The Dominion. THURSDAY, AUGUST 26, 1909. TRADE UNIONS AND THE LAW.

Dominion, Volume 2, Issue 596, 26 August 1909, Page 4

The Dominion. THURSDAY, AUGUST 26, 1909. TRADE UNIONS AND THE LAW.

. An interesting point is raised by - the Christdiurch Press, in discussing tho declared objects of- the proposed Shearers' Union; which recently adopted a constitution and which will, doubtless apply at an early date for registration. One of the objects of the proposed union is declared to-be "to gradually replace the present- competitive system; of industry by a co-operative system," another is "to endeavour by political action to secure social justice," and a-third is "to assist in the emancipation of labour." r The Press questions the eligibility ,of a tody with such objects for registration as a trades union, and it quotes the Act to show that a union must consist of workers, "lawfully associated for the purpose of protecting or furthering tho interests of workers in or in connection with any specified industry or industries." The scopo of union activity and the purposes for which statutory recognition and statutory privileges aro given, to trades unions may be gathered from the definition: of the "industrial matters" which may be ! made the subject of "industrial agreements." Those aro all dear and cosoioto, such as .hours and cbndttibas of

labour, wagcß, employment and dismissal, preference to unionists, and the liko. Our contemporary contonds that registration should be denied to the proposed union on the ground that "tho Legislature, when passing , the Act, did not contemplate it being used for the purposes of Socialistic propaganda." That is perfectly true, and oven to-day there are many unions which realise the difference between trades unionism and Socialism and which aro anxious to - keep the unions On the right lines. But it seems to us that our contemporary could havo found a much more powferful argument in support of its contention than the indubitable intention of the Legislature. We believe that if the matter were Carried through tho Courts it would be decided that the privileges of the Act can only be obtained by bodies which have ccrtain limited objectives and which behave within certain limits of activity. . The caso against permitting avowedly Socialistic organisations to obtain the benofits provided for properly-defined trades unions, is in essentials exactly the same as the case against, tho use of trades union funds to pay members of the House of Commons. We may recall to the attention of our readers, the important decision in which the English Court of Appeal decided that, trades unions operating under the law must keop within certain bounds. The secretary of a British trades union brought an action to restrain the union from distributing money for any objects other t(ian those mentioned in Section 16 of the Trades Union Act, 1876. The point raised was whether the defendant union was entitled to ally itself to the Labour party, whoso objects and policy, it was contended, led to Socialism. Mn. Justice. Neville held that the union could spend its' money' in any way that it thought would best assist its policy forward. This,; decision ,was appealed against, and the Court of Appeal unanimously 'decided against Mr. - Justice . Neville. The substanco' of. the Court's decision is. contained in this extract from the judgment of the Master of the Rolls:

The Act in Section 23 defines a trade union, as follows:—-vl he term trado union means such combination,' whether temporary or permanent,' forregulating the relations between workmen and, masters, or between workmen and workmen, or,.botweon .-masters and. masters,; or for imposing; restrictive, conditions on the conduct of any trade or business as'would, if, this Act' had not passed, have been deemed to be an unlawful combination by reason of; some one 1 or more of its purposes being in restraint of trade. Provideu that this - Act shall not affect :—(1) . Any agreement between partners lis.to'their own business.';( 2) Any agreement between' an employer and those,' employed by him as to such employment.. . (3) Any agreement.. in consideration of the sale of the goodwill of_ a business or. of .instruction in any profession, - trade, ; or handioraft." The' Act itself shows': that ifhe provision of benefits to members was known by Parliament to bo, and sanctioned by Parliament, as being withiri the scope of a trado union; see specially Seotioh 4 (3a) and the, first schedule. Section 2.' 1 see no reason to doubt that -the objects of the defendant union, as originally expressed, were author-' ised by the Act.' But; it is argued that a trade union, registered under, and claiming the benefit of, the Act of 1871, and thereby constituted not a corporation, but a species of.. quasi-corporation, can,' in addition to the objects plainly indicated in : the statutory definition of trade union and' ■in ' the other sections of_ the Act, With any provisions merely ! ancillary to these: objects, also • add ahy other object not otherwiso illegal. Thus it ,may carry on a trade subject only t«o the restrictions. as to the number of members imposed.by ;Sectiori';4 ofi'the Companies' Act,: 1862; or it may devote its funds to the promotion of 'any .-'political 'or'religious party, or to the encouragement of any athletic sports; and it'will; none the less be a' trade union,■ with all. the rights, "privileges, and disabilities of a trado union. I am unable to accedo to this argument. His Lordship went on to point out that the union .could not "add to its objects something wholly distinct-from the" objects contemplated by tho. 1 Trade, Union Act:" "Trade unions," he said, "comprise member's of every shade of political opinion, and I cannot think it is the intention .of the Legislatulte . that itshould be competent;to a majority of the members to compel a minority to support . ... political opinions which they may abhor. . . . It seems to me extravagant to suppose that the immuni-l tie's and exceptions conferred by the Act, can have been, intended; to apply to any business which a trade union might add to what I may call / strictly trade union purposes. . . -v : . I cannot concur in the viow that there is nothing to prevent a trade union from having a great number of additional, objccts besides." The, Acts which have been passed in this country to foster trades unionism were certainly not passed with the object of granting unoxampled 'privileges to the promoters of the Socialistic movement. The average British'trades unionist"l would be. Very much astonished if he were, to come to New Zealand and see what trades .unionism has become.. We have little doubt, as We have said, thatthe Courts, would hold that many of the trades unions have; forfeited the privileges conferred upon them by Parliament.; Nor is there much doubt that it was unnecessary to make express provi-. sion in . last year's Arbitration Act against the voting of. union funds for the iassistance of strikers.'The unamended law would have fully met this infringement of its principles. if the Government had had the courage to resort to the Courts. We do not suppose that'there; is anyone willing to test the points we 1 have been discussing; and we'have little doubt that the Shearers'. Union will be granted registration. It would be. a good thing, however, if a test case were brought to ascertain how far the proper purposes of the trades unions can be perverted without the forfeiture of the privileges conferred on the, unions by Parliament. ,