136
The History of New Zealand
Trade Unions. Cold War hysteria ran high at this time, and the majority
of the electorate held deep suspicion of any organization with affiliation
to communism. The NZWWU responded by forming an alternative Trade
Union Congress (TUC) representing some 75,000 workers. The govern-
ment watched, delighted, as the union movement split without its having
to do a thing. Even so, the NZWWU still held considerable industrial
muscle and was capable of putting up a stiff fight.
Throughout the rest of 1950 Barnes and Hill taunted government, port
authorities, and the shipping companies by holding a series of lightning
strikes over relatively trivial matters such as tea breaks and handling dirty
cargoes. Government only averted a major showdown by appointing a
royal commission of inquiry into the waterfront industry. By Christmas
the NZWWU had alienated just about everybody, and the public held little
sympathy for New Zealand's highest-paid workers.
Holland knew that he held the upper hand when the TUC rejected a 15
percent wage increase in February 1951. When Barnes ordered an over-
time ban, the more consensual deputy prime minister, Keith Jacka Hol-
yoake, tried to persuade the parties to return to arbitration. Holland,
however, who returned from Washington, D.C., a few days later, would
have nothing to do with reconciliation. He wanted to break the power of
the NZWWU once and for all and so guarantee the free flow of exports
from New Zealand's ports. Farmers naturally agreed with him, but so too
did urban businessmen, clerical workers, and professionals. Holland, sens-
ing the moment, deregistered the NZWWU on February 26 and declared
the strike illegal. He also declared a state of emergency and introduced
the draconian powers of the Public Safety Conservation Act of 1932. This
legislation had been introduced to restore order after the Depression riots
of early winter of
1932
and involved the loss of all civil liberties, including
the right of free speech. No one could legitimately tell the NZWWU side
of the story thereafter. Instead the beleaguered union members had to set
up their own illegal presses and risk clashes with the police and arrest
without trial if they tried to organize public rallies.
A few liberals expressed horror at the loss of civil liberties, but few
others gave the NZWWU much support during the ensuing bitter 151-
day strike. Servicemen loaded the boats with much less skill than the
regular workers, and the economy continued to boom. Walter Nash, the
new leader of Labor, did not help much when he stated that his party was
neither for nor against the strike. He meant that Labor objected to the
extremism of both sides and wanted a return to arbitration, but it sounded
weak and lost him support from both the unions and the general public.
As the months passed, waterfront workers' families began to suffer real