The road transport industry is a vital component of Australia’s economy, helping to ensure the continued operation of our nation’s supply chain.
As CEO of NatRoad, I am acutely aware of the challenges our truck operators face, from driver shortages to the complexities of maintaining efficient and profitable operations.
Yet, with an expected 57.1 per cent increase in road freight by 2040, the need for professional truck operators is only growing.
That includes those with operator employees, and those who are relying on regulated road transport contractors (RRTCs) to ensure goods are being moved. RRTCs are an important part of our sector.
Recently, NatRoad responded to the Road Transport Industry Termination Code Discussion Paper by the Department of Employment and Workplace Relations.
There is no doubt in my mind to the importance of getting this right. In our submission, we’ve highlighted the need for a Termination Code that ensures fair practices, is flexible and works to protect our trucking businesses as well as their employees, contractors and sub-contractors.
Truck operators must invest significant time and money in their vehicles and equipment.
Yet to do so, operators, especially regulated road transport contractors (RRTCs), must feel confident in the surety of the work they have secured.
The proposed Termination Code must recognise this and provide appropriate notice periods and flexibility in termination processes. This will help prevent abrupt contract terminations that can leave operators stranded and financially vulnerable.
The Fair Work Legislation Amendment (Closing Loopholes No. 2) Act 2024 introduces much-needed protections for RRTCs against unfair termination.
In addition, the Fair Work Commission will establish both an expert panel for the trucking industry, as well as a Road Transport Advisory Group, specially designed to ensure the voice of our industry and our operators are heard.
Only those who are on the road, and those who support them have a real and true understanding of the realities of our industry. These moves are certainly a step in the right direction, but more needs to be done.
A well-structured Termination Code will ensure that terminations are based on valid reasons and reflect the unique structure and operational dynamics of our industry.
This goes beyond simple commercial practices, beyond the bottom line, to working with purpose to ensure operators are confident in the income secured through contract arrangements, which in turn secures the broader industry and the nation’s supply chain.
Through our Submission, we have called for the following:
Protection Against Unfair Termination:
• Establishing clear criteria to differentiate between regular, systematic engagements and irregular or sporadic engagements.
• Ensuring that terminations are based on valid reasons such as conduct-related breaches, capacity-related issues, or genuine commercial reasons.
Secure Investments:
• Recognising the significant investments made by truck operators in their vehicles and equipment.
• Providing appropriate notice periods and flexibility in termination processes to reflect the nature of the industry and protect operators from abrupt contract terminations, therefore keeping them on the road where they are needed.
Fair Commercial Practices:
• Developing a termination code that supports the unique structure and operational dynamics of the road transport industry.
• Ensuring that contracts are reliable and that operators can confidently invest in their businesses. At NatRoad, we are committed to advocating for policies that support the stability and growth of the road transport sector.
A fair and practical Termination Code is essential to ensure that truck operators can confidently invest in their businesses, secure in the knowledge that their contracts are reliable and their contributions to the economy are valued. The future of our supply chain depends on the stability of our truck operators.
We will continue to advocate for a Termination Code that balances the rights and obligations of all parties involved, ensuring a robust and fair road transport industry for years to come.
Warren Clark
National Road Transport Association
CEO