Prime Mover Magazine

Safe rates are not the answer says AIG

The Australian Industry Group has stated safe roads are essential but says safe rates are not the answer. In a submission to the National Transport Commission in relation to the ‘Safe Rates’ paper, the AIG dismissed the subject of safe rates as an imposition on Australian business.

“AI Group strongly believes that the narrow focus on how and how much drivers are paid is not an effective way to address road safety,” said AIG CEO Heather Ridout. “The ‘safe rates’ concept centres around the proposition that paying drivers differently and at higher rates of pay will lead to higher levels of safety.

“AIG has submitted a comprehensive response to the directions paper which argues that improving safety on the road transport industry requires a whole of government approach rather than a narrow focus on the method and quantum of remuneration for employee drivers and owner drivers.”

The AIG submission suggests any safe rates policy would have implications for the powers of the national workplace relations tribunal, Fair Work Australia and the regulation of independent contractors in Australia. It also states none of the models suggested in the directions paper from the NTC are workable or desirable.

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