On November in the year of 1957, a dispute occurred when the government gave permission to white tour companies for the management of transportation services which carried tourists from the airport to Downtown Nassau. The reason why was because they wanted an increase in their business, so vehicles such as cars and buses were purchased .An Airport Board was also given to the new Nassau International Airport that had the responsibility for controlling parking regulations since there was an agreement formed on a franchise project. This taxi firm had been owned by a British resident but controlled by Bay Street Representative's for a local bus company and meter.
The scheme consisted of an expansion in the seating capacity of hotel vehicles that would exclude the Taxi Cab Union.
They informed them that their services weren't needed anymore, making officers distressed at the possibility of no longer having their jobs. Since it would have threatened the opportunity to provide for their families. November 1, 1957 the Taxi Cab Union, under the guidance of Sir Clifford Darling and others, blockaded all the traffic to and from the Nassau International Airport. The Commissioner and his policeman were not certain on how to handle the situation . A negotiation took place several weeks later, but failed between the parties.
Sir Randol Fawkes, known as the founder of the Bahamas Federation of Labour, was asked for assistance. He suggested at a meeting stating that the B.F. of L. should hold a General Strike to aid the Taxi Union and exaggerate the fight of all Bahamians for greater importance and self-respect on the job site through decent wages and better working conditions. In order to persuade the government until he addressed the labour issues. January 12, 1958, the general strike began and was suppose to last sixteen days.
Hotels eventually closed, racial struggle intensified, and troops were called in.
The purpose of the event was to prevent hundreds of black Bahamian independent taxi drivers from being destroyed. January 21, 1958, the incident made the tourist industry declined which negatively effected the economy . Public servants didn't demonstrate violence as they either surrounded or boycotted supreme Bay Street businesses. The governor, Sir Raynor Arthur, informed the Commander of the Caribbean district about the tragedy, and requested that British troops be sent from Jamaica. He panicked because he was afraid that the racial strain would result in the consequence of disorder and violence.
January 29th, 1958, His Excellency brought together representatives of the tour companies and the Taxi - Union . After the discussion, officers of each organization signed an elaborate contract providing for a more impartial division that would help transport passengers to and from the airport . As a result of the General Strike, wages increased, insurance was given to workers, and discriminatory practices restricted. In addition to this, Alan Lennox Boyd, the British secretary of state visited The Bahamas allowing for electoral reforms, education improvements, and medical services for all Bahamians, black and white, either gender. The government passed the Trade Union and Industrial Conciliation Act in July of 1958, almost five months after the strike.
The Department of Labour later on also being established.