The oiler has black, white and ground, it operates at 120 volts. There is no way it could trip out the spindle motor. I looked at the CNC Mazak I run at work. It has the same type of oiler but; downstream attached to the oil line there is a pressure switch that is wired into the ladder in the controls. The Bijor itself can't kill the operation of the machine, only the reading from the separate pressure switch can do that. I can't see anything like that on the old girl.
Thats exactly what mine has, and the float switch allows 120 volts through to activate the contactors...the black and white on mine arent hot and neutral, they just pass the current through the switch....
I'll try to make it out to snap some pics of mine today...