Transport Industry - Excavated Materials, Contract Determination

 

INDUSTRIAL RELATIONS COMMISSION OF NEW SOUTH WALES

 

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

 

(Case No. 174729 of 2022)

 

 

VARIATION

 

1.        At the end of the Arrangement of the award published 24 October 1997 (I301 I. G. 1082) insert the following new Part D.

 

PART D

 

Temporary Fuel Levy

 

2.        Delete Part B, Rates of Remuneration, and Part C, Rise and Fall Formula, and insert in lieu thereof the following:

 

PART B

 

Rates of Remuneration

 

Item	2 Axles ($)	3 Axles ($)	4 Axles ($)	5 Axles ($)	6 Axles ($)	6 Axles (48t) ($)	7 Axles ($)	PBS T&D ($)
1.  Loading Rate	19.816	30.856	37.476	44.589	48.017	51.432	52.171	55.586
1A. Extra Capacity	3.415	3.415	3.415	3.415	3.415	x	3.415	x
(per cubic metre)
2.  Kilometre Rate	4.983	7.763	9.427	11.218	12.077	12.937	13.125	13.984
(0-8 Km)
2A. Extra Capacity	0.860	0.860	0.860	0.860	0.860	x	0.860	x
(per cubic metre)
3.  Kilometre Rate	4.611	7.182	8.725	10.379	11.180	11.976	12.148	12.943
(over 8 - 25 km)
3A. Extra Capacity	0.796	0.796	0.796	0.796	0.796	x	0.796	x
(per cubic metre)
4.  Kilometre Rate	3.627	3.627	3.627	3.627	3.627	4.366	3.627	4.366
(over 25 km)
4A. Extra Capacity	0.739	0.739	0.739	0.739	0.739	x	0.739	x
(per cubic metre)
6.  Hourly Rate	64.971	101.168	122.916	146.135	157.380	168.619	179.076	190.314
6A. Extra Capacity	11.239	11.239	11.239	11.239	11.239	x	11.239	x
(per cubic metre)

 

PART C

 

Rise and Fall Formula

 

1.        The rates prescribed in Part B may be adjusted each year upon application to the Industrial Relations Commission of New South Wales.

 

2.        Application for adjustment shall be made by reference to the weighted movement in the following benchmarks for each cost component, calculated as at the end of the full quarter immediately preceding the variation, with each adjustment application based upon the rates and amounts in the immediately preceding variation.

 

Component Current	Benchmark	Current Index $	Weighting
Wages	Road Transport and Distribution Award 2010, Grade Three Transport Worker	849.10	35.20
Capital	ABS Consumer Price Index (CPI), Motor Vehicles, Australia	102.6	19.11
Insurances	ABS CPI, Insurance, Australia	139.3	5.99
Registration	ABS CPI, Transportation Group, Other Services in respect of motor vehicles	133.8	3.36
Repairs & Maintenance	ABS CPI, Transportation Group, Maintenance and Repair of Motor and Repair of motor vehicles	120.5	18.02
Tyres	ABS CPI, Transportation Group, Spare Parts and Accessories for motor vehicles	114.8	4.67
Fuel AIP NSW State	Average for the Retail Price of diesel (excluding GST), calculated by determining the average of the weekly figures	120.97	10.25
	between the end of the quarter relating to the last variation and the end of the quarter prior to any new variation.
Administration	ABS CPI, All Groups, Sydney	120.2	3.40
Total			100

 

3.        If the cost components, excepting fuel, change such that it causes an increase in the total remuneration of 2 percent or more from the date of the last variation, an interim adjustment may be made. 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 become operative is at least one calendar month after the last occasion upon which a fuel rate adjustment became operative.

 

4.        Each cost component will be re-weighed after each adjustment.

 

5.        Parties to this Determination will confer with a view to reaching agreement on any application for adjustment on any application for adjustment. In the absence of agreement the rates and amounts shall be determined by the IRC.

 

6.        Notwithstanding anything contained in this Part, a variation shall not be retrospective in operation but shall operate from a date not earlier than the date upon which it is made.

 

3.        Insert after Part C the following Part D:

 

PART D

 

Temporary Fuel Levy

 

1.        Application

 

1.1      This Part applies to all Contracts of Carriage performed on or after 1 August 2022.

 

2.        Background

 

2.1      This Part was introduced by the IRC in Matter No. 2022/174729 as a temporary measure to respond to significant fluctuations in the price of fuel and the temporary inability for Contract Carriers to claim fuel tax credits.

3.        The Surcharge

 

3.1      In addition to all other amounts set out in this Determination, a Principal Contractor must pay a Contract Carrier an additional amount (the Temporary Fuel Levy).

 

3.2      The Temporary Fuel Levy shall be paid as a percentage of the total amounts payable to the Contract Carrier under this Determination.

 

3.3      For Contracts of Carriage performed on or after 1 August 2022, the Temporary Fuel Levy shall be 6.5%.

 

4.        Review

 

4.1      The Temporary Fuel Levy shall be reviewed on a monthly basis, subject to an application being made to the IRC.

 

4.2      The Temporary Fuel Levy shall be calculated by applying the following formula:

 

((x-y) / y) * z

 

where:

 

x = the mean of all weekly retail diesel prices (NSW State Average) published by the Australian Institute of Petroleum for weeks ending in the prior calendar month, in cents, exclusive of GST;

 

y = 120.97 (being the current index price of fuel as set out in part C of the Determination); and

 

z = 0.1025, being the weighting applied to the fuel component as set out in part C of the Determination); and

 

4.3      The Temporary Fuel Levy shall be rounded to one decimal place.

 

4.4      Parties seeking a variation to the Temporary Fuel Levy shall make an application to the IRC by the second Monday of the relevant calendar month.

 

4.5      The revised Temporary Fuel Levy will apply from the first day of the following calendar month.

 

4.6      As the Temporary Fuel Levy responds to fluctuations in fuel prices, it may increase or decrease from time to time.

 

5.        Other Provisions

 

5.1      The Temporary Fuel Levy may be offset by any payments made to a Contract Carrier in excess of the amounts prescribed elsewhere in this Determination.

 

5.2      Leave is reserved for any party to apply to vary the operation of this Part in circumstances where the Principal Contractor:

 

(a)       provides the Contract Carrier with fuel, either for free or at a cost below the prevailing market rate;

 

(b)       directly reimburses the Contract Carrier for some or all of their fuel costs; or

 

(c)       otherwise compensates the Contract Carrier for their fuel costs.

 

4.        This variation takes effect from the first full pay period commencing on or after 1 August 2022.

 

 

 

D. O'SULLIVAN Commissioner

 

 

____________________

 

 

Printed by the authority of the Industrial Registrar.