The Australian Competition and Consumer Commission has issued a Final Determination granting authorisation* to Inghams Pty Ltd to continue to conduct collective contract negotiations with its chicken growers in South Australia, ACCC Chairman, Professor Allan Fels, said today.
Inghams sought authorisation to conduct collective negotiations regarding contract terms and conditions (including in relation to chicken growing fees) in accordance with a Code of Practice and Minimum Contract Guidelines. The ACCC had previously granted authorisation to Inghams in South Australia in similar terms, but that authorisation had expired.
In granting authorisation for five years, subject to certain conditions, the ACCC noted that the South Australian Parliament is expected to debate new legislation to regulate the industry and allow for collective bargaining between chicken growers and processors in SA early this year.
"The ACCC is of the view that the arrangements are likely to result in benefits to the public", Professor Fels said. "These benefits include a measure of certainty and continuity with regard to collective bargaining, and some savings in adjustment costs to Inghams and its growers in light of the likely transition to a regulated industry in South Australia.
"The ACCC believes that these public benefits outweigh the possible anti-competitive effect of the proposed arrangements, which is very limited when having regard to the nature of the proposed arrangements and the structure of this industry".