ACCC concerned about doctors' proposed collective bargaining
The Australian Competition and Consumer Commission has issued a draft objection notice to the collective bargaining notification* lodged by AMA Victoria on behalf of 26 Visiting Medical Officers at Werribee Mercy Hospital.
"AMA Victoria proposes to collectively negotiate, on behalf of the doctors, contract terms and conditions, including fees, with Werribee Mercy Hospital, a level two community hospital in the outer western suburbs of Melbourne," ACCC Chairman, Mr Graeme Samuel, said today.
"The size and composition of the group constitutes a significant proportion of the specialists that currently service the hospital as Visiting Medical Officers. "The ACCC is concerned that as a result of the hospitals location, facilities, and lack of affiliation with a larger teaching hospital there is not a strong case as to a disparity in bargaining position between individual doctors and the hospital. As a result, the ACCC considers that collective bargaining is not required in order to provide doctors with an efficient level of input into contracts.
"Whilst the ACCC considers that the voluntary nature of the arrangements and the absence of collective boycott aspects would usually limit the detriment, the ACCC is concerned that the coverage and composition of the group in this instance is likely to lead to sufficient increases in doctor bargaining power to lead to potentially anti-competitive outcomes."
The presence of different specialties in the group, and less commonality of interest, also reduces the public interest justification for collective bargaining. The ACCC is now seeking further submissions on its draft objection notice from the applicant and interested parties.
The draft objection notice will be available from the ACCC's website.
*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. Small businesses can obtain protection from legal action under the Act for a 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).
