ACCC allows collective bargaining by WA newsagents

The Australian Competition and Consumer Commission has allowed a group of Western Australian newsagents to seek to collectively negotiate the terms and conditions of their contracts with West Australian Newspapers, publisher of the West Australian.

Collective bargaining refers to two or more competitors collectively negotiating terms and conditions with a supplier or customer.

The Australian Newsagents' Federation lodged a collective bargaining notification on behalf of its WA members, members of the West Australian Distribution Association and certain independent newsagents.

Small businesses can obtain such protection for collective bargaining arrangements by lodging a notification with the ACCC. The notification provides immunity from court action for collective bargaining conduct that might otherwise raise concerns under the competition provisions of the Trade Practices Act 1974. The ACCC will only object to and remove the immunity provided by a collective bargaining notification when it is satisfied that any public benefits from the arrangement would not outweigh the public detriments.

"The ACCC considers the proposed arrangements will provide newsagents with greater input into their contracts, which may achieve more efficient and mutually beneficial commercial outcomes," ACCC Chairman, Mr Graeme Samuel, said today.

The ACCC notes that the proposed arrangements are voluntary, enabling any party, including WAN, to not participate in the arrangements if it does not consider the process to be in their best interests.

Protection afforded by the notification began on 20 May 2009 and expires in three years. As with any notification, the ACCC may review this notification at a later stage should concerns arise.

The assessment of the notification will be available from the ACCC's website, under the authorisations and notifications public register.