Free online tools to fine-tune your operating costs

You’ve set yourself up as an owner-driver of a heavy vehicle, but are you sure you’re being paid as much as you should?

It’s an important question that doesn’t always have an easy answer, especially when costs are rising – as are the demands on owner-drivers.

It’s against this background that Western Australia’s Department of Transport and Major Infrastructure (DTMI) has made available on their website a range of resources to help owner-drivers know their rights, negotiate contracts and run their business successfully.

A key feature is guideline rates of payment and an interactive online ‘cost calculator’ tool to help owner-drivers clarify business costs and ensure they don’t underquote.

The online resources are the result of extensive consultation between DTMI and the Road Freight Transport Industry Council - which comprises owner-drivers, hirers, the community and government.

“Owner-drivers play an important role in keeping Western Australia’s road freight transport industry supply chain running,” said Cam Dumesny, a Council member and CEO of Western Roads Federation, which represents companies and specialised transport associations using WA roads.

“We estimate there’s around 7,000 owner-drivers in WA and competition in the sector can be fierce, leading some owner-drivers to cut their rates to unsustainable levels to secure work,” Mr Dumesny said.

“And while competition is an integral part of heavy road freight, owner-drivers should be able to negotiate a safe and sustainable rate of payment with their hirer.

“Add to that the added challenges of operating as owner-driver in Western Australia in terms of distances travelled, often on unsealed roads with a diverse range of payloads, often in support of the resources sector but also livestock and grain.

“What we’re providing is the tools to enable owner-drivers – who have invariably invested heavily to establish themselves as road freight operators – to quote on jobs and ensure all their costs and overheads are met, and their business remains viable.”

The online resources include:

• an interactive cost calculator to help owner-drivers get a better understanding of the typical costs of running their business.
• guideline rates of payment for 13 different truck types and configurations - updated annually - allowing owner-drivers to find their ‘perfect fit’ for running their business safely and at a profit.
• tips on negotiating contracts, including using a negotiating agent and negotiating as a group of owner-drivers.
• tips on dealing with disputes with hirers.

Samantha Cox, a Road Freight Transport Industry Council member who runs a trucking business with her husband, said that having contract templates available for owner-drivers to download was a valuable addition.

“It’s good business practice to use written contracts,” Ms Cox said.

“A written contract ensures clarity and understanding of terms between and owner-driver and hirer.

“It doesn’t need to be complicated - just clear, understood and agreed.”

Fellow Council member and Transport Workers Union State Secretary Tim Dawson said the potential for exploitation of owner-drivers was a perennial issue.

“There has historically been an inequity in the bargaining positions of owner-drivers and hirers,” Mr Dawson said.

“Owner-drivers are the most vulnerable and least protected sector in the industry.

“The sector is often characterised by low-level earnings, high rates of business failure, and working conditions any other industry would consider unacceptable.

“The goal has always been for safe and sustainable rates for owner-drivers in the road transport industry.

“There’s also an expectation from regulators that heavy haulage drivers operate safely.

“But unless owner-drivers are paid reasonable rates, the pressure on them to cut corners to compete in the high-cost environment in which they operate will continue.”

Road freight industry veteran and Council member Andrew Fazzalari wants owner-drivers to know their rights when contracting with hirers.  

“Maintaining a healthy cash flow is part and parcel of running a profitable business so getting paid on time for your work is essential,” Mr Fazzalari said.

“Knowing when you should be paid and what to do if you run into a dispute will help keep your business moving and our online toolkit will help owner-drivers do that.”