The City of Karratha lodged a submission to the Fair Work Commission on the Road Transport Contractual Chain Order, highlighting the need for refinements to ensure it operates effectively in regional areas.

The order, which came into effect on 21 April, requires primary and secondary parties in road transport contractual chains to adjust rates fortnightly to reflect changes in fuel costs.

While the City supports the intent of establishing appropriate minimum standards, it has raised concerns that the current mechanism could have disproportionate impacts in regional Western Australia, particularly in the Pilbara.

The Pilbara experiences a cost of living approximately 11.4 per cent higher than the Perth metropolitan area, driven by structural factors including a heavy reliance on long-distance road freight to deliver food, construction materials and essential goods.

For local government, the proposed changes would directly increase the cost of delivering essential services, with limited ability to absorb these impacts due to statutory revenue constraints, procurement requirements and fixed budget cycles.

To support the intent of the order while minimising unintended consequences, the City has recommended several key refinements, including aligning adjustment timeframes with standard monthly invoicing cycles, limiting changes to prospective application, recognising existing contractual fuel adjustment mechanisms, and ensuring obligations on primary parties are proportionate.

The submission also calls for greater recognition of regional operating environments, where reliance on road freight and higher cost structures present unique challenges.

For more information on the Road Transport Contractual Chain Order, visit https://www.fwc.gov.au/about-us/news-and-media/new...