Another “Independent Body” won’t help the horticulturalists.
“The ACCC described the situation facing suppliers as a “monopsony”, where there is effectively only one buyer for their products, who can leverage their buying power to get lower wholesale prices.
Under the recommendations, Woolworths, Coles and Aldi would be required to send the price they paid for fruit and vegetables to an independent body weekly, and they wouldn’t be allowed to change the price or volume of produce after a purchase order had been confirmed.”
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In a free country, farmers and other small businesses should be able to form a co-operative in order to negotiate a fair price with the major retailers.
For some strange reason co-ops were effectively outlawed even though it meant certain farmers such as horticulturists were thrown to the mercy of the major retailers.
In estimates I asked the ACCC if they would allow farmers to collectively bargain with the major retailers.
I was told to wait until the ACCC handed down their report which has only recommended more processes than solutions.
I can’t see how the creation of an independent body is going to help as they will inevitably end up being captured by the big retailers just as the TGA, RBA, APRA and ASIC are captured by the corporations they are meant to regulate.
People First will lift the limit on collective bargaining to allow small businesses, especially farmers, to negotiate with big businesses.
Quote from:
https://www.abc.net.au/news/rural/2025-03-25/farmers-feelings-mixed-about-accc-supermarket-power-report/105088668?utm_source=abc_news_web&utm_medium=content_shared&utm_campaign=abc_news_web
Economics Legislation Committee
26/02/2025
Estimates
TREASURY PORTFOLIO
Australian Competition and Consumer Commission
Senator RENNICK: Hi, guys. How are you going?
Ms Cass-Gottlieb : It is good to see you.
Senator RENNICK: When I was in the supermarket inquiry, I was surprised to hear from horticulturalists who said they had to sign nondisclosure agreements with Coles and Woolworths. Is that legal? I grew up on a farm. I’m used to going to cattle sales. There’s an eastern cattle market index. There’s a wool market index. How is it that Coles and Woolworths could silence and put NDAs on horticulturalists? That’s the first question. I note that there’s a collective bargaining exemption so that businesses with aggregated turnover of less than $10 million are exempt from collective bargaining laws. Is that the correct interpretation of section 95A of the Competition and Consumer Act 2010?
Ms Cass-Gottlieb : I’ll start with the nondisclosure agreements. The ACCC is currently very close to concluding its final report, which will be delivered to government by 28 December—so, shortly. I’m not in a position to comment on the final report, but it was clear in the interim report that one of the many concerns that were raised with us was from suppliers, including farmers, relating to unequal bargaining power and the manner of a range of aspects relating to contracting, and we will address a number of those aspects in detail in the final report. In terms of the collective bargaining exemption, you are right that small businesses that come under the relevant level can notify, and, once they’ve notified and we’re satisfied, then they are, in effect, exempt from the prohibition on parties competitively engaging in collective boycotting so that they can negotiate together.
Senator RENNICK: I checked out Woolworths’ accounts the other day. They’ve got about $65 billion in turnover. I know that’s not all to do with horticulture, but I would have thought it’s a pretty uneven playing field between them and, say, small farmers, some of whom are horticulturalists that might sell more than $10 million worth of produce but have only got a one or two per cent margin and, throwing the other stuff out, do not make a lot of money. Is that something that you think’s a bit on the low side, given that Woolworths and Coles make billions in turnover? It’s a case-by-case basis, really.
Ms Cass-Gottlieb : I understand. Our final report will certainly look, in a lot of detail, at the question of the position of suppliers—small suppliers and a range of suppliers. There is a capacity to come to the ACCC for authorisation for participants who wish to collectively bargain and are larger than and don’t come within that notification requirement. That is the way that we do assist. For instance, this week we authorised a group of Catholic hospitals in order for them to collectively negotiate with private health insurers. That was an authorisation, not a notification, because the hospitals together were above that level.
Senator RENNICK: Thanks.
