Strands #269 “Come Fly With...
Quizzes & Puzzles1 min ago
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For more on marking an answer as the "Best Answer", please visit our FAQ.This phrase started life in the form 'an old Spanish custom' in the 1930s. As Clanad rightly says, it refers to unauthorised working methods, though it has nothing to do with racism in British usage. The sort of situation it applied to was deliberate overmanning, excessive overtime and other means whereby employees took advantage of employers. (Given the centuries during which the boot was on the other foot...why not?)
As to why 'Spanish', it was probably in the same vein as we say 'Dutch courage' and 'French leave'; namely, making fun of old enemies.