The party has its origins in the pressure group by the same name founded in 1973. This group founded a political party in early 1977 to participate in the Surinamese general election of 1977. After the 1980 Surinamese coup d'état the party tried to steer the revolt into the direction of a workers' revolution. Under the leadership of Iwan Krolis and Errol Alibux, PALU had close contact with the military leadership headed by Dési Bouterse and was the only party allowed to be politically active in Suriname. In 1981 and 1983, PALU was part of the Surinamese government, with Errol Alibux serving as Prime Minister of Suriname.