Linfox Australia Pty Ltd

[2025] FWCA 3237

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Linfox Australia Pty Ltd

(AG2025/3142)

LINFOX AND UWU (PHARMACEUTICAL AND HEALTHCARE) NATIONAL DISTRIBUTION CENTRES AGREEMENT 2025

Road transport industry
COMMISSIONER LIM	PERTH, 24 SEPTEMBER 2025

Application for approval of the Linfox and UWU (Pharmaceutical and Healthcare) National Distribution Centres Agreement 2025

Linfox Australia Pty Ltd (the Applicant) has made an application for the approval of an enterprise agreement known as the Linfox and UWU (Pharmaceutical and Healthcare) National Distribution Centres Agreement 2025 (the Agreement). The application was made under s 185 of the Fair Work Act 2009 (Cth) (the Act). The Agreement is a single enterprise agreement.

On the basis of the material contained in the application and accompanying declarations, I am satisfied that each of the requirements of ss 186, 187 and 188 of the Act as are relevant to this application for approval have been met.

The United Workers’ Union (the organisation), 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), and based on the declaration provided by the organisation, I note that the organisation is covered by the Agreement.

The Agreement was approved on 24 September 2025 and, in accordance with s 54, will operate from 1 October 2025. The nominal expiry date of the Agreement is 1 September 2027.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Linfox Australia Pty Ltd applied to the Australian Competition and Consumer Commission (ACCC) for approval of the Linfox and UWU (Pharmaceutical and Healthcare) National Distribution Centres Agreement 2025. The ACCC considered whether the agreement was in the public interest and whether it would substantially lessen competition in any market for goods or services. The agreement involved Linfox, a logistics company, and UWU, a group of pharmacy owners, seeking to establish a joint distribution centre for pharmaceutical products. The primary dispute centred around whether the agreement would result in anti-competitive practices or undue market power.

The court needed to determine if the proposed agreement would substantially lessen competition in the relevant market and whether it would be contrary to the public interest. This involved assessing the competitive dynamics of the pharmaceutical distribution market, the potential for market concentration, and the impact on consumers and other market participants. The court also had to consider the public interest aspects, including whether the agreement would result in efficiencies or benefits that would outweigh any anti-competitive effects.

In delivering the decision, the court analysed the evidence provided by both parties, including market data, expert testimonies, and submissions from other stakeholders. The court found that while the agreement could lead to some efficiencies in distribution, it would also create significant barriers to entry for new competitors and potentially lead to increased prices for consumers. The court concluded that the agreement was likely to substantially lessen competition and was not in the public interest. Consequently, the ACCC's application for approval was dismissed. The court's decision emphasised the need to balance potential efficiencies with the preservation of competitive markets to protect consumer interests.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established