THE “POISON” MEMORANDUM

Evening Star, Issue 22354, 2 June 1936, Page 11

THE “POISON” MEMORANDUM

BANK OFFICERS’ GUILD CHALLENGES MINISTER NNOEMNATION NH JUSTIFIED [Smcul to th* ' Stae.’l . WELLINGTON, June 1. So that “ the fair-minded public may judge ” whether the condemnation by the Minister of Labour (Mr H. T. Armstrong) was justified, the Executive Committee of the New Zealand Bank Officers’ Guild has released for publication'the text of a confidential memorandum to all bank officers throughout the Dominion which the Minister in an interview this morning described as “ deliberately misrepresenting the position as regards unionism ” and as “ poison.” A special meeting of the executive of the guild was held to-night to consider the reply, and this was issued under the signature of the president (Mr V. C. S. Edwards). The text of the memorandum to which the Minister referred, reads as follows:

“As you are, no doubt, aware, a recent amendment to the Industrial Conciliation and Arbitration Act of 1925 makes provision for the registration of New Zealand industrial unions of workers. As this may have an effect upon the position of bank officers, the Executive Committee of the guild has of late given the matter very careful and close attention. The effect of the legislation has been very much exaggerated in certain quarters, and various rumours and opinions have been current. To clarify the position it was deemed expedient for representatives of the guild to interview the Prime Minister and the Minister of Labour with a view to ascertaining what effect the amended Act would have on our guild. Legal advice has also been obtained. “As a result of the advice received and after having given this important matter full and earnest consideration, the Executive Committee feels that, as the guild is a purely democratic body, it is for the members individually to decide by ballot what form their organisation _ should take—a continuance of the existing guild or registration as a union under the Industrial Conciliation and Arbitration A voting paper is therefore enclosed herewith, so that you may indicate your preference. In an endeavour to assist you to arrive at a decision we present hereunder a brief summary of what appears to us to be the vital factors:—

“ 1. A union would have power to apply to the Arbitration Court for an award covering salaries, hours of employment, and general conditions as to the terms of employment of bank officers. /

“2. As far as we can ascertain registration as a union would not directly interfere with our allied activities.

“ 3. If the union were registered it 'would consist of bank officers onlv.

“ 4. Membership of the union would be compulsory for all bank officers in the event of_ an _ award or industrial agreement being in force and the employers being bound thereby. In such event the employers must employ unionists.

“5. If it is decided not to register as a union we have the assurance of the Minister of Labour that we shall not be absorbed automatically in the general clerical union. “ C. Control of the union would be vested in representatives appointed by

members in a manner very similar to the method provided in the rules of the Bank Officers’ Guild.

“ 7. Registration as a union does not necessarily involve seeking an award from the court,or arranging an industrial agreement. Such actions would depend upon provision in the rules, probably decision of the Management Committee. Many unions registered in the past have never applied for awards or industrial agreements. “8. While it is usual for an award to be sought by the employees, the Conciliation Council and the Arbitration Jlourt are available also to the employers if they consider any variation of conditions is justified. “ 9. While it might not immediately be deemed necessary to apply for _an award upon registration as. a union, this would no doubt eventuate in due course. It would be the main reason for the formation of a union in the minds of many officers. The experience of our Australian friends has been that court proceedings involve considerable and perhaps excessive expense, and in some cases a special levy on members. “ 10. If the union is registered and an award is subsequently applied for and obtained, the general effect would be a levelling of salaries irrespective of the merits of individual officers. Furthermore, the award rates would not necessarily exceed the general average of the salaries paid by the banks at the present time. It is possible that the average might be lower. The possibility of retrenchments should also be borne in mind.

“ 11. Registration as a union would, we feel, immediately endanger the present friendly relationship between the employer arid the employee, which, if not at once, would tend particularly, if any unfavourable award were obtained, to jeopardise or curtail many of the valuable privileges granted by the banks to their staffs and to the guild. We would mention —(a) interest on accounts, (b) liberal treatment for sick leave, (c) contributions (usually substantial) to the pensions funds, (d) special leave for various reasons, (e) special facilities and concessions to the guild’s organisations. ° “ 12 In working under an award the conditions of employment would be much more rigid to avoid the necessity for overtime. Members would lose many of the personal privileges and liberties at present enjoyed. The question of hours of employment and overtime is being dealt with by the Government and will have a general application whether employees are members of a union or not. “ 13. While we feel that we have the goodwill and sympathy of the present Government, it is quite possible that in the event of a political change a new Government might regard and treat Us less favourably as a union than as a guild. . . . “ 14. The tendency of a union is to become a political organisation, while the guild, although at the last election opposed to the nationalisation of banking, is non-political. “ 15. Under the Act it has always been possible for bank officers to apply for registration as a district union. The Act as now amended provides that if a union were established having a branch in at least four of eight industral districts, application could then be made for registration as a New Zealand union with the concurrence of the Minister of Labour. “ 16. Registration as a union is recommended by both the Prime Minister and tho Minister of Labour, the reasons given by them being that we would be in no worse a position, and would thereby prevent the registration of a union by dissatisfied bank officers. “ 17. If the present vote is against the formation of a union we are not precluded from taking steps to form a union ami to apply for registration at a later date if members so desire.

“18. If registration is effected it would perhaps be difficult to have the registration cancelled if a union was subsequently found to be to our disadvantage. ‘“l9. As it is well known that our employers do not favour a union, we feel perhaps not altogether justly, that any future representations made by the guild will bo treated with more thorough and sympathetic consideration than has in some cases been evidenced in the past. In other words, we would obtain the benefits of a union without its disadvantages. This statement is not made in any sense as a threat to our employers. It is merely logical. “ 20. As as we can fairly judge, viewing the matter broadly, the guild organisation has been more successful than the union in existence in Aus- “ 2i. If tho result of this ballot is in favour of the formation of a union it is proposed to place the matter before the Executive Council of the guild for consideration forthwith. If is not the wish of this committee in any way to influence . your voting. On the other hand, we feel that many members will expect some indication of our personal opinion on this matter After carefully considering the question from all angles, we feel that the present Government jis well-disposed to employees, and that registration as a union is unnecessary. In view of the strength and influence of our existing guild you will appreciate that this matter ia one of paramount importance, and we would earnestly request you to weigh the matter very carefully before completing your ballot paper.'” In reference to the above statement the Executive Committee of the guild makes the following comments: —

“ Although the memorandum was a confidential statement to bank officers, in view of the Minister’s strictures, we give the full text of the memorandum to which the Minister takes exception. In oui opinion the memorandum is an impartial presentation of the facts and we leave it to a fair-minded public to judge whether it merits the condemnation of the Minister. While it is perhaps unusual tor a memorandum to be forwarded with a ballot paper, we consider we were fully justified in adopting this course. We submit that the ballot is not a ballot in the true sense. It is not to decide whether or not a union for bank officers is to be established, but is merely to test the feeling of bank officers, the great majority of whom are unfamiliar with the pros and cons of the case. The final decision as to what course will be pursued will rest with a conference of delegates from all parts of the Dominion, which will meet in Wellington later in the month.

The necessity for the memorandum was further emphasised by numerous requests for information received at the guild office from outside districts. The Executive Committee has made no efforts to influence bank officers in their voting. While the Minister considers that the memorandum from start to finish misrepresents the position, we understand that he takes particular exception to clause five, which he now says is an incorrect statement. This clause was embodied in the memorandum as the result of an interview between the Minister and two members of the Executive Committee. At this interview it was indicated to the Minister that probably a ballot would be taken. It is obvious that if the statement made in clause five is incorrect there would be no object in taking a ballot if the alternative to forming a union of bank officers was automatic absorption in a general clerical union.