The Australian Competition and Consumer Commission has granted authorisation for collective bargaining by Victorian chicken growers with chicken processors for a further five years.
The arrangements allow growers to form bargaining groups according to which of Victoria's four chicken processors, Baiada Poultry, Inghams Enterprises, Hazeldene Chicken Farm or Turi Foods they supply.
Victorian chicken growers and processors have been collectively negotiating contracts since 2005 following deregulation of the Victorian broiler chicken growing industry. The VFF advises that since the arrangements were first authorised they have been successfully utilised by some grower groups while other groups are close to finalising contracts.
"The ACCC considers that the collective bargaining arrangements are likely to continue to be of benefit particularly through providing the opportunity for increased grower input into contracts," ACCC chairman Graeme Samuel said.
Importantly, the arrangements are voluntary for both processors and growers. Individual growers remain free to directly negotiate with their processor if they or the processor wish.
"The ACCC has issued this final decision in just a little over two months since receiving this application for authorisation. This again demonstrates the ACCC's commitment to dealing with collective bargaining matters quickly," Mr Samuel said.
Collective bargaining refers to 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 authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.
The ACCC's determination will be available from the ACCC website www.accc.gov.au/AuthorisationsRegister by following the links to this matter.