The Road Safety Remuneration Tribunal draft order for driver payment has sparked argument in the industry, as employers predict job losses and higher compliance costs while union claims the order will ease pressure on drivers.
The tribunal's draft order proposes new minimum pay rates for truck drivers as recommended in a KPMG report, which employers claim are substantially higher than current market rates, the Australian Financial Review reported.
“Ai Group is still assessing the impact of the draft minimum rates, but from feedback received from industry so far it appears that the rates are well above market rates,” said Ai Group Chief Executive, Innes Willox.
“If made the current terms, it appears that the order will threaten the livelihoods of many owner drivers and the viability of transport operators that use them.”
Willox said the order “would impose a very onerous and unwarranted regulatory burden on transport operators and their clients which would cost jobs and threaten the viability of transport operators”.
However, Transport Workers Union National Secretary, Tony Sheldon, said the proposed rates were comparable with those paid to drivers directly engaged by Linfox and Toll, and argued the order would ease pressure on drivers by putting in place contract and auditing obligations on those at the top of supply chains.
He said 29 per cent of drivers currently receive wages below the award rate once their vehicle and running costs were taken into account. He said the proposed changes would help address driver fatigue and encourage operators to compress the supply chain.
Workplace lawyers said the decision would impact all retailers and those in the supply chain as retailers will have to manage compliance of their supply chain partners to ensure minimum payments to drivers are met.
“A retailer will also have to conduct its own audit of compliance and it will have a positive obligation to report non-compliance,” said Andrew Farr, a partner with law firm Lander and Rogers.
“A retailer may even have obligations to audit the drivers themselves. The additional compliance costs will be substantial.”