Executive Officer’s Report – September 2009

Annual Dinner, Members & Forestry Stakeholders Session

Another reminder that TFCA will hold its Annual Dinner and Stakeholder session for members, their employees and our partners on Friday 23 October 2009 at the Country Club Casino in Launceston.

Given the impending pressures on transport operators, it is envisaged that we will dedicate resources to helping members and their employees address the upcoming compliance and enforcement requirements.  At this stage, it is likely that Trucksafe representatives will provide members and their employees with options for wrapping all of their compliance requirements into one neat and effective package.

At a broader level, we will also look at unfair contract issues as well as what you need to do to keep up to date with the new industrial relations legislation.

The simulator will be available all day for promotional purposes and/or dedicated training.  If you want to book some time on the machine for yourself or your employees then please let me know.

The evening cocktail party and dinner will obviously crown an important day for the forest contracting sector.  This will be your turn to interact with industry partners and fellow forestry people and demonstrate the resilience of the sector.  Don’t forget as well that the industry partners will be available all day on Friday 23 October if you want to come and see some of the equipment on display and talk about services and options.

Therefore, book us into your diary from 10am onwards (9:30 if you want an early up coffee) for an informative and rewarding day.

Welcome to Industry Partners

Once again TFCA extends its warm appreciation to the industry partners that have agreed to participate in this financial year.  Whilst the list is elsewhere in this newsletter, TFCA notes that we are in the process of upgrading our website to provide for increased information and even photos of products etc.  We are even considering a member’s diary to promote partners as well as provide members with an extremely useful business tool.  More information about these initiatives will follow in due course.

Please note though that all of these businesses have suffered and continue to struggle during this economic downturn but yet they continue to support a critical Tasmanian industry.  Your continued consideration of their products and services is certainly welcome and encouraged and feel free to contact us for their details.

Road User Charges

Further to my comments in the last newsletter edition, TFCA recently learned of the NSW Government’s decision to delay the registration charge increases by six months.  TFCA immediately contacted Minister Sturges office for comment and whilst the Minister considered our request for a delay, this was subsequently turned down.

 

Safe Rates Debate

It is with increasing interest that we watch the ‘safe rates debate’ at the Federal level, knowing that the Federal Government is keen to on restructuring remuneration methods in the trucking industry.  The parallels that exist between this and the contractual struggles confronting many forest contractors should not be ignored.  It is certainly possible that many of the cartage contractors will soon have a solution of sorts to rely on and hopefully this solution will be inclusive of appropriate rate setting mechanisms that take into account various configurations, running costs and even financial considerations.

I suggest that it is also safe to say that those who continue to cling to an anti safe rates agenda, will run the risk of having something forced on them.  A number of TFCA members will know what that feels like !!  The most appropriate way forward from here is to recognise the various cost calculation methods and become more accepting of them whilst lobbying to ensure that mechanisms are better than minimum rates as far as the entire industry is concerned.  Whilst I’m certainly not against the establishment of minimum rates for various conditions, such situations may not effectively take into account the variety of different trucking configurations utilised by members.  Isn’t this what TFCA tried to achieve with the Fair Contracts Code Advisory Note in 2006 that ended up becoming a ‘non binding’ document?

It is worth noting at this point that TFCA has formally requested a review of this Advisory Note, given that it was supposed to be reviewed some six months after its inception.  We have also asked Minister Llewellyn to examine the Victorian legislation because there may be elements of this, such as those relating to unfair terms and dispute resolution, that could be useful here in Tasmania.

A stronger legislative base in Tasmania that provides for clear risk sharing between the parties and encourages investment whilst helping the industry to achieve its own structural adjustment to regrowth and plantation timber is the way to go.  Legislation doesn’t need to be prescriptive but it must ensure that unfair arrangements such as no minimum quotas, without some sort of fixed cost cushion and/or matrix arrangement, are not permitted.  This alone will encourage re-investment and improve the credit status of the sector.  If we then add in a Small Business Commissioner type arrangement who can hear and determine disputes between ‘warring parties’ coupled to suitable protections for those parties during and after disputation, then this would benefit all.  The collective negotiation provisions could also be useful.  Finally, I am lead to believe that Victorian legislation provides for a strong Industry Council that can help with addressing systemic issues and maybe we could consider this as well.

In summary we hope that through a combination of the initiatives mentioned above, the forest contracting sector, inclusive of harvesting, haulage and silviculture businesses, will finally achieve a more sustainable future.

Driver Safety Services

Recently Driver Safety Services launched its new multi use training vehicle.  This vehicle is unique in that it has inbuilt hydraulics to enable conversion from a B Double and Heavy Combination (semi trailer) to a Heavy Rigid configuration.  The availability of B Double training vehicle also opens up greater access for training and obtaining a licence because interested employers no longer have to make one of their own B Doubles available for licence training.

We encourage interested members to contact DSS direct on 03 6248 5455 to find out more and arrange any necessary licence training.

Keep in mind that TFCA continues to work with DSS and Forestworks to create a suitable transport module for trainees that will not only provide them with the Cert III Harvesting and Haulage, but will take them from a car licence right through to a multi combination vehicle licence.

Addressing the insurance excess issues for young drivers and machine operators

In response to member requests, TFCA is busily lobbying for support from other forestry and/or transport industry associations to provide for a rebate type mechanism that will hopefully cover the significant excesses that businesses have to pay when younger operators damage their equipment.  Our aim is to link this rebate arrangement into a formal training outcome, that is, if you are undertaking a relevant training package then you should benefit from an insurance excess rebate.  In simple terms, this is really no different to Governments providing other types of training funding such as user choice and even long term unemployed arrangements.

This is certainly an ongoing campaign and we have already received some in principle support for our approach from the likes of AFCA, VFHCC, Driver Safety Services, Australian Trucking Association, Forestworks so hopefully we can push this one through because the benefits will surely outweigh any costs.

National Transport Commission’s draft policy to reduce paperwork on the road

Members with fond and not so fond memories of the electronic data system rollout for sawlogs will certainly read this article with some trepidation !!

The National Transport Commission recently released a ‘draft position paper’ seeking industry and other stakeholder input into providing ‘…a practical alternative to paper based work diaries using technology already fitted to many trucks and buses’.

Whilst the concept of electronic diary mechanisms has merit in ‘today’s day and age’, there are a number of threshold issues that must be considered:

1. Arguably the use of telematics in the Tasmanian transport industry isn’t as widespread as it is on the ‘Northern Island’
2. Tasmanian drivers will soon progress to a national work hour driver record, although the exact timing of this is still unknown.
   1. Therefore how quickly can the industry come to terms with potentially two changes in log keeping arrangements in a relatively short period of time?
   2. Should there simply be one change and/or should the electronic option be optional?
3. Given experiences with sawlog electronic data capture, what will be the fallback position if electronic systems break down?
4. How will we address the issues with electronic signatures and will password arrangements overcome this?
   1. There needs to be a process to ensure that an electronic version is viewed as a legal medium of record
   2. Given that electronic log book machines may, or will download information direct from the vehicle’s telematics without driver interference, is this preferred or should the driver have some opportunity to check and, if necessary, make changes to ensure compliance with model legislation?

i.      Currently, when counting work time, there is a requirement to round up to the next 15 minute block (according to model legislation) but this will not work too well with electronic systems

1. Given that electronic data capture is quite specific, will we see more infringements follow from arguably minor offences such as exceeding the speed limit by two kilometres per hour whilst travelling down Spring Hill on the Midland Highway?
2. Can industry afford this and do the benefits outweigh the costs?

In no way is this article aimed at ‘killing off’ any support for electronic log book systems.  In fact, those that avoid technological advances that could very well result in efficiencies may lose out especially when operating in the highly competitive environment of heavy transport.

Nevertheless, ‘a push or push through attitude’ is definitely not the answer and this is the position that TFCA will take in its response.  In simple terms, the benefits to industry as well as the community must outweigh the costs and our issues above must be suitably addressed.  For example, some sort of transitional period could be quite useful.

Members seeking more information about this matter are welcome to give us a call.

National Transport Commission’s Performance Based Standards Review

TFCA is maintaining a watching brief on the PBS review even though there has been limited uptake in Tasmania.

In late June 2009, the National Transport Commission released a paper highlighting a range of issues identified by stakeholders which may affect the ability of the PBS scheme to deliver its objectives.  Included within this paper are recommendations for modifications to improve the viability of the scheme.  This paper followed on from a discussion paper that was released in December 2008.

By way of background, the PBS scheme was introduced in October 2007.  As of June 2009, there have been 52 approved SMART (this is the name given to Performance Based Standards approved vehicles) vehicles.  It seems as if the majority of industry members have adopted a ‘wait and see’ approach because many early adopters have not realised the desired network access.  Some industry stakeholders also refer to the scheme as being costly, complex and time consuming.

Listed below is a summary of the issues and action items listed in the report:

ITEM	ISSUE	ACTION	STAGE
General	Industry members have identified the lack of certainty around road access as the major roadblock to the wider uptake of PBS.  Other issues such as the differing application of the PBS scheme in each jurisdiction have resulted in inconsistencies in network access	NTC to develop a regulatory impact statement and model legislation to provide a national PBS scheme which offers transparency in relation to network access.	1
Process Improvements	Industry members have highlighted the need to amend business rules in order to improve the operation of the PBS review panel in terms of operation, access arrangements, how generic vehicle designs are handled, assessment and certification rules and nationally consistent operating/access conditions	Such RIS and model legislation to: Allow for self assessment and self certification to approved manufacturers Develop national access conditions Develop an out of session PBS Review Panel process Develop improved blueprints and a modular certification process	1
B-triple compatible level	COAG (Council of Australian Governments) has requested States to map appropriate networks for B-triples which should form the basis of a Performance Based Standard level.	Develop a B-triple compatible level of appropriate performance length and swept path requirements.	1
Standards improvements	State authorities and industry members have advised that the safety standards require review as some standards do not take into account new technologies, do not align with current arrangements and do not adequately cater for buses.	The NTC recommends the reassessment of certain standards as identified by the review as not meeting the objectives of PBS.  These include level 4 limits, standards applicability to certain vehicle designs, the use of generic data and the use of stability control for the adherence to static roll-over stability standards.	2
Infrastructure	Bridge access is a major contributor to the lack of certainty around network access	The NTC is recommending an establishment of a bridge working group to develop an improved bridge assessment process.	3

Stage 1 items are due to be addressed in 2010, Stage 2 in the period 2010-2011 and Stage 3 from 2012 onwards.

In many respects, Tasmanian operators are fortunate because any increase in uptake will hopefully coincide with proposed regulatory changes that should make the scheme more appealing to all stakeholders.

Members seeking a copy of the paper are welcome to contact TFCA or download it from www.ntc.gov.au.

Career Enhancement Program and Training Simulator

Here is how the TFCA Career Enhancement Program works:

• TFCA, ForestWorks and other industry stakeholders working together to identify potential employees
• Once potential employees are found, interviews are arranged for interested members to talk with the potential employees
• When a TFCA member makes an offer of employment, TFCA will assist with preparing employment documentation at no charge to the member – TFCA will also work directly with the Australian Apprenticeship Centre (MEGT) to facilitate all of the documentation
• The member will have to pay the employee’s wages and on costs and may lose the employee for specialised training for around 6 days over the two year period of the training contract– TFCA will advise the appropriate wage rate and this will not be the National Training Wage because you will not keep the employee – it will be something that each employer can afford and, at the same time, will encourage the trainee to stay and have a go
• Skills Institute provide the majority of training with the assistance of TFCA’s Field Officer for in-field licensing assessments, skills coordination etc
• Each employee will work towards obtaining a Cert III in Harvesting
• TFCA will continue to provide human resource assistance to the member throughout the life of the program i.e. update employment contracts, handle disciplinary requirements etc
• There will also be an opportunity for existing employees to achieve a nationally recognised qualification through skills recognition and where necessary top up training at the same time.

Most of you are struggling to find good people to employ even though you are willing to spend the money on wages.  Therefore why not invest in an employee who wants to learn – the end result for you will be the same.

Finally, members are encouraged to note that the Harvesting, Forwarding and Excavating Simulator is now available and ready for skills development and careers promotion.  Please contact either TFCA or Forestworks/TFITB for further information.

ForestWorks Careers Website

The development of a comprehensive Forest, Wood, Paper and Timber Products Industry career website is now complete and is available from www.growyourcareer.com.au. This web portal provides an essential avenue for the community to access most up-to-date information on careers, training, pathways to skills development and employment opportunities in the industry. Some of the striking features of this careers portal include ‘Job Search’ and ‘Build your skills record’.

The ‘Job Search’ feature is specifically designed to serve the Australian Forest, Wood, Paper and Timber Product Industry; it will be the most cost effective way for employers to advertise jobs. It will offer a vital link between jobseekers and employers in this industry.

‘Build your skills record’ is an online form for existing workers of the Forest, Wood, Paper and Timber Products Industry to record their skills. Individuals working in this Industry can become members of ‘Build your skills record’. They can log in using a user name and password to record their skills online and print a professional document (skills record) based on the data provided.

The next step in the success of this web portal relies on employers to take advantage of the ‘Job Search’ facility to advertise job vacancies. This facility is (currently) free for a limited time only.

As significant employers in the harvesting, cartage and silviculture sectors, members are encouraged to participate in this important industry initiative.  If your organisation currently has any job vacancies please type the link below into your web browser and complete an online ‘Post a Job Ad’ form to advertise those positions online on the careers portal.

http://www.forestworks.com.au/topics/3556.html

This is a great opportunity for you to advertise your job vacancies online for free.  Let’s work together and make this website a success and ensure a bright future for the Forest and Forest Products Industry.

A flyer for this important initiative is included in this newsletter and more information is available from TFCA.

Rural Financial Counselling Service

In previous issues of this newsletter, I have mentioned that members are able to take advantage of free rural financial counselling that is funded by Federal and State Governments.  I will continue to mention the existence of this service in all newsletters.

If you are a small rural business i.e. rural business that employs no more than ten full-time-equivalent (38 hrs per week) employees and provides the majority of its services to primary producers and is directly involved in primary production (e.g. fencing, harvesting, spraying or stock management contractor) then you can contact the RFCS.

Rural financial counselling is:

• free
• impartial
• independent of financial institutions, welfare agencies and government.

The client makes the decisions: It’s up to the client to choose which option is right for them. The rural financial counsellor will help clients develop some options and will provide support with their decision making.

Rural financial counsellors can:

• help clients identify financial and business options
• help clients negotiate with their lenders
• give clients information about government and other assistance schemes
• refer clients to accountants, agricultural advisers and educational services
• refer clients to Centrelink and to professionals for succession planning, family mediation and personal counselling, and emotional and social counselling.

Rural financial counsellors do not provide family, emotional or social counselling, financial advice or succession planning services – but they can provide referrals and information.

Contact details are as follows:

• Northern Tasmania:                 Clemencia Barnes       03 6334 2768
• North West Tasmania:            Judy Pinny                  0488 611 002
• Southern Tasmania:                 Leigh Noye                 03 6272 5992
• Web                                         www.rfcs.gov.au

Members having problems accessing the service are welcome to contact the office for assistance.

Stop Crime and reduce the effects of illegal protest action in rural and remote areas

Bush Watch has been operating in Tasmania for many years but its effectiveness is limited somewhat by reporting systems.  In simple terms, Bush Watch needs more input from people in rural communities.  Not only is vigilance important but even reporting minor crimes can assist with clean up rates and discourage repeat offences.  Even if you are operating in a coupe and something is stolen, you should contact Bush Watch and report.  Regular reporting will allow Police to compile intelligence, build profiles and make arrests.

Tagged as: EO's September 2009 Report