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Transport industry calls out so-called 'sham contracting'

ABC Australia 06:55 AM UTC Tue February 10, 2026 Sports
Transport industry calls out so-called 'sham contracting'

BERITA BAHASA INDONESIA

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Topic:Road Transport Industry

The transport industry wants authorities to crackdown on the controversial practice known as "sham contracting".   (ABC Goldfields: Jarrod Lucas)

Western Roads Federation is calling for the creation of a taskforce to solve the increasing problem of "sham contracting".

"Sham contracting" is when trucking companies misuse rest bays as depots.

Main Roads says they do not have enforcement powers over the rest bays.

Link copiedShareShare articleWestern Australia's trucking industry has called itself out over the widespread misuse of roadside parking bays designed to manage fatigue and accused authorities of either being asleep at the wheel or "turning a blind eye".   

Industry groups like the Western Roads Federation say many trucking companies are misusing rest bays as depots, conducting roadside repairs and disposing of oil and tyres on the side of outback highways.  

An unhitched trailer in a parking bay near Kalgoorlie-Boulder. (ABC Goldfields: Jarrod Lucas)

Unhitched trailers of heavy vehicles are also being left seemingly abandoned for weeks on end.  

The practice dubbed "sham contracting" is considered widespread, but there has been a notable increase in WA's Goldfields and Midwest regions.  

The Western Roads Federation has joined the Transport Workers' Union to call for a multi-agency taskforce to address its concerns.

Unhitched trailers left in a parking bay near Geraldton. (ABC Midwest: Chloe Henville)

"This is a national problem. Broadly, it's referred to as sham contracting," the federation's chief executive Cam Dumesny said. 

"This is a tight margin industry, in some cases 3 to 5 per cent.  

"What you're seeing in places like Kalgoorlie and Geraldton, to get their costs down, operators are using the rest areas as depots so they don't have to lease a facility. 

"They've got no legal compliance, disposal of oil and tyres, so all of these things are going on and it's a complete misuse of the rest areas."

Cam Dumesny says the problem is widespread.   (ABC Perth: Julian Robins)

Main Roads WA said it does not have enforcement powers regarding how long a vehicle can remain in bays, which it says are intended to support driver fatigue management and road safety. 

A Main Roads spokesperson said the agency was working with local governments and WA Police to address concerns. 

Mr Dumesny said the problem was the result of "a fragmented regulatory system". 

"There is multiple agencies and what we need is a taskforce because each of them doing their own bit isn't working, we need a focused effort." 

WA Police did not respond to requests for comment. 

West Kalgoorlie-based heavy haulage contractor Jayson Penn said authorities were "turning a blind eye".    

Jayson Penn runs his family's third-generation transport business, Penns Cartage Contractors, which was established in 1969.   (ABC Goldfields: Jarrod Lucas)

"It's an absolute disgrace what's happening, and it's been allowed to happen by all the authorities who seem to be turning a blind eye and saying it's not our problem," he said.

"There's going to be a death on the road, and something needs to be done about it, because I'm putting my drivers into an unsafe work environment every day."

Road train trailers parked in bushland near Kalgoorlie-Boulder are a regular site. (ABC Goldfields: Jarrod Lucas)

Mr Penn said he had conducted his own vehicle checks and claimed he had found many trailers and road trains that were unregistered, raising concerns about insurance.  

"There are truck bays within a 40-kilometre radius of Kalgoorlie which you cannot get into anymore," he said.  

"If you have an oversized load you can't park, you have drivers coming in from other areas wanting their fatigue break and they can't park anywhere. 

"People are ringing me to park in my yard because they can't park anywhere else." 

Trucks parked up at a rest stop near Kalgoorlie-Boulder. (ABC Goldfields: Jarrod Lucas)

Geraldton truck driver Warren Blow was adamant out-of-town contractors were the main culprit. 

"It's pretty bad in Geraldton at the moment with bays being used as depots and service facilities," he said. 

"They're always full and so guys can't use them for a fatigue stop. It's really dangerous."

Topic:Government and Politics

Topic:Government and Politics

Road Transport Industry

Topic:Government and Politics

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