Air New Zealand Ltd v New Zealand Air Line Pilots’ Association Inc - [2016] 2 NZLR 829

Employment law — Appeal to Court of Appeal — Jurisdiction — Collective agreement — Whether Employment Court’s approach to interpretation of clause in agreement erroneous — Misapplication of principles — “Any agreement” — Employment Relations Act 2000, s 214(1).

Employment law — Collective employment agreement — Remuneration provisions — Two employee unions — Whether one union able to pass on certain terms of second union’s collective agreement to its members — More favourable pay rise — Ratchet clause — Whether passing on of all terms including possible burdens and benefits — Meaning of “agreement”.

Contract — Interpretation — Principles to be applied — Natural and ordinary meaning of “agreement” — Ratchet clause — Whether burdens as well benefits to be included — Wrong to allow one party to choose one part of the agreement only — Interpretation not contrary to business or common sense — Interpretation not unworkable.