The proposal to create a ‘safe rate’-setting tribunal for the heavy vehicle industry is a ‘heavy-handed’ regulatory approach, the Australian Logistics Council (ALC) says.
In a submission on the Road Safety Remuneration Bill 2011, lodged today, the ALC said the move would not improve safety or increase productivity.
“ALC argues… that the creation of a central body to set remuneration in the heavy vehicle industry should not be passed by the parliament for two key reasons,” ALC Managing Director Michael Kilgariff said.
“First, no definitive link between remuneration and safety outcomes in the heavy vehicle industry has been determined.
“And second, the heavy vehicle industry is already subject to numerous regulations and legislation at both the state and national levels relating to driver safety,” Kilgariff said.
Australia will have a national approach to Chain of Responsibility, starting on 1 January 2013 as part of the National Heavy Vehicle Law (HVNL).
This means all parties in a supply chain can be held responsible for safety, if it can be demonstrated they may have contributed to an incident or a breach under the new law, the ALC said in a statement.
“ALC believes this law needs to be given time to develop before another layer of safety regulation is added,” Kilgariff said.
The ALC opposed the Bill, on the grounds that it was “unworkable” in the long distance sector, as pay rates frequently vary.
“There is no such thing as a “safe rate” at which safety applies,” Kilgariff said.
“Furthermore, a company cannot know what a “safe rate” of pay is when the truck driver is carrying for more than one customer,” he added.
The Council re-emphasised its support for schemes such as the industry-backed ALC National Logistics Safety Code, which aims to enhance safety along the supply chain.
“ABS figures also show that productivity growth for the transport sector has effectively stalled, with an increase of only 0.6 percent per annum in the five years to June 2011,” Kigariff noted.
“The Road Safety Remuneration Bill will impede industry efforts to increase productivity as it will limit their ability to run their businesses in a commercially efficient manner,” he said.
The ALC’s position is that establishing a Tribunal would be premature in the absence of any definitive evidence that proves the link between remuneration and safety levels.
“Instead of introducing the Tribunal, the Government should encourage the National Heavy Vehicle Regulator, which comes into effect in less than 12 months, to identify ways to further increase road safety,” he said.
Kilgariff said he was disappointed the Transport Workers Union has been more focussed on advocating in favour of a rushed Commonwealth law, rather than working with industry on the Heavy Vehicle National Law.
“Industry has been working with all governments to develop the detail of the Heavy Vehicle National Law, but now must contend with an additional layer of regulation and an emotive campaign to implement a rushed scheme which has yet to be proven as a definitive way to improve safety in the sector,” he said.
Image credit: At-Your-Need Logistics