Truck drivers and road transport businesses will get relief from sharp fuel price increases, with the Fair Work Commission today making its first road transport contractual chain order following legislative amendments from the Albanese Government.
The FWC's decision follows Labor's Fairer Fuel amendments that created a new pathway for truckies and transport operators to seek urgent contract chain orders.
Labor's amendments were designed to help truck drivers receive a fair go when the Middle East conflict causes fuel prices to spike.
The FWC's decision means from Tuesday 21 April, parties across road transport contractual chains will be required to update the rates they pay for road transport services every fortnight to reflect changes in fuel prices.
This includes supermarkets, retailers, manufacturers and other businesses that contract road transport services, as well as transport and logistics companies along the chain.
The order is flexible and recognises that different arrangements already exist across the industry, giving parties flexibility in how they meet the requirements.
Existing arrangements used to manage fuel price changes can satisfy the requirements of the order.
To ensure the order only applies while fuel prices remain unusually high, the commission has included safeguards.
These safeguards mean the requirements will stop once average diesel prices fall below $2 per litre, and the Commission will review the order after its first month of operation and then every three months to ensure it remains appropriate.
In response to stakeholder feedback, the obligation in the order to undertake rate reviews does not apply to the cash in transit industry, or to small businesses that require the delivery of freight by road.
Quotes attributable to Amanda Rishworth, Minister for Employment and Workplace Relations:
"This order is about fairness. Truck drivers should not be left carrying the cost of global fuel shocks that are completely outside their control.
"By requiring fuel price changes to be reflected in transport rates, this order helps protect hard working truckies and small businesses from being pushed to the brink.
"This is the first order made under the Albanese Government's road transport reforms and sits alongside our National Fuel Security Plan to help Australia respond to fuel disruptions and keep goods moving across the country."
