The Australian Competition and Consumer Commission today issued a draft decision proposing to allow the Newsagents Association of NSW and ACT (NANA) to collectively bargain with NSW Lotteries on behalf of member newsagents.
NANA represents around 500 newsagents in NSW and ACT which sell lottery products supplied by NSW Lotteries. This represents approximately a third of newsagents which sell lottery products in NSW and the ACT.
"Lottery products can be an important part of a newsagent’s business, so the terms on which NSW Lotteries supplies these products are important," ACCC deputy chair Peter Kell said.
"The proposed authorisation will enable NANA to represent its member newsagents in collective bargaining with NSW Lotteries for 5 years."
"Collective bargaining can make negotiations easier for all parties and is likely to provide NANA members with greater opportunities to have input into the terms and conditions of their contracts with NSW Lotteries," Mr Kell said.
Balanced against this, the ACCC considers that the collective bargaining arrangements are unlikely to result in any significant detriment as participation in the collective bargaining arrangement is voluntary for both NANA members and NSW Lotteries, and the arrangements do not include collective boycott activity.
The ACCC has previously authorised similar collective bargaining arrangements for lottery agents including newsagents in Victoria and Queensland.
The ACCC has considered this application under the ACCC’s streamlined collective bargaining assessment process for small business. Under the streamlined process, the ACCC undertakes to respond to requests for interim authorisation and issue a draft determination within 28 days of receiving an application and finalise its consideration of the application within three months.
The ACCC has granted interim authorisation to enable NANA to collectively bargain with NSW Lotteries pending the release and outcome of the ACCC’s final determination.
The ACCC now invites comments on the draft determination. The ACCC's draft determination and information about making a submission will be available from the ACCC website, www.accc.gov.au/AuthorisationsRegister. Parties wishing to make submissions should do so by Friday, 16 September 2011.
Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act 2010. Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.