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Prime Mover Magazine


Vehicle relocators to be covered by Award

The Fair Work Commission has extended the coverage of the Road Transport and Distribution Award 2010 (Transport & Distribution Award) to include employers in the vehicle relocation industry, according to the National Road Transport Association (NatRoad).

The Commission has issued a draft determination and provided interested parties two weeks to comment on the draft determination.

“As a result of the Decision, the definition of road transport and distribution industry in Transport & Distribution Award will be changed to include ‘the distribution and/or relocation by road of new or used vehicles as described in the classifications within this award where the vehicle itself is required to be driven from one location to another for the purposes of delivery and/or relocation of the vehicle’,” NatRoad said in a statement.

“NatRoad provided written submissions to the Fair Work Commission, amongst other things arguing for any wage rises to be transitioned. The transitional provisions to be incorporated into the Award should enable a gradual increase in the monetary entitlements over two years (33 per cent per year) beginning from the first full pay period on or after 1 July 2018 and ending at the first full pay period on or after 1 July 2020, when Award rates apply in full.

“The rates should initially be set at the National Minimum Wage plus one-third of the difference between the National Minimum Wage and the applicable award rate. From 1 July 2019, this should increase to the National Minimum Wage plus two-thirds of that difference. The full rates should then apply from 1 July 2020.

“A further positive outcome from the transition process is that any Award increases may be absorbed into existing ‘over-award’ payments. This means that you do not have to maintain the pre-existing ‘over-award’ margin when moving to the Award: but you cannot pay less than the Award wage rate.”

NatRoad said it will advise its members when the determination is finalised.

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