OCR Specification focus:
‘the origins and development of the Labour Party and the Trade Unions from 1893 to 1914.’
Between 1893 and 1914, Britain witnessed the growing importance of the Labour Party and Trade Unionism, reshaping politics by challenging Liberal dominance and extending working-class representation.
Origins of the Labour Party
Background
By the late nineteenth century, industrialisation had created a growing working-class electorate, many of whom felt poorly represented by the existing Liberal and Conservative parties. Earlier working-class MPs often sat as Lib–Lab candidates, supported financially by trade unions but standing under the Liberal banner.
Formation of the Independent Labour Party (ILP), 1893
In 1893, Keir Hardie founded the Independent Labour Party (ILP) in Bradford, promoting an explicitly socialist agenda.
Keir Hardie (1909), a founding figure of the Independent Labour Party and an early leader of the parliamentary Labour movement. His advocacy for independent working-class representation shaped the transition from Lib–Lab ties to a distinct Labour identity. High-resolution portrait from the Library of Congress Bain Collection. Source
Independent Labour Party (ILP): A socialist political party established in 1893 to secure independent working-class representation in Parliament, separate from the Liberals.
The ILP aimed to address issues like poverty, housing, and unemployment, though it initially lacked significant parliamentary strength. Its importance lay in establishing an organised working-class political identity.
Labour Representation Committee (LRC), 1900
Establishment
In February 1900, trade unions and socialist societies formed the Labour Representation Committee (LRC). Its goal was to increase parliamentary representation for labour interests without relying on the Liberal Party.
Chaired by Keir Hardie.
Supported by groups including the ILP, the Social Democratic Federation (SDF), and the Fabian Society.
Crucially, trade unions provided funding and organisational backing.
Early Success
At the 1900 General Election, the LRC won only two seats (Keir Hardie and Richard Bell). However, its foundation represented a critical shift from reliance on Liberalism towards independent labour politics.
The Trade Unions and Political Funding
Growth of Trade Unionism
By 1900, trade unions had become mass organisations, representing millions of workers in industries such as mining, railways, and textiles. They had financial power and could fund candidates.
The Taff Vale Case, 1901
The House of Lords ruled in the Taff Vale Railway Co. v Amalgamated Society of Railway Servants that unions could be held financially liable for damages caused by strikes. This legal decision severely threatened union finances.
Taff Vale Case (1901): A court ruling that made trade unions responsible for financial losses caused by strikes, effectively undermining the right to strike.
The case outraged unions and persuaded them of the necessity of direct parliamentary representation. Consequently, many unions affiliated with the LRC to ensure legislative protection.
Labour’s Breakthrough and Growth
1906 General Election
The 1906 election proved pivotal. With a landslide Liberal victory, Labour also benefited, returning 29 MPs.
Map of the 1906 UK general election constituency results with a clear legend distinguishing parties, including Labourite seats. The figure helps situate Labour’s early parliamentary presence within a Liberal landslide. Note: Constituency-level detail exceeds the syllabus’ minimum but clarifies where Labour secured seats. Source
The party officially adopted the name Labour Party in 1906.
Key points:
The Liberal–Labour pact (1903), negotiated by Ramsay MacDonald, allowed Labour candidates to stand unopposed in certain constituencies to avoid splitting the anti-Conservative vote.
Trade union support gave Labour the resources to contest more seats.
Labour MPs pushed for reforms protecting workers’ rights.
Legislative Success
The new Labour MPs worked closely with the Liberals but asserted their independence. Key achievements included:
Trade Disputes Act 1906: Reversed the Taff Vale judgement, protecting unions from financial liability in strikes.
Trades Disputes and Trades Unions Act 1906: Gave unions legal immunities, strengthening their bargaining power.
The Osborne Judgement, 1909
In 1909, the House of Lords ruled in the Osborne Judgement that unions could not compel members to pay the political levy used to fund Labour candidates. This threatened Labour’s financial base.
Osborne Judgement (1909): A court ruling prohibiting trade unions from using compulsory subscriptions to fund political parties, undermining Labour’s financial security.
The decision led to agitation for reform, eventually resulting in the Trade Union Act 1913, which allowed unions to establish a separate political fund, provided members could opt out.
Development of Labour’s Political Identity
Socialist Influence
Labour’s ideology drew on multiple strands:
The ILP’s socialist policies.
The Fabian Society’s gradualist approach to reform.
Trade union emphasis on economic improvement and worker protection.
This gave the party a broad base but also created tensions between reformist and revolutionary elements.
Leadership of Ramsay MacDonald
As Labour’s first parliamentary leader (1906–1914), Ramsay MacDonald played a crucial role in:
Establishing a professional party structure.
Promoting policies on social welfare, housing, and workers’ rights.
Balancing socialism with practical parliamentary politics.
Trade Unions and Industrial Unrest
Growth in Militancy
The years before the First World War saw increasing industrial unrest, known as the ‘Labour Unrest’ of 1910–1914. Strikes in mining, railways, and docks highlighted worker dissatisfaction.
Causes included:
Poor wages.
Rising food prices.
Long hours and dangerous conditions.
Trade unions grew more militant, demanding legal protections and parliamentary advocacy.
Labour’s Response
The Labour Party sought to channel working-class anger into political reforms rather than purely industrial action, reinforcing its role as the political voice of labour.
The Period, 1914
By 1914:
The Labour Party had become established, with around 40 MPs.
Trade unions were firmly aligned with Labour, providing financial and organisational support.
Despite challenges like the Osborne Judgement, Labour had emerged as a credible third force in politics, representing the working class.
Together, the rise of Labour and trade unionism between 1893 and 1914 marked the beginning of a transformation in British politics, ensuring the working class had an independent political platform.
FAQ
The Fabian Society influenced Labour’s intellectual foundations by advocating gradual, reformist socialism rather than revolutionary change.
Its members included prominent thinkers like Sidney and Beatrice Webb, who promoted policies such as state welfare and regulation of industry.
Their emphasis on research, pamphlets, and education helped shape Labour’s reputation as a practical party focused on social improvement.
Ramsay MacDonald became the Labour Party’s first parliamentary leader in 1906.
He was central to creating the 1903 Lib–Lab pact, which enabled Labour to stand candidates without Liberal opposition in key seats.
MacDonald also worked to present Labour as a respectable, moderate party that could attract support beyond trade unions and socialists.
The Liberals often viewed Labour as both an ally and a potential threat.
They cooperated in the 1903 Lib–Lab pact to avoid splitting the anti-Conservative vote.
At the same time, some Liberals resented Labour’s independence, fearing it might undermine Liberal dominance over working-class voters.
By 1914, the growing presence of Labour MPs showed the limits of Liberal–Labour cooperation.
The Osborne Judgement (1909) meant union members’ subscriptions could no longer be automatically used to fund Labour candidates.
This left individual members responsible for voluntarily contributing to political funds, weakening Labour’s financial stability.
For many workers, this represented a direct restriction on their collective political influence, creating frustration until the Trade Union Act 1913 reversed the decision.
By the early 20th century, trade unionism expanded beyond skilled workers to include larger numbers of semi-skilled and unskilled workers.
Strong support came from:
Miners, who formed one of the largest and most influential unions.
Railway workers, who were key in transport disputes.
Dockers and transport workers, whose strikes highlighted economic vulnerability.
Their growing militancy and collective strength made them crucial allies for Labour’s rise.
Practice Questions
Question 1 (2 marks):
Who founded the Independent Labour Party in 1893, and in which city was it established?
Mark Scheme:
1 mark for identifying Keir Hardie as the founder.
1 mark for stating Bradford as the city of establishment.
Question 2 (6 marks):
Explain two reasons why trade unions decided to support the Labour Representation Committee after 1900.
Mark Scheme:
Award up to 3 marks per developed reason.
1 mark for identifying a reason.
1 mark for providing detail about the reason.
1 mark for explaining why this reason encouraged trade union support.
Indicative content (any two of the following):
The Taff Vale Case (1901): Unions were made financially liable for damages caused by strikes, which threatened their survival. This pushed unions to seek legal protection through parliamentary action.
Desire for independent representation: Many unionists believed working-class interests were neglected by Liberals and Conservatives. The LRC offered a direct political voice for workers.
Support from socialist groups (e.g., ILP, Fabians): The presence of socialist allies within the LRC reassured unions that workers’ concerns would be prioritised.
Funding and organisation: By affiliating with the LRC, unions could pool resources and strengthen their collective influence in elections.
