Nationally, the transport industry has seen a 173 per cent rise of insolvencies as operators struggle under the sustained pressure from higher operator costs, rampant red tape and bureaucratic delays, and persistent shortages of drivers and skilled personnel.
The professional and compliant transport operators already struggling with the sustained pressure are now facing an even greater threat, a rapidly growing shadow economy of sham contractors.
Given the severity of the issue, Western Roads Federation joined with its peak body counterparts from other states, the Transport Workers Union, and operators of all sizes across Australia to meet with federal ministers and senior officials to call for an urgent multi-agency task force.
The meeting organised by WA Senator Glenn Sterle ensured the passionately argued concerns and proposed solutions of industry were heard in Canberra last week.
Key amongst the concerns raised by industry was the use of sham contracting. Sham contracting is a practice where workers are misclassified as independent contractors, often under an ABN despite working under conditions that legally define them as employees.
By misclassifying workers, companies can avoid paying superannuation, leave, workers compensation and taxes. This provides them with a significant commercial advantage over compliant businesses.
Anecdotal evidence links sham contracting to lower compliance with heavy vehicle regulations, misuse of rest areas including possible environmental and WorkSafe breaches, absence of requisite insurance policies, and reduced road safety.
I’m confident that Canberra received the message loud and clear but setting up the multi-agency taskforce and addressing regulatory gaps requires time.
Meanwhile, we are offering to work with the WA Government and the Transport Workers Union, to build on some of the identified state level solutions we have to prevent this sham contracting virus from spreading further into WA.
Western Australia has shown that collaboration between government and industry can deliver cost effective outcomes, such as the heavy vehicle driver training program.
We can build on this model of collaboration to develop the identified state level collaborative solutions required to help stop the spread of this sham contracting virus in WA.
It is worth noting the identified solutions will also concurrently improve productivity, safety and lower emissions.
- Cam Dumesny is the CEO of the Western Roads Federation.