Charter of Contractual Fairness
On 1 July we launched our Charter of Contractual Fairness

We have heavily drawn the principles of contract fairness from the new consumer unfair contract protections laws. If it's fair for consumers, it's fair for small business people - the self-employed and independent contractors.

We are currently writing to Australian corporations asking them to commit to contract fairness in their dealings with small business people.
Election Face-off 2010
Here's how the 2 sides currently shape up for small business/self employed people! (10 July 2010)
Gillard's ALP

So far, they've told us "here's what we've done!"

• Started a superannuation clearing house
• Begun a small business online inquiry service
• Established a Small Business Advisory Committee
• New liability contract guidelines for government procurement
• National Business Name Registration
• A new guide for self-employed people
Abbott's Coalition
They've announced the first part of "here's what we're going to do!"

• A dedicated Small Business Minister who will be in Cabinet
• A new Small Business Ombudsman to handle and resolve small business complaints about the federal government
• The extension of consumer unfair contract protections to small business people
• Retention of the current self-employed (PSI) tax laws
• Stop small business red tape on Paid Parental Leave
• Mr Abbott's and Mr Billson's joint press release
What we've been asking for
• The extension of consumer unfair contract protections to small business people

• Retention of the current self-employed (PSI) tax laws. Our letter to the PM (28 May 2010)

Failure to fix unfair business contracts
ICA says "extend unfair contract protections for consumers to small business".

New laws:
Legislation #1 (March 2010)
Legislation #2 (June 2010)

Here's our summary of the situation.
How the legislation defines unfair contract terms.
Why small business people should have TPA protections from unfair contracts.
We need an answer on tax, please
We've made it quite clear that self-employed (PSI) tax should not be changed.

We've written to the PM for an answer, but we do not yet have a reply.

Tony Abbott has been clear. NO change!
Industry/Retail super funds must come out
The Cooper Review into superannuation says the big funds are not disclosing enough and must be forced to do so. This is vital. See Chapter 4.

Here's why workers' money is at risk if disclosure is not enforced.
Look after your retirement
The Cooper Review of superannuation says Self Managed Super Funds are good and need little change to existing arrangements. This is welcome. See Chapter 8.

The Report also seems to have stopped the attack against SMSF's.
Stand Up for Your (Contract) Rights!
We're monitoring contracts in general and promoting good contracts in particular. For example:
Another bad contract (Jun 2010)
One of the worst contracts we've seen (Jan 2010)
'Tom' versus DEEWR (Nov 2009)
But a positive development from government
Ken Phillips comments
And some interesting discussions
Central Banks on Debt
Since mid-May, central banks have been worried about sovereign debt. Click here for a list of useful links and summaries.
Problems with Phoenix companies
Two ICA members' tell their stories
ATO information on reporting suspect activity.

Govt's attempts to do something:
ICA comment

Newspaper comment:
The Australian
The Age/Sydney Morning Herald
Business Spectator

What 'Tom' thinks
What 'Jim' thinks
Dick Davies Writes...
"...the human fabric of the workplace precedes in importance that of technology!"
Dick Davies prods us to think about management, independence and motivation. Click here.
Stop Sham Contracts!
ICA supports the prevention of sham contracts. We monitor what's happening with them:
One person's story
Successful FWO prosecution (Dec 2009)
Info from Fair Work Ombudsman (July 2009)
First sham contract prosecution: ICA summary
Make a complaint to FWO
Business Spectator article
Read the debate
... Unquote
The Pessimists' Economic Views
(Posted January 2010)
We've brought together some pessimistic views about economics and likely economic trends in 2010:
US toxic loans
'US as sick as Greece'
Ken Phillips's summary
An 'IMF' perspective
Predicting 2010
Government debt a giant ponzi scheme?


Click to enlarge.

Ken Phillips on the debt equation


Watching Goldman Sachs
Rolling Stone magazine has blown the lid on Goldman Sachs:
Article 1 [July 2009]
Article 2 [April 2010]
Article 3 [May 2010]
Tax burden: UK versus Australia
Just as the UK is moving toward more sensible small business (contractor) tax laws, in Australia we're having to defend the progress we've made.
Laughing lawyers
You'll be amazed by the 'slips' that some lawyers make in court.

ITC Contracts Could be a Great Opportunity


26 September 2009

[Submitted discussion and comment can be found here.]


Reading the material about ICT contracts, I found myself thinking "what's wrong with this picture?" Apparently, independent contractors offering an expertise that is highly valued and hard to come by are being entirely stitched up by intermediaries who have taken over their client relationships. It's not clear what value the intermediaries are adding, other than taking on the 'people stuff'---the communication and administration load. A lot of technical people will avoid dealing with 'people stuff' if they can, and that may be happening here.

Why couldn't the following happen?:
    A group of experienced ICT contractors take the time to get their heads together and thrash out their view of the real needs of their market (which are probably different from what the market says it wants). They then profile the skills and resources required to meet these needs and compose a fair and ethical contractual basis for supplying them. Next, they configure themselves financially in some way that allows them to be a channel for the services of other contractors. And they bring marketing and sales skills of a high order to get the benefits they offer across to customers. Then, as customers start to experience these benefits, recruiters who are currently ripping off contractors will find themselves left to look for work in sales or administration for this new ICT contracting organization as their clients transfer allegiance.
I suspect that part of the reason this doesn't happen is the culture of secrecy and competitiveness that ICs feel they have to maintain to protect themselves. There may be very good reasons to behave this way, but it is seriously restricting their potential to serve clients. Most of the value being created in the economy could probably best be created by people working together as independents (as Ken Phillips says in Independence and the Death of Employment), but it can't happen until they can be relied on to work together very effectively. Developing a culture that encourages co-operation is a major challenge for independents.

ICs who have learned to work together would be able to access to a range of opportunity to benefit both themselves and the economy. An environment that genuinely offers people a relationship which invites them to contribute all they can has a huge advantage over the "we tell you all that you need to know" culture that seems to have been so common in the past, even if it is less so now. Most people have no idea what they know or can contribute until they are faced by a real situation where they feel at the centre of things and suddenly discover an excitement, a new trust in colleagues and a new sense of themselves. Knowledge is not something kept in cupboards to which only experts have the key. It is often created in real situations through interaction and struggle of committed people. ICs have the potential to create a work culture that manifests a higher order of effectiveness and productivity than any Australia has yet seen.

This is a long-term issue, but the current ICT contracting problems could be a very good place to start demonstrating the power of co-operation.

What do you think about Dick's thoughts on this issue? If you would like to contribute your own thoughts, please e-mail your contribution to us at: dickdavies@contractworld.com.au.