The TWU has told an FWC-convened conference that it hopes to reach a consent position on how best to calculate soaring fuel costs to provide a basis for regular updates to supply chain orders aimed at spreading the pain, by Monday.
The union says by the start of next week, they will provide the Commission with a more detailed proposal to speed supply chain cost recovery measures and prevent further disruptions.
TWU legal and industrial strategy director Lorraine Biviano says that previous oil shocks, including the Ukraine and Gulf wars, “have never been of this magnitude and have never been this dramatic”.
She says that for many road transport operators, particularly owner-drivers at the bottom of the supply chain, an “eight per cent increase is the difference between keeping the wheels turning or not”.
Ahead of the hearing, the union and ARTIO floated several “potential solutions” to be discussed at this morning’s conference including:
- Requiring parties to road transport contracts or arrangements to conduct weekly reviews of the fuel cost recovery element (drawing on the Australian Institute of Petroleum’s weekly fuel price reports), with the primary parties to “absorb” the fuel cost;
- Having the FWC determine and publish an appropriate formula on a weekly basis, which would “require adjustment to amounts paid for cost recovery of fuel having regard to the amount determined to be the national average fuel cost”; or
- Establishing a set fuel levy or surcharge for transport operators or regulated workers, to be “adjusted weekly having regard to the increase in fuel costs associated with Australian Institute of Petroleum data”.
Australian Business Lawyers & Advisors’ Nigel Ward for Australian Business Industrial, Aramex, FedEx Express, Team Global Express, NSW Business Chamber and Toll Group says that many companies have already begun to review fuel prices more regularly and to address rising costs.
He referred to a company that usually reviews fuel prices on a quarterly basis but brought its review forward and will now make an assessment on a monthly basis.
The company has agreed to cover owner-drivers’ increased fuel costs.
A representative for DoorDash says that the company has introduced a temporary weekly fuel relief program from March 21 to April 30, with payments scaled from $5 to $25 for drivers who travel between 100km and 500km.
The TWU acknowledged that some companies are confronting the issues, but many smaller operators are being asked to “shoulder” the costs and say it would be helpful for the Commission to create a “benchmark” to protect operators down the chain.
Given that the promised amendment empowering the Commission to make “emergency” supply chain orders has not yet passed, the parties gave the prospective powers only cursory consideration and instead focussed on what the FWC can currently do, including the possibility of issuing a recommendation or guidance.
Biviano says that the TWU will speak to other parties that indicated their interest in further discussions to try to reach a degree of consensus on a more detailed proposal, suggesting that a further conference would be useful.
Vice President Mark Gibian says he will consider the TWU’s proposal on Monday before deciding on the progress of the matter.