The Australian Labor Party is Australia's oldest party and one of the oldest in the western world. It is the oldest 'left of centre' or workers' or labour parties in the world, being formed before the British Labour Party and long before any in Europe that are still in existence.
The NSW and Qld Branches of the Party were formed in 1891 and there is rivalry as to whether the Party originated in Qld's Barcaldine or NSW's Balmain. Ten years later, following Federation, the Federal Labor Party was formed.
The trade union movement had begun in the Australian colonies in the 1860's to get a better deal for workers. However, the trade unions were repeatedly defeated by employers, the colonial governments and courts and the realisation dawned that political power was necessary to implement reforms. The unions joined together in the NSW Trades and Labor Council and from 1870 the idea of the unions having direct, Parliamentary representation was mooted.
The turning point was the maritime and shearers strike in 1890. The harsh suppression of this strike made many people in the trade union movement recognise the limitations of industrial action and the need for political representation. In March 1891 the NSW Trades and Labor Council set up the Labor Electoral Leagues "in every centre where practicable throughout the colony." Tradition has it that the first Labor League was formed in Balmain on the 4 April 1891. By June 1891 forty-five branches had been established in NSW. The unions, particularly in the bush responded enthusiastically.
The political life at that time was different to what we are used to today. The colonial Parliaments were composed of various factions grouped around their leaders and guided mostly by their own parochial interests. The new Labor Party represented a new approach to politics. The incorporation of trade unions within their formal structures, the promotion of collective action and decision making and the involvement of the mass membership gave the parties unprecedented strength and influence among the working class. At the same time, although strongly influenced by the trade unions, these early Labor Parties were never confined to union membership and interests. From the start, the Labor Party was essentially a pragmatic and non-doctrinaire party, representing a broad range of social and economic interests. The shearers' union (the Australian Workers Union) contained smallholders who sheared part time and shearers who aspired to land ownership. Their interests were different to the members of the urban and radical craft unions.
During the 1890s the organisational models for labor leagues, caucuses and conferences were developed in NSW. South Australia provided the first 'pledged' Candidates and the first majority Labor Government. The caucus system, developed in NSW, was introduced into Federal Parliamentary Labor Party. The NSW Branch has exerted enormous influence on the character of the Australian Labor Party.