Around 35,000 small family businesses that provide 70% of the freight movement in the supermarket and long distance transport sector are now threatened with extinction by the operation of the Road Safety Remuneration Tribunal’s Contractor Driver Minimum Payments Road Safety Remuneration Order 2016 (the Order).

The Order that comes into effect on 4 April 2016 has set up an unworkable system of minimum payments that does not allow owner drivers to compete on a fair market basis with fleet operators.  Whilst it is agreed that the sector should receive a fair and reasonable return for their work, the minimum rates do not allow owner drivers to compete with fleet operators for the lesser amount of freight transported on return journeys (back loading).  Without the ability to negotiate a back load rate, the majority of owner drivers will have no work for return legs and will be forced to exit the industry. 

We wish to also make you aware that the majority of owner drivers do not have formal contractual arrangements with hirers that can be relied upon with much of the work undertaken on an ad-hoc basis as work becomes available.

At the date of this petition many owner drivers have already been given advice from hirers that they will have limited or no work available after 4 April 2016.The Order will have a disproportionate and higher impact on regional areas particularly those areas with limited or seasonal return freight tasks.

We also express concern for the range of other small businesses that rely partly on my continued operation for their survival, and who also have mortgages and payments to make on capital purchases such as the expensive equipment that owner drivers must provide.

On behalf of our organisation and the many thousands of small family transport businesses that are affected by the Order we request your support and intervention in having the implementation date of the Order delayed for a period of 6 months.

At the very least a delay in the implementation date will assist our businesses to consider an alternative business strategy that will allow us to compete on a level playing field with fleet operators.