Industrial Relations Commission of New South Wales CITATION: Taxi Industry (Contract Drivers) Contract Determination 1984 [2008] NSWIRComm 129 APPLICANT PARTIES: NSW Taxi Industry Association RESPONDENT Transport Workers' Union of New South Wales FILE NUMBER(S): IRC 974 of 2008 CORAM: Marks J CATCHWORDS: Application for variation of Contract Determination - variation sought to reflect increase in pay-ins sought by taxi driver operators consequent upon increase in taxi fares - application is neither consented to nor opposed - operator costs during relevant period have increased - investigation required on impact of rising cost of fuel - contract determination is varied in the manner set out in schedule to application LEGISLATION CITED: Taxi Industry (Contract Drivers) Contract Determination 1984 Industrial Relations Act 1996 HEARING DATES: 3 July 2008 EXTEMPORE JUDGMENT DATE: 3 July 2008 APPLICANT Solicitor Mr O Ratner LEGAL REPRESENTATIVES: Pigott Stinson Ratner Thom Lawyers RESPONDENT Mr G Selig of Transport Workers' Union of NSW JUDGMENT: INDUSTRIAL RELATIONS COMMISSION OF NEW SOUTH WALES CORAM: Marks J Thursday 3 July 2008 Matter No IRC 974 of 2008 Taxi Industry (Contract Drivers) Contract Determination 1984 Application by NSW Taxi Industry Association for variation of a contract determination pursuant to s 311 of the Industrial Relations Act 1996 EX TEMPORE DECISION [2008] NSWIRComm 129 1 This is an application brought by the New South Wales Taxi Industry Association for a variation of the Taxi Industry (Contract Drivers) Contract Determination 1984 to reflect an increase sought by the taxi driver operators consequent upon increases in taxi fares determined by the Ministry of Transport of the New South Wales Government following the issue of a report in June 2008 by the Independent Pricing and Regulatory Tribunal. 2 The increases in fares for urban areas which are covered by this Contract Determination operate from 1 July 2008 and are in an amount of 3.8 per cent. The application is neither consented to nor opposed by the Transport Workers Union of New South Wales. That union takes the view that it is necessary to investigate at some stage the basis upon which the Contract Determination operates and, in particular, the basis for calculation of moneys payable to taxi drivers under it. 3 An application to intervene was made on behalf of the Australian Taxi Drivers Association. That Association is not registered as an organisation under the provisions of the Industrial Relations Act 1996 and therefore has no right to appear and to participate in proceedings before this Commission. However, although I have declined for the purposes of the circumstances of these proceedings to give that Association a right of intervention, its representative today has agreed to liaise with the TWU to determine whether a joint approach may be made to the Commission in the interests of taxi drivers generally at an appropriate time. 4 The IPART report notes that the operator costs during the period under consideration have increased by 4.7 per cent and the driver costs by 4.8 per cent. There has been a discussion during the course of the proceedings today about whether in reality these might be representative of the proportionate costs of the operation of taxis by reason of the very large increase in the price of fuel which has been experienced over the last few months. 5 Obviously the increase in the cost of fuel is well known throughout the community but has not been quantified for the purposes of these proceedings and therefore any impact would be a matter of impression only rather than allowing some scientific approach to be adopted which could be reflected in any variation to the amount of pay-in made by drivers under the bailment system which operates under the Contract Determination. 6 The parties have sensibly agreed that this is an area which might require investigation during the life of the current determination as it will be varied by the Commission today. I discussed with the parties the making of an interim variation. As it is intended that this variation will apply in reality for a period of twelve months only, because IPART reviews taxi fares annually, there seems no point in formally creating an interim variation, particularly as the parties agree that the extraordinary increase in the cost of fuel is a matter which may require consideration at an appropriate time, including a time during the period of the current variation which I propose making. 7 The variation sought by the Association is contained in a schedule to the application which I am assured reflects the increase in pay-in determined by reference to the IPART final report and recommendation. If it transpires at some later stage that there has been some error in calculation, then the parties agreed that this is a matter which may be re-visited by making an appropriate application to the Commission. 8 Because the Association is applying principles which have now been established for some years by this Commission dealing with appropriate increases in the Contract Determination following increases in taxi fares determined by the Ministry of Transport, it is appropriate in my opinion that I make the variation sought. The contract determination is hereby varied in the manner set out in the schedule to the application filed in the Commission on 26 June 2008. The variation is to apply to the first shift of any taxi driver commencing after one minute past midnight on Saturday next, 5 July 2008. DISCLAIMER - Every effort has been made to comply with suppression orders or statutory provisions prohibiting publication that may apply to this judgment or decision. The onus remains on any person using material in the judgment or decision to ensure that the intended use of that material does not breach any such order or provision. Further enquiries may be directed to the Registry of the Court or Tribunal in which it was generated.