Business Management

Enforcing drug and alcohol policies in the manufacturing industry is a crucial task that requires a careful balance between safety and fairness. In environments where machinery operates and safety is paramount, stringent drug testing policies are common. Recent rulings have shown that enforcing these policies must consider the nuances of employee conduct outside work hours. Key Case: Sydney Trains v Goodsell [2024] FWCFB 401 (‘Goodsell’) A landmark case this year, the Goodsell case, provides valuable insights. In this case, an employee with a spotless 26-year record tested positive for cocaine during a random drug test. He was dismissed for breaching the company's "drug-free" policy, which mandated that employees must not use drugs at any time. While the Fair Work Commission (FWC) acknowledged that the company had a valid reason for dismissal, it also deemed the action unfair due to the employee's long service and otherwise clean history. Important Takeaway: Positive drug test vs. fair dismissal A positive drug test can justify dismissal, but it does not automatically ensure it is…

Australia's manufacturing sector is at a crossroads. A confluence of economic factors – namely a soft foreign exchange rate, moderating inflation and a promising outlook for lower interest rates – presents a unique landscape for manufacturing business owners. For those considering succession planning, now is an advantageous time to consider divesting their manufacturing business. Here’s why. The current economic landscape Over the past three years, Australia's interest rates have risen sharply, climbing from a record low of 0.10% in November 2020 to 4.10% by October 2023, reflecting the Reserve Bank of Australia's (RBA’s) response to rising inflation. This aggressive tightening aimed to curb inflation, which peaked above 7% in late 2022. Rates are expected to stabilise as inflation moderates, with projections suggesting rates will begin to trend downwards from Q1 CY25. The Australian Bureau of Statistics published the September 2024 quarter Consumer Price Index on Wednesday, 30 October. The index shows Australia’s annual inflation rate falling back to 2.8%, significantly within the RBA target band for the…

Latinka is also an accomplished professional who wears multiple hats as General Manager and Co-Owner of Catten Industries with her husband, Ian. Latinka found time to sit down with AMT editor Paul Hellard. AMT: Firstly, congratulations on the Victorian Female Manufacturer of the Year Award at the Victorian Manufacturing Hall of Fame Awards. Latinka Cubitt:  Oh, what a great night! Both Ian and I had arrived from overseas at around midnight on Sunday. We'd been to InnoTrans in Berlin, which was brilliant. It blew my mind how big it was. The Department of Transport and Planning invited us, and they organised this massive trip with several other companies in the rail supply chain. We caught up with many potential customers and had some excellent opportunities there. We were exhausted when we got back, but you hit the ground running by Monday and Tuesday because you've had a few weeks away from the business. Wednesday was the Victorian Manufacturing Hall of Fame Awards night in which I'd been nominated, which is an honour in itself.  Then…

The Melbourne weather turned on for the AMTIL Oaks Day event, early in November at Bramleigh Estate in Warrandyte, Victoria. Nestled on ten acres of natural Warrandyte bushland, Bramleigh Estate is a luxury Yarra Valley location. While the focus was initially for a ‘ladies’ day Melbourne Cup-style get-together, this AMTIL gathering has become a very valuable ‘Women in Manufacturing’ networking event in its own right. Representatives from many manufacturing companies came together to network in this unique afternoon event. “This was a super opportunity for many women in AMTIL to network,” said Anne Samuelsson of AMTIL. “This Oaks Day event saw us mixing some key companies from the AMTIL community, some who’d not met before.” Companies represented on the day included Catten Industries, OKUMA, William Buck, Bystronics, Parish Engineering, MacValves, VirtualStaff365, and many others. From the beginning of the event, it was evident that serious business connections were being made. The event was an inside sit-down lunch, and AMTIL had two full tables in a large room with around 250 others. “It was great to see the corporate…

According to the Australian Bureau of Statistics (ABS), postal and courier pick-up and delivery service charges rose 5.7% in the June quarter, driven by rising fuel costs and labour market volatility. That’s why it’s more important than ever for SMEs to ensure they pack and ship their stock cost-effectively. Seemingly insignificant mistakes, such as incorrectly labelling or sending one large package exceeding the shipping dimension compared to separate smaller boxes, could result in business owners being charged 150% more than the original cost. “Mistakes that lead to surcharges can significantly increase the original shipping price by up to 150%,” Interparcel CEO Steve Zammit said. “A courier charge might initially be $10, but something done during the manufacturing process could add a surcharge for special or manual handling ranging from $12 to $70, depending on the weight and any special handling requirements.” Zammit lists nine packing mistakes that every business owner should avoid, from the manufacturer stage to business expansion. Shipping seven costly…

The Australian Government has legislated changes that tightened restrictions under the thin capitalisation provisions. In this article, we explore what this could mean for Australian manufacturers. What is thin capitalisation? Thin capitalisation rules aim to limit Australian debt deductions, such as loan interest, line fees or other borrowing costs. The overarching policy intends to avoid profit shifting by multinational entities through excess debt deductions in Australia. For manufacturers, we see that these companies constantly grapple with thin capitalisation: Australian manufacturing companies that are expanding and have overseas subsidiaries Australian manufacturing companies that are foreign-owned and growing in the Australian market, or a combination of the above. The thin capitalisation provisions are commonly triggered when one of the above entities has total debt deductions exceeding $2m in a tax year. If the total debt deductions of the company and all its associates for that year are below $2m, these rules do not apply. Before the recent changes, our experience was that many Australian manufacturers relied upon a ‘safe harbour’ ratio test. This broadly allowed debt deductions to…

Australia’s manufacturing industry, employing around 900,000 people and contributing approximately $100bn to the national GDP annually, is pivotal. Additive Manufacturing (AM), commonly known as 3D printing, is transforming the landscape by enabling the creation of complex geometries and customised products across various sectors, including defence, aerospace, healthcare, automotive, construction, and fashion. AM is expected to expand rapidly over the next decade, significantly driving Australia’s economic and technological advancements. The AM market reached $14.7bn in 2023, with a growth rate of 13%. Recognised by the Australian Federal Government as part of its Critical Technologies within the advanced manufacturing and materials technologies field, the AM market is expected to continue expanding. Additionally, the AM industry is projected to grow rapidly, with revenues expected to hit $25bn by 2025. This growth is attributed to hardware, materials, software, and services advancements. This expansion underscores the importance of developing robust standards to help ensure quality, safety, and innovation. Standards Australia’s National Committee MB 028 – Additive Manufacturing is actively collaborating with the International Organization for Standardization (ISO), which has a unique partnership agreement with ASTM International…

ISO 14001 is a voluntary standard that sets out criteria for implementing an effective environmental management system. It guides businesses in systematising and improving their environmental management efforts and promotes methods to protect the environment and contribute to a sustainable future. AMTIL member Elexon secured the certification by demonstrating that consideration of the environment at every stage of the production cycle is a top priority. “With the electronics industry and its products having a higher-than-average impact on today’s environment, we take waste elimination, effective and efficient production processes and smart and responsible product design considering the whole lifecycle of our product, very seriously,” said Elexon CEO Frank Faller. Management Systems and their successful installation in company processes has always been a key focus for Elexon Electronics. The manufacturer received ISO 9001 15 years ago, just one year after establishing the company. “We can’t be complacent and we will continue to improve every aspect of the production processes, keeping the whole lifecycle process in mind,” said Elexon’s quality manager, Kylie Warren. “We need to make sure that we drive down…