Continuation Of Provisional Authorisation For New Zealand Tegel Growers Association To Collectively Negotiate With Tegel

In September 2021 the New Zealand Tegel Growers Association Incorporated (TGA) applied for authorisation for its members to engage in collective bargaining with Tegel Foods Limited. In November 2021 the Commission granted provisional authorisation for collective bargaining up until 25 March 2022.

The Commission considers it would be appropriate for the provisional authorisation to continue beyond 25 March 2022. The Commission has therefore granted a further provisional authorisation, and this will remain in force until the Commission determines TGA’s authorisation application.

The Commission’s reasons for its further provisional authorisation determination will be published shortly.

Further information is available on the Commission’s case register.

Background
A link to our media release announcing the Commission’s grant of provisional authorisation in November 2021 can be found here.

The Commission may grant authorisation under sections 58 or 65AA of the Commerce Act 1986 (the Act) for agreements that may otherwise breach the Act if it is satisfied that the agreement will in all the circumstances result, or be likely to result, in such a benefit to the public that the conduct should be permitted.

The Commission may grant a provisional authorisation under section 65AD of the Act during the 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 or arrangement. The Commission may authorise all or some of the agreement or arrangement 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.

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