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.
My post yesterday about promoting OK! and Who on newsagency receipts sparked emails and calls from suppliers and newsagents wanting to know more. It’s an easy process to included this free marketing collateral on receipts. It makes sense to get more value from the receipt than just as a record of a sale. Click on the image to the left to see a range of coupons we have prepared to trial in our newsagencies over the next few weeks. While we have done this promotion for years, the new coupons breathe new life into the opportunity.
