Trucking business says its struggling for work
A BUNDABERG transportation service has said its business currently has no work because of the Contractor Driver Minimum Payments Road Safety Remuneration Order 2016 (RSRO).
Opponents of the RSRO say it will force small owner-driver trucking companies to increase their fees which will result in them becoming uncompetitive - stripping small companies of work and resulting in higher prices on goods.
According to the Australian Government, the Contractor Driver Minimum Payments Road Safety Remuneration Order 2016 will, for the first time, set national minimum payments for certain contractor drivers in the road transport industry, specifically drivers involved in the distribution of goods destined for sale or hire by a supermarket chain, or long distance operations in the private road transport industry.
The new law means owner-operators now have to commit to a minimum charge fee for the services they render.
The same legislation however, doesn't apply to road industry companies who employ drivers, meaning they can offer a lower rate to clients than what owner-operators can.
"Our hirer has told us they cannot comply with the conditions of the RSRO," said a release put out recently.
"They originally said they would not be able to give us any work.
"They subsequently have offered to give us loads to Perth from Bundaberg buecause we are the local driver - but nothing back.
"It will not be economic to only be paid for half a trip."
Read the release HERE.
Find out more about the RSO HERE.
More to come