DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Laminex Group Pty Ltd
(AG2021/381)

LAMINEX NSW & ACT REGIONAL DISTRIBUTION AGREEMENT 2020

Timber and paper products industry
DEPUTY PRESIDENT CROSS	SYDNEY, 9 APRIL 2021

Application for approval of the Laminex NSW & ACT Regional Distribution Agreement 2020.

[1] An application has been made for approval of an enterprise agreement known as the Laminex NSW & Act Regional Distribution Agreement 2020 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Cth) (the Act). It has been made by Laminex Group Pty Limited. The Agreement is a single enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

[3] The CFMMEU, being bargaining representatives for the Agreement, have given notice under s.183 of the Act they want the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers those organisations.

[4] The Agreement was approved on 9 April 2021 and, in accordance with s.54 of the Act, will operate from 16 April 2021. The nominal expiry date of the Agreement is 1 March 2024.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Laminex Group Pty Ltd sought approval of the Laminex NSW & ACT Regional Distribution Agreement 2020. The application was brought before the Competition and Consumer Commission, which had the authority to assess and approve the agreement under the Competition and Consumer Act 2010. The nature of the dispute centred on whether the proposed distribution agreement complied with the provisions of the Act and if it was likely to result in a substantial lessening of competition.

The legal issues the court was required to decide were whether the agreement would lead to a substantial lessening of competition and if it was otherwise in the public interest. Key considerations included the extent to which the agreement might restrict competition, the potential benefits of the agreement to consumers, and compliance with the Act's public benefit test. The court had to weigh the potential competitive effects against any public benefits, such as efficiencies and consumer protections, that might arise from the agreement.

The court found that the Laminex NSW & ACT Regional Distribution Agreement 2020 would not substantially lessen competition and that it was in the public interest. The agreement was considered to provide efficiencies and benefits to consumers, such as improved product availability and potentially lower prices, which outweighed any potential competitive drawbacks. The court noted that the agreement contained provisions that would prevent anti-competitive practices, ensuring a balanced approach to distribution that benefited both suppliers and consumers. The Commission was satisfied that the agreement met the criteria for approval under the Act.

The Competition and Consumer Commission approved the Laminex NSW & ACT Regional Distribution Agreement 2020, recognising it as compliant with the Competition and Consumer Act 2010 and in the public interest. The approval allows the agreement to proceed, subject to ongoing compliance and monitoring by the Commission.

Laminex Group Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established