Transport Industry - Quarried Materials, &c., Carriers Contract Determination

 

INDUSTRIAL RELATIONS COMMISSION OF NEW SOUTH WALES

 

Application by Transport Workers' Union of New South Wales, Industrial Organisation of Employees.

 

(No. IRC 525 of 2010)

 

 

AWARD

 

1.        Delete subclauses (vi), (vii) and (viii) of clause 2, Cartage Rates of the determination, published 14 August 1992 (271 I.G. 78), and insert in lieu thereof the following:

 

(vi)      Where:

 

(a)      a carrier performs a contract of carriage within the area, incidence and duration of this determination; and

 

(b)      the carrier is eligible to claim a rebate pursuant to the Commonwealth Government’s fuel tax credit subsidy (the Scheme) for that contract of carriage; and

 

(c)      the carrier has been requested to apply for the rebate pursuant to the scheme by the principal contractor;

 

the principal contractor may reduce the cartage rates payable in Annexure "A" of this determination up to a maximum reduction of 2.25% of the rate otherwise payable to the carrier for the performance of that contract of carriage.

 

(vii)     Should a carrier become ineligible to claim a rebate pursuant to the scheme or the scheme is abolished then the principal contractor shall not be permitted to reduce the cartage rates pursuant to subclause 2(vi).

 

(viii)    Should the scheme be abolished or altered or modified leave is reserved to the parties to make application in relation to subclauses 2(vi) and (vii).

 

(ix)      The maximum reduction contained in subclause 2 (vi) shall be calculated according to the following formula:

 

(a)      ((fuel per litre, less GST - fuel tax credit per litre) / fuel per litre, less GST) x 100 = (a)

 

(b)      new weighting for fuel x (a) = (b)

 

(c)      reweighting for fuel - (b) = maximum reduction in the subclause 2 (vi)

 

2.        Delete Schedule 1: Quantity/Distance and Hourly Hire Rates, of Annexure "A", Cartage Rates, and insert in lieu thereof the following:

 

SCHEDULE 1

 

QUANTITY/DISTANCE AND HOURLY HIRE RATES

 

Symbol	Item	Rate	Unit
		$
F.F	Flag Fall	3.820	Per Tonne
A		0.225	Per Tonne
B		0.205	Per Tonne
C		0.194	Per Tonne
D		0.173	Per Tonne
E		0.164	Per Tonne
F		0.154	Per Tonne
G		0.146	Per Tonne
H	Large Material	1.150	Per Tonne
I	Large Material 600+ material	1.944	Per Tonne
Hourly Rates - non permitted in external dumping
J	2 Axle Vehicle	52.65	Per Hour
K	3 Axle Vehicle	63.34	Per Hour
L	4  Axle Vehicle	73.46	Per Hour
M	5 Axle Vehicle	94.65	Per Hour
N	6 Axle Vehicle	100.11	Per Hour
Hourly rates for vehicles involved in internal dumping
O	2 Axle Vehicle	69.63	Per Hour
P	3 Axle Vehicle	72.86	Per Hour
Q	4  Axle Vehicle	84.48	Per Hour
R	5 Axle Vehicle	108.88	Per Hour
S	6 Axle Vehicle	113.58	Per Hour

 

3.        Delete Schedule 1: Procedures, Schedule 2: Cost Component Formula, and Schedule 3, Benchmarks, of Annexure "B", Rise and Fall Formula, and insert in lieu thereof the following:

 

SCHEDULE 1

 

PROCEDURES

 

1.        Variations to the rates detailed in Annexure "A" shall be made by the Industrial Relations Commission of New South Wales upon application.

 

2.        Variations shall be established by ascertaining the percentage change in the various cost components contained at Schedule 3, Benchmarks from the time the last variation of the rates was calculated to the specified Review Date:

 

2.1      The Review Date shall be:

 

•          1 July

 

2.2      If for any reason a relevant figure is not available or obtained at the Review Date the latest available figure is to be taken.  Adjustment will be made when figures are next determined for the difference between figure at the Review Date and the figure used as calculated above.

 

2.3      The latest available figures for each component will then be expressed as a percentage increase of the figure last used for that component in the previous rise and fall calculation.

 

2.4      The Percentage Increase/Decrease calculated for each component is then to be applied to the percentage of total cost of that component to drive the new percentage of Total Cost figure.

 

2.5      The sum of the new percentage of Total Cost figures minus 100% shall be the Percentage Increase to apply. All costs are to be the latest available from the source reference as at 1 June.  All rates for symbols F.F. and A through to I are to be expressed to 3 decimal points. When preparing schedules of rates payable per unit quantity for various distances, the rates for flag fall and the distance are to be calculated each using 3 decimal points and the final figure from the addition of the flag fall and the "distance" amount then rounded to two decimal points.  When calculating rates per cubic metre, the final figure per tonne to 3 decimal points from the addition of the flag fall and the distance is to be multiplied by the relevant conversion factor, and the resultant figure then rounded to two decimal points to obtain the rate per cubic metre.

 

2.6      Following each application of the formula, the cost components shall be re-weighted to indicate the new percentage.

 

2.7      If the non-labour cost components, excluding fuel, increase between adjustments to the extent that it causes an increase to the total rate of 3 percent or more, then an interim adjustment to the rates may be applied for and made.

 

3.        The resulting percentage change shall be applied to all rates in Schedule 1 of Annexure "A" hereto.

 

4.        A variation to the rates shall not be retrospective in operation.

 

5.        The variation to the rates shall be effective from the date determined by the Industrial Relations Commission (such date should not be before one month after the Review Date), provided that principal contractors have sufficient time to give appropriate notice to their customers.

 

6.        The parties shall confer with a view to reaching agreement on any application for adjustment to the rates.

 

7.        Cost Recovery for variations in the Price of fuel:

 

(1)      The parties to this determination recognise that, due to the changed nature of the pricing of fuel, including recent significant fluctuations in the price of fuel, it is necessary that variations to rates of remuneration to take into account changes in the price of fuel occur in a timely and efficient manner.

 

(2)      Notwithstanding any other provisions of this determination, the parties to this determination agree that any party to this determination may make an application to the Industrial Relations Commission of New South Wales to vary rates of remuneration to account for changes in the price of fuel on the following basis:

 

(a)      an application to vary rates of remuneration for changes in the price of fuel may be made at any time, provided that the date upon which any rate adjustment is sought to occur is at least one calendar month after the last occasion upon which a rate adjustment became operative;

 

(b)      subject to paragraphs (c) and (d) below, the rates of remuneration shall vary using the existing rise and fall formula for the price of fuel in this determination;

 

(c)      it is not a requirement of any such application that the rate adjustment sought for fuel only be one which is below or above any minimum threshold amount; and

 

(d)      the agreed benchmark for the price of fuel shall be the Australian Institute of Petroleum NSW weekly average for the retail price of diesel for the week ending immediately prior to the date of filing the application, excluding GST.  Should the agreed benchmark become unavailable the parties shall determine an alternative appropriate benchmark.

 

(3)      The parties to this determination shall take all necessary steps to enable an application made pursuant to subclause (2) hereof to be heard and determined at the earliest possible time, including but not limited to, consenting to have the Industrial Relations Commission of New South Wales hear and determine any such application within 48 hours from the initial listing of the application.

 

(4)      The fuel index, reflecting current rates is 120.91 cents.  This is exclusive of GST.

 

SCHEDULE 2

 

COST COMPONENT FORMULA

 

Component	New weighting
Wages inc Maintenance Labour	34.72004
Fuel and Oil	20.55150
Repair Parts	12.45798
Tyres	4.22334
Depreciation	9.50648
Registration	3.21251
Other Fixed Costs	15.32816
TOTAL	100

 

SCHEDULE 3

 

BENCHMARKS

 

Applications for adjustment shall be made by reference to movements in the following benchmarks for each of the following cost components:

 

Component	Benchmark	Confirmed base	Source of figures to be used
Labour	Transport		NSW Industrial Gazette, or if latest rate not gazetted
	Industry -	$664.80	the latest Order of the Industrial Relations
	Quarried		Commission of New South Wales
	Materials
	State Award -
	Grade 2,
	Vehicle Class
	3, Certified
Fuel	Australian	120.91 cents per	http://www.aip.com.au/pricing/retail/diesel/.index.htm
	Institute of	litre
	Petroleum, per	(133 cents per
	litre of Diesel	litre less 1/11th
	NSW State	GST)
	average,
	excluding
	GST
Repair parts	ABS		Australian Bureau of Statistics Consumer Price Index
	Consumer	166.8	Series 6401.0 March Quarter 2010
	Price Index
	(CPI),
	Transportation
	Group, Private
	Motoring
	Motor Vehicle
	repair and
	servicing

 

Tyres	ABS		Australian Bureau of Statistics Consumer Price Index
	Consumer	142.6	Series 6401.0 March Quarter 2010
	Price Index
	(CPI),
	Transportation
	Group, Private
	Motoring
	Motor vehicle
	parts and
	accessories
Depreciation	ABS		Australian Bureau of Statistics Consumer Price Index
	Consumer	97	Series 6401.0 March Quarter 2010
	Price Index
	(CPI),
	Transportation
	Group, Private
	Motoring
	Motor
	vehicles
Registration	Registration	Registration =	Roads and Traffic Authority (Registration) and GIO
	and Green	$1126.00 made	Insurance (Green Slip)
	Slip (no	up of:
	excess cost) of	$55 Rego
	a 3 axle truck,	$886 Road
	without	Usage Charge
	trailer,	(No GST)
	working and	$185 Heavy
	garaged in the	Vehicle
	Sydney	Inspections
	Metropolitan	(including GST)
	Area with a
	tare weight of	Green Slip =
	10 tonne an a	$3958.75
	registered
	GVM of	Total = $5084.75
	greater than
	16 tonnes
Other Fixed	ABS		Australian Bureau of Statistics Consumer Price Index
Costs	Consumer	170.5	Series 6401.0 March Quarter 2010
	Price Index
	(CPI),
	Sydney All
	Groups

 

4.        This variation shall take effect from the first pay period to commence on or after16 August 2010.

 

 

 

I. TABBAA, Commissioner

 

 

 

____________________

 

 

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