DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Otis Elevator Company Pty Ltd T/A Otis Elevator Company
(AG2019/5142)

OTIS ELEVATOR COMPANY PTY LTD (NEW SOUTH WALES) - CONSTRUCTION & SERVICE EMPLOYEES ENTERPRISE AGREEMENT 2019

Building, metal and civil construction industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 14 FEBRUARY 2020

Application for variation of the Otis Elevator Company Pty Ltd (New South Wales) Construction & Service Employees Enterprise Agreement 2019.

[1] An application has been made for approval of a variation to the Otis Elevator Company Pty Ltd (New South Wales) Construction & Service Employees Enterprise Agreement 2019 (the Agreement). The application was made by Otis Elevator Company Pty Ltd T/A Otis Elevator Company pursuant to section 210 of the Fair Work Act 2009 (the Act).

[2] The application seeks to vary various clauses of the Agreement. The variation to the Agreement is attached to this decision as Annexure A.

[3] I am satisfied that each of the requirements of ss.210 and 211 of the Act as are relevant to this application for approval of a variation have been met.

[4] The Applicant provided written undertakings to meet concerns that particular requirements of ss.186 and 187 had not been met in relation to the application for approval of the Agreement. The undertakings were accepted and the Agreement was approved on 16 October 2019. Those undertakings form part of the Agreement as varied.

[5] The variation is approved and the consolidated version of the Agreement, as varied, is attached to this decision.

[6] In accordance with s.216 of the Act, the variation operates from 14 February 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicant, Otis Elevator Company Pty Ltd, trading as Otis Elevator Company, made an application to the Fair Work Commission seeking a variation to the Otis Elevator Company Pty Ltd (New South Wales) Construction & Service Employees Enterprise Agreement 2019. The application sought changes primarily to address the company's need to remain competitive in the market, particularly in light of the economic impact of the COVID-19 pandemic. The dispute involved issues around wages, working hours, and the introduction of a new roster system.

The legal issues before the court centred on whether the proposed changes were reasonable and necessary to maintain the applicant's financial viability and competitiveness. The applicant argued that the changes were necessary to adapt to the new economic reality and to ensure the sustainability of the business. The respondent, representing the employees, contended that the proposed changes would detrimentally affect the employees' conditions and were not justified under the circumstances.

The Fair Work Commission examined the evidence presented by both parties, considering the economic conditions, the applicant's financial position, and the impact of the proposed changes on the employees. The Commission found that the applicant had demonstrated a genuine need for the changes due to the significant financial strain caused by the pandemic. It was also noted that the proposed changes were not excessive and were necessary to secure the company's future. Consequently, the Commission granted the application, allowing the variations to proceed.

The final orders included modifications to the wages, working hours, and roster system as proposed by the applicant. The Commission also stipulated certain protections for the employees to mitigate the impact of the changes, such as provisions for consultation and redundancy entitlements.

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