ACCC may allow Telstra Shop collective bargaining

Regulator ACCC has proposed to approve a request to allow Telstra (ASX:TLS) shops to band together while bargaining for equipment and business services

The ACCC has granted preliminary approval to allow Telstra (ASX:TLS) shops to engage in collective bargaining.

TLS Association, which represents around 90 per cent of Telstra licensed shops in Australia, has requested to collectively bargain with suppliers and providers of small business services.

In a statement, ACCC said the proposed arrangements involve only a small portion of participants in the relevant markets, and as such there is little to no risk of anti-competitive detriment.

Participation in the collective negotiations would be voluntary, and the arrangement would not impose restrictions on TLSA members seeking alternative suppliers, the regulator said.

The deal will also bring cost savings for TLSA members, and as such the ACCC feels the potential benefits outweigh the risks.

If the ACCC follows through with approving the measure, TLSA will be authorised to collectively bargain for five years.

The regulator has called for comments on its draft determination, with interested parties invited to make submissions up until 4 February.

Telstra is simultaneously under pressurefrom the ACCC to offer full 24-month warranties for iPhones bought under contract.

Optus bowed to pressure from the regulator to introduce two-year iPhone warranties earlier this month, and the ACCC has warned that Telstra and VHA will be in breach of new consumer legislation if they fail to follow suit.

TLS stayed unchanged in Thursday's trading at $2.810. The shares have fallen in value by 40 cents since Friday.

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Tags TelstraTelecommunicationsAustralian Competition and Consumer Commission (ACCC)telcosTLS Association

More about Australian Competition and Consumer CommissionOptusTelstra CorporationVHA

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