On 18 December 2020 Morgan Sawmill Jamestown lodged an application seeking authorisation for itself, SA Pine Pty Ltd, KSI Sawmill, PalletCo, Harvestco (the Initial Group) and other businesses that acquire unprocessed timber logs from the South Australian Forestry Corporation (ForestrySA) to collectively negotiate terms and conditions concerning the supply of logs from the Mount Lofty Ranges in South Australia. In particular, the collective bargaining group proposed to discuss:
- Prices per grade of log.
- Period of supply.
- Log volumes.
- Delivery and collection locations.
- Log specifications.
- The rate at which logs would be collected (m3 or tonnes per week).
- Incidental matters (e.g. when fire affected logs would be rejected, measurement methodology, insurance requirements, payment terms, security).
Authorisation was sought for 20 years.
Morgan Sawmill also requested interim authorisation to allow the collective bargaining group to engage in the proposed conduct while the ACCC considers the substantive application for authorisation. Specifically, Morgan Sawmill sought interim authorisation to:
(a) Engage in collective bargaining activities to negotiate the terms of log supply with ForestrySA
b) Enter into supply agreements with ForestrySA pursuant to the collective bargaining negotiations, and
c) Give effect to, or being knowingly involved in the negotiation of log supply agreements.
On 12 February 2021 the ACCC granted interim authorisation for the proposed collective bargaining group to commence discussions and negotiations concerning the supply of logs from the Mount Lofty Reserve in South Australia. Interim authorisation does not extend to discussions on pricing or allow the group to enter into or give effect to any log sales agreements with ForestrySA. The ACCC also imposed a condition requiring that it be notified in advance of any business other than Morgan Sawmill Jamestown, SA Pine Pty Ltd, KSI Sawmill, PalletCo and/or Harvestco participating in the collective bargaining group. A copy of the interim authorisation is available below.
On 26 March Morgan Sawmill requested that interim authorisation be expanded to allow the collective bargaining group to be able to discuss prices when the draft determination issues. The ACCC decided not to grant this request and its reasons for this decision are set out in the draft determination, below.
On 3 June 2021 the ACCC issued a determination granting authorisation until 30 June 2032 with a condition requiring that Morgan Sawmill notify the ACCC 30 days before any business beyond the Initial Group joins the collective bargaining group.
Further information about the ACCC’s decision is available in the Decisions section below.
Applications - supporting documents
|ACCC to Interested Parties re Draft Determination ( PDF 262.58 KB )||10 May 2021|
|ACCC to ForestrySA seeking further information ( PDF 271.54 KB )||22 Mar 2021|
|ACCC to Interested Parties re Consultation Process (expanded mail out) ( PDF 239.28 KB )||13 Jan 2021|
|ACCC to Interested Parties re Consultation Process ( PDF 232.29 KB )||23 Dec 2020|
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|ACCC to Interested Parties re Final Determination ( PDF 249.25 KB )||3 Jun 2021|
|ACCC to Interested Parties re Interim Authorisation Decision ( PDF 264.36 KB )||12 Feb 2021|
|ACCC to Applicant re Interested Party Consultation ( PDF 224.16 KB )||23 Dec 2020|
Submissions - before draft decision
|Applicant - supporting request for wider interim authorisation ( PDF 1011.92 KB )||28 Apr 2021|
|ForestrySA ( PDF 4.72 MB )||9 Apr 2021|
|Applicant - response to interested party submissions ( PDF 1.61 MB )||18 Feb 2021|
|ForestrySA re substantive Authorisation ( PDF 232.89 KB )||3 Feb 2021|
|ForestrySA re Interim Authorisation ( PDF 206.35 KB )||27 Jan 2021|
|Small Business Commissioner South Australia ( PDF 1.8 MB )||18 Jan 2021|
|Midway Limited ( PDF 764.91 KB )||14 Jan 2021|
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