Statement Of Preliminary Issues Released For Tegel Growers Association’s Application Seeking Collective Bargaining

Statement of Preliminary Issues released for New Zealand Tegel Growers Association’s application seeking authorisation for collective bargaining

The Commerce Commission has published a statement of preliminary issues relating to an application from the New Zealand Tegel Growers Association (TGA) seeking authorisation on behalf of its members to collectively negotiate the terms and conditions of its members’ supply of chicken growing services to Tegel Foods Limited.

The statement outlines the key competition issues that the Commission considers important in deciding whether or not to grant authorisation for TGA’s proposed collective bargaining arrangement.

The Commission invites interested parties to provide comments on the likely benefits and detriments, including the likely competitive effects, of the proposed arrangement. Submissions can be sent by email to registrar@comcom.govt.nz with the reference “NZTGA Authorisation” in the subject line. Any submissions should be received by close of business on 29 October 2021.

The Commission is currently scheduled to make a decision on the application by 25 March 2022. However, this date may be extended as the investigation progresses.

The Statement of Preliminary Issues and a public version of the application can be found on the Commission’s case register.

Background

The Commission may grant authorisation under sections 58 or 65AA of the Commerce Act (the Act) for agreements that may otherwise breach the Act if it is satisfied that the agreement will be likely to result in a benefit to the public that would outweigh any lessening in competition, or such that the conduct should be permitted.

The Commission’s Authorisation Guidelines explain when anti-competitive agreements that may lessen competition will be authorised under section 58 of the Act, and our process for determining such authorisation applications.

The Commission’s Guidelines on Approach to Authorisations under the COVID-19 Response (Further Management Measures) Legislation Act explain when the Commission will authorise agreements that might contain a cartel provision under Part 5 of the Act, and our process for determining such authorisation applications.

© Scoop Media