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In brief
- Fuel prices have risen sharply amid the war in the Middle East.
- The government says the amendment will ensure costs are fairly shared across the supply chain.
The federal government is set to amend the Fair Work Act to shield truck drivers from sudden fuel price hikes, a situation exacerbated by the ongoing conflict in the Middle East.
This legislative change will enable truck drivers and related road support businesses to swiftly file an emergency application for a contract chain order, significantly cutting down the current waiting period of at least six months.
Within the framework of the Fair Work Act, a contract chain order empowers the Fair Work Commission to mandate that retailers, mining companies, manufacturers, and other transport clients ensure fair wages and working conditions for contractors, including truck drivers.
The amendment would help truckies and transport operators to share the burden of fuel prices with the supply chain and not have to unfairly bear the brunt, Employment and Workplace Relations Minister Amanda Rishworth said.
“Truckies and transport operators need to be protected from fuel price rises and it’s important that costs are shared fairly through the supply chain,” she said.
“We are making sure the independent Fair Work Commission can act quickly to deal with these issues.”
Infrastructure and Transport Minister Catherine King said the measures would help keep essential goods transported around the country.
“Fuel price spikes are affecting everyone, but no-one is feeling it more acutely than those whose livelihoods are behind the wheel,” she said.
Iran’s decision to close the Strait of Hormuz — a key global trade route — in response to American and Israeli strikes has sent global oil prices skyrocketing.
On Monday, Energy Minister Chris Bowen confirmed that over 109 service stations in Victoria had run out of at least one grade of petrol.
He said 47 outlets in Queensland had no diesel and 32 were without regular unleaded, while 37 stations in NSW had run out of petrol.
Opposition energy spokesperson Dan Tehan said the shortage would worsen by April as the war dragged on, telling Sky News that Bowen had mismanaged the issue.
Bowen said over the weekend he was aware of six oil shipments that had been cancelled, primarily from Asian companies, conceding there could be “bumps in supply” due to the conflict, but saying there isn’t a threat of a nationwide fuel shortage.
On Monday, Prime Minister Anthony Albanese signed a joint statement with Singaporean counterpart Lawrence Wong to affirm the two countries’ commitment to energy security.
“Even if we were to wake up tomorrow to the welcome news that this conflict was over, there would still be a long economic tail to reckon with,” Albanese said at a mineral industry dinner on Monday.
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