Taxi Industry (Contract Drivers) Contract Determination [2011] NSWIRComm 1036

Industrial Relations Commission New South Wales Medium Neutral Citation: Taxi Industry (Contract Drivers) Contract Determination [2011] NSWIRComm 1036 Decision date: 15 July 2011 Jurisdiction: Industrial Relations Commission Before: Connor C Decision: Contract determination varied to reflect share of fare increase Catchwords: CONTRACT DETERMINATION - taxi industry - fare increase - variation of contract determination to reflect an approved fare increase - adjustment of component for taxi owners according to formula adopted for past fare increases Legislation Cited: Industrial Relations Act 1996 Cases Cited: Taxi Industry (Contract Drivers) Contract Determination Case 1996 - unreported Taxi Industry (Contract Drivers) Contract Determination Case 2001 - unreported Taxi Industry (Contract Drivers) Contract Determination Case 2002 - unreported Taxi Industry (Contract Drivers) Contract Determination Case 2003 - unreported Taxi Industry (Contract Drivers) Contract Determination Case 2006 - unreported Category: Principal judgment Parties: New South Wales Taxi Industry Association (Applicant)

Transport Workers' Union of New South Wales (Respondent) Representation: Michelle Khoury, Pigott Stinson Lawyers (Applicant) Oshie Fagir, Transport Workers' Union of New South Wales (Respondent) File Number(s): IRC 122 of 2011

DECISION

INTRODUCTION 1On Thursday, 7 July, 2011, acting pursuant to the provisions of Part 2, Contract Determinations, of Chapter 6, Public Vehicles and Carriers [Ss.311 to 321], of the Industrial Relations Act 1996 , the New South Wales Taxi Industry Association has lodged an application to vary the Taxi Industry (Contract Drivers) Contract Determination. The variation sought to flow on a share of a fare increase [2.9%] recommended in a recent report to the State Minister for Transport by the Independent Pricing and Regulatory Tribunal of New South Wales [IPART]. Taxi fares were reviewed by IPART and its report - the "2011 Review of Taxi Fares in New South Wales: Transport Final Report and Recommendations June 2011" - referred to the State Minister for Transport. The fare increase [3.5%] recommended by IPART has been accepted by the State Government and is to take effect on and from Sunday, 17 July, 2011. 2There are, in fact, two methods of remuneration recognised under the Taxi Industry Contract Determination: a sharing of the chargeable fares - 45% for the bailee in the first year and 50% for subsequent years [Method One] and a fixed payment scheme whereby the taxi driver bailee retains the excess after an agreed sum has been paid to the taxi owner bailor [Method Two]. Taxi driver bailees have the option of working under either Method One or Method Two. Taxi driver bailees in the Sydney metropolitan area invariably have worked under Method Two, however, and Method One has, to that extent, fallen into disuse. 3Under Method Two, fare increases flowing from IPART recommendations and subsequent approval by the State Government are initially applied to taxi driver bailees and an application is made to vary the Taxi Industry Contract Determination for the taxi owner bailors to share in that fare increase. The current IPART report shows that operator costs have increased by 2.9% since 2010 and that is the adjustment which the TIA is seeking on this occasion for taxi owner bailors. The Transport Workers' Union of New South Wales has represented the taxi driver bailees in past proceedings.