The Australian Competition and Consumer Commission has allowed nine traffic management and security contractors to seek to collectively negotiate the terms and conditions of their contracts with Guardrite Security and Traffic Management Pty Ltd.
K.E Viney Traffic and General Consultancy lodged a collective bargaining notification on behalf of the group. This provides the nine contractors with immunity from court action for collective bargaining conduct that might otherwise raise concerns under the competition provisions of the Trade Practices Act 1974.
Collective bargaining refers to two or more competitors collectively negotiating terms and conditions with a supplier or customer.
Small businesses can obtain protection from legal action under the Act for collective bargaining arrangements by lodging a notification with the ACCC.
Provided the ACCC does not object, protection commences 14 days after lodgment. Under the Act, the ACCC will only object to and remove the immunity provided by a collective bargaining notification when it is satisfied that any public benefits from the arrangement would not outweigh the public detriments.
"The ACCC considers the proposed arrangements will provide greater opportunity for these contractors to provide greater input into their terms and conditions, which may achieve more efficient and mutually beneficial commercial outcomes," ACCC Chairman, Mr Graeme Samuel, said today. "The proposed collective bargaining is also likely to result in transaction cost savings."
The ACCC notes that the proposed collective bargaining arrangements are voluntary. This enables any party, including Guardrite, to not participate in the arrangements if it does not consider the process to be in their best interests.
Protection afforded by the notification commenced on 6 April 2009 and expires in three years. As with any notification, the ACCC may review this notification at a later stage should concerns arise.
The assessment of the notification will be available from the ACCC's website, under the authorisations and notifications public register.