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Friendly Societies, The Spirit of Co-Operation
Friendly societies have been around for a long time but they became popular during the industrial revolution and grew significantly in number in the 19th century. They were mutual associations formed to provide for a specific purpose – such as funeral costs, life insurance, medical costs (sickness cover, pharmaceutical costs and hospital insurance) and pensions (or to provide for times of unemployment) for members.
Friendly societies reflected a tradition of self-help and were started as a means to protect workers and their families from financial hardship due to ill health, death and other misfortunes. They were often formed around religious, political, or trade orientations or affiliations. Many started as locally based societies and members would contribute small payments each month into a fund which could be drawn on in adversity – that is to in effect insure against times of need.
Australian friendly societies included those that were local versions of larger British societies – such as Grand United Order of Oddfellows (GUOOF), the Ancient Order of Foresters (AOF), and the Manchester Unity Independent Order of Oddfellows (MUIOOF), as well as many societies unique to Australia – such as the Hibernian Australasian Catholic Benefit Society (HACBS) in Ballarat, Maitland Union Benefit Society (founded 1840), Melbourne Sawyers’ Friendly Society, and Protestant Alliance Friendly Society.
Over the course of the 20th century friendly societies gradually decreased in number and prominence as the state took over responsibility for the social safety net of health care, aged care, workers injury and unemployment benefits. In recent times, the insurance aspect of the societies became increasingly important, with some societies demutualising and developing into commercial insurance entities.
Friendly societies were seen as being of benefit to Australian society and this is shown in the words written by Prime Minister Ben Chifley in 1948, “I have known and understood the valuable contribution the Friendly Societies of the Commonwealth have made to the welfare of Australians who have the foresight to become members of an organisation which is one of the earliest and most successful examples of the value of co-operative effort.” (From the Foreword to the 100 Grand United Years: Centenary of the Grand United Order of Oddfellows Friendly Society published October 1948).
Interestingly, some friendly societies also sponsored credit unions. Early examples include National Oddfellows Co-operative Savings and Loans Society and Ancient Order of Foresters Co-operative Savings and Loan Society NSW (both registered in NSW in 1945). Other examples include The Irish National Foresters Co-operative Savings and Loans Society, The Grand United Savings and Loans Co-operative Society Limited, The United Ancient Order of Druids (New South Wales) Small Loans Co-operative Society, Independent Order of Odd Fellows SA Credit Union, Manchester Unity Oddfellows Credit Union Society and Druids Savings and Credit Union Co-operative Limited (VIC).