Information about the Inquiry

Inquiry into Workforce Challenges in the Transport Industry

Information about the Inquiry

The Senate has referred an inquiry into workforce challenges in the transport sector to its Employment, Workplace Relations and Education Committee. The committee has broad terms of reference to look at current and future employment trends in the industry; industry needs and the skills profile of the current workforce; current and future skill and labour supply issues; strategies for enhanced recruitment, training and retention; and, strategies to meet employer demand in regional and remote areas. 

There are broad terms of reference for this inquiry.

The purpose of the inquiry is: 

  • to address the scope of the problem of labour and skill shortages affecting all sectors of the transport industry and the likely consequences of serious labour shortages;
  • to review labour supply research undertaken for the transport industry, to canvass the views of industry, consumers and unions in regard to recruitment and employment practices in the industry;
  • to alert Parliament to the projected labour shortage in the transport industry which will seriously affect the distribution of all goods and most travel services in the next ten years; and,
  • to make recommendations on Commonwealth-led coordination of improved training delivery for the sector, and address issues related to employment incentives and disincentives that are characteristic of the industry.

The transport industry would claim that it is likely to be one of the industries most seriously affected by projected skills shortages and an impending work experience deficit. It is not only that operations managers, truck drivers and train drivers are ageing and that a high proportion will retire within seven years: it is that young people are not entering the industry at anywhere near replacement rates. In fact, young people appear to seriously underrate the opportunities the industry offers in management and technology. The effects will become most obvious with the retirement (and unfilled replacement positions) of control system operators in storage managers and freight forwarders, train controllers and other middle management operators. The committee will consider the options open to transport operators to deal with the effects of these challenges.

The transport industry is diverse. Road transport carries about 70 per cent of goods. Leaving aside nation-wide listed or state owned enterprises such as Toll, QR and Linfox and a few others, the majority of businesses operate, for the most part, on a much smaller scale. Many experience very tight profitability margins, and many operators in the trucking business are said to be barely profitable, and their difficulties are compounded by the likely continuing rise in fuel prices. At another level, the historical lag in railway infrastructure investment presents a different set of challenges, but even if this investment was to be dramatically increased, the labour issue, and specialised skill shortages would still loom as a serious impediment to the speedier and efficient movement of freight and people.

The terms of reference will allow the committee to hear views on continuing work practice issues in the operation of railways and road transport, and their effects on recruitment and efficient use of labour. The transport and logistics industries are concerned that they present an image of offering only low-skilled employment. The committee can consider, under one or a number of its terms of reference, efforts by the industry to emphasise career structures and contemporary work practices. It appears that the institutional and operational culture of a transport entity has a strong bearing on recruitment and retention of personnel at all levels, and likely to be an important area for the committee's consideration.

Other modes of transport appear to be less affected than are road and rail, but this impression may be influenced by their relatively minor scale. There appear to be off-shore solutions to maintenance and training in the aviation and maritime industries, but there may be long-term disadvantages to such relance on foreign labour. For instance, the committee heard during its skill shortages inquiry in 2003 that the decline in Australia's merchant marine was resulting in a shortage of qualified port management personnel, including harbourmasters. Another instance is the flow-on effect for general aviation and smaller domestic carriers of off-shore aircraft maintenance.

The committee will be considering these issues, and others which will emerge during the course of the inquiry and which may not currently known or understood outside the industry.

The committee calls for submissions to be received by 31 January 2007. It is due to report to the Senate on the last sitting day in June 2007.  

Further information about the inquiry can be obtained from the Secretary on 02 6277 3520. Information on the inquiry, and submissions as they are received, will be posted on the website at:

https://www.aph.gov.au/Senate/committee/eet_ctte/transport_employment/index.htm

The committee expects to report to the Senate on June 2007.

For further information, contact:

Secretary
Senate Standing Committees on Education, Employment and Workplace Relations
PO Box 6100
Parliament House
Canberra ACT 2600
Australia

Phone: +61 2 6277 3520
Fax: +61 2 6277 5706
Email: eet.sen@aph.gov.au