‘Collective bargaining’ can also refer to employees negotiating with their employer. For more information about this type of bargaining, visit the Fair Work Ombudsman website.

About collective bargaining

Collective bargaining can benefit both your group and the common customer or supplier (the target business). For example, your business may not be able to supply enough products for a large buyer on your own. But by joining with other small businesses, you can:

  • increase the amount you supply
  • save time and money on negotiations
  • have more influence over terms and conditions
  • expand to new markets.

Target businesses don’t have to negotiate with a collective bargaining group. And collective bargaining doesn’t cancel any legal obligations you already have with the target business, such as confidentiality clauses.

The Australian Competition and Consumer Commission (ACCC) regulates collective bargaining in Australia. The ACCC may allow collective bargaining if it’s in the public interest 

Apply for a class exemption

A class exemption is a legal protection for businesses that meet specific conditions. It allows some business conduct that would normally break competition laws, such as:

  • setting prices
  • controlling supply
  • making agreements that reduce competition.

Collective bargaining groups need a class exemption from the ACCC or they risk breaking competition law. You need to get a class exemption before you start collective bargaining.

There are different processes for seeking a class exemption. The process you use depends on the types of businesses involved and what activity you have planned.

Small business class exemption

The ACCC’s small business collective class exemption covers most small businesses. It applies to:

  • businesses or independent contractors with a turnover under $10 million (each) in the last financial year
  • franchisees (regardless of turnover) bargaining with their franchisor
  • fuel retailers (regardless of turnover) bargaining with their fuel wholesaler.

To be covered by this class exemption, your group must submit a collective bargaining class exemption notice form.

All other class exemptions

Businesses that don’t fall into the small business class exemption group can seek an exemption by either:

Notification is easier and faster, but it is only available for some types of collective bargaining. 

The ACCC can help you work out which process to use.

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