ACCC proposes to allow WA TAB Agents to collectively bargain with Racing and Wagering Western Australia

The Australian Competition and Consumer Commission has issued a draft decision proposing to authorise* the WA TAB Agents' Association Inc. to collectively bargain on behalf of member agents with Racing and Wagering Western Australia, ACCC Chairman, Mr Graeme Samuel announced today.

The WA TAB Agents' Association applied for authorisation to bargain collectively on behalf of members on the terms and conditions of the provision of services by members to RWWA.

"The ACCC sees a benefit in allowing TAB agents in Western Australia, most of whom are small businesses, to collectively bargain with RWWA.

"The ACCC considers that the proposed arrangements are likely to result in a small benefit to the public. In particular, the ACCC considers that the proposed collective bargaining arrangements will provide a greater opportunity for TAB agents, through their Association, to achieve more efficient commercial outcomes.

"Additionally, the ACCC considers that TAB agents are likely to pass on, at least some, benefits of any more favourable deal negotiated with RWWA as a result of bargaining collectively, in the form of improvements in the level of service provided by TAB agents to consumers.

"The ACCC also considers that any detriment that may follow from the proposed collective bargaining arrangements is likely to be negligible. In particular, the arrangements will not affect the price of wagering services to the public as these prices are regulated by state government legislation".

The ACCC notes that the grant of authorisation does not compel TAB agents or RWWA to participate in the collective bargaining process proposed by the WA TAB Agents' Association.

The ACCC proposes to grant authorisation until 30 June 2011.

Copies of the draft determination are available on the ACCC's website.

The ACCC is currently seeking submissions from interested parties in relation to its draft determination in this matter, submissions can be made to: The General Manager, Adjudication Branch, Australian Competition and Consumer Commission, PO Box 1199, DICKSON, ACT, 2602.

Submissions can also be lodged by email at adjudication@accc.gov.au.

Background

* The Trade Practices Act 1974 prohibits certain forms of anti-competitive agreements, including agreements between competitors that limit their ability to deal with whom they choose or on the terms they choose (including price). Authorisation provides immunity from court action under the Act arising from such agreements but can only be granted where the ACCC is satisfied that the public benefit flowing from the conduct outweighs any public detriment.