Political parties have to adapt or die. If a party becomes fossilised while the rest of the world evolves it will lose support. As society changes, the size, characteristics and influence of groups that once formed the party's base may also begin to change. One hundred years ago, one-half of the Australian labour force, mainly blue collar workers, was employed in manufacturing and rural industries. As the rural workforce declined in the following decades, that proportion slipped a little, but the big surge in factory production during and after World War II saw it recover. The Australian Labor Party found its core of support among these workers. Today, by contrast, manufacturing and rural industries employ only one in seven, so Labor must garner votes from outside its historic blue collar base if it is to win elections. This shift throws up a big question: Is Labor still the party it once was or has it undergone a fundamental transformation? Debate has raged over this question for years. The answer depends on what you think the Labor Party is. This chapter identifies the essential character of the ALP – what makes Labor what it is – and also outlines several important debates about the nature of the Party.

A capitalist party?

For many modern Labor leaders, the character of their organisation is obvious. There is a continuous Labor tradition that embraces governments as diverse as those of Andrew Fisher, Jim Scullin, Gough Whitlam and Kevin Rudd.