ACCC allows Wangaratta Anaesthetist Group to collectively bargain
The Australian Competition and Consumer Commission has decided not to object to a collective bargaining notification* lodged by the members of the Wangaratta Anaesthetic Group, ACCC Chairman, Mr Graeme Samuel, said today.
WAG is an associateship of anaesthetists. Its members propose to collectively negotiate with BUPA Australia Health (trading as HBA) a fee for the provision of no-gap billing to HBA members.
The ACCC considers that the proposed collective bargaining arrangement may result in some public benefits in the form of increased input into contracts and some efficiency savings.
The ACCC considers that the voluntary nature of the proposed arrangements would mitigate against the potential for anti-competitive impact. In particular, it is likely that the proposed collective bargaining arrangements will only lead to an agreement if it is mutually beneficial to both parties.
Protection afforded by the notification will commence on 19 December 2007 and 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 is 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 collective bargaining arrangements 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).
