The Australian Competition and Consumer Commission has decided to allow Western Australian broiler chicken growers to collectively bargain with their processors.
The ACCC has previously authorised similar collective bargaining arrangements for chicken growers in Victoria, South Australia and Tasmania.
The Western Australian Broiler Growers' Association sought authorisation to collectively bargain following the decision by the Western Australian government to repeal the Western Australian Chicken Meat Industry Act 1977. The collective bargaining arrangements provide a framework through which the Western Australian broiler chicken industry can choose to negotiate grower contracts.
"The ACCC considers that collective bargaining can provide an effective mechanism for the WABGA's members to improve their input into the terms and conditions of their contracts with processors," ACCC chairman Graeme Samuel said. "The collective bargaining arrangements are also likely to generate some transaction cost savings."
The WABGA's arrangements are voluntary for all parties.
Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act 2010. Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.
Businesses are able to use the authorisation process to obtain immunity from legal action under the competition provisions of the Act for collective bargaining arrangements that are in the public interest. Alternatively, small businesses can obtain immunity from legal action under the Act for such arrangements by lodging a collective bargaining notification.
The final decision will be available on the public register on the ACCC website at www.accc.gov.au/AuthorisationsRegister