
THE OWNER DRIVERS UNION
Supporting Owner Drivers: What the TWU is Doing for You
Advocacy and Representation
Owner Drivers are a vital part of the transport industry, and the Transport Workers Union (TWU) is committed to ensuring they receive the support and representation they deserve. Our union understands the unique challenges owner drivers face, including fluctuating income, high operational costs and the pressures of running a small business. We also sit on the Transport Industry Council, which is responsible for making recommendations to the Minister for Industrial Relations on commercial practices affecting owner drivers.
Nationally we have been fighting for a Safe Rates system for over 20 years through our transport reform campaign that will lift standards for all transport workers, funded by the wealthy retailers, manufacturers and oil companies at the top of the supply chain.
The lifesaving reform we have fought relentlessly to achieve has passed the Federal Parliament in the Closing the Loopholes Bill and will soon become law. It will set safer, fairer standards for all transport workers by setting minimum enforceable standards across sectors of the transport industry through orders by the new Road Safety Division of the Fair Work Commission.
The Closing the Loopholes legislation will work along side the Victorian Owner Driver & Forestry Contractors Act where the union has already won significant improvements including mandatory rates on government jobs.
Here's how the TWU is working to protect and enhance the livelihoods of Owner Drivers:
Fair Rates and Contracts
- Fighting for Fair Rates: The TWU actively campaigns for fair rates of pay that reflect the true costs of running a transport business. We negotiate with industry stakeholders and government bodies to establish and enforce minimum rates that cover fuel, maintenance, insurance and other operational expenses, ensuring owner drivers can earn a fair living.
- Improving Contract Terms: We work to ensure that contracts for owner drivers are fair and transparent. The TWU advocates for reasonable payment terms, clear conditions and protections against unfair termination. Our goal is to help owner drivers secure contracts that provide stability and security.
Legal Support and Representation
- Legal Advice and Representation: Owner drivers who are TWU members have access to expert legal advice and representation. Whether it’s a contract dispute, unfair treatment, or an issue with a client, the TWU provides the legal support needed to protect your rights and interests.
- Resources to support your business: We offer a range of educational resources and training programs to help owner drivers stay informed about industry developments, regulatory changes and best practices. These resources are designed to help you run your business more effectively and stay compliant with the law.
- Through your TWU Membership you gain access to:
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- free owner driver information kit
- expert advice, representation and information on the Owner Driver Act
- contract negotiation
- notification of changes to rates and running schedules
- individual and joint negotiations with hirers
- Assistance with dispute resolution VCAT representation
- a voice on the Transport Industry Council
- access to training courses
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Community and Solidarity
- Building a Supportive Network: Being an owner driver can be isolating, but with the TWU, you are part of a larger community from the transport industry. We facilitate networking opportunities, forums and events where owner drivers can share experiences, offer support and build connections.
- Advocacy for Industry Standards: The TWU works at the national and local levels to advocate for policies and regulations that benefit owner drivers. We engage with government bodies, industry groups and other stakeholders to push for improvements that enhance the sustainability and fairness of the transport industry.
Financial and Business Support
- Access to Financial Services: TWU members can access a range of financial services and advice, including assistance with cost modelling and loan applications with Unity Bank. Our goal is to help owner drivers manage their finances effectively and achieve long-term success.
- Business Support Programs: We offer programs designed to support the business aspects of being an owner driver. This includes guidance on managing expenses, maximizing efficiency, and navigating the complexities of running your own transport business.
The TWU is Your Experts in the Owner Driver & Forestry Contractors Act
Understanding the Law
The Owner Driver & Forestry Contractors Act (ODFC Act) is a critical piece of legislation designed to protect the rights and interests of owner drivers and forestry contractors in Victoria. The Transport Workers Union (TWU) played a pivotal role in the creation and implementation of this Act, ensuring that the unique needs and challenges of owner drivers and forestry contractors were addressed. Our deep involvement from the very beginning makes the TWU uniquely positioned to understand and advocate for your rights under this law.
Our Role in the Owner Driver & Forestry Contractors Act
The TWU in Victoria was instrumental in the conception, drafting, and passing of the ODFC Act. We recognised the urgent need for legislation that would provide fair rates, transparent contracts, and better working conditions for owner drivers and forestry contractors.
Our dedicated efforts included:
- Consultation and Advocacy: We worked closely with government officials, industry stakeholders, and owner drivers to highlight the issues faced by owner drivers and forestry contractors. Our advocacy ensured that the ODFC Act was designed to address these specific challenges.
- Drafting & Improving the Legislation: Our expertise and input were crucial in drafting the provisions of the ODFC Act. We ensured that the legislation included robust protections for fair rates of pay, contract transparency, and the prevention of unfair treatment and exploitation.
- Implementation and Enforcement: After the ODFC Act was passed, the TWU continued to play a key role in its implementation. We worked to ensure that the Act’s provisions were effectively enforced and that owner drivers and forestry contractors were aware of their rights and how to exercise them.
Getting to know the ODFC more
The ODFC Act covers:
- Owner-drivers that operate up to 3 vehicles to transport goods (not passengers)
- Haulage and harvesting contractors in forestry
- Anyone hiring these drivers or contractors
- Freight broker
The Owner Drivers and Forestry Contractors Code of Practice has guidance on how to comply with the Act.
As the driving force behind the ODFC Act, the TWU possesses in-depth knowledge and understanding of this legislation.
Here’s why we are the foremost experts on the ODFC Act:
- In-Depth Knowledge:
Our involvement in every stage of the ODFC Act’s development means we have an in-depth understanding of its provisions, intentions, and practical applications. We know the law inside and out, allowing us to provide accurate and comprehensive guidance. - We know they have an obligation to provide information:
Hirers or freight brokers that engage contractors for 30 days or more (or a total of at least 30 days within 3 months) must give them:
- the information booklet that applies to their industry
- the rates and cost schedule that relates to their vehicle
- This information allows contractors to understand their operating costs better. Generally, Owner Drivers and forestry contractors must receive this information at least 3 days before being engaged. Contracts must be in writing.
- Experience and Expertise:
With years of experience representing owner drivers, the TWU has the expertise to navigate the complexities of the ODFC Act. Our team is skilled in interpreting the law, advocating for your rights, and ensuring compliance with its requirements. - Ongoing Advocacy:
The TWU remains committed to monitoring the implementation of the ODFC Act and advocating for necessary amendments and improvements. We continue to work on behalf of our members to ensure the Act evolves in response to changing industry conditions and challenges. - Support and Resources:
We provide our members with access to valuable resources, including educational materials, training programs, and legal advice. Our goal is to empower you with the knowledge and tools you need to fully benefit from the protections offered by the ODFC Act.
Some useful tips about the ODFC Act
Hirers must enter into written contracts with owner drivers and forestry contractors if their ongoing engagement is for 30 days or more or has no fixed end-dated. The contract should set out:
- the guarantee minimum hours of work or income level
- the rates to be paid
- the minimum notice to end the contract or payment instead of notice
A model contract is available at business.vic.gov.au/odfc
Payments and Notice to end contracts
Generally, hirers must pay contractors invoices within 30 days of receiving them. Generally, if an ongoing engagement is for 3 months or more, hirers, owner drivers and forestry contractors must give enough notice that the contract is ending. This is at least:
- 3 months for forestry contractors and owner-drivers of heavy vehicles
- 1 month for all other owner-drivers
Otherwise, hirers must provide payment instead of notice.
You are protected under the Act
People must not be treated badly because they exercise their rights under the Act. Hirers must not disadvantage owner drivers and forestry contractors for raising health and safety issues or seeking to negotiate contracts. Owner drivers must not be disadvantaged for joining their union.
How to handle disagreements
The TWU legally supports members in the Victorian Small Business Commission to resolve disputes between hirers and contractors. Contact the TWU if you need help with representation for your issue.
If your dispute does not get resolved, you can refer it to the Victorian Civil and Administrative Tribunal (VCAT), which can make a range of orders to deal with issues. VCAT can also make changes to contract terms if it decides they are unjust. The TWU can help guide you through the process.