The Australian Competition and Consumer Commission has issued a decision authorising* newsagents to engage in collective bargaining with the major publishers and distributors of newspapers and magazines, ACCC Chairman, Mr Graeme Samuel, said today.
The Australian Newsagents' Federation and the Queensland Newsagents' Federation sought authorisation to bargain collectively on behalf of member newsagents with major magazine distributors and newspaper publishers.
"In its draft decision, the ACCC proposed to deny authorisation to the arrangements, principally because at that time the proposed arrangements were very broad and could potentially have had significant anti-competitive effect. Since that time, the ANF and the QNF have narrowed the scope of their proposal considerably. For example, the applicants now seek to negotiate collectively only with major publishers and distributors. Small publishers and distributors are not affected by this decision.
"The ACCC is now satisfied that, subject to the conditions which it has imposed, any anti-competitive effect will be limited.
"In addition, the ACCC considers that allowing newsagents to bargain collectively will redress the imbalance in bargaining power between newsagents, which are predominantly small business, and major publishers and distributors such as News Ltd, Fairfax and ACP", Mr Samuel said.
"This may provide newsagents with an opportunity to have greater input into the terms and conditions of their contracts with these major companies.
"The ACCC has imposed some conditions on the authorisation that restrict the composition of bargaining groups to state level and limit the terms and conditions to be negotiated collectively.
"Further, those newsagents, publishers and distributors who wish to continue to negotiate individually are free to do so. However, newsagents in all states and territories who belong to the relevant newsagents' associations will be able to join in collective negotiations with those major publishers and distributors who wish to participate".