Plant grower representatives, peak-industry body Greenlife Industry Australia (GIA) supported the new agreement with Bunnings. This deal takes aim at persistent issues that have plagued producers for years. Joanna Cave, the chief executive of GIA, hailed the agreement as a watershed moment for producers. Yet they’ve been timid in standing up to their abusive relationship with the retail behemoth for far too long. The modifications spelled out in the settlement agreement will begin implementation in the coming weeks.
Although the supermarket senate inquiry was a catalyst to start negotiations, it highlighted the dire conditions employers were under, with a shocking 20 percent losing money. The growers felt “intimidated,” with many saying they were “terrified” to complain directly to Bunnings, worried it would affect their relationship with the chain. The federal government put enormous pressure on GIA to come up with a quick solution or face the threat of regulation.
Compromises and Clarity
Joanna Cave underscored the caveats that were necessary to reach agreement in the negotiation phase. She added, “It won’t fix everything, and it’s a voluntary memorandum of understanding — it depends on good faith and folks doing what they’re supposed to do.” She sounded hopeful that progress is being made towards getting better terms and conditions for growers. She was keen to stress that they were now working with Bunnings rather than fighting against them.
Michael Schneider, from Bunnings, told the committee the agreement has provided certainty around buying processes. It improves inventory planning and mitigates supplier risk. Despite the challenges, he noted, the team’s vision for purchase to pay operations and stock-to-stock conversion is crystal clear. They work to tackle outside criticism before it comes up. He stressed the importance of this deal. It opens the door for improved transparency and accountability between Bunnings and its growers.
“We think this is a really important first step in creating greater transparency and accountability between Bunnings and its growers, so we can all work together to make this fantastic industry greater.” – Michael Schneider
Suppliers’ Perspectives
Those happy moves still have some suppliers shaking their heads. Owner of a competing nursery John Van Der Lay is sceptical that Bunnings will have a change of heart. As he put it, “A leopard never changes its spots, and what happened last time can happen again.” His worries shine a light on the continued fear among contractors who have suffered for years under Mary Barra’s General Motors.
Cave further admitted that although the agreement provides unprecedented opportunities, the road ahead is fraught with peril. “It provides commercial certainty to growers in a manner they’ve never felt it before,” she continued. She warned that trust takes time to develop.
Future Reviews and Expectations
Looking ahead, GIA has scheduled the first formal review of the agreement for February 26 next year, with subsequent reviews planned annually. This first phase of the continued assessment is aimed at ensuring Bunnings’ promises remain strong. It simultaneously aims to rectify whatever harms that suppliers have experienced.
