H.—ll

V

of incompetency so as to work below the minimum wage named in the new award. Much attention would not have been called to the incident had not the newspaper press printed and telegraphed abroad notices of " the lock-out in Auckland." It was not unnatural that attention was excited far beyond the bounds of the colony, as there had been a belief extant that strikes and lock-outs were impossible under the Arbitration Act. It was proven afterwards that there had been no lock-out, as all the firms engaged in the dispute had continued in business, only selecting certain workmen for dismissal, or, rather, " suspension," on the ground that these persons could not earn the new wage awarded by the Court. Of course to the seventy persons in question it was practically a lock-out, since they found themselves in the street through no fault of their own, as even if they had been willing to acknowledge '■ incompetency " the secretary of the workers' union (who was applied to by one or two) refused to consider as incompetent men who were earning the minimum wage when the new award was delivered. There were engaged in the local furniture trade before the suspension about 360 persons. Efforts were made by the Government to induce the employers to reinstate the workless men, but without avail, and the case was brought before the Arbitration Court by the Registrar of Industrial Unions on the ground that there had been a combined effort to defeat the award. Combination could not be proven unless the employers themselves admitted agreement to discharge, and they denied having even an understanding among themselves as to the suspension of their operatives. The Court decided in favour of the employers, and considered that no breach of award had been proven. In the course of the conduct of the case, however, the President made an important announcement —-viz., that if a combined and concerted action,' such as a strike, took place, he would consider such action a breach of award, and punish it severely. It had hitherto been held by many that a strike or lock-out had only been punishable under the Act if it took place while proceedings were pending, or subsequently, but that once the awnrd was delivered, then strikes or lock-outs were permissible. The President ruled, however, that he should act in the spirit and not in the letter of the law ; and that as the spirit of the Act was in the direction of preventing industrial strife, he had power to punish organized infractions of award. The law therefore appears to be that, although an individual employer is competent to dismiss his workman, or an individual workman is free to leave his employer's service, there must be no concerted action on either side in this direction, or, if so, such action will constitute a strike or lock-out, and be punishable under the Arbitration Act. An amendment of the Act is desirable in the direction of preventing a worker at minimum wage being deprived of the advantage of a rise awarded by the Court. The question is beset with difficulties, but should not be left alone without an effort to support the award of the Court of Arbitration. The report of the Victorian Royal Commission to investigate labour laws is in essence a great compliment to New Zealand legislation. It recommends the establishment of Conciliation and Arbitration tribunals very much on the basis of the law existent in this colony, except that more power is given to Conciliation Courts than is here given to Conciliation Boards. For instance, if an industrial agreement is not arrived at within fourteen days after the Conciliation Court has made its recommendation the Court then sits as a Court of Industrial Awards, and its decree is law for six months, after which appeal can be made. Should such appeal be made to the Arbitration Court, the Court sits as a Court of Appeal only. It is formed nearly in the same manner as that of New Zealand, consisting of a President, who is to be a Supreme Court Judge, and two other members, one appointed by employers and one by workers. There is to be a two-thirds majority of members of an industrial union in favour of application before a dispute can be referred to the Courts. Lawyers are not allowed to appear unless they are bond fide employers. Unions of workers cannot be formed unless half the workers in that trade are included in union, seven being the minimum. The penalty to be a maximum of jgaOO, to be fixed by Court of Arbitration, but £1,000 if arising from the offence of striking or locking-out while case is pending. These are, of course, recommendations only, but Victoria will have a valuable Act if it is passed on somewhat similar lines to those above mentioned. General. The question of trusts and combinations is fully dealt with in another report issued by the Labour Department, therefore it is only expedient to allude to it here so far as to say that workers (and the public generally) are distinctly hostile to trade arrangements made for the