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.

Dick Davies' Articles

Dick Davies a highly experienced senior manager who's at the stage where's he's reflecting deeply on management practices in organizations. He says for example that:

"... the human fabric of the workplace precedes in importance that of technology".

In 2010, Dick started a series of articles on independent contractors and the future. The most recent of those article appears here, with links to Dick's previous pieces immediately underneath the story.

Dick's Latest Thoughts:

'Let's take them on'

21 March 2010

Despite being so numerous and prosperous, independent contractors remain, on the whole, isolated. This will suit some people and may be why they chose to be independents. My theme in these articles, however, is that many independents could benefit from collaborating, firstly by to use their know-how to engage decision makers and get to valuable (and high fee-earning) projects, and then continuing to build the 'independent brand' into an attractive option for getting many more things done.

At the heart of my theme is a battle that has raged through human history. In Ancient Greece, Socrates extolled individual autonomy while Plato advocated dividing society into those qualified to govern and those fit only to be governed. In business, the issue was made famous by Douglas McGregor in The Human Side of Enterprise published in 1960, in which he labelled management values as Theory X or Theory Y. (Theory X says you can't trust workers, you tell them exactly what to do and stand over them if you want them to work. Theory Y says you can trust workers, they want to do a good job and if you involve them and treat them decently, they will produce wonders). Fifty years of evidence come down heavily on the side of Theory Y. But it must be hard stuff to research because language has been so tortured, in the best Orwellian tradition, that every Theory X dictator uses the honeyed phrasing of Theory Y.

I'm sure there are great places to work in Australia, but a visitor can hardly get out of the airport without sensing a Theory X culture, and it is nowhere more manifest than in employment, where management appears to have abdicated employing people, leaving the job to HR, which has passed it on to recruiters who largely leave it to computers. There have to be decision makers in high places who hunger for the chance of real conversation with independent minds who care about the business. Independents are Australia's great practitioners of Theory Y---just the people to satisfy this hunger.

The benefits for independents that flow from such engagement are:
  • Personal Development---experience developing and selling concrete proposals
  • More money---through access to higher value project which mean higher fees
  • Greater control of their life---bigger teams mean the load shared more widely
  • Access to new tasks, e.g. engaging with senior levels, bringing investors on board
And in due course:
  • Political recognition as a powerhouse of innovation in the economy
  • Political recognition as innovators in employment, education and national productivity
I have tried to describe concrete examples in previous articles, but no description of mine can match the experience of getting involved in the work. I would propose that these matters be opened up for discussion in meetings for which anyone interested is invited to register. I would suggest these be planned as 1-day events, but I would like to hear other views on this. Of course, I would also be delighted to hear any comments you may have on these articles. Thank you for the attention you have given to them.

Your Thoughts

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

Previous articles

'Building the context for the independents' revolution'
[5th article in the 'future' series]		11 March 2010
'Effective meetings are the key'
[4th article in the 'future' series]		1 March 2010
'A scenario in which independents trigger the start of a new workplace'
[3nd article in the 'future' series]		19 February 2010
A Glimpse of What Could Be?
[2nd article in the 'future' series]		10 February 2010
Independents and the Future of Work
[1st article in the 'future' series]		2 February 2010
ITC Contracts Could be a Great Opportunity
[Submitted discussion here]		26 September 2009