The Commerce Commission (Commission) has reached a preliminary view that it should allow the New Zealand Tegel Growers Association Incorporated (TGA) to collectively negotiate on behalf of its members the terms and conditions of its members' supply of chicken growing services to Tegel Foods Limited (Tegel) for a ten year period.
The Commission's preliminary view is based on its assessment of the likely benefits and detriments. The Commission considers that the potential benefits of collective bargaining in this case are more likely to outweigh the potential detriments than not. The benefits of collective bargaining include the potential to reduce transaction costs and reach more sophisticated agreements.
A copy of the Commission's determination is available on the Commission's case register here.
