The Albanese government has declared that spiralling fuel costs represent an emergency for the trucking industry in a draft order, paving the way for the Fair Work Commission to force companies throughout the economy to pay more for moving their goods.
Workplace Relations Minister Amanda Rishworth issued the draft determination late on Tuesday, giving just over 24 hours for people to provide feedback, in a rushed move ahead of a Fair Work hearing on the potential pay orders that begins on Wednesday.
With the average bowser price of diesel stubbornly above $3 a litre, any orders granted by the commission to force big business to pay more for moving goods could grant relief to truck drivers but put more pressure on already stubborn inflation.
Rishworth’s draft order would grant emergency status to an application by the Transport Workers’ Union (TWU) and Australian Road Transport Industrial Organisation for the commission to force retailers, manufacturers and mining companies to conduct weekly reviews of fuel prices.
If prices go up beyond the contracted price, the company sending the goods would have to cover the cost, as opposed to small truck and logistics operators.
“I hereby determine that the application is an emergency application,” Rishworth’s draft order states, citing the “significant reduction in shipping through the Strait of Hormuz.”
Rishworth said on Tuesday evening that she would consider evidence before making a final decision. “I am committed to providing any other parties who wish to comment, an opportunity to provide feedback on my proposed determination.”
But feedback is open only until 8pm AEST on Wednesday. The commission will begin its hearing on the union and industry association’s request that morning.
Rishworth said the commission “is still required to genuinely engage with the parties in determining the application”.
Some companies such as Woolworths and Australia Post have already increased their fuel levies to help drivers cover the increasing cost of staying on the road.
TWU national secretary Michael Kaine welcomed news of the draft emergency determination. “This quick action towards an emergency declaration by the workplace relations minister is an encouraging sign to the transport industry and a recognition of the urgency around this fuel crisis,” he said.
Speaking of broader orders that the unions are seeking, Kaine said that “drivers who have been in this industry for decades have never seen it this hard”.
“It is critical that we see fuel costs paid for by the top of the supply chain – the retailers, manufacturers and mining giants that are already increasing costs for customers, while truck drivers and businesses are struggling to hold on,” Kaine said.
Peter Anderson, the industry association’s national secretary, said that while some companies were doing the right thing and increasing what they paid in fuel relief to the transport companies they use, “there are far too many still refusing to pay their fair share”.
“Transport businesses small and large are weeks away from shutting up shop, if they haven’t already. We urgently need to see clients putting in place weekly fuel reviews to keep national supply chains running sustainably, and businesses in operation,” Anderson said.
At a previous hearing on the union and association’s request, several groups raised concerns. Brent Ferguson, representing the Australian Industry Group, National Road Transport Association, South Australian Road Transport Association and Bega Group, said that “there isn’t a clear one-size-fits-all approach” to fixing the issue and that contracts varied widely.
Last week, FWC president Adam Hatcher issued a statement saying that while “initial steps” could be expedited as far as practicable, an urgent issuing of any orders was “ultimately dependent upon the minister determining that the application has emergency status”.
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Elias Visontay is a National Consumer Affairs Reporter at The Sydney Morning Herald and The Age.Connect via email.