Employers, unions clash in addressing fuel crisis
Employers in Australia have expressed opposition over a union proposal that will introduce new contractual arrangements relating fuel costs amid the ongoing crisis in the Middle East.
The proposal, filed by the Transport Workers Union and an association of employers in the road transport industry, seeks to require road transport businesses and their associated supply chain to implement new contractual arrangements related to fuel costs.
It also aims to mandate weekly reviews of the freight rates they pay to account for rising fuel costs.
The plan is pushed amid the fuel crisis resulting from the conflict in the Middle East, which has disrupted global oil shipments and raised prices across the world.
Innes Willox, Chief Executive of the national employer association, Australian Industry Group, acknowledged the intentions of the union proposal but warned that it would add another layer of administrative burden and red tape.
"While the union's claim may be well intended, it is a deeply misguided, confusingly complex, and frankly unworkable proposal that risks visiting a raft of unintended but sadly entirely foreseeable adverse consequences on the economy, a myriad of businesses already struggling with growing economic challenges and disruptions and, ultimately, on the very road transport businesses and road transport contractors the union want to assist," Willox said in a statement.
"It fails to appreciate that there simply won't be any way for many of the customers of road transport businesses to accurately assess the fuel costs of transport companies they contract with, let alone have the resources to do this on a weekly basis."
According to Willox, there are complex considerations that go into determining the freight rates that road transport businesses charge.
"There is broad concern in industry that the union application will interfere with arrangements already implemented in industry, such as agreed fuel levies or temporary uplifts in rates that are working well," he added.
"It would be a mistake for the Government to endorse an ill-considered application that will at best distract industry from dealing with a crisis and at worst, create a new nightmare for industry to navigate."
Pressure from unions amid crisis
Employers in Australia have been feeling the pressure in different areas resulting from the fuel crisis, with some reporting increased absenteeism in workplaces.
In New South Wales, the United Services Union filed for a new award with the Industrial Relations Commission (IRC) to introduce flexible work arrangements and a 50% rise in fuel subsidies to ease the challenges for employees.
"We want staff who can work from home to be allowed to keep petrol and diesel in the bowsers for other council workers like tradies, truck drivers, and groundskeepers who need it," said Daniel Papps, USU head of legal, in a statement.
"We've also suggested a four-day week arrangement be considered for staff who can't work from home, so that might mean they work an extra few hours each day, but save themselves one daily commute."
Flexible work arrangements are already in place in some private sector employers amid the fuel crisis, according to the Australian Chamber of Commerce and Industry.
It follows the recommendation from the International Energy Agency, which suggested that working from home is one of the immediate actions that busineses can take to cushion the economic impact of oil market disruptions.
