Originally published by David Marin Guzman of the Australian Financial Review
14.04.2026
Companies at the top of road transport supply chains such as Coles and Wesfarmers will be forced to cover the fuel cost rises of truckie owner-drivers under landmark orders proposed under Labor’s laws, as unions also seek to lift their minimum wage claim this year beyond 5 per cent.
The Fair Work Commission issued draft orders on Tuesday that will require primary contractors to take “reasonable steps” to cover dramatic diesel price rises that have hit thousands of owner drivers since the start of the Iran war in March and conduct fortnightly reviews of their rates.
The unprecedented orders, delivered under the Albanese government’s broad road transport supply chain laws, would apply to every sector of the economy that engages owner drivers, from retail, warehouses and agriculture to construction, manufacturing and mining.
They came as ACTU secretary Sally McManus revealed the union peak body will also revise its 5 per cent minimum wage claim this year due to the ongoing conflict in the Middle East.
“There’s no doubt that we will be lifting our wage claim for the annual wage review. There’s not a question about that,” she told reporters on Tuesday.
“We know inflation is going to be higher. It’s just a matter of how much we will lift our claim.”
Australian Industry Group chief executive Innes Willox said the FWC’s supply chain proposal “needs to be fundamentally reconsidered” and “the consequences of its implementation are profound and cannot be overstated”.
“What is being proposed is a compliance nightmare, an ordeal for business and an economic wrecking ball,” he said.
“At a time when industry is navigating a very difficult situation, confidence is low and a recession looms on the horizon, this just adds another layer of complexity and risk for business, despite the fact that many parties are already seeking to work these issues through in an amicable and commercial manner.”
Australian Resources and Energy Employer Association chief executive Steve Knott said the orders were “extraordinary overreach” and dragged in miners, energy producers and every business exposed to road transport.
“We’re talking about a sweeping intervention into private contracts, with only days for affected businesses to respond. That should concern anyone operating in Australia.”
But Transport Workers Union national secretary Michael Kaine urged supply chain clients to quickly back the order before owner drivers faced “a debt cliff” for fuel bills on April 21.
“Without this order it’s not a case of transport businesses making less profit, like it is for major retailers – it’s mass trucking businesses going under, and supply chain chaos,” he said.
“That’s why we need the top of the supply chain to pay for these increases, which drivers and transport businesses simply cannot absorb.”
The TWU sought the order on an urgent basis as it argued owner drivers – making up the bulk of the supply chain – had experienced diesel prices as a percentage of their costs soaring from 30 per cent to 60 per cent.
Workplace Relations Minister Amanda Rishworth issued an emergency determination on Friday that slashed the minimum six months’ consultation required in response.
An FWC full bench led by president Justice Adam Hatcher proposed the orders take effect on April 20 but stressed it had not reached a concluded view. It set down a final hearing on Friday to hear from parties on the orders.
“We consider that publishing a notice of intent and the draft [order] at this time is an appropriate step taking into account the need for an appropriate safety net of minimum standards for regulated road transport workers,” the bench said.
Retail giant Wesfarmers, which owns Bunnings, Kmart and Officeworks, had warned that by effectively placing all the burden of fuel costs at the top of the supply chain the orders would lead to price inflation for the broader public while “immunising” secondary contractors like Toll and Linfox.
Requiring full recovery of fuel increases would also leave “no incentive to hedge [or] to control fuel usage”, it argued.
Coles and Woolworths on Monday warned the orders could “devastate” some smaller transport businesses and risked truckies claiming “double recovery” for a single trip involving different customers.
While businesses that already deal with the fuel costs are exempt under the draft orders, some lawyers said the extent of the carve out was unclear and could result in contractors being dragged into the commission for arbitration.
Willox said for many businesses “compliance will be simply impossible and they will be left with the risk of an unquantifiable liability hanging over their head”.
