Following an application form the the Transport Workers’ Union of Australia (TWU) and the Australian Road Transport Industrial Organisation (ARTIO) for a road transport contractual chain order (RTCCO) dealing with fuel cost recovery the Fair Work Commission has published a draft Order and Notice of Intent that would require participants in the supply chain to ENSURE that secondary participants are FULLY REIMBURSED for the increase in fuel prices. This rushed process is seeking to apply to all transport contracts and could have significant impact across multiple industries.
The Fair Work Commission published a notice of intent and a draft road transport contractual chain order which confirms that the Commission proposes to make a road transport contractual chain order.
The draft order:
- applies broadly to work performed in the road transport industry (excluding the cash in transit industry),
- contains specific definitions relating to fuel, increased fuel costs and contractual rates,
- establishes obligations upon primary and secondary parties in a contractual chain, and
- contains commencement, operation and cessation provisions.
The draft order, if ultimately made (with or without amendments), would establish enforceable fuel cost recovery obligations across road transport contractual chains.
Publication of the Notice of Intent triggers the formal consultation process under the FW Act, during which parties to be covered and other interested parties may make submissions on the draft order before the Commission determines whether, and in what form, the order should be made.
The Notice of Intent is issued further to the Expert Panel’s statement in [2026] FWCFB 83. In summary, the Expert Panel’s statement:
- confirms that the Commission heard a joint emergency application by the TWU and ARTIO seeking an expedited road transport contractual chain order in response to escalating fuel costs across the supply chain,
- explains that the application is being dealt with under the emergency framework introduced by the Fair Work Amendment (Fairer Fuel) Act 2026, following the Minister’s determination that MS2026/1 is an emergency application,
- notes that the proposed order would include rules about fuel cost recovery in road transport contractual chains and would operate across multiple sectors of the industry, subject to exclusions,
- emphasises that, notwithstanding the expedited process, the Commission is still required to ensure affected parties have a reasonable opportunity to be consulted and to make submissions on the draft order.
The Expert Panel also foreshadowed an extremely short consultation process, including a conference and a further hearing later this week for parties to comment on the operation and impact of the proposed order before the Commission reaches a final decision.
Industry concerns
Key concerns of business operators include the lack of a clear sunset provision in the draft order and the specificity of the obligations imposed on parties with no clear way to calculate the figure associated with cost recovery.
Get Involved
ACAPMA invites Members to forward comment on this Order to communications@acapma.com.au
Further information, including the draft order and Expert Panel statement, is available on the Fair Work Commission’s MS2026/1 major case webpage.
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Elisha Radwanowski BCom(HRM&IR)
ACAPMA
