ACCC allows SA potato growers to collectively bargain
The Australian Competition and Consumer Commission has issued a final determination authorising* the South East Potato Growers Association to collectively bargain on behalf of its current and future members the terms and conditions of their contracts with two potato processors, McCain Foods and Safries.
The ACCC is satisfied that the collective bargaining arrangements are likely to result in a number of public benefits.
"In particular, the ACCC considers that collective bargaining by potato growers may provide the growers with a greater opportunity to have input into contract terms and conditions, potentially leading to more efficient outcomes," ACCC Chairman, Mr Graeme Samuel, said today. "In addition, the collective bargaining arrangements may result in transaction cost savings."
The ACCC believes that the potential for the arrangements to result in anti-competitive detriment is limited, given that the proposed arrangements are voluntary for all parties and do not include collective boycott activity.
"Individual growers will be able to negotiate variations on the collectively negotiated contracts, and remain free to negotiate with potato processors on an individual basis outside of the collective arrangement," Mr Samuel said.
The ACCC issued its final determination within two months of receiving the SEPGA's application for authorisation, which demonstrates the ACCC's continued commitment to considering collective bargaining matters in a timely manner.
Copies of the final determination will be available on the ACCC's website.
*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.
