Industry groups are lobbying to give more owner-drivers protection under new workplace relations laws.
Under the closing loopholes legislation that comes into play from August 26, regulated road transport contractors will be able to apply to the Fair Work Commission to resolve disputes about unfair contracts and unfair terminations.
But at present, that excludes anyone with an income of $175,000 or higher, meaning many owner-drivers with high costs, and tight margins, will miss out on that possible course of action.
It is not currently possible to set different thresholds for different industries.
But in a letter to industry groups, Minister for Employment and Workplace Relations, Senator Murray Watt said government would seek to amend the provisions to allow different thresholds for different purposes.
“I acknowledge your concern that contractors in the road transport industry carry a high level of business costs and a threshold of $175,000 may not be high enough to provide meaningful access to some of the new provisions,” Watt said in the letter.
“When the first opportunity arises, I will seek to amend the provisions to allow different thresholds for different purposes under the Act to ensure all those who should benefit from the new jurisdictions are able to do so.”
Australian Trucking Association (ATA) chair Mark Parry said that it had become clear in the ATA’s consultations with the government that setting a single threshold for all contractors was not workable.
“Road transport contractors face very high business costs, and the figure that is reasonable for our industry is too high to be workable for some other industries,” Parry said.
The Transport Workers’ Union also welcomed a confirmation from Watt that the high income threshold for road transport contractors will be reviewed and amended at the earliest opportunity.
“It’s encouraging to see that the industry advocacy and consultation with union members and industry groups like ARTIO, NatRoad and the National Road Freighters Association which created this system is continuing to inform the federal government’s decisions on its implementation,” said TWU national secretary Michael Kaine.
“Small business owner-drivers and fleet operators have high costs, yet extremely tight margins. Throughout this process, we have made clear that the threshold must reflect this to ensure the protections are adequate and far-reaching.
“It is crucial that owner-drivers have the confidence to negotiate fair rates and conditions, and are able to raise safety concerns without fear of losing work. The transport industry and our economy depend on small business operators being able to carry out their work safely, sustainably and viably.”
In the letter sighted by Big Rigs, Watt said the earliest a regulated road transport contractor can make an application to the commission under the new unfair termination provisions will be February 26, 2025, “due to the eligibility requirements to access that jurisdiction”.
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