The Transport Workers’ Union (TWU) is seeking an increase to owner driver income threshold for unfair contract terminations.
With transport reform legislation soon to be reviewed, the union wants the threshold to be increased to ensure drivers investing significantly in their businesses aren’t denied access to appeal.
The TWU, in conjunction with the rest of the industry, lobbied for transport reform legislation to begin creating a safer, fairer and more sustainability road transport sector.
Transport reform laws included new rights for owner drivers to appeal against unfair contract terminations, but the cap on income threshold meant that owner drivers could be excluded despite their take-home pay being far under the threshold. TWU national secretary Michael Kaine says these rights are crucial for owner drivers’ ability to call for a fair return on investment without fear of having their contracts terminated.
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“Owner drivers invest significant amounts in their businesses, and still often operate on slim margins. It’s crucial that the income threshold is lifted to allow owner drivers to access justice if their contracts are unfairly terminated,” he says.
“The reality of the transport industry is that if you’re running a small business, you’re already working hard to earn a decent income and keep the wheels turning. Before these rights existed, owner drivers also had the threat that their contracts would be ripped up if they tried to fairly recover their costs from their clients.
“Increasing the income threshold for owner drivers is a sensible change to this legislation that will ensure more owner drivers can keep doing their work without the threat of an arbitrary contract termination hanging over their heads.
“This is just another piece of the puzzle towards a fairer road transport industry. With the first round of applications using the laws also well on their way to putting decent standards in place, and more applications to come, we’re using every tool at our disposal to make sure drivers and operators can earn a decent income and run a decent business.”
Under the same transport reform laws, the TWU worked with the industry to make applications including for maximum 30-day payment terms for drivers and operators, with many struggling under 120-day payments. The TWU is now also working with the rest of the industry on other applications addressing urgent needs in road transport.
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