TWU joins chorus calling action on sham contracting

THE TRANSPORT Workers Union WA Branch (TWU) is the latest organisation to call for governments to step in and put a stop to illegal sham contracting.

TWU state secretary Tim Dawson said the practice was spreading like wildfire throughout the transport industry.

It has become a damaging issue particularly for WA’s road‑freight industry, with recent reporting drawing attention to its visible consequences in the state’s outback regions.

While the problem is national, WA’s long‑haul routes, remote rest bays and transient workforce make the state particularly vulnerable to the practice.

Sham contracting occurs when a worker is engaged as an “independent contractor” despite operating under conditions that resemble employment.

In the freight sector, this often means drivers who have little control over their hours or loads; rely on a single company for work; are required to supply and maintain their own vehicle; or carry the financial risk without the autonomy of a genuine contractor.

The arrangement allows some operators to avoid paying superannuation, leave entitlements, insurance and award wages.

It also shifts compliance responsibility away from the company and onto the driver— often someone with limited bargaining power or limited understanding of Australian workplace law.

WA’s freight network is dominated by long‑distance routes, sparse enforcement coverage and a high proportion of interstate and overseas drivers which creates an environment where compliance checks are infrequent; drivers can be recruited quickly and cheaply; operators can avoid scrutiny by shifting responsibility onto “contractors”; and abandoned equipment can go unnoticed for long periods.

Industry bodies have repeatedly warned that WA’s geography makes it easier for non‑compliant operators to exploit workers and harder for authorities to intervene early.

Recent reporting has highlighted a growing problem in outback towns such as Kalgoorlie, where locals have observed: abandoned trucks and trailers left in rest bays and service‑station surrounds; tyres and oil dumped illegally; and roadside areas being used as makeshift depots by transient operators.

While not “heavy machinery” in the mining sense, these are large transport assets — prime movers, trailers and associated equipment — left behind when drivers walk away from untenable contracting arrangements.

Mr Dawson said sham contracting was having a real impact on workers.

“Drivers are being pushed to work under an ABN while doing set hours, driving company vehicles and working overtime without proper pay — the exact same work an employee would do, just without the employment protections,” Mr Dawson said.

The result was no superannuation, workers’ compensation if they’re injured or annual leave, no sick leave and no long service leave.

“These are protections that every worker in Australia is entitled to.”

Mr Dawson said that now’s the time to weed these companies out or force them to do the right thing.

“Australia is already facing a serious driver shortage, yet instead of lifting standards to attract workers, some companies are racing to the bottom through sham contracting,” Mr Dawson said.

“The companies that are abandoning trucks, tyres, and equipment on the side of the road are likely the same companies that are cutting corners and driving down prices to operate through sham contracting.

“We need to ensure that the major clients, including large retailers, the mining industry and fuel companies are policing their supply chains and stamping out this illegal practice, rather than driving rates down and creating supply chains that are not only unsafe, but operating outside the law.”