The formation of the union resulted in the railways and harbours of the colonies being amalgamated under one organisation.
The Hodgson Brothers v South African Railways and Harbours (1928 CPD 257) dispute in 1928 was an important case of contract law.
[1]: 367 SAR&H was governed by the Railways and Harbours Board which comprised a Chairman, the Minister of Transport, and three commissioners.
[1]: 367 In 1924 as a result of the industrial depression, the government adopted a "civilised labour" policy, the intention of which was to ensure that the European minority did not sink below the level of the non-European workers.
[6] The South African Railways and Harbours Union was formed after a meeting of the staff in Cape Town on 1 April 1936 addressed by Rachel Simons.
About a third of the Africans were officially casual workers, paid a daily rate with no leave, pension rights of marriage allowance.
[4]: 100 At the same time, the enterprise was restructured into units and divisions with strong emphasis placed on localized management.
Wages were then not much worse than in other industries, but migrant workers, the majority, were forced to live in hostels or compounds in primitive conditions.
[9] Industrial relations were regulated by the Conditions of Employment (South African Transport Services) Act, 1983.
[10] On 1 April 1990, after 80 years of government and parliamentary control, SATS received company status.