The new transport reform laws which have been talked about for quite some time finally came into force in August, which I think can’t come soon enough for us owner drivers.
Operators have seen rates go down, along with safety standards, and drivers often struggle to make ends meet with the tight margins.
The absence of regulation has meant that our negotiating power is restricted – not only on rates, but on other conditions – because we’ve had no protection against a client simply terminating our contract if we speak up. That will change under these laws. We now have access to the Fair Work Commission for the first time, and from February we will have the right to challenge unfair contract terminations.
In the first days of these laws coming into effect, the Transport Workers’ Union put in applications to start building a safety net of standards.
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One of the most significant changes for owner drivers is an application for fairer payment terms throughout contract chains.
The TWU’s application does two things: first, it calls for payments to be made within 30 days of a job being completed, and second, it calls for the removal of ridiculous payment terms that reduce rates year on year for longer-term contracts. We shouldn’t be screwed over by a technicality that is designed to save money at the expense of our financial well-being and ultimately, our safety. Let’s face it trucks are a never-ending pit of expenses with so many specialised parts, so the more available cash for operators, the better.
These changes to payment terms would apply throughout the supply chain, meaning it no longer has to be a difficult conversation for us to navigate. All those weeks and months we have often spent chasing payments for work completed should soon come to an end. Getting paid sooner gives us financial security and more available cash for repairs and maintenance.
Even though payment terms have improved for the majority of owner drivers there are still some clients that stretch out payment to 60 and 90 days.
Another part of the application that affects owner drivers is allowing disputes over payment amounts to be heard by the Fair Work Commission. This means it’s not just us against the company — an independent arbitrator is there to support the process, which I think really will work in our favour. We’re not looking to rip off clients, we just want a fair deal.
The other applications made by the TWU are targeted in areas to address the exploitation in the gig economy that has dragged down standards even further with the likes of Uber and AmazonFlex coming into the market.
Even though this might not directly affect us right now, it protects us in the future. The gig economy has been one of the biggest threats to our jobs as we know them. Overseas, Amazon and Uber engage truck owner drivers on low rates, on a take it or leave it basis through apps. There’s no notion of negotiation — not even a human to talk to. For those drivers, their work, right down to the route they take and how long they’re on the road, is monitored and controlled through algorithms. Bringing in standards for gig economy workers in transport stops the disastrous undercutting that was coming for us.
Now that these applications have been made, there’ll be a process of consultation with the industry before the Fair Work Commission makes any orders to set standards into law. Although it slows down the standards we desperately need, it’s so important that drivers and operators have a say on how changes to our industry will affect us.
These applications show how this system can introduce some quick fixes that will make our work easier. Over time, we need to see these standards built up to address more of the issues we face.
For too long, things have been weighted in favour of big corporates that engage the transport industry, and too much against drivers, who have little opportunity to negotiate fair rates and conditions. The new laws coming into force can see a greater balance between drivers and companies.
The more things like fair payment terms, cost recovery, and realistic deadlines become enforceable standards for everyone, the less time we have to spend trying to push back against unrealistic, dangerous demands. We should never feel the pressure to compromise our safety or that of other road users to win or retain contracts. Having a safety net means we can negotiate decent outcomes on top of what is already the norm, or the industry standard.
Fair standards means better-rested drivers, properly maintained vehicles, a decent living, dignity in retirement, and ultimately, a safer environment for everyone on the road.
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