🏭American Business History Unit 4 – Labor Movements and Unions in US History

Historical Context and Origins

• Industrialization in the late 19th and early 20th centuries led to rapid economic growth but also poor working conditions and low wages
• Influx of immigrants and rural workers to cities created a large pool of cheap labor (Irish, Italian, Eastern European)
• Laissez-faire capitalism and lack of government regulation allowed employers to exploit workers
  • Long work hours, often 12-16 hours per day, 6-7 days a week
  • Unsafe working conditions, lack of safety regulations, and frequent accidents (Triangle Shirtwaist Factory fire)
• Rise of socialist and anarchist ideologies influenced early labor organizers and movements
• Skilled workers in crafts and trades were the first to organize unions to protect their interests (Knights of Labor)

Key Labor Organizations

• Knights of Labor (1869) was one of the earliest labor organizations, open to all workers regardless of skill, race, or gender
  • Advocated for 8-hour workday, abolition of child labor, and cooperative ownership of businesses
• American Federation of Labor (AFL) founded in 1886, focused on organizing skilled workers in craft unions
  • Led by Samuel Gompers, emphasized collective bargaining and "bread and butter" issues like wages and hours
• Industrial Workers of the World (IWW) or "Wobblies" founded in 1905, organized unskilled workers and advocated for radical social change
  • Engaged in direct action tactics like strikes, sabotage, and free speech fights (Lawrence Textile Strike)
• Congress of Industrial Organizations (CIO) formed in 1935, organized workers in mass production industries like auto and steel
  • Used sit-down strikes and other militant tactics to gain recognition and collective bargaining rights (Flint Sit-Down Strike)

Major Labor Strikes and Conflicts

• Great Railroad Strike of 1877 was the first nationwide strike, sparked by wage cuts and involved over 100,000 workers
  • Led to violent clashes with police and military, and dozens of deaths
• Homestead Strike of 1892 at Carnegie Steel in Pennsylvania, ended in a bloody battle between strikers and Pinkerton guards
• Pullman Strike of 1894 against the Pullman Palace Car Company, led by Eugene V. Debs and the American Railway Union
  • Involved 250,000 workers across 27 states, shut down much of the nation's rail traffic
• Ludlow Massacre of 1914, a confrontation between striking coal miners and the Colorado National Guard, resulted in the deaths of over 20 people, including women and children
• Steel Strike of 1919 involved 350,000 workers in the first major strike in the steel industry, but was ultimately defeated by the companies

Labor Laws and Regulations

• National Labor Relations Act (NLRA) of 1935, also known as the Wagner Act, guaranteed workers the right to organize and bargain collectively
  • Established the National Labor Relations Board (NLRB) to oversee union elections and investigate unfair labor practices
• Fair Labor Standards Act (FLSA) of 1938 established the 40-hour workweek, minimum wage, and overtime pay for certain industries
• Taft-Hartley Act of 1947 amended the NLRA, restricting union activities and allowing states to pass "right-to-work" laws
  • Prohibited jurisdictional strikes, solidarity or political strikes, secondary boycotts, and closed shops
• Landrum-Griffin Act of 1959 regulated internal union affairs and required financial disclosures to prevent corruption
• Occupational Safety and Health Act (OSHA) of 1970 established safety and health standards for the workplace

Union Strategies and Tactics

• Collective bargaining is the process of negotiating contracts between unions and employers regarding wages, hours, and working conditions
• Strikes are work stoppages used to pressure employers to meet union demands, can be economic (for better wages and benefits) or unfair labor practice strikes
  • Sit-down strikes, where workers occupy the workplace and prevent production, were a powerful tactic in the 1930s (General Motors Flint Sit-Down Strike)
• Boycotts encourage consumers to not purchase products or services from a company involved in a labor dispute
• Picketing involves union members and supporters marching and demonstrating outside a workplace to publicize a dispute and persuade others to support the union
• Solidarity and sympathy strikes are when workers from other unions or industries strike to support the primary union in a dispute

Impact on Working Conditions and Wages

• Unions successfully fought for higher wages, shorter hours, and better working conditions through collective bargaining and strikes
  • Average hourly earnings for manufacturing workers increased from $0.50 in 1914 to$1.60 in 1941
• Unions helped establish benefits like health insurance, pensions, and paid vacations as standard parts of employment contracts
• Unions advocated for workplace safety regulations and practices, reducing accidents and fatalities (Triangle Shirtwaist Factory fire led to improved building codes and fire safety)
• Collective bargaining agreements often included seniority provisions, protecting older workers from layoffs and arbitrary dismissal
• Union efforts led to the establishment of the 8-hour workday and the 40-hour workweek as standard practice (Fair Labor Standards Act)

Challenges and Criticisms of Labor Movements

• Employers often resisted unionization through legal challenges, strikebreaking, lockouts, and violence (Homestead Strike, Ludlow Massacre)
• Some unions, particularly craft unions in the AFL, excluded women, African Americans, and immigrants, reinforcing racial and gender inequalities
  • Many unions practiced segregation and maintained separate locals for white and black workers (Brotherhood of Sleeping Car Porters)
• Critics argued that unions stifled economic growth and competitiveness through restrictive work rules and high wage demands
• Corruption and racketeering scandals in some unions, such as the Teamsters under Jimmy Hoffa, damaged the reputation of the labor movement
• Globalization and deindustrialization in the late 20th century led to a decline in union membership and bargaining power

Legacy and Modern Labor Issues

• The labor movement played a significant role in shaping modern employment practices and standards, such as the 40-hour workweek, minimum wage, and workplace safety regulations
• Unions continue to advocate for workers' rights and benefits, particularly in sectors like public education, healthcare, and service industries
  • Fight for $15 movement has pushed for higher minimum wages and union rights for fast-food and retail workers
• Globalization and the rise of the gig economy have created new challenges for organizing and protecting workers' rights
  • Unions have sought to organize workers in emerging industries like technology and digital media (Kickstarter Union)
• Income inequality and the decline of the middle class have renewed debates about the role of unions in ensuring a fair distribution of economic gains
• The COVID-19 pandemic has highlighted the importance of essential workers and the need for safe working conditions and fair compensation