Author: roymorgansocial

Amazon lifts minimum hourly wage

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Original article by Jacob Greber
The Australian Financial Review – Page: 15 : 4-Oct-18

US-based e-commerce giant Amazon has advised that its minimum wage will be increased from about $US11 an hour to $US15 ($20.85). The move will boost the pay of about 250,000 workers, and CEO Jeff Bezos has urged other companies to follow Amazon’s example. The hourly pay rate for entry-level employees at rival retailers Wal-Mart and Target is around $US11 and $US12 respectively, while the federal minimum wage rate is just $US7.25 an hour.

CORPORATES
AMAZON.COM INCORPORATED, WAL-MART STORES INCORPORATED, TARGET CORPORATION, UNITED STATES. FEDERAL RESERVE BOARD, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, DEMOCRATIC PARTY (UNITED STATES)

Australia likely to be fringe player in next LNG boom

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 23 : 4-Oct-18

Royal Dutch Shell CEO Ben van Beurden expects global demand for LNG to double by 2035. Shell has positioned itself to be a key player in the next LNG boom after making a final investment decision on its $C40bn ($43bn) LNG Canada project. Wood Mackenzie estimates that LNG projects with an annual production capacity of 50-60 million tonnes will receive final approval in 2019. However, Australia is not expected to play a major role in the new LNG boom, as only the Prelude and Ichthys projects are currently being developed.

CORPORATES
ROYAL DUTCH SHELL PLC, WOOD MACKENZIE, INPEX CORPORATION, WOODSIDE PETROLEUM LIMITED – ASX WPL, SANTOS LIMITED – ASX STO, OIL SEARCH LIMITED – ASX OSH

Expats urge rethink of draconian CGT plan

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Original article by Tom McIlroy, Michael Smith
The Australian Financial Review – Page: 4 : 4-Oct-18

Tax experts are concerned about the federal government’s proposal to abolish the capital gains tax exemption for expatriates who sell their main residence in Australia. They have warned that the proposed reforms could potentially apply retrospectively from 1985, when CGT was introduced. Shadow treasurer Chris Bowen has also expressed concern about the "unintended consequences" of the proposed reforms, which were announced in the May 2017 Budget as part of the government’s strategy to address the issue of housing affordability.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, CENTRE ALLIANCE, ST JAMES’S PLACE WEALTH MANAGEMENT, KING AND WOOD MALLESONS, THE HONG KONG GENERAL CHAMBER OF COMMERCE

Trust gap will crank up bank funding costs

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 17 & 20 : 4-Oct-18

Fitch Ratings has warned that a loss of trust in Australian banks in the wake of the financial services royal commission may result in higher wholesale funding costs. Fitch adds that banks may find it hard to pass the increased costs on to borrowers in the current climate. The credit ratings agency also notes that banks could potentially face increased compliance costs and a greater risk of class actions as a result of any recommendations made by the inquiry in its final report. Fitch has retained its negative outlook on banks.

CORPORATES
FITCH RATINGS LIMITED, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, S&P GLOBAL RATINGS, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, CLSA AUSTRALIA PTY LTD

BHP faces new dam burst case

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Original article by Ben Butler, Matt Chambers
The Australian – Page: 17 & 20 : 4-Oct-18

Law firm Johnson Winter & Slattery has filed a class action against BHP Billiton on behalf of the Los Angeles County Employees Retirement Association. The US pension fund alleges that the value of its stake in BHP fell sharply after the miner’s shares were heavily sold down in the wake of the Samarco iron ore tailings dam collapse in November 2015. BHP is already subject to two Australian lawsuits over the disaster. Meanwhile, prosecutors in Brazil’s state of Minas Gerais are believed to be poised to announce the settlement of a civil claim against BHP and Vale.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, LOS ANGELES COUNTY EMPLOYEES’ RETIREMENT ASSOCIATION, JOHNSON WINTER AND SLATTERY, VALE SA, MAURICE BLACKBURN PTY LTD, PHI FINNEY McDONALD PTY LTD, FEDERAL COURT OF AUSTRALIA, SAMARCO MINERACAO SA

Unions lean on Labor to change bargaining laws

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Original article by Ewin Hannan
The Australian – Page: 6 : 4-Oct-18

ACTU secretary Sally McManus says changes to the industrial relations system are needed as it currently favours bosses who steal employees’ wages. McManus has again advocated the need to allow enterprise bargaining at industry level, arguing that there is limited scope for further productivity improvements via negotiations at enterprise level. However, she says it would be a "last resort" for unions to take industrial action in support of industry-level bargaining.

CORPORATES
ACTU, AUSTRALIAN LABOR PARTY, JOHN CURTIN RESEARCH CENTRE, AUSTRALIA. FAIR WORK COMMISSION

Union threat to Labor over trade deals

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 4-Oct-18

The Australian Manufacturing Workers’ Union has warned that it will reconsider financial support for federal Labor due to the party’s stance on the proposed Trans-Pacific Partnership. The union has contributed some $367,000 to Labor’s federal and New South Wales branches in the last two years, but AMWU state secretary Steve Murphy has criticise federal Labor’s lack of consultation with the union movement in deciding to support the trade deal. The TPP’s provisions regarding labour market testing for imported workers is a key concern for unions.

CORPORATES
AUSTRALIAN MANUFACTURING WORKERS’ UNION, AUSTRALIAN LABOR PARTY, TRANS-PACIFIC PARTNERSHIP, ELECTRICAL TRADES UNION, TRANSPORT WORKERS’ UNION, CONSTRUCTION, FORESTRY, MARITIME, MINING AND ENERGY UNION OF AUSTRALIA, AUSTRALIAN GREENS, ONE NATION PARTY

Labor launches $1.8b plan to school kindies

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Original article by Phillip Coorey
The Australian Financial Review – Page: 5 : 4-Oct-18

Opposition Leader Bill Shorten will announce details of Labor’s early education policy on 4 October. Amongst other things, Labor will provide three-year-olds with 15 hours of subsidised pre-school education each week, or 600 hours a year. The subsidy currently only applies to four-year-olds, and was introduced by Labor when it was previously in office. The expanded scheme is estimated to cost $1.75bn over four years. Meanwhile, Shorten has criticised the federal government for failing to guarantee funding for the scheme beyond 2019.

CORPORATES
AUSTRALIAN LABOR PARTY

Morrison’s $9bn GST fix facing Labor, states revolt

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Original article by Andrew Burrell, Rachel Baxendale
The Australian – Page: 1 & 4 : 4-Oct-18

The federal government’s proposed changes to the formula for distributing goods and services tax revenue was rejected by the majority of state treasurers at a meeting on 3 October. The reforms had the support of Western Australia’s Treasurer Ben Wyatt, but other state treasurers warned that the Coalition must guarantee that no state or territory will be worse off. Federal Labor also opposes the GST reforms, and Prime Minister Scott Morrison says he will take the GST policy to the next election if it is blocked in parliament.

CORPORATES
AUSTRALIAN LABOR PARTY, WESTERN AUSTRALIA. DEPT OF TREASURY AND FINANCE, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, VICTORIA. DEPT OF TREASURY AND FINANCE, NEW SOUTH WALES. THE TREASURY, QUEENSLAND. TREASURY, TASMANIA. DEPT OF TREASURY AND FINANCE, SOUTH AUSTRALIA. DEPT OF TREASURY AND FINANCE

Unions go national in fight against IR laws

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Original article by Ewin Hannan
The Australian – Page: 6 : 3-Oct-18

ACTU president Michele O’Neil says the union movement will stage national protests as part of its push for changes to workplace laws. Work at construction projects and container ports in Melbourne is likely to be disrupted by a rally on 23 October, and O’Neil says rallies will also be held in other capital cities and regional centres. Australian Mines & Metals Association CEO Steve Knott says the Fair Work Ombudsman must respond appropriately to any unprotected industrial action.

CORPORATES
ACTU, AUSTRALIAN MINES AND METALS ASSOCIATION (INCORPORATED), AUSTRALIA. FAIR WORK OMBUDSMAN