Road Freight NSW announced its support for a road transport operator licensing system to help ensure trucking operators know their safety obligations and comply with safety standards.
Road Freight NSW General Manager, Jodie Broadbent believes an operator licensing system would protect professional truck drivers and operators from the “financial and reputational” damage caused by temporary, low-cost transport ventures that are short lived.
Broadbent said members were frustrated with the number of people entering the industry with no knowledge and undercutting other experienced operators to win contracts. Broadbent stated:
“Our members are fed up with ignorant people entering our industry who have no knowledge of how to run a business, no concept of the costs associated with running a trucking company and some daft idea that undercutting others is the only way to win contracts,” Broadbent said.
As Broadbent explains these new operators don’t have a clue of how to do a cost analysis and the prices they offer customers is ridiculously low, which results in them not being able to properly pay their employees and bills. This in turn leads to them cutting costs elsewhere, usually starting with vehicle maintenance, compromising on safety. Broadbent explained:
“Because they have never performed a cost analysis, these ventures will undercut other operators by offering prices that don’t even cover the cost of keeping the wheels turning on their trucks. The result is their employees are not paid properly, they do not meet their tax obligations and they cut corners in managing their business, such as maintaining their vehicles.
“Eventually these businesses go bankrupt, leaving many people negatively affected by unscrupulous or poorly-informed management decisions.”
The Road Freight NSW Policy Council is made up of both large and small businesses. These businesses in a unanimous vote agreed to work with governments and the National Heavy Vehicle Regulator (NHVR) to come up with a system that ensures legitimate businesses are protected.
Broadbent explained that an operator licensing system would ensure trucking businesses know what their safety obligations are and how to comply, this will lead to a safer and more legitimate industry. Broadbent also stated:
“Having some requirements to ensure trucking business owners are well aware of their business and safety obligations will help the industry become safer, more viable and more professional,”
Read more at: http://www.primemovermag.com.au