ACCC moves quickly to block collective bargaining plans before NSW prosthetics tender

The Australian Competition and Consumer Commission has acted to prevent a group of prosthetic service providers from commencing collective negotiations with NSW Health on the terms and conditions of a request for tender.

APC Prosthetics Pty Ltd lodged a collective bargaining notification on behalf of itself and three other prosthetic service providers operating in NSW.

The request for tender seeks to implement the Mechanical Interim Limb Program for NSW public patients who have undergone a lower limb amputation. Under the program, NSW Health will contract prosthetists to supply services associated with providing mechanical interim limbs and first definitive limbs to patients.

"The ACCC notes that this is the first competitive tender process for prosthetic services run in NSW," ACCC chairman Graeme Samuel said today. "NSW Health has advised that collective bargaining of the type proposed cannot occur at this time because there is a tender process under way.

"If the collective bargaining notification was allowed to take effect, it would permit competitors who may be considering putting in a tender bid to meet and discuss the tender's terms, which may undermine the competitiveness of the process.

"The ACCC has moved quickly to prevent collective negotiations from taking place so that the competitive tender process is not jeopardised."

APC and any other parties which may be interested in the issues raised in the draft objection notice can now provide further information to the ACCC to assist its consideration of whether to issue a final notice objecting to the notification.

More information regarding the notification, copies of the draft objection notice and information on how to make a submission are available from the ACCC's website www.accc.gov.au/CollectiveBargainingRegister or by emailing the Adjudication Branch at adjudication@accc.gov.au.

Businesses may obtain protection in relation to conduct that might risk breaching provisions of the Trade Practices Act 1974 by lodging a notification with the ACCC. Once lodged, protection for the notified conduct begins automatically 14 days after the notification was validly lodged.  By issuing the draft objection notice, the ACCC has prevented immunity for this notification from coming into effect.

The ACCC may object to a collective bargaining notification containing a cartel provision if it is satisfied that the likely benefit to the public from the conduct will not outweigh the likely detriment to the public.  Before issuing an objection notice, the ACCC must issue a draft objection notice setting out its reasons for proposing to object to the notification.