FRANCHISEES’ BARGAINING POWER

Franchisees may be in for stronger bargaining power and network representation under a new proposal from the Australian Competition and Consumer Commission (ACCC). The ACCC collective bargaining proposal was floated last year, but after positive results the body is seeking feedback from the small business sector on the proposed plan.

The plan would allow small businesses to collectively negotiate with their suppliers and processors.

Mick Keogh, ACCC deputy chair, said the proposal meant less red tape for franchisees and more freedom to improve supply chain.

“Collective bargaining allows businesses to share the time and cost of negotiating contracts, and potentially gives them more of a say on contract terms and conditions,” Keogh said.

“This proposal would make it much simpler and less costly for eligible businesses or franchisees to collectively negotiate. However, the class exemption would not force anyone to join a collective bargaining group, or force a customer, supplier or franchisor to deal with the bargaining group if they did not want to,” Keogh said.