Fair Work Act 2009

s.536JY - Commission may make a minimum standards order

s.536PD - Commission may make a road transport contractual chain order

Re Transport Workers' Union of Australia and Australian Road Transport Industrial Organisation

(MS2024/1; MS2024/2; MS2024/3; MS2024/4; MS2025/1; MS2025/3; MS2025/4)

Applications for minimum standards orders and road transport contractual chain orders under Chapters 3A and 3B of the Fair Work Act 2009 (Cth) - Correspondence seeking assistance of the Commission in relation to recent spike in fuel prices - Conference scheduled.

[1] On 15 March 2026, the President of the Commission received correspondence from the Transport Workers' Union of Australia (the TWU) and the Australian Road Transport Industrial Organisation (ARTIO). The correspondence refers to a number of proceedings which are presently before the Commission which seek minimum standards orders and road transport contractual chain orders be made under Chapters 3A and 3B of the Fair Work Act 2009 (Cth) (the FW Act) in Matter Numbers MS2024/1, MS2024/2, MS2024/3, MS2024/4, MS2025/1, MS2025/3 and MS2025/4. Those applications seek that the Commission make orders which include provisions with respect to minimum rates or providing for rate reviews.

[2] The correspondence requested the urgent assistance of the Commission to address what those parties described as 'extreme increases to the price of fuel costs that have the very real prospect of halting road transport supply chains with dire consequences for the Australian community' which have been caused by recent international events. There is no dispute that fuel prices have increased sharply in recent weeks. By way of example, data produced by the Australian Institute of Petroleum indicates that, in the week ending 15 March 2026, the national average retail price of diesel increased from $1.96 to $2.45 per litre and the national average retail price of petrol increased from $1.98 to $2.19.

[3] The TWU and ARTIO suggest that the fuel increases are unsustainable for many transport businesses and operators. The TWU and ARTIO express concern that existing contractual arrangements in road transport supply chains are unlikely to include necessary provisions that respond to this urgent situation or, where they do, there is no certainty about how these obligations are extended to the whole of the supply chain including those ultimately performing the work. Those parties submit that the involvement of all supply chain participants is critical in finding an appropriate solution that accounts for rising fuel costs.

[4] The Commission conducted a case management conference yesterday for the purposes of considering the views of relevant industrial organisations, industry participants and businesses in relation to the issues raised in the correspondence. A large number of industrial organisations, business and interested persons participated in the case management conference. The parties who participated in the conference expressed general agreement that the recent spike in fuel costs has already had a significant impact on transport operators and presents a serious challenge to all persons who are involved in, or who rely upon, road transport. The Commission was informed that some businesses had already adopted measures to endeavour to ameliorate the import of fuel price increases on transport operators and workers.

[5] A number of interested parties queried the basis upon which the TWU and ARTIO are requesting that the Commission facilitate discussions in relation to the impact of increases in fuel prices and whether there was any basis upon which the Commission could make any order or exercise any power under the FW Act to address the concerns raised (at least on an urgent basis). Particularly in circumstances in which there is uncertainty as to the nature of the exercise envisaged to be conducted by the Commission, a number of interested parties expressed scepticism that a conference process conducted by the Commission would provide a practical process through which to discuss steps that might be taken to address the issue.

[6] Notwithstanding the doubts expressed by some interested parties, I consider it is appropriate for the Commission to schedule at least an initial conference to facilitate discussions in relation to steps that might be taken to address the impact of recent increases in fuel prices. Most of the interested parties who appeared at the case management conference acknowledged the seriousness of the challenges currently facing participants in the transport industry and expressed a willingness to be involved in a conference conducted by the Commission. I consider there is potential utility in facilitating a process to identify what steps might be taken to address the impact of fuel price increases. I do not consider, at this stage at least, that the Commission should order any person to participate or provide information to the Commission.

[7] To assist in ensuring a conference can be as productive as possible, directions will be issued together with this statement requiring the TWU and ARTIO to file a document setting out the type of operators and sectors they believe should be involved, the issues that should be discussed and any options those parties believe are available to address the impact of the recent increases in fuel prices on road transport operators and workers. The directions will also provide for other interested parties to provide information to the Commission (on a voluntary basis) in relation to steps that have been taken, or options which are being explored, to address the impact of increases in fuel prices. Appropriate confidentiality arrangements can be facilitated by the Commission if any person or body wishes to provide information which is commercially sensitive or confidential.

[8] A conference of a type discussed in this statement will be conducted at 11:00AM (AEDT) on Wednesday, 25 March 2026 in Sydney with provision for remote attendance.

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PR797772