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Speaker 1: This is what the Flux I'm Bratt and Justin and

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Speaker 1: at Wednesday, the twentieth of August does.

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Speaker 2: Boy, it's not just Canva who's got a big smile

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Speaker 2: on its face after seeing the spike in Figma's share price.

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Speaker 2: It's also Canva's big investors. For example, Blackbird, the Australian

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Speaker 2: VC fund, has revalued its holdings in Canvas up fourteen

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Speaker 2: and a half percent off the back of Figma's nazdac Ipo.

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Speaker 1: Smiles all around, b Man, Yep, fox man. Why does

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Speaker 1: the cost of living still feel high when inflation is

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Speaker 1: at a four year low? That is the question that

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Speaker 1: we explored in the Flux app today, because a falling

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Speaker 1: inflation rate doesn't actually mean prices are going down. If

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Speaker 1: you want to know why, make sure to download the

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Speaker 1: Flux app and check it out.

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Speaker 2: Three educational stories today. Juzzy boy, let's do it for

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Speaker 2: our first. Quantas has copped a record ninety million dollar

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Speaker 2: fine for its illegal sackings of staff, and more than

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Speaker 2: half of the money is going straight to the Transport

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Speaker 2: Workers union.

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Speaker 1: Talk about turbulence, b Man, and this one in the

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Speaker 1: court room. It so tell me more so.

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Speaker 2: Quantus is the Aussie airline founded in nineteen twenty. Now,

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Speaker 2: you may remember during peak COVID in twenty twenty, Quantus

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Speaker 2: made one eight hundred and twenty one ground workers redundant.

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Speaker 1: The problem is, be Man, they weren't truly redundant.

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Speaker 2: Well, Quantas outsourced their roles instead, and last year the

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Speaker 2: Federal court ruled that that was illegal.

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Speaker 1: And after the court made this decision, Quantus agreed to

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Speaker 1: pay one hundred and twenty million dollars to the affected workers.

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Speaker 1: But now a.

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Speaker 2: Federal court judge hit Quantus with a record ninety million

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Speaker 2: dollar penalty and that's the biggest.

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Speaker 1: Penalty ever under the Fair Work.

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Speaker 2: Act and juziboit fifty million dollars of the penalty will

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Speaker 2: go to the Transport Workers Union.

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Speaker 1: The judge's goal with this decision is for the mull

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Speaker 1: Art to fund future unfair dismissile case.

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Speaker 2: Interesting, So what is the key learning here?

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Speaker 1: The power dynamic between corporates and unions may just be shifted.

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Speaker 2: And the legal battleground just got a lot more intense.

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Speaker 1: You see, b Man unions have traditionally relied on membership

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Speaker 1: fees and donations to fund their legal.

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Speaker 2: Battles, and as a result, it only picked the cases

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Speaker 2: it could afford to win.

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Speaker 1: But b man at the fifty million dollars that were

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Speaker 1: to the Transport Workers Union means they suddenly have deeper

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Speaker 1: pockets to chase down more breaches.

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Speaker 2: Think under payments or wage theft or illegal sackings.

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Speaker 1: And for Corporate Australia this could become a big fat

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Speaker 1: wake up call.

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Speaker 2: And Quantus isn't the first company that has dealt with

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Speaker 2: wage and employment issues over the past decade.

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Speaker 1: Nope. Remember there was Melbourne UNI who'd underpaid more than

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Speaker 1: twenty five thousand employees to the tune of seventy two mil.

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Speaker 2: There was George Cullen Barris's restaurant made Establishment, which admitted

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Speaker 2: to underpaying employees nearly eight million dollars.

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Speaker 1: And of course your fave burger Grilled Yeah, also underpaid

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Speaker 1: their trainee starf so Jusi Boy.

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Speaker 2: With more cash to pursue cases, you can imagine more

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Speaker 2: cases coming to the forefront.

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Speaker 1: And potentially many other companies becoming the next headline.

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Speaker 2: For our second story. CSL, the Australian biotech giant, is

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Speaker 2: cutting almost three thousand staff globally as part of the

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Speaker 2: biggest shakeup of the last decade.

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Speaker 1: Talk about corporate blood. Letting be mehn, tell me more

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Speaker 1: about this one, all right.

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Speaker 2: So CSL is a Melbourne founded biotech company listed on

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Speaker 2: the ASX with a market value of more than one

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Speaker 2: hundred and thirty billion dollars and.

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Speaker 1: This makes its third largest company behind BHP and Combat.

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Speaker 2: Now, Dazboy, CSL has one heck of a biotech empire.

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Speaker 1: It's got CSL Bearing, which is the core business that

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Speaker 1: specializes in plasma drive therapies which helps people with bleeding disorders.

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Speaker 1: Then it's got Securis, which is its influenza r and

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Speaker 1: this is the second largest influenza vaccine company in the world.

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Speaker 2: And finally it's got CSL. And finally it's got CSL

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Speaker 2: V four, which focuses on iron deficiency and the man.

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Speaker 1: In the past fifteen years have been bleeding terrific for CSL,

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Speaker 1: with revenue climbing from five point three billion US dollars

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Speaker 1: in twenty fourteen over fifteen point six bill in twenty

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Speaker 1: twenty five.

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Speaker 2: For the last year for CSL has been quite a

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Speaker 2: bruising one Josey Boy.

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Speaker 1: In fact, that share prices slid around twenty percent.

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Speaker 2: So now CSL is cracking open the scalpel and making

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Speaker 2: some big cuts across the company.

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Speaker 1: First, it will demerge Cecuras into a separately listed ASX

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Speaker 1: company in the twenty twenty six financial year.

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Speaker 2: Then it also will cut three thousand jobs for about

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Speaker 2: fifteen percent of Star, and.

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Speaker 1: Finally it said it has plans to cut its R

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Speaker 1: and D spending.

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Speaker 2: Now, these moves are supposed to save CSL five h

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Speaker 2: and fifty million dollars a year by twenty twenty seven.

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Speaker 1: But be man, here's the kickout. It'll cost them six

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Speaker 1: hundred and twenty mil up front just to make these cuts.

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Speaker 2: Fascinating, So what is the key learning here?

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Speaker 1: Sometimes the best way to save money long term starts

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Speaker 1: with copying big expenses short term.

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Speaker 2: You see, companies often announce big job cuts and closures

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Speaker 2: with promises of cost savings down the track.

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Speaker 1: But those savings don't come for free. Well, there are

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Speaker 1: things like redundancy payments. There are lease terminations for shutting down.

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Speaker 2: Facilities, there are right downs of underperforming assets. As long

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Speaker 2: as the long term gain is worth it, be man

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Speaker 2: a juzzy boy. According to Gartner, only about forty three

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Speaker 2: percent of cost reduction programs hit their annual targets in

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Speaker 2: the first year.

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Speaker 1: And then sustaining those savings over a longer period. Success

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Speaker 1: rate plummets to just four point seven percent. So be

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Speaker 1: Man investors need to assess whether they believe the promised

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Speaker 1: cost savings are actually achievable.

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Speaker 2: And based on the ten percent hit to CSL share price,

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Speaker 2: doesn't look like they're picking up what CSL is putting down.

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Speaker 1: For our third and final story, Soho House, the exclusive

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Speaker 1: members only international club, is going private again after battling

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Speaker 1: in the public markets for the last four years.

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Speaker 2: Exclusivity and stock market investors don't seem to mesh, so

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Speaker 2: tell me.

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Speaker 1: More, okay. So so Her House began in London in

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Speaker 1: nineteen ninety five as a private members club for creatives

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Speaker 1: and juzzy boy. It developed a reputation of being ultra

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Speaker 1: exclusive and ultra expensive. Members go there to work and

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Speaker 1: socialize and most importantly, make sure you know that their

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Speaker 1: members and the man at Soho House has hosted everyone

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Speaker 1: from Lady Gaga to Prince Harry, Megan Markele.

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Speaker 2: Which is either a massive flex or a warning depending

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Speaker 2: on your taste.

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Speaker 1: And be Man. In twenty twenty one, so Her House

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Speaker 1: listed on the new York stuck Exchange at evaluation of

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Speaker 1: two point eight billion US dollars, but since then its

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Speaker 1: shares have fallen forty five percent and it's pretty much

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Speaker 1: exclusively lost money except for this quarter where it made

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Speaker 1: its first public quarterly profit.

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Speaker 2: But juziboy, it feels too little, too late.

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Speaker 1: YEP, So now so House a CEO and hotel behemoth

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Speaker 1: MCR are taking so House private again in a two

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Speaker 1: point seven billion US dollar deal, including death.

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Speaker 2: Because juziboy, not every business is built for the pressure

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Speaker 2: of public markets.

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Speaker 1: So what is the key learning here?

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Speaker 2: Exclusivity cells until you try to scale it.

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Speaker 1: Yeah. One of the trickiest balancing acts in business is

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Speaker 1: for companies to maintain exclusivity while chasing growth, and once

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Speaker 1: you try to turn exclusivity into mass appeal, the shine

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Speaker 1: can often wear off.

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Speaker 2: Michael Cores struggled with the exact same thing.

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Speaker 1: YEP started as a high end luxury fashion label, but

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Speaker 1: in the twenty tens it went for aggressive growth.

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Speaker 2: In fact, since Michael Cores attempted to grow its revenue aggressively,

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Speaker 2: it has actually gone backwards.

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Speaker 1: Revenues falling twenty five percent compared to the same quarter

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Speaker 1: five years ago.

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Speaker 2: Ah.

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Speaker 1: The ironyre So our Sohouse has scaled over two hundred

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Speaker 1: and seventy thousand members. It has come at a cost

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Speaker 1: to its market value. The cost of living still feels

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Speaker 1: very high, despiting place of being at a four year

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Speaker 1: low and prices are not coming down soon. So how

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Speaker 1: can Ozzie escape the cost of living jail? Well, we

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Speaker 1: have it all covered in the Flux out today. To

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Speaker 1: make sure to download the app and check it out.

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Speaker 2: Thanks for listening and we'll see you on Friday.