Ruling ‘to drive truck costs up’: Toll

A logistics firm has warned it faces rising costs of up to 55 per cent after an industrial ruling on trucking pay.

One of Australia’s biggest logistics firms has warned it faces rising costs of up to 55 per cent after an industrial ruling imposing minimum pay rates for long distance contract truck drivers that has been condemned by the transport and retail industries.

The draft decision by the Road Safety Remuneration Tribunal, based on “nonsensical” evidence, suggests drivers be paid for rest periods and some leave.

Toll Holdings said the ruling, which will be finalised by the end of the year, could force it to pay self-employed truck drivers up to 55 per cent more in regional areas, or up to 30 per cent across the business.

Toll, which was acquired earlier this year by Japan Post in a $6.5 billion deal, added it was “unable to tolerate the increased payments” and the “increased cost in freight transportation has the ability to lead to increased costs in goods and serves through the community”.

Submissions on the decision also attacked modelling by KPMG, appointed to advise the panel on the minimum rates and which Toll labelled “incredibly inflated or overstated and not experienced” in the industry.

Toll also said it could be forced to make “significant adjustments to its operations to exclude owner-drivers”, some of whom it has had a business relationship for decades.

Trucking company Linfox said some of the inferences KPMG used to arrive at the suggested rates were “nonsensical”.

Retailers have also complained that the ruling will add compliance costs. JB Hi-Fi said the ruling suggested it would have to audit the manufacturers of products on its shelves — “each participant in the supply chain” — to guarantee compliance with the order, leading to “significant” compliance costs.

The Australian Industry Group said the ruling could force higher costs for consumers and warned of potential job losses.

Another logistics operator, Border Express, said it would “consider reverting to a fleet only comprised of employed drivers”.

But the Transport Workers Union has backed the ruling.

“When drivers are not … paid for waiting times or unloading times, they are put under pressure to skip breaks, drive faster, for longer with overloaded vehicles in a stressed and tired state,” TWU national assistant secretary Michael Kaine said.