Strength In Numbers For The Little Guy

Ed Charles:

One of the problems of being a small franchisee is that disputes with the franchisor are unequal. Franchisees are often small businesses while the franchisors are big, multi-million-dollar businesses that can leverage their market power and afford large legal bills. But the balance of power is moving a step closer to being evened out with the likelihood of the Senate passing legislation that will allow collective bargaining for small businesses without breaching competition legislation.

In October last year, when Queensland Nationals senator Barnaby Joyce opposed federal government changes to competition legislation he also blocked legislation that would allow collective bargaining. But the office of Small Business & Tourism Minister Fran Bailey is confident there is now enough support to push the legislation through the Senate.

At stake is the right for franchisees to band together to negotiate with the franchisor over changes to franchise arrangements that the individual business owners feel are unfair. Bailey told The Australian: ‘The Government’s proposed amendments to the Trade Practices Act will make it easier for small businesses to gain the benefits of collective bargaining. ‘Collective bargaining enables small businesses, from franchisees to farmers, to more fairly compete with big business.’ Late last month…