ACCC allows collective negotiations at Port Botany
The Australian Competition and Consumer Commission has issued a final determination authorising* the Container Logistics Action Group to engage in collective negotiations with the stevedores at Port Botany, ACCC Chairman, Mr Graeme Samuel said today.
CLAG is a group of container carriers, customs brokers and freight forwarders involved in the transportation of containers to and from Port Botany. The authorisation will enable its members to collectively negotiate with the stevedores on the terms of access to the Port Botany container terminals. Other matters for negotiation include the price of a number of services supplied by the stevedores, such as container washing and storage.
"The ACCC notes that there is a significant imbalance of negotiating power between stevedores and container carriers, arising from the features of the industry", he said.
"The ACCC is satisfied that the proposed arrangements are likely to result in a net benefit to the public. In particular, the arrangements will increase the flow of information and give transport providers a greater opportunity to provide input into dealings with the stevedores. The ACCC considers that this is likely to result in more efficient outcomes for the import/export supply chains".
After assessing CLAG's proposal, the ACCC's view is that any anti-competitive detriment which may arise from the conduct is likely to be minimal.
"The ACCC notes that the arrangements are voluntary. The authorisation does not compel CLAG members or the individual stevedores to participate in the collective bargaining discussions".
The authorisation has been granted for a period of five years. Copies of the final determination will be available on the ACCC's website.
*Authorisation provides immunity from court action for conduct that might otherwise breach the competition provisions of the Trade Practices Act 1974. Authorisation is granted where the ACCC is satisfied that the practice delivers a net public benefit. In considering a request for authorisation the ACCC conducts a comprehensive public consultation process.
