Coles is implementing a 'Supplier Charter' and has appointed Jeff Kennett as an independent arbiter to oversee the charter and resolve disputes.
In the supplier charter, Coles said it is committed to supporting its suppliers so that they can grow their business alongside the retailer and continue to deliver great products for its customers.
"We recognise the importance of building strong, collaborative and wherever possible, long-term partnerships with our merchandise suppliers.
"To underpin our commitment we have launched the Coles Supplier Charter which sets out what merchandise suppliers can expect when they work with Coles.
"It is a formal commitment to deal in good faith with our merchandise suppliers, treating them with respect and providing greater transparency throughout the relationship," the retailer said.
The move comes amidst legal proceedings initiated by the Australian Competition and Consumer Commission (ACCC) against Coles for allegations it engaged in unconscionable conduct, which included making threats, towards its smaller suppliers.
Coles CEO John Durkan said the former premier's decision on disputes would be binding and he would be free to make his decisions public.
Kennett said he would be completely independent. “I hope my services as the independent arbiter will rarely be called upon,” he said.
AUSVEG spokesperson Andrew White said that while he welcomed the announcement by Coles it was important that the process was independent and effective.
“Any attempts by supermarkets to improve relationships with their suppliers are welcome however we will be closely monitoring the implementation of the proposed framework, to ensure that it is delivering effective outcomes for growers,” said White.
“We recognise also that the framework does not preclude parties raising complaints with the Australian Competition and Consumer Commission, which is an important avenue for growers to raise concerns.”
