Taxi industry inquiry
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- Driver pay and conditions
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Final recommendationsDriver entry and training5.1 The existing taxi and hire car driver accreditation scheme should be redeveloped to address policy, equity, efficiency and resourcing issues. An adapted model should identify safety as the prime consideration and be based on identifying key disqualifying offences in legislation, but should also be structured in a way that appropriately provides for the use of discretion by the Taxi Services Commission and for use of the discretion to be transparent. It should provide for internal review mechanisms that are separate from the operational decision making of the Commission, as well as for appeals against decisions of the Commission to be made to the Victorian Civil and Administrative Tribunal (VCAT). 5.2 The administration of bus driver and driver instructor accreditation should be transferred to a more relevant Government agency. If this is not done the Taxi Services Commission should be able to recoup fees for providing these accreditation services from the agencies concerned. 5.3 Taxi and Pre-Booked Only driver entry requirements should be adjusted to remove the ability of applicants to undertake an Independent Driving Assessment in lieu of having held a Victorian Driver Licence for 12 months. The requirement should be for all applicants for driver accreditation to have held a Victorian Driver Licence for a minimum six month period. An equivalent interstate or New Zealand licence held for six months before qualifying for a Victorian licence should also meet this requirement. Further, the six month restriction relates to a full licence, not a probationary licence. Persons from overseas on temporary or permanent visas should be required to provide evidence of having held their Victorian licence and been a resident in Victoria or interstate for a minimum of six months. 5.4 Entry level examination of new drivers should be undertaken independently of Registered Training Organisations and Authorised Taxi Organisations. New independent Knowledge exams for the Metropolitan and Urban zones should be developed and administered directly by the Taxi Services Commission or under contract to a third party. The independent examination should be compulsory for all new taxi drivers intending to drive in the Metropolitan and Urban zones, as a mandatory step before obtaining driver accreditation. This requirement replaces the current compulsory requirement for applicants to complete the Course in Taxi Driving. Further, from 1 July 2014, all Metropolitan and Urban zone taxi drivers who have driven for less than five years and who are seeking to renew their driver accreditation should also be required to pass or have passed relevant sections of the Knowledge exam for their area before their accreditation renewal is issued. 5.5 The Knowledge exams should assess applicants against the range of proficiencies outlined in the current Course in Taxi Driving, and should be developed in consultation with the taxi industry and other key stakeholders, such as the disability community and advocacy agencies. The exam should include a combination of online and on-site testing and practical driving and customer service components. 5.6 Registered Training Organisations, the Taxi Services Commission, disability advocacy groups and service users should work together to enhance the current content and delivery of disability awareness training. This should occur within the context of the Provide Taxi-cab Customer Service unit of the Course in Taxi Driving to ensure that training remains relevant and that new drivers are provided with exposure to and awareness of the needs of a wide range of customers. The Knowledge exams should include assessment of knowledge and skills in disability awareness. 5.7 Drivers who intend to drive a Wheelchair Accessible Taxi (WAT) and/or a taxi capable of transporting a passenger with a wheelchair should continue to be required to undertake the stand-alone unit of the taxi driver training course, Provide Wheelchair Accessible Taxi Services to Passengers with Disabilities. Assessment of this unit should be conducted through an independent examination, in the same way as the Knowledge exam. 5.8 The inquiry considers subsidising WAT driver training to be unnecessary given the range of other incentives (for example the lifting fee and high occupancy fee) in place to ensure there are sufficient numbers of WAT drivers, and it should be removed within a year. 5.9 Regional and Country zone taxi drivers should not be required to undertake a Knowledge exam. However, permit holders in these zones should be required to ensure the adequate training of their drivers either through delivery of their own induction and training programs, by the practice of ‘mentoring’ new drivers and/or by choosing to send drivers to all or part of a taxi driver training course. 5.10 The practice of the industry mentoring new drivers ‘on the job’, which currently occurs predominantly in country Victoria, should be encouraged across the industry. The Taxi Services Commission should develop appropriate guidelines, in conjunction with the industry, for managing in-car training (for example, informing customers of the presence of a second driver who is providing in-car mentoring at the time of booking or when a customer is selecting a taxi from a rank). Driver pay and conditions5.11 Bailment agreements should be replaced with a fairer Driver Agreement for drivers who are engaged by permit holders to drive their vehicles. New legislation should be passed to require all permit holders to engage taxi drivers under the new Driver Agreement (unless the drivers are otherwise engaged as employees). The Driver Agreement should be drafted recognising that the parties to the agreement do not have equal bargaining power and should provide a better revenue sharing arrangement for drivers by establishing a minimum percentage of 55 per cent of the fare box revenue to be provided to the driver. 5.12 Provisions that should be included in the new Driver Agreement include: That the driver must be paid a share of the fare box of no less than 55 per cent, excluding lifting fees and, if relevant, surcharges paid to the driver That the driver must be allowed to take up to four weeks unpaid leave where s/he has worked regularly for 12 months or more for the permit holder That the permit holder must maintain a third party property insurance policy. The permit holder will be required to indemnify his or her driver/s in relation to any vehicle damage (including to the taxi) arising out of the use of the permit holder’s taxi. Any excess payable under an insurance policy for a claim involving a permit holder’s vehicle should be paid by the permit holder, unless the driver has been wilfully negligent (refer also to Recommendation 5.21). The service standards with which the driver must comply That the operator is responsible for all vehicle related operating and maintenance costs, including fuel The basis on which either party may end the agreement That either party can raise a concern about specific application of the Agreement for advice by the Taxi Services Commission. In the event the matter is not resolved, the Commission can refer the parties to the Victorian Small Business Commissioner (VSBC) or to VCAT. 5.13 Permit holders and drivers should be allowed to reach an alternative agreement on payment rates (such as minimum hourly rates) subject to the driver being no worse off. This means that drivers could receive the greater of a minimum hourly rate or the minimum percentage of the fare box revenue specified in the Driver Agreement. 5.14 The Taxi Services Commission should be able to bring proceedings before VCAT or a court to enforce the terms of a Driver Agreement. 5.15 The Taxi Services Commission should undertake a review in year five of the reform implementation program to examine the continuing necessity of the Driver Agreement. The review should assess the adoption of reforms by industry and the impact of these measures on driver pay and conditions. The review should specifically consider the extent and effectiveness of the use of the Driver Agreement as compared with other employment arrangements, as well as growth in numbers of owner-drivers and indicators of industry retention of drivers. If the reform measures have not sufficiently improved driver pay and conditions, the Government could consider the further step of requiring all drivers to be engaged under a written employment contract. 5.16 The Victorian Government should amend the Accident Compensation Act 1985 to make clear that a taxi driver engaged under a Driver Agreement is deemed to be a worker for the purposes of the Act and the Accident Compensation (Workcover Insurance) Act 1993. WorkSafe Victoria should implement strategies to better inform industry participants about their rights and obligations under these Acts. 5.17 Through legislative amendment, the Victorian Government should put beyond doubt that taxi drivers are owed a general duty of care by any person that has engaged them in their business. WorkSafe Victoria and transport safety regulators should raise the awareness of permit holders and drivers of their rights and responsibilities and take enforcement action as appropriate to provide the necessary case law that makes clear the Courts’ position on this. 5.18 The Taxi Services Commission should provide guidance to drivers on their rights in relation to workers compensation insurance, occupational health and safety, crimes compensation and other statutory protections. 5.19 Consumer Affairs Victoria (CAV) should ensure that taxi clubs comply with the provisions of the Associations Incorporation Act 1981, when they are registered under the Act. The Taxi Services Commission should liaise with CAV in relation to the regulation of taxi clubs under the Act and other general consumer legislation. In addition, CAV should monitor clubs that offer insurance-like products for compliance with the conduct provisions of the Australian Consumer Law, particularly those provisions relating to misleading or deceptive conduct. 5.20 The existing Customer Charter for Victorian Taxi Services, introduced in 2004 in relation to taxi drivers and their relationship with customers, should be withdrawn and a new revamped charter introduced. The new charter should take into account best practice in relation to customer charters and the recommendations of the inquiry around safety and service standards for passengers and drivers, community perceptions and the responsibilities of each party. The Taxi Services Commission should work with taxi drivers, the industry and consumer groups, including consumers with a disability, to put this into effect.
Be issued by a corporation authorised under the Insurance Act 1973 (Cth) to carry on an insurance business, and Provide sufficient cover in the opinion of the Taxi Services Commission. Legislation should require a permit holder to indemnify his or her driver/s in relation to any vehicle damage (including to the taxi) arising out of the use of the permit holder’s taxi. Any excess payable under an insurance policy for a claim involving an operator’s vehicle should be paid by the permit holder, unless the driver has been wilfully negligent. 5.22 The Taxi Services Commission should ensure its communications with drivers recognises that many drivers come from non-English speaking backgrounds and have difficulty with complex written English documents.
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