Freight bodies back action on sham contracting
Road Freight NSW and Western Australia Transport Industry Association
Road Freight NSW (RFNSW) and Western Australia Transport Industry Association Inc (WATIA) have backed a Fair Work Commission application aimed at tackling sham contracting in the road transport industry, but call on the commission to action it quickly.
The application, lodged by the Transport Workers’ Union and the Australian Road Transport Industrial Organisation, proposes new requirements covering the use of ABN workers, contracting practices and unpaid waiting time.
RFNSW CEO Simon O’Hara said the issue was having a direct impact on transport businesses doing the right thing.
“Operators who pay their workers correctly and meet their safety, tax and employment obligations are being forced to compete with businesses that avoid those same responsibilities,” Mr O’Hara said.
“That is putting pressure on already tight margins and making it harder for reputable transport businesses to remain competitive.
“We support the application moving forward through the Fair Work Commission and want to see a practical outcome turned around quickly that addresses deliberate sham arrangements without capturing genuine owner-drivers.”
WATIA CEO Cam Dumesny said the problem was being seen across the country and could not be addressed state-by-state.
“Sham contracting is affecting transport businesses in Western Australia just as much as it is in New South Wales,” Mr Dumesny said.
“It distorts freight rates, shifts risk onto drivers and gives non-compliant operators an advantage over businesses that follow the rules.
“There has been plenty of discussion about this issue and what is needed now is a coordinated response from government, regulators and industry.”
The application follows a resolution passed unanimously at the Australian Labor Party National Conference in July, calling for stronger action on sham contracting and greater use of the Fair Work Commission’s Road Transport Advisory Group.
Mr O’Hara and Mr Dumesny also acknowledged Senator Glenn Sterle’s work bringing transport businesses, industry associations, unions and government agencies together on the issue.
“The industry is largely united on the need to stop sham contracting,” Mr O’Hara said.
“The focus now should be on getting the detail right and delivering an outcome that supports legitimate operators and workers.”
Contact details:
RFNSW media contact: Morgan Clark 0427 994 521