10.4 Labor Relations and Union Growth

The Great Depression sparked widespread labor unrest as workers faced unemployment and wage cuts. Strikes and protests, like the Bonus Army March and Flint Sit-Down Strike, drew attention to workers' struggles and increased public support for labor rights.

This labor activism set the stage for major reforms. The Wagner Act of 1935 guaranteed workers' right to unionize and bargain collectively, leading to a surge in union membership and shifting the balance of power between labor and management.

Labor Unrest in the Depression

Economic Hardships and Worker Protests

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• Great Depression (1929-1939) triggered widespread unemployment, wage cuts, and deteriorating working conditions
  • Unemployment rate peaked at 25% in 1933
  • Average wages fell by 42% between 1929 and 1933
• Bonus Army March of 1932 involved World War I veterans demanding early payment of promised bonuses
  • Approximately 43,000 marchers, including veterans and their families, gathered in Washington D.C.
  • Demonstrators were violently evicted by U.S. Army troops under the command of General Douglas MacArthur

Significant Strikes and Labor Actions

• 1934 Minneapolis Teamsters Strike marked a pivotal moment in labor history
  • Involved violent confrontations between workers and police
  • Resulted in union recognition and improved working conditions for truck drivers
• 1936-1937 Flint Sit-Down Strike against General Motors utilized innovative factory occupation tactics
  • Lasted 44 days and involved over 2,000 workers
  • Led to major gains for the United Auto Workers union, including recognition as the sole bargaining agent for GM workers
• Memorial Day Massacre of 1937 occurred during the Little Steel Strike
  • Resulted in police violence against striking workers and their families
  • Ten demonstrators were killed and dozens more injured
  • Drew national attention to labor struggles and increased public sympathy for workers' rights

Impact on Public Opinion and Labor Legislation

• Strikes and labor actions contributed to increased public support for workers' rights
  • Media coverage of violent confrontations and worker hardships swayed public opinion
  • Growing awareness of income inequality and poor working conditions
• Labor unrest set the stage for significant labor legislation
  • Influenced the passage of the National Labor Relations Act (Wagner Act) in 1935
  • Led to increased government intervention in labor-management relations

The Wagner Act and Labor Rights

Key Provisions and Protections

• National Labor Relations Act (NLRA) signed into law by President Franklin D. Roosevelt on July 5, 1935
  • Part of the broader New Deal legislation aimed at economic recovery and social reform
• Guaranteed workers the right to form and join labor unions
  • Protected employees from employer interference or coercion in union activities
  • Outlawed company unions controlled by employers
• Established the right to engage in collective bargaining
  • Employers required to negotiate in good faith with union representatives
  • Covered wages, hours, and working conditions
• Protected workers' right to participate in strikes and other concerted activities
  • Prohibited employers from firing or discriminating against workers for union involvement
  • Allowed for peaceful picketing and boycotts

National Labor Relations Board (NLRB)

• NLRB created to enforce labor law related to collective bargaining and unfair labor practices
  • Five-member board appointed by the President and confirmed by the Senate
  • Regional offices established to handle local labor disputes
• NLRB responsibilities included:
  • Conducting union representation elections
  • Investigating and remedying unfair labor practices
  • Enforcing orders through the federal courts

Legal Challenges and Supreme Court Decision

• Wagner Act faced opposition from business groups and conservative politicians
  • Argued the act was unconstitutional and infringed on states' rights
• Supreme Court upheld the constitutionality of the Wagner Act in 1937
  • NLRB v. Jones & Laughlin Steel Corp. case
  • Court ruled that Congress had the power to regulate labor relations under the Commerce Clause
  • Decision marked a shift in the Court's approach to New Deal legislation

Labor Union Growth in the 1930s

Rapid Expansion of Union Membership

• Wagner Act provided legal protections for union organizing, leading to dramatic increase in membership
  • Union membership grew from approximately 3 million workers in 1933 to over 10 million by 1941
  • Percentage of workforce unionized increased from about 11% in 1933 to nearly 27% by 1941
• Congress of Industrial Organizations (CIO) formed in 1935
  • Focused on organizing unskilled and semi-skilled workers in mass production industries
  • Employed strategy of industrial unionism, organizing all workers in an industry regardless of skill level
• Major unions gained significant membership and influence
  • United Auto Workers (UAW) membership grew from 30,000 in 1936 to over 500,000 by 1941
  • United Steelworkers of America (USWA) organized over 500,000 workers by 1942

Union Strategies and Organizational Approaches

• CIO's industrial unionism contrasted with American Federation of Labor's (AFL) craft unionism approach
  • Industrial unionism organized workers by industry (auto, steel, rubber)
  • Craft unionism organized workers by specific trade or skill (carpenters, electricians, plumbers)
• Unions employed various tactics to gain recognition and negotiate contracts
  • Sit-down strikes (Flint, Michigan auto plants)
  • Mass picketing and demonstrations
  • Political lobbying and public relations campaigns

Impact on Workers and Society

• Labor unions played crucial role in advocating for improved working conditions and higher wages
  • Negotiated contracts establishing minimum wage rates, overtime pay, and workplace safety standards
  • Pushed for social welfare policies (Social Security, unemployment insurance)
• Union growth led to increased worker participation in decision-making processes
  • Shop steward systems and grievance procedures implemented in many workplaces
  • Workers gained greater voice in determining workplace policies and practices
• Unions contributed to the expansion of the middle class
  • Higher wages and benefits allowed more workers to achieve economic stability
  • Union-negotiated health insurance and pension plans provided greater financial security

Labor vs Management in the New Deal

Shifting Balance of Power

• New Deal era saw shift in power dynamics between labor and management
  • Workers gained more rights and protections through legislation and increased union representation
  • Management faced new constraints on their authority and decision-making power
• Collective bargaining became more prevalent
  • Unions negotiated contracts on behalf of workers for wages, benefits, and working conditions
  • Formalized process for resolving disputes and addressing worker grievances

Evolution of Management Practices

• Companies adopted varied approaches in response to increased union power
  • Some embraced more cooperative labor-management relations (General Motors after the Flint sit-down strike)
  • Others resisted unionization efforts (Ford Motor Company remained non-union until 1941)
• Development of new management strategies
  • Human resource management emerged as a distinct field
  • Employee relations programs implemented to improve communication and address worker concerns
• Dispute resolution mechanisms and grievance procedures established
  • Formal processes for addressing workplace conflicts and contract violations
  • Arbitration became a common method for resolving labor-management disputes

Political and Social Implications

• Labor unions gained increased influence in politics
  • Unions became important allies of the Democratic Party
  • Labor leaders advised on policy-making (John L. Lewis of the CIO served on the National Labor Board)
• Expansion of social welfare programs
  • Union advocacy contributed to the passage of Social Security Act in 1935
  • Pressure for government intervention in areas such as housing, healthcare, and education
• Changing dynamics laid foundation for modern labor relations
  • Established framework for collective bargaining and worker representation
  • Influenced development of labor law and workplace regulations in subsequent decades