ACCC allows south-east Queensland collective bargaining arrangements to continue

The Australian Competition and Consumer Commission today granted interim authorisation* allowing Premium Milk to continue representing a group of south-east Queensland dairy farmers in their collective negotiations with Parmalat Australia Ltd.

"Interim authorisation will allow those dairy farmers who have been represented in collective negotiations by Premium since 2001, to continue bargaining the terms of their milk supply contracts, including pricing, with Parmalat while the ACCC considers an application to replace their soon to expire authorisation", ACCC Chairman, Mr Graeme Samuel, said today.

Premium's existing authorisation is due to expire on 30 June 2005 and it has sought re-authorisation until 1 July 2010. Interim authorisation will also allow the dairy farmers and Parmalat to continue to give effect to contracts already entered into under Premium's existing authorisation.

"Premium has argued that the existing collective bargaining arrangements, which are fully supported by Parmalat, have resulted in benefits for the dairy farmers including cost savings and giving farmers certainty to invest and improve their businesses.

"The ACCC considers that interim authorisation will provide certainty to the affected dairy farmers and Parmalat, so that they will be able to continue their negotiations without undue disruptions.  Submissions received from interested parties in relation to interim authorisation have not identified any substantial concerns with the arrangements and the decision by the ACCC simply maintains the status quo".

The ACCC is currently seeking further submissions from interested parties in relation to Premium's application for re-authorisation, 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 ACCC has the function, through the authorisation process, of adjudicating on certain anti-competitive practices that would otherwise breach the Trade Practices Act 1974. Authorisation provides immunity from court action, and is granted where the ACCC is satisfied that the practice delivers a net public benefit. Interim authorisation allows the parties to engage in the conduct prior to the ACCC considering the substantive merits of the application. The ACCC's decision in relation to interim authorisation should not be taken to be indicative of whether or not final authorisation will be granted by the ACCC.