HomeStudent Archival EssaysThe Trades Hall and Unemployment during the Great Depression, 1928-1932

The Trades Hall and Unemployment during the Great Depression, 1928-1932

by David Kidd

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The beginnings of the trade union movement and the subsequent collectivisation of these unions with the intent to represent the interest of their members resulted in the establishment of the Trades Hall.  With this, came the establishment of a representative body, the Trades Hall Council (THC), which was responsible for organising the collective actions of the unions, and representing the interests of union members to the wider community.  The Trades Hall was first and foremost a coalition of working men and women who sought more favourable conditions in the workplace, and better relationships with employers.1 

It is important to consider the Trades Hall’s relation to another group, the unemployed, which may seem neglected by the very nature of the Trades Hall. One might argue that the interests of the employed and unemployed people are not the same, and therefore the Trades Hall cannot be expected the represent the interests of the latter.  Due to the Great Depression, however, the interests of the two groups became inextricably linked.  The rising levels of unemployment caused by the Depression led to the problem of employment becoming a forefront issue for the Trades Hall as those now facing this ever increasing problem looked to the THC for leadership and assistance.

This essay will provide an historical account of unemployment in the Depression.  It will evaluate the effectiveness of the actions of the Trades Hall, specifically that of the THC and the Central Unemployed Committee (CUC), in representing the interests the unemployed in the period 1928-32, two years directly before and after the onset of the Depression.  It will also make comments on the adequacy of the responses by the then Labor State Government, led by Premier E.J. Hogan.  It will be argued that before the major onset of the Depression the THC and the Government adequately responded to the problem of unemployment. In the 1930s, however, the Government’s responses were largely inadequate, and in turn, the effectiveness in the THC and the CUC’s representations diminished.  Although the effectiveness in their approaches diminished, the THC and the CUC, it will be argued, were excellent leaders of the unemployed given the circumstances, especially when compared to alternatives.

Before the onset of rampant unemployment caused by the Great Depression, the relatively small levels of unemployment in Melbourne were seemingly handled well.  It can also be stated that the THC had real effect on government initiatives.  In 1928, in a letter detailing a number of government initiatives which intended to relieve unemployment, the Labor Government’s Premier, E.J. Hogan addressed a number of requests made by a deputation from the Council.2  The requests called for the provision of sustenance for the unemployed, and that the government should undertake to provide work through government projects.  Hogan’s response to these requests were positive, saying these requests would and were being granted.  Hogan contended that in the previous 12 months work was provided by the state government for 12,000 men at a cost of £400,000, and that £30,534 was distributed as welfare.3  Therefore, it can be seen that the THC was somewhat effective in influencing government policy in the interest of the unemployed, and the Government was responding in a way deemed adequate by the Council.4

During this period, however, the unemployed lacked serious organisation within the Trade Union movement.  Few unions made considerations for unemployed people previously employed in their respective trades.5  If unemployed peoples were allowed to retain membership to any given union, they were usually denied voting rights, and therefore could not affect the direction of a union in a meaningful way.6  In 1929, although the worst was yet to come, many faced unemployment.  In February, it was reported by the recently appointed unemployment officer for the THC, T.J. Smith, that he had registered 4,300 unemployed people between 31 May 1928, and 7 February 1929.7  It is likely this number is not representative of the true level of unemployment at this time, however, as this figure relied on people registering their work status to Smith.  In contrast, for the same year, Louis (1968) gives a figure of 18,322 for the month of November.8  Though it is also likely that February’s tally would have been lower than this, this shows the number of unemployed was likely higher than Smith’s initial tally.  In any case, the increasing number of unemployed and the lack of any structure to organise the unemployed spurned the need for representation.  At a conference of the Australian Council of Trade Unions (ACTU), a resolution was passed which stated: That in each State the chief Trade & Labor Council devote special attention to the organisation of the Unemployed, and report regularly thereon to the Executive of the A.C.T.U.9 Resulting from this conference was the formation of the Central Unemployed Committee (CUC) in Victoria, coming under the control of the THC.  The CUC became the main organising force of the unemployed during the depression and led the Trades Halls efforts in the area.  

The establishment of the CUC was timely, as thereafter the Depression in Victoria deepened.10 The tactics which garnered relative success in 1928 continued and constituted the CUC’s main methods of campaigning and agitation throughout the Depression.  These tactics, which include deputations, rallies, and conferences, can be described as traditional and legal in form and were therefore somewhat passive.11 The intensification of the Depression coincided with a decline in the effectiveness of these tactics. A decidedly important priority for the THC and CUC was the installation a system of unemployment insurance, in order to relieve the destitution felt by many unemployed peoples.  It was desired that such a system should provide adequate working opportunities, and sustenance where no work could be provided. 

At a conference with representation from the ACTU, both the State and Federal Parliamentary Labor Party, and the THC, it was requested that a scheme of this type become a priority at both a state and federal level.12  This scheme was proposed to remedy the system of distribution of sustenance by charitable organisations such as the Ladies’ Benevolent Society.  This system was largely inadequate, as the organisations lacked the funding to provide full sustenance for all of Melbourne’s unemployed, resulting in some branches closing in 1929.13  Although the new scheme which was eventually installed would maintain distribution of welfare by these societies, it was intended that they were fully funded by the Government.14

Legislation for the installation of an unemployed insurance scheme in Victoria was introduced by the Premier on 15 April 1930.15  To the dismay of its supporters, however, the Government compromised with the Opposition, reworking the Bill which provided a tax on incomes between £1 and £6 a week, and reduced the original rates of taxation on higher incomes.16  The subsequent Unemployment Relief Act and the Stamps (Unemployment Relief) Act, collectively referred to as the Unemployment Relief Act, was introduced at the end of May 1930.17 The Act was seen as a “distinct breach of faith by the Government with the Trade Union Movement”, as expressed in a THC meeting on 26 June 1930.18  That taxation was aimed at low incomes was initially the central point of contestation for the THC and CUC.  In its application, the Unemployment Relief Act was seen as wholly inadequate.  Firstly, that distribution of sustenance was still being handled by the Ladies’ Benevolent Society was “resented” and it was argued this responsibility should be transferred to municipal authorities.19  Also, payments were made only to married men, presumably due to the fact these men had families to look after, and should therefore be prioritised.   Support for single men and women was therefore greatly lacking.20

The assistant secretary of the THC, A.E. Monk, reported in a meeting of the Council that of 18 municipalities distributing welfare, it was found that only three municipalities allowed for the registration of women.21  Also, Monk had visited a men’s homeless shelter and reported that 72 men had slept on concrete floors that night.22 It was reported that in total, the number of working was 5717.  By October this same year, the number of unemployed unionists totalled 32,462.23  Clearly, the Government’s approach in this period, under the Unemployed Relief Act, was not adequate in providing relief to the unemployed. In this same meeting, the Council passed a resolution that stated that “the efforts of the Federal and State Parliaments to deal with Unemployed are feeble and inadequate” and carried the following requests: “a guaranteed minimum of two days’ work per week or equivalent sustenance”, “enactment of a Rent Moratorium for Unemployed workers”, and the “establishment of State Distribution Depots”.24  Opportunities for work were preferred over sustenance by unionists, as the daily sustenance provision under the Act was not equal to the minimum wage one might acquire after a days’ work.25 

This sentiment was expressed in a demonstration of 1,000 unemployed unionists organised by the CUC on 27 June 1930, preceding a deputation by the THC to the Premier.  “Work or full sustenance” was a slogan adorned on several banners at this demonstration.26  The same demands which were formally passed through the THC on 10 July, mentioned above, were expressed at this demonstration.  Here another iteration of the THC and CUC’s legalistic tactics can be seen.  But 1930 was much more difficult year than 1928, and these tactics were often not garnering results as they once were.27  Though this was not due to a lack of effort on behalf of the THC and CUC.  The bodies were doing everything they thought possible.  Monk, in October 1930, claimed “it would not possible for him to narrate all that the Unemployed Committee had done since the previous report was submitted.28  There were more factors contributing to the degradation in the effectiveness of these tactics, such as Parliament’s desire and ability to respond, and the general economic situation.  It suffices to say however, that in this period these tactics were less effective, and the Government’s response was inadequate. 

Towards the latter months of 1930, the Government, in an attempt to rectify the insufficiency of its funding for unemployment relief, introduced legislation to raise revenue for this area by raising taxation.29  As was the case earlier in the year, the Labor Government showed its willingness to compromise with the Opposition and Legislative Council.  The Opposition argued for reduced tax rates along with wages below the minimum for relief employment.30  The CUC was obviously against this proposal, and argued that wages should not be below reward rates for relief work.31  The Government attempted to compromise these conflicting viewpoints by offering reduced tax rates and basic minimum wage rates for relief employment.32  Furthermore, the relief works were to be rationed, meaning employment could be provided on a maximum of three days per worker.33  This compromise, contained in the Unemployment Relief Amendment Bill, was passed in December 1930.34

These measures were almost immediately decried by both the THC and the CUC.  A motion was passed by the THC at a meeting on 22 January which supported ‘the action of the [CUC] in refusing to accept employment under the conditions of the Unemployment Relief Act”.35  Further it was expressed that no less than 3 days’ work should be provided to men (there is no mention of women in this motion), and the rates of pay should not be less the 15 shillings per day.36 At an ALP conference on the weekend starting the 4th of April, a number of resolutions were carried which are indicative of the contemporary sentiment.  Both the efforts of the Federal and State Governments were criticized as inadequate, and the reduction of the wages below award rates was specifically attacked.  It also called for the introduction of legislation to protect unemployed tenants against eviction or seizure of goods in place of rent payments; otherwise known as a Rent Moratorium.

The enactment of a Rent Moratorium was a major demand made by THC and CUC in this period.  This would take the form of Government legislation to allow for the postponement of rent payments by tenants who could satisfy the relevant Court that their inability to pay was a result of their unemployment.37  The fact that many unemployed peoples were becoming homeless due to their circumstances was seen as abhorrent and unnecessary to the CUC.  It was seen that due to the Government’s neglect, and inability to provide adequate welfare, the fault should not fall to the tenants who were unable to make payments.38

It is clear that the THC and the CUC believed strongly that the Government’s attempts to respond to unemployment were not sufficient.  A large demonstration, organised by the CUC, was held on 12 May 1931, announcing Committee’s dissatisfaction with the Government’s relief efforts.39  In his report relating to the demonstration, Monk provided figures relating the unemployment relief, aiming to prove their inadequacy.  He claimed that the Government’s December amendment of the Unemployed Relief Act aimed to raise £1,250,000 by the following June.  This amount would need to sustain an estimated 50,000 unemployed (an estimate accepted by the Minister for Labor, Webber).40 For the 52 week in the year, Monk estimates that this would provide “only 12/4d per unemployed worker per week”.41  Monk also contended elsewhere that this was generous estimate.42 

The tactics the THC and CUC employed to represent the interests of the unemployed continued as in previous years.  Resolutions passed at meetings and deputations to Government officials achieved very little in this period.43  Attempts of passive refusal of relief employment only worsened the hardships faced by many.44  Demonstrations, like the one mentioned above, were where the most amount of effort was expressed, but the unionists still came away relatively empty handed.45 The relative failure of these efforts again leads to the question of the effectiveness of these approaches.  It is important to note that the approaches made by the THC and CUC were fervently disagreed with by many at the time.  Included in their opponents, was the Communist Party and their subsidiary, the Unemployed Workers’ Movement (UWM).46 

As should be expected, the increasing levels of unemployment and the degradation of living conditions at the time were the perfect conditions for the rise of communist thought.47 The UWM, organised by the Communist Party, was a group which expressed these views, and offered an alternative to the THC and the CUC. The THC claimed initially that the UWM as an organisation was unnecessary, as the CUC was already in existence and was effectively managing the unemployed.48  Thereafter their relations did not improve, leading both to bodies to repudiate the other.  For example, in a letter to the THC, the UWM labelled the tactics of the THC and the CUC to be anti-working class.49 

There were two instances where separate demonstrations being held by the respective bodies erupted into violence.  At the first, on 12 January 1931, after a deputation from the THC following a demonstration it was claimed that “stones were thrown by a section of the crowd hostile to the CUC.”50  The second instance was a clash of the THC’s May Day celebrations and a demonstration held by the Communist Party.  The THC condemned the communists and stated “that the Communist Party and its subsidiary groups are obstacles to the progress of the working class and as such must be treated as other opponents of the Labor movement.”51

  The UWM was aggravated by the continuance of the THC and CUC’s passive approaches, which they saw as inadequate in bringing about the revolutionary changes they had in mind.52  This was part of the problem for the UWM, however.  Although many unemployed were aware that their interests could not be adequately represented through the approaches of the THC and CUC, the communists had misread the situation of rampant unemployment as the early stages of a revolution.53  Many of the unemployed did not acquiesce to a revolutionary ideology. The methods employed by the Communist Party and the UWM led to further problems for the movement.  The fervency of their undertakings often boiled over to aggressive demonstrations, making them the targets of crackdowns by authorities.54  In combination, these negative associations meant the Communist Party and the UWM were stigmatised as menaces in society, resulting in a vicious cycle of negative perceptions.55

Therefore, in considering the perceptions of the Communist Party and the UWM in the early 1930s, greater legitimacy is added to the efforts of the THC and the CUC in representing the unemployed.  Although the bodies’ undertakings were seen as passive and sometimes inadequate, they were not hampered by negative perceptions, nor were their actions heavily policed, like the communist movements’.  The THC and the CUC did excellently within the bounds of their legalistic traditional framework, working in consultation with a Government that was often inadequate itself.  Therefore, although it cannot be said that the actions of the THC and the CUC were effective in the 1930s, as they were in 1928-29, they represented the interests of the unemployed in a respectable, legal construct.  This essay has shown that the Government’s responses in this period were inadequate, though it does not explain why.  To explain this would involve an economic analysis of the causes of the Depression, which is beyond the bounds of this essay, but those interested should refer to the works of Valentine and Siriwardana.56  

The Great Depression led to unemployment becoming a forefront issue for the THC and its subsidiary the CUC, and the State Labor Government.  This essay has analysed the early stages of the Depression, and concludes that despite being initially effective, the responses of the Government, carried out under the two iterations of the Unemployed Relief Act, were largely inadequate after the 1930s.  Similarly, the effectiveness of the tactics employed by the THC and CUC in representing the interests of the unemployed diminished with the onset of the Depression.  This diminution, however, was not caused by a lack of effort on behalf of the THC and the CUC, and ultimately this effort should be commended in the context of the losing battle that was the Depression. 

 References


1 Cathy Brigden. 'Creating Labour's Space: The Case Of The Melbourne Trades Hall'. Labour History, 2005, no. 89: p127; Carlotta Kellaway. Melbourne Trades Hall Lygon Street Carlton: The Workingman’s Parliament. 1st ed. Carlton, Victoria: Victorian Trades Hall Council, 1988.

2 Trades Hall Council Meeting Minutes, 7/6/1928, Minute Book Trades Hall Council 1926-1930, p296-297, 1978.0082.0012, Trades Hall Council Papers, Melbourne University Archives, Melbourne

3 Trades Hall Council Meeting Minutes, 7/6/1928, Minute Book Trades Hall Council 1926-1930, p297 1978.0082.0012, Trades Hall Council Papers, Melbourne University Archives, Melbourne.

4 Trades Hall Council Meeting Minutes, 7/6/1928, Minute Book Trades Hall Council 1926-1930, p297 1978.0082.0012, Trades Hall Council Papers, Melbourne University Archives, Melbourne.

5 Louis, L. J. Trade Unions And The Depression. 1968, Canberra: Australian National University Press, p158.

6 Ibid. p158.

7 Trades Hall Council Meeting Minutes, 31/5/1928, Minute Book Trades Hall Council 1926-1930, p291 1978.0082.0012, Trades Hall Council Papers, Melbourne University Archives, Melbourne; Unemployed Officers Report To The Trades Hall Council, 7/2/1929, Minute Book Trades Hall Council 1926-1930, p410 1978.0082.0012, Trades Hall Council Papers, Melbourne University Archives, Melbourne.

8 L.J. Louis. Trade Unions And The Depression, 1968, p156.

9 Trades Hall Council Meeting Minutes, 13/3/1930, Minute Book Trades Hall Council 1926-1930, p567-568 1978.0082.0012, Trades Hall Council Papers, Melbourne University Archives, Melbourne.

10 Geoff Spenceley. 'Assessing The Responses Of The Unemployed To The Depression Of The 1930S∗'.  Journal Of Australian Studies, 1989, 13 (24): p71. 

11 Spenceley, ‘Assessing The Responses Of The Unemployed To The Depression Of The 1930S∗’, p77.

12 Trades Hall Council Meeting Minutes, 13/2/1930, Minute Book Trades Hall Council 1926-1930, p553-554 1978.0082.0012, Trades Hall Council Papers, Melbourne University Archives, Melbourne.

13 Unemployed Officers Report To The Trades Hall Council, 7/2/1929, Minute Book Trades Hall Council 1926-1930, p410 1978.0082.0012, Trades Hall Council Papers, Melbourne University Archives, Melbourne.

14 Unemployed Officers Report To The Trades Hall Council, 7/2/1929, Minute Book Trades Hall Council 1926-1930, p410 1978.0082.0012, Trades Hall Council Papers, Melbourne University Archives, Melbourne.

15 L.J. Louis. Trade Unions And The Depression, 1968, p163.

16 Ibid, p163.

17 Ibid. p163.

18 Trades Hall Council Meeting Minutes, 26/6/1930, Minute book Trades Hall Council 1930-1932, p27-28, 1978.0082.0013, Trades Hall Council Papers, Melbourne University Archives, Melbourne.

19 Trades Hall Council Meeting Minutes, 3/7/1930, Minute book Trades Hall Council 1930-1932, p33, 1978.0082.0013, Trades Hall Council Papers, Melbourne University Archives, Melbourne;  Trades Hall Council Meeting Minutes, 10/7/1930, Minute book Trades Hall Council 1930-1932, p38, 1978.0082.0013, Trades Hall Council Papers, Melbourne University Archives, Melbourne; L.J. Louis. Trade Unions And The Depression, 1968, p163

20 L.J. Louis. Trade Unions And The Depression, 1968, p163; Trades Hall Council Meeting Minutes, 3/7/1930, Minute book Trades Hall Council 1930-1932, p33, 1978.0082.0013, Trades Hall Council Papers, Melbourne University Archives, Melbourne; Trades Hall Council Meeting Minutes, 24/7/1930, Minute book Trades Hall Council 1930-1932, p47, 1978.0082.0013, Trades Hall Council Papers, Melbourne University Archives, Melbourne.

21 Trades Hall Council Meeting Minutes, 10/7/1930, Minute book Trades Hall Council 1930-1932, p39, 1978.0082.0013, Trades Hall Council Papers, Melbourne University Archives, Melbourne.

22 Trades Hall Council Meeting Minutes, 10/7/1930, Minute book Trades Hall Council 1930-1932, p39, 1978.0082.0013, Trades Hall Council Papers, Melbourne University Archives, Melbourne.

23 Trades Hall Council Meeting Minutes, 22/10/1930, Minute book Trades Hall Council 1930-1932, p109, 1978.0082.0013, Trades Hall Council Papers, Melbourne University Archives, Melbourne.

24 Trades Hall Council Meeting Minutes, 10/7/1930, Minute book Trades Hall Council 1930-1932, p40, 1978.0082.0013, Trades Hall Council Papers, Melbourne University Archives, Melbourne. 

25 'UNEMPLOYMENT RELIEF.', The Argus (Melbourne, Vic. : 1848 - 1957), 23 June 1930, p. 10, viewed 5 October, 2015, http://nla.gov.au/nla.news-article4095005.

26 'UNEMPLOYMENT RELIEF.', The Argus (Melbourne, Vic.: 1848 - 1957), 28 June 1930, p. 22, viewed 5 October, 2015, http://nla.gov.au/nla.news-article4096453.

27 L.J. Louis. Trade Unions And The Depression, 1968, p164.

28 Trades Hall Council Meeting Minutes, 2/10/1930, Minute book Trades Hall Council 1930-1932, p100, 1978.0082.0013, Trades Hall Council Papers, Melbourne University Archives, Melbourne.

29 L.J. Louis. Trade Unions And The Depression, 1968, p172.

30 L.J. Louis. Trade Unions And The Depression, 1968, p172.

31 Ibid. p172.

32 Ibid. p172.

33 Ibid. p172.

34 Ibid. p172.

35 Trades Hall Council Meeting Minutes, 22/1/1931, Minute book Trades Hall Council 1930-1932, p148, 1978.0082.0013, Trades Hall Council Papers, Melbourne University Archives, Melbourne.

36 Trades Hall Council Meeting Minutes, 22/1/1931, Minute book Trades Hall Council 1930-1932, p148, 1978.0082.0013, Trades Hall Council Papers, Melbourne University Archives, Melbourne.

37 'RENT MORATORIUM.', The Argus (Melbourne, Vic.: 1848 - 1957), 24 September 1930, p. 8, viewed 5 October, 2015, http://nla.gov.au/nla.news-article4197490.

38 Unemployment Bulletin No.3, 9/4/1931, Minute book Trades Hall Council 1930-1932, p195, 1978.0082.0013, Trades Hall Council Papers, Melbourne University Archives, Melbourne.

39 Unemployment Bulletin No.6, 21/5/1931, Minute book Trades Hall Council 1930-1932, p232, 1978.0082.0013, Trades Hall Council Papers, Melbourne University Archives, Melbourne.

40 Unemployment Bulletin No.6, 21/5/1931, Minute book Trades Hall Council 1930-1932, p232, 1978.0082.0013, Trades Hall Council Papers, Melbourne University Archives, Melbourne.

41 12/4d equates to 12 shillings, 4 pennies; Unemployment Bulletin No.6, 21/5/1931, Minute book Trades Hall Council 1930-1932, p232, 1978.0082.0013, Trades Hall Council Papers, Melbourne University Archives, Melbourne.

42 Central Unemployed Committee Letter, 3/6/1931, Minute book Trades Hall Council 1930-1932, p247, 1978.0082.0013, Trades Hall Council Papers, Melbourne University Archives, Melbourne.

43 L.J. Louis. Trade Unions And The Depression, 1968, p173.

44 Ibid. p173.

45 Ibid. p173.

46 L.J. Louis. Trade Unions And The Depression, 1968, p159.

47 Gollan, Robin. 'Some Consequences Of The Depression'. Labour History, 1969, no. 17: p184.

48 Trades Hall Council Meeting Minutes, 4/12/1930, Minute book Trades Hall Council 1930-1932, p132, 1978.0082.0013, Trades Hall Council Papers, Melbourne University Archives, Melbourne.

49 Unemployment Bulletin No.4, 23/4/1931, Minute book Trades Hall Council 1930-1932, p208, 1978.0082.0013, Trades Hall Council Papers, Melbourne University Archives, Melbourne.

50 Trades Hall Council Meeting Minutes, 15/1/1931, Minute book Trades Hall Council 1930-1932, p146, 1978.0082.0013, Trades Hall Council Papers, Melbourne University Archives, Melbourne.

51 Trades Hall Council Meeting Minutes, 5/5/1932, Minute book Trades Hall Council 1930-1932, p395, 1978.0082.0013, Trades Hall Council Papers, Melbourne University Archives, Melbourne.

52 L.J. Louis. Trade Unions And The Depression, 1968, p182; School of Historical Studies, Department of History. “Trade Unions - Entry - eMelbourne - The Encyclopedia of Melbourne Online.” Document. Accessed August 27, 2015, p3.

53 Spenceley, ‘Assessing The Response Of The Unemployed To The Depression Of The 1930S∗’, p74

54 L.J. Louis. Trade Unions And The Depression, 1968, p170.

55 Ibid. p191.

56 T.J. Valentine. 'The Causes Of The Depression In Australia'. Explorations In Economic History,1987, 24 (1): 43-62; Mahinda Siriwardana. 'The Causes Of The Depression In Australia In The 1930′S: A General Equilibrium Evaluation'. Explorations In Economic History, 1995, 32 (1): 51-81.