This Act may be cited as the Industrial Conciliation and Arbitration Amendment Act 1960, and shall be read together with and deemed part of the Industrial Conciliation and Arbitration Act 1954¹ (hereinafter referred to as the principal Act).

2 Inspectors of Awards

Section 5 of the principal Act is hereby amended by inserting in subsection (1), after the words “Factories Act 1946”, the words “every Inspector appointed under the Bush Workers Act 1945, and every Safety Inspector appointed under the Construction Act 1959”.

3 Salaries of Judge and additional Judge of Court

(1)

Section 19 of the principal Act (as amended by subsection (1) of section 2 of the Industrial Conciliation and Arbitration Amendment Act 1956) is hereby further amended by omitting from subsection (1) the words “three thousand two hundred and fifty pounds”, and substituting the words “four thousand pounds”.

(2)

Section 20 of the principal Act (as amended by subsection (2) of section 2 of the Industrial Conciliation and Arbitration Amendment Act 1956) is hereby further amended—

(a)

By omitting from the first proviso to subsection (3) the words “two thousand seven hundred and fifty pounds”, and substituting the words “three thousand five hundred pounds”:

(b)

By omitting from the second proviso to subsection (3) the words “three thousand two hundred and fifty pounds”, and substituting the words “four thousand pounds”.

(3)

The Industrial Conciliation and Arbitration Amendment Act 1956 is hereby repealed.

(4)

This section shall be deemed to have come into force on the first day of April, nineteen hundred and sixty.

4 Appointment of nominated and acting nominated members of Court

The principal Act is hereby further amended by repealing section 22, and substituting the following section:

“22

“(1)

The nominated and acting nominated members of the Court shall be appointed in accordance with the following provisions of this section.

“(2)

The Registrar of Industrial Unions shall, by notice in the Gazette, appoint a day, being not less than one month after the date of publication of the notice in the Gazette, for the nomination of candidates for the following offices:

“(a)

A nominated member of the Court, to be appointed on recommendations made by unions of employers:

“(b)

An acting nominated member of the Court, to be appointed on the like recommendations:

“(c)

A nominated member of the Court, to be appointed on recommendations made by unions of workers:

“(d)

An acting nominated member of the Court, to be appointed on the like recommendations.

“(3)

No union shall be entitled to nominate or recommend the appointment of a nominated or acting nominated member of the Court, unless:

“(a)

If a union of employers, one or more of its members employ workers whose minimum wages and other conditions of employment are determined under this Act or under the Agricultural Workers Act 1936:

“(b)

If a union of workers, all or some of its members have their minimum wages and other conditions of employment determined under this Act or under the Agricultural Workers Act 1936.

“(4)

The Registrar shall forthwith upon publication of the notice send a copy of the notice to the secretary of every union of employers or of workers eligible in accordance with the provisions of this section to nominate candidates for the positions aforesaid.

“(5)

Every nomination shall be made in the prescribed form, sealed with the seal of the union by which the candidate is nominated, signed by not fewer than two officers of the union, and signed also by the candidate in token of his agreement to act if appointed. The nomination paper when so completed shall be delivered to the Registrar, or posted to him addressed to him at his office in Wellington, at any time after the publication of the said notice, but so as to be received by him before noon on the day appointed for the nomination of candidates:

“Provided that where a candidate is nominated for the same position by more than one union it shall be sufficient if he signs one nomination paper.

“(6)

No nomination shall be valid unless made in accordance with the provisions of this section and delivered or posted to the Registrar in accordance with the provisions of this section.

“(7)

Any candidate so nominated may, by notice in writing delivered or posted to the Registrar so as to be received at his office in Wellington not later than seven days after the day appointed for the nomination, withdraw his nomination.

“(8)

If more than one candidate is validly nominated for any one office, the Registrar shall ascertain the recommendations of the unions of employers or of workers, as the case may be, in accordance with the following provisions of this section.

“(9)

The Registrar shall send to every union of employers and every union of workers, as the case may be, a notice containing a list of persons nominated as candidates for the positions in respect of which the union is entitled to make a recommendation, and requesting the union to notify him in the prescribed form of the candidate for each position which the union recommends for appointment. The notice by the Registrar shall specify a date and a time by which notice of the recommendation is to be received at the office of the Registrar in Wellington, being not less than one month after the date on which the Registrar sends the notice to the union.

“(10)

Each such union may thereafter recommend a candidate for appointment by completing under the seal of the union and the signature of not fewer than two of its officers and delivering or posting to the Registrar so as to reach him within the period of one month aforesaid the prescribed form of recommendation wherein it may recommend for appointment one person from the list of candidates for each specified office in respect of which more than one candidate has been nominated.

“(11)

No such nomination or recommendation made by any union shall be accepted by the Registrar unless—

“(a)

It has been first approved by resolution of a meeting of the committee of management of the union; and

“(b)

It is accompanied by a certificate under the seal of the union and the signatures of not fewer than two of its officers that the nomination or recommendation, as the case may be, has been so approved:

“Provided that, if the form of government of the union does not provide for the establishment of a committee of management described as such in the recorded rules, it shall be sufficient compliance with the requirements of this subsection as to approval if the nomination or recommendation, as the case may be, is approved by resolution of a meeting of the principal executive body of the union in which is vested the control and management of the affairs of the union, being a body subject only to resolutions of the union passed at a ballot of the union membership, or at an ordinary, general, or special meeting of the membership, or at an annual or other periodical meeting of a conference of delegates from all branches of the union.

“(12)

To every recommendation made in accordance with the provisions of this section and received by the Registrar within the time specified, he shall allot a number of votes determined according to the membership of the union in the following manner:

“(a)

In the case of a union having not more than two hundred and fifty members, one vote:

“(b)

In the case of a union having more than two hundred and fifty but not more than five hundred members, two votes:

“(c)

In the case of a union having more than five hundred but not more than seven hundred and fifty members, three votes:

“(d)

In the case of a union having more than seven hundred and fifty but not more than one thousand members, four votes:

“(e)

In the case of a union having more than one thousand members, four votes plus one further vote for every complete five hundred members in excess of one thousand.

“(13)

For the purposes of subsection (12) of this section the number of members of a union shall be deemed to be the number specified in the last yearly return received by the Registrar in respect of that union under section 79 of this Act less, in the case of a union of workers, the number of members whose minimum wages and other conditions of employment are determined otherwise than under this Act or the Agricultural Workers Act 1936.

“(14)

The Registrar shall, after considering any evidence which the union may submit, determine the number of members which, pursuant to subsection (13) of this section, is to be deducted from the number specified in the last annual return. Any determination made by the Registrar under this subsection shall be final.

“(15)

The Registrar shall then count the number of votes accruing to each candidate from the recommendations that are in favour of that candidate, and shall furnish the Minister with a statement of the nominations received by him for each office to be filled and of the number of votes accruing to each candidate in any case where there was more than one nomination for the same office.

“(16)

The Minister shall thereupon advise the Governor-General of the nominations and of the recommendations of the unions and the number of votes accruing to each candidate, and the Governor-General shall, in appointing the nominated members and the acting nominated members of the Court, take into account those recommendations and the number of votes accruing to each candidate.

“(17)

If, within the time appointed, no nomination is received for any one or more of the offices to be filled, the Governor-General shall, as soon thereafter as may be convenient, appoint a fit person to that office; and that person shall be deemed to be appointed on the nomination and recommendation of a union of employers or of workers, as the case may be.

“(18)

As soon as practicable after the nominated members and acting nominated members of the Court have been appointed, their appointment shall be notified in the Gazette, and that notification shall be final and conclusive for all purposes.

“(19)

The Registrar may specify a date for the nomination of nominated members and acting nominated members of the Court, notwithstanding that there may then be no vacancy; but no appointment shall be made unless and until a casual vacancy has occurred or the term of office of any nominated member or acting nominated member has expired.

“(20)

The Registrar shall be the sole judge as to the eligibility of any union at the relevant time to nominate or recommend the appointment of a candidate for office and as to the validity of any nomination or recommendation made by any union.”

5 Mode of filling casual vacancy

The principal Act is hereby further amended by repealing section 31, and substituting the following section:

“31

“(1)

Whenever a casual vacancy exists in the office of nominated member or acting nominated member of the Court (whether arising by death or otherwise), it may be filled in the same manner as in the case of an original appointment.

“(2)

In the event of the appointment of the acting nominated member as the nominated member a casual vacancy shall be deemed to exist in the office of acting nominated member.

“(3)

Every person appointed to fill a casual vacancy shall hold office only for the residue of the term of his predecessor.”

6 Membership of unions of employers

(1)

Section 60 of the principal Act is hereby amended by omitting from paragraph (a) of subsection (1) the words “all the employers engaged in the industry or related industries in New Zealand”, and substituting the words “not less than three-fourths of the employers engaged in the industry or related industries in New Zealand employing not less than three-fourths of the workers so engaged”.

(2)

Section 65 of the principal Act is hereby amended by omitting from the proviso to subsection (1) the words “all the employers engaged in the industry or related industries in the North Island, or in the South Island”, and substituting the words “not less than three-fourths of the employers engaged in the industry or related industries in the North Island, or in the South Island, employing not less than three-fourths of the workers so engaged”.

7 Accounts to be kept by unions and other organisations and to be audited

(1)

The principal Act is hereby further amended by repealing section 78, and substituting the following section:

“78

“(1)

Every union shall keep books of account in which shall be set out, in such a manner as to enable them to be conveniently and properly audited, full, true, and complete accounts of the financial affairs and transactions of the union.

“(2)

Except as provided in subsection (18) of this section, every union shall arrange for the audit of its accounts and the preparation of an annual income and expenditure account and an annual balance sheet,—

“(a)

In every case where the annual income of the union is two hundred and fifty pounds or more, by an auditor who is a member of the New Zealand Society of Accountants:

“Provided that nothing in this paragraph shall disqualify any person appointed as auditor of a union before the commencement of this section from acting as auditor of the union, or from being at any time and from time to time reappointed as auditor thereof:

“(b)

In every other case, either by an auditor who is a member of the New Zealand Society of Accountants or by a suitable person, not being the holder of any other office or position in the union.

“(3)

For the purposes of this section it shall be the duty of the union and of each and every person holding any office or position in the union to produce to the auditor all books, papers, accounts, statements, documents, receipts, and securities required by the auditor to enable him to carry out his duties under this section, and to give him such information and explanation as he may reasonably so require.

“(4)

Every union shall, within three months after the end of its financial year, or the end of the period covered by the accounts where they are prepared at intervals of less than twelve mofiths, deliver to the Registrar a certificate signed by the auditor that he has carried out the audit of the accounts of the union and has had produced to him in connection with the audit the audited accounts of the branches (if any) of the union for the last preceding accounting period with any reports made by the branch auditor thereon, and has duly reported on those accounts to the union as required by this section.

“(5)

Every union shall, upon a request in writing in that behalf, furnish any financial member on demand, without charge, with a copy of the latest annual income and expenditure account and balance sheet, together with the auditor’s report thereon:

“Provided that, if the member making any such request is a member of a branch, the accounts to a copy of which he is entitled under this subsection shall be those of the branch of which he is a member and, if specifically requested, those kept by the headquarters of the union at its registered office.

“(6)

The auditor shall prepare an income and expenditure account and balance sheet if that has not already been done, shall examine or otherwise verify the existence of the securities held by the union, and shall carry out such verification of the receipts and payments as he considers necessary for the conduct of a proper audit under this section, and for the purpose of enabling him to express an opinion on the income and expenditure account and balance sheet as required by subsection (8) of this section.

“(7)

If the union so decides, all income from fees, subscriptions, fines, and levies shall, for the purposes of this section, be deemed to be income for the financial year, or for the last preceding accounting period where the accounts are prepared at intervals of less than twelve months, in which they are received.

“(8)

The auditor shall in every case make a report (which shall form part of the annual accounts) to the union on the accounts examined by him, on the annual income and expenditure account, and on the annual balance sheet, the report to state—

“(a)

Whether he has obtained all the information and explanation which he has required; and

“(b)

Whether in his opinion proper books of account have been kept by the union; and

“(c)

Whether in his opinion, according to the best of his information and the explanations given to him and as shown by the books and accounts of the union, the annual income and expenditure account and the annual balance sheet give a true and fair view of the financial affairs of the union; and

“(d)

Any matter regarding the accounts which in his opinion should be brought to the notice of members in general meeting.

“(9)

Every annual income and expenditure account and balance sheet shall be signed by the secretary or other person responsible for the keeping of the accounts of the union, and shall with the auditor’s report thereon be presented to the next succeeding annual or other periodical general meeting or conference of the union held after the date of that report.

“(10)

No copy of the annual income and expenditure account or balance sheet shall be issued, circulated, or published without having attached thereto a copy of the auditor’s report thereon.

“(11)

If any default is made in the observance of the provisions of subsection (10) of this section, the union and every person holding any office or position in the union who, without lawful justification, the proof whereof shall lie on him, caused or contributed to the default shall be liable on summary conviction to a fine not exceeding twenty-five pounds.

“(12)

The Registrar may at any time and from time to time, if he has reason to believe that any accounts have not been properly kept or that any money has been misappropriated, require any union to submit its accounts to an auditor, nominated by the Registrar, who is a member of the New Zealand Society of Accountants. The cost of such an audit shall be met by the union if the auditor’s report discloses that the accounts have not been properly kept or that any money has been misappropriated.

“(13)

Where under subsection (12) of this section the Registrar has required the accounts of any union to be audited, the union shall, not later than seven days after receiving the auditor’s report thereon, deliver those accounts to the Registrar together with a copy of the auditor’s report thereon.

“(14)

If any person holding any office or position in the union refuses or fails without lawful justification, the proof whereof shall lie on him,—

“(a)

To allow any duly appointed or nominated auditor as aforesaid access to any books, papers, accounts, statements, documents, receipts, or securities in his custody or power, as required by the auditor; or

“(b)

To give any information or explanation possessed by him as and when required; or

“(c)

Otherwise hinders, obstructs, or delays any auditor in the performance of his duties or the exercise of his powers,—

he shall be liable on summary conviction to a fine not exceeding twenty pounds and to a further fine not exceeding five pounds for every day during which the default, refusal, or contravention continues.

“(15)

Every person commits an offence who wilfully makes or orders to be made any false entry in or any omission from any books of account of any union, and shall be liable on summary conviction to a fine not exceeding fifty pounds.

“(16)

Every union shall keep for a period of at least seven years from the date of the last entry therein all books of account of the union, together with all such vouchers, invoices, receipts, and other documents as are necessary to verify the entries in any such books of account.

“(17)

If any union—

“(a)

Fails to appoint an auditor as required by this section; or

“(b)

Fails to forward to the Registrar any certificate or report of the auditor or any book of account as required by this section; or

“(c)

Fails to keep any book of account or document for the period specified in subsection (16) of this section,—

every person holding any office or position in the union who, without lawful justification, the proof whereof shall lie on him, caused or contributed to the default shall be liable on summary conviction to a fine not exceeding one hundred pounds.

“(18)

Nothing in this section shall apply—

“(a)

To any incorporated company registered as an industrial union of employers under section 59 of this Act; or

“(b)

To any union where the annual income does not exceed fifty pounds.

“(19)

For the purposes of this section, unless the context otherwise requires,—

“‘Books of account’ includes any minute or minute book which contains any resolution affecting the financial affairs and transactions of the union, passed by the union or by its principal executive body:

“‘Branch’, in relation to any union, means any portion or division of the union’s membership in respect of which provision is made in the rules or by resolution of the union (or branch in the case of a sub-branch) for the local government of that portion or division of the membership by an executive or committee of management; and includes a sub-branch; but does not include a branch or sub-branch that does not have control of any income or expenditure of the union:

“‘Office’ means any appointment on a committee of management of a union:

“‘Position’ means any appointment entitling or requiring the appointee to exercise any official function in connection with the administration of the affairs of the union:

“‘Union’ means an industrial union or an association registered under this Act; and includes a society bound by an agreement under section 8 of the Labour Disputes Investigation Act 1913; and, except in subsection (4) of this section, also includes a branch.”

(2)

Section 66 of the principal Act is hereby amended by adding to paragraph (f) the words “in accordance with the provisions of section 78 of this Act”.

8 Joint application in case of dispute affecting several districts

Section 135 of the principal Act is hereby amended by inserting, after subsection (1), the following subsection:

“(1a)

Two or more such associations or unions may join in making a joint application under this section in respect of the same dispute.”

9 Nomination of Conciliation Commissioner in dispute affecting combined district

Section 135 of the principal Act is hereby further amended by repealing subsection (4), and substituting the following subsection:

“(4)

The Minister, on the application of the Clerk, shall forthwith nominate a Conciliation Commissioner, who shall thereupon be deemed to be the Conciliation Commissioner for the combined district. At any time before the dispute is finally disposed of by the Court, or before the application for reference to a Council of Conciliation has been withdrawn, the Minister may revoke the original or any subsequent nomination of a Conciliation Commissioner for the combined district and nominate another Conciliation Commissioner in substitution for the Commissioner previously nominated. The Minister may also at any time nominate an additional Commissioner to assist in the hearing of the dispute.”

10 Parties entitled to be heard on variation of terms of settlement

The principal Act is hereby further amended by inserting, after section 145, the following section:

“145a

Where a settlement, whether total or partial, of an industrial dispute has been arrived at and duly referred to the Court, and the Court proposes to make an award containing a variation of any of the terms of the settlement, the applicants and respondents shall, before the award is made, be entitled to appear before and be heard by the Court on the issue, unless the assessors who signed the memorandum of settlement have on behalf of the applicants and respondents notified to the Registrar of the Court their consent to the variation.”

¹*1957 Reprint, Vol. 6, p. 443

Amendment: 1958, No. 70

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Industrial Conciliation and Arbitration Amendment Act 1960