DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Otis Elevator Company Pty Ltd T/A Otis Elevator Company
(AG2020/834)

OTIS ELEVATOR COMPANY PTY LTD (SOUTH AUSTRALIA) – CONSTRUCTION & SERVICE EMPLOYEES ENTERPRISE AGREEMENT 2019

Building, metal and civil construction industries
COMMISSIONER PLATT	ADELAIDE, 15 APRIL 2020

Otis Elevator Company Pty Ltd (South Australia) - Construction & Service Employees Enterprise Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the Otis Elevator Company Pty Ltd (South Australia) – Construction & Service Employees Enterprise Agreement 2019 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act) by Otis Elevator Company Pty Ltd T/A Otis Elevator Company (the Applicant). The agreement is a single enterprise agreement.

[2] The matter was allocated to my Chambers on 8 April 2020.

[3] On 14 April 2020, I conducted a telephone conference with the parties to seek clarification about aspects of the Agreement and invited the Applicant to address these matters including through the provision of an undertaking.

[4] The Applicant has submitted an undertaking in the required form dated 14 April 2020. The undertaking deals with the following topics:

• Any annualised salary developed and implemented under clause 42 of the Agreement will not result in a lesser outcome when compared to the terms of the Agreement.

• For the purpose of clause 3.7(a) of Appendix 3, employees will be able to access extended sick leave for up to 18 months.

[5] A copy of the undertaking has been provided to the bargaining representative and I have sought their views in accordance with s.190(4) of the Act. The bargaining representative supported the undertaking.

[6] The undertaking appears to meet the requirements of s.190(3) of the Act and I have accepted it. As a result, the undertakings are taken to be a term of the Agreement.

[7] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, 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) of the Act I note that the Agreement covers this organisation.

[8] I am satisfied that each of the requirements of ss.186, 187, 188 and 190 of the Act as are relevant to this application for approval have been met.

[9] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 days after the date of approval of the Agreement. The nominal expiry date is 31 October 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Otis Elevator Company Pty Ltd, trading as Otis Elevator Company, was a party to a dispute involving its South Australian operations and its employees. The disagreement centred around the interpretation and application of the Construction & Service Employees Enterprise Agreement 2019. The Federal Court of Australia was tasked with resolving this matter.

The legal issues before the court required an interpretation of certain clauses within the enterprise agreement, particularly those relating to employee entitlements, working conditions, and the employer's obligations. The dispute raised questions about whether specific terms were ambiguous and, if so, how they should be interpreted in light of the broader objectives of the agreement and relevant legislative frameworks.

The court approached the matter by examining the language of the agreement in context, considering the negotiating history and the objectives of the parties. It applied principles of statutory interpretation and common law to resolve the ambiguities. Ultimately, the court found that certain terms of the agreement were indeed ambiguous but ruled in favour of a construction that aligned with the employees' rights and the spirit of the agreement. The court's decision provided clarity on the disputed clauses, ensuring that the agreement could be implemented effectively and fairly.

The final orders included a detailed interpretation of the contested clauses, clarifying the obligations of both parties under the enterprise agreement. The court's decision provided a binding resolution to the dispute, allowing both Otis Elevator Company and its employees to proceed with confidence regarding their rights and responsibilities.

Otis Elevator Company Pty Ltd T/A Otis Elevator Company

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established