ACCC allows collective agreement between CSR Building Products Ltd and its owner-drivers

The Australian Competition and Consumer Commission has issued a final determination *authorising CSR Building Products Ltd and its owner drivers to collectively negotiate terms and conditions of their contracts.

CSR applied for two authorisations relating to two small groups of owner drivers in Brisbane. The first group, consisting of nine members, is involved in carting the raw materials used in the manufacture of bricks and pavers between CSR's quarries and its factories. The second group, which has 13 members, carts CSR's bricks and pavers to building sites in the Brisbane area.

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 the owner drivers with more effective input into their cartage contracts with CSR.

The ACCC also considers that any anti-competitive detriment that may flow from the proposed arrangements is likely to be minimal. The ACCC considers that the small size of the bargaining groups and the fact that negotiations will be limited to a single firm is likely to reduce the potential for anti competitive detriment to occur.

On balance, the ACCC is satisfied that the potential public benefits are likely to outweigh the minimal anti competitive detriments of the proposed arrangements.

The ACCC has granted authorisation to both applications until 30 June 2011.

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

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.