1. p
Big Business and Labor

2. Objectives
Identify management and business strategies that contributed to the success of business tycoons such as Andrew Carnegie
Explain Social Darwinism and its effects on society
Summarize the emergence and growth of unions
Explain the violent reactions of industry and government to union strikes

3. Carnegie’s Innovation
New Business Strategies
Always looking for ways to make better products cheaper
New machinery & technology
Accounting/shipping
Offered stock in company to employee

4. Carnegie’s Innovation
Vertical Integration
Horizontal Integration
Control as much of the industry as possible
Control as many similar producers as possible A B C A B E A C F A D G

5. Social Darwinism Social Darwinism Principles of Social Darwinism
A New Definition of Success
Social Darwinism
Uses “natural selection” of weeding out less-suited individuals unable to adapt
Success came from God’s favor
If you are poor you must be lazy OR
Inferior and deserve what you get

6. Fewer Control More Growth and Consolidation Trusts Mergers
“can’t beat them, join them”
Buy outs
Monopoly
Holding Company
Only buys stocks in companies
Does not actually make produce anything
J.P. Morgan
U.S. Steel
Trusts
Manages the stocks of many companies
John D. Rockefeller
Standard Oil

7. Fewer Control More
Rockefeller and the “Robber Barons”
In less than 10 years (1870) Standard oil went from 2-3% to 90% of the industry
Huge profits and low wages
Charged less than competitors could afford
Then, raised prices sky high

8. Fewer Control More Sherman Antitrust Act Was hard to enforce
Made illegal to form a trust that interfered with free trade between states or other countries
Was hard to enforce
What was a trust?
Companies would break up into individual companies under pressure
7 of 8 cases through out of by the Supreme Court

9. Labor Union Emerge 1882 675 worker killed a day 246,375 per year
Cooperate powers were consolidating, workers needed to keep pace to protect themselves
Longer hours and danger
Steel mills
7 hour work day
Seamstress
12 hour days, 6 days a week
Did not receive
Vacation
Sick leave
Unemployment benefits
Workers compensation
1882
675 worker killed a day
246,375 per year

10. Labor Union Emerge Labor Unions National Labor Union – 1886
Early Labor Organization
Labor Unions
Date back to 1700s
Small, local, skilled workers
National Labor Union – 1886
Lobby for and receive 8 hour work days for government workers
Knights of Labor
Open to all workers

11. Union Movements Diverge
Craft Unionism
Industrial Unionism
Skilled workers from one or more trades
American Federation of Labor
Used strikes as major tactic
Won higher wages and longer weekends
Skilled and unskilled workers
American Railway Union
Unskilled
Skilled
Firemen
engineers
$17.50/hr
54.5 /wk
1890
$24.00/hr
49/wk
1915

12. Union Movements Diverge
Socialism and the IWW
Industrial Worker of the World
AKA Wobblies
Miners
Lumberjacks
Cannery
Dock workers
Welcomed all workers

13. Baltimore and Ohio Railroad
Strikes Turn Violent
The Great Strike of 1877
Haymarket Affair
Baltimore and Ohio Railroad
Struck to protest their 2nd pay cut in 2 months
Strike spread, over 50,000 miles of track shut down for a week
Federal Troops are called in to break the strike
May, 1886
3,000 people gather to protest police brutality
Bomb thrown at police
3 speakers, 5 radicals arrested for inciting a riot
All convicted, 4 hung, 1 commits suicide in prison
Public opinion turns on labor movement

14. Strikes Turn Violent The Homestead Strike
Carnegie Steel Company – 1892
Plant hires the Pickerton Detective Agency to protect scabs
Battle ensues
3 detectives, 9 workers killed
National Guard
It would take 45 years before steel workers mobilize again

15. Strikes Turn Violent The Pullman Company Strike Panic of 1893
Pullman lays off ~2/3 of its employees
Cuts pay by 25-50%
Keeps company housing the same
Federal Troops called in
Organizer jailed
Many fired and blacklisted
The Pullman Company Strike

16. Unions begin to be feared by management
Strikes Turn Violent
Management and Government Pressure Unions
Unions begin to be feared by management
Sherman Antitrust Act
All was needed was to say a strike hurt interstate trade, and state/federal government would issue an injunction