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Collective Bargaining Authorisation for Chicken Growers

21 December 2017

NEW ZEALAND - The Commerce Commission has granted authorisation to allow members of the Waikato - Bay of Plenty Chicken Growers Association Incorporated to collectively bargain with Inghams Enterprises (NZ) Pty Limited.

The Association, on behalf of members, asked for authorisation to collectively negotiate the terms and conditions under which its members supply chicken growing services to Ingham’s.

After consulting on its draft determination, the Commission reached a view that while it is likely that the proposed collective bargaining arrangements would lessen competition, any reduction in competition is likely to be outweighed by the public benefits.

Commission Chair Dr Mark Berry said the Commission did not receive any submissions in opposition to its draft decision.

Dr Berry said, "The collective bargaining proposed interferes with the normal competitive process of individual growers independently negotiating their supply terms with Ingham’s.

"However, there are benefits from these collective negotiations, including reducing the cost of multiple growers arranging individual supply contracts with Ingham’s.

"We found the detriment would be limited and growers would be able to opt out of any collective arrangements and continue to contract individually if they wished."

You can find the written reasons for the decision by clicking here.

ThePoultrySite News Desk



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