Risky Business Episode 16: Industry Insights and COR Have We Got It Upside Down?

Posted by Hubfleet

This episode of Risky Business dives into major developments shaping the transport industry, including licensing reforms, proposed MC2 licensing pathways, and the ongoing push for skill-based driver progression. It explores how recent political shifts may impact minimum standards and structured training. The main focus is Chain of Responsibility (CoR), examining its legal foundation under the HVNL, the safety impacts of commercial pressure, and the urgent need for a cultural shift where accountability aligns with influence, not just job titles.

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Article 1: Catching Up on Risky Business: Episode 16 Industry Insights and COR Have We Got It Upside Down?

Highlights from the Week

My co-host Craig and I recently caught up after being in different parts of the country – I was in Winter Valley, experiencing some “arctic style temperatures”, while Craig was down in Tasmania, or the “Apple Isle” as he calls it. It was a busy time for both of us, attending industry events and getting across the latest developments.

We kicked off the episode by sharing a bit about what we’ve been up to. Craig was in Tasmania for various reasons, including attending a road safety week opening in Launceston and heading to Burnie to get the boat home. He mentioned the weather in Tasmania was nice initially, then got cold. He was grateful for Michelle and TTA for arranging his trip there.

ATA Trucking Australia Conference

One of the main points of discussion was the ATA conference in Adelaide that we both attended. This conference was a significant event for the transport industry. We touched on several key takeaways, including the South Australian Transport Minister, Tom Koutsantonis’, push to reform how overseas drivers are licensed for multi-combination (MC) vehicles in Australia.

Under the new SA rules introduced in February, overseas heavy vehicle experience (except from New Zealand) no longer counts towards getting an MC license. Drivers now need to hold an Australian HR or HC license for at least 12 months or complete a rigorous supervised training program. This reform followed industry advocacy and the tragic death of veteran driver Slim Mugridge, with the goal of ensuring anyone behind the wheel of a multi-combination vehicle is properly trained for Australia’s unique conditions. Minister Koutsantonis hopes other states will follow South Australia’s lead.

ATA Calls For MC Licence Split and Skills Based Progression

Mark Parry, the ATA chair, also spoke at the conference and proposed scrapping the time-based licensing model in favour of skill-based progression. He also flagged a new class of license, MC2, for combinations over 37 meters. While the idea of splitting MC into multiple classes isn’t new (work was previously done to split it into three, but it didn’t make it into the license review), this proposal suggests that anyone who has held the current MC license for six months would automatically get an MC2. We also discussed the importance of driver medicals and fitness to drive, noting that while there’s good work being done, some believe medicals should be a prerequisite for more licenses than just the MC.

Election Outcome – Steady Ship for Transport Reform

The recent election was another hot topic. While some on social media seemed to think the “sky was falling down”, from an industry perspective, the Labour government’s win offers a runway to continue implementing minimum industry standards, particularly through the dedicated transport division within Fair Work. This is a significant positive for our industry, as it means we don’t have to start over on crucial reforms like minimum industry standards and training pathways. The work on structured training pathways, including a proper apprenticeship model, is already underway, actively involving industry.

Chain of Responsibility – Looking further Up the Chain

The main focus of the episode, however, was Chain of Responsibility (COR). We dove deep into how commercial pressures often disguised as standard business practices are driving systemic safety risks in transport. While operators are heavily scrutinised for their COR obligations, we noted that prosecutions rarely go further up the chain. The legal foundation of COR under the Heavy Vehicle National Law (HVNL) places a duty on all COR partners to ensure safety, and it’s unlawful to ask, direct, or contract a party to breach safety obligations. This applies to parties with influence like consignors, consignees, packers, loaders, operators, and Fleet managers.

The Master Code

We discussed how the Master Code, an approved industry code under the HVNL, provides practical guidance for meeting these obligations. It emphasises responsibility determined by the capacity to influence risk, not just job title. We unpacked COR responsibilities across several key areas:

  • Fatigue Risk: All parties must manage fatigue risks. Schedulers must avoid creating plans that encourage breaches, and consignors/consignees should ensure freight is available to reduce waiting time. Customers imposing strict delivery windows need to assess the impact on drivers’ compliance.
  • Mass and Dimension: Freight must be packed, loaded, and restrained to ensure legal limits are not breached. Loaders, packers, and consignors must provide accurate weight information and avoid overloading. Customers insisting on fully loaded trailers may inadvertently cause overloads.
  • Speed Management: Practices should not result in unsafe speed behaviors. Realistic drive times must be allowed, and contracts cannot have incentives or penalties for early/late deliveries.
  • Vehicle Standards and Maintenance: Operators need documented maintenance schedules. This is a shared responsibility. Customers’ delivery deadlines should not prevent required maintenance.

Integrated Risk Management

We stressed the need for a cultural shift towards integrated risk management, with transparency, mutual respect, and accountability. Upstream parties must stop outsourcing risk and own their part of the safety chain. We discussed the power of the primary contractor and how commercial conditions that prevent safe operation indicate a failure of COR.

Digital Document Management

Tools like Hubfleet play a crucial role in demonstrating compliance by managing documented services, pre-start inspections, and fault reporting. Our EWDs provide visibility of driver hours and fatigue trends, helping operators meet their obligations. However, technology alone can’t fix the unsafe commercial expectations coming from further up the chain. We need a greater enforcement focus on these commercial influences.

Responsibility Aligned to Influence

Overall, COR is more than just compliance; it’s about responsibility aligned to influence. The industry needs to keep pushing for safe contracting frameworks and a culture where real accountability starts from the top down.

Take the Guesswork Out of Chain of Responsibility

Hubfleet helps transport operators clearly demonstrate compliance with Chain of Responsibility (CoR) obligations. From fatigue and maintenance records to mass, training, and driver fitness, Hubfleet gives you the tools to show your CoR partners that risks are being identified, managed, and monitored. With real-time visibility and automated record-keeping, you can strengthen your safety culture, reduce liability, and build trust across the supply chain.

 Sign up for a free trial today and put confidence behind your compliance.

FAQs

Chain of Responsibility (COR) is a legal framework under the Heavy Vehicle National Law (HVNL) that aims to ensure safety in the heavy vehicle transport industry. It extends the responsibility for road safety breaches beyond just the driver and operator to all parties in the supply chain who have the capacity to influence risk. This means that consignors, consignees, packers, loaders, schedulers, and operators all share responsibility for ensuring compliance with safety laws.

Responsibility under COR is determined by a party’s capacity to influence risk, not solely by their job title. Even if someone doesn’t have a formal management role, if their actions or inactions can impact the safety of a heavy vehicle operation (e.g., scheduling unrealistic delivery times, insisting on overloaded trailers), they can be held accountable. The Master Code, an approved industry code under the HVNL, provides guidance on how this capacity to influence risk translates into specific responsibilities.

COR responsibilities cover several critical areas to ensure road safety. These include:

  • Fatigue Risk: Managing driver fatigue through realistic scheduling, ensuring freight is available for loading/unloading to minimise delays, and considering the impact of strict delivery windows on drivers’ rest times.
  • Mass and Dimension: Ensuring freight is packed, loaded, and restrained correctly to comply with legal weight and dimension limits, providing accurate weight information, and avoiding practices that lead to overloading or uneven distribution.
  • Speed Management: Ensuring practices do not encourage unsafe speed, allowing for realistic drive times that account for delays and conditions, and avoiding contracts with incentives for early delivery or penalties for late delivery.
  • Vehicle Standards and Maintenance: Implementing documented maintenance schedules, ensuring defect reporting and rectification processes are followed, and ensuring operational schedules do not prevent necessary vehicle maintenance.

The Master Code is an approved industry code under the HVNL that provides practical, plain-language guidance on how parties in the supply chain can meet their COR obligations. It serves as a guide for businesses to develop their own policies and procedures that align with the HVNL. The Master Code reinforces the principle that responsibility is based on the capacity to influence risk.

Unrealistic schedules and deadlines can create pressure throughout the supply chain and lead to COR breaches. For example, strict delivery windows that don’t account for realistic drive times, potential delays, or necessary rest breaks can contribute to driver fatigue. Similarly, tight turnaround contracts or operational schedules that don’t allow for required vehicle maintenance can compromise vehicle standards and safety. Parties imposing such demands have a responsibility under COR to assess and mitigate these risks.

Breaches related to mass and dimension can occur when freight is not packed, loaded, or restrained correctly, leading to illegal mass or dimension limits being exceeded. Specific examples include loaders, packers, and consignors failing to provide accurate weight information or overloading trailers. Customers who insist on fully loaded trailers without considering weight limits can also inadvertently cause overloads, which is a COR concern.

Ensuring that heavy vehicle drivers are properly trained for Australia’s unique conditions is crucial for safety. Recent reforms in South Australia, for example, have changed the requirements for overseas drivers seeking multi-combination (MC) licenses, no longer counting most overseas heavy vehicle experience. Instead, drivers must demonstrate competency through holding an Australian HR or HC license for a minimum period or completing a rigorous supervised training program. This focus on skill-based progression aims to improve road safety by ensuring all MC drivers are adequately qualified.

Current discussions and proposals for improving heavy vehicle licensing include scrapping the time-based tenure model in favour of a skill-based progression system, which is widely supported by the industry. Additionally, there has been a proposal for a new class of license, MC2, for operating heavier or more complex multi-combination vehicles beyond a certain length (e.g., over 37 meters). These proposals aim to better reflect the skills and knowledge required for operating different types of heavy vehicles and improve overall road safety.

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