Transport & Logistics Newsletter

Issue 3: October 2007

Welcome to our Transport & Logistics Industry Newsletter, focused specifically on providing information on topical legal issues facing members of the transport and logistics industry. Cornwall Stodart is widely recognised for its expertise in the Transport and Logistics industry. Our clients are indicative of the diversity of the industry, and range from road freight companies and logistics businesses to major players in the extractive industry. Also, our association and sponsorship of the Victorian Transport Association (VTA) gives us an invaluable insight into issues affecting the industry as well as opportunities to service VTA members.

We regularly advise clients on workplace relations and occupational health and safety issues, dispute resolution, commercial contracts, intellectual property issues, property and taxation matters. If you would like further information on any of the topics in this newsletter or information on a different topic, please do not hesitate to contact us. We appreciate your feedback and look forward to hearing from you.

Elizabeth Guerra-Stolfa - Partner and Head of the Transport Industry team

 

Back to Top

Managing Fatigue in the Road Transport Industry

Increased charges…methods of overcoming driver fatigue… preventing breaches of work hours – these are all aspects of new and proposed legislation for the road transport industry which owners, managers and drivers need to understand.

Heavy Vehicle Registration Fee Increase
On 1 July 2007 registration fees for heavy vehicles increased by a maximum of either 3.5 per cent or CPI (whichever is lower).


Despite this increase, it is anticipated that heavy vehicle registration charges may potentially increase significantly in the future on account of the fact that road expenditure has increased 29 per cent and the regulators (being The Council of Australian Governments (COAG) and the Australian Transport Council (ATC)) are keen to ensure that heavy vehicles are charged according to their road usage.


The Third Heavy Vehicle Charges Determination will be implemented on 1 July 2008. The types of changes that have been mooted are a doubling if not a quadrupling of registration fees over time.

Proposed Road Transport Bill– Heavy Vehicle Driver Fatigue Act 2006 (“Bill”)
As part of the Third Heavy Vehicle Reform package, the ATC endorsed a legislative framework in February 2007 for fatigue management in the road transport industry. The rationale for the Bill is to legislate heavy vehicle driver fatigue as part of a system of nationally-consistent road transport laws.

“Heavy vehicles”
The Bill applies only to heavy vehicles, defined as a truck with a gross vehicle mass over 12 tonnes or a bus built to carry more than 12 passengers.

Who this Bill would apply to
The Bill proposes that from September 2008, any person who either:

  • drives a regulated heavy vehicle (including employees or self-employed drivers);
    or
  • influences the conduct of drivers of heavy vehicles while driving
    (eg. employers, prime contractors, schedulers, consignors and loading managers)
    is required to identify, assess and provide for the safe management of fatigue.

This Bill also proposes provisions to accommodate the Chain of Responsibility legislation, which came into force in 2005.

Fatigue obligations under the Bill
The Bill defines “fatigue” as feeling and/or behaving in a way that makes a person sleepy, or physically or mentally tired. It provides that a driver must not drive a heavy vehicle if impaired by fatigue. If they do they may attract a severe risk offence. In addition, it provides that a party in the Chain of Responsibility must also take reasonable steps to ensure a driver is not impaired by fatigue.

There are also specific duties outlined in the Bill for employers, prime contractors, operators, schedulers, consignors, consignees and loading managers.
For example, a person is prohibited from asking, directing or requiring a person to drive:

  • while impaired by fatigue; or
  • in breach of work/rest hours.


In addition, a person is prohibited from entering into a contract or agreement with a driver and a party in the Chain of Responsibility if the person knows or reasonably ought to have known that the driver is impaired by fatigue or in breach of their work/rest hours.

Back to Top

 

Fatigue modules
The Bill sets out three work/rest hour fatigue modules that a company or owner operator may choose to operate under. Each of
these fatigue modules provides its own specific requirements to ensure the safe management of fatigue:

  • Standard Hours: In any period of 24 hours, a driver must not work more than 12 hours; or
  • Basic Fatigue Management (BFM). In any period of 24 hours, a driver must not work more than 14 hours; or
  • Advanced Fatigue Management (AFM). In any period of 24 hours, a driver must not work more than 16 hours.


Work diary obligations under the Bill
The Bill provides that irrespective of the fatigue module chosen, every driver must carry a work diary (either written or electronic) if:

  • engaged in work within a radius of more than 100km from the driver’s base (‘100+ km work’);
  • engaged in 100+km work in the last 28 days; or
  • driving under BFM (14) or AFM (16) hours.


These work diaries will replace the current logbooks and must be kept for three years. Existing logbooks will be permitted for use under the proposed Standard Hours scheme for 90 days after the Bill comes into force. Work diaries will be issued by the relevant authority. There are infringement and court-imposed penalties for not recording the necessary information, falsifying records and/or tampering with electronic diaries.

BFM and AFM accreditation
Drivers and companies wishing to operate under either BFM or AFM, must be accredited, with an approved fatigue management system compliant with standards and business rules strictly set out under each of these regimes.
The National Transport Commission (NTC) has prepared a report entitled “Setting Standards for Knowledge and Awareness about Fatigue Management in the Heavy Vehicle Industry”, outlining the required competencies for all parties affected by the Bill. These standards indicate that as part of BFM and AFM accreditation, all personnel should be inducted and regularly updated in fatigue management policies and procedures.


Accreditation can be varied, suspension or cancelled by the relevant authority.


Reasonable steps defence
The Bill provides for a “reasonable steps” defence in circumstances where a person:

  • has taken all reasonable steps to prevent a contravention; or
  • could not reasonably be expected to have taken any steps to prevent a contravention.

The Bill sets out some examples of what would constitute taking reasonable steps, including:

  • consulting drivers and reviewing driving and work schedules;
  • reviewing loading and unloading times and allowing for some delays;
  • regular health and safety audits; and
  • a system for remedying problems of fatigue and work/rest hours

Penalties under the Bill
It is proposed that penalties will be enforced by an authorised officer or police officers and that proposed contraventions will be assessed by risk, ranked from minor to severe with breaches attracting penalties of up to $50,000.00 per offence and demerit points for drivers.


Transitional provisions
If a driver is accredited under the Transitional Fatigue Management Scheme (TFMS) the Bill allows affected parties under TFMS to transmit smoothly either to BFM or AFM. Current TFMS accredited operators who do not apply for BFM or AFM will transfer to the 'default' Standard Hours regime.


Proactive ways to ensure your company is safely managing fatigue

  • analyse all current freight/bus routes undertaken and determine what fatigue management module works best for your
    business;
  • write procedures on how your organisation carries out different freight/bus routes;
  • maintain a register of all freight/bus routes and when and where your drivers should have rest breaks;
  • ensure you have a fatigue management system as part of your induction program including all staff involved in the
    freight/bus task within your organisation;
  • create procedures that will ensure drivers reach their home/sleeping quarters to prevent breaches of working hours with the
    proposed laws;
  • if your organisation’s freight/bus routes are between states or territories, govern your fatigue management systems around
    the ‘worse case’ scenario to ensure compliance; and
  • talk to your clients/suppliers to make sure they understand their responsibilities and obligations under the Bill.

 

For further information, please contact Elizabeth Guerra-Stolfa on +61 3 9608 2144 or e.guerra@cornwalls.com.au or Jody Freestone
on +61 3 9608 2110 or j.freestone@cornwalls.com.au

Back to Top

 

Coalition vs Labor: Industrial Relations Policies going into a Federal Election
Industrial relations (IR) is one of the central issues in the forthcoming Federal election, but this also means disinformation is rife on the main political parties’ IR intentions. If the Australian Labor Party (ALP) wins, will the trade unions really be marching into local workplaces as shown in recent TV adverts? If the Coalition manages to turn around the current polls and win, will people be forced on to Australian Workplace Agreements (AWAs) and paid less than they were two years ago?
To help clarify the issues, we have set out below a summary of the main principles of the Coalition and ALP industrial relations policies, so, hopefully, you can make up your own mind about how industrial relations in Australia will look in the future.

Coalition

Australian Labor Party
Where is the policy detail?

The laws in force now.
Minister Joe Hockey has also announced the Coalition will unveil an updated IR policy before the election (this has not been released as yet).

The ALP policy framework is set out in ‘Forward with Fairness’. The ALP has also released a separate implementation plan for this policy.
Minimum Standards

The Australian Fair Pay and Conditions Standard (AFPCS) apply to all employees.


The AFPCS covers basic rates of pay and casual loadings, maximum ordinary hours of work, annual leave, personal leave, parental leave and related entitlements.

Ten National Employment Standards (NESs) will apply to all employees.


The NESs are: hours of work; parental leave; flexible work for parents; annual leave; personal and compassionate leave; community service leave; public holidays; information in the workplace; notice of termination and redundancy; and long service leave.


The NESs will be in force from 1 January 2010.

Individual Agreements

Australian Workplace Agreements (AWAs) will be retained.


All AWAs (and collective agreements) for employees who earn less than $75,000 are subject to the fairness test.


If the fairness test applies, the employee must receive ‘fair compensation’ if the AWA removes or modifies protected award conditions (e.g. penalty rates, leave loadings, allowances, overtime rates).

AWAs can run their full course (up to five years). Existing AWAs can only be terminated while in operation if both parties agree.


Employers will not be able to enter into new AWAs, but if the employer has previously used AWAs, the employer can enter into Individual Transitional Employment Agreements (ITEA), which will apply up to 31 December 2009.


An ITEA must not disadvantage the employee against a collective agreement, or if there is no such agreement, an award or the AFPCS.


Employees earning over $100,000 will be free to agree their own pay and conditions under an individual agreement, without reference to an award.

 

Collective Agreements

Employee collective agreements and union collective agreements are possible.


(AWAs take precedence over collective agreements).

Collective agreements are at the heart of the ALP IR policy.


Non-union collective agreements will be available.


Each collective agreement must include a flexibility clause, allowing for individual agreement between an individual employee and the employer on certain issues.

Awards

The Award Review Taskforce is to rationalise and simplify the award system.


To date, little progress has been made.

The current award system will be simplified and modernised over the next two years.


New awards will contain 10 basic award conditions, and industry specific information regarding the NESs.


New awards will be in force from 1 January 2010.

Unfair Dismissal
If the employer has less than 100 employees, or if the employee is dismissed for genuine operational reasons, the employee cannot claim unfair dismissal.

If the employer has less than 15 employees: an employee can claim unfair dismissal if employed for at least 12 months.


If the employer has 15+ employees: an employee can claim unfair dismissal if employed for at least six months.


Claims of unfair dismissal must be brought within seven days of termination.


A Fair Dismissal Code will be introduced. If this Code is followed, a dismissal should be considered fair.

Right of Entry
Strict limits on union powers to enter workplaces.

Existing right of entry laws will be maintained, and only authorised permit holders will be allowed entry.

Industrial Action

Industrial action only permitted during bargaining for a new collective agreement, after a secret ballot.


(Industrial action is not permitted for the duration of an existing AWA).

Industrial action will only permitted during bargaining for a collective enterprise agreement, and if approved by employees in a secret ballot.


Current provisions regarding secondary boycotts in the Trade Practices Act, and allowing access to the Courts to prevent unprotected industrial action, will be retained.

Building Industry

The Australian Building and Construction Commission (ABCC) will be maintained.

The ABCC will be maintained until 31 January 2010. Following that date the responsibilities of the ABCC will be transferred to a specialist division of Fair Work Australia.


(Fair Work Australia would be a new one stop shop for all IR issues, including an inspectorate, hearing complaints and provision of information).

Congratulations to the Winners of the Australian Freight Industry Awards

In mid-September, Cornwall Stodart attended the 18th Annual Australian Freight Industry Awards. The awards
were hosted by the Victorian Transport Association (VTA). Over 1,400 guests attended the Melbourne Convention Centre for the most prestigious event on the freight and logistics calendar.

The unique awards are designed to reward excellence and to raise the standards and public perception of the
Australian Freight and Logistics Industry. VTA Chief Executive, Mr.Philip Lovel, said, “These awards celebrate all the
positive achievements and great people who work in this industry”.

Cornwall Stodart congratulates the following winners:
Australian Best Practice Safety Award

This award recognises the most innovative and practical safety solution in the workplace in any mode of freight and
logistics.
The Safe-T-Steel Trailer – Extra Transport Group and Barker Trailers.

Australian Freight Innovation/Technology Award
Recognises any industry group or organisation that has applied innovation/technology solutions to an industry issue or
problem in the supply chain or any other freight and logistics operations.
“The Floatliner” Delivery Trailer for the Australian Glass Supply Chain System.

Australian Freight & Logistics National Operator Award
Recognises companies that specialise in the movement of freight nationally and locally around Australia. Criteria
include safety incentives, technology developments, customer/supplier alliances, financial strength, customer relations,
community activities and growth.
CRT Group

Operation Countdown Safety Award
Operation Countdown is an association of private enterprise and the Victorian Police, dedicated to increasing road
safety awareness and reducing the road toll. This award recognises the company, group or individual who has made a
significant contribution to safety / or demonstrated a safety regime that is best practice.
Linfox Logistics Group

Australian Freight and Logistics Young Professional Award
Recognises the up and coming young professional who is excelling in his or her business life. Criteria include the
individual’s personal growth, contribution to their company, activities outside their business life, industry involvement,
community activities and leadership qualities.
Mr. Lance Keillor, Logistics Development Manager, Glen Cameron Group.

Australian Freight and Logistics Personality of the Year
Recognises the person or persons who have made the most outstanding contribution to the Australian freight and
logistics industry over a period of time.
Mr. Ingilby Dickson, Vice President & Procurement, BlueScope Steel.
And
Mr. Bill Gibbins, Former Owner and Managing Director of FCL Interstate Transport.

Back to Top

Shell/Optus 'Kids Help Line' Charity Golf Day

The Shell/Optus 'Kids Help Line' Charity Golf Day is being held on Friday, 23 November 2007 at the Long Island Country Club, Frankston Dandenong Road, Frankston.

Gordon Bell, Consultant, will lead the Cornwall Stodart team. We hope to see you there to support this very worthwhile cause. $150 of each team registration will be donated to the Kids Help Line.


Further details and a registration form are available from the VTA website at
http://www.vta.com.au/documents/161007_Optus-Shell%20golf%20day.pdf

 


Back to Top

This web site is intended to provide general information on legal issues and should not be relied upon as a substitute for legal or other professional advice. View our Privacy Policy Copyright © 2002 Cornwall Stodart Lawyers. All rights reserved.