DIRECTOR TO PAY UNION FEES

Southland Times, Issue 23651, 28 October 1938, Page 6

DIRECTOR TO PAY UNION FEES

MAGISTRATE’S DECISION

An important ruling whether a company director who substantially controls a part of the company’s business is liable to join a union was given in the Magistrate’s Court at Dunedin yesterday morning, states The Evening Star. This was made in a reserve judgment given by Mr J. R. Bartholomew, S.M., in the ease heard a fortnight ago in which the Otago and Southland Shop Assistants’ Union proceeded against Philip Arcus Gosney on a claim for £2 12/-, the amount of arrears of contributions to the union to July 7 last. Mr J. C. Mowat appeared for the plaintiff union, and Mr E. J. Anderson for the defendant. After traversing the evidence, the Magistrate said the defendant’s salary was recognized as a special remuneration for doing other than a director’s work. He received his salary not qua director but qua manager, and occupied a dual position in the company’s busi-. ness. Such a position was well recognized under the Companies Act. The defendant’s position might be a most anomalous one as a member of the union, but at the time of his joining he came within the provisions of the law then in operation. The defendant, as an adult person employed by the company in the industry, was under obligation to join the union. This membership continued until duly discharged under the union’s rules or by statute. Judgment was therefore given for the plaintiff union for thd amount claimed with costs 10/-, and solicitor’s fee £1 6/-.