ACCC allows TAB agents to collectively bargain with Tabcorp

The Australian Competition and Consumer Commission has granted authorisation to the TAB Agents' Association of New South Wales to collectively bargain on behalf of its members with Tabcorp Holdings Limited.

In doing so, the ACCC saw likely benefits to consumers from the proposed conduct.

"The arrangements may lead to improved quality of service for customers by transactions cost savings," Chairman, Graeme Samuel, said today.

"The proposal also provides likely commercial benefits by allowing NSW TAB agents greater opportunity to have input into their contract terms and conditions."

The association represents more than 160 TAB agents, who acquire the right to provide betting services in NSW from Tabcorp.

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.

Authorisation provides immunity from court action for conduct that might otherwise raise such concerns. Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.

The association was previously authorised to engage in similar conduct for the past five years. The new authorisation would allow the association to renegotiate agency arrangements when they expire in 2011 and to negotiate variations to the terms and any future arrangements. The association can negotiate the resolution of any disputes that may arise between more than one of its members and Tabcorp.

The ACCC notes that the arrangements are voluntary and that Tabcorp does not object.

The ACCC's determination will be available from the ACCC website, via the Public registers and Authorisations and notifications registers links.