The Australian Competition and Consumer Commission has re-authorised collective contract negotiations put forward by the Tasmanian Farmers and Graziers Association.
The arrangements allow present and future TFGA members to collectively negotiate the terms and conditions of vegetable growing contracts with McCain Foods (Aust) Pty Ltd and Simplot Australia Pty Limited, and any new processors that agree to participate.
Growers and processors have been collectively negotiating contracts under an ACCC authorisation since 2004.
"The ACCC considers that the collective bargaining arrangements are likely to continue to be of benefit particularly through providing the opportunity for increased grower input into contracts," ACCC chairman Graeme Samuel said.
Participation in the collective negotiations is voluntary for both vegetable growers and processors. Authorisation does not extend to a collective decision by growers to boycott a processor if it refused to participate in collective negotiation or for other reasons including a failure to reach a collective agreement.
Collective bargaining refers to competitors collectively negotiating terms and conditions with a supplier or customer. Without authorisation, it can raise concerns under the competition provisions of the Trade Practices Act 1974. Broadly, the ACCC may grant authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.
The ACCC re-authorises the arrangements for a further five years, subject to a condition which restricts the collective bargaining groups from disclosing information obtained in the course of collective negotiations to growers outside the group.
The ACCC's determination will be available from the ACCC's website (www.accc.gov.au/AuthorisationsRegister) and by following the links to this matter.