New Zealand Tegel Growers Association seeks provisional authorisation for its members to engage in collective bargaining with Tegel Foods
Published01 Oct 2021
On 16 September 2021, the Commerce Commission received an application from the New Zealand Tegel Growers Association Incorporated (TGA) seeking authorisation on behalf of its members to collectively negotiate the terms and conditions of its members’ supply of chicken growing services to Tegel Foods Limited (Tegel) for a ten year period.
TGA now seeks a provisional authorisation until the Commission declines or grants its application for authorisation. TGA considers that there are compelling public interest reasons and an urgent need that support its application for a provisional authorisation.
A public version of TGA’s provisional authorisation application is available on the Commission’s case register.
The Commission seeks submissions from Tegel and other interested parties on the appropriateness of allowing TGA to give effect to the proposed collective negotiations while the Commission considers its application for authorisation.
Submissions can be sent by email to firstname.lastname@example.org with the reference “NZTGA Provisional Authorisation”. Any submissions by Tegel and other interested parties should be received by 7 October 2021, with cross-submissions due from TGA by close of business on 14 October 2021.
The Commission is not required to issue a draft determination, or hold a conference, in relation to the grant of a provisional authorisation.
The Commission may grant a provisional authorisation under section 65AD of the Commerce Act during the COVID-19 epidemic period in respect of an application for authorisation made under sections 65AA(2) or (3) or 58(1) or (2).
A provisional authorisation has the same effect as an authorisation but is of limited duration and only available while the Commission considers an application for authorisation of the relevant agreement. The Commission may authorise all or some of the agreement for which authorisation has been sought.
The Commission may grant provisional authorisation when it considers it appropriate. The Commission will consider the urgency of the application, potential benefits and detriments, and the impact on the relevant market amongst other factors when considering whether a provisional authorisation is appropriate.
The Commission’s Guidelines on Approach to Authorisations under the COVID-19 Response (Further Management Measures) Legislation Act explain when the Commission may grant provisional authorisation, and our process for determining such provisional authorisation applications.