Big Business Horizontal integration: monopoly formed by controlling all of the same type of business Vertical integration: monopoly formed by controlling business related to the primary business How do trusts and monopolies affect industry and the economy? Fewer control more, growing gap between the rich and poor What conditions did factory workers face? Long hours, no benefits, hazardous conditions

Vertical and Horizontal Integration Resources Manufacturing Distribution Horizontal

Rise of Labor Unions Goals of Industry Effects on Workers Results/Reaction Make money Improve manufacturing Control businesses Eliminate competition Mass production Bad working conditions Long hours Low wages No benefits Mind-dulling tasks Company towns Workers try to join together Labor unions form Strikes Incidents that get public attention Gov’t regulation

Labor Unions: a group of wage earners formed for the purpose of serving the members’ interests with respect to wages and working conditions. Strike: a group’s refusal to work in protest of low pay or bad working conditions Collective bargaining: negotiation between an employer and trade union, generally labor union leaders and the employer Arbitration: the hearing and determination of a dispute by a neutral party agreed to by both parties

Employer Tactics Blacklists: a list of persons or organizations that have incurred disapproval or suspicion or are to be boycotted Lockouts: a management action resisting employee’s demands; employees are prohibited from entering the work place until they agree to terms Scabs: workers that break strike lines to work Injunction: court order command or preventing an action, agreement preventing an employee from joining a union (yellow dog contract)

American Federation of Labor Knights of Labor Terrance Powderly Any kind of labor accepted—open shop Weakness—unskilled workers lack leverage Preferred to only use strikes as last resort Equal pay for men and women American Federation of Labor Samuel Gompers Only skilled workers—craft union Used collective bargaining and negotiations Made strikes a legitimate weapon for unions BOTH Unions Want to improve conditions for workers  First labor organizations Better pay Better working conditions Shorter work week

Government Intervention Event Who What Results Government Intervention Great Strike of 1877 Railroad workers Violent protests due to cutting of wages for a second time in one month Over 50,000 miles of RR are shut down Federal troops are sent in by Pres. Hayes—he says strikers are impeding interstate commerce Haymarket Square Haymarket Square Affair in Chicago of 1886 McCormick workers (3000) Protesting the death of a striker—a bomb is thrown police then fire into crowd = several police and civilians killed. Union activity is blamed for this incident, Union leaders are convicted, and it will lead to a decline in union activity Industrial Unions Pullman Coach Strike of 1894 United Railroad Workers (all laborers in one industry) Led by: Eugene Debs Response to workers being laid off and wages being cut, but housing rent not being reduced. Pullman hired strikebreakers and violence breaks out Debs is jailed Workers blacklisted

Women Workers Public Pressure Women’s Labor Movement Mary Harris “mother” Jones Urged women to get behind leaders and striking husbands Used women and children to help strike Advocated against child labor Widespread publicity Helped get child labor laws passed Got women involved with movement Public Pressure Triangle Shirtwaist Factory Fire Workers at the factory Fire broke out in factory, workers were trapped inside because the company had locked all the doors to prevent theft and to keep out union organizers About 145 died Public is outraged Task force set up to deal with conditions Leads to government regulations on working conditions Homestead Strike Steel workers at Carnegie’s Steel Co. in Homestead, PA Company president announced wage cuts, workers strike and the president of the company hired scabs and strikebreakers, leading to violence 3 detectives and 6 workers dead Gov’t intervention Hurts union Hurts Carnegie’s reputation

Essential Questions 4. How did labor unions impact industry and the lives of workers? 5. How effective were labor unions in improving the lives of American workers? 6. What social, economic, and political factors led to the need for the formation of labor unions?

Review Questions Horizontal Integration A monopoly based on controlling all of the same type of business A monopoly based on controlling all aspects of producing a good Is a fair business practice for everyone None of the above

2. The Knights of Labor and the American Federation of Labor BOTH Preferred to use strikes only as a last resort Were only for skilled laborers Wanted equal pay for men and women Wanted to improve conditions for workers

3. A list of persons or organizations that incurred disapproval or suspicion or are to be boycotted Blacklist Scab Lockout Red list

4. How did the 1877 strike and Haymarket incident cause the public to resent the labor movement? The public began to associate labor movements with violence and anger The strikers’ new benefits weakened the nation’s economy The managers’ abuses became public knowledge The illegal business formations came under public scrutiny

5. Who was the leader of the American Federation of Labor? Eugene V. Debs William Jennings Bryan Rutherford B. Hayes Samuel Gompers

6. How did industrial working conditions contribute to the growth of the labor movement? Publication of the working conditions led to public outcry The long hours for business owners put special strain on their families The working conditions were not really that bad, the workers just overreacted Poor working condition and low wages forced workers to organize into unions

Quiz Grade Quiz Grade ACTIVITY ON STRIKES You will be creating a brochure on the major strikes and incidents in the late 1800s that were a part of the labor movement and helped improve wages and conditions that workers faced during the time period. Front: Title, Picture, Name, Date, Block Inside: (4 sections): cover who was striking, why, what happened, any key people, any other pertinent information for the following 5 events: Great Strike of 1877 Pullman Coach Strike Homestead Strike Haymarket Strike Triangle Shirtwaist Factory Fire Back: Define/Explain the tactics used by Unions AND Tactics used by Owners during the labor movement (use notes and 3rd box on p. 33 to complete) A minimum of 4 drawings (including front page) Each section must have a title Needs to be neat, colorful, and creative!! Quiz Grade Quiz Grade

Quiz Grade Quiz Grade ACTIVITY ON STRIKES You will be creating a brochure on the major strikes and incidents in the late 1800s that were a part of the labor movement and helped improve wages and conditions that workers faced during the time period. Front: Title, Picture, Name, Date, Block Inside: (4 sections): cover who was striking, why, what happened, any key people, any other pertinent information for the following 5 events: Great Strike of 1877 Pullman Coach Strike Homestead Strike Haymarket Strike Triangle Shirtwaist Factory Fire Back: Define/Explain the tactics used by Unions AND Tactics used by Owners during the labor movement (use notes and 3rd box on p. 33 to complete) A minimum of 4 drawings (including front page) Each section must have a title Needs to be neat, colorful, and creative!! Quiz Grade Quiz Grade