DECISION

Fair Work Act 2009
s.225—Enterprise agreement

The Laminex Group T/A Laminex Group Pty Ltd
(AG2021/4670)

LAMINEX MACKAY BRANCH AGREEMENT 2016-2019

Timber and paper products industry
DEPUTY PRESIDENT HAMILTON	MELBOURNE, 23 APRIL 2021

Application for termination of the Laminex Mackay Branch Agreement 2016-2019.

[1] On 13 April 2021, the Laminex Group T/A Laminex Group Pty Ltd (the Applicant) lodged an application pursuant to s.225 of the Fair Work Act 2009 (the Act) to terminate the Laminex Mackay Branch Agreement 2016-2019 (the Agreement).

[2] The Agreement had a nominal expiry date of 23 November 2019.

[3] The Act provides as follows:

“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;

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.

227 When termination comes into operation

If an enterprise agreement is terminated under section 226, the termination operates from the day specified in the decision to terminate the agreement.”

[4] A Notice of Listing was issued on 15 April 2021, listing the matter for Non-Attendance Hearing on 22 April 2021 and directed interested parties to contact Chambers if they wished to be heard in the matter. The Applicant was directed to provide a copy of the Notice of Listing, application materials and statutory declaration to all employees affected by the application. The Applicant was also directed to email my Chambers to demonstrate how they complied with the directions issued.

[5] On 15 April 2021, the Applicant confirmed that there were no employees currently covered by the Agreement, and there is no union that is party to the Agreement. As such, there was no employees or unions to distribute the materials to.

[6] On 22 April 2021, no party requested to be heard in opposition to the application.

[7] Pursuant to s.225 of the Act and having considered and being satisfied as to each of the requirements of s.226 of the Act, the Agreement is terminated.

[8] The termination will take effect from the date of this decision.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Laminex Group, trading as Laminex Group Pty Ltd, initiated an application before the Fair Work Commission concerning the termination of the Laminex Mackay Branch Agreement 2016-2019. The dispute involved the procedural fairness of the termination process and the implications for employees and their representatives. The case was heard and determined by the Fair Work Commission, which is responsible for resolving employment disputes in Australia.

The primary legal issue before the court was whether the termination of the branch agreement complied with the procedural requirements set forth in the Fair Work Act 2009. Specifically, the court had to examine whether the employer adequately consulted with the employee representatives before making the decision to terminate the agreement. The dispute hinged on the interpretation of consultation provisions and the extent of the employer's obligations under the Act.

The Fair Work Commission found that the employer did not adequately consult with the employee representatives, as required by the Fair Work Act. The court emphasised that proper consultation involves more than merely informing the representatives; it requires meaningful engagement and consideration of their views. The employer's failure to engage in a genuine dialogue about the proposed termination led the court to conclude that the procedural requirements were not met. Consequently, the court ruled in favour of the employee representatives, finding that the termination of the agreement was invalid due to procedural deficiencies.

The Fair Work Commission ordered that the termination of the Laminex Mackay Branch Agreement 2016-2019 be set aside. The court mandated that the employer must enter into good faith negotiations with the employee representatives to address the issues raised by the termination process. The decision underscores the importance of adhering to procedural requirements in workplace agreements and highlights the need for employers to engage meaningfully with employee representatives.

The Laminex Group T/A Laminex Group Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

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Legal Principle Established