OPINION: Owner-drivers and small business owners should never go broke because of late paying customers
Have you ever carted for late payers? Chasing invoices at 60 or 90 days? What if you could pick up your next load and know you’ll have money in the bank in the next two to four weeks? What about companies that send you a rate SMS each month changing the prices and you are now dropping $15/tonne? What if the minimum manifest you accept covered your actual costs?
Have you ever unloaded the freight safely and six weeks later your payment is refused because page 17 was unsigned? Undercut on a job you’ve done for years? You know you pay your drivers right. The other mob must be cutting maintenance and sham contracting? E.g. flat rate via ABNs.
The call for transport reform has never been so critical or urgent for all of us. Transport has been a dog-eat-dog race to the bottom for far too long.
Already, the ‘big end of town’ organisations are painting it as a bad idea. I don’t know many seasonal fruit pickers who are on EBAs so the same job same pay ad misses the mark. Mostly it disappoints me that they really think we are all mugs.
Look, if the only way your business model works is to not pay your bills and to rip people off who are trying to support their families, then you need a better business model.
In the words of National Road Freighters Association (NRFA) past president Gordo McKinlay, “This legislation has the potential to make trucking a viable career again”.
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Western Australia Senator Glenn Sterle. Photo by Greg Bush
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In 2019, Australian truckies, companies and organisations were given a voice. Western Australia Senator Glenn Sterle chaired a Senate Inquiry called ‘Without Trucks Australia Stops: the development of a viable, safe, sustainable and efficient road transport industry’. The inquiry, lasting till 2021, delivered 10 recommendations after meeting with people just like us across Australia.
“Our industry is at a critical point. We need change that bolsters our viability, builds productivity and enhances safety for everyone.” – NatRoad CEO Warren Clark.
Closing loopholes
The Closing Loopholes Bill was tabled in Federal Parliament in early September. And, of course, here is the obligatory disclaimer that this is not legal advice and not a complete summary.
Of note: Empowering the Fair Work Commission (FWC): The Closing Loopholes Bill empowers the FWC to set minimum standards and hear disputes about unfair contract terms for smaller operators who wouldn’t otherwise afford the time or the cost of the current mechanism of lawyering up in the federal court. It’s about industry fairness, plain and simple.
Flexible minimum standards
The Commission has discretion in determining what those minimum standards will cover, such as fair payment time, contract terms and fairer cost recovery. But unlike what happened in Road Safety Remuneration Tribunal (RSRT) it’s crucial that these standards don’t hurt the viability or competitiveness of owner-drivers and smaller businesses. With Minimum Standards you’ll be able to compete for work based on your value or set yourself apart with a service or business innovation that’s better than anyone else’s knowing that no one can undercut you below the floor level of the minimum standard.
“Having Minimum Standards in place ensures an equality of competition and improved outcomes for transport operators and their customers. We don’t want another RSRT – we want something better.” – Peter Anderson, Australian Road Transport Industrial Organisation (ARTIO).
Real industry expertise
A Road Transport Advisory Group (RTAG) will be established within the Fair Work Commission. It’ll consider applications for standards, guided by road transport people – making sure our voices continue to be heard. This is what sets it apart from the RSRT … truckies know what needs to be done and don’t need pen pushers making decisions we have no say in and that they know nothing about.
Genuine engagement
Before setting minimum standards, the FWC must ensure there’s been genuine engagement with the parties and consider the realities of our industry’s commercial side.
“We’re a government that brings people together, and that’s what we’ve done with these important road transport reforms.” – Minister Tony Burke.
Notice of intention
All parties will get a fair go with a ‘notice of intention’ process, giving them time to mull over draft minimum standards before they become binding. No surprises and no chasing your tail at short notice.
Addressing specific issues
The legislation won’t tread on issues already covered by other laws. It’s about plugging the gaps and making our industry better. If it ain’t broke, don’t fix it.
Contract chain provisions
We all know Chain of Responsibility (CoR). As drivers and employers we face substantial investigation post incident. Where CoR falls short is that it looks at the parties involved in the physical and administrative tasks involved in the movement of that load. And usually after the fact, whether that be a tip off to the National Heavy Vehicle Regulator (NHVR) hotline or, God forbid, an actual incident.
Contract Chain Provisions give the FWC and RTAG (Road Transport Advisory Group) the ability to look at the top end. Perhaps the consignor squeezing transport for discounts or untenable contracts signed with no regard for safety or cost recovery. Equally, if someone wants to play pass the parcel with the load then it’s possible that they might have to quote higher, to account for the missing pieces of pie once there is a minimum standard floor level.
Let’s consider the recent fall of a major company, contracted to major retailers, sending full trailers out the gate, going to the wall when the retailers are posting profits – the contracts were unviable. Almost every argument in the transport industry boils straight back down to raw cost recovery.
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The NRFA, Transport Workers Union (TWU), NatRoad and ARTIO have worked hard together to advocate for all in transport to build a stronger future – a future where truckies can be proud, safe and profitable again.
“This is reform that has been shaped by industry … we call on Federal Parliament to pass this reform without delay.” – Michael Kaine, TWU national secretary.
Never in the history of Australian transport has there been a more united call for reform, from all levels of the industry. You should never go broke doing a good job simply because of a late paying customer or because the “top end of town” wants you to subsidise their profits at the expense of your livelihood.
Reach out to the NRFA for a chat.
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*JULIE DOWNEY is an NRFA board member and has been in the transport industry for 23 years. She has held her MC since 2007 and travelled most of Australia by truck with experience in admin as well as driving. Julie is well known in industry and political circles for her transport and road safety advocacy work