Eric Abetz (Tasmania, Liberal Party, Shadow Minister for Employment and Workplace Relations) Share this | Link to this | Hansard source

asked the Minister for Broadband, Communications and the Digital Economy, upon notice, on 27 June 2012:

With reference to Australia Post franchises:

(1) Does Australia Post supply a separate management stream for franchises, or are they now grouped under the Licensed Post Office (LPO) management stream.

(2) Was a separate management structure promised by Australia Post.

(3) Did Australia Post:

(a) approach financiers with a business model; and

(b) receive 'Accredited Franchise Status' from major banks; if so, which banks, and what process did Australia Post go through to receive that accreditation.

(4) Is Australia Post required to go through an annual review with the banks in question to continue that accreditation.

(5) Has the corporation sought to continue these accreditations.

(6) Since the signing of the current Fair Work Agreement, have further franchises opened; if so, can a detailed explanation be provided about what agreements, either formal or informal, exist with employee unions in regard to franchising.

(7) Has Australia Post provided information to franchisees regarding agreement negotiations and their outcomes.

(8) Can a copy of the current Retail Conversion Policy with employee unions be provided, as well as an explanation of how this policy affects the franchised PostShop model.

(9) When did the previous formal agreement between Australia Post and employee unions, in place prior to the current Fair Work Agreement, expire.

(10) Were there any clauses in the previous agreement that related specifically to the franchised PostShop model.

(11) Did Australia Post provide information to prospective franchisees through the interview and application process that it had formal agreements in place with its employee unions, and that these may prevent expansion of the franchise network to 150 outlets.

(12) Have Australia Post managers tasked with the sale of these franchises received any performance bonuses or other benefits on the sale of a franchise.

(13) Under the Future Ready program, are Australia Post managers in receipt of any performance bonuses in relation to cost savings achieved.

(14) Given that there appears to be increasing doubt among franchisees over the intentions of Australia Post for the end of the franchise agreements, can an elaboration be provided on the answer supplied by Ms Corbett at the 2011-12 Senate additional estimates hearing of the Environment and Communications Committee.

(15) Will franchisees be offered a renewal of their agreements.

Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Link to this | Hansard source

The answer to the honourable senator's question is as follows:

(1) Franchisees are supported through a network manager within each State. Depending on the number of franchisees this network manager may also have other functional responsibilities.

(2) Australia Post committed to providing franchisees with ongoing dedicated support. Franchisees receive this support through their network manager.

(3) (a) Yes, Australia Post sought accreditation of its franchise model from the major banks.

(b) Westpac, the Commonwealth Bank and the ANZ bank have all given the Australia Post franchise business model "accredited franchise status". Australia Post provides a variety of documentation and other information to each financial institution as part of their assessment and decision with respect to business model accreditation for their purposes.

(4) These banks will periodically seek advice from Australia Post around both the licensed post office and franchised post office business models as part of continuing their accreditation for models.

(5) Australia Post has sought to maintain these accreditations for both the licensed post office and franchised post office business models.

(6) No further franchises have opened since the signing of the current Fair Work Agreement.

(7) Australia Post has not provided information to franchisees around our industrial agreement negotiations and their outcomes.

(8) A copy of the current Retail Post Conversion Policy is attached. This policy does not affect the franchised PostShop model.

(9) The previous formal agreement (EBA) expired on 31 December 2006.

(10) Yes, specific clauses relating to the franchise model were included in the previous agreement (EBA). In summary these provided:

(11) Australia Post advised prospective franchisees that its plans for establishing a network of around 150 franchised outlets would be achieved through a combination of the conversion of existing corporate outlets, conversion of licensed outlets and the establishment of new sites.

(12) The successful implementation of the franchise business model formed part of the performance objectives for a number of Australia Post managers.

(13) The management of costs is integral to any successful business. Australia Post managers who are responsible for business costs are rewarded on achieving business objectives around these costs.

(14) The franchise business model and associated agreement will at the end of the current franchise terms have been in place for some 10 years.

The significant changes which are taking take place within Australia Post, as well as developments within the franchise sector generally, will need to be considered in determining the future of the franchise model beyond the terms of the current individual agreements.

A determination has not been made on the operating model that will be in place at existing franchised post offices beyond the term of the current individual agreements.

Existing franchisees have taken up the franchise opportunity on the basis that the agreement is for a 10 year term only and that there is no provision within the agreement for an extension of this term.

(15) Existing franchisees have taken up the franchise opportunity on the basis that the agreement is for a 10 year term only and that there is no provision within the agreement for an extension of this term.

At the end of the term, payment is made to the exiting franchisee in accordance with an agreed formula. This is fully disclosed to the franchisee prior to entering into the franchise agreement and is in accordance with the franchising code of conduct.

Australia Post would however consider exiting franchisees for a further term where the future business model allows and the franchisee is deemed suitable.