managing the industry training requirements, establish a sub committee to review areas of concern within the packages and advise the board, (but only after the board agrees that the matter should be referred to a sub committee), however refused to consider the appointment of any industry representative as directors
on the board despite their current constitution allowing the appointment of three such representatives. One has to question the commitment of MSA to ensuring the automotive industries future training requirements are adequately addressed through these measures announced so far.
MSA’s inability to understand industry requirements came to light through the production of a document relating to the issue of a restricted air conditioning licence arrangements for the decommissioning of vehicle air conditional system. It would appear that MSA document was drafted without any discussion with the Australian Refrigerant Council, nor would it seem with ATA or any State or Territory MTA. Upon review of the document, it certainly failed to adequately address industry concerns.
MTAA including all State and Territory MTA’s with support from FCAI and the Vehicle Division of the AMWU have condemned this decision, however further representations appears to have had little impact or hope that the Deputy Prime Minister will reconsider her decision.
Discussions between all stakeholders are currently underway in order to develop a strategy on how best to ensure that the automotive industry has some representation and input into the future training requirements for our industry. I hope to be able to provide additional information on these developments shortly.
MOTOR VEHICLE SERVICE & REPAIR INDUSTRY COMMITTEE
Election were conducted on Friday the 29th May 2009 for the position of Principal Representative to the Motor Vehicle Service & Repair Industry Code Administrative Committee.
It is with great pleaseure that I announce that Mr Jon Waterhouse of Reliance Automotive Services was duly elected. The committee is now fully constituted and comprises:
Danielle Krajina, Commissioner for Fair Trading (chair)
Phil McGilvray, MTA ACT (nominee of a peak industry body)
Jon Waterhouse, Reliance Automotive Services (representative of principals)
Udomsri (Toi) Low, Fair Trading Advisory Committee (representative of a peak consumer organisation)
Wayne Gosling (NRMA Motoring & Services) (second representative of a peak consumer organisation).
The first meeting of the committee is scheduled to be held in June.
ATO UPDATE
SUPERANNUATION GUARANTEE
The Australian Taxation Office (ATO) has determined that overtime will not be included when assessing an employer's liability for superannuation contributions on behalf of eligible employees. This view will be operative from 1 July 2009.
ATO review of Ordinary Time Earnings (OTE)
Due to the substantial change in legislation that required all employers to comply with the SGA Act from 1 July 2008 when assessing liability for 9% superannuation for eligible employees, the ATO commenced a review of its interpretation of OTE. In doing so it published a "Draft Superannuation Guarantee Ruling (SGR 2008/D2)" for comment. This draft ruling appeared to simply run the existing line in relation to OTE which included regular overtime.
Result of ATO review of OTE
The ATO has acceded to MTA and employer concerns on this issue and removed overtime in its entirety as a consideration in OTE when assessing an employer's liability for 9% superannuation. In addition it appears that allowances paid which the employer expects to be expended, such as tool allowance, is also not included in OTE. These two major alterations to the ATO position is a major win for MTA ( and other employers who placed submissions before the review). The ATO is to be congratulated on a common sense approach that will remove doubt for employers, streamline administration and improve compliance.
MTA have an Ordinary Time Earnings (OTE) Checklist available to members. Please give the MTA office a call for a copy to be either emailed or faxed to you.
EMPLOYMENT RELATIONS UPDATE
Q & A: FAIR DISMISSAL CODE FOR SMALL BUSINESS EMPLOYERS
From 1 July 2009 the unfair dismissal laws will change for all corporations. The aim of the Q & A is to inform members of these changes and how the Fair Dismissal Code works.
What is the definition of 'unfair dismissal'?
A dismissal is deemed to be unfair when it is harsh, unjust or unreasonable.
What size business can utilise the Fair Dismissal Code?
The Fair Dismissal Code was designed for use by small business employers. The Fair Work Act 2009 defines a small business employer as an employer with less than the equivalent of 15 full-time employees. An employer may have 16 employees; 3 of which are casuals working 15 hours perweek. This employer would be categorised as small business. It is also important to consider that associated entities are considered to be one entity for this purpose.
What if I have 15 employees or more?
Employers with the equivalent of 15 full time employees or more will be bound by the traditional rules of Procedural Fairness. There is also a 6 month qualifying period applicable, where an employee cannot make an unfair dismissal claim if they have less than 6 months continuous service with a corporation. MTA will provide more detail on procedural fairness in our next issue of E-News.
How will the Fair Dismissal Code affect terminations for small business employers?
Small business employers now have a Fair Dismissal Code to follow to ensure a dismissal is not deemed unfair. The qualifying period for employees of small business employers has also increased to 12 months. This means that if an employee has less than 12 months continuous service with a small business employer, they cannot make an unfair dismissal claim.
Are any employees excluded from making an unfair dismissal claim against a small business employer?
The following employees cannot make an unfair dismissal claim against a small business employer:
- An employee who has not completed the minimum qualifying period of 12 months
- Employees under a specified-task arrangement where the employee's work is no longer required
- Conclusion of the term for an employment contract for a fixed period is not considered to be a dismissal.
Can an employee being made redundant make an unfair dismissal claim?
As long as it is a genuine redundancy, an employee being made redundant cannot make an unfair dismissal claim. If an employer replaces an employee who has been made redundant, the job position will be seen to still exist and it was not a genuine redundancy.
Can I terminate an employee without notice for serious and wilful misconduct under the Fair Dismissal Code?
The Fair Dismissal CVode recognises summary dismissals in cases such as theft, fraud, violence and serious breaches of occupational health and safety. The employer must have reasonable grounds to show that the employee's conduct should warrant a summary dismissal. it is recommended that members in this situation contact the MTA for advice.
How does the Fair Dismissal Code work for termination other than summary dismissal?
The Fair Dismissal Code sets out what is expected of a small business employer when terminating an employee for a valid reason based on the employee's conduct or capacity to do a job. The Code states that the employer must warn the employee, preferably in writing, that they are at risk of being dismissed and why, and provide them with an opportunity to improve and rectify the problem. Part of this opportunity involves ensuring the employee understands the expectations of their job, and may also involve providing the employee with additional training.
When meeting with an employee to discuss a possible dismissal, the Fair Dismissal Code allows the employee to have another person, other than a lawyer acting in a professional capacity, to be present at the meeting for assistance. It is also important that during these meetings, the employee is given an opportunity to respond to the allegation. If the response is inadequate in the employer's view then the employer may move to terminate the employee's employment with notice.
If an employee makes an unfair dismissal claim, employers may be required to provide evidence that they have followed the Fair Dismissal Code, such as copies of written warnings, signed witness statements or a statement of termination. The Australian Government has also prepared a checklist for employers to complete to ensure that they have followed the Fair Dismissal Code. For a copy of this checklist, or for further assistance on the topic of unfair dismissals, please contact MTA on 2641 6266. ERIS subscribers will be able to download a copy of the checklist from the Termination section of ERIS as soon as the final version is available.
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