In 1936, while a student at the University of Queensland, Schwarz established the University of Queensland Medical Society (UQMS), a medical student's union. He pursued industrial action before and after his graduation, successfully ensuring better treatment and higher wages for graduating medical students. In Schwarz's obituary Derek H. Meyers wrote, "Although this industrial action seemed scandalous to older doctors at the time, it is clear that every graduate of an Australian medical school since then owes a debt of gratitude to Fred."