ACCC proposes to allow Victorian potato growers to collectively bargain
The Australian Competition and Consumer Commission has issued a draft decision proposing to authorise* Victorian Potato Grower Council members to collectively bargain the terms and conditions of their contracts with potato buyers, including processors and wholesalers, ACCC Chairman, Mr Graeme Samuel, said today.
"The ACCC considers that collective bargaining by potato growers will result in a number of public benefits. In particular, it is likely to provide growers with greater input into their contract terms and conditions leading to more efficient outcomes.
"The ACCC believes that the possible anti-competitive effect of the collective bargaining arrangement is limited given the nature of the proposed arrangement and the structure of the industry.
"Allowing potato growers to collectively bargain does not reduce the ability of individual growers to negotiate variations on collectively negotiated contracts or to negotiate with a potato buyer on an individual basis outside of the collective arrangement.
"The ACCC has also granted interim authorisation to allow collective bargaining to commence between VPGC members and McCain Foods (Aust) Pty Ltd for the 2008 supply year.
"The ACCC has issued this draft determination and granted interim authorisation one month after receiving the VPGC's application for authorisation. This outcome demonstrates the ACCC's continued commitment to deal with collective bargaining matters quickly.
"This proposed authorisation and the recently introduced Horticulture Code provide greater certainty for Victorian potato growers and buyers."
The ACCC is seeking submission from interested parties in relation to its draft determination in this matter. Copies of the draft determination will be available on the ACCC's website. 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 to adjudication@accc.gov.au.
*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 agreement but can only be granted where the ACCC is satisfied that the public benefit flowing from the conduct outweighs any public detriment.
