The Australian Competition and Consumer Commission has made a draft decision to re-authorise collective negotiation arrangements proposed by the Tasmanian Farmers and Graziers Association.
The proposed arrangement allows present and future TFGA members to collectively negotiate the terms and conditions of vegetable growing contracts with McCain Foods (Aust) Pty Ltd and Simplot Australia Pty Limited.
Growers and processors have been collectively negotiating contracts under an ACCC authorisation since 2004.
"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.
Participation in the collective negotiations is voluntary for both vegetable growers and processors. Authorisation does not extend to a collective decision by growers to boycott a processor if it refused to participate in collective negotiation or for other reasons including a failure to reach a collective agreement.
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 proposes to re-authorise the arrangements for a further five years and to enable TFGA members to negotiate with any new entrant vegetable processors in Tasmania should that processor agree to participate in collective negotiations.
The proposed authorisation is subject to a condition which restricts the collective bargaining groups from disclosing information obtained in the course of collective negotiations to growers outside the group.
The ACCC’s draft determination will be available from the ACCC website (www.accc.gov.au/AuthorisationsRegister) and by following the links to this matter.
The ACCC invites submission from interested parties in relation to the draft determination before making its final decision. Parties wishing to make submissions should do so by 12 March 2010. Please refer to the website for further information about making a submission to the ACCC.