I wonder if this is not pretty much the same situation in practical terms that emerged with the end of the United Alternative last year. True, the vote says "merge" instead of "dissolution", but merge would imply two parties giving consent and forming an altogether new party through their union (and all that there is at the moment is a unilateral decision by Labor).
In that sense, this would mean the Labor Party is gone and not even the zombies will remain "Laborites", meaning all 28 registered Laborites are independents.
At least that's how I understand the issue.
I'm no expert, but that sounds accurate. The way you describe an actual merg is how the Federalist party was formed, as a merger between the Whig party and the Imperial Bloc.