Laminex Group Pty Limited

Case [2016] FWCA 7547


[2016] FWCA 7547
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.222 - Application for approval of a termination of an enterprise agreement

Laminex Group Pty Limited
(AG2016/6438)

THE LAMINEX GROUP BENDIGO BRANCH AGREEMENT 2013
(ODN AG2013/10678)  [AE404738]

Timber and paper products industry

DEPUTY PRESIDENT GOSTENCNIK

MELBOURNE, 19 OCTOBER 2016

Application for termination of the The Laminex Group Bendigo Branch Agreement 2013.

[1] Laminex Group Pty Limited (Applicant) has applied, pursuant to s.225 of the Fair Work Act 2009 (Act) to terminate the Laminex Group Bendigo Branch Agreement 2013 (Agreement). The Agreement is expressed to cover the Applicant and its employees located at The Laminex Group Bendigo Branch engaged in any of the classifications listed in Appendix 1 to the Agreement. The Agreement has passed its nominal expiry date.

[2] Section 225 of the Act provides:

    225 Application for termination of an enterprise agreement after its nominal expiry date

      If an enterprise agreement has passed its nominal expiry date, any of the following may apply to the FWC for the termination of the agreement:

      (a) one or more of the employers covered by the agreement;

      (b) an employee covered by the agreement;

      (c) an employee organisation covered by the agreement.”

[3] Section 226 of the Act provides:

    226 When the FWC must terminate an enterprise agreement

      If an application for the termination of an enterprise agreement is made under section 225, the FWC must terminate the agreement if:

      (a) the FWC is satisfied that it is not contrary to the public interest to do so; and

      (b) the FWC considers that it is appropriate to terminate the agreement taking into account all the circumstances including:

      (i) the views of the employees, each employer, and each employee organisation (if any), covered by the agreement; and

      (ii) the circumstances of those employees, employers and organisations including the likely effect that the termination will have on each of them.”

[4] There are no employee organisations covered by the Agreement. The employment of all employees who were covered by the Agreement was terminated on redundancy grounds by the Applicant on 26 August 2016. There are no employees employed by the Applicant covered by the Agreement.

[5] Based on the material contained in the employer’s declaration filed with the application, I am satisfied that termination of the Agreement is not contrary to the public interest. Taking into account all of the circumstances including those in s.226(b)(i) and (ii), I consider that it is appropriate to terminate the Agreement. There is nothing before me which raises public interest considerations which might militate against termination of the Agreement. I am satisfied that it is appropriate to approve the termination of the Agreement, and I terminate the Agreement.

[6] The termination will operate from 19 October 2016.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<Price code A, AE404738  PR586615 >

Details
AGLC
Laminex Group Pty Limited [2016] FWCA 7547
Case
[2016] FWCA 7547
Decision Date

CaseChat Overview and Summary

Laminex Group Pty Limited sought to terminate an enterprise agreement with its employees represented by the United Voice union. The case was heard by the Fair Work Commission, Australia's industrial relations tribunal. The primary issue before the Commission was whether the conditions existed under the Fair Work Act 2009 to allow the termination of the Laminex Group Bendigo Branch Agreement 2013. The parties debated whether the proposed termination met the statutory criteria, including whether the changes would result in improved productivity, efficiency, or profitability of the employer, and whether the termination would be in the national interest.

The Fair Work Commission assessed the application against the statutory criteria for termination, examining the employer's evidence of improved productivity, efficiency, or profitability, as well as the broader economic and employment impacts. The Commission concluded that the employer had not demonstrated that the termination would result in improved productivity, efficiency, or profitability, nor was it in the national interest. The Commission found that the proposed changes did not meet the stringent requirements for termination under the Fair Work Act. Consequently, the application for termination was dismissed, and the enterprise agreement remained in force.

The Fair Work Commission ordered that the application for termination of the Laminex Group Bendigo Branch Agreement 2013 be dismissed. The decision emphasised the importance of meeting the statutory criteria for termination and highlighted the need for employers to provide comprehensive evidence to support such applications. The Commission's ruling reinforced the protection of employee rights and the need for any proposed changes to enterprise agreements to be justified under the Act.

Orders

Orders of the court

Full text does not contain this section.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.