ACCC proposes to allow South Australian potato growers to collectively bargain
The Australian Competition and Consumer Commission has issued a draft decision proposing to authorise* South East Potato Growers Association members to collectively bargain the terms and conditions of their contracts with two potato processors, McCain Foods and Safries, ACCC Chairman, Mr Graeme Samuel, said today.
"The SEPGA has submitted that potato growers in the South Australian region are typically given standard form contracts by potato processors. The ACCC considers that collective bargaining by potato growers may allow them to have greater input into the terms and conditions of their contracts with potato processors, potentially leading to more efficient outcomes.
"The ACCC believes that the possible anti-competitive effect of the collective bargaining arrangement is limited as the proposed arrangement is completely voluntary for all parties. 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 processor on an individual basis.
"The ACCC has also granted interim authorisation to allow collective bargaining to commence between SEPGA members and McCain Foods and Safries for the 2008 supply year.
"The ACCC has issued this draft determination and granted interim authorisation in just over three weeks after receiving the SEPGA's application for authorisation. As part of the authorisation process, the ACCC consulted a number of interested parties. To issue the draft determination and undertake the consultation process in this short period of time demonstrates the ACCC's continued commitment to deal with collective bargaining matters expediently."
The ACCC is seeking submissions from interested parties in relation to its draft determination in this matter. Copies of the draft determination are available on the ACCC's website. Submissions can be made to: The General Manager, Adjudication Branch, Australian Competition and Consumer Commission, GPO Box 3131 Canberra ACT 2601. 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.
