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Consumer watchdog launches collective bargaining guide

Small businesses and farmers may benefit from collective bargaining, said consumer watchdog.

The Australian Competition and Consumer Commission has launched a new guide on the potential benefits of collective bargaining. The ACCC explains that a collective bargaining arrangement allows two or more competing businesses to jointly negotiate with a supplier or a customer over terms, conditions, and prices.

“Working together, small businesses might be able to negotiate better terms and conditions with large businesses than they could achieve on their own,” said ACCC deputy chair, Michael Schaper.

There can also be benefits for the business the group negotiates with, such as reduced negotiation costs, more certainty of supply and savings from aligning transport and distribution.

“In the last year the ACCC has approved around 10 collective bargaining proposals in sectors such as dairy, chicken growing, hotels, and retailers of plumbing and hardware,” Schaper said.

The ACCC acknowledges, too, that that collective bargaining will not suit everyone.

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