ACCC allows removalists to collectively negotiate with Pacific National
The Australian Competition and Consumer Commission has not objected to a collective bargaining notification* lodged by a group of removalists for negotiations on rail freight services with Pacific National.
Nuss Removals, on behalf of a group of four removalists**, propose to negotiate with Pacific National*** an annual volume growth rebate for rail freight services, as well as other terms and conditions such as the term of the agreement.
The removalists are independently owned businesses located in the ACT, NSW, Victoria and Western Australia, and do not have a presence nationwide.
Removalists often enlist the services of a rail freight service provider for interstate and other long distance relocations.
"The ACCC considers the proposed collective bargaining arrangement may result in some public benefits in the form of transaction cost savings," ACCC Chairman, Mr Graeme Samuel, said.
"It may also enable removalists to negotiate a more favourable rebate with Pacific National that would enable them to better compete with the larger, national removalists.
"The ACCC considers that the possible anti-competitive effect of the collective bargaining arrangement is limited given the voluntary nature of the arrangement and the small size of the collective bargaining group."
Protection afforded by the notification commenced on 18 February 2008 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 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 collective bargaining arrangements by lodging a notification with the ACCC. Provided the ACCC does not object to the notified arrangement, protection commences 14 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).
** The participants of the collective bargaining group are R J Nuss Removals Pty Ltd, Holbrook Removals Pty Ltd, King & Wilson Transport Pty Ltd and FIMPARK Pty Ltd trading as Keys Bros Removals and Storage.
*** Asciano Services Pty Ltd trading as Pacific National.
