PASSENGER TRANSPORT LOCAL GOVERNMENT ORGANISING REPORT

INDUSTRY LEADERS CONFERENCE 2014

1 FOREWORD

I believe all transport workers’ should receive a fair days pay for a fair days work in a safe environment based on fairness and respect.

To achieve this we must build and maintain our strength - in yards, in boardrooms, industrially and politically. The strength of this union isn’t any individual - the strength of this union is every member working together to achieve this collective goal.

The Industry Leaders Conference (ILC) provided a unique opportunity for our industry leading delegates from across our industries and across Queensland to work together and develop a long-term plan to improve your life.

To help achieve this outcome this report was complied to help frame conversation and underpin planning in the industry sessions. I trust you will find some interesting information within these pages, not only the state of your industry, but the broader transport industry.

You will also find the outcomes of the ILC as determined by your industry leaders working in partnership with your TWU Officials, with an outlook to build strength and one powerful voice for TWU members.

This year’s successful Industry Leaders Conference was built on the success of the first ever two-day TWU Queensland Delegates conference held in 2012 in Gatton. A lot has changed since then, which is why it is important to work together to identify the challenges we face and establish a long term plan to improve the conditions of transport workers’ across Queensland.

Every member and delegate is important to the Transport Workers Union. I trust you will will find interesting information in this report, and thank you again to all those whom took part in the conference.

In unity,

Peter Biagini Queensland Branch Secretary Transport Workers’ Union of Australia

2 INDUSTRY : PASSENGER TRANSPORT

There are 49,476 employees working in the combined The published budget for the Queensland Department of urban and long distance sectors of the passenger Transport in 2010-11 was $3.7 billion for operating and $3.6 vehicle industry across Australia. billion for capital to deliver a safe, efficient and integrated transport system for Queensland. In Queensland companies, that relates to: • Over 210 in Veolia Over the last three years, annual funding for buses increased • Over 1,300 staff in Transit Australia Group from $475 million to $580 million. • Over 1,500 nationwide at Hornibrook • Over 170 at Logan City. The Australian bus and coach industry is worth more than $10 billion a year to the Australian economy.

KEY OPERATORS IN QUEENSLAND Operator Owners Number Number Number Contract Drivers Buses * services per Value $ week*** mil EST ** Hornibrook ATE Mountjoy 98 61 2164 $14.3 Family Bus Qld Pulitano Family 264 177 6392 $33.74 Transdev Transdev France 245 117 3849 $26.5 Surfside Calabro Family 648 306 14669 $79.28 Sunbus Calabro Family 204 90 6023 $34.3 Sunshine Clarks Logan Clark Family 251 123 4874 $29.5 City

*Refers to TransLink provided buses. ** esRmates based on 2013 financial year.*** includes school runs

PROFITABILITY The Australian passenger transport industry is dominated by domestic and international airlines which account for close to 70% of all passenger transport in Australia. Buses have the second highest market share (15%).

• long distance bus transport - $122.6 million • urban bus transport - $364.2 million • combined - $486.8 million

THE FUTURE: WHAT THE FUTURE HOLDS: • Urban bus revenue predicted to climb by an annual • Ageing Work Force compound rate of 3.5% over the next five years to be • Contestability worth $6.5 billion in 2018-19 • Reduction in the number of operators • Over the past 10 years, Australians have slowly • Massive cost reductions abandoned their cars in favour of public transport, • Increased attacks on drivers and passengers despite steadily increasing congestion and petrol • Reduced running times and increasing pressures on costs. In the next five years, population growth, drivers. employment growth and rising urban density are expected to create a tipping point in demand for industry services.

3 INDUSTRY : PASSENGER TRANSPORT

LONG DISTANCE SECTOR Long distance sector of the industry value added, which Using the ratios below, this means that per employee the measures the industry’s contribution to the overall revenue a company generates is on average $91,000. economy, is forecast to grow at a compound annual rate However in the long distance sector the average wage in of 0.8% over the 10 years through 2018-19. 2013/2014 is $17,223.5 which is lower than the poverty line. URBAN SECTOR: KEY RATIOS IVA/ IMPORTS/ EXPORTS/ REVENUE WAGES/ EMPLOYEES AVERAGE SHARE REVENUE DEMAND REVENUE PER REVENUE PER EST. WAGE OF THE (%) (%) (%) EMPLOYEE (%) ($) ECONOMY ($’000) (%) 2004-05 62.64 N/A N/A 163.48 49.57 5.99 81,039.09 0.19 2005-06 61.44 N/A N/A 163.58 47.49 6.27 77,677.44 0.19 2006-07 56.12 N/A N/A 166.91 44.81 7.23 74,784.03 0.17 2007-08 57.24 N/A N/A 159.75 45.36 7.92 72,467.49 0.18 2008-09 55.62 N/A N/A 152.52 44.28 9.13 67,531.30 0.18 2009-10 53.97 N/A N/A 160.54 43.94 8.75 70,533.95 0.18 2010-11 53.38 N/A N/A 169.32 42.51 8.74 71,977.33 0.17 2011-12 54.29 N/A N/A 173.13 43.42 9.42 75,173.87 0.18 2012-13 53.55 N/A N/A 177.67 42.58 10.30 75,645.28 0.19 2013-14 52.63 N/A N/A 182.18 41.54 11.18 75,681.77 0.19 2014-15 52.19 N/A N/A 184.64 40.99 11.29 75,685.83 0.19 2015-16 51.50 N/A N/A 188.04 40.19 11.40 75,581.43 0.18 2016-17 50.65 N/A N/A 192.38 39.23 11.56 75,467.97 0.19 2017-18 50.85 N/A N/A 191.51 39.31 11.76 75,280.35 0.19 2018-19 50.00 N/A N/A 194.30 38.69 11.91 75,165.79 0.19 SECTOR RANK 10/31 N/A N/A 26/31 5/31 18/31 14/31 7/31 ECONOMY RANK 151/684 N/A N/A 506/684 97/684 218/684 189/684 126/684

URBAN SECTOR In the urban sector, Industry Life Cycle Industry value Conversely in the urban sector (which is predicted to added (IVA), which measures the industry’s contribution grow in the next ten years) the revenue generated per to the overall economy, is forecast to grow at a employee is $182,000 with the average wage being compound annual rate of 3.3% over the 10 years through $75,681.77. 2018-19. LONG DISTANCE SECTOR: KEY RATIOS IVA/ IMPORTS/ EXPORTS/ REVENUE WAGES/ EMPLOYEES AVERAGE SHARE REVENUE DEMAND REVENUE PER REVENUE PER EST. WAGE OF THE (%) (%) (%) EMPLOYEE (%) ($) ECONOMY ($’000) (%) 2004-05 27.31 N/A N/A 111.12 14.20 15.60 15,780.73 0.06 2005-06 29.20 N/A N/A 102.42 15.50 15.49 15,874.26 0.06 2006-07 30.48 N/A N/A 91.04 16.10 15.24 14,656.34 0.05 2007-08 31.37 N/A N/A 97.75 17.80 15.60 17,400.24 0.05 2008-09 30.13 N/A N/A 94.34 17.30 14.97 16.318.39 0.05 2009-10 31.27 N/A N/A 98.43 17.84 14.77 17,561.93 0.04 2010-11 31.12 N/A N/A 96.98 17.64 14.78 17,109.08 0.04 2011-12 30.68 N/A N/A 96.79 17.73 14.59 17,158.97 0.04 2012-13 30.98 N/A N/A 96.60 17.92 14.28 17,307.39 0.04 2013-14 31.84 N/A N/A 91.92 18.74 14.35 17,223.54 0.04 2014-15 32.39 N/A N/A 91.18 18.93 14.41 17,257.51 0.04 2015-16 32.09 N/A N/A 92.17 18.79 14.60 17,318.75 0.03 2016-17 32.21 N/A N/A 92.25 18.91 14.82 17,443.97 0.03 2017-18 31.77 N/A N/A 92.34 18.97 14.99 17,519.91 0.03 2018-19 31.88 N/A N/A 92.43 19.10 15.11 17,654.95 0.03 SECTOR RANK 24/31 N/A N/A 30/31 17/31 14/31 31/31 26/31 ECONOMY RANK 373/685 N/A N/A 637/685 339/685 187/685 668/685 395/685 4 CONGESTION, and what it means for the future of the passenger vehicle sector.

By 2020, Congestion is predicted to cost Brisbane $3.0 billion dollars. A 10 per cent shift to bus patronage from cars can and will generate: • A reduction in passenger kilometres travelled by car of 2.1 billion per year • A reduction in congestion worth almost $650 million a year to the Australian economy • A reduction in the cost of traffic accidents of more than $100 million • Savings to the household of $176 million in fuel costs • A reduction in the health related costs of air pollution of $20 million a year.

2005 ESTIMATE 2020 ESTIMATE 2005-2020 GROWTH SYDNEY $3.5 billion $7.8 Billion 123% MELBOURNE $3.0 billion $6.1 billion 103% BRISBANE $1.2 billion $3.0 billion 150% PERTH $900 million $2.1 billion 133% ADELAIDE $600 million $1.1 billion 133% CANBERRA $110 million $200 million 82% HOBART $50 million $70 million 40% DARWIN $18 million $35 million 94% TOTAL $9.4 billion $20.4 billion 117%

MAJOR THREATS TO PASSENGER TRANSPORT: • In 2013/14 long distance bus services struggled to establish a competitive advantage based on price, speed, or convenience over other modes of transport - passenger vehicles, rail, and aviation • Industry dominated in numbers but not in revenue by small businesses and non-employers which has given major players that sub-contract a lot of market power. This has decreased overall industry profit • $40 million, 80 service changes and nine route cuts to Translink’s bus network by Newman Government.

The Queensland Government has committed to building a new 5.4km Bus and Train (BaT) tunnel for Brisbane, linking Dutton Park to Bowen Hills with stations at Woolloongabba and George Street (City) at a cost of $5 billion.

I’M PASSIONATE ABOUT SAFETY AND THE KEY TO “A SAFE AND EFFICIENT PUBLIC TRANSPORT SYSTEM IS THROUGH THE PROTECTION OF OUR DRIVERS - AFTER ALL, THEY CARRY OUR MOST IMPORTANT CARGO, TWU PASSENGER TRANSPORT COORDINATOR ” BOB GIDDENS.

WHERE TO FROM HERE? • We need to consolidate and build strength • Industry, QBIC and Unions, need to work together to force the Government to level the playing field for all • Give our current service providers the ability to tender on an equal footing • Or equalise wages across QLD and everybody tenders at that wage rate.

5 INDUSTRY : PASSENGER TRANSPORT

THE FUTURE COMPANY ANALYSIS Long distance revenue has continued on a long term VEOLIA/TRANSDEV decline, falling at a compound rate of 2.9% annually. In Queensland, Veolia (Transdev Queensland) Long distance sector dominated in numbers but not in has more than 210 employees. Worldwide, revenue by small businesses and non-employers which Veolia/Transdev have more than 110,000 has given major players that sub-contract a lot of market employees spanning 28 countries. power. This has decreased overall industry profit. VEOLIA FACTS AND FIGURES Forecast to stabilise in the next five years as the industry focuses on core markets and adjusts to the loss of NUMBER OF STAFF passengers to other modes of transport that occurred in OVER 225 the past decade.

Urban bus revenue predicted to climb by an annual VEHICLE KILOMETRES compound rate of 3.5% over the next five years to be 6.9 MILLION PER ANNUM worth 6.5 billion in 2018-19. NUMBER OF VEHICLES Over the past 10 years, Australians have slowly abandoned their cars in favour of public transport, despite steadily MORE THAN 150 increasing congestion and petrol costs. In the next five years, population growth, employment growth and rising PASSENGERS urban density are expected to create a tipping point in 3.2 MILLION PER ANNUM demand for industry services. WEEKLY SERVICES OVER 4,200

THE QUEENSLAND GOVERNMENT IS “RESPONSIBLE FOR PASSENGER TRANSPORT - YET THEY CONTINUE TO TURN A BLIND EYE. MORE NEEDS TO BE DONE TO PROTECT OUR COMMUNITIES, TWU BRANCH SECRETARY PETER BIAGINI. ”

6 INDUSTRY : LOCAL GOVERNMENT

LOCAL GOVERNMENT QUEENSLAND HEALTH

Employees across Queensland’s 73 Local Government and 20 State Government Department levels have all faced continuous attacks on their jobs, job security, rights, wages and conditions since the Newman Government took power just two years ago.

Leading these attacks was the decision by the Newman Government to ban all government Despite all these attacks departments, including councils, to allow employees to pay their union dues via payroll. The on jobs, services, final cut-off date for payroll deductions is 01 July 2014. workers’ rights and conditions, in early 2014 In attempt to weaken unions, the Newman Government made the decision in hope Premier Newman employees wont change to another payment type leaving government workers vulnerable, received a 21.8% pay while also undermining the capacity of the historically, most effective organisation for rise (or $70,000), taking achieving positive outcomes for working Australians. his annual salary to $380,000. Contracting out jobs and a push for just one award to cover all council employees are other avenues employees’ rights and conditions are being attacked. Local Government employees face the reality of being allowed to negotiate on limited components of their agreement.

While the battles will continue for our Local Government and Queensland Health members, there is a bright future. TWU members provide Queensland communities with much needed services and with recent industrial wins and maintained strength though our payroll conversion, together there is hope.

FACTS AND FIGURES LOCAL GOVERNMENT REFORMS

• There are now 73 local governments in QLD • Cessation of payroll deductions • Employing over 32,700 staff covered by awards • Award modernization • There are 31 Local Government awards in operation • Role rationalization • Newman Government wants one award covering all • Redundancies local government workers. • Operational reforms that will impact on workers protection and job security.

SUMMARY Once the award modernisation is finalised in late August 2014: • It will cover all Local Government Employees and all Council areas • It will impact on a large number of employees • Negotiations can recommence • It will become the basis for all future EBAs.

7 LOOKING AHEAD: ILC OUTCOMES

OUR PLEDGE & OUR PLAN IS TO:

Campaign to win, building one powerful voice for TWU members.

RESOLUTION “We, delegates to the TWU Industry Leaders Conference, declare our full support for the plan to fight to make our workplaces, our communities and our governments work again for transport workers and their families by pledge to fight to win….”

IN OUR WORKPLACES AND INDUSTRIES: • + 70% density across our industries, areas of coverage • Common Industry Claims • Common Bargaining Rounds and Expiration Dates • Improved TWU Delegates Rights, Leave Provisions and Access • Increased Superannuation Contributions above the 9.25% up to 15% • 4% and plus wages increases per annum • No cuts in terms and conditions.

IN OUR COMMUNITIES AND FROM OUR GOVERNMENTS: • Real community and political recognition of the value and contribution of transport workers to our society, economy and community – we are not just truck drivers, bus drivers, forklift drivers, or porters etc – we are transport workers and we Carry Australia. Without us, Queensland Stops! • Safe Rates • Proper Protection from Assaults, Abuse & Violence. We are sick and tidy of being treated as second class citizens and demand equality. That offenders against public transport workers and treated exactly the same as offenders against police and ambulance officers • Portable Long Service Leave so that transport workers can enjoy the benefits of the long service leave act that the rest of our community takes for granted • Fair competition in public tendering that takes wages and safety out of competition and ensures industry best practice is the starting point and that our Government’s don’t promote a race to the bottom.

8 NATIONAL 2035 STRATEGIC VISION:

CORE PURPOSE To give Transport Workers a powerful voice.

CORE VALUES • Principled in building and exercising worker power • Committed to earning and keeping the trust of members • Innovative – continually seeking a better way • Driven to succeed.

ENVISIONED FUTURE By 2035, the TWU will achieve a membership density of 70% where the members lead in recruiting, organising and mobilising in support of their objectives.

“The Transport Workers Union of Australia exists to give transport workers a powerful voice in support of social and economic justice.

We are relentless in the pursuit of building and exercising worker power, guided by clear, strong principles. We are committed to earning and keeping our members’ trust and continually seeking a better way.

We believe workers can win when they stand together. We will unite transport workers in order to raise standards for themselves, their families and the community.” GOAL Achieve the TWU vision: 70% density characterised by member-led recruitment, organising & mobilisation.

OBJECTIVES Organise the Supply Chain in Retail & Aviation.

CORE STRATEGIES • Oranising to scale • Dedicated Resources • Leveraging ‘Principal Employers’ • Safe Rates/Safe Skies.

9 ‘THE TRANSPORT WORKERS’ UNION HAS BEEN STANDING UP FOR WORKERS IN THE TRANSPORT INDUSTRY FOR OVER 100 YEARS’

YOUR TRANSPORT WORKERS’ UNION IS PROUDLY SUPPORTED BY:

10 ORGANISING REPORT

A message from your Assistant Branch Secretary Scott Connolly

The future of your TWU is about every member standing up and working together because you are the union.

Together we can face down the challenges and build a strong union for you, your mates and your family.

It was a big task to come together and map out the future of our industry. But the hard work of our leaders, and that of all our members and delegates across Queensland being active and working together, shows just how much you are the backbone of this union.

The ILC proved an interesting conference and it was positive to see everyone contribute in the forums and industry sessions.

It was an important exercise. The knowledge and experiences of our members and delegates helped identify not only how your industry operates, but how we can raise standards and conditions for a stronger and fairer future.

Organising for Power is not just a phrase but a mantra to live by in the union movement. Organising for power is about working together with you and your mates and your union to gain respect for the way in which you contribute to your community and help drive the economy and improve your working environment.

I encourage you to use this report to discover what is known, what was discussed, and how together, we will build on the strategies discussed at the ILC and take this union into the future.

The Transport Workers’ Union is not just a group of officials – it’s so much more. You are the union. Your strength in numbers, your mates and your families all make up who we are and what we have, and are key to what we can achieve.

Sincerely,

Scott Connolly Assistant Queensland Branch Secretary Transport Workers’ Union of Australia

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