Collective bargaining by small businesses - one year on

Second, existing labour market shortages operated against their application because it suggested an existing degree of individual market power. This was the case even though the evidence suggested that in practice there was little actual negotiation over the cost of their services.

Finally, evidence of increased control over working conditions was not relevant to the assessment because it does not constitute a public benefit.

The La Trobe doctors application to engage in collective bargaining demonstrates the shortcomings of using competition law principles to resolve disputes over labour supply. In beginning from the assumption that all service providers are equal with their engagers and ignoring private benefit, the TPA provisions discount all of the actual benefits contractors can realise through bargaining. Further contractors reliant on their own labour will face a difficult argument in times of tight labour supply regardless of whether negotiation takes place in practice.

These difficulties faced by the Victorian doctors will also be experienced by any small businesses unable to control either the eventual price paid by the consumer or downstream efficiencies.

If the ALP is seriously committed to counteracting inequality of bargaining power for small businesses it must revisit the concept of public benefit in the TPA notification process. It should, at least, include consideration of the private welfare of the members of the bargaining unit as a relevant factor.