The Australian Competition and Consumer Commission has granted conditional authorisation to the Australian Newsagents' Federation to collectively bargain on behalf of its members with certain magazine and newspaper publishers and distributors.
"The ACCC considers that the proposed collective bargaining arrangements are likely to deliver public benefits by improving the current bargaining imbalance between newsagents and major publisher/distributors and allowing newsagents more effective input into contractual terms and conditions," ACCC Chairman, Graeme Samuel, said. "The arrangements may also lead to transaction cost savings, as a collective group can share the costs associated with contracting, such as obtaining information and professional advice."
Collective bargaining refers to two or more 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 an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.
"The ACCC considers that there are several features of the proposed arrangements which limit any public detriment. In particular, the proposed arrangements are voluntary and do not involve collective boycott activity."
The ACCC has also imposed a number of conditions on the authorisation to set clear limits on the scope of any negotiations. Where newspaper publishers are concerned, newsagents will be able to form bargaining groups no larger than state level. However, newsagents will be able to form national bargaining groups to negotiate with magazine distributors and publishers, given that many of the issues relating to magazines apply nationally.
Authorisation has been granted for five years.
The ACCC's determination will be available from the ACCC website, via the Public registers and Authorisations and notifications registers links.