A watchdog for safe pay in the transport industry has been dealt a big blow, with a warning from the top that it could be scrapped.

Prime Minister Malcolm Turnbull has put the Road Safety Remuneration Tribunal (RSRT) on the chopping block, saying it would be abolished if the LNP wins the next federal election.

It is just another hit to the RSRT as it tries to introduce a new minimum pay rate for trucking contractors.

Negotiations on the owner-driver pay rates have been on for close to two years, but heavy backlash from Coalition figures across the country has left the process mired in political sabre-rattling.

Employees of big transport firms are currently covered under an award rate system.

The RSRT’s process has been looking at moving contractors onto a new pay rate in line with union members, so that they can stay competitive and safe on the roads.

But there is concern from owner-drivers that being forced to charge more would force them out of business.

Mr Turnbull has threatened to move the long-running and sensitive negotiations back to square one, by abolishing the tribunal if his Government was returned at the federal election.

He said matters handled by the RSRT would be given to the National Heavy Vehicle Regulator, backed by redirecting the tribunal's $4 million in annual funding.

“It is not a tribunal that does anything effective to do with safety, it undermines owner-operators, it undermines small business, it undermines family businesses,” the Prime Minister said.

“Two reports have investigated it and each of them has recommended that it be abolished.

“We will carry that out, it will be abolished if the Turnbull Government is re-elected at the election this year.”

The Government has already outlined legislation that will delay the introduction of new rates until next year and, in a bill set to be introduced on April 18.

Shadow Employment Minister Brendan O'Connor said the decision adds unnecessary and dangerous delays, given the 25 deaths attributed to heavy vehicle accidents last month alone.

“The Government has had two years to consider the Road Safety Remuneration Order which sets a minimum pay rate for owner-drivers, yet at the last minute they have reacted contemptuously by taking aim at the independent umpire,” Mr O’Connor said.

Transport Workers Union national secretary Tony Sheldon said the link between pay and pressure on truck drivers was clear.

“If you can't afford to maintain your vehicle, you don't,” he said.

“If you can't afford to put food on the table, you work extraordinary hours and you're fatigued.”