Removalists hit as Malcolm Turnbull moves to axe roads body

Malcolm Turnbull will move to scrap Labor’s Road Safety Remuneration Tribunal when parliament resumes next week.

Malcolm Turnbull in Perth yesterday.

Malcolm Turnbull will move to scrap Labor’s Road Safety ­Remuneration Tribunal when parliament resumes next week, as it emerges that a ruling by the body will greatly increase costs charged by interstate removalists and expose families to $10,000 fines for underpayments.

The government yesterday ­revealed that it would introduce legislation to abolish the tribunal in addition to separate legislation freezing new pay rates included in a recent controversial “safe rates” order as soon as parliament resumed on Monday.

The government’s move came after independent senator Jacqui Lambie backed the scrapping of the regulator established by Julia Gillard in 2012 and Queensland senator Glenn Lazarus flagged the introduction of his own legislation to axe the regulator.

Employment Minister Michaelia Cash said that the government would stand “shoulder to shoulder” with owner-drivers and framed the legislation to abolish the tribunal as a “test of leadership for Bill Shorten”.

“This is an opportunity for the Labor Party to fix the mess they created,” Senator Cash said.

Moves to dismantle the tribunal intensified after its controversial order forcing self-employed truck drivers to lift their prices triggered fears more than 35,000 small businesses owners would be priced out of the market.

The Australian Furniture ­Removers Association confirmed that the order captured interstate removalists who worked as owner-drivers, and warned that it could expose individuals to ­penalties if they failed to pay the higher rates.

AFRA executive director Joe Lopino said he received legal ­advice on the new pay regime, and warned that it would “impact directly” on the 8350 furniture ­removal ­enterprises across the nation, many of which were family ­businesses. “A member of the public could be caught up within compliance requirements of the order,” Mr Lopino said.

“We believe the tribunal should be scrapped promptly.

“If you’re an owner-driver and your interstate journey exceeds 200km then you will be captured ... Toowoomba to Tweed Heads is 206km and that could be captured by the order, too.”

Mr Lopino said the Fair Work Ombudsman had failed to provide answers to several questions from AFRA about how the order would operate and its impact on the delivery of part loads.

Responding to questions from The Australian, the ombudsman confirmed the tribunal’s order “could cover an individual hiring a contractor driver to transport personal household furniture” if it involved a trip of more than 200km across a state border.

Australian Industry Group chief executive Innes Willox said there were “many complexities to the issue” but he warned those moving interstate could be punished if they failed to pay the higher rates to removalists covered by the order.

“The fact is that homeowners relocating interstate who engage an owner driver to move their furniture and belongings will need to be very careful that they do not breach the order,” Mr Willox said. “The penalties are very hefty.”

Under the 2012 legislation passed by Labor, an individual breach of the act would incur a penalty of $10,800 while a corporation would face of penalty of $54,000.

Australian Chamber of Commerce and Industry workplace relations director Richard Calver said the order would “affect the man in the street” in “day-to-day dealings with transport issues”.

Tony Abbott yesterday urged the government to seize any opportunity to dismantle the tribunal, telling The Australian he tried to scrap it while he was prime minister, but was thwarted by a hostile Senate.

“If there’s the slightest chance that we get legislation to abolish the tribunal passed, of course we should put it up,” he said. “If one of the independent senators is to put up legislation to abolish the tribunal, frankly, we should be prepared to support it.”

Senator Lambie is the fifth crossbencher to back the abolition of the regulator and said the new pay rates handed an unfair advantage to large-fleet operators who were unaffected by the shake-up.

While independent senator John Madigan supports a plan to freeze the new pay regime until next year, he cautioned against scrapping the tribunal.

“The RSRT should not be kicked to the kerb without giving consideration to how these concerns will be met,” Senator Madigan said.

“There needs to be further discussion about a suitable replacement, if that in fact is the best way forward.”

Palmer United Party senator Zhenya Wang has also stopped short of backing the abolition of the tribunal, along with Australian Motoring Enthusiast Party senator Ricky Muir.

The Transport Workers Union acknowledged that some furniture removalists would be captured by the order, but said the government was “one of the biggest users of furniture removalists” through the relocation of defence personnel.

“Toll, which has come out against the tribunal today, has held the government contract for these services for many years and that work has been subject to questionable penalties and low rates,” a TWU spokeswoman said.

A High Court challenge against the tribunal on grounds it is unconstitutional was formally lodged yesterday on behalf of Independent Contractors Australia, who have also sought an urgent injunction to halt the new pay regime.