Misuse of union funds alleged; inquiry ordered

Press, Volume CXIV, Issue 33626, 30 August 1974, Page 1

Misuse of union funds alleged; inquiry ordered

(New Zealand Press Association)

WELLINGTON, August 29.

Ihe Labour Department has been asked to investigate an allegation by the Senior Opposition Whip (Mr J. R. Harrison) that money intended for a union research fund is being used to supplement a union executives salary.

Air Harrison said during debate on the Labour Department Estimates that the Coach and Motor Body Makers’ Union had paid more than $9OOO into a union research fund over the last two years and that it was believed the money was going to a union executive.

The research fund was set UP bv the boiler- ‘ ~l a .,a makeis, coach and motor body and moulders’ unions. In 1973, S4BOO was given to the fund and $4600 in 1972, Mr Harrison said.

He asked the Minister of Labour (Mr Watt) to find out who runs the foundation and, “is it a cover for union officials to get higher salary? Is is taxable?” Mr Watt said that if Mr Harrison had the information on the funds, he should have given it to the department. The audited accounts of the unions showed nothing, but “I won’t tolerate that sort of thing and will have it investigated. The department wiil get on to it right away,” Mr Watt said. "’No ob jection'' Mr Harrison said outside the House that he had not told the department because he had received the information only today.

This evening the secretary: of the Coach and Motor Body Workers’ Union (Mr J. L. Williams) said in a telephone interview that there would beno problems if the Labour Department wished to investigate the union’s accounts.

“This is something they are entitled to do and we would have no objection” he said.

Mr Williams confirmed!' that there was a research' 1 fund which was used to pay L a researcher. L mon town During the debate in Par-i liament, the activities of the Tokoroa Trades Council were attacked by the Leader of the Opposition (Mr Muldoon), who said that the council had turned Tokoroa into a “trade union town.” Mr Muldoon demanded that the commission of inquiry into allegations of malpractice in the Engineers’ Union be widened to cover all allegations of union mal-j practice in Tokoroa. A number of other allega-) lions affecting the workforce! in Tokoroa overlapped the allegations passed bv the Onposition to Mr Watt, said Mr Muldoon. This list of allegations concerning the Engineers’ Union resulted in Mr Watt’s setting up the inquiry. Allegations concerning the Boilermakers’ Union were equally serious, Mr Muldoon! said.

He referred to the picket-

ing of a Tokoroa clothing jLanes Sportswear, by the Trades Council. He said that the factory workers had already agreed to a settlement with their emPayers but the council was on something Mr J. B. Bolger (Nat., King Country) referred to a complaint from a union member about the activities of a Boilermakers’ Union delegate at Kinleith. Awiki Wickcliff. Mr Wickcliff was earning about SBO net a week. The union members on the site were levied a dollar a week for the delegate’s fund, said Mr Bolger. The union member had complained to the Labour Department about this levy but' had been told it was a matter between himself and the union.

“He should have been able to expect a realistic reply,” said Mr Bolger. Mr W. L. Young (Nat., Miramar) said the Opposition believed Mr Wickcliff was engaging in “industrial black-! mail” and he should not be! allowed to continue. “Not illegal" Mr Watt said he did not know if Mr Wickcliff was collecting levies and subscriptions in relation to union rules or not. “Anyone would think the way the Opposition talks that levies and subscriptions are illegal. It was a National Government that said they are legal.”

The Minister of Justice (Dr Finlay) in response to Opposition calls for the inquiry to be broadened, said the Government and unions were entitled to ask how far the Opposition wanted to go. “There is nothing more damaging,” Dr Finlay said, “for both employers and employees, than a furtive inquiry. The inquiry would have to be very exact — its terms would have to be precise. There is a lot of harm in an inquiry into undefined things.”

The Deputy Leader of the Opposition (Mr Taiboys) said the Government was adopting the standard Labour Party response of alleging “union bashing” and “finding Reds under every tree.”

Mr L. R. Adams-Schneider (Nat., Waikato) said that even during the debate people were putting in toll calls to the Opposition and alleging malpractice. Mr Watt said the inquiry had been called at the request of the Engineers’ Union, not the Opposition. He agreed with Opposition speakers that it was a pity people other than members of the Communist Party did not take a close interest in union affairs, but the Communist Party was not an illegal organisation. Secrecy sought Mr Muldoon asked for broader terms of reference for the commission of inquiry into the Engineers’ Union, and for the commission to hear some evidence in secret. He denied, however, that he wanted his evidence or that of the Opposition’s spokesman on industrial relations, Mr .1. B. Gordon (Clutha) heard in secret.

“I am prepared to go before the commission and say what. I have to say in public and I hope it’s publicly recorded,” Mr Muldoon said.

“1 regret the Tokoroa incident reached the public,” Mr Gordon said, “but in the interests of keeping harmony in the House I won’t take it any further.” He agreed with Mr Watt that a broadened inquiry should not include all unions.

The inquiry’s terms of reference would be wide enough to include not only the allegations already raised but other specific matters, said Mr Watt.

Mr Watt said he had received a number of complaints against unions, and “the ones serious enough have been referred to the department. for report.”