ACCC proposes to allow Sunraysia region dried vine fruit growers to collectively bargain

The Australian Competition and Consumer Commission has issued a draft decision proposing to authorise* the Victorian Farmers Federation Sunraysia Branch members to collectively bargain the terms and conditions of their contracts with dried vine fruit processors, ACCC Chairman, Mr Graeme Samuel, said today.

"The ACCC considers that collective bargaining by dried vine fruit growers is likely to provide growers with greater input into their contract terms and conditions leading to more efficient outcomes.

"The ACCC believes that the possible anti-competitive effect of the collective bargaining arrangement is limited given the nature of the proposed arrangement, the structure of the industry and the limited size of the collective bargaining group.

"Allowing dried vine fruit growers to collectively bargain does not reduce the ability of individual growers to negotiate variations on collectively negotiated contracts or to negotiate with a processor on an individual basis outside of the collective arrangement.

"The ACCC has also granted interim authorisation to allow collective bargaining to commence between VFF Sunraysia branch members and processors for the 2008 supply year.

"The ACCC has issued this draft determination and granted interim authorisation one month after receiving the VFF Sunraysia branch's application for authorisation. This outcome demonstrates the ACCC's continued commitment to deal with collective bargaining matters quickly," Mr Samuel said.

The ACCC is seeking submissions from interested parties in relation to its draft determination in this matter. Copies of the draft determination will be 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.

Background

*Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Trade Practices Act 1974. Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment. The ACCC conducts a comprehensive public consultation process and issues a draft determination before making a decision to grant or deny authorisation.