The Australian Competition and Consumer Commission has allowed a collective bargaining notification* lodged by the Australian Newsagents' Federation on behalf of some of its Western Australian members to stand, ACCC Chairman, Mr Graeme Samuel, said today.
"The newsagents, who primarily operate distribution and delivery businesses, propose to collectively negotiate contract terms and conditions with West Australian Newspapers, publisher of the West Australian.
"The ACCC considers that the proposed collective bargaining arrangement may provide newsagents with greater input into their contracts."
There are a number of features of the arrangement which limit the potential for anti-competitive impact including the respective bargaining positions of Western Australian newsagents and WAN. Additionally, the arrangement is voluntary and does not involve potential boycotts."
Allowing the newsagents to collectively bargain does not reduce the ability of WAN and newsagents to negotiate individual agreements.
The notification was 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 less than four weeks.
Protection afforded by the notification will last for three years. As with any notification, the ACCC may review the notification at a later stage should concerns arise. The assessment of the notification 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).
