The practice of companies hiring truck drivers who don’t own or operate their own vehicle on individual ABNs rather than as employees, to avoid paying them what they would be entitled to under an Award, is a serious problem in our industry that needs to be addressed urgently. We must protect drivers’ rights and entitlements, and ensure a level playing field for businesses who do the right thing.
Deliberately misrepresenting to these drivers that they are being engaged as independent contractors not only deprives them of their entitlements, like leave, penalty rates and workers’ compensation, it is illegal under sham contracting laws. There is also a significant safety issue, since drivers pushed into accepting work as ‘contractors’ on low pay with no leave will often break the rules by driving longer hours to make up the shortfall in income.
It also puts businesses who are doing the right thing, by complying with government regulations and paying drivers correctly under employee contracts, at a disadvantage as they lose out on work due to being undercut on price.
Employers engaging in this practice should be dealt with under the Fair Work Act and hit with the appropriate civil penalties. Applying the force of the law is the only deterrent that will work.
Aside from the illegal nature of the practice, it’s clearly in the Federal Government’s interests to take action: the non-payment of entitlements to drivers means governments are missing out on millions of dollars in revenue in the form of unpaid payroll tax, PAYG tax and workers compensation premiums.
If any of these drivers also miss out on superannuation during their working lives they will eventually pay the price personally, and could end up costing future governments if they become reliant on financial support like the age pension.
NatRoad is in regular contact with the ATO on this and other issues affecting the road transport industry, and we will continue to push for them to take more action.
It’s no secret our industry is under considerable pressure right now, so it’s more important than ever that the government acts to protect the businesses who follow the rules and pay their drivers what they are owed, rather than leave them to lose out to unscrupulous operators who cut costs by taking advantage of hard working truck drivers.
*Warren Clark is CEO of the National Road Transport Association.
NatRoad communications are intended to provide commentary and general information.
