92 Mr Kite referred to the principle of condonation and submitted that should the Commission place reliance on the fact that the respondent had applied the Food Award for a lengthy period of time, it would fall into error: Seamen's Union of Australia v Adelaide Steamship Co Ltd [1976] 46 FLR 444.
93 At 445 of the Seamen's Union case, Mr Kite submitted the Court noted that respondents in that matter had:
[S]ought to have admitted evidence of the conduct of the parties subsequent to the making of the award, relying on the advice of the Judicial Committee of the Privy Council in Watcham v Attorney-General of the East Africa' Protectorate and a decision of this Court in Merchant Guild of Australia v Sydney Steam Collier Owners and Coal Stevedores Association in which evidence was admitted in order to resolve the ambiguity.
94 Mr Kite referred to the approach of the Full Bench in the Zoological Parks Board case which at 70 paragraph 58 considered there was no role for the principle of condonation in interpreting industrial instruments:
Further, the principle of condonation seems, conceptually, to intersect with the use of "evidence of user", that is, where the court has regard to how the parties have applied the instrument in practice. It is well established that it is generally impermissible to have regard to the subsequent conduct of parties as an aid in the interpretation of a written instrument, such as a contract or industrial instrument: see, for example, Seamen's Union of Australia v Adelaide Steamship Co Ltd at 445 where the Australian Industrial Court discussed the advice of the Privy Council in Watcham v Attorney-General of the East Africa Protectorate [1919] AC 533 and the judgment of the House of Lords in L Schuler A.G. v Wickman Machine Tool Sales Ltd [1974] AC 235 and, in considering the latter decision, stated:
The issue there was whether the conduct of the parties to a commercial agreement was admissible in aid of interpretation of that agreement and the House of Lords unanimously decided that, in general, an agreement could not be construed in the light of the subsequent actions of the parties. Lord Reid expressed the view that there may be special reasons for construing the title to land in the light of subsequent possession, but found no support for any general principle permitting subsequent actions to be used in throwing light on the meaning of a contract. Lord Wilberforce was more severe in his criticism of reliance on Watcham's case, which he described as a "refuge of desperation". No other authority on the point has been referred to us and, in these circumstances, we decided to apply Schuler's case and refused to allow the evidence of subsequent conduct.
95 Mr Kite submitted the Court determined Watcham's Case should be confined in its application to the interpretation of documents of title to land as to evidence of user. The Court's decision in the Seamen's Union case has been followed in other cases before this Commission and elsewhere in other jurisdictions.
96 Mr Kite further submitted at 71, the Full Bench noted at paragraph 60 of the Zoological Parks Board decision that the principle of condonation involved some sort of reciprocation or non-reciprocation. In the present case the respondent had applied the Food Award for some time based on certain advice at the time and later, based on further advice, had commenced applying the Aerated Waters Award.
97 Mr Kite also referred the Commission to paragraph 49 where the Full Bench also observed:
[T]he disputed clause must be considered in its context: Codelfa Construction at 348 and CFMEU v Delta Electricity at [44]. The title, parties to the agreement, objects and coverage clauses clearly indicate that the agreement applied to the functions of employees at Taronga Zoo. Thus, the terms of the agreement should be construed as concerning the operations of that special enterprise.
98 Mr Kite referred to the majority decision of the Full Bench decision of Re Hospital Employees Conditions of Employment (State) Award per Wright J, President and Schmidt J, where at 258 their Honours having identified the obvious difficulty with the construction of the provisions, subsequently attempted to identify some logic in the approach and words adopted by the drafters of the Award.
99 Mr Kite concluded that the proper approach to interpretation where the construction and language used is ambiguous was outlined by Mason J in Codelfa Constructions at 352:
The true rule is that evidence of surrounding circumstances is admissible to assist in the interpretation of the contract if the language is ambiguous or susceptible of more than one meaning. But it is not admissible to contradict the language of the contract when it has a plain meaning. Generally speaking facts existing when the contract was made will not be receivable as part of the surrounding circumstances as an aid to construction, unless they were known to both parties, although, as we have seen, if the facts are notorious knowledge of them will be presumed.
100 Mr Kite contended the issues concerning elements of conduct prior to the making of the relevant industrial instrument and conduct that was known to both parties as outlined by Mason J do not arise in this matter. Accordingly, it is open to the respondent to conclude that the Aerated Waters Award is appropriate to its Mudgee site operations.
101 Referring to the decision in Kingmill at paragraph 63, Mr Kite submitted the test to be applied in construing the true meaning of an industrial award, was to examine the actual words used and their plain, ordinary English meaning. This approach is consistent with the principles enunciated by the Full Bench in Bryce - the plain and ordinary meaning of the words used and the approach also taken in Kellogg (Aust) Pty Ltd per Hungerford J at 392-3; 395; Re Hospital Employees Conditions of Employment (State) Award (1999) at 255 - 256 per Wright J, President and Schmidt J.
102 Mr Kite referred to paragraphs 67 and 68 to reinforce the respondent's approach to the resolution of questions of interpretation:
67 The application of those principles, we think, should occur in conformity with general approaches to the construction of enactments and other instruments. In this respect, we note, with approval, the observations of Walton J, Vice-President, in Perisher Blue v Australian Workers' Union (1999) 91 IR 274 at 283 - 284:
Speaking generally, awards should be interpreted in a similar fashion to other enactments: Geo A Bond & Co Ltd (in liq) v McKenzie [1929] 28 AR (NSW) 498 at 503 ; Short v F W Hercus Pty Limited (1993) 40 FCR 511 at 520. In the construction of the general order, and in conformity with general principles of award interpretation, the Commission should consider the wider context of the making of those provisions. Burchett J in Short v F W Hercus describes this approach to the interpretation of an award as follows:
"The context of an expression may thus be much more than the words that are its immediate neighbours. Context may extend to the entire document of which it is part, or to other documents with which there is an association. Context may also include, in other cases, ideas that gave rise to an expression in a document from which it has been taken. When the expression was transplanted, it may have brought with it some of the soil in which it once grew, retaining a special strength and colour in its new environment. There is no inherent necessity to read it as uprooted and stripped of every trace of its former significance, standing bare in alien ground. True, sometimes it does stand as if alone. But that should not be just assumed, in the case of an expression with a known source, without looking at its creation, understanding its original meaning, and then seeing how it is now used. Very frequently, perhaps most often, the immediate context is the clearest guide, but the court should not deny itself all other guidance in those cases where it can be seen that more is needed. In literature, Milton and Joyce could not be read in ignorance of the source of their language, nor should a legal document, including an award, be so read." (at 518)