The Industrial Court of NSW has ruled this afternoon that the temporary injunction granted to a newsagent last week stopping the take over of their newspaper distribution territory by a publisher is to remain in place until the parties have participated in mediation. I am told that the newsagent sought mediation with the publisher prior to today’s ruling and was rejected by the publisher. My previous posts on this matter can be found here.
Today’s ruling and those leading up to it are a blow to the publisher who was using what I’d label a vague provision in its newsagent contract to take over a business for no compensation. The contracts have been contentious since they were introduced in 1999 following the deregulation by the Federal Government of newspaper distribution in Australia.
The matter before the Industrial Court of NSW is a test case and newsagents will watch the outcome closely. It will set a benchmark as to when and how a publisher can take the newspaper distribution business from a newsagent.
The court mandated mediation will be most interesting.