Owner-drivers across Australia are feeling the squeeze as fuel prices jump in the wake of conflict in the Middle East, with many locked into contracts that haven’t kept up. The Fair Work Commission is now stepping in under new federal road transport laws, targeting companies at the top of freight supply chains rather than just the small operators who actually own and run the trucks.
Under draft orders released this week, primary contractors in sectors such as retail, warehousing, agriculture, construction, manufacturing and mining would need to take reasonable steps to offset sharp rises in diesel costs and review their payment rates every two weeks. The rules flow from the Albanese government’s updated regulation of road transport supply chains and are designed to give thousands of owner-drivers some protection when global events suddenly push up fuel costs.
At the same time, the national union body plans to lift its current minimum wage claim above 5%, arguing that ongoing instability in the region is keeping cost-of-living pressures high. If both the fuel support orders and a higher wage rise go ahead, it looks like transport costs could increase for major businesses, which may eventually pass some of those costs through to consumers even as the changes seem to be aimed at creating a more stable and sustainable income floor for drivers.
