BLACK OUTLOOK FOR KAITANGATA MINERS

NZ Truth, Issue 1105, 3 February 1927, Page 1

BLACK OUTLOOK FOR KAITANGATA MINERS

Company Unable To Pay Wages Since December 2

WORKLESS ME-N SEEK GOVERNMENT HELP IN VAIN

T that time, so far as the miners were concerned, the position was quite normal andJ thoughts of the festive season were uppermo at m. their minds. On Thursday, December 16, the men went to .work as usual. The first Intimation of impending trouble came when W. M. Braidwood,, secretary of the Kaitangata Coalminers' Industrial Union of Workers, was notified that his presence was urgently required at the mine office.

Braidwood lost no time m reach-, ing the office of W. D. Carson, the general manager at Kaitangata, and there, he says, he received a shock to learn that Robert Lee '(managing director of the New Zealand Coal and Oil- Company, Ltd.), had sent word from Dunedin to the effect that no pay would be forthcoming. i Braidwood was also informed that Lee wished to see him m Dunedin, where he "motored with Carson. In the southern city they were met by Lee; who— according to Braidwood — explained the sudden stoppage of pay by stating that the company was m financial difficulties. \ : , He is further stated to have asked the union secretary to persuade the men to continue working until December 23 — the eve of the Christmas -New Tear vacation. The miners at Kaitangata agreed, but apparently they were not en- I

tirely satisfied with the 'position and frequent meetings of the union were called. Friday, December 17, saw a recorQ attendance of the union, meeting, when the chairman reported that Lee was unable to be present, but that Carson would explain matters- on his behalf. It is alleged by union officials that the men were told that 1 Lee had been appointed receiver for the. debenture-holders ,m England, to whom the company,- was reV. sponsible for something like. £90,000. . ; „ .; V; At this meeting Braidwood announced that the men.-did not feel disposed io continue working, for nothing, but— -i\& already stated— they did not" turn the company down. ■ On December 23 a further meeting was called and it was decided that ', the time had, arrived when legal, advice should be obtained. Tho holidays, however, prevented immediate action being taken. ■ s ■■' Just before Christmas the men had become anxious and the following tele-

(From "N.Z. Truth's" Kaitangata Representative.)

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gram was sent to Lee m Dunedin"; "Members indignant through wages not being paid; reply, for meeting today one o'clock what hopes there are." When the meeting resumed the situation was unchanged, but "negotiations were still proceeding." On December 25. the restless feeling permeating the men was ; indicated m the resolutions submitted, among which were the following: "That we take proceedings against the company at once; "That the deputation's report be received andthat the legal advic.e obtain- | cd v at Balclutha be . taken ', and acted upon; ' ' "That we telegraph Mr. Lee asking him to visit Kaitangata and meet the men with a view to his explaining the position to .'them." ; This last resolution was carried and the, meeting again adjourned. When the miners gathered on December 30 George Cairns, a trade union official, informed them that Lei* would

1 meet a deputatiori at the mine office at | two o'clock. - . | This proposal, however, did not satisfy the men, and the following motion was submitted to the meeting: ' "That we ask Mr. Lee to attend this meeting.". Although some of the miners were inclined to appoint a 'deputation, an amendment to this effect was given a very poor reception. The president and secretary were instructed to convey the men's decision to the managing director. ''■.■■. . When the meeting resumed the following resolution was carried: "That lio work be done (unless such work be safety work) until the company -meets its obligations towards paying 1 the wages of the men." At this stage the opinion was expressed by one speaker that the men should- be allowed to work if they were willing to do so. . ; Lee attended the meeting, and— accordirig to officials of the unibn— , reported that he was unable to promise that the wages due to the men would be paid. " ,

However, he is stated to have announced that before the end of the week he intended going to Wellington to approach the Government for assistance. Lee asked the men to produce six trucks of coal for the hospital and. the. cement works m order to retain the trade, \ The miners had no desire to inflict hardship on the hospital inmates and it was suggested that the coal should 1 be taken from a seam halfway down the No. 1 mine and - that it should be obtained by day labor. After the managing director had left the meeting it was decided to send .a deputation to Dunedin to obtain legal I advice. , " • While the president and secretary of the union were m the southern city on January 18 they met Lee at his office, where he is stated to have made' a certain offer. He is said to have asked the union officials to oersuade the men

to return to work, promising them that they would be paid for work ' done from December 1/ to 23. ' This, offer, it appears, was accepted by the men on the understanding that it was a case of "money :up or shut down;"! •; '•• ■ Lee, the men declare, found that he could riot meet his own terms and the patiehce of the. long-suffering miners was exhausted;; The union officials had agreed at the outset to refrain from disclosing they .position to the Press, but m view, of the final blow, they considered it unnecessary to ' maintain secrecy any longer. • \ Legal advice was received by the union officials on January 15 to the effect that under section, 22B of the Mining Act, : 1926, it did not appear that the men "had any hope of securing liens over the company's assets for their wages. o In the course., of th eir investigations the union's legal advifeers are stated jto have found that there was a mortgage held by debenture-holders for i £90,000 over the company's titles and.

that the company was not registered In New Zealand. It was evidently registered overseas and was being carried on under a power of attorney with the debentures so arranged as to give the greatest amount of protection to holders. v The Companies Act, ,1908, provided that m the event of liquidation protection was given for two months' wages, but It referred principally to.com--panies registered in' New Zealand. If the N.Z. "Coal and Oil Company, Ltd., was a foreign company it appears that it might be. wound up m New Zealand under section 310, and m this event section 249. gave tha men preferential treatment. ■ ■ . It is apparently doubtful, however, whether the expense involved m adopting such a course would be justified.; The union's legal advisers are stated to have expressed the opinion- that the managing . director (Lee) would do everything possible 1 - to secure the money and that it might be inadvisable to take hostile action. A meeting of the union which considered this legal bulletin decided ip communicate with the Hon. G.J. Anderson, Minister of Mines, who was then visiting his Mataura constituents, and to telegraph the "Hon. W. Downie Stewart, acting Prime Minister, asking him to' secure work for the men. . % A deputation interviewed the Minister of Mines at Balclutha and he is reported to have expressed < (Surprise that the legislation did not afford sufficient protection to the miners m regard to wages, promising to have it amended next ses- '. sion. '■•.-. . ._.,_ '■••■/ ■ •.- • .

. a further communication from the union's legal advisers was more hopeful.. - „ . It appears that they recommended that steps should be taken to have the company wound up m England, where it was i*egisterecl. , Although they could hot guarantee that the proceedings would be effective, they thought it advisable to t take the chance. ■ The sum immediately . required was £120. . „. The necessary authority was at >. once given the union's legal advisers and the latest cable advj'ce from England is to the following effect: . "Everything going more than satisfactorily." ' - The position at present is that sonic 1750 , inhabitants of Kaitangata ' are suffering, severe hardships. The whole township depends on the cOal industry. ■■A t number of the men have gone to the West Coast, but m the majority of cases . their ■ search 1 for work has been m vain. , Up to the time of going to press the management had refused to make any statement for publication.