1. 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

2. Vertical and Horizontal Integration
Resources
Manufacturing
Distribution
Horizontal

3. 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

4. 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

5. 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)

6. 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

7. 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

8. 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

9. 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?

10. 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

11. 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

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

13. 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

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

15. 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

16. 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

17. 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