The object of this thesis is to analyse members' attitudes to the principle of preference contained in the Commonwealth Conciliation and Arbitration Bill (1904). In light of this object the primary problem is to explain the significance of the Preference Clause. Part I introduces the main theme, that the significance of the Preference Clause is explained by two circumstances. The first is an explanation of how arbitration became the solution to the pattern of ind.us trial relations which developed, and the place of preference in arbitration. The second circumstance is the place of the Preference Clause in the party machinations of the period while observing that these circumstances both determine and affect members' attitudes. Part II (1860-1890) describes the pattern of industrial relations up to the point of the industrial crisis of the Mari time Strike. Part III (1891-1901) relates the crisis of the strike to the industrial and political developments in this decade. The industrial event of arbitration and the political event of the formation of Parliamentary Labour Parties form the immediate background to the crisis over preference. The description of arbitration demonstrates the rationale behind preference while the description of the Labour Party demonstrates the reason why preference should be distasteful to members when advocated by a Labour Party. Part IV constitutes the main body of the thesis. It describes in broad terms the form of the crisis and specifically the members' attitudes. Part V concludes in the form of a postscript, commenting briefly on the fortunes of the preference clause and the clause controlling political status of unions over the next decade.