The collective bargaining notification process was introduced on 1 January 2007.
Notification is a process under which parties which propose to engage in collective bargaining conduct may obtain immunity from legal action under the Trade Practices Act, if the conduct is in the public interest.
Any party to a collective bargaining arrangement can lodge a notification and can lodge a notification on behalf of other businesses that will be a party to the arrangement. Collective bargaining notifications may also be lodged by a nominated representative who is not a member of the collective bargaining group. For example, an industry association may lodge a notification on behalf of its members.
When a notification is lodged on behalf of other businesses who are party to the collective bargaining arrangement, the notification must clearly identify all of the businesses involved and show that they all consent to the lodging of the notification on their behalf.
To lodge a collective bargaining notification each party to the collective arrangement must expect that the total value of the transactions it will conduct with the target over a 12-month period under the arrangement will not be greater than $3 million (or higher amounts as set by regulations).
Provided the collective bargaining notification is valid, immunity from legal action for the notified collective bargaining arrangement begins at the conclusion of a statutory period.
Until 31 December 2008 the statutory period is 28 days from the day a valid notification is lodged. From 1 January 2009 the statutory period will be set at 14 days. The statutory period is referred to as 14(28) in publications and information pages relating to collective bargaining.
If the ACCC issues a draft objection notice within the 14(28) day period, immunity does not commence.
If a draft objection notice is issued after the 14(28) day period, protection from legal action does commence and continues until the revocation is complete.
If the ACCC subsequently issues a final objection notice, any immunity that was provided by the notification is removed 31 days after the date of the objection notice or on a later day specified by the ACCC.
Decisions made by the ACCC to revoke immunity can be reviewed by the Australian Competition Tribunal. Any immunity that might have been in place continues until the appeal process concludes.
