In 2025, the road transport industry in Australia stands at a transformative crossroads. The new transport legislation passed by the federal government has given us the power to fundamentally shift towards greater fairness and safety within the industry. This year we will start to see the impact of these reforms.
We’re also at a crossroads because this industry is changing dramatically with emerging technologies and the shift to net zero – we must make sure that happens the right way. Engaging with participants across the supply chain will be crucial to making sure these changes are not only effective but also long-term and sustainable.
At the end of 2024 I joined Industry Skills Australia’s Supply Chain Summit. There was a room full of people ready and willing to tackle the challenges we have in front of us, from leaders across the industry from government to transport businesses and industry clients. What’s crystal clear is that transport clients have to play their part. They must pay their fair share. It is essential that these clients now begin allocating the necessary resources to support these changes and address the fragmented nature of our industry urgently. Fair pay and good working conditions must remain bare-minimum essential factors for helping us tackle future challenges effectively.
The challenges in front of us are immense. The transition to net zero has the potential to pile more pressure on drivers and transport operators already on the brink. When owner drivers already in many cases can’t afford to maintain their vehicles, it is out of the question for the economic burden to fall on them. Transport remains the deadliest industry in Australia. In the last few months of 2024 alone, at least 13 people lost their lives in truck-related accidents. The lesson from the gig economy is that new technologies which promise flexibility and innovation are often a smokescreen for exploitation.
Economic challenges associated with transitioning to net-zero are also emerging, and we must be clear that the burden of this cannot fall on drivers or operators. The responsibility for driving this transition will have to lie with the top of the supply chains – our large clients. The transport reform laws give us the opportunity to ensure clients pay.
Transport is also one of the industries seeing the most insolvencies, with a total of 495 in the 2023-2024 financial year – a huge increase of 43 per cent from the year before. But having transport reform laws in place and seeing those supply chain leaders in a room ready to work together to tackle these challenges, that is light years ahead of where we were only a few years ago.
In 2025 we are going to be leaving no stone unturned to safeguard the lives of transport workers and protect the livelihoods of transport operators. We are on the path to create a level playing field through these reforms that benefit all industry players – workers, businesses and consumers alike.
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Reflecting on the work done by the TWU and the rest of the industry in 2024, we have positioned ourselves strongly for this year. We have also laid the groundwork for the years to come. Two of our three applications filed with the Fair Work Commission have focused on setting minimum standards in food delivery and last-mile parcel services to ensure fairer wages and better working conditions. The third application calls for stronger protections for operators right across the supply chain to fairer payment terms. What’s especially exciting and promising for 2025 is that the direct outcomes of these applications will soon be seen, with the Road Transport Advisory Group process having kicked off. Soon the industry will be having its say on these applications.
In February, another part of the laws will also kick in, and for the first time, provide legal protection against unfair contract chain terminations by large corporate clients. This will offer the beginnings of much-needed stability that the industry requires. Additionally, the push for gig economy protections will help address issues at the bottom of the supply chain and mitigate the threats they pose to decent contractors and operators in the road industry. While we work to prevent larger clients from cutting costs unfairly and imposing harsh terms on smaller contractors, these protections will not only safeguard last-mile delivery workers from exploitative practices, but also help protect transport operators from the competitive threat posed by gig players thriving on lower labour costs.
This dual approach, targeting both the top and bottom of the supply chain, is a crucial step toward restoring balance and stability to the industry. We know that reform is a marathon, not a sprint, and 2025 represents a crucial turning point for us all where we shift from ambition to real action.
Shaped by all the industry, these reforms allow a holistic view of complex contract chains and find a balance that works for everyone. Through active participation and collaboration, we can rebuild transport into an industry that prioritises fairness, safety and equity while embracing the innovation and sustainability needed to meet future challenges.
This is the year to do it.
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