MTAA Welcomes Collective Bargaining Announcement

MTAA welcomes yesterday’s announcement by the Minister for Small Business and Tourism, the Hon Joe Hockey MP, and the Treasurer, the Hon Peter Costello MP, that the Government intends to introduce legislation in Parliament today to amend the Trade Practices Act 1974 to give effect to the Government’s response to the Dawson Review of the Trade Practices Act.

MTAA believes that a strong and viable small business sector is an essential element of a competitive market and has long advocated amendments to the Trade Practices Act to address the unfair and anticompetitive behaviour undertaken by big business in its dealings with small business.

In particular, MTAA congratulates the Government on its decision to amend the Act to introduce collective bargaining notification arrangements for small business. MTAA has long supported the introduction of such arrangements. MTAA believes that it is vitally important that the proposed arrangements are actually accessible and workable for small businesses. The Association is therefore pleased that the proposed arrangements permit industry and trade associations to collectively bargain on behalf of their members and allow for the proposed $3 million threshold to be increased for particular industries, where appropriate. MTAA is also pleased that the proposed arrangements provide small business with a right of collective withdrawal of their services, if necessary, as part of that negotiation process.

MTAA notes that the Government also tabled yesterday its response to the Senate Economics References Committee Inquiry into ‘The effectiveness of the Trade Practices Act 1974 in protecting small business’. Whilst MTAA is disappointed that the Government has not adopted the seventeen recommendations made by the Majority, it does note the Government’s commitment to amend section 46 (misuse of market power) so that the Courts may consider below cost pricing when determining whether a corporation has misused its market power. MTAA also welcomes the Government’s decision to amend section 51AC (unconscionable conduct) to increase the threshold from $3 million to $10 million and to allow the Court to take into account whether there has been a unilateral variation of contract.

MTAA would urge the Government to introduce legislation into the Parliament to give effect to its response to the Senate Economics Committee Inquiry as soon as is possible and that once the legislation is passed cases relating to unconscionable conduct and contravention of industry codes of conduct (section 51AD) can be heard in the Federal Magistrates Court.

MTAA congratulates the Government on its announcement yesterday.

For further information contact Michael Delaney, Executive Director, MTAA, on (02) 6273 4333.