The ALRTA has slammed the suggested return of the RSRT and mandatory minimum rates
The Australian Livestock and Rural Transporters Association (ALRTA) says a leaked document confirms that the federal government is preparing to return mandatory minimum rates.
In its weekly newsletter, the ALRTA says the document suggests the government is ready to revive the powers of the Road Safety Remuneration Tribunal (RSRT) that was previously abolished in 2016.
The ALRTA says the federal government has made no secret of its intention to re-establish an authority to set minimum rates and conditions for owner-drivers.
In 2021, it became formal policy at the Australian Labor Party National Conference. That same year, the Labor-Chaired Senate Rural and Regional Affairs and Transport References Committee Report ‘Without Trucks Australia Stops: the development of a viable, safe, sustainable and efficient road transport industry’ made the same recommendation.
Ultimately, the government took the policy to the 2022 federal election and won.
The leaked document indicates that additional powers will be given to the Fair Work Commission to do much the same job as the former RSRT.
ALRTA President Scott McDonald says it was important not to repeat the mistakes made by the RSRT.
RELATED ARTICLE: Queensland announces additional funding to cover drought impacts
“The RSRT was an absolute disaster for rural trucking. It created a two-tiered freight market in which owner-drivers became uncompetitive and tied up in red tape,” McDonald says.
“Shortly before the 2016 payments, order came into effect, our member owner-drivers began receiving letters from head contractors advising that their services would no longer be required. Almost immediately, people lost their work. Families lost their businesses. And sadly, some took their own lives.
“There were flow on effects along the entire supply chain. Truck and trailer orders were cancelled en masse. Small regional economies servicing owner-drivers with fuel, tyres, servicing, food and clothing were left reeling.”
McDonald says he understands that small operators are struggling, but he says that fixing rates isn’t the answer.
“Owner-drivers are small business people who need freedom to innovate, adapt and accept work on their own terms. Rather than being continuously located at ‘the end’ of a sub-contracting chain, rural carriers often share work amongst each other and constantly change positions in the contracting chain,” he says.
“It is this short-notice, low red-tape, flexibility that enables the rural road transport sector to move seasonally unpredictable farm produce over vast geographic areas to domestic and international markets as efficiently as possible.
“Fixed minimum rates cannot take account of different business circumstances and practices such as backloading, part-loading, multi-owner loading, empty running, vehicle modifications, business innovation, debt and complimentary business activities which are an important part of efficient freight movements in the rural sector.”
McDonald says if someone can perform a task below the minimum rate because it suits their particular business circumstances, they should be allowed to do so.
“Instead, ALRTA would prefer greater focus on practical safety measures, financial education, elimination of sham contracting, maximum payment timeframes and accessible dispute resolution,” McDonald says.
“With our deep understanding of the problems experienced under the RSRT, we expect that the federal government will listen to our concerns and work constructively to avoid a repeat of the previous debacle.”