The Australian Competition and Consumer Commission has reached a settlement with the Garden City Cabs Cooperative Limited of Toowoomba resolving proceedings in relation to its anti-double shift policy known as the 'five-day' rule.
Proceedings were instituted against Garden City Cabs by the-then Trade Practices Commission alleging breaches of sections 45 and 46 of the Trade Practices Act 1974 concerning Garden City Cabs implementation of the 'five-day' rule.
Under the 'five-day' rule, once a driver began to work a taxi, that driver would be the sole person allowed to operate that taxi for a period of five days. This effectively prevented double-shifting of taxis as the taxi was only able to be operated for as long as that one person could drive it. If Garden City Cabs taxi operators did not comply with the 'five-day' rule their radio services would be suspended.
The settlement was facilitated by Garden City Cabs withdrawal of the 'five-day' rule in December 1996.
As part of the settlement, Garden City Cabs consented to injunctions restraining it from refusing to supply communication and despatch services to its members and commission drivers for the reason that its members have engaged a commission driver for a particular number of consecutive days. The consent injunctions effectively restrain Garden City Cabs from re-introducing the 'five-day' rule or introducing any rule of similar effect in the future.
Garden City Cabs will pay the ACCC's legal expenses in the matter as agreed, and has also provided the ACCC with an enforceable undertaking to implement a program for compliance with the Trade Practices Act 1974.
ACCC Chairman, Professor Allan Fels, welcomed the settlement as a sensible alternative to the costly and time consuming process of litigation.
For further information on this media release Professor Allan Fels, Chairman, pager (016) 373 536 Ms Lin Enright, Director, Public Relations, (02) 6264 2808
Proceedings were instituted against Garden City Cabs by the-then Trade Practices Commission alleging breaches of sections 45 and 46 of the Trade Practices Act 1974 concerning Garden City Cabs implementation of the 'five-day' rule.
Under the 'five-day' rule, once a driver began to work a taxi, that driver would be the sole person allowed to operate that taxi for a period of five days. This effectively prevented double-shifting of taxis as the taxi was only able to be operated for as long as that one person could drive it. If Garden City Cabs taxi operators did not comply with the 'five-day' rule their radio services would be suspended.
The settlement was facilitated by Garden City Cabs withdrawal of the 'five-day' rule in December 1996.
As part of the settlement, Garden City Cabs consented to injunctions restraining it from refusing to supply communication and despatch services to its members and commission drivers for the reason that its members have engaged a commission driver for a particular number of consecutive days. The consent injunctions effectively restrain Garden City Cabs from re-introducing the 'five-day' rule or introducing any rule of similar effect in the future.
Garden City Cabs will pay the ACCC's legal expenses in the matter as agreed, and has also provided the ACCC with an enforceable undertaking to implement a program for compliance with the Trade Practices Act 1974.
ACCC Chairman, Professor Allan Fels, welcomed the settlement as a sensible alternative to the costly and time consuming process of litigation.
For further information on this media release Professor Allan Fels, Chairman, pager (016) 373 536 Ms Lin Enright, Director, Public Relations, (02) 6264 2808