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The Food and Grocery Code of Conduct was introduced in 2015 as a non-mandatory code to regulate the conduct of certain grocery retailers and wholesalers in their dealings with suppliers. The code was designed to promote fairness and protect suppliers from unfair business practices.
The code provided safeguards for suppliers, including protection against unfair contract terms, late payments and certain unfair practices, such as unilateral changes to contracts or de-listing of products without reasonable notice or cause.
The Code provides effective, fair, and equitable dispute resolution process for raising and investigating complaints and resolving disputes arising between retailers or wholesalers and suppliers by mediation and arbitration.
Ensures transparency and certainty in commercial transactions in the grocery supply chain by minimising disputes arising from the understanding of the commercial terms agreed between parties.
Parties are required to deal with each other in attempting to negotiate an outcome in good faith, in order to foster a cooperative and fair business outcome for their relationship.
Derek Minus is the former Commonwealth government Mediation Adviser and was responsible for managing the disputes under various industry Codes of Conduct.
He is a proponent for better resolution services for small business and made submissions to the Food and Grocery Review in 2014, 2018 and 2022, recommending improved processes.
As a barrister, accredited mediator and chartered arbitrator, he has the skills and experience to personally assist you with your dispute.
He is the principal of Dispute Resolvers which provides independent, fixed cost, mediation and arbitration services to businesses under the various industry Codes of Conduct.
Code Arbiters are employed by the major retailers to receive, examine and determine disputes.
In the past 2 years, only 5 disputes have ever been lodged despite there being thousands of suppliers and numerous informal complaints.
The Code Independent Reviewer reported in 2022 that:
“the formal Complaints process in the Code is not fit for purpose … the weakness at the core of the current Code is that it is a voluntary undertaking with zero compliance penalties.”
Mediation provides the opportunity for without prejudice discussions that are assisted by a neutral third-person mediator empowered to consult privately with each party.
The wide-ranging discussions in mediation cover the factual, legal and emotional aspects of each party’s interests and positions in the conflict.
Mediation provides an informal, non-binding priviledged negotiation managed by a neutral third party. It is a successful and low-cost way to discuss and resolve your disputes.
Arbitration is a private hearing and determination of your disputes by an independent and legally experienced
Arbitrator. It provides for a determination by an independent Arbitrator who is bound to act judicially in hearing the parties evidence and submissions and making an award (decision).
The Arbitrator’s decision is binding on the parties and must be followed by them. If the parties agree, an arbitration can be conducted if the mediation does not finalise all issues in dispute.
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