The competition watchdog has concluded its investigation into alleged dodgy deals between Toll Holdings and the Transport Workers Union.

The ACCC says it does not consider that the alleged conduct contravenes the provisions of the Competition and Consumer Act 2010.

The investigation started after revelation at hearings of the Royal Commission into Trade Union Governance and Corruption.

The Royal Commission heard evidence about two separate confidential deeds entered into by Toll and the TWU as part of enterprise agreement bargaining in 2011 and 2013.

The allegations were that a deal was struck wherein Toll agreed to make annual payments to the TWU’s Transport Education Audit Compliance Health Organisation Limited (TEACHO), subject to the TWU meeting certain requirements.

The deal allegedly would have seen TWU conducting audits, wage inspections or other compliance measures on Toll’s competitors, in exchange for TEACHO providing training for Toll’s employees and contractors on including log book compliance and occupational health and safety.

“The ACCC closely investigated whether the alleged conduct contravened the CCA, including whether the relevant provisions had the purpose, or had or were likely to have the effect, of substantially lessening competition,” ACCC Chairman Rod Sims said.

“The ACCC concluded that the provisions in the two deeds did not have the purpose and were not likely to have the effect of substantially lessening competition.”

The ACCC’s conclusion was based on the following factors:

  • the market for road freight transport is fragmented, with no single business having a significant share of the market, so it is not likely that the provisions could have had the effect of substantially lessening competition in that market;
  • none of the relevant provisions was given effect to, and hence there was no competitive harm from the conduct (a conclusion reached following enquiries with industry, including competitors of Toll); and
  • there was no evidence that the purpose of the relevant provisions was to substantially lessen competition.

Mr Sims said that while the ACCC does not generally comment on its investigations, it made the announcement due to the public nature of the Royal Commission’s findings and previous public statements regarding the alleged conduct.