TWUWA – A must read for Owner Drivers

T RANSPORT WORKERS‘ UNION

By Tim Dawson | Branch Secretary

The Transport Workers Union has been campaigning to increase the powers of owner operators in the transport industry.

For too long WA Owner drivers have been subjected to taking rates that are not safe or sustainable. Take it or leave it will no longer be the norm.

And the clients and economic employers who use owner operators to transport their goods based on the lowest price, will no longer be the norm.

Fuelling a race to the bottom forcing owner operator’s into undercutting each other. The Owner-Drivers (Contracts and Disputes) Amendment Bill 2022 will go a long way to stopping that.

In 2008, the TWU was instrumental in the State Government implementing the RFTIT (Road Freight Transport Industry Tribunal) established under the Owner-Drivers (Contracts and Disputes) Act of 2007.

The Tribunal seeks to promote a safe and sustainable road freight transport industry by regulating the relationship between persons who enter into contracts to transport good in heavy vehicles who hire them to do so.

Referred to as the “OD Act” it governs employees, sub-contractors, cooperations and partnerships that carry out the business of transporting goods. But despite some amendments in 2010, the Act fell short in providing adequate protections for a safe and sustainable transport industry.

Until now.

The TWU has been tirelessly working to amend the Owner Driver Act, with changes made by a new Owner Driver Bill being very beneficial to owner-drivers.

The Owner-Drivers (Contracts and Disputes) Amendment Bill 2022 will give Owner-drivers greater protections against hirers. Which include protections against unfair or unreasonable terms in owner-driver contracts, making it easier and quicker for owner-drivers to recover monies owed by to them by hirers.

The changes will also allow the Road Freight Transport Industry Tribunal (“the Tribunal”) the ability to arbitrate disputes relating to negotiations of owner-drivers’ contracts between a group of owner-drivers and a hirer. The amended OD Act will also make an owner-driver contract unconscionable if the contract provides for payment to the owner-driver at a rate that is less than the Guideline rates.

The changes to the OD Act that are made by the OD Amendment Bill, are substantial and will result in owner-drivers having significantly more rights and protections than they currently have.

As well, owner-drivers will have access to an expanded range of remedies if they refer a matter to the Tribunal. Importantly, for many owner-drivers, the OD Amendment Bill makes the Guideline Rates enforceable, which is not the case presently.

The OD Amendment Bill is a big win for owner-driver members of the TWU and, owner-drivers generally. This win is a result of several years of hard work by the TWU. That included, making submissions to the Government about how the OD Act could be improved, discussions with Government Ministers and Premier to make sure that the Government delivers on its promises to amend the OD Act, consultation with industry and discussions with the Department of Transport.

Those efforts have paid off, and as a result owner-drivers will have greater protections, and will have access to a wider range of remedies in matters that go to the Tribunal. Accordingly, hirers will be required to pay owner-drivers rates that are safe and sustainable.

The TWU is still campaigning to get this legislation to include vehicles under 4.5 tonne. The small vehicle, courier and parcel delivery sector of the transport industry is the fastest growing sector in the transport industry, and is open to exploitation of Owner-drivers and workers. Having an industry body and tribunal to bring disputes will go a long way to cleaning up the industry and clawing back more power for transport workers that are exploited by the clients at the top of the supply chain.

The next step in a more safe and sustainable transport industry is for the Federal Government to introduce legislation against the drive to the bottom by the clients.