Australian GPD Growth Slows To Lowest Since 2011

Discussion in 'Property Market Economics' started by 2FAST4U, 2nd Sep, 2015.

Join Australia's most dynamic and respected property investment community
  1. Bayview

    Bayview Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    4,144
    Location:
    Inside your device
    I am not a curious stranger - these are regular customers who have been in a number of times.

    I reckon I also have the awareness to ask the right person and the right way so that they would be happy to tell me what their pay rate would be .
     
  2. Rumplestiltskin

    Rumplestiltskin Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    402
    Location:
    Perth
    I think many of those IGA gals must have partners making good money doing FIFO or some other decent job.They never seem at all unhappy.
    It could be that they are well looked after and offer flexible working terms which are often as vitally important to young families as the secondary income.
     
  3. Bayview

    Bayview Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    4,144
    Location:
    Inside your device
    Most of the staff at our local IGA are in the 18-25 bracket.

    One of our reg customers has both his sons working there atm - they are both at Uni and need the cash for their car services etc.

    The senior positions at IGA are more yer older men and women - from my observation, and a couple of the older ones are basically workers who have been there for ages.

    There are a decent amount of school kids doing part-time work as well. We are looking to possibly get my son some hours there next year when he turns 14 and 9 months.

    Also looking at possibly Bunnings (apparently it is hard to get in there), Baker's Delight, The Reject Shop and a couple of other places around the township.
     
  4. Biz

    Biz Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,517
    Location:
    Investard county
    Jeeezz I wonder what the ones who don't make the cut are like? :p
     
    juzzy likes this.
  5. jaybean

    jaybean Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    4,752
    Location:
    Here!
    I've heard before they they prefer to hire people with trade backgrounds. Probably explains things.
     
  6. Bayview

    Bayview Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    4,144
    Location:
    Inside your device
    I've found most of the staff at our local Bunnings to be pretty good....a few of the adults are our workshop customers too.

    Even the junior kids doing after school hours - mostly switched on from my observation.

    There is always one or two who are a bit slow on the uptake of course; but there would be a huge amount to learn there, I reckon..
     
  7. Rumplestiltskin

    Rumplestiltskin Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    402
    Location:
    Perth
    Bunnings had good people and plenty of them when things were booming. A far cry from that now.
    1 or 2 experienced older people with the rest young people working part time as part of the Uni degrees where they are majoring in camouflage.
    The rest are housewives that probably missed the cut at The Good Guys.
     
    Bayview and TheSackedWiggle like this.
  8. Guest

    Guest Guest

    http://www.afr.com/real-estate/the-...anup-still-start-in-september-20150910-gjjevl

    1441873426814.png
     
    Last edited by a moderator: 10th Oct, 2021
    Bayview likes this.
  9. Ben Chifley

    Ben Chifley Well-Known Member

    Joined:
    9th Aug, 2015
    Posts:
    463
    Location:
    South Australia
    Melbourne is coming off an extremely high base with those figures - the last three years has smashed all records with the sheer numbers of (particularly) apartments - totally unprecedented. There are still several very tall towers around Vic Markets, Spencer Street and on Southbank going up, the skyline will be very different in three or four years.
     
    Bayview likes this.
  10. Bayview

    Bayview Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    4,144
    Location:
    Inside your device
    Update on the wage rates for the non-skilled retail staff according to one of the local shop owners -

    $22 base rate for an adult - casual. More for Pub Hols etc of course, but a number of shop owners negotiate a higher flat rate with some of the staff; which covers all days. Everyone is happy with this.

    $12 base rate for a 15 year old casual - same as above for other days where negotiated.
     
  11. Ben Chifley

    Ben Chifley Well-Known Member

    Joined:
    9th Aug, 2015
    Posts:
    463
    Location:
    South Australia
    Bayview, $22 an hour is quite good for adult casual wages in retail, I know of many people in hospitality making nowhere near that. Extra for public holidays is also good news for those who work there. Twelve dollars an hour for a junior also seems to be decent money.
     
  12. propernewb

    propernewb Well-Known Member

    Joined:
    6th Sep, 2015
    Posts:
    307
    Location:
    NSW
    • Property prices are at record highs and still growing - check!
    • Foreign & native investors still have an appetite for Oz property - check!
    • Financing costs are still relatively low - check!
    • Politically acceptable to construct high density housing - check!
    And BIS is saying people are going to build LESS?! What kind of crazy nonsense is this?

    The Australian property market is no longer dependent on home-grown demand. It is now an international business, where we are primarily exporting investment properties to Chinese investors wanting to flee to more democratic lands. Ergo, their consideration of the supply-demand equation is completely out of whack!
    Do you think foreign investors are subject to the same increased financing costs that native investors are? Heck, even if you did, with the plummeting AUD those costs would be miniscule - Australian property has never been cheaper!

    This is the best time to be a developer. Cheap financing. Political will for increased high-density housing. More buyers than ever before thanks to demand from overseas. And here's the sweetener:
    • Labour costs will begin to fall as all those retrenched workers from the mining and manufacturing industries begin looking for work
    • Council amalgamations (in NSW) are likely to go ahead which will reduce the representation of NIMBYs and pave the way for higher density construction
    Happy days
     
    Last edited by a moderator: 10th Oct, 2021
  13. Bayview

    Bayview Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    4,144
    Location:
    Inside your device
    http://calculate.fairwork.gov.au/CheckPay/Summary

    For an 18 year old casual on base rate, for normal hours - $16.61

    http://calculate.fairwork.gov.au/CheckPay/Summary

    For a 21 year old (or older) casual on base rate, for normal hours - $23.74
     
    Ben Chifley likes this.
  14. Ben Chifley

    Ben Chifley Well-Known Member

    Joined:
    9th Aug, 2015
    Posts:
    463
    Location:
    South Australia
    Okay thanks Bayview - I wonder if they have any sorts of penalties? Perhaps they might have traded penalties away in their enterprise agreement, I'd be interested to know.
     
  15. Natedog

    Natedog Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    373
    Location:
    Brisbane
    Last edited by a moderator: 10th Oct, 2021
  16. Bayview

    Bayview Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    4,144
    Location:
    Inside your device
    All casuals get paid a penalty rate for work hours outside of normal times. (Some businesses negotiate a higher flat rate with their Casuals to cover all the various extra penalty rate hours - makes it far easier to work out pays each week.

    The rates for the various penalties are in the website link I posted earlier.

    For eg; a 21 year old (or older) casual would earn $23.74 per hour for normal work hours.

    But; on Sunday the rate increases to $37.98 per hour, and on Pub Hols to $52.22 per hour.

    http://calculate.fairwork.gov.au/CheckPay/Summary

    This is why so many retail places have been discussing this Sunday Trading issue, and why the rates have come under review recently.

    For a small cafe, or restaurant for example; if they are trying to use only Full-Time or Part-Time permanently employed Staff on Pub Hols and Sundays to keep the costs down, and then one or more of those Staff calls in sick (maybe the sun came out and the dudes wanted to go surfing - so call in sick...this happens more than you would know!), then they have no choice but to call in the casuals for that day.

    So, now they are paying sick leave to the permanent who called in, AND penalty rate labour to the casual who filled the void.

    It could equate to the cost of labour for that Sunday escalating from $37.98 (rate for Full-time employee on Sunday)....up to $71.21 per hour (base rate for Full-Time employee on sick leave - no penalty rate for sick leave), plus the Casual Staff penalty rate per hour.

    They would have to sell an enormous amount of extra product to cover that.

    Or; should they merely cop it on the chin, operate on that day for bugger-all profit, go home exhausted, but content in the knowledge that they have done three good deeds;

    1. Provided a nice experience for their customers on that day,
    2. Allowed their Permanent Staff to have a nice sickie day off.
    3. Provide much needed fabulous pay to their Casuals.
    o_O

    See; this is the problem with yer average urbanised Employee who has never run a business; they see a cafe/retaurant/whatever; chock-full of folks on a Public Hol or a Sunday, and say; "Geez; the Owner of this place must be making a fortune!!" :rolleyes:
     
    Last edited: 15th Sep, 2015
    juzzy likes this.
  17. Ben Chifley

    Ben Chifley Well-Known Member

    Joined:
    9th Aug, 2015
    Posts:
    463
    Location:
    South Australia
    See again, this is not my experience in hospitality. The people who I know working in the industry do not get any form of penalty rates whatsoever and yet they are all casual. The incredible rates you are talking about of $50-$70 an hour - who actually pays that? No-one I know gets more than $15-$20 an hour regardless of the day/times worked. Whether that is something that has been traded away under an enterprise agreement or if it's just a widely ignored legal requirement I don't know but I guarantee you nobody on the Chapel St. cafe strip will be working Sundays for anything like those fantastic figures you mentioned.
     
    Last edited: 15th Sep, 2015
  18. Waterboy

    Waterboy Well-Known Member

    Joined:
    29th Aug, 2015
    Posts:
    2,802
    Location:
    Denial is Not a River in Egypt
    That's the reason why we don't need to pay tips to waiters. Unlike in America where minimum wage is quite low and tips will determine whether the waiter can pay his rent! It's a cultural shock traveling in America you have to tip everyone!
     
    juzzy likes this.
  19. juzzy

    juzzy Well-Known Member

    Joined:
    14th Aug, 2015
    Posts:
    156
    Location:
    Melbourne
    When I was 18 and working retail while I was at Uni, I almost felt guilty earning $35 an hour on a Sunday. We did SFA and earned more per hour than a Uni graduate! This was in 2007.

    No wonder they used to only open 10-4 on a Sunday. They would have closed earlier, but they had a contract with the shopping centre that they had to be open those hours. A lot of other stores used to close early anyway when it was quiet and just hope that they didn't get caught.
     
  20. Bayview

    Bayview Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    4,144
    Location:
    Inside your device
    All I can tell you is what the award is.

    But; the Award I showed you was general retail.

    If you look closely at that site, there are many different sections of that Award.

    If all these folks you know are not being paid the correct amount (underpaid), then I suggest you get on the phone to Fairwork Australia immediately.

    Or; go to those restaurants and tell the employees that you know, what we have discussed.

    Then; they have choices -
    1.speak to their Boss to rectify the problem, and collect back pay.
    2. leave the job and find another one, and follow-up point 1.
    3. speak to Fairwork Australia and make a complaint officially, and follow-up points 1 and 2.
    4. all of the above
    5. maybe keep their job, but select points 1 and 3