ACCC authorises continued collective bargaining for essential airport services

The Australian Competition and Consumer Commission has re-authorised the Board of Airline Representatives of Australia Inc (BARA) to continue to engage in collective negotiations, on behalf of its member international airlines, for essential airport services.

"In granting authorisation, the ACCC has taken into account, among other things, the relative bargaining position of the airports.  The ACCC considers that the collective negotiation arrangements would be likely to provide the airlines with an enhanced level of input into the negotiation process," ACCC chairman Graeme Samuel said.

Under the authorisation, BARA will be able to collectively negotiate with the major international airports, Gold Coast Airport, the Bureau of Meteorology, Airservices Australia, Unisys Australia Pty Limited and other providers of essential airport services.

To enable the ACCC to assess the ongoing competitive impact of the proposed arrangements, authorisation has been granted subject to conditions that ensure the ACCC is kept informed of the name and nature of the services provided by any other provider of essential airport services approached by BARA.

Participation in the collective negotiations is voluntary for providers of essential airport services and BARA members are not bound by the terms and conditions negotiated by BARA.

The ACCC re-authorises the arrangements for a further five years.

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's determination will be available from the public register on the ACCC website (www.accc.gov.au/AuthorisationsRegister) and by following the links to this matter.