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Salient. Victoria University Student Newspaper. Volume 36, Number 8. 19th April 1973

Labour Government Support for Arbitration

Labour Government Support for Arbitration

It is one of the myths of New Zealand labour history that the unions clamoured for the return of the compulsory powers of the Arbitration Court, and that the new Labour Government, in 1936, acceded to their demands when it restored compulsory arbitration in industrial disputes. The unions certainly took a battering during the depression. Wages were cut ruthlessly and union membership fell until at one point there were more unemployed than union members. Nevertheless, when the Labour Government set to drafting its new labour code, the Alliance of Labour (the predecessor of the present Federation of Labour) reaffirmed its longstanding opposition to compulsory arbitration. Later, in its final submissions to the Government, in deference to the opinions of many weak and small unions, the Alliance accepted compulsory arbitration but with the proviso that "unions or associations which desire to settle their disputes by direct negotiations with the employers shall not be forced under the jurisdiction of the (Arbitration) Court". "We consider", said the Alliance, "that direct negotiation by the parties is the best method of settling industrial disputes".

The Labour Government ignored this view and reimposed compulsory arbitration on all registered industrial unions. The Federation of Labour, which came into being in 1937, expressed its support for the principles of conciliation and arbitration, even though some of its constituent unions, such as the United Mine Workers, continued to settle their disputes outside the Court.