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Horatio Leafblower
30th Mar 2016, 06:46
Another piece of crap legislation from "Australia's most productive Parliament" about to destroy more families and jobs.

How is this relevant to Aviation?

We suffer under the same level of idiotic, mindless regulation - and as long as it suits the big end of town, near enough is good enough. :ugh:

Robert Gottliebsen in the Australian (http://www.theaustralian.com.au/business/opinion/robert-gottliebsen/truckies-on-the-road-to-ruin/news-story/62d655ea315452920767b33fb4b04709)

Truckies on the road to ruin

The Australian
March 29, 2016 12:00AM

About 35,000 people, mostly men, drive their own long-haul trucks. They have borrowed about $15 billion from Australian banks and other financiers to fund their vehicles. Most of the loans are also secured on the family home.

A government body — the Road Safety Remuneration Tribunal — has made decisions that are set not only to destroy the livelihood of most of them but force them to sell the family home.

Tens of thousands of farmers around Australia rely on these efficient and safe road operators to get their produce to market and supply them with farming needs. These farmers are going to be forced to pay two and four times the present rate for transport as a result of arbitrary decisions by the same government body. It will wreck many farmers.

Overall, Australian transport costs are set to rise by between 30 per cent and 40 per cent, which will boost inflation and make the Reserve Bank look differently at interest rate adjustments. Banks don’t know it yet, but they are headed for big losses because their bad standing in the community will not allow them to sell so many houses and throw truckies on to the streets.

The big winners are the large transport companies and the Transport Workers Union. A grateful TWU will pay a proportion of its windfall gains to the ALP, which will gain funding capacity not matched by any other political party. The whole exercise is being timed for a period when parliament is in chaos, so legislative remedies look impossible.

Let me explain how this has happened. The long-haul road transport industry has three major components. First, there are the large companies such as Toll. Much of their fleet is operated by employees who are TWU members. The link between the TWU and Toll is particularly close.

Second, there are the owner drivers. They contract for majors such as Toll but they also work on their own and for a multitude of smaller transport companies that consolidate them. This mixture has given Australia one of the most efficient and safe road *transport networks in the world and has helped make our agriculture industry world leaders.

But the third part of the industry, the TWU, has long been unhappy because too many owner drivers are not union members.

The Gillard government listened closely to the TWU. At the same time, there were concerns some owner drivers were taking drugs and driving their vehicles for long periods without a break. And so the Gillard government set up the Road Transport Remuneration Tribunal. Bill Shorten played a role in some of the appointees to the tribunal, which is now headed by a former ACTU official. Most of the other commissioners are linked to Fair Work Australia. It was a tribunal stacked with people who have backgrounds in social awareness.

The tribunal decided the best way to stop owner drivers from driving too long and taking drugs was to make them charge more for their services. But no such charging instructions were given companies using TWU employees, so they can undercut owner drivers.

Grace Collier in The Weekend Australian (March 19-20) blew the whistle on what was happening in her commentary “TWU can bring nation to its knees with ‘safe’ truckies rates”. She explained how “farmer Keith” now pays $175 for an owner driver to pick up a few head of cattle. After April 4, that owner driver is forced to charge $784 — and if he doesn’t charge $784, he can be prosecuted by the Fair Work Ombudsman and be fined up to $54,000.

But if the farmer uses a company with employed drivers, then that operator has no such restrictions and can charge $175. And this bizarre outcome applies across the whole gambit of long-haul transport in Australia. That means Toll and its TWU drivers can pick up as much business as they want.

My guess is large transport operators will use their entitlement to undercut small groups until they are driven out of business. Then prices will be increased to the levels allowed by the tribunal. Unless agriculture prices are booming farmers will not be able economically to transport their product to market once the full rates are charged.

This elimination of owner drivers will be fairly quick — and as they are forced to sell their trucks the prices of vehicles will slump, so they will be bankrupted.

The actual capital of many owner driver businesses is domestic homes, so they will be sold to cover the debt to the banks because of the fall in value of trucks. As the large operators begin to control the business owner drivers will be sent to the wall along with the small transport companies that co-ordinate them. Many of those are in South Australia.

One of the smartest politicians in the House is South Australia’s Nick Xenophon, who voted to set up the tribunal. In fairness, there was no way he could have known what the TWU and ALP were up to. Therefore, unfairly, Xenophon is going to be made aware of what he has done to his state and to the lives of 35,000 people.

Via Victoria’s RACV, Australia has been a world leader in transport technology. Cheaply, an instrument can be put into all trucks to monitor driving patterns. If that is linked to insurance, then any problem that emerges will quickly be resolved.

I believe the tribunal must be abolished, but that’s not easy given a chaotic parliament. Meanwhile, the 35,000 truckies love their trucks and their families. That is why local communities and mental health support services are bracing themselves for what might happen as these proud men are robbed of their beloved trucks and their homes.

Acrosport II
30th Mar 2016, 07:00
All I get is a page asking me to pay a subscription to a newspaper.


You have another free source for the article?

kaz3g
30th Mar 2016, 07:33
So tell us what the crap legislation is called so we can have a look if not otherwise engaged.

Kaz

LeadSled
30th Mar 2016, 07:52
Folks,
It's just a Labor gift to the TWU, why are you surprised. Look at the history.
The current Government has not been able to get changes through the Senate.
A bit like the masses of aviation "safety" that is nothing to do with air safety.
Tootle pip!!

kaz3g
30th Mar 2016, 08:54
This is a Commonwealth initiative and, last time I looked, we had a Liberal Coalition in charge.

It was the Coalition that sounded the death knell for GA access to airports by giving them away. It's for the Coalition to sort this mess and, hopefully, do better than it did on airports.

Incidentally (note for Dick Smith) our well respected Federal Member for Murray is not standing again. Sharman Stone's seat is up for grabs and both Libs and Nationals are standing candidates.

Good opportunity for an independent with guts and good policies.

Kaz

Meant to say...Robert Gottliebsen would give a balanced account, wouldn't he?

Ovation
30th Mar 2016, 09:33
You've stepped on your pecker this time methinks..... You've got the second part right about destroying more families and jobs, but you need to sheet the blame home to the Rudd/Gillard/Rudd government.

Another piece of crap legislation from "Australia's most productive Parliament" about to destroy more families and jobs.

We suffer under the same level of idiotic, mindless regulation

and,

This is a Commonwealth initiative and, last time I looked, we had a Liberal Coalition in charge.

The ALP Government - the worst in living memory, and famous for squandering the surplus they inherited. This legislation was a gift from Gillard to (one of) her Union Masters (TWU).

It would be history if not for the unrepresentative crossbench Senators. The Rudd/Gillard/Rudd left behind this legislation and other booby traps - gifts that keep on giving long after they've been tossed out of office. They claim to represent the working class but only show contempt for them.

pilotchute
30th Mar 2016, 23:19
Your explanation about farmer Keith and his cattle is full of you know what. The new rates covers supermarket deliveries and long distance transport. Long distance being 500km or more for one job. If farmer Keith can pay an owner driver $175 to take his cattle 500km he has found a pretty gullible truckie.

Horatio Leafblower
31st Mar 2016, 01:55
Ovation

It would be history if not for the unrepresentative crossbench Senators.

...but the 10 Greens Senators have nothing to do with that?

cbradio
31st Mar 2016, 05:45
Article was looking good til the bit "Grace Collier in ...."

I'm sure that's a factual unbiased precis of the situation ....

BEACH KING
31st Mar 2016, 06:35
Your explanation about farmer Keith and his cattle is full of you know what. The new rates covers supermarket deliveries and long distance transport. Long distance being 500km or more for one job. If farmer Keith can pay an owner driver $175 to take his cattle 500km he has found a pretty gullible truckie.

Pilotchute, I must be a verrrry pretty gullible truckie.
I am an owner operator.
I have not long returned from taking 204 head of cattle for "farmer Keith" to the Roma cattle sale,...a distance of 633Km.
I have just emailed "farmer Keith" an account for $9495.00 including GST. That equates to $46.54 per head (incl gst) for the 633km trip.
I am lucky to get that rate . There are many of my competitors who would have done the job for $6900.

Where am I going wrong? I have nil debt and even manage to keep flying my Bonanza.
Am I gullible or..do you have NFI, or are you full of "you know what"?
This legislation is total armageddon for regional and rural small business, especially Primary Production which accounts for most of the income of this Country.

pilotchute
31st Mar 2016, 09:00
Beach king.

Im a little unsure of the point your trying to make. I take a single trailer from Melbourne to Sydney and back for $3000. Thats 1700km for $3k. If i could one 633km trip for 9k i would be laughing all the way to the bank.

BEACH KING
31st Mar 2016, 09:33
My point is that around $45/head for this trip is where the market equilibrium is at right now. Farmer Keith is prepared to pay that, and I am making pretty good coin. Your post intimated that anyone charging $45 was doing the job for nothing.
If this legislation gets up, I have to charge $200/head by law, and the big companies like Martins, RTA, Frasers, Swifts etc can legally charge only $45/head. Who do you think Farmer Keith is going to get to cart his cows?
Do you own the truck? or are you employed to drive it? There is a big difference...especially if this proposed legislation is enacted.

kaz3g
31st Mar 2016, 09:34
Might be different costs running a road train on unmade roads compared to a single on the bitumen?

Kaz

BEACH KING
31st Mar 2016, 09:36
You are very correct Kaz

Snakecharma
31st Mar 2016, 21:19
Sorry, but I thought beach King indicated that if the legislation goes ahead he is legally required to charge $200 a head to transport the beasts. (Wish we had that legislation in aviation, the airline industry wouldn't be quite so stuffed). The large companies are not shackled by that legislation and can charge $45 a head.

I would think it is pretty obvious that beach King will be standing there all dressed with nowhere to go as farmer Keith loads his cattle onto the carrier charging him $45 a head.

Bit like tiger and Jetstar vs Qantas and virgin really. When push comes to shove they will go for the lowest fare regardless.

BEACH KING
31st Mar 2016, 21:47
Let me put it another way. Why are you saying safe rates will "decimate" you beach king?
"Safe rates"? you must be kidding.
How is a compulsory legislated set rate increase for one section of the industry going to increase safety? Would that have prevented the Cootes tanker inferno?
The knob jockeys who take drugs, tamper with speed limiters, and do not not adhere to fatigue management strategies will continue to do so irrespective of trucking rates. Those goings-on occur with large outfits as well.

Will the legislation decimate owner drivers in Aus? Every chance it will. Moreover the flow-on effect will hit small business and populations in rural communities where owner drivers usually operate. The owner driver will have to sell the equipment (as no-one can now afford to use him) and move with his family to a large population centre to work for a large transport outfit after joining the TWU. The local tyre, parts, fuel, mechanical outfits will suffer.. and the loss of some kids from the school results in 1 less teacher etc.
If the legislation applied across the board to all sectors of the transport industry, there would be no problem.
However, allowing the corporate sector of an industry to freely compete in a market whilst preventing another sector from doing so in a democratic society is Orwellian.

The legislation has FA to do with safety. The intent is to further "decimate" small business whilst bolstering TWU membership and handing large sales increases to big campaign donating corporate mates.

pilotchute
31st Mar 2016, 22:14
Sorry i missed a reply. My phone isnt the best thing to pprune with. I will re read the latest responses

Ovation
1st Apr 2016, 06:01
I've worked on the support side of the freight industry since 1982, and my business is a supplier to all major express freight and warehouse operators.

BEACH KING's comments are absolutely correct and I could not have expressed it better. The legislation has nothing to do with safety and everything to do with infiltrating the TWU into areas they are plainly not wanted.

The Australian reports today that the Rudd/Gillard/Rudd legislation will cost the economy $2.3B, according to the study undertaken by PWC.

pilotchute
1st Apr 2016, 23:52
Beach King,

I think $45 a head if your happy with it and pays your bills that's fine. I wish I could get 9k for a 633km trip.

Now the new minimum rates for cattle transport cover "interstate" and "return" journeys of more than 500km. I don't think either applied to you in this instance.

Lastly, how did you figure out that the new minimum rates would force you to charge $200 a head? I went on the safe rates website, used the payment calculate and didn't get a number even close to that. I said you had a 3 axle prime mover towing your own set of triples.

Ex FSO GRIFFO
2nd Apr 2016, 03:13
Some 'Sanity' prevailing...??

SY Radio 2GB news just announced that this Legislation has now been put 'on hold'......

We will see, I guess....

Cheers:D

Horatio Leafblower
2nd Apr 2016, 03:18
The legislation has nothing to do with safety and everything to do with infiltrating the TWU into areas they are plainly not wanted.

Gee that sounds familiar.

"Safety" legislation nothing to do with "Safety"!

...where have I heard that before?

Eddie Dean
2nd Apr 2016, 06:37
Horatio
talking to a bloke here in central west who runs a fleet of trucks, they are fighting it as hard as they can, Lambie, Nick and a couple of others are on board.

Jetjr
4th Apr 2016, 07:11
Its on hold, Few Lib senators strongly against it
Trucking industry divided after controversial RSRO changes stopped at the last minute - ABC Rural (Australian Broadcasting Corporation) (http://mobile.abc.net.au/news/2016-04-04/trucking-industry-divided-rsro-changes-stopped/7297500)

Barry O'Sullivan is getting tough with CASA too.

pilotchute
6th Apr 2016, 01:47
Beach king.

Still curious as to how you got $200 a head as a min rate.

pilotchute
8th Apr 2016, 12:05
So my mate left for Brissy today and all the Coles and Woolies subbies still went out.

Disaster!!!