Kevin Beck Commentary and Articles
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| The performance of political, corporate, and public service, managers The fall from grace of politicians, governments, public servants, corporations, business and certain individuals in Australia Decling ethics, standards and morality - short termism |
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UNLESS OTHERWISE ATTRIBUTED THE MATERIAL HEREIN IS AUTHORED BY
Kevin Beck, Melbourne Australia Kevin Beck Commentary and Articles Counter DIGITS.com: All networked sites, forums and blogs owned by Kevin R Beck, incoming and outgoing content
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Globalisation Impacts Various Countries |
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 Go to Consumer Complaints Web Site  The spirit of Australia What the Qantas shakeup means: expert analysis |
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There are many articles written about the state of play of Australia's food and grocery market along with petrol and liquor. It is difficult to discern the truth and the facts. Suffice to begin that i start from a position where one should not assume that the word "Consumer" in the name of the Australian Competition, and Consumer Commission (ACCC), actually carries any weight within the political sphere of the operation of the Commission. The mere juxtapositioning of thew ords Competition over Consumer leads to thoughtful introspection about political motives and focus. CRAFTED INDEPENDENCE The ACCC is a carefully crafted structure that, on first blush, would appear to say that the Commission is an independent body. It is within a limited frame. The government of the day decides who and how. Consumer protection laws are policed by the states, who duck shove the hard stuff fingerpointing at the Commonwealth. Two primary examples demonstrate how the Australian consumer may be taken advantage of daily - petrol, now largely controlled by the two major retailers Coles and Woolworths and food and groceries, also controlled by the two major retailers. Their presence pervades the hotel, gaming and liquor, industries also. It is a nonsense that two retailers should continue to control 80% of the Australian food, grocery and fuel markets. It is a nonsense that these two enterprises place consumer interests before commercial and shareholder interests. We pay dearly for the political, and buraucratic, failures of successive governments - labor and coalition (liberal - national) in establsihing strong competition. Local and state governments bear a complicit responsibility. There is an element of the whiff of corruption whihc is exascerbated by the scandals of the NSW labor governnment era up until 2011. How common is the manipulation of local governments across Australia by vested business and political operators? Every few years the federal government of the day will have the ACCC conduct a study of the market. The ACCC will, it seems, always conclude that there is vibrant competition citing small privately owned chain retailers and Aldi as the proof. They also have a window dressing system to monitor petrol prices. In my personal view only the ACCC would conclude that there is no price and market manipulation. They should get out more. Across Australia the tw major enterprises are often the largest employer and business. In every electorate they are powerful. It would be naive to assume that local representatives, regional and state, representatives of the companies would not point this out to local politicians. There is debate around private labels in major supermarkets. Brand manufacturers claim they are being pushed out. Commentators and analysts point to the buying power of Woolworths and Coles. Do we believe that no coercion or persuasion is exercised on suppliers by buyers? Providing real transparency, would require us to know what the monetary commission, and incentive structures, the major chain retilers are paying their buyers. It would also require us to know how the retailers decide what will be carried on their shelves and under what conditions. It would be naive to assume that the buyers have no performance measurement in their contracts. What pressures do these contracts exert on the individual? Rumour and claims abound, and it may also be logically assumed of one takes the time to examine the market, that every supplier is subjected to a form of coercion. It might not be far fetched to assume that they fear reprisals if they object and speak out exposing the underbelly. Can they afford to be blacklisted or to have their contracts cancelled? The reprisals may well be blatant and subtle. Who knows if no one speaks out and the ACCC and state bodies sit on their hands. Are they waiting for a whistlblower? Businesses of size can be so subtle in their blackmail that is difficult to prove and it goes undetected. In small country towns across Australia farmers and others talk in muted and guarded tones. The supermarkets, the producers are among the biggest employers. They wield local power. The mantra today (2011) in Australuia by those who think all is well is that there is competition. The consumer comes first - so who is bearing the 50% reduction in the price of 4 litres of Australian olive oil? The supplier, the supermarket? If this can be done in so many cases then what is the real price that consumers should be paying for this and other products? I do not know. I wonder why i do not trust so many corporationsa nd their managers? Why am I sus[picious of the ACCC and political motivations? MISREPRESENTATION AND MISLEADING LABELLING Labelling is another area of legislative negligence and misleading practice. Australian labelling laws, in my view, conflict with the spirit of Australian Competition laws and trade practices act. labelling is a blatantly used to "manipulate" consumer sentiments, perceptions and buying. Australian law allows nebulous statements - for example "made from australian and imported products." What proportion is the imported against the Australian and what is/are the source/s? Other constituent elements such as "raspberry", but when we look there is only 2% raspberry. AAdded vitiamns and minerals imply health benefits that are probably non existent at this level. Many other similarly described products are exploiting the flexible fantasies, and misrepresentatioons, that Australian governments allow in our laws. Many argue that we pay too much for our food, and groceries yet most of the money, it seems, is not going to the producers and the manufacturers. Who is getting the lion share? IT IS OKAY TO LIE - OUR POLITICIANS AND THEIR ADVISERS DO Australian politicians, and governments, lie constantly and they deliberately manipulate thought and perception. They are very questionable in their morals and ethics. Our politicians lay the foundation for others to emulate the practice. There are many definitions of "corruption" and the current state of Australia's parliaments entrench poor practice and examples. (Kevin Beck, "Weak politicians, Governments and duopolies, Exploiting the Australian Consumer", Melbourne 2011 |
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again Gillard and her cohorts are not so clever Andrew Wilkie is an inrependent member of federal parliament with his electorate in Tasmania. He gave his vote to put labor and Julia Gillard into office. The price was that labor would enact a gambling limit scheme on poker machines. The establishment of a monitoring system to curb gambers with addctions On the face of it a nice public interest issue. However only very unclever, even dumb politicains, would enter into such an agreement. The argument put publicly to oppose this is the contribution to the local economy and the social fabric of communities, particularly in rural and regional centres. Thus the other independents balk and go acrefully. But what below the covers? These clubs have boards and those people have vested interests. The meat, drinks, services and other products bought by those clubs are invariably ona "scratch my back and I will scractch yours" arrangement. Most hopefully limit this to innocuous arrngmenets, But imagine hwo Directors and the vested interests react within the very large multi million dollar club empires? Their supplier contracts and arrangmenets are the ones that are threatened. They could give a toss about the plight of gamblers. Threaten their interests or close some of those club branches and watch the fur fly. It is typical of labor and the likes of Mr. Wilkie, who have no knowledge beyond their own myopic worlds to wander into this swamp. Gillard proves a gain she is not clever. (Kevin Beck, Melbourne Australia, "The Not So Clever Prime Minister", January 2012 |
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Corporations, and business managers, and boards, and brand label corporations and reatilers who buy direct from footwear, and clothing, manufacturers should be held liable to show cause why they should not be prosecuted for benefitting from slave labour. Australia's governments are disinterested, lazy and ineffectual in stamping employment slavery out. "If you’re wearing anything from Nike, Adidas, Puma, Fila or even some of our well-loved Australian brands like Bonds or Just Jeans, then it’s highly likely your clothes were made in places that most people would describe as sweatshops. What is a sweatshop? A sweatshop is a manufacturing facility where workers endure poor working conditions, long hours, low wages and other violations of labour rights." (Source: Oxfam, Are your clothes made in sweatshops?... click "The Queensland Government has tried to fix the lack of transparency in the outworking industry by introducing a compulsory code of practice. But not everyone has welcomed this move. .... LEIGH SALES, PRESENTER: Here is a story about the issue of sweat shops, not overseas, but in suburban streets across Australia. Tens of thousands of people are employed as outworkers in the clothing industry. Most are migrant women with limited English skills and little is known about their pay and working conditions. In Queensland, a compulsory code of practice has been introduced, but employers are up in arms, as Peter McCutcheon reports. PETER MCCUTCHEON, REPORTER: In the south-western suburbs of Brisbane is an industry hidden from view." (Source:Australian Broadcasting Corporation Broadcast: 18/08/2011, Reporter: Peter McCutcheon ... click here for video and transcript.. Horrendous' sweatshops ditched for Australian made George Roberts A Sydney charity has axed plans to have Australian-designed goods made in Chinese factories, citing concerns about exploitation. The Ted Noffs Foundation says conditions in some factories are horrendous. The foundation says every factory it visited in China recently used child labour, or had sweatshop conditions for workers. (Source: ABC News June 26, 2010) Australian Broadcasting Corporation, TV PROGRAM TRANSCRIPT, LOCATION: http://www.abc.net.au/7.30/content/2002/s684907.htm Broadcast: 24/09/2002, Sweatshop labour, Reporter: Mary Gearin KERRY O'BRIEN: The long-running trade union campaign to highlight claims of widespread sweatshop labour at home hit the news again today with 30 clothing manufacturers finding themselves in the Federal Court facing allegations of breached awards. Unions estimate 300,000 outworkers produce 80 per cent of Australian-made garments, most of them coming from Victoria." You will note the year 2002. This is not a matter that has just occurred in Australia, this has been occurring under every Australian state, territory and federal government's nose for decades. Above is evidence that Australia's politicians, and governments, are very sub standard on their ability, and willingness, to protect people from the crooks, and greedy businesses, that sell us the consumers cheap clothes and shoes. Are we blind to the prospect that someone has been exploited to give us those cheap tee shirts, socks and jocks or do we just not care? The Ethical Clothing Australia group are trying where Austarlia's governments have failed. |
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AUSTRALIAN CORPORATE MANAGEMENT MEDIOCRITY It is easy to be a prick when you are very secure in your finances “When you wake up in the morning, tell yourself: The people I deal with today will be meddling, ungrateful, arrogant, dishonest, jealous and surly.” (Marcus Aurelius, Roman Emperor, 180AD) FOR ME QANTAS HAD ALREADY LOST ITS GLOSS AND APPEAL BEFORE THE BOARD AND JOYCE MADE IT EVEN MORE ANNOYING There was a time, decades ago, when, after being away from home for weeks on end, I would walk into the Qantas terminal in Hawaii, or Los Angeles or London or, Frankfurt and Bangkok, and I would feel like I was home. Qantas was not a government owned enterprise it was Qantas. I had only ever flown Qantas and its partner airlines. In Australia I have never flown Ansett. As the years went by I still did not fly any other airline except Hazelton to a location, in regional Victoria, not serviced by Qantas. Then Compass, Virgin, Tiger and Jetstar and all the others came along, some went. The Board, and CEO, started to change the nature of the airline particularly when Jetstar came on the scene. Qantas forced me to fly Jetstar, a low grade airline to my mind of little quality and almost no attraction. I flew Jetstar to Bali and to Nooosa, I had no real choice. I had to fly with anyone who could afford a ten dollar ticket. The lounges are shut in Darwin when a Qantas flight is not scheduled. They do not open them for Jetsar passengers who may be Qantas Club members. I made no FF points and I made no status credits on those flights. Thus I could never maintain the status level if I had to do business where only Jetstar went. In 2011 Qantas changed this stupidity but it was not made retrospective. About 2009 the Frequent Flyer division of Qantas began flexing its muscles and internal power. It has further degraded my perception of Qantas. The frequent flyer division does not operate a "loyalty programme" of mutual reciprocity. It is a business within Qantas. The FF division, and its antics and machinations, made the lounge membership of little value to me even when I got it for free which I did for years and years. By 2009 - 2010 Qantas management, and the FF people, had destroyed the bond and Qantas became just another option. Driving instead to Canberra, Sydney and Adelaide, and seeing the country, and spending more on a nice hotel along the way has become of greater value and significance. Emirates, and Etihad, offer better value and experience and Singapore Airlines, and many other competitors, including Virgin have made their entreaties to Qantas long life members. Qantas, and its FF, seem oblivious to this. In 2011 the Qantas brand was dead to me as a significant service offering. Yet I still booked Qantas to go to Hong Kong and they upgraded me to business class. They did this without me asking. Yet the gift whilst appreciated stilldid not overcome my disdain for the Board and uts management and the FF division. Why is this? Virgin offer Qantas members equal status and much cheaper lounge membership. They fly on timea nd give preference to club members. Qantas does not, they require people to relate to machines, the check in counters are gone. There are cuesa nd ropes and Qantas people who tell you that you cannot be in this line because now the Club memebesrhip is of no status. But still the memory of Qantas lingers. I have a view that there are, in these modern days, those who build things from the ground up (creating icons) and those who take them over. These people then chage things. They tell stories about why they have to to do this. They join the PR spin game and become just like the corporate club that not too many consumers like. Jetstar, owned by Qantas, is a cheap airline, not a budget airline. There is a different connotation. For me flying Jetstar is a poor experence even before I get near the airport. Even lower down the chain is Tiger. I know longer call Qantas home. But I wait in anticipation to see if qantas realise this? |
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November 2011: Qantas, and the unions, had to be taken into a court and directed to cease their antics and bargain for an industrial resolution. Such is the level of maturity displayed by those who have power over our every day lives in Australia. Watching the little men, with the big egos, flex their muscles, backed up by their big organisations leads me to think that these people wouldactually be powerless and inconsequential as sole individuals. They are effectively nothing without their enterprises. One can track the history of destructive behaviour of the careers of those involved in Boards and management of Australia's corporations. The suited thugs, the ego maniacs and the ideologs. All are great at running things when it is all going well but then they have to fiddle. They are really good at the destruction of the enterprises without having the ability to build anything. Look at Australia's icons if you can now find any. The Australian business media actually rarely investigate the history of destruction or the reality of ability. They fail to anticipate the events that have shown many of our business high profile types to be crooks and incompetents. The regulators too have failed. The ones who suffer are the general public. Billions lost and we have ben anaethetised against reacting. In frustration the powerlesws make noise and occupy public space. The politicians and business leaders sniff derisively. The club meanders on. MANAGEMENT ETHOS AND IDEOLOGY - EVERYTHING HAS TO BE CHEAP AND LOW BROW It may have escaped the CEO of Qantas (but I doubt that) that the airline is intertwined into everys ector of the economy. What has happened here is that he and the Board have placed their interests above that of the individual and the nation. All care but no responsibility. This is the danger inherent in the ntion of limited liability and the corporate as "legal individual". It is far easier to be a prick when your salary, benefits and superannuation are secure and always there, independent of what you may do or how you may behave. If you are making and salting away millions then you will likely become risk oriented and daring. What is the worst than can happen here to the Board and the CEO and management of Qantas, the leaders of the unions, and the Ministers of governments? That they are pariahs for a moment or two? That they are called names? What is the downside? Do they have to pay, and compensate, those who they afflict? Do they risk jail? The Qantas Board, and management, and the union leaders and other apparatchiks, involved in this asenine industrial game of brinkmanship are not the only ones in Australia who have questionable abilities. The nation's corporate managers wnat all the rewards but are fundamentally scrooges having a cheap mentality and ethos. According to the Qantas CEO we must all go down market and get cheap because Australia's mass consumers, who are fundamentally ignorant of the dynamics of running an airline demand cheap, no frills service but absolute safety and subservience. So if it is all cheap how does one gaurantee service quality and how is a brand premium? "Qantas Customer Charter Our Commitment to You We are Australia's leading premium airline and we are dedicated to being the best. We aim to meet your expectations every time you fly, and so we continue to invest in our business and will always strive to provide you with an exceptional level of service. With this charter, we want you to know what you can expect whenever you choose to fly on a Qantas (QF) coded service from anywhere in Australia. Below we set out our commitment to you and provide links to our website where more detailed information is available. Find out more about our full customer offering. 1. We will never compromise on safety Safety will always be our first priority. We will never do anything that undermines this core commitment. 2. We are committed to getting you and your bags to your destination on time Our aim is to get you to your destination on time, every time, with your baggage. We invest significantly in flight punctuality and led the industry in on-time domestic departures and arrivals in 2009. 3. We will look after you if things don't go as planned Delays and Cancellations We are committed to on time performance however sometimes bad weather, natural disasters, technical problems, operational and other issues can cause flight delays and even cancellations. If this happens, we will do all we can to fix the problem and keep you informed of developments and the choices that are available to you." (Extract from the Qantas Customer Service Charter http://www.qantas.com.au/travel/airlines/customer-charter/global/en) |
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INDUSTRIAL RELATIONS & METHODOLOGIES - VACANT MINDS AND THE SAME OLD CRAP SYSTEMS DRESSED UP AGAIN AND AGAIN It seems that Australia's governments (and opposition parties) cannot work out a solid, decent, and functioning, industrial relations system that everyone will accept and work by. They have been at it for decades. Gillard has given us the Fair Work system. It too is mediocre, lacking in innovative thinking and is just a reprint of labor's aged policies and ideas. Tony Abbott does not even have an industrial relations policy yet that does not stop him babbling on as if he did. Australia's big company managers cannot develop and run decent businesses of quality and continuity whilst engaging with employees effectively. They give lip service to human relations management and the HR people in the companies are nothing more than sycophants to management. No one can be trusted today. "Frustrations and anger spilled over as hundreds of stranded passengers at Perth domestic and international airports yesterday scrambled to recover costs and reorganise travel plans after the entire Qantas fleet was grounded on Saturday. Some were crying, others paced anxiously but all were forced to join long queues to find out how quickly they could get their itineraries back on track and return home or continue with planned holidays, weddings and business trips. Passengers with nowhere else to go chose to sleep across chairs and benches as hundreds more sat with piles of luggage, exhausted, waiting for updates from Qantas." (source of extract: au.news.yahoo.com.au, Anger spills over at airport JAYNE RICKARD and MEGAN BAILEY, The West Australian October 31, 2011, 2:47 am) LETS NOT JUST CONCENTRATE ON THE IMPACT ON AIRLINE PASSENGERS What about the effect on Australia's tourism operators and businesses of the particular reckless action by Qantas CEO approved by the Board? The hubris displayed in Australia's corporate boardrooms has been a feature of life here for decades. It was hubris that brought us the Global Financial Crisis and it is hubris that has brought us here. "Queensland Tourism Minister Jan Jarratt says the Qantas dispute has forced the State Government and tourism operators into damage control mode. The state's tourism authorities say the Qantas industrial action could cripple the industry. Ms Jarratt says the temporary grounding of the airline's national fleet will have lasting effects on tourism. She says all agencies need to double their efforts to restore Australia's image as a reliable destination. "We really will need to rebuild the brand name and the confidence in the brand name and partly that's Qantas' role, but Queensland has also suffered, as has the name of Australia," she said." (Source of extract: ABC News - Qantas woes could 'cripple' Qld tourism industry Updated October 31, 2011 11:42:49) RETAIL AND SERVICES JUST AS APPALLING Below in this site you will see many references to the ignorant and appalling performance of the nation's businesses, from telecommunications to services. The retail sector bleats about people buying from the internet without looking a their own myopia, lack of imagination and service delivery. For decades Myer has been the butt of consumer's quips - Myer has no staff. The two giant supermarkets, Coels and Woolworths, make shopping a drag of an experience through rows of unimaginative presentations. Coles has triesd to reinvent thesmelves at places like Flemington in Melbourne but it is merely window dressing without substance beneath. How is it that Coles can offer 4 cents a litre off fuel if we spend $30.00 and another 4 cents if you spend $2 in the Coles Express shop at the petrol station? The ACCC is useless as a regulator watch dog unable to rap their minds around market realities. They must all sit in their offices and visualise what the real world is like. WHERE IS THE ACCC AS QANTAS GROUNDS ITS FLEET? Has Qantas management allowed tickets to be sold whilst having knowledge that they would not be fulfiling those purchases? The ACCC has not shown its head in this dispute. Why? It will when the political heat intensifies. I have an expectation that qantas will appease the ACCC on any demands for compensation. The cost of this exercise I would think would be circa $A75,000,000+. (Kevin R Beck, "Being a prick is the hallmark of a great business manager", Melbourne Australia) |
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Across the world a movement of protesters is occupying public spaces. There is a common theme "we are the 99%". Their placards decry "the greedy corporation". The majority of medium, big business, politicians and governments and those who control decisions, and wealth, could care less. The power collective (a nebuulus conglomeration) have manipulated and distorted the market to suit their objectives. Along the way they have corroded and corrupted almost every aspect of modern society. The ballooning crisis of debt in banks, and the failure, within governments, seems of little concern to the Wall Street lot and the companies making massive profits. Shareholders are greedy and they will demand their rewards all too often turning a blind eye or being powerless themselves. They have to participate. Within some financial groups management are creating ethical operations. Corporations have been made real persons by laws and it is this that has lead us to the brink of mass resistance and riots. Humans hide within these legal structures. Ultimately the greedy and incompetent, the criminals and the unethical hide behind the corporate wall. The way the media reports things is "Qantas today said", "BHP issued a statement", "Wall Street is...", these lifeless things are being imbued with personality and character. We mostly cannot discern the human and point at them. This is deliberate. The rare examples are those business people like Branson, Jobs, Murdoch, Buffett and Gates. People who stand out in front, there are many more but they do not get the publicity. The Global Financial Crisis and breakdown in social capital and structure, is a product of the failure of American, and European, leadership and parliaments. A FRUITLESS ENDEAVOUR FOR PROTESTERS The protesters are largely powerless in their communities. They seek a cause, a menaingful community and set of goals. They cannot go into the boradrooms and the bureaucracies and bring about change so they gather in public places and cap, they march and they get media attention. The message is nebulous, the objective unachievable if they have an objective. What is the objective? They cannot define it. Then there are the people who never create things and then want a share as if this is an egalitarian right. They want pay rises like the chiefs but they are powerless to get them unless they are a union building things and holding corporations to ransom. The unions (note I use the generic as if they persons) who do that are effectively an extension of the protesters. They have real power over the greedy bosses and the sycophantic managers. But they too are localised. The issues that the protesters are raising are national and global. They are about the system and how it has been nurtured and made into a beast beyond control. The socialist resonates with the fight. Yet the evidence put forward by academics is that socialism fails against capitalism. The wall came down in Germany, Gaddafi falls, The Middle East riots against despots, Cuba teeters on the edge, the Soviet empire disperses and China embraces the world and so it goes. WHAT IS THE TIME LIMIT FOR FREE SPEECH AND WHO DECIDES? The Lord Mayor, of Melbourne, Robert Doyle, enters the debate, unfortunately derisively belittling the spokesperson when he claims that the "movement has opened up this public space". Doyle quips sarcastically that it was open before they occupied it. The protester has spoken in tongues, erudite romanticism andnebulous ideology. He cannot artoculate beyond we are the 99%. He offers no solutions. They all offer no solutions. Doyle has been galvanised by commercial rate payers who complain these people, camping in the City Square, are affecting their business. The protesters have been running a kitchen feeding the homeless. All of this is lost in the cacophony of slogans and chanting. In the end feeding the homeless is ignored by the self interested who are not associated with the movement. That is the essence of what happens in these campaigns, small businesses are hurt, not large corporations. People become bored and amusement turns to anger at being inconvenienced. The average need the job that the "greedy corporation" offers. Every one has their price. The majority stay away from the protesters who challenge their routines and harmony. Many people want to put the problems of society out of their minds because they are powerless, in their thinking, to do something about it. Look at how labor and Gillard simply ignore the masses as an example of the irrelevance oo what the majority may think or want. The rich and pwerful know what is best. The Mayor (seemingly) unilaterally, decides that the protesters, camping in the Melbourne City Square, have had enough time. Well we canno tell if it was not unilateral because the "cowards" stay out of the limelight. Robert says that the city of Melbourne's City Sqaure, must be returned to the public. The police come in. The feelings of frustration, rage, detachment, and disenfranchisement from participation in society, are reinforced in the mind sets of the protesters> Ted Ballieu Victoria's Premier does not appear, address or talk to the crowd to gain an undetstanding of their feelings. Ballieu has no idea what to do. His advisers are as vacant. In failing to confront and talk he reinforces the perception, in many, that he is just another "grey, bland plasticine politican", failing to bring a visionary, and refreshing, approach to the role of Premier. He is not a leader of the people. He is a part of what they are protesting about and is for many another parasite on the public purse along witb man others in public life. The Premier allowed the Lord Mayor to take the running risking confrontation. The Lod Mayor is an ex politician. Eventually the protesters will give up but under neath the festering cancer of rage and belittlement will bubble away bursting out in many different forms. The govenments of Australia, the corporate bosses and the police and public servants are ill equipped to deal with this eventuality as we saw in the United Kingdom. They simplt stood back until it was all burnt and then wnet on as if it was a glitch in the system. (Kevin Beck, "Voices Against the Greedy Corporation", October 2011. |
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The destruction of an Australian icon and its spirit Let me begin by stating that I have been a member of the Qantas Frequent Flyer and Qantas Club programmes since 1990. I came across to Qantas when it acquired Australian Airlines in the late 1980s. I have flown Qantas, and its partner airlines, for decades. In that time I have flown Ansett (now defunct) once and Virgin, once. I noticed a deterioration in my loyalty for Qantas and the management (not the actual staff on the ground) around 1995 and since then as far as I am concerned it has gone downhill. My sidain for the faceless Frequent Flyer division is even more toxic. Today, with the former boss of discount airline Jetstar at its helm for me it has hit rock bottom. I am no longer a Qantas Club member and see no value in renewing. I am conflicted somehwat since Qantas staff (behind the scenes without any request from me) upgraded me from Hong Kong when I last flew. My angst is against the management, yet I hold off going elsewhere in the vain hope that Qantas management might notice that some of us are leaving. It has also irked me that I do not get status credits for every ticket that I pay for. MY view is that if I buy tickets for people who are not FF members I as the purchaser should get the FF and status. I have written to qantas management about this and it falls on deaf ears. I would meet my annual status level requirement if this was policy. I now would rather drive to Canberra, Sydney and Adelaide than fly. I now get FF points by osmosis through all of the affiliate programmes I cannot be bothered changing, hotels, shopping, phones etc. Virgin, and Singapore, made me an offer of equal status at no charge and a $150 discount on the club membership, plus other deals. Virgin, I note Virgin flies on time with regularity. Qantas too often, does not. The point of decline I think began when management at Qantas started cancelling routes and transferring them to Jetstar. I had to fly Jetstar to Noosa and to Asia (Bali) and it was a demeaning and low grade experience. I had to fly Singapore to Thailand because Qantas schedules were not flexible ebnough. I received no points, and status, credit recognition for zNoosa or bali from Jetstar Qantas. Qantas decided to recognise these flights some months back for award points but did not give retrospectivity. They still give no status credits for Flying Jetstar. Because Qantas flights are not scheduled into Darwin at the same time as Jetstar, the Qantas Club is not open and thus QC members, forced to fly Jetstar, have to sit in the baggage area and wait from 2am to 7am. What is the value proposition for using Jetstar - cheap but offset by nasty? Qantas is having extreme industrial relations problems in October 2011. From my view when a management loses its employees it is their fault. That is why they get the big bucks. The Qantas CEO Mr Joyce made an unedifying statement on television about how he made more money at Jetsar than he does at Qantas. He apparently was piqued at claims he is well paid. However I read it as how the Board values his services perhaps? I don't know why this is the case but why bring it up? Some people think being paid milions is excesive and greedy. International benchmarking, attarcting talent etc is for many lower paid people, just the "corporate club" maintining a global status quo for the lucky members. Does Mr Joyce get demerits and salary reduction for the fiasco he is creating at this time? Every day, more and more unions (some very conservative) become enraged, and engaged, in industrial activity. The CEO has a woman spokesperson who gets on television and puts the corporate line. It seems that Qantas is folowing a flawed PR play book, and that it has not yet dawned on them that the public is wise to the "air head - practiced rote - memorising the mantra and the spiel". Needless to say if one wants certainty one flies Virgin. The justification for this unedifying public brawl and failure in fundamental human relations and management at Qantas is sheeted home to employees who it is claimed do not accept the need to be internationally competitive. The usual suspects commenting on the side tut tut that Joyce is right and the Board is right and the employees need to buckle under. It is probably very irksome to those who work at Jetstar to be paid much less than those who work at Qantas? The world, and its corporate management mantra, and decision focus, is cheap so we all have to go cheap too. Flying actually should be expensive because it is expensive. Then we have the economic effects of the Qantas corporate model. Under the cheap airline model people with disposable incomes measured in tens of dollars should be flooded into high value locations, such as Noosa, causing those with disposable dollars in the thousands to evacuate over time. This is an exercise in economy destruction at the local level. Noosa once a quality destination now caters for the budget customer, including those who may from time to time urinate in the aisles of the aircraft. I think that there are lot of people, now in Australian corporate and political life, who actually have never built anything of iconic status. Unfortunately they are now in charge of the icons. They seem exceptionally good at destroying them slowly and effectively. As I close this rant I am thinking of the print advertisement for Qantas business and skybed, it is a baby asleep on the bed. Is this the new customer in business class or is the message - the beds are so soft? (Kevin Beck, Killing the Spirit Icon, Melbourne 2011) |
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In the absence of any credible action by the ACCC and Australia's state and federal governments If Coles Managing Director, Mr. Ian McLeod, is to be beleived Coles is now the consumer's friend. Mr McLeod asserts that the multinational food giants have been ripping the Australian consumer off for years. Major brands entered the heated debate accusing the major supermarkets (Coels and Woolworths) of using their market power to squeeze the companies. The inference is that the Australians are the emanest and most contrary in the wrold to do business with. It is actually good if some force, other than the regulator, comes to bear to push prices down and to raise competition levels. The Australian Competition and Consumer Commission (ACCC) which, like the Australian Securities and Investment Commission, resides in another galaxy. The ACCC is of the view that the two retailers controlling 80% of the market is not an issue and that competition abounds. I do not view the ACCC as Australia's brightest, and most diligent, public service domain. It is preposterous that two companies should control food, liquor, petrol and expand at will into new domains under the nose of the ACCC and the governments of Australia. They view the expansion of Aldi (despite tortoise like slow, and onerous, approval conditions and local government legal barriers) as quite adequate and the independents (IGA) are apparently able to fend for themselves. In the United Kingdom there are four major players and that is considered too narrow. The government there has appointed a supermarket ombudsman. (Kevin Beck, Melbourne Australia, "ACCC in a galaxy far far away, 2011") |
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Every day we see a display of distasteful behaviour, and contemptuous lack of ethics, by the most senior members of Australia's governments, corporations and enterprises. CONTEMPT FOR PEOPLE WHO WANT TO PARTICIOPATE IN GOVERNMENT A convoy of disgruntled voters descended on the federal parliament in Canberra yesterday. All the labor government, under the questionable moral compass of Julia Gillard could offer in response was vitriole, contempt and insults via Minister Anthony Albanese. Ms Gillard ratifies this ongoingh theme of contempt by her silent permission. Minister Albanese ridiculed the people, who at great cost, had come to voice their concers and grievances and to participate in their democracy and government. There is a process that governments and bureaucracy like. It is to communicate and negotiate through an "association" or "representative". The only time a politician likes to meet one on one is (a) with a constituent (b) with a rich person, media baron, powerful entreprenur or a celebrity. demonstrators, really! Yet in this modern age the individual can actually wreak ongoing atention diversion and soemtimes reputational, economic and brand damage on the entity. Thus the response described below by a federal labor government Minister is naive, ignorant and ultimately fool hardy. "Stern message articulated, BY DAVID BUTLER, 24 Aug, 2011 09:26 AM THE Federal Transport Minister Anthony Albanese might have passed it off as the “Convoy of no Consequence,” but Brisbane truckie Ken Wilkie reckons it was worth every bit of the time and expense it cost him. “I would say to all politicians, wipe us off as being a failure at your own peril, we represent thousands upon thousands of people who weren’t able to be here. Had they been with my convoy coming through Sydney on Sunday morning, they would have been absolutely astounded,” Mr Wilkie said.“The number of people on overhead bridges, the number of people on the sides of roads waving to us: they can’t all be here (in Canberra), but my word aren’t they backing us.” An owner-driver since 1974, Mr Wilkie became increasingly fed up with what he saw as a government out of touch with the will of the Australian people, and particularly small business owners. He volunteered to lead the white convoy." (source: Goulburn Post, NSW newspaper) To my mind Albanese represents the low quality of Ministerial performance, behaviour and public service that now permeates every level of all governments (federal, state, territory and local) across Australia, most notably in the Australian Labor Party. Mr. Albanese forgets his place. He is a public servant not a prince of the establishment. There are now quite a number of poor quality representatives, with little or no manners, in the nation's parliaments. They are not to be loathed, they can be pitied and/or ignored. (Kevin Beck, "The Quality of Representation in Australia's Parliaments", August 2011, Melbourne Australia) |
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As hundreds of workers in Victoria learnt that tehir jobs and livelihood are to be taken away by their employer's decision to close the export steel facility at Hastings, executives at the company prepare to bank their bonuses totalling about $A3,000,000. A spokesperson for the company babbled on about small percentages, reduction of expenses and other small favours that justify the payments. "BlueScope defends bonuses amid job cuts BlueScope executives received more than $3 million in bonuses in the year to June, ABC News Australia: Nick McLaren BlueScope Steel has defended paying executive bonuses despite announcing it would axe 1,000 jobs. Independent Senator Nick Xenophon and Australian Workers Union boss Paul Howes have labelled the bonuses as "obscene" and "unbelievable". BlueScope executives received more than $3 million in bonuses in the year to June, including about $720,000 paid to chief executive Paul O'Malley. The company says the CEO's fixed pay increased by 1.34 per cent and he did not receive any bonus based on its financial results. BlueScope says the bonuses paid to Australian-based executives fell more than 10 per cent in the past financial year. But Senator Xenophon is urging the Government to reduce its compensation for the company by at least that amount. "I'll be contacting BlueScope and asking them to justify these outrageous bonuses," he said. "There's something wrong with corporate governance in this country if they can do this. "On the one hand, you sack 1,000 workers; on the other, you're willing to pay yourself huge executive bonuses." (Source ABC News, 24 August, 2011) In the world of business it appears logical that a bonus is paid if an executive can reduce costs and a loss is loss tha expected. One may well question why a bonus is paid, on top of salary, to an executve who presides over losses. If the executive is brought in to (who did not create the loss through their own management and decisions) rehabilitate a corporation then that is defensible. The problem for corporations and boards is that what is logical to them and reasonable is not so for the ordinary person particularly in sales, production and manufacturing. A corporation or any business makes its money from employees yet when we examine the operation of the modern corporation we see the senior management demanding much of the employee whilst themeselves creating facades and justifications for their arduous existence. Decisions by management are apparently always more important, more important than actually doing the job of selling, producing or manufacturing. Most executives do not own the capital in the enterprise exceopt where it is given to them as part of their package. The human resources |
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Tony Abbott, leader of the opposition in the Australian parliament, has stated that the hacking of a telecommunications infrastructure builder's web site demonstrates that the National Broadband Network is vulnerable to cyber attack wrecking Australia's technology infrastructure. This is yet another off the top of his head statement lacking in fact and reality. Tony Abbott has made such utterances a trade mark. This raises questions as to motive, and suitability, for the top job as Prime Minister. Gaffs, and stupidity, are not irregular events in Tony's political performance, they are more common place. The whole coalition drivel about their proposals for high speed state of the art broadband telecommunications is founded on the "little knowledge is dangerous" principle. Perhaps Tony, and Malcolm Turnbull, have very limited experience accessing wireless mobile telehones, and wireless broadband, in suburbs of Australian capital cties and regional and remote places. Perhaps they are not aware what happens when a myriad of users of Apple products come on line in a designated area where there is insufficient capacity, and resources, in the exchanges and the wireles spectrum? Downloads are measured in kilobits not megabits and voice is garbled, thes ignal strength often a bar or two. Perhaps they have limited experience being a customer of Optus or Vodaphone. If their pontificating includes using these suppliers as planks in their policy, then my advice, and that of many customers', might be, they better think again. The ACCC obviously takes a dim view of the professionalism, and integrity, of these companies, among others. Parliamentary debate, and the selling of policy to the public, has generated into a PR fest and a personal agenda between a small number of egotistical politicians. Greg Combet cannot have a conversation about carbon tax without rabbiting on about Abbott. The debate is often immature and unpprofessional. The majority of parliamentary members are excluded as parliaments become the personal playgrounds of a select few. Unfortunately for the nation the select few are seemingly incompetent. Wayne Swan has been extolling the virtues of the labor government economic credentials and policies. There is a glossing over, and a fudging, of reality as the mining boom is used to cover a collapsing retail and services sector. Disingenuous "two spped" economy tags hide the truth. The labor party has built school halls and wasted billions, put in pink bats and wasted billions and has largely ignored infrastructure with the exception of their NBN. A nation runs on infrastructure which is at the heart of productivity. Swan. Gilard, Combet et al seem to have no clue what real productivity means ina modern economy. The misrepresentations, and fantasy, of Mr. Swan, and others in government, were exposed in the consumer price index publication, July 27, 2011, which some commentators said no one had predicted. This is simply not true, some had predicted such events but are disregarded by the mainstream, political and economic club and the Canberra press gallery. The senior politicians of the nation are using every attempt to have a shot at each regardless of how much they are distoring events, facts and reality in favour of their agendas. (Kevin Beck "Personal Agendas and the Decline of Governance in Australia" July 2011 |
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At least once a year the federal Health Ministerv will ring his or her hands and look serious about the demands of the private health funds for a rise in premiums. Here in Australia the federal government has to approve rises in premiums. It is a heavily regulated sector. The general theory, for all political parties, is that subsidising helath funds via the rebate system or other mechanism will take pressure off the public health system. Nice theory but unfortunatley the cash strapped pubic health system also goes after the privately insured to get cash into their public hospitals. How many preferred providers can there be before the preferred provider effectively means nothing? As far as I can see every registered serbvice provider - medical, dental, ancillary and hospital, seems to be a preferred provider. I have asked this question of the Australian Consumer and Competition Commission (ACCC), of the government Ministries and agencies and of the Private Health Ombudsman and the private health fund regulator and got either no response or in the case of the ACCC a bureaucratic distancing response where the first part of their ltter is a dissertation on what the ACCC does as if I am ignorant of their role. They manage to stay out of the really complex sanctioned market rigging systems like health. Preferred provider by its very descriptin and nature implies a relationship between the health provider and the governmet agency or private health fund, a hospital or whatever. Preferred provider schesm involve negotiated capped cost service provisions. Thus there is an internal tension created as service providers, being squeezed by the negotiators seek to recover or compensate their lost revenue or dwindling business prospects. They fight daily to stay in business. The Minister approves health fund rate rises whihc by this very definition will incorporate a level of this effect. The government also, I believe, adjusts the statistics and impacts to present whatever staistical picture suits their agenda. At the very least they ignore the ever rising corruption of the system. The Australian Government ownes the health indurance fund, Medibank Australia, which has according to my reckoning 50% of the market. What does this say about morality, and ethics, in government? (Kevin Beck,Tensions in Preferred Provider Schemes for Health Services in Australia, 2011) WHAT IS THE PROBABILITY THAT THEY ALL DO IT WHAT IS THE ETHICAL CODE OF MODERN AUSTRALIAN BUSINESS OWNERS, MANAGERS AND CORPORATIONS? Many years ago a former politician, now high profile media and political commentator and businessman, wrote a book around the theme "whatever it takes". Today in 2011 that proposition has more resonance and validity than ever before. Whole political systems of government, and aspects of state based public service, in Australia, particularly in New South wales are corrupted. They are corrupted by culture, by the former labor government's poor ethical leadership and example, by systemic history and methods and in a number of cases by actual payment of gifts, bribes, commissions and largesse. There is no evidence that the new liberal government of New South Wales, and to some lesser extent in Victoria is going to rdaically address the embedded cancer. From time to time local state bodies like the NSW Independent Commission Against Corruption will have a go at some public official, or politician. "The ICAC investigated four separate occurrences of serious corruption in the former State Rail Authority (SRA). The first investigation concerned the theft and sale of SRA property, laundering of the proceeds and tendering processes. The second investigation concerned overtime abuse, bribery and favouritism in allocation of maintenance work. The third investigation concerned conflict of interest and dishonesty in allocation of carriage cleaning contracts and the fourth investigation concerned bribery in relation to certification of carriage cleaning work. In its report on these investigations, made public in June 1998, the ICAC made findings of corrupt conduct against 16 persons and stated its opinion that consideration be given to obtaining the advice of the Director of Public Prosecutions with respect to the prosecution of 15 people for specified offences. The report also details the corruption prevention strategies formulated by the rail organisations into which the former SRA was divided: FreightCorp, the Rail Access Corporation, the Railway Services Authority and the State Rail Authority." (Source: ICAC, State Rail Authority of NSW - four investigations into serious corruptio) However I would presume that the breadth of the entrenched manipulation, and buddy system, is well beyond the resources, and the will, of those who are charged with investigation and prosecution. It is endemic and will years to weed out. Perhaps the new liberal government should replace the upper levels of certain agenxcies? At the national level, involving international business practices, if an Australian citizen performs an act of bribery offshore, they can be fined $1 million, jailed for 10 years and where a company is involved it can be fined $10 million, which all sounds very proper except that nobody has ever been prosecuted. It is unlikely that Australian regulators are searching out instances. Out of sight and out of mind for the governmets of Australia. Rio Tinto executive behaviour in China focused some spotlight but it all went quiet. The global financial crisis threw another light on the financial industry. The Australian Consumer and Competition Commission likes to come down on market manipulation. These are allw ell and good but they do not address the foundation of corruption in local government and state based purchasing, methods of doing business, political donations and the world of largesse and nepotism that is wide spread in Australia in 2011. Here is an excellent academic paper on the theme of this web site. "Corporate leaders claim concern about the decline of ethical standards (Rose 2007) .... their study of 80 Australian managers in which the question of .... “Personal Ethics and Business Ethics: The Ethical Attitudes of Owner/Managers, Corporate Ethics, Personal Ethics One and the Same? Identifying Ethical Captains of Industry, Helen Madden-Hallett, 2009) Another excellent article: "Cheats Can Prosper and Do, Tony Harris Most people involved in business promote themselves as ethical, but scratch the surface and their conduct is often less than squeaky clean. Tony Harris reports. Most people involved in business promote themselves as ethical, but scratch the surface and their conduct is often less than squeaky clean. Tony Harris reports. There is a view held by business people that Australia's business ethics are in good shape. Instances of ethical failure in Australia's large businesses are, they say, rare and exceptional. Ethical breaches are certainly not representative of the prevailing culture in business, they contend. But other evidence, including evidence from those who view business from the outside, suggests this view is optimistic. Allan Moss, chief executive of Macquaire Bank, cannot and does not debate that there is unethical behaviour in business. He has seen it at first hand, including when a senior Macquarie Bank employee, Simon Hannes, was convicted of insider trading. At this year's Edmund Rice Business Initiative Forum, sponsored by the Christian Brothers, the audience of 140 ethicists and business people heard Moss say that ``most people involved in managing a reasonable number of people for a reasonable time have suffered a disappointment about the ethical conduct of a colleague''. But there was no view that these ethical lapses were frequent. ``It's a surprise, and sometimes an astounding surprise.'' In this, Moss agrees with the views of John Ralph, formerly of CRA and recently of the Commonwealth's business tax review. Ralph acknowledged in last year's Forum that there were instances where business people behaved unethically." Source of extract: Edmund Rice Ethics Initiative Researched extracts of unethical, and/or, illegal behaviour gathered by Kevin Beck, are cited below "10-90AD 113 Company officers prosecuted in three months, Thursday 29 April 2010, Between 1 January and 31 March 2010, ASIC successfully prosecuted 113 company officers in relation to 212 criminal contraventions of the Corporations Act (the Act). ASIC took these actions after receiving complaints from the public and insolvency practitioners who have an obligation to report certain offences to ASIC. These prosecutions resulted in fines and costs being imposed totalling approximately $222,200. Most of the prosecutions relate to company officers failing to comply with their statutory obligations to provide assistance to liquidators and administrators or for failing to provide them with access to a company’s books. ASIC also prosecuted directors who failed to update ASIC’s public information registers with the current company/officer information and for lodging documents with ASIC knowing they contained false and/or misleading information. Of the 113 directors prosecuted, 79 were from New South Wales, 15 were from Queensland, 16 were from Victoria and 3 were from South Australia. 10-15AD Summary prosecutions of company officers - October to December 2009 Thursday 4 February 2010, In the period 1 October to 31 December 2009, ASIC successfully prosecuted 89 company officers in relation to 148 contraventions of the Corporations Act. ASIC took these actions following complaints from the general public and business community, including external administrators and liquidators who are obliged to report certain offences to ASIC. These prosecutions resulted in fines and costs of approximately $100,343. Combining the current statistics with the previous quarter’s, results in a total of 184 prosecutions and 326 contraventions for a combined total of $246,989 in fines and costs. (Source: Australian Securities and Investment Commission, www.asic.gov.au) "At the inquiry, Coles managing director Ian McLeod said milk would stay discounted because the company's "Down Down" promotion would continue. "Internally, we talk about at least six months, if not longer," Mr McLeod said. "We have avoided using words like permanent." Senators accused Coles of misleading its customers by saying prices would "stay down". (Source: Coles vows to continue price war, Matt Johnston, Rhys Haynes From: Herald Sun March 30, 2011) "Never ever" John Howard on the GST. "There will be no carbon tax under my government", "JULIA Gillard will ban new coal-fired power stations that use "dirty" technology and require that any power station built can be retro-fitted with developing clean coal technology." Julia Gillard. FIVE people protesting against a proposed new coal-fire power station are chained to a ladder in the foyer of Victorian Premier Ted Baillieu's office. About 100 people have gathered outside 1 Treasury Place, and the building's entrance is guarded by mounted police. Five protesters entered the foyer about 9.30am, carrying their own ladder and chained themselves to it. They are calling on the Baillieu Government not to invest $50 million in HRL's proposed new coal-fired power plant at Morwell in the Latrobe Valley." (Source: Protest against new Morwell power station, AAP, April 11, 2011.) Optus fined $5.2m for misleading ads, TRACY LEE From: The Australian July 08, 2011 12:00AM THE Federal Court has issued the highest penalty for a consumer protection breach, fining Optus $5.26 million for running misleading broadband commercials. "(The Australian, Business With The Wall Street Journal) NBN "Co Warned On Broadband Speeds After Optus Fined $5.2M By David Richards | Monday | 11/07/2011, The Australian Competition & Consumer Commission who last week managed to get Optus fined $5.2 Million for misleading consumers about broadband speeds, is now casting their eye over the operations of the NBN Co. Executives at the NBN Co have been given a guide by the ACCC relating to network broadband 'speed' claims. The document claims that most users get a lot less than "touted" headline. "There is a high risk of consumers being misled by 'up to', 'peak' or 'maximum' data rate claims where they do not reflect typical end-user experiences." (Source: SmartHouse, Lifetsyle Technology Guide) "The allegation of price fixing and anti-competitive conduct against powerful companies is not a conspiratorial claim. It is a well founded concern based on price fixing scandals that have seen courts impose multimillion dollar fines on businesses involved. The Australian trend has been for these fines to be of progressively larger amounts. For about 20 years three of Australia’s major transport companies and their senior executives colluded to fix prices and share the country’s express freight market. In early 1995 the three, TNT, Ansett Freight Express and Mayne Nickless, had penalties of nearly $15 million awarded against them in one of the first major landmark fines for price fixing. Also in 1995 under a new penalty regime, $21 million fines were imposed on Boral, CSR and Pioneer for price fixing for ready mixed concrete in South Eastern Queensland. But, it was soon clear that higher fines would not be sufficient and there have been a considerable number of major price-fixing cases since. A vitamin price fixing scandal in the 1990s resulted in fines of about $26 million by the Federal court. It also led to Australia's first class action against the price fixing cartel which was settled in October 2006 when the Federal Court approved a $30.5 million settlement against three pharmaceutical companies involved. Extensive price fixing in the power transformers industry was found and companies involved were fined a total of $35 million. In November 2007 the Federal Court judge Justice Peter Heerey fined billionaire Richard Pratt and his Visy group of companies a record $36 million for colluding in a price fixing deal with their arch rival in Australia's cardboard industry, Amcor. The penalties became the largest ever levied in Australia for price fixing and Amcor was awarded immunity after blowing the whistle on cartel arrangement to the competition watchdog in 2004. Justice Heerey described it as the “worst cartel to come before the courts in 30-plus years”. (Source extract from: "Fair and affordable grocery prices for a healthier community and a sustainable economy Public Submission to ACCC Grocery Inquiry by Tony Zappia MP Federal Member for Makin on 11 March 2008") MSY fined for misleading warranty notices, By Liz Tay on Apr 18, 2011 4:23 PM Filed under Sales & Marketing, Federal Court imposes $203,500 penalty. Technology reseller MSY has been fined $203,500 for misleading customers about their warranty entitlements last year. (Source: CRN, http://www.crn.com.au/News/254890,msy-fined-for-misleading-warranty-notices.aspx) Court orders Qantas to pay $20 million for price fixing The Federal Court in Sydney has ordered Qantas Airways Limited to pay $20 million in pecuniary penalties for breaching the price fixing provisions of the Trade Practices Act 1974. The Australian Competition and Consumer Commission instituted proceedings on 28 October 2008 alleging Qantas reached an understanding with other international airlines in relation to the imposition of fuel surcharges on air cargo across its global networks between 2002 and early 2006. (Source ACCC) Qantas to pay $4.8m price fixing fine, March 18, 2011, AAP Qantas Airways Ltd says it has reached a settlement with the New Zealand Commerce Commission in relation to price fixing in its freight division. ACCC scolds TPG for false advertising, Fine print puts dint in unlimited mobile cap, Darren Pauli (Computerworld) — 11 February, 2009 13:21, TPG Internet has been chided by the trade regulator for falsely advertising a high capacity mobile phone plan as unlimited. The Australian Competition and Consumer Commission (ACCC) said the telco flouted sections 52 and 53 of the Trade Practices Act by advertising the offending $60 plan as an unlimited cap, despite the fact it excluded premium voice and text services. ACCC chairman Grahame Samuel said in a statement the fine print exclusions negated the claim that the plan is unlimited. Source: op cit "The ACCC alleged TPG's advertisements for its $29.99 unlimited broadband plan were false and misleading because they did not properly disclose that it was only available with the purchase of a $30 home phone plan. The ACCC also alleged TPG's advertising did not adequately disclose the requirement that consumers pay an upfront set-up fee of $129.95 and a $20 home phone deposit. The ACCC had sought orders for TPG to cease the advertising while the case proceeded, but its application for a court injunction was denied in late December. (Source: Watchdog targets telcos on broadband advertisements Tracy Lee From: The Australian January 07, 2011) nternet service provider, Dodo Australia, has been hit by $26,400 worth of fines by the Australian Competition and Consumer Commission (ACCC) for making false or misleading representation about its broadband plans. (Source: Dodo fined by ACCC for misleading ads Telco forced to pay $26,400 in fines for ads with extra costs in the fine print David Ramli (ARN)06 January, 2011 11:23) Optus "unlimited" advertisements declared misleading and deceptive Advertisements which promoted Optus' broadband plans as being "unlimited" were misleading and deceptive in contravention of the Trade Practices Act 1974*, the Federal Court in Melbourne has declared. (Source: Australian Competition and Consumer Commission, ACC) False labelling and misleading information: Federal Court fines Tamar Knitting Mills The Federal Court, Hobart has imposed a $50,000 fine on Tasmanian knitwear company GIA Pty Ltd (in liquidation), which traded as Tamar Knitting Mills, for falsely representing that Chinese-made polo shirts supplied by Tamar over a 12-month period were made in Tasmania by Tamar. (Source: ACCC) Hair replacement ex-franchisee fined for providing false, misleading information - consumer compensated A vulnerable consumer has been compensated, and a businessman and his company fined for misleading the Australian Competition and Consumer Commission, in litigation finalised this week in the Federal Court, Hobart. (Source ACCC) Federal Court fines internet trader for contempt, The Federal Court has fined Purple Harmony Plates Pty Ltd $20,000 and imposed $10,000 fines on the company directors Helen Therese Glover and Neal Arthur Lyster for contempt. The fines are payable within 60 days and they have also been ordered to pay the ACCC’s legal costs. The Federal Court imposed the fines because the respondents failed to implement court orders following a decision last year that they were in breach of the Trade Practices Act 1974. That earlier decision related to the making of unsubstantiated health and other claims for products promoted on the Internet. (Source: ACCC) Court orders against Telstra for misleading Next G claims, The Federal Court yesterday granted the Australian Competition and Consumer Commission declaratory relief and made injunctions permanently restraining Telstra from making any representation to the effect that: mobile coverage on the Next G mobile telephone network is always available to Next G customers everywhere the customer, from time to time, needs to use their mobile telephone a customer subscribing to the Next G mobile telephone network will receive the same or better coverage than is available currently on the CDMA network, without disclosing that coverage on the Next G network depends in part on where the person is, what particular handset the person is using and whether that handset has an external antenna attached. (Source ACCC) Optus "unlimited" advertisements declared misleading and deceptive, Advertisements which promoted Optus' broadband plans as being "unlimited" were misleading and deceptive in contravention of the Trade Practices Act 1974*, the Federal Court in Melbourne has declared. In the newspaper and television advertisements the subject of the Australian Competition and Consumer Commission's proceeding, the headline claim made by Optus was that consumers could obtain "unlimited broadband". In fact, the plans contained a condition that once consumers reached a specified data allowance (15GB or 30GB), the speed of their service would be throttled back to 256 kbps. The ACCC's evidence established that at that speed, the service is practically unusable... (Source: ACCC) Woolworths fined $7 million in liquor licensing decision, 19 March 2007, Russell Miller, Partner Minter Ellison, On 15 December 2006, Woolworths was fined $7 million plus costs for six contraventions of subsection 45(2) of the Trade Practices Act 1974 (Cth) (TPA). The contraventions arose in respect of four deeds entered into by Woolworths (between 1997 and 2000) with liquor licence applicants who were seeking to set up liquor businesses in areas already served by Woolworths. These deeds contained provisions restricting the applicants from, among other things, selling certain types and quantities of takeaway liquor, stocking more than a specified amount of liquor and advertising or promoting takeaway liquor over the counter. (Source: op cit, Minter Ellison Lawyers) Federal Court declares Woolworths beef advertisements false and misleading, In orders handed down yesterday, Justice Lindgren of the Federal Court declared that Woolworths Ltd had in respect of advertisements during the period 22 February 2001 and 1 March 2001 engaged in misleading or deceptive conduct in breach of the Trade Practices Act 1974. He also declared that Woolworths had made false or misleading representations in relation to the origin of cattle. (Source: ACCC) Prouds Jewellers Pty Ltd ss. 52 and 53(e). Alleged misleading or deceptive conduct and making a false or misleading representation with respect to price On 8 December 2006 the ACCC instituted proceedings in the Federal Court, Sydney against Prouds Jewellers for making ‘Was/Now’ price comparisons that were allegedly false or misleading. (Source: ACCC) ACCC prosecutes Zamel's for false jewellery prices An investigation into Zamel's Pty Ltd's Christmas 2005 c atalogue by the Australian Competition and Consumer Commission has led the Director of Public Prosecutions to institute prosecution proceedings today against the jewellery retailer. Zamel's, a family owned retail jeweller, distributed 2.6 million of the catalogues in South Australia, the ACT, Victoria, Western Australia and Tasmania. (Source: ACCC) Court declares Audi Q7 motor vehicle advertising misleading The Federal Court Melbourne today declared that Audi Australia Pty Ltd had engaged in false, misleading or deceptive conduct in relation to advertisements for its Q7 Series motor vehicles. In addition to making the declarations, the court has also ordered that Audi Australia publish an advertisement in The Age and The Sydney Morning Herald newspapers referring to the civil proceedings and the orders made by the court. The court ordered Audi to pay the ACCC's costs, fixed at $25,000. (Source: ACCC) Unisys Case - Misleading and deceptive conduct in pre-contractual negotiations Optus Case - Misleading and deceptive conduct in print advertising (Source for the above two: July 2004 Misleading And Deceptive Conduct Trade Practices Act 1974 (Cth) Newsletter Stephens Lawyers and Consultants) 2000, ACCC alleges price fix by bank, The Australian Competition and Consumer Commission has instituted proceedings in the Federal Court against National Australia Bank Limited for alleged price fixing in breach of the Trade Practices Act 1974. (Source: ACCC) |
| The Australian government, Minister for Health the Honourable Nicola Roxon has again approveda rise in premiums for private health insurance in Australia. This is despite the fact that her office, and others in the government and bureaucracy have been told that there is a massive growing level of fraud within the health isnurance payments system. "In essence, it is becoming increasingly common for ancillary health providers (especially dentists, but also others, such as retail opticians, physiotherapists and chiropractors) to falsify patient claims in order to get around the intended purpose of preferred provider schemes. This improperly inflates ancillary provider incomes, siphons money away from the genuine rebate claims of others (leading to lower rebates and higher health insurance premiums) and causes other providers to adopt similar techniques in order to prevent their clients from switching practices." large volumes of correspondence have been sent to the Minister's, and other's, offices and to senior departments with carriage of health payments in the [rivate health insurances ector, to the health funds themselves and to the providers of the payments technology. The Australian Competition, and Consumer Commission has, after else failed to gain the Minister's attention, failed to get her off her dismissive views, seeking a valid, response, been notified of the impacts on competition and the effects of the preferred provider scheme. Nicola raxon has again demonstrated the arrogant approach of the labor government (under Rudd and Gilard) where anyone who challenges, argues or criticises instantly dismissed and disregarded. This dismissal of valid criticism, or sugestion of alternatives, occurs despite the cost and impact on communities, society and economy. It is the same modus operandi adopted by the government in relation to its ignorant carbon tax and climate change policy. Ignorant in that it is based on false premises, manipulated data and theories, crystal ball gazing and ideology. Policies across the labor government spectrum, lacking deep, balanced research, detailed assessments and published justifications. (Kevin R Beck, Melbourne Australia, "The Australian Labor Party's Jaundiced and Corrupted Policy Practices". |
| February 2011: Putting aside the behaviour of the Australian labor Party in Victoria and NSW, of all the businesses selling things to people in Australia, none are more reprehensible in conduct and likely to be untrustworthy than the telephone companies. They charge excessively, misrepresent their likely costs, misrepresent the terms of their contracts when selling the service, deliberately write contracts that are difficult to decipher, to read and are voluminous in content with exclusions, and representations, included in small print. They engage in advertising designed to entice and if that advertising is misleading, so be it. The intent is clear. They engage in misrepresentation for their financial benefit. They engage in restrictive business practices designed to enhance their position and to disadvantage others. "Dodo fined for misleading ads, 06/01/2011 | 12:13 PM .... Internet provider Dodo has been paid $26,400 in fines for making misleading claims about its unlimited broadband plans. The Australian Competition and Consumer Commission (ACCC) handed down four infringement notices to Dodo Australia Pty Ltd on 21 December. The ACCC says it has reasonable grounds to believe that Dodo advertised false or misleading claims about the price of its Unlimited ADSL2+ broadband plan. " (Source: Orange I prime, http://orange.iprime.com.au/index.php/news/prime-news/dodo-fined-for-misleading-ads) "The Australian Competition and Consumer Commission has instituted legal proceedings in the Federal Court, Melbourne, against TPG Internet Pty Ltd for alleged contraventions of the Trade Practices Act 1974. The ACCC alleges that TPG's advertisements for its $29.99 unlimited ADSL2+ broadband plan are false and misleading because the advertisements represent to consumers that they can buy unlimited ADSL2+ broadband services for $29.99 per month. In fact these services are only available when purchased together with home phone line rental from TPG at an additional cost of $30 per month, meaning that the minimum monthly charge payable is $59.99 not $29.99. The ACCC also alleges that TPG's advertisements do not adequately disclose two additional up front charges – a $129.95 broadband setup fee and a $20 home telephone deposit – which customers must also pay in order to obtain the unlimited ADSL2+ service." (Source: Australian Competition and Consumer Commission, december 2010, http://www.accc.gov.au/content/index.phtml/itemId/963089) "Optus "unlimited" advertisements declared misleading and deceptive ..... Advertisements which promoted Optus' broadband plans as being "unlimited" were misleading and deceptive in contravention of the Trade Practices Act 1974*, the Federal Court in Melbourne has declared. .... Optus admitted that advertisements for its $70 pre-paid mobile Turbo Max offer, $40 pre-paid mobile Turbo Text offer and Fusion home telephone and broadband bundle plan were misleading and deceptive. The advertisements were misleading because they represented that consumers could make unlimited calls or send unlimited SMS, when in fact a number of call and SMS types were excluded. " (Source: Australian Competition and Consumer Commission, February 2011, http://www.accc.gov.au/content/index.phtml/itemId/972768/fromItemId/142) "July 2010: Justice Middleton in the Federal Court, Melbourne today penalised Telstra $18.55 million for denying competitors access to infrastructure in contravention of its carrier licence. Justice Middleton said that Telstra had shown 'no true remorse' for its conduct, 'nor an appreciation of the seriousness of the admitted contravention.' Telstra admitted to contravening the law by refusing access to other telecommunications providers in seven key metropolitan exchanges in Perth, Melbourne, Adelaide and Brisbane for the connection of their broadband equipment." (Source: Australian Competition and Consumer Commission, http://www.accc.gov.au/content/index.phtml/itemId/939835) Despite heavy, multiple fines the telecommunication companies go on engaging in "to the line" business practices with impunity, no regard for customers and no regard for ethics and morality. We are trapped, all of the major corporations seem to lack a moral compass and I am forced to buy services from one, or more of them. (Kevin Beck, declining Ethics in Australian Business Practices and behaviour, Melbourne, February 2011) |
| In January 2011, some 21 major Australian retailers embarked on an advertising, and public relations, campaign against Australian consumers buying on the Internet. The major retailers want the Australian government to impose Goods and Services tax (now exempt) on on line purchases up to $A1,000 and impose customs duties on these imports, also exempt at this time. Like many corporate executives, and Boards, they may work in blissful ignorance of world's of influence beyond their horizons. Behind the scenes the technically savvy manipulate the social networks and opinions. The retailers had stated that if the government did not act then jobs will be lost. Is this code for a coming down sizing of the retail workforce? "Retailers split after online GST campaign backfires, John Durie From: The Australian January 06, 2011 1:10PM THE Retail Coalition is looking for a smaller operator to spearhead its campaign for tax equality after the billionaire-led campaign backfired. The coalition will create its own association, splitting from the Australian Retailers Association and the Australian National Retailers Association, with a single spokesperson a million miles away from Solly Lew, Gerry Harvey and Bernie Brooks. The split in the retail ranks was part of the genius in assistant Treasurer Bill Shorten's tactics in referring the issue to the Productivity Commission, because in politics its far easier to win an argument against a divided opposition and a Liberal Party muted by the fact its decision in government to quadruple the $250 threshold on GST free imports is the key concern of the Retail Coalition. The Retail Coalition, while admitting it is getting smacked publicly, is happy that at least some folk are now aware of the issue and claims over 700 smaller retailers and the Australian Shopping Centre Association are keen to join its ranks." (Source: The Australian Newpaper, "Business with the Wall Street Journal,") The public relations company advising the retailers appears to have made a major blunder. "RETAILER Gerry Harvey has hit back at critics of his campaign for an online sales tax, but admits he has been ``getting the wrong message across''. ``We're not trying to stop people buying online. We just want a level playing field when it comes to tax,'' he said yesterday in response to the intense public backlash against his campaign to remove the $1000 GST-free threshold on imported goods. The ``Dear Gerry Harvey'' topic on Twitter aimed at the billionaire Harvey Norman boss who is spearheading the $200,000 campaign was the No.4 trending topic in the world in the past 24 hours. Thousands of Twitter, Facebook and blog messages have been posted by consumers who claim that not only is the GST component a small part of the price differential, but they can access a wider range of goods and sometimes better service by shopping online. ``Dear Gerry Harvey, welcome to the internet, we've been here a while. Enjoy the shopping,'' said one of many tweets. ``Dear Gerry Harvey, here is the world's smallest violin playing just for you. I bought it online and saved a bundle,'' said another. " (Source of Extract: GST blitz backfires on big business, Paul Syvret From: The Courier-Mail January 06, 2011 12:00AM) The overall argument to impose new taxes, and higher costs, on consumers to force them to stop buying off the net was indeed novel. The debate that resulted was not about the effects on jobs and the economy but about the poor service and unimaginative methods adopted by Australia's major retail names. One can walk into major Australian department stores and finding a staff member can be a challenge. Quality, and customer service, are, to my mind, mere lip service only. The burgeoning modern practice - where PR people generate corporate messages that are not reflective of reality, bordering on unethical misrepresentation, and deception, in politics and business. Our major department stores, and supermarkets, are expensive, opportunistic and, in most outlets, poorly staffed. Yet Australian retailers spend a fortune claiming significant savings and competition, but against what benchmark, Wal Mart? The retailers can afford to discount items by as much as 70% in order to attract trade so what is the real price. One item my coleague wanted to buy (a book) was $A140.00 and he got exactly the same book, delivered into Australia, out of the USA, for $A36.00. One can go into a store look at a brand of fashion wear and then search it out on the net. There are dangers of warranty and sizing but the savings seem to ameliorate the risks. They adopt costly locations in dense areas and build megacomplexes like Chadstone in Melbourne and Bondi Junction in Sydney. The major retailers do not entertain considerations of placing some of their businesses in regional areas, using the internet, where one might get lower rents, support in the way of payroll subsidies or waaiver and other benefits. They might even get better employee relations. Retailers are not renowned for treating their employees with respect. It is of course difficult to judge the likely number of customers at any time. However shopping in the major retailers of Australia is not a reqrading and memorable experience. It is arduous unless one is addicted and willing to accept mediocrity dressed up as something else. Then again if you are a lucky female you may just get harrassed, and touched up, by a store executive. The 21 now, or is it 700 (?) now face a recovery action against the damage to their reputation but their reputation was not all that flash in the first instance. So what are the alternatives other than taxes? To pay low wages like the US Wal Mart model, to take peoples' dignity and opportunity away in the name of corporate benefit? Or is it for the retail Boards and managers to actually gain enlightenment, and creative ideas, beyond aping overseas experiences which do not translate easily? (Kevin R Beck, Corporate Whinging in Australia, 2011) |
Sunday 9 January 2011 and a group of protesters gather outside the retail premises of Up Market Pets, a chain store with one premise at the Victoria Market in North Melbourne, Australia. The protesters want the government to enact laws to abolish the factory farming of companion animals, to ban sale of factory farmed companion animals from [pet stores and on line and to change the way pets are kept, bred and sold. They call their demands Oscar's Law after the cause mascot, a dog that had been badly treated. They circulated pictures and descriptions of the conditions. The retailer distributed their own rebuttal materials citing the legitimacy of their business and the legal protectons for animals. Australia's laws protecting animals from cruelty are not high priorities for governments and people willing to pay hundreds or thousands for trophy animals do not much care how they are bred. Protesters report agressive responses from retailers at the market who do not like their Sunday trade inconvenienced. The Victoria Market is not exactly the domain of gentile, polished and well to do, civic minded businesses. Protesters always risk reprisals particularky if they are inteferring in a  
very lucrative business trade. An assault of one protester was reported to have occurred. The police were called but no arrests were made. The Oscar's Law Group are not the only protesters in Australia. (Kevin R Beck, Consumer versus Animal Business, Australia 2011) |
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| I have been a Qantas supporter and member of Qantas FF and Club for decades, and watch dismayed at how the proud airline and its staff are diminished by ignorance, incompetence and inexperience. The Board, and Management, itself has, for me, cheapened the enterprise in every respect. I am forced to fly Jet Star, to some locations that Qantas chooses not to provide a service to, at no material benefit for choosing Jet Star and often to my detriment if I wish to remain loyal to Qantas. There are no real rewards for loyalty, a manipulation of sentiment perhaps. A person can now usea credit card to garher points to fly and one does not need to belong to qantas FF anymore. For me it is now better to buy a membership of the Qantas Club rather than worry about acquiring status credits, and points, at great cost. In my opinion it is more relaxing to drive, and experience, the Australian country than to fly with an airline that I equate to sludge - Jetstar. I would never ever again choose to fly Jetstar internationally. In my view Jet Star is damaging the Qantas brand and loyalty. The Board, and Management, of Qantas need to have a look at their style, beliefs and their abilities for they will, if they continue down the same path, be remembered for killing the Spirit of Australia. (Kevin R Beck, Melbourne Australia, November 2010 |
| Australia's telecommunication companies are not all that ethical, and often come to the attention of the Australian Competition and Consumer Commission and the parliaments of Australia and the federal court. They make their contracts very hard to read, very one sided and complex enough to bamboozle consumers, whilst stopping valid comparisions of offers. They charge exorbitant fees as far as I am concerned whilst delivering low grade services and qualuty in return. Star 2 management, and owners, may well be wetting their pants over this awarad but what makes a dealer of the year? The revenue base. That is what dealer awards measure. Not service, not excellence to customer but revenue to the corporation that appointed them as a dealer. That is, in this case, Telstra. Star 21 could be the greatest service provider in the country, to the consumer, but if that did not deliver product sales, revenue and contracts in the highest values to Telstra, they probably would not win dealer of the year. Ther is nothing like a bit of myopic, questionable hype, to focus my attention. Congratulations Star 21, at least your employees probably get to keep their jobs unlike what is occurring to many employees at Telstra. (Kevin R Beck, Melbourne, Australia, October 2010)
Extract "Lawyers for Woolworths are negotiating with the Australian Competition and Consumer Commission on terms for an audit of the retailer’s liquor practices. The ACCC is keen to ensure that Woolworths has introduced new processes and trade practices compliance procedures following a conviction for anti-competitive behaviour related to the issue of liquor licenses in NSW. Woolworths was fined $7 million on the liquor charges which follow an earlier conviction for anti-competitive behaviour involving the sale of bread and attempts to force independent retailers to stop discounting. Both Woolworths and Coles were charged by the ACCC over a practice of forcing independent retailers and hotels applying for liquor licences in NSW to agree to certain licence conditions or restrictions in exchange for the withdrawal of objections by the two major retailers. Coles and Woolworths both argued that their actions were consistent with the practice of all parties involved in liquor licensing in NSW and were not illegal under state laws. Both companies had stopped the practice of negotiating licence conditions before ACCC legal proceedings commenced. Coles opted to negotiate with the ACCC on penalties for the licensing deals and was fined $4.75 million. Woolworths defended the charges in the courts and lost with a penalty of $7 million handed down last December. The company has until February 16 to appeal the decision and the penalties." (Source: FoodWeek, http://www.foodweek.com.au/main-features-page.aspx?articleType=ArticleView&articleId=96) Extract: "Woolworths meat scandal revealed, Rebecca Urban, February 8, 2007 Woolworths had its own misconduct investigation, Coles executive may face charges WOOLWORTHS, Australia's largest retailer, quietly sacked two senior managers over their roles in the disappearance of millions of dollars worth of meat from its Safeway stores in Victoria. A former manager at a Woolworths-owned meat processing plant, Kenneth Gibbins, was dismissed when his secret financial interest in a company implicated in the scam was exposed." (source: The Age, Melbourne, http://www.theage.com.au/news/business/woolworths-meat-scandal-revealed/2007/02/07/1170524164508.html) Read this: " Woolworths Limited is committed to business integrity and professionalism and to ensuring that our company policies and practices meet the highest levels of disclosure and compliance. Under the careful direction of our highly experienced and dedicated Board, Woolworths Limited has significantly strengthened its investment in corporate governance, particularly in the critical areas of compliance and financial reporting. Woolworths Limited follows the Australian Stock Exchange (ASX) Principles of Good Corporate Governance and our directors are committed to the ethical pursuit of our shareholders’ best interests. Code of Conduct In order to maintain our commitment to the highest legal, moral and ethical standards in our dealings with customers, suppliers, employees and local communities, every Woolworths Limited employee commits to our Code of Conduct. This code outlines how our employees can meet the highest standards through their everyday behaviours and choices." (source: Time: 2:28 pm, Date: Sunday, September 6, 2009, You are here: Our Company: Governance - http://www.woolworthslimited.com.au/phoenix.zhtml?c=144044&p=irol-govhighlights) Now finding Coles code of conduct is far more diffcult, if it exists. They do not seem to publish it on their web site. Instead they provide a link to their owner Wesfarmers, that web site says, inter alia, that Wesfarmers meets its objectives by: "acting with integrity and honesty in dealings both inside and outside the company." (Source: Wesfarmers About Us - http://www.wesfarmers.com.au/about-us.html) Well that is Wesfarmers but what about its owned subsidiary Coles? Who would know? And as I leave this sad and disappointing record of unethical behaviour by icons, I observe that Woolworths has joined the Qantas Frequent Flyer programme, adding to the club of close and cosy relationships in Australia. Good value for us all, but of course.
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