The flood tide of 1968–74 arose out of the contradictions of Australia's postwar economic boom and the politics of the Cold War.

The postwar upsurge

In 1943, after a sharp drop at the height of the Pacific War in 1941–42, the strike rate in Australia began to recover quickly (see Figure 1.1). Workers went on the offensive for higher wages, better working conditions and an end to the speed-up of work associated with wartime conditions. The strike rate then exploded as the war ended. Workers were determined to make good the losses that they had experienced during the war and the Great Depression that had preceded it. Now it was time to turn the screws on the employers. They met stiff opposition not just from the employers but also from the new Labor Prime Minister, Ben Chifley, who was determined to continue the program of wartime austerity prosecuted by his predecessor John Curtin. However, workers were not to be deterred. Strikes broke out in a wide range of industries. Large May Day rallies marched through the streets in a parade of strength. Working-class women stormed shops protesting against the high price of goods.

Amid a range of workers' demands, two emerged as central: a 40-hour working week and an increase in wages. The breakthrough came with a successful six-month strike by Victorian metalworkers in 1946–47, which overcame all efforts by the state and federal Labor governments to defeat it.