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International examples of Safe Rates systems
Working paper: Delivering ‘Safe Rates’ in Today’s Road Transport Supply Chains
The demands of effective business controllers at the apex of the supply chain contribute to hazardous workplace practices and poor road safety outcomes. The commercial decisions of these supply chain actors can determine the parameters within which matters such as driver remuneration, delivery schedule and working hours are determined. In turn, those matters operate to increase the pressure placed on workers to engage in hazardous work practices which lead to poor safety outcomes. The objective of the Safe Rates model is to ensure the health/safety of transport workers and the general travelling public by imposing mandatory enforceable legal obligations upon all business firms operating throughout road transport supply chains. This document explores the key features of the Safe Rates model and provides a number of international examples of how Safe Rates have been introduced in various jurisdictions today.
Safe Rates in South Korea
A system of ‘Safe Trucking Freight Rates’ has been in effect in South Korea since January 2020. The goal of this system is to guarantee fair rates of pay for truck drivers and thus alleviate overwork, speeding and overloading – the main causes of accidents – and ensure the safety of not only truck drivers, but also the wider public. The Survey on the Impact of the Korean Safe Rates System was carried out in recognition of the need to assess the system’s effectiveness, any problems with implementation, and to develop policy proposals for its sustainability.