Transport union demands corporate giants cover drivers’ surging fuel costs

Corporate giants using vast webs of subcontracted delivery drivers are being called on to cover the escalating fuel costs that are spooking the Australian economy.

The Transport Workers’ Union will apply to the Fair Work Commission for gig workers, owner-drivers and transport businesses to be able to pass surging fuel bills back to their major corporate clients, which include Asahi Beverages, Coles, McDonald’s, Woolworths, 7-Eleven, Amazon, BHP, David Jones, JB Hi-Fi and The Reject Shop.

“Gig workers, owner-drivers and transport operators are being squeezed by rising fuel prices,” TWU national secretary Michael Kaine said.

“If they can’t pass those on to clients with healthier balance sheets, that increases deadly pressure to delay vital vehicle maintenance, push longer hours and skip breaks.”

The Australian Road Transport Industrial Organisation (ARTIO) has also co-signed the TWU’s application. The union identifies 62 major supermarkets, miners, food, tech and industrial manufacturers, consumer goods retailers, brewers, and tech retailers as the major firms subject to the Fair Work application. NewsWire has contacted these companies for comment.

BlueScope says it is working with transport companies to find a solution.

“BlueScope is sensitive to the challenges of our subcontractors and has been working on commercial arrangements with parties to ensure these dramatic fuel price increases are managed in a sustainable way,” a spokesman said.

Chicken giant Ingham’s delivery network will also be part of the Fair Work hearing.

“Given the live nature of the matter you are referring to, we are not looking to comment publicly at this time,” a spokesman said.

The unions say the drivers and transport companies contracted by these major corporations cannot afford to absorb the increased fuel costs sparked by the war in Iran.

The unions will push for the workplace umpire to mandate “meaningful relief” for drivers, gig workers and transport businesses in the face of heightened diesel and petrol prices.

ARTIO secretary Peter Anderson said drivers at the bottom of the chain copped the brunt of fuel price hikes.

“This application to the Fair Work Commission encourages the whole industry to share the burden of skyrocketing fuel costs, rather than shunting it on to those at the bottom of the chain,” he said.

“It brings together workers, transport companies, gig platforms and transport clients to drive a fair solution for all.”

The unions’ request to the Fair Work Commission is an addition to current cases seeking improved cost recovery rates for workers in transport supply chains.

They are calling for urgent consultation on spiking fuel prices, requesting representatives of all 62 corporations be compelled to attend a commission hearing.

“Recent international events have triggered an urgent need for the TWU and ARTIO to seek assistance from the Commission to address extreme increases to the price of fuel costs that have the very real prospect of halting road transport supply chains with dire consequences for the Australian community,” the Fair Work Commission submission reads.

“The TWU and ARTIO is already aware of several businesses who cannot sustain the increases through their current arrangements. Further market volatility will surely see them lose their livelihoods or cut corners to make ends meet.”

The unions point to a power imbalance between the big corporations and the contract drivers underneath.

“Existing contractual arrangements in road transport supply chains are unlikely to include necessary provisions that respond to this urgent situation or, where they do, there is no certainty about how these obligations are extended to the whole of the supply chain including those ultimately performing the work.

“It is well established that clients at the top of supply chains hold the economic power and without their input and commitment, an appropriate solution will not be reached.”