Commission agrees to cut subbie rate

Australian Industry Group and big-name operators including Toll and CEVA win fight to cut sub-contractor rate

By Brad Gardner

The pay rate for some sub-contractors will be cut by almost 2 percent after the Australian Industry Group won a legal bid to amend a contract determination.

The NSW Industrial Relations Commission ruled in favour of an application to reduce remuneration by 1.97 percent for sub-contractors who work under the Transport Industry – Car Carriers Contract Determination.

Using witnesses from Toll, Advanced Car Carriers and CEVA Logistics, the AI Group argued sub-contractors were benefiting from an inflated rate because fuel prices had fallen 18.15 percent since the rate was last adjusted in April.

"Calculations at that time were based on the relevant cost components as at September 2008," Commissioner Peter Connor says.

The 1.97 percent cut took effect on August 13, after Connor rejected a request from the Transport Workers Union (TWU) to dismiss the application.

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