More furniture removalists to collectively negotiate with Pacific National

The Australian Competition and Consumer Commission will not object to a collective bargaining notification lodged by a group of furniture removal companies seeking to collectively negotiate with Pacific National.

Chess Moving Australia, on behalf of a group of eight removalists proposes to negotiate with Pacific National about terms and conditions, including price and volume rebates, for rail freight services.

Removalists often enlist the services of a rail freight service provider for interstate and other long distance relocations.

"Negotiating collectively provides the removalists with an opportunity to negotiate more favourable rebates than they may be able to individually and may also result in costs savings in negotiations," ACCC chairman Graeme Samuel said.

"The ACCC considers that the possible anti-competitive effect of the collective bargaining arrangement is minimal as the arrangement is voluntary and the group is small."

This decision follows the ACCC allowing, in February 2008, another group of removalists to collectively negotiate with Pacific National.  At that time Pacific National indicated that it would consider taking part in collective negotiations with other removalists if approached.

Collective bargaining refers to competitors collectively negotiating terms and conditions with a supplier or customer and can raise concerns under the competition provisions of the Trade Practices Act 1974.  Small businesses can obtain protection from related legal action under the Act by lodging a notification with the ACCC.

Provided the ACCC does not object to the notified arrangements, protection commences 14 days after lodgement. The ACCC will only remove the immunity provided by a collective bargaining notification when satisfied that any public benefits from the arrangements would not outweigh the public detriments.
 
Protection afforded by the notifications lasts for three years. As with any notification, the ACCC may review the notifications at a later stage, should concerns arise.
The ACCC's assessment will be available at www.accc.gov.au/CollectiveBargainingRegister

The participants in this collective bargaining group are: AFMIC Pty Ltd, Australian Removers & Storage Pty Ltd, Hanley's Removals Pty Ltd, Intermove Australia Pty Ltd, Larrate Pty Ltd, Price's Removals & Storage Pty Ltd, Taylor's Removals & Storage (Qld) Pty Ltd and Trans National & World Wide Movers Pty Ltd. Asciano Services Pty Ltd trades as Pacific National.