The ACCC does not object to the notification lodged by KIS Transport Australia Pty Ltd (KIS) to enable it to collectively bargain agreements on behalf of itself, five other freight brokers and future freight brokers that may become members of the group, with freight carriers.
The ACCC has decided to allow the notification to remain in force for a period of 6 years as requested by KIS, instead of the default period of 3 years.
The current members of the collective bargaining group are KIS Transport, Hydra Logistics Solutions Australia Pty Ltd, Total Freight Logistic Services Pty Ltd, Transfreight Solutions Australia Pty Limited and KIS Corporate Pty Ltd.
The members of the collective bargaining group provide freight broking services, which connect a customer who wants to send freight, to a freight carrier, while also managing other aspects of the supply chain for that customer (such as insurance, freight monitoring, warehousing and customer services). The freight carriers which the group intends to collectively negotiate with include Toll Express, TNT and Couriers Please.
The ACCC considers the collective bargaining is likely to result in public benefits in the form of transaction cost savings and improved input into contracts by the members of the collective bargaining group, and there is likely to be minimal public detriment.
By lodging a notification with the ACCC, KIS and the other freight brokers gain legal protection to participate in collective bargaining that may otherwise risk breaching competition laws because it involves joint action by competitors. Participation in collective bargaining will be voluntary for the freight brokers and freight carriers.
The notification came into force on 4 January 2021 and will remain in force until 20 December 2026 unless it is withdrawn or revoked.