Telstra shops granted collective bargaining authorisation

Telstra shops granted collective bargaining authorisation

ACCC determines savings outweight any anti-competitive risk

The Australian Competition and Consumer Commission (ACCC) has allowed TLS Association (TLSA) to collectively bargain with suppliers on behalf of Telstra licensed shops for five years.

In January, the competition watchdog granted preliminary approval to allow Telstra (ASX:TLS) shops to engage in collective bargaining.

TLSA represents about 90 per cent of Telstra licensed shops around Australia. The organisation wanted to collectively bargain with suppliers of telecommunications products and providers of general small business services.

The ACCC granted authorisation on the basis that the collective bargaining arrangements were likely to bring cost savings for members.

"As the arrangements involve a small proportion of participants in the relevant markets, the ACCC considers there is little or no risk of the arrangements resulting in anti-competitive detriment." ACCC chairman, Graeme Samuel, said in a statement.

The commission determined that the public benefit of the collective bargaining — savings to the consumer — would outweigh any public detriment.

The ACCC also noted that participation in the collective negotiations was voluntary and that TLSA members were still free to deal directly with suppliers.

Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act 2010.

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Tags telecomsacccAustralian Competition and Consumer Commission (ACCC)competitionTelstra shopsTLSA

More about Australian Competition and Consumer CommissionAustralian Competition and Consumer CommissionTelstra Corporation

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