CUIAUGUST 3ist, 1969. ABOLISH THE INTRODUCTION This booklet is published by a croup of twenty-seven Victorian Unions known'as the “Trades Hall Gouncil Administrative and Finencicl Review Committee. These Unions decided in 1967 t> withhold affiliation fees from the Melbourne Trades Hall Council until that Council provides for:— 1, An improved method of representation on the Trades Hall Council 2, A basis of executive representation that brings together tho main trends in the trade union movement without any section seing restricted with regard to their individual rights. toe 8. The recosnition of individual union rights which must ir lifting of the suspension of four Unions. As a result of their decision to withhold affiliation fees the ‘suspended from attending meetings of the T.H.C Consequently these Unions began to co-ordinate their own < and have been involved in a number of successful public campaign the Trades Hall Council had either ignored or condemned, Thes Paigns included opposition to the Viclorian Supreme Court Rules ct a black ban on the discharge of sewage into Port Philip Bay at Covrum giving assistance in having the objectionable Melbourne City Gouncil By- Law prohibiting distribution of leaflets on city streets withdrawn, it was this group of Unicns together with a number of other Unions who led the Victorian protest over the gaoling of Clarence Lyell O'Shea on Thursday, 15th May, 1968. Mr. O'Shea, Victorian Secretary of the Tramway and Motor Omnibus Union, wno had been gaoled for alioged contempt of the Commonwealth Industrial Court arising out of iccal summonses instituted under the penal sections of the Commonwealth Conciliation and Arbitration Act. The gaoling of O'Shea, who acted in accordance with the instructions of his Union, brought about an explosive nation-wide series of actions and stoppages which for the first time in the history of Australian Industrial Arbitration seriously challenged the Establishments’ concept of imposing penalties on workers and their Unions. Here the twenty-seven Unions record some of the events which led up to the gaoling of Clarence Lyell O'Shea, and the bitterness expressed by Australian workers who have for so long suffered the hated class law which led to his imprisonment. The booklet is also a tribute to the fine action taken by these Australian workers, an action which attracted world-wide attention. OUR COVER: Photoaraph shows Clerrie O'Shea being escorted by Com monwealth Police to Pentridge Gaol on 15th May, 1969. PRICE 20 CENTS PENAL POWERS FREEDOMS FIGHT OF "69 BY J. ARROWSMITH Our story begins at 11.20 am. on May 10} C f th, 1958. At that hour the late Harold Holt (thon Minister for Labour) rose in the House of Representatives at Canberra and launched the penal powers, as they are today, on their y. Ever since its formation in 1904 the com- pulsory Arbitration system in Australia con: tained penalties. The original legislation banned lockouts and strikes and provided fo" penalties of up to $2,000 on the Unions and $20 on individuals, Onus of proof ‘was on the party charged 9.1930 the SCULLIN LABOR GOVERN- M'NT removed most of the “tooth” in the | A. and cut back the penalties. The system tho) operated FOR 17 YEARS WITHOUT AN“ HARSH PENALTIES. 1847 the Chifley Government re-inserted st/ager powers in the Act. Io. Holt’s proposal of 1956 provided for ac tinct division between the award making mechinery, and the power to punish those wh= did not accept the decisions made. They provided for an | © ARBITRATION COMMISSION | TO MAKE LAWS RELATING TO WORK- ING CONDITIONS. ® AN INDUSTRIAL COURT TO ENFORCE THOSE LAWS. The Government moved in this direction because the whole process of penal powers nad been thrown into a tailspin by the BOILERMAKERS! SOCIETY, Rank and file Ironworkers employed at Morts Dock (Sydney) in 1955, went on strike fh _dofiance of their Union leadership. The Federal President of the Boilermakers: (MR. STAN WILLIS) takes up the sto “'Without any need for decision ef our Union our members at Morts Dock (N.S.W.) collected for their mates. in the Court the Ironworkers officials rev Ported this, and we were cited before the Court for keeping the strike going, Our Union was fined $1,000." an ile Stfonaly objected, and finally hrough our efforts (backed by the AG.T.U,) the High Court found the Act Was unconstitutional, but despite our Tepeated requests the Government re- fused to refund our $1,000,” The High Court ruled (and the Govern- ment went to the Privy Council in England and again wore defeated) that the Court as tt\was then set out could not MAKE. AN IND ALSO FINE ANYONE FOR BREACH OF IT. oe The penal powers being “the apple of the gmployers| eye’ the. Menzies Governmont acted swiftly to end this by creating a syst with TWO ARMS. ae Before the changes were passed by Parliament MR. R. G. MENZIES SENATOR J. G. GORTON (now Prime Minister) MR. P. E. JOSKE, Qc, and SENATOR THE HON. J. A. SPICER, Q.C. (We will hear more of the last two gentlemen later). spoke in support of the new laws. So we can record that the penal powers came out of tho top circles of the LIBERAL. PARTY with the “top brass” of that. an Working class organisation joining the chorus for their adoption. Page 1NOW LET/S MOVE ON BY 13 YEARS In the same House on FEBRUARY 25th, 1969, MB. CLYDE CAMERON (Labor, Hind- marsh, Soutn Austraiay asked the present Minister for Labor (Mr. Bury) How many times Unions have been fined, and by what amounts since 1956? The Min- ister’s reply — broken up into groups of Unions as adopted by the A.C.T.U. is as follows: 1 Total Finace No, of Times Sion Section 11 Union Fined M@molgsmatod Engineering Union 42550 160 Fagemied Wonwotvers Union 95,500 192 Balemmetere &'Blaclemitne 32,060 181 Australasian Society of Engineers 20,100 75 Sheet Metal Workere Union 16,300 52 Erccirieal Trades Urion a Federated Moulders Union $ FEDrA 1 Blacksmins Society (now amelae- imatod with Batlermaxers Society) 6004 sis710 601 Transport Group — Wateroce Werkars Federation $50,200 98 Seamen's Union 4008 ‘ramvay Union sano as Transpot Workers Union i500 23 Xisvalion ‘Railway Union soo "2 AFULE 00 Winers fo 4 sexm0 407 Building Group — Plumbers Union 44005 Timber Worers Oe at $2,200 6 $000 12 quer Trades Union 46000 7 erated Storemen & Packers | 412007 $13,800 26 WV >ulseturing Group — ‘ele Builders Union 5550 7 Employees 4,000 19 workers Union 7004 Workers 4,900 4 Basil Workore 400004 $9,550 29 4 with ACT, — ‘ots $4000 4 jicipal Officers 7,000 Auslichian Journalists Agen. 2601 $5,250 6 TOTAL $202,410 799 (/HANSARD,” PAGE 81—QUESTION No. Page 2 1027) a BUT FINES are only one side of our pic- EMPLOYERS’ LEGAL GOSTS are loaded on to a union with the fines. So we asked MR. KEN GARR (Secretary, Trades Hall Council Financial and Administrative Review Committee) Gan you estimate what amount of legal costs Unions have been saddled with? He replied— “About three times the total of the fines, because there are about two cases before the Court for evory one that results in a fine and the Unions are saddied with costs of these.” MR. PAT CLANCY (Secretary, Nf W. BRANCH, Building Workers’ Incustrial Unin) added to this “In the Metal Trades siru pies last_yoar one Union was fined $15,000 lus $16,(00 in costs for the employer.” SO THERE IT IS. THE GENERAL ESTIMATE |S “HAT MOE THAN $750,000 has been isken out of workers’ union dues through the per al powers and legal cosis, Somewhere a voice will say ‘Ah yes—but what about the employes — the Arbitration System works bo:h ways you know. MR. CAMERON WAS NOT ONE SIDED. HE ASKED ALSO WHAT FINES HAVE BEEN. IMPOSED ON THE EMPLOYERS? Here Mr. Bury was most generous. His figures covered the period 1943 to 1968 - A QUARTER OF A CENTURY — and they show that in that time employers wero charged with 332 breaches of awards AND: FINED ONLY $2,978, We asked three Union officials to comment ‘on the significance of this contrast. MR. ALEX MACDONALD (General Secre- tary, Trades and Labor Council of Queens- land) said — “The fines paid by the employers equal 0.8 per cent of the fines paid by the Unions. So the bosses do not worry much about fines by the Arbitration Court.” : MR. TED INNES (VICTORIAN BRANCH SECRETARY, ELECTRICAL TRADES UNION) commented “The employers have the right — un: controlled by any authority whatever — to increase prices to cover any wage increase the Court may grant. On the other hand if the workers regard a deci- Sion as unsatisfactory, and take action to gain more, then they are subject to all the weight of the penal powers. The arbitration system therefore is loaded against the worker.” MR_ LAURIE CARMICHAEL (VICTORIAN STATE SECRETARY, AMALGAMATED EN- GINEERING UNION) said — ‘The boss has the right to hiro and fire as the ups and downs of the business world effect him, But workers who withdraw their labor, because of some grievance, and nobody does this lightly; in the vast majority of cases every avenue of settlement is ex- plored before a stoppage — they are regarded as some form of criminals and speedy action is taken to plunder their union funds in the hope this will drive them back to work.” OW LET‘S RETURN TO 1956 is time the scene is the SENATE CHAM- 5, the date — JUNE 12th, SENATOR ER (Attorney-General in Mr. Menzies smnment) has the floor, Speaking in sup- of the penal powers, he said:— Industrial relations and the just settle- ment of industrial disputes are matters which, quite obviously, directly effect the prosperity and contentment of any coun- try, but they have special importance in Australia.” 5 “From a combination of circumstances, they have become more controversial and more complicated in this country than probably in any other.” Senator Spicer then went on to give some reasons for this. “Australia has become the most highly unionised industrial country in the free world, We have some 60 per cent of our Wage and salary earners, both male ‘and female, members of some appro- priate union.” By way of comparison, T could mention that the United Kingdom, which is a highly unionised country on standards of other parts of the world, has only 40 per cent of its wage-earning population members of unions. “Another highly industrialised country, the United States of America, has only 27 per cent. “In addition there is probably more Political activity on the part of the organ- ised trade union movement and indivi- dual unions, in this country than in any other, and the tendency is for major in- dustrial Issues to become political issues “We have had, over recent years, a sustained experience of full employment and this has greatly strengthened the bargaining power of the individual em- ployee and of the Union. “There is a potentiality in the industrial movement of this country for the oxor- cise of power unsurpassed in any other democratic country, but would we claim that our industrial movement has yet developed that tecognition of the te- sponsibility which power carries with it. and which is to be found in other coun- tries of the world?” THAT'S LETTING THE CAT OUT OF THE BAG PROPERLY! The Penal Powers were considered neces- sary because ® The Unions were too strona. © They took up political issues vital to workers. © Full employment enables a worker to stand up for himself more effectively. © Therefore the power of the industrial movement must be curbed. BRING ON “TAME CAT” UNIONS Senator Spicer’s remarks are nothing new from the top Liberals, but this particular speech is of special significance for our story. TWO MONTHS after making clear his anti- union bias SENATOR SPICER wrote a letter (13.8.1956) in which he resigned from the Senate and on that same day was appointed MR. JUSTICE SPICER, CHIEF JUDGE OF THE INDUSTRIAL COURT — A POSITION HE HOLDS TO THIS DAY. He had two terms: as a Liberal Party Senator. The second began in 1949 and he stepped straight into Menzies Cabinet. Born in 1899, he graduated as a Barrister and Solicitor in 1921. His record of support for anti-working class politics goes back at least to 1933 — a year of widespread unemployment — when he became President of the YOUNG NATION: ALISTS (forerunner of the Liberal Party), Page 3He was knighted in 1963. Wage struggles are the arena where the penal powers come into play more often than others, so we turn now to examine some recent wage judgments by tho Commission, and their elfect on the struggle of Trade Unionists. For many years in Australia, wages were based on the following formula: © A BASIC WAGE (An equal amount in every adult male Pay envelope — 25 per cent less for females) © A MARGIN FOR SKILL (Higher or lower ‘according to the Court's estimate of the skill required in each job) © QUARTERLY ADJUSTMENTS TO THE BASIC WAGE (An increase or decrease of wages ac- cording to the rise or decline of prices of a limited range of commodities). The UNIONS always said this system was inadequate BUT AT LEAST IT HAD BUILT INTO ITA RECOGNITION THAT WAGES CHASE PRICES. In the post-war period of inflation — a system where the amount of currency in cir- culation is vastly increased —prices started \o tise consistently. THE QUARTERLY AD- ZUSTMENTS were of some cushioning effect here. Wages rose — however inadequate the amount — each three months. What happened to wage judgments follow- ing the introduction of the penal powers? 1 1988 after @ consistent campaign by Employers and the Menzies Government. the COURT CUT OUT THE SYSTEM OF QUART. ERLY ADJUSTMENTS, It Was one step towards ridding the wages re-affirm that any union proceeded vst _by confiscation of funds, pri or action against any union off ecause of a determined oppo: the penal powers, will be fully ediately supported by industrial rming that reqular factory > held, deputations elected, grams and resolutions sent do- LAURIE Pag manding the complete repeal of the | powers. talks to secure the full repeal of the penal powers must bo met by the full force of the Australian Trade Union jovement.” Sitmiar rales Were held in other States s0 the stage was sot for tho noxt moves in ie campaign : DT TAMIUTMeREROLY the discussions be- tween the Government and the A.C.T.U. failed 19 produce any vorth while progress towards the repeal of the powers, < (On July 30th tho A.C.T.U. Executive d cided that factory meetings should be held, as from August 11th to enablo the rank and file to hear progress reports on the negotia- tions The States Trade and Labour Councils woro to organise the meetin s, On the reaction to this decision in Victoria Ken Carr has the last word 0° our story. “The Victorian Trades + all Council fail- ed to implement the A.2.T.U. decision Not one meeting was crganised by its leadership. “We of the 27 Unions carried out the decision to the fullest exient possible We arranged about 85 fa2iory meetings = some extended beyold Iunch hour and in others the worke s stopped tor the day.” “As was the experience in May, we found tremendous suppor’, jor cur de- mand for the removal of the powers. “The AC.T.U, Exeoutive, as well as the factory meetings decision, also decided fo advise the Government that it must be in a position to report settlement of the penal powers issue to the AC.T.U Gongress which opens on Sepiember (AS we have said many times, and as this booklet shows, with inscciue sup Port throughout the whole movement, We do not believe that an alteration here gy there wil sutfic, le want the repoa| repressive side of the Act foggy te opressive ‘It the Government fails to agree to this by the time the Congress assembles, we confidently 00k to that gathering to take the necessary decisions to lit tur- ther the demand for repeal" range May only one Union has been led ~~ and refused to pay —~co lel's Keo} ° Keep up the pressure,” eohsiuded Mr, MESSAGES OF RECEIVED BY SUPPORT AND ENCOURAGEMENT THE VICTORIAN BRANCH OF THE TRAMWAYS UNION DURING THE COURSE OF THE sy. (ary) Richards, See" JN apes associate F. Purse, rederal Secreta Union et usta ne rane, H. Ceck e : rm Onn, 3 “Council, forse ol and Bas Was ooh ork we Ai Net a ata seigey ig or ind feaerney Jo Meal Bus gece © outst cabal SS ke yet stomly alway te Sued, Co sy South Wales clay, PENAL CLAUSE DISPUTE Yates ects ira ais Andros & American Stat Mege mestinge of Vessels AN eet werting 19 onoma jerra, Dalgety’ What PF ‘Sonoma and Si sey wir Workers Fume Steel, Brisa i The Motor Omnibus puilding Workers" Indus TRE. ceerstary, Australian SE UpeRrem ration. Union ot 1255 Fes. Conference, ‘3 Seamen's Uni ginoors, Stymane. affiliated. Queens! et ick jeeting Unions. ay Preston, via Cairns. Western Australi P.M. Botany. % And Hunter District ’; trades and Labour a at 2s ang Union CEI watesige Workers, Fedora Australia, Fremantle ie. Univers ates, Ney Fadorated Miscollancous, Worke oe U. Members employ’ foined Unions workers: Bent W. Branch. wets od at Ledgers: MM Gockatoo Dock and WA, Sate roe Ca ‘Welsnpcclera Industrial Union of WA: qmant Watersize WA Ballater ala, WA, Stato ‘ Northern Territory: shops, Chullora. = forkers’ Union, Water inlious Objector. sarwin Waarfias — North Aust. Wé a ee jorkers’ Union (600 ; Whole Membership North: Aust. Wi Workers’ Union of Australia. “Momo, postal Workers Union, of : : La Clarks and ‘Telegraphists 2 3 SI Postal ler Union a te (australian Seat Union, Innisiel fore Labourers Federation. i i rete = 1S Wa ALL. Hee enh en ae wae ‘Martin Nicholls, M.H-Ris Esiie oer Coline ‘khampton. ‘thon. aid vos Ate cminelt Mectighebe a . ‘Workers! Union of AustraliaTasmania: en Jacob, TRL. 1914-18 War, Ferntree, Tes. Hobart Bianch, AT. & MOEA. Vieton Aetralian Railways Union, Executive Mecting 25.169, Meat Workers Union. Building & Metal Trédes trom Crosco site, Hastings. Melboume University Campaign against Conscription Monasn University Labor Cus ‘usivatan Timoer Workers Union, Hospital Employees’ Federation of Australia Busloing Workers Industrial Union ol Aucteali Gomosred Unions Snap. Gommintees Neva Hall Workshops Mass Neeting lames Hardie & Co, Srop' Cominliee (A.E.U., Bole. makeis) MMU, FEDPA, Palntors, Carpenio ie iron Workers), Brooklyn. Croydon Branch, Aust. Labor Party, Bendiga Division, A @ MOEA Ballarat Trades & Lasour Counc, Bendigo Trades & Labour Counc Miscenianeous Workers Union: Ausiralan Neat Industiy Employees Union Diamond creek Branch ALE Male, Universiy Gampsign’ against Conscription and ‘Melb. "Univorsiy Munioipel Employees Union — Cotes, Secietay Melo, Branch, Young Labor Associction National Cominities Union o1 Aass Ween, Slate Sec. & National President, Bill Wobbor, Australia ‘ielgnters acsee Betied Tiamwaymen's Association of Victera, Ballaet Norn Workshops Employees, mer Uiton Shop emmittee EU. Members at Bowater Scott Melb. Universly Revolutionary Lot, Rolland Membors, Aust. Bullers Labourers Fed, Assoc. Architects, Engineers, Surveyors a Betiamen asccs eayseee #508. Architects, Engineers, Surveyors. & Drattsmen = Vic. Sec, is us 2 The Connolly ASsovistion of Victoria Gentil Gippslend Trades ‘& Uabeus Counci, The Pratran Commune — "Raph, Hadeoh Valentine Dail McMullen, Fichard Buckdale ferns David’ Bland, Peter Raisin’ Ago? Desay, Larty Lacey, Helen trcey Jack Downey, retired amma, Surtees, 20) Porter theron: on Cae usar {elldey, Tower ‘Wagon Biiver’ Coburg, Jeck Kerrigan, Clayion ibourns Canberra: Election E. G. wit, At opening of Sendion B-Flect ae me MH Jen Beles UIRPAN'® Uston of Ausra eth Ras, Seamen's Union Membu 5 tiem, ce Darwin Radio, — Seamen's Union crow members “Iron er Seamen's Union members *Butwarra." Adelaide flaclo — Seemen’s Union monibers tay = Towra.” Combined Maritime Unions “tron Clippers _ Whyalla, S.A, ‘Seamen Members ‘Trovbridgo. Por Adelaide —— Crew SS "Yartunga” — geamens Union Delegates, Sriney. W'SW.-— Seamen's Union Members “Seaway king!” — Stop Wark Carrington, N.SW. — Crew MY “Iranaa,* Newcastle, N.SW. — MV “Lake Macquario.” Syaney Radio — Seamen's Union Mombare nT “cq. fen Grows, iNest: NSW. — Boamen’'s Union Mombers “Bilkurra." New Zealand: NZ. Tramways, & Public Passenger Transport autiorie fies Employees Industral Unior of Worgara “A ot land Branch, Reuigy (tom Workers in AucMend, ew Zoaland, with 44 signatures, Otego Drivers Union, Dunedin, NZ N2. Boilermakers Federation, 2. Freighter MV "Karamu, Ne atonal, Seamen's Union Mem ers of the tay NZ Seamen's Union Members vasse! ‘Nhahore,” Canada: United Fishermen's & Allied Workers Un an, Vancouver, England: tage tl a TeNePOn sre er unin, Imperial Relations Trust, ae MTom Bare (82 yeas ob, Lona, nang Printed by inting Com Automatic Printing Com any, ier rade, 145 Victoria Pe ‘ona. 41-4910. Collingwood, Vie. $088.