The South African Railways and Harbours Union was formed by black workers of the South African Railways and Harbours Administration after they had been expelled from the National Union of Railway and Harbour Servants.
Rachel Simons, then known as Ray Alexander, played a significant part in setting up the organisation, and was helped by Johnny Gomas, the General Secretary of the Cape Town Stevedoring Workers Union. It was launched at a meeting on 26 March 1936 where Willy Driver was elected Secretary. By July 1936 it had 1300 members. Its first conference, attended by 26 delegates, was held in Cape Town on 3 and 4 August 1936. It decided to affiliate to the International Trade Union Committee for Black Workers and the South African Trades and Labour Council. As Africans could not rent premises in towns it operated from the premises of the Cape Town Stevedoring Workers Union at 57 Plein Street, which was rented in the name of White members of the South African Communist Party. The Union submitted grievances to the management of the South African Railways and Harbours Administration, but were not allowed to negotiate.
In 1937 Ray Alexander produced a pamphlet for the union called "We Want to Live". It pointed out that the Cape Town City Council paid its labourers 6/8d a day but railway workers were only paid 3/6d or 4/-d a day. In Bloemfontein there was a general minimum wage of 3/6d a day but this did not apply to railway workers, who were paid less. The average wage of the 28,000 casual labourers was less than £32 a year - less than the average wage of black workers in 1920. Many black staff had no definite hours of work, but were required to be available as required. African workers only got 3 days paid holiday a year (Good Friday, Christmas Day and Union Day).
The union joined the Council of Non-European Trade Unions when it was established in November 1941.
Sarah Carneson was general secretary in 1945.