The Fair Work Commission should require customers to pay invoices from trucking businesses within 30 days, ATA CEO Mathew Munro said today.
The FWC is preparing to hold hearings into an application for a road transport contractual chain order from the Transport Workers’ Union (TWU).
Mr Munro said the ATA supported 30 day payment terms for every business in the trucking industry because prompt payment improved cash flow and business viability in an industry with high operating costs and very low margins.
“Survey research that we provided the commission shows that 20 per cent of operators who issue their own invoices are typically paid more than 30 days after the invoice is issued,” Mr Munro said.
“These businesses are operating as banks for their often very large customers. It’s not acceptable, it was never acceptable and it needs to stop.
“Our submission proposes that there should be low cost recovery options and a default daily interest rate that would apply to late payments,” he said.
Mr Munro said the ATA’s proposal was more workable than the TWU’s draft order, which would set 21 day payment terms for invoices issued within seven days of the work being done.
“The evidence we provided the commission shows that 29 per cent of the respondents to our survey did not issue invoices within seven days. Under the TWU draft, these businesses would miss out on the benefits of maximum payment terms.”
Mr Munro said the ATA submission supported fair and reasonable rate reviews, with reviews to be conducted at least yearly. For businesses that did not have fuel surcharges or levies, fuel related costs would need to be reviewed at least quarterly.
“The ATA submission also proposes adding changes to the road user charge, tolls and port access charges to the matters that may be included in rate reviews,” he said.
