ACCC allows citrus growers to collectively bargain
The ACCC has allowed collective bargaining notifications* lodged by three Queensland citrus growers to stand, ACCC Chairman, Mr Graeme Samuel, said today.
"Three Queensland citrus growers known as Abbotsleigh, Dermark and Bayntun propose to collectively negotiate the price and quantity of their supply of citrus fruit to Woolworths Limited and IGA Distribution Limited.
"The ACCC considers that the proposed collective bargaining arrangement may enable the growers to supply supermarkets directly and more efficiently than is possible individually. There are a number of features of the arrangement which limit the potential for anti-competitive impact including the respective bargaining positions of the growers and the supermarkets. Additionally, the arrangement impacts a limited section of the industry, is voluntary and does not involve potential boycotts."
These are the first notifications lodged under the collective bargaining notification process that was introduced on 1 January 2007. As intended, the process has offered a streamlined approach with the ACCC assessment being released in just over three weeks.
Protection afforded by the notifications will begin on 28 August 2007 and will last for three years. As with any notification, the ACCC may review these notifications at a later stage should concerns arise.
The assessment of the notifications will be available from the ACCC's website.
* Small business collective bargaining refers to two or more competitors collectively negotiating terms and conditions with a supplier or customer. Without protection, it can raise concerns under the competition provisions of the Trade Practices Act 1974. Businesses can obtain protection from legal action under the Act for a small business collective bargaining arrangement by lodging a notification with the ACCC. Provided the ACCC does not object to the notified arrangement, protection commences 28 days after lodgement. The ACCC may object to a collective bargaining notification if it is satisfied that the proposed collective bargaining arrangement is not in the public interest (and in some cases, that the notified arrangement will substantially lessen competition).
