Weak Unions

After 1890, the trade unions were in a weak position due to the failure of that year's Maritime Strike, and in 1894 the Liberal Government introduced its Arbitration Act.

This Government had earlier passed some progressive labour policy — and despite the fine principle of forced arbitration on employers — this Act was one which weakened the Union movement for many years. Before a union could come under the power of the Arbitration Court it had to register under the Act. In doing so, it was the Government which determined what were "acceptable" union rules and dues. The Act also gave the Government the power to rescind registration of a [unclear: union] for any reason (especially if a union were to go on strike) and had the power to determine which unions would be registered.

Unions were registered on a regional basis — effectively destroying any chance of a national union movement. Registered unions could not legally strike, and unregistered unions were not in a position to strike.