Further information in relation to these Industrial Circulars
can be obtained from the ARTIO NSW Secretariat,
email: firstname.lastname@example.org, Telephone: 0412 880861
Important Information for Principal Contractors Operating in NSW
On 15 March 2017 the NSW Industrial Relations Commission issued an new contract determination which sets rates and conditions for principal contractors who engage sub-contractors in NSW. This Contract Determination substantially broadens coverage from that established in the original Determination issued in 1984. The new Contract Determination takes effect from 15 April 2017.
The new Contract Determination replaces the Transport Industry – General Carriers Interim Contract Determination which took effect on 2 July 2016. This new Contract Determination takes effect from 15 April 2017.
Please refer to further information below:
What are Contract Determinations?
Like awards, contract determinations are industrial instruments that arise from decisions of an industrial tribunal. In Australia decisions related to contract determinations are only made in NSW under the Industrial Relations Act 1996 (NSW). Decisions are made by the NSW Industrial Relations Commission.
What Obligations Apply under Contract Determinations?
Principal contractors who engage sub-contractors, known under NSW law as “contract carriers”, are obliged to meet rates of pay and other conditions as set out in a contract determination. This means obligations on principal contractors in respect of contract carriers mirror those which apply to employers who engage employees under a Modern Award.
Obligations also apply to contract carriers engaged by principal contractors.
What Changes Have Been Made to this Contract Determination?
Changes to this Contract Determination are:
- Where the Contract Determination currently operates, rates will increase effective the first pay period on or after 15 April 2017.
- A new rates structure will take effect from the first full pay period on or after 1 January 2019.
Where the Contract Determination currently operates, phasing in of new rates will occur in five stages through to 1 July 2023.
- Rates in the Contract Determination will for the first time apply to:
- The transport of cash (other than in armoured vehicles), furniture removals, private pathology and refrigerated transport.
- Outbound journeys from the County of Cumberland (greater metropolitan Sydney) to areas around Newcastle and Wollongong.
- There will be no phasing in of new rates where expanded geographical coverage or expanded operational coverage applies.
- New hourly allowances will apply from the first full pay period on or after 1 January 2019 to trailers and in certain circumstances, to NHVR accreditation and to Blue Card training.
- Alternative remuneration arrangements will be permitted under the Contract Determination with conditions.
There are also substantial changes to conditions in the Contract Determination that sit alongside provisions related to rates payable by principal contractors to contract carriers. Provisions in the Contract Determination relating to conditions place obligations on both principal contractors and contract carriers.
Are All Principal Contractor/Sub-Contractor Relationships Covered by a Contract Determination?
No. Although there are a number of contract determinations which cover general freight, specialist industry sectors or company operations specific exemptions also apply based on industry sector and/or geography.
Why are Changes to the Transport Industry- General Carriers Contract Determination so Important?
The new Contract Determination issued on 15 March 2017 changes obligations on principal contractors and contract carriers. This Determination also broadens geographic coverage and covers sectors of the industry not previously subject to a Contract Determination. This means that for the first time some principal contractor/sub-contractor relationships will be covered by this Determination and, therefore obligations will be imposed on affected parties.
ARTIO NSW Industrial Circular 4/2017: Transport Industry – General Carriers Contract Determination – New Rates and Associated Conditions 27 March 2017