The Fair Work Commission (FWC) has today handed down a landmark order, delivering hope for drivers and transport operators pushed to the brink by soaring fuel costs to save their businesses, ahead of a looming fuel debt cliff.
The order will take effect tomorrow 21 April.
The order, following an application by the TWU and ARTIO, will require clients of transport-retailers, manufacturers and mining companies-at the top of the supply chain to conduct fortnightly fuel reviews and pay enough for owner drivers and transport businesses to cover skyrocketing fuel prices.
This funding will then need to be passed all the way through the supply chain to ensure all parts of the chain remain sustainable and viable. This is the first time transport clients have been held to enforceable standards for the transport services they use to cart their goods.
It will be pinned to diesel prices as published by the Australian Institute of Petroleum, and remain in place as long as diesel prices are above $2 per litre.
The order is the first Contract Chain Order made by the FWC under laws passed by the Albanese government, which allow the FWC to make enforceable orders encompassing the entire transport industry.
Though owner drivers and transport businesses are still facing huge fuel bills, this order will now provide confidence in the industry that they'll be able to cover their costs going forward.
TWU National Secretary Michael Kaine said:
"This is a historic order from the Fair Work Commission that, for the first time, puts obligations on the wealthy clients at the top of our supply chains to pay their fair share to the transport industry.
"Over the last few weeks drivers and transport businesses have outlined the dire circumstances they are facing with diesel costs, many already having to park up their trucks or rely on personal loans just to keep going.
"Many drivers in the industry are mum-and-dad operations currently being forced to subsidise fuel costs for the multi-billion-dollar companies they are carting goods for. These clients of transport must pay their fair share, and today the Fair Work Commission has recognised that this should happen on a fortnightly basis going forward.
"We commend the Federal Government on acting quickly so we could ensure fast-tracked relief for the transport industry which is at breaking point. Though there is still a hugely challenging period ahead for the industry, this order will be a lifeline to transport business and our national supply chains."
ARTIO National Secretary Peter Anderson said:
"The entire transport industry will benefit from this emergency fuel order, which will assist transport businesses small and large with getting through the fuel crisis.
"The nation's road transport supply chains are critical in keeping our economy running. If the trucks stop the economy stops. This Order ensures that all of the road transport industry has certainty in maintaining their services and that the additional extraordinary fuel costs will be recovered from their customers.
"This order won't solve the fuel crisis entirely, but it will mean businesses can continue running with the knowledge that wherever price goes, they'll be able to recover it."
NRFA National President Glyn Castanelli said:
"For some transport operators who are already forking out loans to pay last month's sky-high fuel bills, this order comes at a critical time. Now these operators can have confidence that going forward, they'll be able to recover those costs and keep the wheels turning, which is good news for both them and our national supply chains.
"This order is a huge lifeline to the transport industry and we will be keeping a watchful eye to ensure clients are keeping to their obligations."
Notes
– The TWU, as well as peak transport employer body ARTIO, and NRFA, jointly called for action to assist drivers and transport operators:
- March 15: Initially called on Fair Work Commission to urgently bring the transport industry together
- March 23: Then called on Federal Government to pass laws to allow urgent Fair Work Commission orders in road transport, to expedite the process
- April 2: Once laws were passed, TWU and ARTIO (supported by NRFA) made an emergency application in FWC to call for fuel costs to be paid by the retailers, manufacturers and mining companies at the top of the supply chain, calling on Workplace Relations Minister Amanda Rishworth to use new emergency powers to expedite the process
- April 7: Minister Rishworth makes declaration to allow process to be expedited as an emergency application
– The Albanese government first passed laws to enable the FWC to make enforceable orders in transport in 2024, with the TWU's initial applications in consultation with the industry made in August that year. These applications, which are subject to a minimum six-month waiting period, are working their way through the FWC.
– Companies that have appropriate fuel adjustments in place will be taken to have complied with the order. Since the TWU's application, Woolworths and Coles have both moved their fuel reviews to fortnightly, and Uber has implemented a 5c per kilometre surcharge that will go directly to drivers.
