As part of the ongoing work in the Road Safety Remuneration Tribunal (RSRT) in the Grocery and Long Distance area, the Tribunal has released a detailed model of contractor rates for comment from the industry.

The aim of the model is to ensure that rates that are paid to contractors are consistent and include provision for maintenance and other factors.

There has been mixed response to the draft model and comment is expected to be split.

Some industry groups have claimed that the model represents rates 30% higher than the industry average.

The model is open for comment until 23rd September 2015 and detailed information is strongly encouraged by the Tribunal.  President Acton, Commissioner Hampton and Professor Williamson note that claims that the model is above average have yet to be backed up by information.  They go on to say  “We draw no negative inference from the non-provision of that material. However, we would expect that in any future submissions the parties will provide the analysis and data that underpins their submissions,”.  The Tribunal notes that based on the information they have that the models impact on the viability of businesses, the national economy and the movement of freight across Australia is likely to be “minimal”.

The impact of this addition to the Order will primarily be felt by those moving goods destined for sale in a Grocery Store, however there will be implications to businesses engaging contractors, or businesses that contract transport carriers who engage contractors, to do ANY long distance work.

ACAPMA will be making a submission, however it encourages any members who utilise contractors to do long distance work, or who have contracts with other freight companies to carry long distance work, to familiarise themselves with the model and understand the impact it will have on their business, and make submissions on that impact.  ACAPMA is available to assist members with submission requirement and approach if required.  Contact employment@acapma.com.au for assistance.

The Tribunal will accept submissions on the draft order and a draft online payments calculator until 23 September 2015.  More information on the model and the RSRT can be found here; Draft Order [2015] RSRTFB 11 (26 August 2015); Statement [2015] RSRTFB 11 (26 August 2015)