The Australian Competition and Consumer Commission will allow the Australian Newsagents’ Federation Ltd (ANF) to collectively bargain with SA Lotteries on behalf of 112 of its South Australian members.
The notification will enable the ANF to represent the 112 listed newsagents in collective bargaining with SA Lotteries for three years. Participation in the arrangement is voluntary for both the newsagents and SA Lotteries.
“Lottery products, which include ‘scratchies’, lotteries and lotto are often an important part of a newsagent’s business,” ACCC chairman Rod Sims said.
“Collective bargaining for these products can result in a public benefit by allowing small businesses to improve their input into contractual terms and conditions.”
The ACCC has allowed similar collective bargaining arrangements by lottery agents in the past, most recently by granting authorisation to the Newsagents Association of NSW and ACT to collectively bargain on behalf of its members with NSW Lotteries. Similar arrangements have also been authorised in Victoria and Queensland.
Collective bargaining refers to two or more competitors, typically small businesses, collectively negotiating terms and conditions with a supplier or customer. This type of conduct potentially raises concerns under the Competition and Consumer Act 2010.
Small businesses wishing to collectively bargain can either lodge a notification or seek authorisation from the ACCC to obtain protection from legal action for collective bargaining conduct.
The ACCC considers whether public benefits of the arrangements outweigh the public detriments. Provided the ACCC does not revoke a collective bargaining notification, legal protection commences 14 days after lodgement and remains in place for 3 years.
The ANF lodged the collective bargaining notification with the ACCC on 6 October 2011.