ACCC considers collective bargaining by newsagents is in public interest

The Australian Competition and Consumer Commission proposes to grant authorisation to collective bargaining arrangements designed to give newsagents a greater voice in the terms and conditions they receive from publishers and distributors of newspapers and magazines.

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 Queensland Newsagents Federation has applied for authorisation on behalf of itself, the Newsagents Association of NSW and the ACT, and the Victorian Association for Newsagents to engage in collective negotiations on behalf of members, with certain major publishers and distributors of newspapers and magazines.

"The ACCC accepts that newsagents are generally small businesses that are negotiating with well resourced and experienced large suppliers such as News Limited or Fairfax," ACCC Chairman, Mr Graeme Samuel, said today.

"In this context, collective bargaining is likely to lead to public benefits by addressing the imbalance in bargaining power between newsagents and the major publishers and distributors."

Mr Samuel said this is likely to assist newsagents to have more effective input into contractual terms and conditions, leading to more appropriate commercial outcomes.

Participation in any collective bargaining is voluntary for both newsagents and their suppliers. The ACCC has also proposed to impose conditions on the authorisation to limit the potential detriment associated with the size of the collective bargaining group.

The ACCC has proposed to grant authorisation for five years.

The ACCC conducts a comprehensive public consultation process and issues a draft determination before making a decision to grant or deny authorisation.

The ACCC is seeking submissions from interested parties in relation to its draft determination by Friday, 3 April 2009. 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 fax on (02) 6243 1121 or by email to: adjudication@accc.gov.au

The ACCC's draft determination will be available from the ACCC website, (follow the Public Registers and Authorisations and Notifications Registers links).