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Thousands of businesses impacted by Tyro EFTPOS outage urged to register to class action

Christine Hera-Singh found it difficult to keep her bakery along the Great Ocean Road afloat during Covid-19 lockdowns and border closures.

The mum-of-one had pinned her hopes on the Christmas rush in late 2020 and early 2021 and for a while, her South Australian-based business, Meningie Bakery, was flourishing.

But then in January last year, the bakery’s credit card terminals stopped working for two weeks straight.

“It hit dead around the Christmas break, we had customers walking out, they didn’t have cash, it was an absolute nightmare,” Ms Hera-Singh told news.com.au.

It turned out the company that she rented her EFTPOS machines from, Tyro, had experienced a national outage that lasted for a fortnight.

Overall, Ms Hera-Singh estimates she lost $60,000 from the two week outage.

Across the country, at least 11,000 companies were impacted — the majority of them small businesses like hers.

Now, 18 months since the malfunction, outraged merchants have fought back by launching a class action against Tyro.

According to a notice from the Federal Court, affected business owners now have three months to register their case if they hope to receive compensation in the event they win the lawsuit. The registrations opened last week at www.tyroclassaction.com.au and close on October 30.

Ms Hera-Singh said: “We were losing heaps of customers. We were left in this huge dilemma.

“I’m a small business owner, it’s hard.”

The baker explained how the Covid-19 outbreak meant that society had gone largely cashless, making it even harder to survive during those two weeks.

By way of compensation, she said Tyro waived the rent on her machines for a month — which wasn’t nearly enough.

Her terminals stopped working on January 7 and only came back online by January 21, a whole 14 days later.

Across Australia, outages were first reported from January 5 due to a glitch in the coding and it took until late that month for all machines to operate normally again.

In a statement to news.com.au, Tyro did not acknowledge the class action law suit but said it had introduced a compensation program to make up for the financial losses.

“Following the terminal connectivity incident experienced in January 2021, Tyro has conducted a remediation program whereby all impacted merchants have been contacted directly by Tyro and given the opportunity to claim any financial losses caused by the connectivity incident,” a spokesperson said.

Bannister Law started the class action in October last year and Court House Capital is funding the case.

According to Bannister Law, most affected businesses lost between $5,00 to $40,000 from the outage, but there were several outliers like Ms Hera-Singh’s bakery. Some businesses that had multiple machines lost as much as $100,000.

Charles Bannister, Principal at Bannister Law, told news.com.au should businesses fail to register in the next three months, they wouldn’t be entitled to any compensation if his firm won the court case.

“The outage occurred during a crucial period, being a time when everyone had come out of lockdowns and there was a general reluctance to accept cash,” he told news.com.au.

“That merchants were unable to use their EFTPOS machines for days or weeks was, for many merchants, catastrophic.

“There are approximately 11,000 businesses affected by this outage. If they do not register, they will not be entitled to receive a share of the proceeds of any funds received should the proceedings settle, subject to Court approval.”

Last week, a whopping 11,000 letters were sent out to the impacted business owners inviting them to register.

Another impacted business was Highett RSL, in Melbourne’s southeast, which estimated it lost around $10,000.

Gavin Williams, the pub’s general manager, said the timing couldn’t have been worse as Melbourne had just come out of their four month lockdown in the winter of 2020 and they needed to recoup their losses.

“There were obviously lockdowns and all that in Melbourne that was going on,” he told news.com.au.

“People wanted to use credit cards and EFTPOS cards, [but by then] all our signage was to use your cards.”

Before Covid he estimates that half of his customers used cash while the other half used cards but the pandemic changed that. Around 70 per cent of customers now use cards, making it harder for people to buy drinks when credit card machines were down.

I paid $49 per month for an EFTPOS terminal and this fee was waived for the month of January.

To date, that is the only compensation the business has received, he said.

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Business

Rashays boss Rami Ykmour blames labor shortages for lettuce, beef price rises

The owner of a popular Sydney restaurant chain has launched into a furious “rant” about skyrocketing costs, saying he is now paying $140 for a box of lettuce and can’t afford to pass it on to his customers.

But Rashays co-founder Rami Ykmour, who made headlines during Covid for clashing with police over masks and speaking out against banning unvaccinated diners, says labor shortages – not the floods – are to blame for rising prices.

“I am disgusted, I am really disappointed with what’s going on out there, guys,” the outspoken restaurateur said in a TikTok video.

“Listen to this. We are buying a box of lettuce for $140. How much are we going to pass on to our customers? How can we pass on that expense to our customer? Even the big fast food giants have stopped serving their magic burger because this is worth, what, seven, eight bucks? One head of lettuce?

Mr Ykmour said he “can’t believe this”.

“Guys, just to get lettuce out to our restaurant is costing us so much money there is no way customers will come back if we pass on that cost,” he said, adding beef prices had also “gone through the roof”.

“And you know what they tell us? Let’s blame the floods. You know what I call that? BS,” he said.

“Do you know what the real problem is? The real problem is we’re short labour. The real problem is no one is out there to pick cos lettuce, there’s no one out there to pick iceberg. There’s no one to work in our farms, there’s no one to work in our country abattoirs. That’s why the prices have gone up, but they’re covering up for it.”

He said it was “time the government stepped in and said listen, we’re going to open the gates, we’re going to let people here and we’re going to make it easy for small business to run their business, we’ re going to let people come into the country and work here”.

“Guys, this is getting ridiculous,” he said. “Now ask for something to be done.”

Speaking to news.com.au on Friday, Mr Ykmour insisted labor shortages were responsible for price increases in production.

“I can tell you that first-hand,” he said.

“I was on a lettuce farm in Melbourne last week, they had six people on and usually they have 40 people. [The floods] did contribute in the early days, but it’s got nothing to do with what’s happening today.”

Mr Ykmour said governments needed to once again incentivize people to come to Australia to work, with something similar to the “Ten Pound Poms” scheme after World War II.

“We’re at that level now,” he said.

He said he believed border closures over the past two years had “of course” caused labor shortages, but that the issue was much broader.

“I think people just don’t want to work,” he said. “Coming off the pandemic, people are struggling.”

Recruiters have previously warned Australia is grappling with a massive skills shortage as employers struggle to fill roles.

Graham Wynn from Superior People Recruitment told news.com.au in June that he had “never seen it this bad”.

“This is the worst and most difficult it’s been to find people,” he said, adding it was “across the board”.

“Salespeople, technicians, a bit of IT we’re struggling with as well, but even the more basic roles which don’t require any experience like receptionists, we’re even struggling to find those at the moment.”

Mr Ykmour agreed, saying his business was getting hit with a “double-whammy” as a result.

“It’s [affecting] the price of produce, and we’re getting hit with staff shortages, right from the top level all the way down to waiters,” he said.

“My head office employs 60 people and we’re struggling, it’s just permanent recruitment. What used to take four weeks to find you’re now looking at three months.”

I have argued lockdowns were partly to blame for the general malaise, along with Covid itself.

“I think we’ve trained people to stay at home with lockdowns and all the rest,” he said.

“We’ve told people, listen, it’s OK to stay at home. I reckon a lot of people in the community are mentally drained on the back of the pandemic — people are finding it hard to just survive at the moment.”

Prime Minister Anthony Albanese is coming under increased pressure from the states and the business lobby to ramp up immigration to address lingering skills shortages after two years of Covid border closures.

Last year, NSW government bureaucrats urged Premier Dominic Perrottet to push the federal government for an “explosive” post-WWII-style immigration surge that could bring in two million people over five years.

NSW Skills Minister Alister Henskens last month called on the Albanese government to implement a “significant acceleration” of the nation’s skilled migration program, Australian reported.

Australia’s annual inflation rate rose to 6.1 per cent in the June quarter, figures released last week show, the fastest pace since December 1990.

According to the Australian Bureau of Statistics, the most significant contributors to the 1.8 rise in consumer prices over the quarter were new dwelling purchases, automotive fuel and furniture.

Price rises were also seen across all food and non-food grocery products, “reflecting a range of price pressures including supply chain disruptions and increased transport and input costs”, the ABS said.

Fruit and vegetable prices were up 7.3 per cent compared with the same quarter last year, meat and seafood rose 6.3 per cent, bread and cereal products were also up 6.3 per cent, while dairy and related products increased by 5.2 per cent.

“Fruit and vegetables rose 5.8 per cent [in the June quarter] due to heavy rainfall and flooding in key production areas of NSW and Queensland disrupting domestic supply,” the ABS said.

“Covid – related supply chain disruptions and high transport and fertilizer costs also contributed to the rise. Bread and cereal products rose 3.1 per cent due to constrained global wheat supply.”

The ABS noted meals out and takeaway foods also rose 1.4 per cent “due to rising input costs and ongoing supply and labor shortages”.

“Dining vouchers offered by the NSW and Victorian governments and the Melbourne City Council partially offset the rise,” it said.

“These voucher schemes have the effect of reducing out-of-pocket costs for consumers. Excluding the impact of these voucher schemes, Meals out and takeaway foods rose 2.1 per cent.”

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