A CLOSED MINE

Evening Post, Volume CVII, Issue 131, 7 June 1929, Page 10

A CLOSED MINE

WAGES REDUCTIONS

MEN SEEK HELP

REQUEST TO MINISTER

A request to the Minister of Mines (the Hon. ,W. A. Veitch). to use his influence to have the Shag Point Coal Mine reopened was made to-day by Mr; H. E. Holland, M.P., and Mr. A. M'Lagan, representing the United Mine Workers of New Zealand. It was stated by Mr. M'Lagan that the company had sought to,impose a reduction of 10 per cent, in the miners' wages, and that when this was declined notice was served on the men of intention to close ' the mine down. The mine had been closed' since 28th March, despite the fact that' a wages agreement was still in force.. Mr. M'Lagan contended that there was no', ease fora reduction in wages at Shag Point. The company claimed that the men averaged ten shifts a fortnight last year, but actually they had worked under nine shifts. : In the southern mines the men; worked better time in the winter than in the. summer, but at Shag Point the time worked was fairly uniform all the year round because of the better quality of;the coal. The men's earnings were less than the company said,.being £1 Is 4d per shift for hewers for the last six months, that • was, after deducting the cost per man •of explosives and tools. In. the' case of truckers, their earnings were from ninepenee a day to 2s 6d a day lower than those of any other men in the district. The wages of the ' shift men- were, the same as elsewhere namely Is 6d to 2s 6d for hewers. As far as wages arid , time worked were concerned, the average weekly wage .received did not . permit ;of a further reduction in. wages. The men were living under bad housing conditions, being accommodated in little mud huts which were fit only for fowlhouses. The housing conditions were worse than at any other mine. The standard of living of the'men was Lnot such as would permit of any reduction. It was claimed that while the financial position of. the company might be bad; it could be improved by .different methods than wage reductions. The union had suggested to the company that it, should not demand wage reductions; in the meantime, but that it should seek increased Government orders arid better prices, and that it Should ask the owners of the land in which the mine, was located- for a reduction in royalties.; -The owners of the land had been, drawing £600 a year jn royalties. -If these could be reduced the company .would obtain substantial relief.: There were roughly- 80 men, making with dependants 280 per-: sons in all, depending upon the mine. If the mine were closed.altogether sonic' alternative work would, have' to .be found for the men, arid that would be difficult because' the district was a farming one. The .mine was a national asset, as its coal .was valuable for railway and other purposes. Tho State should do something to keep it going. :■ ; -„•-):.;" ..';■■ -■■■'„ -.. COMPANY'S FINANCIAL POSITION. . The union's representatives had asked the company's representatives to join ,with them in suggesting how the financial position could be approved, but they had declined, saying that they' would .put the men's proposals , before the directors; but ;would not recommend their acceptance.' .The union had sub-

sequently been informed that th« directors had turned the - proposals down. The company had closed the mine, and the men claimed that they had been locked out. There could be very little doubt that the reason for closing the mine down was to bring pressure on the men to accept the company's proposals for reduction in wages. The men claimed that the company should reopen the mine.urider the'terms of -the existing agreement before negotiations, on the basis of the company's demands' took place, and, further, that every possible means of getting assistance for the company should be explored before negotiations were entered upon. The union should not be asked; to negotiate when it was in the dark as to the com.pany's position. Before the Conciliation Council'in May the company's representatives stated that they could not guarantee that the mine would be reopened if any arrangement was made with the men's representatives. The company had since adopted the union's suggestion regarding approaching the owners of the land.for a reduction in royalties and asking the Government for assistance, but it was coupling that with the demand for reductions in wages,- stating that the reductions: were necessary. The company was offering a reduction from the original 5 per cent, for hewers and'sixpence per day I for truckers to 10 per cent. 1 all round, except in the case of minimum wage men. That would mean putting all the hewers and truckers: on the minimum wage, which would be absurd, because no. company could work a mine on the minimum wage.; Every practical man in the coal industry knew .that. The company's demand for a 10 per i cent, reduction was • absolutely ridicu-1 lous, and he believed that the company's representatives admitted that. The union was asking the, Minister to use his influence with the:company to have the mine reopened on; the terms of the existing agreement, after which the men would be prepared-to negotiate with the company, but first.of all the company should agree to every possible avenue of assistance being explored. The company was threatening to wind up, but it had not! done so, but if it did go out of business the men asked that the Government should find alternative employment for them. "The prospects ahead of the mine were better than a year ago. The-main difficulty : was the thinness of the seam, but apart from that the working costs were low. The men were earning less. than the miners elsewhere, but;wages;costs were lower than hr any other-mine in the | country. The men.had not insisted on ; the erection of bathhouses as they-might I have done, but had tried in every possible way to meet the company. It had been costing the company more to keep ( the mine closed than it would- have done to keep it going, because while no coal was being produced the salaries of certain of its staff were being-paid.. It must have cost the company £250' to keep the mine closed for: two months. THE MINISTER'S POSITION. . Keplying to the deputation/ the .Minister said that ,he was' tremendously anxious -to do: what' he could to settle the matter, but it was. obvious that he could not interfere in ' details which would form the matter of discussion in the Arbitration Court' later. He;urider- j stood that the company was anxious to I obtain more capital reopening the mine. - It might be possible to get the .mine reopened on the'understands! ing that both sides would accept the ' decision of the Arbitration-Court when it was made. ■ ' ' - :•■'■■■■ ■-■■•< ' ■ ■".• : Mr. Holland raised the question as :toi what was the position when a company: ! closed down after "■'failing;.fb -secure the agreement of its employees to a reduction in wages. ' ■'' ; ■ ■"■-•'■•'■ ' "'■''■ The Minister replied'that that was a matter for'the Court to decided sonally, he thought it would be very unwise- to : direct any 'aggressive action against the -company; in the present case. So far as the, reopening of the mine was concerned, he! thought he right thing for him to; do .would be to make sure that any action he tnight take was constitutional ;and was not encroaching on the rights'of either parties to the Arbitration Court .dispute. If ho could bo assured o. that he would be glad to ascertain on what basis the mine was . concerned, he thought the time.. He was, hopeful that it wouldbe possible to prevent the mine closing down. He would <a glad to do what he could to settle the; matter. - If the mine did close down altogether he would be glad to consider sympathetically any suggestions as to how the men affected could be absorbed. Mr. Holland: "The main thing is to concentrate on the mine being reopened." The' Minister: "Yes.'f. Mr. Holland: "-That would not conflict with anything before the Court." The Minister; "I think that is so."