REEFTON MINING CONTRACT DISPUTE

Grey River Argus, 22 January 1912, Page 6

REEFTON MINING CONTRACT DISPUTE

THE REAL FACTS,

(Communicated)

In view of tho many misleading statements which have been circulated regarding tho above dispute the mining- companies interested desire to lay before the public the real facts which led up to the trouble, and to place on record the present position. Contracting-, both surface and underground, chiefly the latter, has been a well known and recognised feature of mining" in" -Reef ton, field ever since its inception 30 years ago. The specifications during the whole of that period provided for 25 per cent detention money, which was to be held as a guarantee for the performance of each individual contract. In June last some slight .difference of opinion occurred between the Miners' Union and the Keep-it-Dark Company with reference to drawing up specifications for sinking that company's main shaft. After a friendly conference between the Union and Company satisfactory specifications were agreed upon, and these provided that 25 per cent should be retained out of each progress payment as detention money. The Union ■ described those specifications then as perfectly satisfactory and they should serve ?.s a model for, the whole field A little later the management of the Consolidated Goldfields Limited also arranged with the Union for a new. set of specifications covering- rising*, sinking-, driving and stoping, providing; for only 10 per cent detention money but with one or two other, clauses advantageous to .that- company inserted, but these concessions were not granted to the local companies . as well. These specifications were published by the secretary of the. Union in the "Inangahua Times" of the ■ 27th November, 1911. * The Union were at the time informed that although ten per cent only was retained by the Consolidated management, if there was any interference on the part of the Union with local mines who had agreed on 25 per cent the Consolidated management reserved the right to withdraw their "ten per cent clause" and re-instate the °W rate of percentage, namely 25 per cent. 'Next in sequence of events the New Big River Company called tenders for a long drive and .copied the Keep-it-Dark (approved) specifications for their main shaft, which contract was then running, and those specifications (Big River. Company's) provided for a 25 per cent .detention money, the same as in the Keep-it-Dark specifications. The Union objected to the Big River Company,' s Specifications chiefly on account of the percentage clause and thereupon the Consolidated Goldfields management notified the Union that in all . their future contracts they would revert to the old scale of detention money, viz., 25 per cent, Hence the dispute at this stage between the Miners' Union and the companies was as to whether 10 or -25 per cent respectively should be retained out i-i progress, payments on all mining contracts. The "dispute" then was ? demand by the Union to reduce th? usual and recognised 25 per cent to 10 per cent which the companies cci-ld not see. their way to agree to- Short- 1 ly before this the companies interested included stoping contract system, believing it was in their best interests that they should have the option to let contracts for stoping- of stone as formerly. A ballot of the Union was taken and resulted against the contract system for any class of contract whatever. Shortly, before Christmas a conference was held between the companies and the representatives of the ; Miners' Union, but nothing definite resulted. Matters remained in this position until Saturday, 13th inst., when another conference was held, the mining companies being represented: The Blackwater Mines, the Progress Mines, Consolidated Mines, by Messrs Evans and Johnston ; the Keek-itrDark I by Mr J. Wills, and the New Biff 'River | by Messrs Lee and Castle. The. New Zealand Federation of Labour was represented by Messrs Armstrong and Fagan, and the Miners' Union by Mr H. Gillen. The companies submitted draft specifications for sinking, driving, rising, and also for stoping. After considerable discussion Mr Armstrong, speaking- on behalf of the Labour delegates,, stated they would not accept stoping- contracts in any conditions but on all contracts relating- to development work, such as driving, rising, etc., they were prepared to accept specifications which included not more than 10 per cent detention money The mining companies' demand on this matter was, and is. the same as when the dispute first started, namely, the standard rate of 25 per cent , detention money. A report has appeared in the public press that the Union ■ delegates submitted specifications admittedly fair to both, parties for development work; — rising, sinking and driving. Tho real facts are that the Union delegates never submitted to the conference ono line, of any proposed specifications and that Press report further omitted to state that the Union would not accept any specifications which provided for more than 10 per cent detention money, and this is the matter over which the ''whole dispute" has arisen. The Press report of this conference also stated that Messrs Wills and Lee, representing respectively the Keep-it-Dark and the Big. River companies, were prepared to stand or fall by Mr Evans. This statement is contrary to fact ; the local companies' representatives being in full agreement to adhere to the whole of the above specifications submitted for all forms of contracting. The position is exactly the same as when it began, namely, the Union demand only 10 per cent detention money on all development contracts (sinking, rising and driving), against tho old standard rate of 25 per cent demanded by the companies, and the latter also demand to be allowed the optional right of stoping- by contract when necessarySince then, the Murray Creek Gold Mines, who own the Phoenix and Inglewood mines, has called for tenders for sinking their main shaft upon specifications submitted to the Miners' Union which provide for 20 per cent

detention money out of each fortnightly progress payment. These are the "facts and they speak for themselves Practically all coal mines are worked on contract only and it may not be generally known, but it is a fact, that stoping on contract extensively prevails, and has for many years, amongst the North Island mines as well as the Waihi, Waihi Grand Junction, Talisman Consolidated and the New Zealand. Crown mines are all at present Avorking on the stoping by contract system. The companies here do not desire to make stoping on contract universal but only desire to have the right to let such contracts where considered necessary. It will be seen that the companies do not desire to introduce any new method but merely to uphold what has been in force since the beginning of the field to which they cannot see any reasonable grounds of objection. The companies offer special conditions for stoping, which include 1. — No idetention money. 2. — 10s per man per shift guaranteed The guarantee clause interpreted means that should any party of stoping contractors earn on their contract an average amount of less than 10s' per shift per man the company will make up their earnings to 10s per shift per man. For example : supposing a party of eight men average only 8s per man per shift for the last pay at the set contract price under which they are working-, then the company undertakes to pay each man the extra 2s per shift to bring the entire party up to 10s per shift per man, and furthermore assuming- that during the following period the party averages 15s per man per shift, this 15s will be unassailable and no deductions whatsoever will be made to refund to the company the 2s per shift per man made up during the previous period when the men averaged only 8s per man per shift