From 1 July 2014, there will be a range of conditions that will automatically apply to any agreement where a driver takes possession of an operator's taxi-cab, even if the conditions are not included in a written agreement between an operator and driver.

Agreements may contain an unlimited range of other conditions as agreed to by both parties, so long as they do not act contrary to or limit the effect of the implied conditions.

The implied conditions relate to:

     -    The driver/operator farebox split - requiring that this be 55% of gross fares retained by the driver
     -    Maintenance costs
     -    Indemnity and insurance
     -    Dispute resolution
     -    Leave entitlements
     -    Termination of agreements
     -    Bonds

The VTA has made a submission in response to the TSC's Regulatory Impact Statement regarding the driver agreement implied conditions.  Read it here.

These implied conditions have been written assuming that the bargaining power of operators is out of balance with that of drivers.  The reality is that bargaining power in any labour market is determined by the supply of available labour in relation to the demand for it. The market for taxi drivers is no different. Even a superficial analysis will show that over the last 3-4 years the bargaining position of taxi drivers has improved as a result of a shrinking in supply.

The VTA's position is that regardless of whether you accept this argument, the shift to a 45/55 operator/driver split of the fare box is unnecessary and will needlessly inflate fares for customers.  Once implemented, 45 per cent will need to cover what 50 per cent currently covers for operators, and at present that 50 per cent is insufficient. The VTA's view remains that a fair outcome can be achieved with a 50/50 split and a properly adjusted fare.

The VTA is particularly keen to see issues with insurance that have plagued the industry for many years resolved to the benefit of the industry as a whole.

Once the implied conditions are finalised, the VTA will redevelop current model bailment agreement for use in line with the new requirements.