Application by Transport Workers' Union of Australia & Australian Road Transport Industrial Organization re fuel cost recovery
Citation: [2026] FWCFB 163
What happened
In April 2026, an expert panel from the Fair Work Commission made a road transport contractual chain order (the Order) to address fuel supply disruptions due to conflict in the Middle East. The Order aimed to adjust rates paid for work in the road transport industry because of rising fuel costs. Clause 5.3 stated that these obligations would cease if the weekly average national diesel price fell below $2.00 per litre. Subsequently, a review process began, and proposed variations were considered. However, the diesel price dropped below the threshold in June 2026, effectively ending the Order's obligations. The Australian Trucking Association (ATA) then suggested reviving the order with modifications.
What was decided
The Fair Work Commission’s expert panel decided not to vary or revoke the Road Transport Contractual Chain Order at this time. They acknowledged the ATA’s proposal to remove the $2.00 per litre threshold but rejected it, citing concerns about the potential impact of doing so and procedural requirements. The panel also noted that a ceasefire agreement had been reached in the Middle East, but uncertainty remained regarding future fuel prices. While the Order remains in operation, its obligations are currently suspended because diesel prices have fallen below the specified threshold.
What it means for employers
Employers should be aware of how Fair Work Commission orders can be implemented to address industry-specific issues like fuel price volatility. The decision highlights that such interventions are time-sensitive and tied to specific conditions. Employers also need to consider the potential impact of government measures on their costs and pricing strategies.
What it means for employees
Employees in the road transport sector should understand that Fair Work Commission orders addressing fuel cost recovery can be temporary and dependent on market conditions. While the current obligations are suspended, future fluctuations in diesel prices could trigger renewed action.
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This summary was drafted from the published decision and reviewed before publishing. It is general information, not legal advice. For your specific situation, speak to the Fair Work Ombudsman (13 13 94) or a qualified lawyer. About these summaries & corrections →