Imagine how a newsagent feels when they discover that they will lose their distribution of The Canberra Times at a little more than a week’s notice? This is what happened to one newsagent this week. The newsagent quit their Fairfax relationship six months ago as it was loss-making. Now, without notice, the folks at The Canberra Times are taking their business away.
While there has been no formal contract, the newsagent and publisher have operated for enough years on consistent terms to imply a contract.
While there is no doubt that newspaper home delivery is in significant play, some publishers could approach the structural changes with more respect than is currently on show.
Remember, newsagents have been long and faithful servants of newspaper publishers, putting up with a decline in real income for many years with the promise of change which never eventuated. Now that publishers need to drive consultation, some are doing so in a disrespectful and hearth reaching way.
The same thing happened to our store in the Newcastle / Hunter region.
Newspaper Publisher representatives in this region use threat and intimidation to stop agents from handing back their run, even when they do it using the correct procedures.
Several Newsagents have handed back their Home Distribution contracts only to have their retail contracts torn up by the Publisher’s. It can then take them years to even become a subagent.
Other agents are forced to take on other territories, with the threat if they do not take on that territory, then supplies will stop.
It is a huge topic, but one that people seem to be too scared to discuss.
I would investiage possible legal action for “third line forcing”.
While the parent company may own both Fairfax and the Canberra times, if the entities running the publications operate seperatly it may be a case of third line forcing.
I would also investigate whether of not any other agents have direct supply of the Canberra Times without a Farifax contract. If they do there may be a case to be made in regards to “Misuse of market power” under the Trade Practices Act.