The Union was originally known as the Federated Railway Locomotive Enginemen's Association of Australasia after the amalgamation of the Locomotive Engine Drivers' & Firemens' Association from Victoria, New South Wales, South Australia and Queensland. In February 1921, it was renamed the Australian Federated Union of Locomotive Enginemen and gained federal registration with the Federal Arbitration Court. By 1926 the union had changed its name to the Australian Brotherhood of Locomotive Engineers, but reverted back to Australian Federated Union of Enginemen in 1927. In 1993 the AFULE merged with the Australian Tramway & Motor Omnibus Employees' Association, the National Union of Rail Workers of Australia and the Australian Railways Union to form the Australian Rail Tram & Bus Industry Union.

The union was formed prior to 1883 as the Tramway Drivers, Firemen and Cleaners' Association of NSW, and registered in May 1884 as the NSW Engine Drivers' and Firemen's Association. From about 1888 it was known as the NSW Locomotive Engine Drivers, Firemen and Cleaners Association. It continued to function as a New South Wales-based association, with no national affiliation, until 1900 when the Australian Federation of Locomotive Enginemen was formed.