ACCC issues final notice on AMA Victoria's proposal to collectively bargain with Latrobe Regional Hospital
The Australian Competition and Consumer Commission today issued a final objection notice in relation to the collective bargaining notification* lodged by AMA Victoria on behalf of 39 Visiting Medical Officers at Latrobe Regional Hospital.
AMA Victoria proposed to collectively negotiate, on behalf of the doctors, contract terms and conditions, including fees, with Latrobe Regional Hospital, a base hospital in the Gippsland region of Victoria.
ACCC Chairman, Mr Graeme Samuel, said collective bargaining notifications are assessed on a case-by-case basis.
"In the Latrobe case, having considered the information before it, the ACCC considers that the public benefit to result from the arrangement would be limited.
"Hospitals are faced with workforce shortages and the need to engage specialists. There does not appear to be strong evidence of a disparity in bargaining positions between the group of doctors and the hospital."
Mr Samuel said the presence of different specialties in the group also reduces the public interest justification for collective bargaining.
"The ACCC is concerned that the coverage and composition of the group would lead to potentially anti-competitive outcomes. "In particular, the ACCC considers that a potential price rise as a result of the proposed arrangements may force the hospital to operate with fewer medical practitioners, or rationalise services.
"Despite differences of opinion, the ACCC notes the open and constructive approach adopted by the AMA in relation to this matter and their efforts in addressing matters of interest to the ACCC," Mr Samuel said.
The final 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. 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).
