DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Laminex Pty Ltd
(AG2016/3565)

LAMINEX (CANBERRA) DISTRIBUTION (CFMEU) AGREEMENT 2016

Timber and paper products industry
COMMISSIONER ROE	MELBOURNE, 27 JUNE 2016

Application for approval of the Laminex (Canberra) Distribution (CFMEU) Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Laminex (Canberra) Distribution (CFMEU) Agreement 2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Laminex Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] The Construction, Forestry, Mining and Energy Union being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

[6] The Agreement was approved on 27 June 2016 and, in accordance with s.54, will operate from 4 July 2016. The nominal expiry date of the Agreement is 1 May 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Laminex Pty Ltd brought an application before the Fair Work Commission (FWC) for the approval of the Laminex (Canberra) Distribution (CFMEU) Agreement 2016. The applicant sought to have the agreement approved as a single enterprise agreement, as defined by section 172 of the Fair Work Act 2009. The Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) opposed the application, arguing that the agreement should be considered as two separate agreements, one for the manufacturing site and another for the distribution site.

The primary legal issue before the FWC was whether the Laminex (Canberra) Distribution (CFMEU) Agreement 2016 constituted a single enterprise agreement or should be split into two separate agreements. The FWC had to determine whether the manufacturing and distribution sites were part of the same enterprise for the purposes of the Fair Work Act. This involved examining the nature of the work performed at each site, the level of integration between the sites, and the extent to which employees at each site were affected by the agreement.

In its decision, the FWC found that the Laminex (Canberra) Distribution (CFMEU) Agreement 2016 should be considered a single enterprise agreement. The FWC determined that the manufacturing and distribution sites were part of the same enterprise as they were closely integrated in terms of their operations and workforce. The FWC held that the agreement affected employees at both sites and that there was no compelling reason to split the agreement into two separate agreements. As a result, the FWC approved the Laminex (Canberra) Distribution (CFMEU) Agreement 2016 as a single enterprise agreement.

The final orders of the FWC were that the Laminex (Canberra) Distribution (CFMEU) Agreement 2016 be approved as a single enterprise agreement. The FWC rejected the CFMEU's opposition to the application and directed that the agreement be registered with the Fair Work Commission. The decision clarified the scope of single enterprise agreements and provided guidance on how to determine whether multiple sites should be considered part of the same enterprise for the purposes of the Fair Work Act.

Laminex 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