NZHistory, New Zealand history online - waterfront dispute

War at home - New Zealand and the Cold War

Waterfront dispute

The emergence of Cold War rhetoric in the late 1940s revived public suspicion of communism in New Zealand. This was especially evident during the bitter 1951 waterfront dispute. Striking waterside workers (wharfies) were denounced as communists by the government and accused of deliberately harming the war effort in Korea. In response the government declared a state of emergency and introduced a series of draconian regulations to keep the ports running. Prime Minister Sidney Holland used the Cold War as justification, claiming that suppressing the strike was part of the overall struggle against communism.

Intelligence services

The increasingly secretive nature of the Cold War during the 1950s raised fears of a threat to New Zealand from covert communist infiltration and subversion.

Cold War refugees

Cold War events in Europe saw an influx of new migrants into New Zealand. In 1956 200,000 people fled Hungary following a failed uprising against communist rule. New Zealand agreed to take a share of these refugees, 1117 of whom had arrived by 1959. They were carefully selected to ensure they would be assets to the country.

Influenced by Soviet spy trials in Britain and the United States and US Senator Joe McCarthy’s ‘reds under the bed’ anti-communist campaign, the spotlight was turned on New Zealand’s public service.

William Sutch

Parliament passed an Official Secrets Act in 1951 and the government established a Security Intelligence Service (SIS) in 1956 to perform security checks on government personnel, and counter espionage and subversion within New Zealand. While most of this work was carried out discreetly, there were several high-profile cases. In 1974 economist William Sutch was charged with, and later acquitted of, passing government secrets to a Soviet agent in Wellington. Six years later, in 1980, the Soviet Ambassador, Vsevolod Sofinsky, was expelled for secretly donating money to the New Zealand Socialist Unity Party.

Sidney Holland

In 1949 Sid Holland became the National Party’s first prime minister when he led the party to victory, ending 14 years of Labour rule. Holland was only the fourth New Zealand-born prime minister. He held office until 1957, when ill health forced him to retire. He had played a major role in the establishment of the National Party, which was to dominate New Zealand politics during the latter half of the 20th century. His leadership during the bitter 1951 waterfront dispute also established his reputation as one of the more contentious prime ministers of this period.

Born at Greendale, Canterbury, Sid was one of eight children of English-born parents Jane Eastwood and Henry Holland. In 1912 his father was elected mayor of Christchurch; he later entered Parliament as the Reform Party MP for Christchurch North, a seat Sid was to inherit.

During the First World War Sid Holland served as a sergeant, and later a second lieutenant, in the New Zealand Field Artillery. He was invalided home after the battle of Messines in 1917. He spent six months in hospital and after several operations lost a lung.

Sid and one of his brothers founded the Midland Engineering Company in Christchurch. He became involved in a number of Canterbury business organisations. After a brief flirtation with the New Zealand Legion, a staunch opponent of the socialist New Zealand Labour Party, Holland played a leading role in the establishment of the National Party in 1936.

Sid had succeeded his father as MP for Christchurch North (later Fendalton) in 1935. He gained a reputation as an effective debater and was seen as the man to unite the divided and demoralised opposition. He succeeded the ‘lacklustre’ Adam Hamilton as National Party leader in late 1940.

Holland, with his belief in ‘individual freedom, initiative, opportunity, enterprise, responsibility and reward’, was highly critical of the Labour government’s new social security system, which he claimed made people too dependent on welfare. While a proud New Zealander, he stressed the importance of maintaining strong ties with Great Britain, describing himself as ‘a Britisher through and through.’

In June 1942 Holland somewhat reluctantly joined the War Cabinet and a larger War Administration. He was given ministerial responsibility for war expenditure. He criticised economic waste, bureaucratic regulation and press censorship, all of which he saw as extending and consolidating state control. In September 1942 he withdrew from the War Cabinet when the government intervened in a court case involving coalminers convicted of striking illegally at Huntly. The War Administration was disbanded and Holland was criticised by fellow National MPs Gordon Coates and Hamilton, who left the National caucus and rejoined the War Cabinet as independent MPs. But Holland’s leadership was strengthened – he was now free to attack the government without reservation.

One of Holland’s first actions following National’s victory in 1949 was to abolish the appointed upper house of the New Zealand Parliament, the Legislative Council, which he regarded as ineffective.

While failing to keep its promise to abolish compulsory unionism, Holland’s administration did take a hard line against militant trade unions such as the New Zealand Waterside Workers’ Union. Following the bitter 1951 waterfront dispute he called a snap election in which National consolidated its hold on power by capturing 50 of the 80 seats in Parliament.

Between 1951 and 1954 Holland’s government began to deregulate the economy. Rationing of petrol and butter came to an end and import licensing was freed up. Controls on the price of land, houses and property were also removed. Full employment and social security were maintained. In foreign policy, New Zealand signed the ANZUS Treaty with the United States and Australia in 1951.

By 1956 Holland’s health had begun to deteriorate. He reluctantly resigned as prime minister in August 1957 and was replaced by Keith Holyoake on 20 September. He was knighted and retired from Parliament at that year’s general election.

Holland had a reputation as a tough, autocratic leader but he was also capable of delegating power to his ministers. Despite his gruff public persona he was a man of considerable personal warmth and humour. Sid Holland died in Wellington Hospital on 5 August 1961. His son Eric became National MP for Fendalton and Riccarton (1967-81) and a Cabinet minister (1975-78).

See biography of Sidney Holland

Credit:

Alexander Turnbull Library
Reference: 1/2-038341-F
Permission of the Alexander Turnbull Library, National Library of New Zealand, Te Puna Matauranga o Aotearoa must be obtained before any reuse of this image.

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Sidney Holland

The Hollands were a Canterbury political dynasty. Sid’s father, Henry, a mayor of Christchurch, entered Parliament in 1925. Son Eric followed Sid into the House.

After war service, Sid Holland founded a manufacturing company with his brother. Active in business organisations, he flirted with the extreme right before joining National and entering Parliament in 1935.

No intellectual but a sharp debater, Holland boosted a divided, demoralised opposition and became party leader in 1940. His position was strengthened when Gordon Coates and former leader Adam Hamilton joined Labour’s War Cabinet.

Holland became PM in 1949. A year later he abolished the Legislative Council, and in 1951, after winning the Waterfront Dispute, he increased his majority in a snap election.

Like William Massey, Holland was pragmatic. He ensured that National preserved ‘Labour’s social security while restoring, under free enterprise, the spiritual values of liberty, individual initiative, and loyalty to the traditions of empire.’

Holland’s health began to deteriorate in 1956, and he was persuaded to step down just weeks before the 1957 election.

Written by Gavin McLean

Fintan Patrick Walsh

Fintan Patrick Walsh, c1956. Walsh is perhaps best remembered as a controversial opponent of striking waterside workers during the bitter 1951 waterfront dispute.

Read more about Fintan Patrick Walsh

Credit:

Alexander Turnbull Library
Reference: 1/2-C-014466-F
Photograph: S.P. Andrew Ltd
Permission of the Alexander Turnbull Library, National Library of New Zealand, Te Puna Matauranga o Aotearoa, must be obtained before any re-use of this image

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fintan patrick walsh

Fintan Patrick Walsh

As a leading trade unionist from the 1930s until his death in 1963, Fintan Patrick Walsh established himself as one of the most powerful figures in New Zealand. His ruthless manner in dealing with opposition aroused great loathing in his enemies. At the same time the man whose dark hair and features saw him dubbed the ‘Black Prince’ inspired intense loyalty from his followers. Walsh had a physically dominating presence with oratory skills and intellect to match. He is perhaps best remembered as a controversial opponent of striking waterside workers during the bitter 1951 waterfront dispute.

Walsh was a man of many names. Commonly referred to as Jack, he began life as Patrick Tuohy. He was born in 1894 in rural Poverty Bay, one of 11 children of Irish farming parents Andrew Tuohy and Hannah O’Sullivan. He had his first taste of union militancy in the United States in 1916. By 1919 he had a new name, Patrick Walsh, to which he later added Fintan. He suggested the name change was to avoid victimisation in the United States due to his trade union activities.

Walsh returned to New Zealand in 1920, working as a seaman. He had a brief early flirtation with communism (he was a founding member of the Communist Party of New Zealand in 1921), but resigned from the party in 1924 and became increasingly critical of communists. He became president of the Federated Seamen’s Union of New Zealand (FSU) in 1927, a position he held until his death in 1963. As a member of the executive of the New Zealand Alliance of Labour from 1928, Walsh promoted direct industrial action in preference to political reform.

Walsh’s position on arbitration and the use of political means as opposed to direct industrial action softened as a result of an increasingly close relationship with the Labour Party’s deputy leader, Peter Fraser. After Labour’s election victory in 1935, he convinced FSU members that union militancy would hurt a government sympathetic to their aims. He joined the executive of the newly formed New Zealand Federation of Labour (FOL) in 1937, and was able to secure the support of the numerically strong pro-arbitration craft and occupational unions. He was elected the FOL’s vice-president in 1946 and president in 1953.

In 1942 Walsh was appointed to the government’s Economic Stabilisation Commission. Central to the government’s plans for the wartime economy was keeping wage demands in check. Workers accepted the need for wartime sacrifices but sought a relaxation of economic controls when the war ended. The government – and Walsh – disagreed. The Commission remained active until 1950 and dealt with wage demands through the centralised arbitration system. Matters came to a head at the 1950 FOL conference when a number of unions, including the waterside workers, walked out and formed the rival New Zealand Trade Union Congress.

The waterfront dispute of 1951 was the biggest industrial confrontation in New Zealand’s history. It lasted for 151 days, from February to July. At its peak, 22,000 unionists were off the job. The dispute took place in a climate of Cold War suspicion. The opposing sides denounced each other as Nazis, Commies, traitors and terrorists. Walsh and the FOL sided with the National government against the striking wharfies and their allies. Walsh called on wharfies to ‘abandon their Communist-dominated misleaders’. Opponents denounced him and FOL colleagues as ‘rats who had betrayed the workers’ cause’.

The Labour Party regained power in 1957, but Walsh roundly condemned its 1958 ‘black budget’ as an attack on workers. Some accused him of disloyalty and he faced increasing discontent from within his traditional power base. In 1960 he was dumped as president of the Wellington Clerical Workers’ Union, a position he had held since 1936. A number of libel actions followed as Walsh faced increasing dissent from the right of the union movement. In his last speech to an FOL conference, in 1963, Walsh spoke with the militancy of his younger days, preaching class struggle and denouncing the arbitration system.

He died shortly afterwards and in accordance with his wishes there was no burial service. His grave in Karori cemetery is near Peter Fraser’s memorial.

See also: biography of Fintan Walsh on the DNZB website

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Walter Nash

At almost 76, Walter Nash was New Zealand’s oldest incoming PM and the last one born outside New Zealand. He had two wives, Lotty, and Parliament. He was still an MP when he died aged 86.

A solid deputy but flawed leader, Nash was so indecisive that people joked that if asked to name his favourite colour he would have replied ‘plaid’. His ill-advised statement during the bitter 1951 waterfront dispute – that Labour ‘are not for the waterside workers, and we are not against them’ – typified this failing.

At his worst, Nash was a verbose, vain vacillator who drowned people in paperwork. At his best he served Savage and Fraser ably as finance minister, introducing guaranteed prices for dairy produce. He also played a major role in creating Labour’s social welfare system. In 1942-3 he worked in Washington as resident minister to co-ordinate the war effort. In 1944 he attended meetings that created the General Agreement on Tariffs and Trade (GATT) and the International Monetary Fund (IMF). He never lost his love of travel (it was said he would attend the opening of an envelope) and interest in international relations.

When Peter Fraser died in 1950, Nash took over. His brief prime ministership was memorable mainly for its frequent overseas travel, the 1958 ‘Black Budget’ and for an industrialisation programme that included the Tiwai Point aluminium smelter. He was replaced as party leader in 1963 and knighted two years later.

Written by Gavin McLean

PM Holland declares state of emergency, 1951

Hear the declaration of a state of emergency being read out by Prime Minister Holland, 21 February 1951.

Transcript

Yesterday, Tuesday, at noon, I called the representatives of the watersiders to my room. And I issued them what would be interpreted as being an ultimatum. And said that the government would be loath to take any extreme action, but we felt that, if conditions of emergency did exist, that we would require the powers of such a proclamation to deal with the situation. Now we didn't take the action that some people would expect of us, and that is to declare a state of emergency there and then. We disclosed to the watersiders themselves knowledge of our intention and said unless work is resumed—normal work throughout New Zealand, is resumed on the wharves tomorrow—that's today now, Wednesday, then a proclamation of emergency will be declared.

[End]

Audio: Radio New Zealand Sound Archives Ngā Taonga Kōrero. Any re-use of this audio is a breach of copyright. To request a copy of the recording, contact Sound Archives Ngā Taonga Kōrero. 'Dispute' an account of the 1951 waterfront conflict, 1968. Reference no: T81

Image reference:
Alexander Turnbull Library, Wellington, New Zealand
Reference: Prime Minister Mr Holland [ca 7 Sept 1951] 114/346/10-G
Permission of the Alexander Turnbull Library, National Library of New Zealand, Te Puna Matauranga o Aotearoa must be obtained before any reuse of this image.

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Strike-breakers enter the wharves, 1951

A covered truck carrying strike-breaking (or scab) waterside workers enters a guarded gate at the Wellington wharves during the 1951 waterfront dispute. This photograph was taken on 5 June.

Credit:

Alexander Turnbull Library
Reference: 114/295/01-F
Permission of the Alexander Turnbull Library, National Library of New Zealand, Te Puna Matauranga o Aotearoa must be obtained before any reuse of this image.

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Union march during 1951 waterfront dispute

On 2 May 1951 baton-wielding police confronted marching waterside workers, seamen, freezing workers and other supporters at the intersection of Cuba and Dixon streets in Wellington. More than 1000 unionists had set off from the Wellington Trades Hall intending to march on Parliament, only to find their way blocked by 100 police. After scuffles broke out between constables and the leading ranks of marchers, waterside leaders Toby Hill and Tommy Wells persuaded the unionists to disperse to avoid further violence.

Credit:

Alexander Turnbull Library
Reference: PAColl-4920-3-11-02
Permission of the Alexander Turnbull Library, National Library of New Zealand, Te Puna Matauranga o Aotearoa must be obtained before any reuse of this image.

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Further information - 1951 waterfront dispute

This web feature was written by Neill Atkinson and produced by the NZHistory.net.nz team.

Publications

Michael Bassett, Confrontation ’51: the 1951 waterfront dispute, Reed, Wellington, 1972
Tom Bramble (ed.), Never a white flag: the memoirs of Jock Barnes, waterfront leader, Victoria University Press, Wellington, 1998
David Grant (ed.), The big blue: snapshots of the 1951 waterfront lockout, Canterbury University Press, Christchurch, 2004
Dick Scott, 151 days: official history of the great waterfront lockout and supporting strikes, February 15–July 15, 1951, facsimile edition, Reed, Auckland, 2001
Marcia Spencer, The incoming tide: Sir William Sullivan and the 1951 waterfront dispute, M. Spencer, Wellington, 1998

1951 - documentary

The film about the 1951 waterfront dispute won Best Documentary and John Bates was named Best Director, Documentary, at the 2002 New Zealand Television Awards.

NZHistory, New Zealand history online - waterfront dispute

War at home - New Zealand and the Cold War

Waterfront dispute

Intelligence services

Cold War refugees

Sidney Holland

Sidney Holland

Fintan Patrick Walsh

Fintan Patrick Walsh

Walter Nash

PM Holland declares state of emergency, 1951

Transcript

Strike-breakers enter the wharves, 1951

Union march during 1951 waterfront dispute

Further information - 1951 waterfront dispute

Links

Publications

1951 - documentary