New TWU-Toll EBA imposes conditions on subbies

Date: 12.11.2013

Freight cartage agreements require subbies to meet host of key conditions to win or retain work with Toll

New TWU-Toll EBA imposes conditions on subbies

Conditions on Toll subbies remain in new EBA

By Brad Gardner | November 12, 2013

Toll sub-contractors will need to match the company on employee rates of pay until at least 2017, along with meeting a host of other key conditions.

The new enterprise bargaining agreement (EBA) between Toll and the Transport Workers Union (TWU), which the Fair Work Commission approved this month to run for four years, includes requirements all new and existing Toll sub-contractors must meet.

Companies need to submit to audits, the results of which may be made available to the TWU, implement safe driving plans to manage driver fatigue and ensure drivers attend site inductions, which include having a TWU official speak to them for 30 minutes.

Furthermore, all of Toll’s New South Wales subbies need to pay their drivers the same wage they would receive if they worked directly for Toll. The EBA guarantees Toll employees a 15 per cent wage increase between now and July 1, 2016.

Sub-contractors in other jurisdictions must commit to paying staff at least 10 per cent higher than the Award rate.

The conditions form part of what Toll calls a freight cartage agreement, which was included in the previous EBA between it and the TWU.

All Toll sub-contractors will receive a letter advising them of the requirements, and Toll has committed to informing the union of the companies that have not signed a freight cartage agreement.

Freight cartage agreements will only apply to full loads and sub-contractors not engaged on an ad-hoc basis. Those involved solely in long distance work are excluded, provided that Toll undertakes random audits to ensure they comply with Award obligations.

Toll workers last month endorsed the new EBA, which along with a 15 per cent pay rise gives them superannuation payments of up to 13.25 per cent by the end of the agreement.

The EBA allows Toll to bid for new work at lower rates by matching what a competitor is paying its employees. This is limited to Toll's contract logistics division and must involve the TWU's approval. Furthermore, Toll has agreed that lower rates of pay will be brought into parity with other Toll sites within three years of the company acquiring the new work.

The EBA also signs up Toll to the five-star safety rating scheme the National Heavy Vehicle Regulator is developing.

The document says Toll will support a national trial of the scheme and participate in the development of accreditation and assessment standards.

While not committing Toll to supporting the Road Safety Remuneration Tribunal (RSRT), the EBA states the company recognises the body "provides a forum in which to seek improvements in the industry".

Toll says it will work with the union on how the tribunal may be used to achieve improvements.