A group of Wizard Home LoansÕ franchisees can go ahead with collective bargaining when negotiating aspects of franchise agreements with Aussie Home Loans and GE Money.

Small businesses are able to obtain protection from legal action for collective bargaining under the Trade Practices Act 1974, dependent on the Australian Competition and Consumer Commission. Under the Act the ACCC will judge if the public benefits from the proposed bargaining arrangement does not outweigh the public detriments.

Graeme Samuel, ACCC chairman, said collective bargaining in this case will result in transaction savings to the group and enable franchisees to better consider their options in the limited time available.

“The ACCC considers that the potential for anti-competitive impact is limited, taking into account the competitive nature of the industry, and the fact that participation in the negotiations is voluntary for all parties involved,” Samuel said.