Chapter 9 Sections 1&2

Labor Movement in the U.S. Brief History of Labor Movement in the U.S. Jobs: Exportable and Nonexportable The Economic Power of Labor Unions The Economic Power of Large Employers Collective Bargaining

Labor Movement in the U.S. Early Industrial Labor Source of early U.S. Factory Labor – Migration from Farm to Cities  Not accustomed to working for wages  Work oriented  Fairness concerns not an issue  Received what the land would provide  Used to working long hours with little or no time off  Used to working for themselves A motivated, hard working labor pool!

Labor Movement in the U.S. Early Business Owners Businesses were family owned or independently owned Capital investment improved productivity of workforce Business owners were profit motivated, and therefore Focused on cost minimization, including cost of labor Business owners had support of government and legal system Industrial Issues not considered * work week* Wage equity * Safety* Benefits * Health Issues* Security (Job Protection)

Labor Movement in the U.S. Organization Attempts Labor unions are a traditional American institution Although trade union movement is over 200 years old Modern union era dates to the last quarter of the 19 th century Business consolidation and emergence of larger corporations reduced individual labor bargaining power Perceived abuses of business power led to attempts by labor to organize For the most part U.S. attitude was that labor unions were subversive until the 1940’s

Labor Movement in the U.S. Organization Attempts Early attempts at unionization were plagued with a lack of clear, universally accepted objectives  Some wanted broad social change elimination of wage systemuniversal 8 hour day establishment of producers cooperatives  Some focused on betterment of job conditions wagesworking conditions work hours Lack of leadership There was a public mistrust and fear of unions Political Control Racketeering Communist Ties Unionization was not well accepted by a society where the ethic was to get ahead by individual merit

Labor Movement in the U.S. Organization Attempts Corporate business fought unions tooth and nail  Had the power in terms of tradition and culture  Had a sympathetic legal system (government backing) Known union members were “blacklisted” Those suspected of union sympathy were fired Court orders were obtained to prevent strikes Businesses sometimes hired “private detectives” and utilized local police to put down strike attempts violently

Labor Movement in the U.S. Early Unions Noble Order of the Knights of Labor ( ) Organized by Philadelphia garment workers in 1869 Opened to farmers, merchants and wage earners Objectives Equal pay for equal work Abolition of child labor 8 hour work day

Labor Movement in the U.S. Early Unions American Federation of Labor (AF of L; AFL)  Organized in 1886  Focused on better working conditions Better pay Working conditions Union labels on produced items Craft oriented

Reasons to Unionize Unfair working conditions Health and Safety Child Labor Job insecurity

Unfair Working Conditions 10 – 14 hour days Industrial workers earned less than $500 per year. The poverty level was at $600 per year.

Health and Safety Hazards No universal safety regulations Dust of all types was breathed by workers. Coal Dust (Black Lung) Cotton Dust (Brown Lung) Toxic Fumes (No Lungs) Workers were easily replaced.

Child Labor Children as young as 5 or 6. Laws were easily avoided. Parents needed the income. Most did not attend school.

Job Insecurity  The Business Cycle  Prosperity – Decline – Depression  Full Employment- Layoffs – No Jobs

19 th Century businessmen believed that business followed a natural cycle like the water cycle. If times got bad then all that you need to do is wait it out – things will get better. How does this philosophy affect the workers?

Union Organization Sporadic after Civil War. American workers migrated from job to job. This made organization difficult. Large numbers of immigrants. Opposition from employers – The Blacklist. Employers used the lockout and hired scabs to keep the workers under control.

Union Organization Major Point of contention with both the workers and businessmen – Collective Bargaining. Viewed as violating a workers right to deal with the employer for wages.

Troubles with the Economy and Strikes Depression of Businesses Close Union Membership Drops to 50,000 3 million unemployed. Business cut wages lengthen work day. Unions Respond – Railroad Strike Martinsburg WV, Pittsburgh and Philadelphia, and Buffalo NY riots Federal Government sends troops.

Management’s Costly Victory 100 Killed 1000 Jailed 100,000 workers on strike. Union leadership realizes that they need better and stronger organization to wage war against the dreadful combination of the US Government and Big Business.