The panel of the Prime Minister's Literary Awards has been accused of political bias after presenting the top history prize to a book trade unionists and left-wing commentators say is a "union-bashing" rant.

The joint winner of Monday night's prize for history was Hal Colebatch for Australia's Secret War: How unions sabotaged our troops in World War II, published by the conservative Quadrant magazine.

Tony Abbott at the Prime Minister's Literary Awards. Credit:Josh Robenstone

It is self-described as the "untold story" of a war waged by maritime unionists against their own society and servicemen from 1939-45, by targeting every major Australian warship with strikes, go-slow actions and sabotage that left combat crews without food and equipment. Their actions were said to be a calculated attempt by Communist union leaders to sabotage the war effort.

On Tuesday, a vicious war of words erupted on social media between the left and the right, with former Fairfax columnist Mike Carlton leading the chorus of condemnation against the gong.