The TWU continues to educate transport firms who fail to meet strict legal requirements on the prompt payment of owner-driver invoices.
TWU members Greg Hitchcock and Alec Auburn came to us in desperation after waiting months for money owed to them by Smithy's Haulage in Bunbury. Greg was owed $32,500 and Alec $28,500.

And the law is crystal clear:
If there is NO WRITTEN & SIGNED CONTRACT owner drivers must be paid WITHIN 14 DAYS from the day an invoice is presented to the hirer.
If there IS A WRITTEN & SIGNED CONTRACT it can stipulate that a contract can be paid WITHIN 30 DAYS - but only if all parties agree and sign to accept those conditions.

We made these legal requirements clear to Smithy's Haulage and to their credit they were keen to sort things out. However, they were caught up in the cash flow problems that are far too common in our industry. Clients not paying them on time, etc.

Of course this is not an excuse and the WA Owner Drivers Act bans "If paid/when paid" arrangements in contracts with subbies.

Fortunately for Greg and Alec we were able to get Smithy's to agree to pay each of them $10,000 up front. This relieved a lot of the immediate pressure and the other outstanding money was paid pretty quickly too. To their credit Smithy's Haulage stuck to their word once they gave it and you can't ask much more than that.

While Smithy's Haulage were reasonable people to deal with I can't say the same for Zenith Transport.

In fact the contrast between Paul Smith and Mal Southern who runs Zenith was extreme.

We had reason to talk to Mal when one of our members complained about waiting for months for $10,000 which was still owed to him. I'm a pretty friendly, easygoing person, always polite and courteous and that's how my conversation with Mal began.

I simply explained that I was calling on behalf of a member who was chasing his money and explained what the law said about prompt payments. I said if he didn't comply with the law we would have to take him to the Owner Drivers Tribunal.

Mal was not impressed and he let me know his feelings in no uncertain terms - as I took notes at the other end of the phone.

"I don't give a f#@k about bullshit laws," Mal barked. "I will happily tell any magistrate or commissioner that I don't agree with the laws and will be happy to do it the way I have always done and will continue to do it"! he raged. "It'll be months before you get me in the Tribunal and by that time the money will be paid!"

I thought Mal might be about to blow his pooper valve and suggested he calm down a little. I offered to send him a shovel to help with the hole he was digging for himself. He ended up hanging up on me.

Of course that wasn't the end of it because our legal and industrial division people lodged an application with the Tribunal. In court Mal was told the law is the law and he must abide by it like everyone
else.

Mel's response: "That's the last time I employ a subbie! "
Maybe that's a good thing.
By the way our member got his money.

As far as the TWU is concerned the law is the law and if you don't abide by it you should pay the price.

We must educate hirers and their clients about payment laws