The Australian Competition and Consumer Commission has issued a final decision dismissing an application for authorisation to allow collective negotiations between chicken-meat growers and processors in NSW.
The ACCC found that due to recent changes to NSW legislation, the arrangements that were the subject of the authorisation application were unlikely to ever eventuate, and that accordingly, the claimed public benefits of the arrangements were unlikely to ever flow. For this reason, the ACCC dismissed the application.
This application for collective bargaining was distinguished by the high level of opposition from those who stood to benefit from it – namely, NSW chicken growers, who had indicated their preference for industry-wide regulation.
In its draft decision, the ACCC proposed to grant authorisation with conditions. However, following that decision, and with the support of NSW chicken growers, the NSW State Government passed legislation amending the Poultry Meat Industry Act 1986 which regulates the industry. The ACCC considered that this legislation would have the effect of precluding the implementation of the arrangements that are the subject of this authorisation application. Thus the public benefits that were claimed to flow from the proposed arrangements are not likely to occur.
NSW chicken-meat processors applied for authorisation to allow their contract growers to collectively negotiate with their respective processors and give effect to standard growing contracts in accordance with a Code of Practice and minimum contract guidelines.