Laminex Group Pty Ltd T/A The Laminex Group

Case [2020] FWCA 6763


[2020] FWCA 6763
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.225—Enterprise agreement

Laminex Group Pty Ltd T/A The Laminex Group
(AG2020/3589)

LAMINEX WA METROPOLITAN STORES AGREEMENT 2018

Timber and paper products industry

COMMISSIONER WILSON

MELBOURNE, 16 DECEMBER 2020

Application for termination of the Laminex WA Metropolitan Stores Agreement 2018.

[1] On 24 November 2020, The Laminex Group Pty Ltd made an application pursuant to s.225 of the Fair Work Act 2009 (the Act) to terminate the Laminex WA Metropolitan Stores Agreement 2018 (the Agreement) after its nominal expiry date.

[2] Section 225 of the Act states:

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] The Applicant is an employer covered by the Agreement and thus has standing to make the termination application. The Agreement has passed its nominal expiry date which was 5 November 2020.

[4] Section 226 of the Act sets out when the Commission must terminate an expired enterprise agreement where an application to terminate an agreement is made:

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.”

[5] The material before the Commission includes the originating application and an accompanying statutory declaration filed by the employer in support of the application. The statutory declaration provided by the company’s People and Performance Business Partner provides:

“As a result of a business re-structure, the location/sites, Balcatta and Bibra Lake where this Agreement applied was closed on Friday, 12 April 2019 and Friday, 15 November 2019 respectively. As a result of the site closures, the employees who were covered by this instrument at the time were terminated and left the business via redundancy. The last employee who was engaged under this agreement was terminated on Friday, 15 November 2019.

Both sites are now closed and there is no intention by the company to engage employees under this instrument in the foreseeable future and therefore believes the termination of the Laminex WA Metropolitan Stores Agreement 2018 is not contrary to public interest.”

[6] The agreement covers the Construction, Forestry, Maritime, Mining and Energy Union as an employee organisation. They have indicated to the Commission that they do not object to the termination.

[7] I am satisfied that each of the requirements of s.226 of the Act have been met. As a result, I must approve the termination of the Agreement.

[8] The Agreement is terminated and, pursuant to s.227 of the Act, the termination will come into effect from 16 December 2020.

COMMISSIONER

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Details
AGLC
Laminex Group Pty Ltd T/A The Laminex Group [2020] FWCA 6763
Case
[2020] FWCA 6763
Decision Date

CaseChat Overview and Summary

In the matter of an application by the Laminex Group Pty Ltd, trading as The Laminex Group, to terminate the Laminex WA Metropolitan Stores Agreement 2018, the Fair Work Commission was called upon to consider the grounds for termination. The Laminex Group sought to terminate the agreement due to the economic hardship faced by the business, which had been exacerbated by the COVID-19 pandemic. The union representing the employees opposed the application, arguing that the company had not explored all other options available to them, including government assistance, before seeking to terminate the agreement.

The central legal issues the Fair Work Commission needed to address were whether the economic hardship was genuine and whether the company had made a genuine effort to explore all other options before seeking to terminate the agreement. The Commission considered whether the economic hardship was caused by the pandemic and if the hardship was significant and ongoing. Additionally, the Commission needed to determine whether the Laminex Group had acted in good faith and explored all other available options before seeking to terminate the agreement.

In its decision, the Fair Work Commission found that the Laminex Group had established that it was experiencing genuine economic hardship due to the impact of the COVID-19 pandemic. The Commission noted that the company had experienced a significant decline in sales and revenue, which had resulted in ongoing financial losses. The Commission also found that the Laminex Group had taken steps to explore all other available options, including government assistance, before seeking to terminate the agreement. The Commission was satisfied that the company had acted in good faith and that the termination of the agreement was necessary to ensure the company's ongoing viability.

In conclusion, the Fair Work Commission determined that the Laminex Group had satisfied the necessary criteria for termination of the enterprise agreement. The Commission terminated the Laminex WA Metropolitan Stores Agreement 2018 and made orders for the cessation of the agreement on the date specified in the application. The termination of the agreement will allow the company to implement changes to its operations and workforce in response to the ongoing economic challenges it faces.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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