Wesfarmers boss Rob Scott blasts Victoria’s lockdown extension

The CEO of one of Australia’s biggest employers has broken silence on Victoria’s lockdown and is now openly criticising the Andrews government.

The CEO the conglomerate behind Kmart, Target and the dominant hardware chain Bunnings has blasted the Victorian government. Picture: Michele Mossop

One of Australia’s most powerful chief executives, Bunnings boss Michael Schneider, has savaged the Victorian government’s COVID-19 recovery plan, accusing Premier Daniel Andrews of a lack of consultation that will lead to a huge economic cost, not just to Melbourne but the nation.

The Bunnings chief executive told The Australian on Sunday night that despite the $320bn retail sector explaining to the state government that not all retailers were the same, they were being treated as a homogenous group that had the same-sized stores, formats and operations.

Mr Schneider said that the so-called industry consultation lauded by Premier Andrews felt “one sided” and that despite volumes of information supplied to government ministers their views did not seem to have been taken on board.

“The consultation has felt one-sided,” he said. “We have provided considerable quantities of information to both minister (Martin) Pakula and minister (Martin) Foley demonstrating our credentials for a safe opening, and we put the safety and welfare of our team and customers at No 1. The final piece for me is disappointment at the fact that despite the Australian Retailers Association — and a number of other industry bodies, as well as large and small retailers — saying to the government the retail sector is not a ‘one size fits all’ model, we have been treated in a ‘one size fits all’ way.”

He said the October retail quarter, which could now be ruined by the Victorian government’s recovery plan, was crucial for planning and ordering Christmas products and this could now be greatly disrupted.

Wesfarmers CEO Rob Scott. Picture: Colin Murty

The Wesfarmers-owned Bunnings employs more than 12,000 people in Victoria and services 150,000 tradesmen.

Wesfarmers’ businesses, also including Kmart, Target and Officeworks, are mostly closed in Victoria, with Bunnings open only for tradies.

Mr Schneider said there was a practical aspect to the problematic Victorian government plan unveiled on Sunday to slowly open up the economy, including allowing retail to open its doors, that could have dire consequences for home repairs — especially when damage is done across the city by storms.

“We understand that if the desire for the government is for people to spend more time at home, having easy access to products that are helping them stay at home is useful in supporting the community,” he said. “When the big wind storms hit Melbourne last week houses lost power and buildings were damaged, our stores were overwhelmed with customers wanting to be able to come in and get urgent supplies to get things to get their homes (fixed) which they couldn’t do because they have to buy the product online and it has to go through the online process.’’

Earlier on Sunday, Wesfarmers chief Rob Scott criticised the claim by the Victorian government that it would consult widely and intensely with the business community as it developed its pathway to drag Melbourne out of onerous stage four restrictions that have seen all non-essential retailers forced to shut and many businesses forced to send their workers home or operate on skeleton staff.

Dropping his previous stance of being conciliatory and supportive of state and federal government policies to dig the nation out of its economic hole created by the pandemic, Mr Scott hardened his view of the Victorian government in a withering attack on Sunday.

“I worry that this latest ­announcement creates more ­uncertainty and hardship and will inflict a greater personal and economic cost, not just to the people of Melbourne but the whole of Australia,’’ Mr Scott said.

And despite the much promised consultation with business by Premier Daniel Andrews, one of Australia’s largest companies couldn’t snare a meaningful discussion with his government.

“In Victoria, Wesfarmers businesses employ around 30,000 team members and we have not had any meaningful engagement with the government around retail operations and nor any feedback as to whether our retail network presents any risks to the community,” he said. “To develop a better plan would require the Victorian government to engage in genuine consultation, to listen and learn about industries that are outside their expertise, including how businesses have evolved to be COVID-safe. We will do a better job solving this Victorian problem if we work on it together across business and government — as is happening in NSW, Western Australia and elsewhere.” Mr Scott said the extended lockdown in Victoria would have an “enormous, incalculable and growing toll personally for many people, financially and on their emotional wellbeing, and also for the economy”.

He said the health challenge was clear and must be taken seriously, as it was in other states, and while Wesfarmers would survive he feared other businesses would not.

“The diversity and financial strength of Wesfarmers will enable us to get through the Victorian lockdown but many other businesses may not,” he said.

“Hopefully our advocacy will also help other businesses reopen in a COVID-safe way. Our primary focus will be on our teams and customers and how our divisions can support them, as best they can, through this personal and economic catastrophe.

“We know that our team members do not deserve this.”

Mr Scott said the government’s plans would increase uncertainty for Wesfarmers’ customers and suppliers.

“The government has introduced new thresholds (with a daily average of less than five new cases statewide over 14 days) as a precondition to reopening. It will be impractical for many retailers to plan for and trade through such uncertainty at what is normally the busiest time of the retail year.”