The Price of Beer

The early years of Federal administration of Darwin and the Territory were far from smooth. There were numerous strikes and disputes, and Administrator Gilruth’s personal style added to the tension between the people and the government. Despite efforts by the government, Darwin’s thirst for liquor did not abate, and the lack of political representation and voting rights since the transfer to the Federal government left many in the Territory feeling their concerns were not being heard.

Soon after the transfer to administration, the Northern Territory branch of the Australian Workers Union (AWU) was formed in December 1911. Initially formed as a branch of the Queensland union, the AWU soon expanded in the Territory over the coming years and its membership included most industries in Darwin, particularly in three of Darwin’s main industries: wharf and rail workers, Vestey’s meat workers, and hotel staff. The AWU grew rapidly, with 128 members in 1912, the AWU claimed over 1000 members throughout the Territory by 1916.

Harold George Nelson, arrived in the Territory shortly after Gilruth in 1913, to work as an engine driver in Pine Creek. Described by Dr. Harald Jensen as a “medium-sized, nuggety man with a good education,” Nelson was “diplomatic and tactful” and a gifted public speaker. Due to his previous union experience in Queensland, he was elected Secretary of the AWU in Darwin in 1914. Nelson soon clashed with Gilruth, and quickly gained a reputation as “the staunchest of unionists.”1

The AWU was not afraid to use the power it drew from the workers, and in the absence of any direct representation, they took to direct action. The AWU called numerous strikes throughout the 1910s, some relating only to specific industries, such as a wharf strike in 1913 and strikes at Vestey’s meatworks, others such as the strikes in 1914 were more general and part of Australia-wide strikes that covered most of Australia’s coastline. The strikes continued throughout World War I, and the industrial situation remained volatile throughout the entire decade.

Strike meeting at Darwin in open air picture show, march 1915 – Northern Territory Library – 10070/71028

Most of these disputes centred around issues of pay, and working and living conditions, and representation. However they also extended to divisions within Darwin society, which mirrored Australian society at large. The AWU frequently attacked the Administration for not following the White Australia policy, and for employing Chinese and Aboriginal labour in state hotels and other industries.

This included a mine in which Gilruth had a personal stake in, which was staffed by Chinese labour, despite official Federal government guidelines saying it must only employ white labour. The “union movement was not interested in the plight of Aboriginal workers except for when they competed with ‘white’ union members for jobs.”

Shortly after hotels were transferred to government control, the price of beer was also raised. This lead the AWU to call a ‘beer strike’, where union members refused to drink beer at the government hotels, which lead to a loss of revenue, and eventually further loss from the beer going off. The hotels were targeted in particular because “the hotels were being run in opposition to the public interests”2, as well as the increase in beer prices. However despite a number of such strikes from 1915 onwards, the AWU was unsuccessful in their aims of having the prices reduced, or having profits of the hotels spent on public works.

Similar strikes were called over the next few years over the price of beer, and the working conditions and pay of the hotel staff. Unionists who failed to comply with the strikes (by drinking at the Government hotels) were kicked out of the Union. The beer strikes were generally successful as “no one in Darwin was drinking at the State Hotel bars” and “the hotels kept closed doors, and preserved a funeral appearance.”34.  The beer strikes extended beyond the hotels to all AWU industries, such as wharf workers refusing to unload the Houtman with “570 cases of beer on board, and, as the local supply was exhausted some days ago, the territory will be a ‘dry State'”5

Some claimed the “only redeeming feature of the strike has been the voluntary abstinence from intoxicants by union members,”6 however this is not to say that the Unionists stopped drinking completely. As “almost nightly” liquor thefts were reported, and Chinese sly groggers made huge profits. Once the strikes had finished, the “reopening was the signal for a wild burst of drinking, and all the hotels did a roaring trade.”7

Relations at Vestey’s Meatworks were faring no better than at the hotels, railways or docks. Many of the workers were from Melbourne and Sydney, with the promise of higher wages. However while higher than down south, they were recruited “under agreement with Vestey Brothers to work below the local rate of wages,”8 which were insufficient to live on with Darwin’s high prices and harsh conditions. This lead to many strikes, even as construction was just starting, until wages were brought into line with those in Darwin. This also led to almost the entire Vestey’s workforce joining the AWU.

To add to further tension with the AWU, Carey, second in the Administration to Gilruth, was appointed as chief secretary at Vesteys.

Strikes / Nelson / Gilruth

The end of World War One, while greeted with great celebration, brought more problems for Gilruth and the Administration. With the announcement of victory, Vestey’s granted their workers a week off with full pay, and AWU dock workers also were granted time off. However Gilruth refused to give any time off to hotel staff – employed directly by the Territory – even for Armistice Day itself. The AWU hotel staff did not work, participated in celebrations for the day, in a sort of informal strike. However in retaliation, Gilruth then suspended them from work from the following day onwards.

Shortly after not allowing Hotel staff to celebrate Armistice Day, Gilruth once more raised the price of beer, by 16%. At a meeting called to address the issue, the AWU presented evidence that it was on the orders of Gilruth himself that the price had been raised once more, with Nelson exclaiming: “we are being robbed by a big despot. Are you prepared to allow him to continue robbing you?”

Nelson ended his address “in the near future you will be asked to take action, and I hope you will rise to your responsibility, and end the reign of despotism!”

reduce price of beer – “No chance”9

“Would you favour a recommendation for the municipilasiation of the hotels, with the profits spent in the improvement of the town?” “No, the Government would not be inclined to do so”10