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 already in existence in Queensland in 1891. It applied for deregistration on 6 July 1921 in order to register as the Queensland Division of the federated body, the Australian Federated Union of Locomotive Enginemen.