The national body wants the government to consider the impact this will have on truck operators
The National Road Transport Association (NatRoad) says the federal government’s decision to increase the national minimum wage will cause the transport industry to struggle financially as fuel price increases continue to hurt the sector.
Yesterday the federal government announced that wages would be increased by 4.6 per cent or $40.00 per week for some award-based occupations.
NatRoad says this change will mean road transport operators will struggle to meet these new labour costs.
With many operators still struggling to make ends meet due to rising fuel prices and the increased cost of living, the NatRoad warns against making operators pay for increased wages too.
NatRoad CEO Warren Clark says the profit margin of member road transport companies was about 2.5 per cent, meaning a bump in wages would lessen the gap.
“Operators are struggling under sky-high fuel prices and other pressures, and this will hit many of them hard,” Clark says.
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Clark says the federal government must act right away to make the necessary changes required to ensure operators and owners don’t continue to bleed money in these current conditions.
“This underlines the importance of the new federal government moving quickly to reform the industry, particularly regarding unfair contract terms,” Clark says.
The NatRoad CEO says operators can’t be forced into losing money through new wage deals that will occur through this rise in minimum rates, or else the industry may crumble.
“It’s imperative that members aren’t locked into loss making contracts, particularly in the face of a substantial award minimum wage increases order,” he says.