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It's Great to be Back

It's Great to be Back

Right to disconnect, Earnings and Run Clubs

September 02, 2024

…and we’re not saying that like when you return from an amazing vacation and have to pretend to your team that you missed work the entire time. After a brief hiatus, Flat White returns with a new editorial team (along with Pick & Scroll News). It’s a testament to corporate Australia that so much has happened since our last publication earlier this year. Things move darn fast around here. From recent news about the government moving away from WFH, RM Williams suddenly being in the spotlight for its decline in product quality to this new (potentially toothless) law providing a right to disconnect, we couldn’t stay away too long.

You’ll notice that we have changed our format a bit to provide you with all the info you need to be the complete Aussie Corporate. Give it a read and let us know what you think!

There’s no perfect morning news summary for Aussie corporates to stay up to date…

Pick & Scroll is our go-to daily morning news source for your top picks across Australian business, global and company news.

💡 Brain’s Trust

1. Right to disconnect?

In a law designed to stoke some fires in generational working norms - Aussie workers employed by large businesses now have the legal right to disconnect from work outside of official hours. However, enforcing this new right is challenging.

How do you deal with fringe use cases like international time zones or emergencies? It’s hard to imagine CrowdStrike or Microsoft employees logging off at 5pm on the 19th of July and leaving the world to combust, or simply a junior investment banker saying no to an urgent client request. We think that client-facing teams are especially going to have a difficult time in what is a global test case.

Older workers and industry leaders are frustrated with the right to disconnect, viewing it as a reflection of the younger generation's reluctance to embrace the demanding work culture that they themselves have endured for decades. As younger workers enter the workforce, they’re beginning to challenge the traditional norms of long, unhealthy working hours, advocating instead for sustainable work practices that prioritise mental health.

Enforcing this new right across different industries is challenging though and we have heard of many simply assuming that it doesn’t apply to them / their industry.

Ultimately, our take on this is that employers will be “fine” with following the law, but where will you stand when it comes to promotion day…

What have you been told about your right to disconnect?

2. Are you earning, son?

August represents the year-end reporting season as many Australian businesses navigate the conundrum of a strong performance to impress shareholders, but not too strong that someone in parliament mentions the words ‘price gouging’ or ‘parliamentary inquiry’.

A quick wrap on some of the key notable companies:

CBA outperformed market expectations (again). Despite a slight year-on-year profit decrease, analysts reacted well to the performance on the back of a slowing housing market.
JB Hi-Fi also proved it’s all about expectations as their profit declined 16% but it wasn’t as bad as forecast, which sent their share price skyrocketing.
Rio Tinto and BlueScope Steel felt the strain from weaker demand in China.
Coles proved they can’t win by posting a 4% profit increase and received pricing criticism from some MPs.
Outgoing Woolworths CEO, Brad Banducci, produced a mixed result with a $1.5 billion write-down in New Zealand stores reducing the bottom line significantly.

It's clear that Australian companies are navigating with cautious optimism, with firms being less gung-ho when it comes to new hires. Notably, the industrials and resource sectors are grappling with rising costs and softer revenues, while the financials sector is continuing to benefit from sustained high interest rates.

Looking ahead, all eyes are on the real life version of House of Cards as the US election drama continues. Markets never like uncertainty and with big decisions on interest rates to come and a guaranteed new US President, lots could change in the next month.

3. Battle of the Scammers

Now that everyone has realised they don’t have a rich Nigerian uncle who they need to send money to right now, scammers are getting smarter and becoming more successful.

Platforms like Booking.com and Facebook Marketplace are becoming hotspots for fraud with Westpac recently calling out Meta for its failure to curb the spread of scams. Westpac highlighted hundreds of cases involving fake rentals and other deceitful schemes leaving people in the lurch for their weekend trip to the Hunter Valley.

ASIC, the banking regulator and not your favourite shoe brand, revealed that a mere 7% of scam victims are seeing their money returned by Australia’s banks and implored banks to improve their handling of such cases. Interestingly, while Australian banks refuse / are reluctant to refund victims’ money, it is mandatory for UK banks to reimburse victims of APP fraud. Perhaps our banks have something to learn?

Stay safe out there and don’t be like André Poisson who was tricked into buying the Eiffel Tower by a scam artist in 1925.

🗞️ On Your Minds

🇦🇺 TOP AUSTRALIAN NEWS RECAP

Older workers are expressing frustration with younger colleagues’ challenges to long working hours. LINK
Attempts at bizarre tax deductions are increasing as households face cost-of-living pressures. LINK
Gen Z workers are leading the return to 5-day office workweeks, chasing in-person learning and the need for a focused work environment away from shared housing. LINK
The ATO is cracking down on misinformation falsely claiming that taxes are voluntary. LINK
The NSW government has mandated that more than 400,000 public servants return to office full-time amid productivity concerns. LINK

🌏 TOP GLOBAL NEWS RECAP

The Snoop Dogg Olympics came to a close after 2 weeks of entertainment with Snoop making an estimated $9 million over the 2-week period - more than 95% of athletes combined. LINK
China's deepening steel crisis, with tumbling prices and dwindling profits, poses bad news for Australia’s economy. LINK
Gen Z’s love for the gym is becoming a problem for overcrowded gyms. LINK
America’s gross national debt topped US$35 trillion for the first time last month in August. LINK
An enormous error in US payroll data has overstated the US economic boom, leading to predictions of a possible jumbo rate cut by the Federal Reserve. LINK

💼 TOP COMPANY NEWS RECAP

The global streaming market is in upheaval as major streamers begin to bundle rival content to be more competitive. LINK
Google is replacing production of Chromecast with Google TV Streamer. LINK
Super Retail Group appeared in Federal Court to suppress documents in a lawsuit by its ex chief legal officer. LINK
The used car market in Australia remains resilient as cash-strapped buyers opt for cheaper models, with Carsales lifting its dividend as motorists turn to used cars. LINK
Morgan Stanley International’s chairman and British tech entrepreneur Mike Lynch are among the bodies recovered after a luxury yacht sank in a storm off the coast of Sicily. LINK

🙊 Community Bantz - AusCorp Subreddit highlight

If you haven’t joined our subreddit yet, this is our version of the company water cooler where you can banter with fellow AusCorps, share anecdotes, memes and have your burning questions answered.

We’re all about those tiny tweaks that make a big splash. In case you missed it, MS Teams now lets you peek at who’s in the meeting before you dive in. Talk about a life-altering revelation…!

🩺 Health Check - health tip/reminder

Run, AusCorp, Run!

We think it’s about time we covered this given it seems to be the latest exercise trend sweeping AusCorp. Everyone seems to know someone who is part of a run club, whether it be for fitness, socialising or finding that special someone.

Why is it interesting?

According to history, at least in the US, running booms have typically occurred in the midst of crisis. Based on Christopher McDougall’s commentary, running has coincided with periods during the Great Depression, the 1970s (which had a recession, race riots, assassinations and the Vietnam War) and most recently, the 9/11 attacks.

The psychology behind running is a simple one. Run, feel the endorphins, do it next time for more. But run clubs take it up a notch. Music, hype, friends, all mean that every session is one that gets you amped before you even take the first step.

So if you haven’t hopped onto the latest running boom, what are you waiting for? Whether you’re looking for something new or wanting to expand your running circle, Broadsheet has put together a nifty list of the best run clubs in Australia.

👴🏻 Old is Cool - meme throwback (25 August 2023)

💻 Made in Australia - showcasing Aussie start-ups

BubbaDesk is a NSW-based workspace startup that provides co-working space with onsite childcare services. The company recently entered into an exclusive partnership with Canva and is in the middle of their Series B funding.

What is it?

Each BubbaDesk location provides a co-working space which allows you to book a desk whilst providing a carer for your child in another space within the same building. Given that this service is tax deductible, it seems like a sure winner for those that can use it.

Over the last 12 months, BubbaDesk has experienced an impressive surge in its revenue, growing at an astonishing rate of 520%. The company has successfully established new locations in Erina, St Leonards, Caringbah and Wollongong, thereby broadening its reach and accessibility. In addition to these new locations, BubbaDesk is poised for further expansion.

If you know (or are creating) a great Aussie product, we'd love to hear from you!

👍 The Nook - AusCorp recommendations

📺 Chimp Crazy (TV Show, Binge | IMDb 6.9/10) - "From the maker of Tiger King, proof that all American exotic animal people are mental. 2/4 episodes released so far, the next one coming on Monday. On Binge (shame).”

📺 Industry (TV Show, Binge | IMDb 7.3/10) - "Perfect mix of corporate and leisure, with just the right amount of PTSD inducing toxic bosses.”

🍽 Mon Ami (Restaurant, Melbourne) - “Cute little restaurant 'bistro' just outside Melbourne CBD serving the best duck you'll ever have.”

🚗 Under the Hood - what we're working on

Merch, merch, merch

We will be soft launching our merch store pretty soon. These initial few items will just be dropshipped mugs and tees we’ve designed, but we’re hoping to find some suppliers to help with lowering costs.

If anyone is keen to help out on this front, let us know!

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