The Australian Industry Group has joined the Australian Logistics Council (ALC) in calling for the end of the Road Safety Remuneration Tribunal’s (RSRT).

The Ai Group has long been one of the RSRT’s most vocal opponents, accusing the regulatory board of not actually contributing to industry safety.

The Federal Government has launched a review to see if the RSRT is effective in improving safety in the logistics industry; both the ALC and now the Ai Group have made submissions saying it is not.

The ALC has previously claimed the RSRT is a case of legislative over-reach, which only duplicates existing workplace laws.

“The Road Safety Remuneration System does not have broad support,” Ai Group CEO Innes Willox says.

“It is a flawed system which was implemented by the previous Federal Government in response to the Transport Workers Union’s safe rates, safe roads industrial campaign.”

“The road safety remuneration system is distracting government and industry attention and resources away from the measures which are widely recognised as improving road safety, towards a regime which is not widely supported nor underpinned by robust economic modelling,” she said.

A link between low rates of pay and poor safety in the trucking industry was the basis for the creation of the RSRT, following probes in 2008 by the National Transport Commission (NTC). The RSRT has the power to set remuneration rates for employee drivers and owner-drivers, with the intention of rewarding safe practice.

The Ai Group suggests the RSRT has been counter-productive.

“Even if a causal connection between remuneration and unsafe practices is presumed to exist it does not follow that establishing higher minimum rates or prohibiting certain methods of payment will result in drivers changing their unsafe practices,” the Group’s submission states.

“Rather, if it is accepted that an individual’s on-road behaviour is influenced by the quantum of their remuneration it is conceivable that increased rates may further incentivise individuals to engage in behaviours such as the working of excessive hours in order to reap greater rewards.

“Similarly, other unsafe practices such as drivers who fail to undertake maintenance of their vehicles in order to make savings may simply continue regardless of their level of remuneration.”

Consultant Rex Deighton-Smith has been tasked with leading the regulatory review, after being appointed by Employment Minister Eric Abetz.