Originally Posted by Redkop
From Wikipedia
"Woollyback" is a term used in Liverpool, England to describe people who come from outside Liverpool, especially those from Lancashire, which is sometimes used pejoratively towards those perceived as outsiders by Scousers, natives of Liverpool.
The term is believed to have originally referred to the people who worked in wool factories in towns near Liverpool, such as Blackburn, St Helens or Wigan. They would walk to Liverpool carrying the wool on their backs, therefore they became known as Woollybacks, and now the term refers to anyone from the county of Lancashire.
That's similiar to the version I know.
Woolyback, was origanally given to labour brought into liverpool from warrington/widnes/st helens area to break a dispute with the dockers. It was pre cranes when everthing was manually carried of the ships. To ease the pressure on thier backs they wore a sheeps fleece (hence woolyback). The phrase has since been expanded and is a derogatry slang name for anyone not from liverpool.