Source: www.ausfoodnews.com.au
SUPERMARKETS continue to treat suppliers unfairly, says a review of the Food and Grocery Code of Conduct calling out a lack of good faith on behalf of the retailers to improve poor practices.
Former ACCC boss Graeme Samuel is conducting the review that wants the companies and family-owned businesses behind the brands to be treated fairly by the major supermarkets and wholesalers that have greater bargaining power.
“This ensures that suppliers are able to invest and innovate to give consumers the best choice, quality and value at the checkouts,” Professor Samuel said.
Prof Samuel said it is clear the original architects of the Grocery Code (Coles, Woolworths and the Australian Food and Grocer Council) had envisaged good faith and fair dealings to play a major role in strengthening commercial relationships in the grocery sector.
Prof Graeme Samuel AC has released a Draft Review of the Food and Grocery Code of Conduct. An AFGC initiative, the Code works to improve trading relations between suppliers and supermarkets. Prof Samuel shared initial findings #AustFoodGrocery in May. https://t.co/6C99rESQAX pic.twitter.com/eAWPBdW43W
— AFGC (@AusFoodGrocery) July 4, 2018
In the draft review Prof Samuel quotes Coles managing director John Durkan: “Coles has worked hard to embed a strong culture of fair dealings with our suppliers. We devote a lot of time and resources in mentoring team members to do the right thing.”
Prof Samuel said while the good faith principles in the Grocery Code have gone some way towards setting broad expectations of fair dealings, there is a need to enhance the role and utility of this important fairness obligation.
“From the evidence and feedback received during the review, it appears that the current good faith provisions have not lived up to industry expectations,” Prof Samuel said.
The draft of this first review of the Grocery Code, established in 2015, has been released for public consultation until August 1.
The Grocery Code is unique in that it is an industry-led initiative and the only voluntary prescribed industry code of its kind.
ALDI, Coles, Woolworths and About Life Pty Ltd have become signatories and are bound by the Grocery Code, which is enforced by the Australian Competition and Consumer Commission.
Metcash has controversially declined to sign up to the code, getting it onboard is a goal of the review.
The draft report makes a total of 14 recommendations to ensure the Grocery Code continues working effectively for the food and grocery industry.
This consultation is part of the Food and Grocery Code of Conduct Review.
On 2 July 2018 the review released its draft report for public consultation.
Submissions on the draft report are due by 1 August 2018.
Post Views:
2,693