COURT OF APPEAL

Evening Star, Issue 22804, 12 November 1937, Page 12

COURT OF APPEAL

LAW POINTS IN AWARD SETTLED [Peb United Peess Association.] WELLINGTON, November 12. The judgment of the Court of Appeal was delivered in the case of Frederick Wilson, inspector of factories, New Plymouth, v. the Cardiff Co-operative Dairy Company Ltd. The questions of law in this case stated for the opinion of the Court of Appeal by the Court of Arbitration involved consideration of section 15 (3) of the Finance Act, 1936. By this section wages under awards which are in substitution or replacement of other awards or industrial agreements in force on May 29, 1931 (when tho general order was made reducing the rate of pay under all awards) are to bo increased back to the original rate. The matters for determination were: (1) Whether the Taranaki creameries, cheese, and butter factories employees’ industrial agreement of September, 1934, which applied to the respondent company, was in substitution or replacement of an award of 1930; and (2) if so, whether a certain employee of the respondent company was by virtue of the above section entitled to certain holiday pay as provided in, the award of 1930.

In his judgment the Chief Justice stated that ho differed from the other members of the court in his answer to the first question, which he answered in the negative. In his opinion the natural meaning of the words “ In substitution or replacement ” meant substitution or replacement of something that previously existed, and on examination of all the relevant facts and circumstances of the present case the industrial agreement of 1934 did not take the place of the 1930 award. On the second question he came to the same conclusion as the other members of the court—that this should bo answered “ No.” In separate judgments Mr Justice Smith and Mr Justice Fair held that the first question should be answered << Yes,” as the industrial agreement of 1934, in their _ interpretation of the statutory provision, was in substitution or replacement of the 1930 award. The judgment of the court accordingly is that the first question is to be answered in the and the second question in the negative.