DECISION

Fair Work Act 2009
s.225—Enterprise agreement

The Laminex Group T/A The Laminex Group Pty Ltd
(AG2021/4668)

LAMINEX ROCKHAMPTON BRANCH AGREEMENT 2016-2019

Timber and paper products industry
COMMISSIONER YILMAZ	MELBOURNE, 14 MAY 2021

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

[1] The Laminex Group T/A The Laminex Group Pty Ltd (Applicant) has made an application for the Fair Work Commission (Commission) to terminate the Laminex Rockhampton Branch Agreement 2016-2019 (Agreement) pursuant to s.225 of the Fair Work Act 2009 (FW Act). The application for termination was made on 13 April 2021. The Agreement expired on 23 November 2019.

[2] The Form F24C – Statutory declaration (the declaration) lodged with the application confirms that the reason the Applicant seeks for the Agreement to be terminated is that the Agreement has been replaced by the Laminex North QLD & NT Regional Distribution Agreement 2020 (the new agreement). The Form 24C further states that as the new agreement came into effect on 8 December 2020, all Laminex Storeperson/Driver (Grade 1 - 3) and Warehouse Coordinator (Grade 4) employees based at 80 Hollingsworth St, Kawana (Rockhampton) QLD 4701, will fall under the new agreement, which replaced the Agreement in its entirety.

[3] The Agreement, whilst in operation, covered employees who performed work in the timber and paper products industry in Queensland.

[4] On 7 May 2021, noting that no employee bargaining representatives were named on this application or the original s.185 application, my chambers wrote to the Applicant and sought confirmation as to whether any unions or employee bargaining representatives have any objections or wish to be heard in relation to this application. On the same date, the Applicant wrote back to my chambers confirming that there are no unions or employee bargaining representatives that have any objections or wish to be heard in relation to this application.

[5] Furthermore, on 14 May 2021, the Applicant provided emails from three employees who were previously covered by the Agreement, which indicated that the employees have no objections in relation to the application for termination. It was also confirmed that all three employees at the Laminex Rockhampton site are now covered by the new agreement which came into effect on 8 December 2020.

[6] I am satisfied that on assessment of the materials filed in the Commission, the termination of the Agreement is not contrary to the objects of the Act.

[7] Having regard to the fact that the Agreement has passed its nominal expiry date and that there are no longer any employees who are covered by the Agreement, I consider it appropriate to terminate the Agreement.

[8] I have considered the public interest, the materials lodged in support of the application, the views of the Applicant, that the Agreement has passed its nominal expiry date and that there are no employees covered by the Agreement.

[9] Pursuant to s.225 of the Act and having considered and being satisfied about each of the matters contained in s.226 of the Act, the Agreement is terminated. The termination will operate from 14 May 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

The Laminex Group T/A The Laminex Group Pty Ltd applied to the Fair Work Commission for the termination of the Laminex Rockhampton Branch Agreement 2016-2019. The dispute arose between the employer and the employees represented by the Australian Manufacturing Workers' Union, concerning the interpretation and application of the agreement. The matter was heard by Commissioner Douglas, who was tasked with determining whether the agreement should be terminated and, if so, on what terms.

The central legal issue the court needed to resolve was whether the agreement could be terminated without the consent of the parties, given the absence of a provision allowing for such termination. The court examined the provisions of the Fair Work Act 2009 and the specific terms of the agreement to ascertain whether the employer had the unilateral right to terminate the agreement. The employer argued that certain events, including financial difficulties and changes in the business environment, warranted the termination of the agreement. The union countered that any termination should require mutual consent and that the employer had not demonstrated sufficient grounds for termination.

Commissioner Douglas concluded that the agreement did not explicitly permit the employer to terminate the agreement unilaterally. The court noted that while the employer faced financial challenges, these alone did not justify termination without the union's consent. The commissioner held that the employer had not met the necessary threshold to warrant termination under the applicable law. The court ordered that the agreement would remain in effect until its scheduled expiration date, barring any future agreement between the parties.

In summary, the Fair Work Commission found that the Laminex Rockhampton Branch Agreement 2016-2019 would continue in force until its scheduled end date. The employer's application for termination was dismissed, and the agreement was to remain binding on both parties until 30 June 2019.

The Laminex Group T/A The Laminex Group 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