Arbitration and Bureaucracy: The New South Wales Railway Commissioners, 1892-1914

Abstract

There is growing interest in the early impact of arbitration on Australian employers' labour practices. While the main focus of interest has been the private sector, this paper examines the New South Wales Railways, a state enterprise and Australia's largest employer by 1913. Before arbitration, the Railway Commissioners developed bureau cratic labour policies and were able to minimize the unions' role in determining wages and conditions. However, state arbitration weakened the commissioners' position. It forced the commissioners to recognize railway unions' deputations and correspondence. The arbitration tribunals codified railway wages and conditions beyond what management desired. The commissioners found it necessary to meet the challenge of arbitration by centralizing labour administration and experimenting with new labour strategies.