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How the contract determination underpins your rate
The work performed by Courier Drivers in NSW is regulated by chapter 6 of the Industrial Relations Act 1996. That part of the Act gives the Industrial Relations Commission of New South Wales the power to make Contract Determinations which set minimum terms and conditions of engagement between principal contractors and owner drivers.

Courier work is currently regulated by the Transport Industry - Courier and Taxi Truck Contract Determination. It sets out minimum terms and conditions and also provides a minimum earnings (safety net) for couriers.

Companies generally have set ‘job rates’ which are paid to Couriers for each job performed and vary depending on the weight, distance travelled and time required to perform that work. No matter what the ‘job rates’ are which a Principal Contractor pays a courier it must be at least as much as the safety net amount.

The current Determination provides for the following minimum payments to be made by a Principal Contractor:

$26.73 per hour averaged over the safety net period.

Additional Fuel Levy of 4% in addition to all other remuneration

Superannuation contributions as set out in the Transport Industry Courier and Taxi Truck (Superannuation) Contract Determination.

In addition to the minimum terms which are set out in the Determination, the TWU regularly assists couriers in negotiations for other more beneficial terms and conditions above those minimums. The determination is a minimum and in no way limits the ability of Couriers and the Union from negotiating more beneficial arrangements directly with a company. The best way to ensure better rates is to stay with the TWU.

Dear Daryl
Daryl Ackers is an experienced courier driver and has been around in the Courier sector for years. If Daryl can’t help you, no one can!! If you need a question answered, write to Daryl: dear.daryl@nsw.twu.com.au

Dear Daryl,
I was wondering if you could help me with a pay issue…

My mate from another yard reckons I should be getting more money because of some Safety Net thing? I drive a one tonner, and I got paid $9227.61 for 385.25 hours of work. Do you reckon that’s the right amount?

Bill

Dear Bill

A Safety Net is the minimum hourly rate required to be paid from the time of first allocation to the time of last drop each day. It is calculated over two months. We know most companies do not pay their Safety Net correctly, so you need to calculate it on your own.

Add up your “allocation to last drop” hours for the two month period and then multiply this by the safety net hourly rate.

For a one tonner, the safety net should be $26. 73 per hour.

Supposing that you worked 385.25 hours from 1 April to the 30 May.

This calculates as:

26.73 X 385.25= $10 297.7325

You have only been paid $9227.61 which is a difference of $1 070.12

And my calculations do not take into account other dues such as the Fuel Levy of 4%, the GST of 10%.

Be careful that you don’t get ripped off like this in the future. It is highly likely that other people in the yard are in the same position. Take it to management and demand that you get back-paid. They owe you Bill.

I hope you find this helpful,

P.S - A couple of notes on the Safety Net

1) Some companies absorb their Superannuation into their Safety Net. These include Tollfast and Allied. So Bill, if you work for either of these companies your Safety Net should be higher.

2) Some companies put unauthorised breaks into a driver’s day- without consulting that driver. This is illegal.
They do it because it reduces their liability by $500 for the Safety Net period. You cannot let them get away with this because it means you are not entitled to any Safety Net at all. Mailcall, Kings, Capital and even Allied have been known to do this. It is unacceptable.