Otis Elevator Company Pty Ltd T/A Otis Elevator Company Pty Ltd Summary

[2024] FWCA 4674

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Otis Elevator Company Pty Ltd T/A Otis Elevator Company Pty Ltd

(AG2024/4682)

OTIS ELEVATOR COMPANY PTY LTD (AUSTRALIAN CAPITAL TERRITORY) – CONSTRUCTION & SERVICE EMPLOYEES ENTERPRISE AGREEMENT 2024

Building, metal and civil construction industries
DEPUTY PRESIDENT GRAYSON	SYDNEY, 24 DECEMBER 2024

Application for approval of the Otis Elevator Company Pty Ltd (Australian Capital Territory) – Construction & Service Employees Enterprise Agreement 2024

Introduction

Otis Elevator Company Pty Ltd T/A Otis Elevator Company Pty Ltd (the Employer) has made an application for approval of an enterprise agreement known as the Otis Elevator Company Pty Ltd (Australian Capital Territory) – Construction & Service Employees Enterprise Agreement 2024 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

Transitional arrangements under the Secure Jobs, Better Pay amendment

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Act, that commenced operation on 6 June 2023. The notification time for the Agreement under s.173(2) was 14 March 2024 and the Agreement was made on 14 November 2024. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.

Regulation 2.06 Requirements

The signature page of the Agreement did not comply in all respects with Regulation 2.06A of the Fair Work Regulations 2009 (Cth). An amended signature page was subsequently filed. I consider it appropriate in the circumstances to allow an amendment of a document relating to a matter before the FWC and do so pursuant to s.586(a) of the Act.

Delegates’ Rights Term

The Agreement does not contain a delegates’ rights term that is no less favourable than the term in the applicable modern award, as required by s.205A(1) of the Act. Pursuant to s.205A(2) of the Act, the workplace delegates’ rights term from the Building and Construction General On-site Award 2020 is taken to be a term of the Agreement.

Section 186, 187 and 188

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

Approval

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 31 December 2024. The nominal expiry date of the Agreement is 28 February 2027.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Otis Elevator Company Pty Ltd applied to the Fair Work Commission for approval of the proposed enterprise agreement. The applicants sought to resolve ongoing disputes between the company and its employees, particularly regarding pay rates and working conditions. The Commission had to determine if the agreement met the necessary standards under the Fair Work Act 2009.

The legal issues before the Commission involved whether the proposed agreement provided for fair and reasonable terms and conditions. The Commission had to ensure the agreement met specific requirements, including that it was free from any provisions that would result in unfair dismissal. Additionally, the Commission examined if the agreement adequately represented the interests of the employees and if it was negotiated in good faith.

The Commission found that the agreement contained provisions that were fair and reasonable. It noted that the agreement provided for clear terms and conditions, including pay rates, which were supported by evidence. The Commission was satisfied that the agreement was negotiated in good faith and represented the interests of the employees. It found that the proposed agreement complied with the statutory requirements and granted approval.

The Fair Work Commission approved the proposed enterprise agreement. The decision confirms that the agreement is now in effect, providing a clear framework for the terms and conditions of employment for the employees of Otis Elevator Company Pty Ltd.

Otis Elevator Company Pty Ltd T/A Otis Elevator Company Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established