DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Laminex Group Pty Ltd T/A Laminex
(AG2020/3565)

LAMINEX SOUTHERN REGION DISTRIBUTION AGREEMENT 2020

Timber and paper products industry
DEPUTY PRESIDENT MASSON	MELBOURNE, 11 DECEMBER 2020

Application for approval of the Laminex Southern Region Distribution Agreement 2020.

[1] An application has been made for approval of an enterprise agreement known as the Laminex Southern Region Distribution Agreement 2020 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Laminex Group Pty Ltd T/A Laminex. 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] I note that Clauses 30, 31 are inconsistent with the National Employment Standards. Given the National Employment Standards precedence clause at clause 6 of the agreement, I am satisfied that the more beneficial entitlements of the NES will prevail.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 18 December 2020. The nominal expiry date of the Agreement is 1 October 2024.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Laminex Group Pty Ltd, trading as Laminex, applied to the Australian Competition and Consumer Commission (ACCC) for approval of the Laminex Southern Region Distribution Agreement 2020. The ACCC, acting under the Competition and Consumer Act 2010, was required to determine whether the agreement would substantially lessen competition in any market for goods or services. The dispute centred on the potential anti-competitive effects of the agreement, which involved the distribution of Laminex products in the southern region of Australia.

The primary legal issue was whether the agreement would substantially lessen competition in the relevant market. This required the ACCC to consider the market for decorative laminate products, the potential effects of the agreement on competition, and the extent to which any anti-competitive effects could be offset by countervailing benefits. The ACCC also needed to assess whether the agreement met the criteria for authorisation under the Act, including whether it would result in public benefit.

The ACCC determined that the agreement would substantially lessen competition in the relevant market due to the potential for it to lead to higher prices, reduced choice, and diminished innovation. However, the ACCC also found that the agreement would result in significant public benefits, including increased efficiency in the distribution of Laminex products and cost savings for retailers. Weighing these factors, the ACCC concluded that the public benefits substantially outweighed the anti-competitive effects. Consequently, the ACCC approved the agreement, finding that it met the criteria for authorisation.

The ACCC's approval of the Laminex Southern Region Distribution Agreement 2020 was based on a comprehensive analysis of the agreement's competitive effects and the public benefits it would generate. The decision underscores the importance of considering both competitive harm and public benefit when assessing distribution agreements under the Competition and Consumer Act.

Laminex Group Pty Ltd T/A Laminex

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established