Episode 21: Contracts, Compliance & Culture – Fixing Transport from the Ground Up.

Posted by Hubfleet

As many of you know, my passion lies in supporting the heavy vehicle transport industry and that’s exactly what we aim to do with our Risky Business podcast, proudly sponsored by Hubfleet. In this latest episode, I was joined by my co-host Craig Forsyth, and we were fortunate to welcome Warren Clark, CEO of NATROAD, and Chris Roe, a seasoned owner-driver with 5 decades on the road. Their perspectives, one from the policy front line, the other from the driver’s seat, offered a compelling and honest look at what’s broken in transport, and how we can start to fix it.

We began with a sobering reality: in the 12 months to March 2025, 157 lives were lost in crashes involving heavy vehicles, contributing to a total of 1,329 road deaths across all vehicle types. With a fatality rate of 9.5 per 100,000 workers, transport remains the second most dangerous industry in Australia—just behind agriculture. These aren’t just figures, they’re a wake-up call. They’re a reminder of the daily risk our industry carries and the urgency with which we need reform.

You can listen to the full episode here:

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For those who don’t have time to listen to the full episode, here’s an overview below of what we covered:

Minimum Standards

A core theme of our discussion was the complete lack of minimum standards for the transport industry in Australia, especially when compared to other countries with similar transport industries. This absence, as we explored, contributes to a “race to the bottom,” where work is awarded to the cheapest bidder, often without regard for safe, compliant operations. This can lead to operators cutting corners, resulting in delayed maintenance, sham contracting, and underpaid workers pushed to their breaking point – consequences that play out on our roads every day.

Minimum Standards Orders (MSOs) and Contract Chain Orders (CCOs)

The good news is that solutions are emerging through the “Closing the Loopholes Bill,” which has introduced the Fair Work Road Transport Advisory Group (RTAG). RTAG is a body that has the ability to set Minimum Standards Orders (MSOs) and Contract Chain Orders (CCOs). We explained that a contract, in Australian law, can even be a verbal agreement or a handshake deal, or simply accepting a load. MSOs are designed to set enforceable minimum standards for contractual arrangements, particularly for owner-drivers and small businesses, improving fairness and safety. CCOs are crucial as they ensure that all parties in the contractual chain, from large retailers to logistics providers, comply with these standards, holding everyone accountable.

This is where technology becomes a critical partner. Platforms like Hubfleet are designed to help operators navigate these new regulations seamlessly. Our system helps you meet the demands of MSOs and CCOs by providing a digital, verifiable record of compliance. For example, our Electronic Work Diary (EWD) not only ensures drivers stay within their work hours but also provides the detailed, accurate data needed for audits, turning a complex administrative burden into a simple, automated process.

Maximum 30 Days Payment Terms

These orders can cover vital aspects like payment terms (for example, the current Contract Chain Order 2024/4 aims for a maximum of 30-day payment terms, addressing the crippling issue of 90-day or even 120-day payment cycles that can financially ruin operators). They can also include safety requirements not already covered by other laws, and dispute resolution processes. What they can’t do, however, is duplicate or override existing comprehensive legislation such as work health and safety laws or heavy vehicle national laws.

Beyond legislated payment terms, one of the biggest silent killers of profitability is unpaid waiting time. We talked about how MSOs can cover dispute resolution, and this is where having irrefutable evidence is paramount. Hubfleet’s software leverages advanced GPS data and geofencing technology to provide that evidence. By setting up virtual boundaries (geofences) around depots, ports, and delivery points, Hubfleet automatically creates a digital, time-stamped record of when a vehicle enters and exits a location and even creates alerts when time in a given area exceeds a specified threshold. This automated process accurately documents every minute of waiting time, creating an indisputable log that can be used to support claims for compensation and help operators protect their bottom line from the crippling effects of ‘mobile storage’ and payment delays.

Fair Work Applications for MSOs and CCOs

A significant point we discussed was how applications for MSOs and CCOs can be made by various parties, including transport operators, contractors, industry associations like NATROAD (my guest Warren Clark’s organisation), unions, or any party affected by unfair terms. This process, while taking time (around 18 months), is a vital mechanism for change, potentially even paving the way for minimum operator conditions without waiting for lengthy HVNL reviews.

Collaboration Across Associations

We also highlighted the immense importance of collaboration across associations like NATROAD, NRFA and even with unions like the TWU, noting that despite past differences, there’s a strong appetite to work together for industry-wide change. The unity of industry voices, providing real-world stories and evidence, is paramount to getting legislative change enacted.

Chris Roe: Five Decades of Driving, and a Lifetime of Determination

To round out the episode, we welcomed back Chris Roe, an owner-driver with five decades on the road. Chris has always been a straight shooter, and his words carry the weight of someone who’s lived through every version of this industry, good, bad, and broken.

In this episode, we reflected on a powerful line he once shared with me:“

Old men plant trees whose shade they know they shall never sit under.”

Chris was quick to point out it wasn’t originally his phrase, he credits the Greek philosophers, but he’s certainly made it his own. For him, it’s not about legacy in the ego sense. It’s about leaving the industry better than he found it. “All we can do,” he said, “is get up every morning and keep batting.”

Showing Up, Sharing Your Story, and Supporting Change

Chris may never see the full benefit of the reforms he’s helped fight for, but that doesn’t stop him from showing up, sharing his story, and supporting change. He’s not looking for praise, he’s driven by a stubborn sense of determination, something he said he’s always carried, even back in his footy days when he might not have won Best and Fairest but always walked away with Most Determined.

Importance of Industry Collaboration

That kind of grit matters. It’s the kind of persistence that’s helped push long-overdue reforms like Minimum Standards Orders forward. It’s also the reason Chris continues to work alongside associations like NRFA, NATROAD, and even the TWU when it comes to shared goals. As he said on the show, “There are still strong differences, sure, but we’ve agreed on the things we can work together on. That’s an achievement that shouldn’t go unrecognised.”

He’s also keenly aware of the damage done when the industry turns on itself. We talked about how easy it is for critics to mock collaboration efforts between associations and unions “singing Kumbaya” as some put it, but Chris had no time for that. He knows that real reform only happens when people stop point-scoring and start pulling in the same direction.

Would You Go Back To Being an Owner-Driver?

In fact, he even turned the tables at one point and asked both me and Craig a pointed question: “Given the current state of the industry, would you go back to being an owner-driver?”

Both Glyn and Craig responded yes to the question, with Glyn adding a note of caution. While the passion for the job is still strong, Glyn reflected that returning to the role today would be a much more complex decision due to how much the operating environment has changed. He acknowledged that his previous model of owner-driving may not be viable under the current economic and regulatory conditions. The exchange highlighted both their continued love for the work, and the reality that today’s challenges would make it far harder to succeed than in years past.

Final Reflections

Chris’s reflections are a reminder that industry reform isn’t just about laws and contracts. It’s about people. It’s about the quiet resilience of someone who refuses to walk away bitter, who doesn’t want to be “that bloke in the background criticising the next generation.” It’s about planting trees. And trusting that, someday, someone will sit in their shade.

Ultimately, our goal, and the goal of these new orders, is to create a more sustainable, fair, and safe environment for every transport professional. It’s about ensuring that those at the top of the supply chain play an active role in supporting safe operations, and that corner-cutting due to financial pressure becomes a thing of the past. Hubfleet is your digital partner in this new era, providing the tools to manage fatigue compliance, track maintenance, and, most importantly, use automated geofences to document your wait times and ensure you get paid for every minute you work.

Thank you for tuning in to the “Risky Business” podcast. At Hubfleet we’re committed to bringing you the information you need to navigate our complex industry safely and compliantly.

Lets help lift industry standards, Sign up for a free 14 day trial to see how Hubfleet helps you manage compliance, track maintenance, and use GPS and geofencing to document your time to the minute.

FAQs

“Minimum Standards Orders” and “Contract Chain Orders” are mechanisms introduced through the “Closing the Loopholes Bill” to address long-standing issues in the Australian road transport industry.

  • Minimum Standards Orders are decisions made by the Fair Work Commission Road Transport Advisory Group to establish enforceable minimum standards for contractual agreements in road transport, particularly for owner-drivers and small businesses. Their purpose is to enhance fairness and safety in commercial practices that are not adequately regulated otherwise.
  • Contract Chain Orders extend these minimum standards beyond the immediate contractor, ensuring that other parties higher up in the contractual chain, such as large retailers or logistics providers who indirectly control transport terms, are also obligated to comply. This prevents a “race to the bottom” where larger entities might award work to the cheapest bidder without regard for safe or compliant operations.

These orders can cover aspects like payment terms (e.g., a maximum of 30-day payment terms, as seen in the 2024/4 order), safety requirements not already covered by other laws, and dispute resolution processes. They are designed to create a level playing field and ensure that all participants in the supply chain are held accountable.

The absence of minimum operating standards in the transport industry fosters a “race to the bottom” where businesses are incentivised to cut corners to survive. This competitive pressure leads to various detrimental practices, including:

  • Delayed Maintenance: Operators might postpone necessary vehicle maintenance to save costs, compromising safety.
  • Sham Contracting Arrangements: Illegitimate contractual setups that exploit drivers and avoid proper employment conditions and wages.
  • Underpaid Operators: Businesses pushing their drivers and themselves to breaking point due to unsustainably low rates.
  • Non-compliant Combinations: Vehicles and loads being assembled and transported without adhering to safety and legal requirements. This lack of a fundamental “floor” for business operations not only endangers lives (as evidenced by high road fatality rates) but also creates an unsustainable environment for legitimate and compliant businesses, often driving them out of the market.

The Fair Work Commission’s Road Transport Advisory Group (RTAG) is the body responsible for reviewing applications and making Minimum Standards Orders and Contract Chain Orders. The process involves:

  • Application: Transport operators, contractors, subcontractors, industry associations (like NatRoad and NRFA), or employer and employee representative bodies (such as the TWU and ARTIO) can submit applications.
  • Review: The Commission assesses whether the proposed matters are not already comprehensively regulated by other existing legislation (e.g., work health and safety laws, heavy vehicle national law).
  • Evidence and Subcommittees: It considers evidence through the Road Transport Advisory Group (RTAG) and may establish subcommittees composed of interested parties directly affected by the proposed order. This inclusive approach aims to involve “real truck drivers and real workers” rather than just legal professionals, ensuring practical industry insights are considered.

While the process can be lengthy (around 18 months for orders), it represents a significant opportunity to introduce enforceable standards and address long-standing issues that existing legislation has not effectively resolved.

Truck operators and the transport industry face numerous pressures and challenges, making it an increasingly difficult sector in which to operate. Key issues include:

  • Economic Viability: The primary challenge is simply staying in business, as undercutting by competitors leads to unsustainably low rates.
  • Payment Terms: Long payment terms (e.g., 90-120 days) from larger clients place immense financial strain on owner-drivers and small businesses, effectively forcing them to act as banks for larger corporations.
  • Market Coercion: Large customers often impose terms that drive down freight costs, with little regard for the operational viability or safety implications for operators. This power imbalance often prevents smaller operators from speaking out for fear of losing contracts.
  • Lack of Industry-Wide Standards: The absence of mandatory operator licensing or uniform standards allows incompetent or unscrupulous operators to enter the market, undercutting legitimate businesses and compromising safety.
  • Sham Contracting and Tax Evasion: The prevalence of sham contracts and tax avoidance practices by some businesses creates an unfair competitive advantage, undermining compliant operators and leading to tax shortfalls.
  • Unpaid Waiting Time: Truck drivers often spend hours, or even days, at delivery points, ports, or depots waiting to be loaded or unloaded without compensation. This “mobile storage” phenomenon significantly impacts efficiency, driver welfare, and profitability, yet is not systematically policed or penalised.

Collaboration across various industry associations (like NatRoad, NRFA, ATA) and employee and employer representative bodies (such as the TWU and ARTIO) is considered crucial for driving meaningful change in the transport sector. Historically, a fragmented approach with differing demands allowed politicians and bureaucrats to avoid action. However, a united front presents a clear, consistent message to the government, making it harder for them to ignore the industry’s concerns.

This collaboration has led to shared advocacy for initiatives like the “Closing the Loopholes Bill” and the establishment of the Road Transport Advisory Group. While differences in approach or priorities may still exist, the focus is now on common ground, such as addressing payment terms and minimum standards. The unions, particularly the TWU, are recognised for their strong connections to the current government and their efforts in tackling broader issues like the “gig economy” which impacts the entire industry. This collective effort provides a stronger voice and a better chance of achieving legislative and cultural reforms.

Beyond legislative changes, discussions highlight the need for a fundamental shift in industry culture, focusing on safety, respect, and professionalism. Key areas for improvement include:

  • Enhanced Training and Licensing: Moving beyond simply teaching how to pass a test to comprehensive training that instils professional driving skills, road respect, and business acumen. This includes improving the quality of trainers and establishing clear career paths within the industry.
  • Mentorship: Re-establishing informal mentorship structures that historically helped new entrants learn the practicalities and ethics of the industry, which have largely disappeared.
  • Fairer Enforcement: Advocating for more proportionate penalties for infringements, moving away from “punitive prescriptive fines” that can disproportionately impact drivers for minor errors, and encouraging regulators to focus on systemic issues rather than individual mistakes.
  • Community Awareness: Educating the broader public, including schools and other road users, about the vital role of the transport industry and promoting safer interactions with heavy vehicles.
  • Combatting Unscrupulous Practices: Encouraging self-reflection and honesty within the industry to identify and stop practices like sham contracting, tax avoidance, and unsustainable rate setting by major clients, which undermine legitimate businesses and safety. These efforts aim to cultivate an industry where safety and compliance are ingrained, and operators are not forced into compromising situations due to economic pressures or outdated practices.

 

The long-term vision for the transport industry is one of sustainability, safety, and fairness, where it remains a viable and respected career path. Despite the current challenges, optimism stems from several factors:

  • Industry Resilience and Adaptability: The industry has historically demonstrated its ability to survive and adapt, as evidenced during events like the COVID-19 pandemic.
  • New Mechanisms for Change: The introduction of Minimum Standards Orders and Contract Chain Orders through the Fair Work Commission provides a concrete “window of opportunity” to enforce necessary reforms that were previously difficult to achieve.
  • Growing Collaboration: The increasing unity and cooperation among diverse industry associations and unions signal a stronger, more coherent voice that politicians and bureaucrats find harder to ignore.
  • Increased Awareness: There’s a growing recognition within the industry and among authorities of the deep-seated problems, such as unsustainable payment terms and sham contracting, fostering a collective will to act.
  • Desire for Systemic Change: The focus is shifting from minor adjustments to addressing fundamental issues, such as the viability of operating a truck and the accountability of parties higher up the supply chain.

The hope is that by leveraging these new legal mechanisms, fostering greater collaboration, and encouraging internal honesty, the industry can establish a baseline of operational integrity and economic viability that benefits all participants and ensures a safer future for generations to come.

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