The Fair Work FWC (FWC) has commenced an urgent conferencing process in response to a request from the Transport Workers' Union (TWU) and an association of employers in the road transport industry. They have asked the FWC to provide urgent assistance to facilitate discussions amongst a wide range of stakeholders in the road transport sector and broader supply chain, with a view to addressing recent fuel cost increases. Australian Industry Group has taken a leading role in responding to this matter. We successfully opposed the TWU's request that the FWC direct supply chain participants to attend.

Documents filed by the TWU indicate that the union and transport association may pursue road transport supply chain regulatory intervention to:

  • require primary parties (customers of road transport companies) to absorb the cost of fuel price rises through weekly price reviews and contract rate adjustments, which may be based on formulae determined or published by the FWC; or
  • impose a fuel-related “levy” or surcharge payable to transport operators, owner drivers and gig workers, to be adjusted weekly having regard to published data regarding average fuel prices.

Proposed amendments introduced into the Australian Parliament on 26 March would allow the Minister to determine that an application for a road transport contractual chain order (RTCCO), made after commencement of the amendments, is an “emergency application”. Such a declaration would allow the FWC to expedite mandatory consultation timeframes, such that orders imposing binding obligations on many thousands of road transport supply chain participants may come into effect at very short notice following a brief opportunity to make submissions.

We will continue to play a major role in relation to these issues and will keep our members updated as these matters progress.

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