HOSPITALITY CRISIS: STAGE 2 RESTRICTIONS AND CORPORATE CHAOS

Stage Two of the Federal Government’s restriction measures to reduce the spread of COVID-19 come into effect midnight (tonight) 25 March, as licensed venues scramble to find their place.

The Stage Two measures see restrictions and closures of virtually all public sites, from amusement arcades to yoga classes. Weddings are capped at five people, funerals ten people, and even family gatherings and BBQs are outlawed.

Yesterday (24 March) the Australian Hotels Association (AHA) joined the United Workers Union (UWU) in a ground-breaking collaboration, applying to the Fair Work Commission (FWC) to vary aspects of the Hospitality Industry General Award (HIGA).

The FWC considered and approved the application, intended to help save jobs and lessen the blow to the hospitality industry. (Full details of approved variations below.)

“The full bench of the Fair Work Commission commended the balanced nature of the arrangements and noted that this was a time for cooperation not conflict,” offered AHA National CEO Stephen Ferguson.

The NSW Customer Service department has today confirmed that small bars, and other licensed venues such as restaurants and cafes, can now sell takeaway and delivery alcohol and meals, in a move to reduce the economic impacts of the COVID-19 shutdowns.

Yesterday reports emerged of enterprising bars jumping the gun and bottling drinks, serving takeaway cocktails. The fresh announcement stipulated the new arrangements came into effect Monday (23 March).

“Takeaway alcohol can be sold and delivered during the existing trading hours specified on your licence, and of course stringent checks to ensure alcohol is not sold to underage or intoxicated people still apply,” advises executive director of Policy and Strategy for Liquor & Gaming NSW, John Tansey.

The regulator notes that regular laws prohibiting the sale of takeaway alcohol after midnight still apply.

It also reminds licensees that sale or supply of liquor to intoxicated people or minors are some of the most serious offences under the Liquor Act 2007 and attract significant penalties.

There are currently no limits set on the volume or type of alcohol that can be supplied in NSW, but L&G reserves the right to consider changes in this regard.

Western Australia has announced daily limits on sales per customer, restricted to: one carton of beer, cider or RTDs; three bottles of wine; one litre of spirits; one litre of fortified wine.

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CORPORATE CHAOS

Woolworths has stood down 8,000 workers from Australian Leisure & Hospitality (ALH) due to the closure of its roughly 330 venues.

A spokesperson yesterday advised the company is trying to redeploy ALH staff into other employment; an initial 650 were offered roles at Endeavour Drinks brands BWS and Dan Murphys, as well as parent company Woolworths, and a further 2,000 employees will or have since also received offers.

The ASX-listed Woolworths (WOW) has also postponed the $10bn demerger of its combined Endeavour Drinks and ALH division. Initially flagged to take place later this year, WOW CEO Brad Banducci has not ruled out abandoning the plans, but at this stage has postponed until at least 2021.

Australia’s only ASX-listed operator, Redcape Hotel Group (RDC) called a halt on trading on Monday after its stock continued freefall, dropping 65 per cent from a $1.13 on 20 February to just $0.40. The group’s 32 venues are closed, and it reports $100m cash on hand, with current anticipated outgoings of $10m per financial quarter.  

“Redcape acknowledges the devastating impact that the closure of its pubs will have on its people.

“In order to preserve as many future jobs as possible and protect the business, the Group intends to stand down the majority of its permanent staff.

“During the stand down period, permanent staff will be able to draw upon accrued leave entitlements and additional support mechanisms with the objective of these staff returning to their jobs when venues re-open.”

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Approved variations to the HIGA

  • After consulting with the relevant employee, employers can now direct full-time employees to work between 5 days and 3 days or 60 per cent of their guaranteed hours per week.
  • Employees can perform duties within their skill level regardless of their classification, provided that their duties are safe.
  • An employer may direct an employee to take annual leave upon 24 hours’ notice.
  • An employer and employee may agree to the taking of twice as much annual leave at half the rate of pay.
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