LABOR HISTORY--The Founding of General Motors1892--Henry Ford test drove the first carGM was founded on September 16, 1908, two weeks before Henry Ford put the

Model T on the market, a year when 65,000 cars were sold, by William Crapo (Billy) Durant, of whom Alfred P. Sloan said “He could create but not administer.”

Durant was the grandson of a MI Civil War governor, who had invested part of a family fortune derived from whaling in the lumber industry and became very wealthy--Durant was a high school dropout--started his own insurance agency and in 1880, on a sales trip through Coldwater, in southern MI, met a man who held a patent on a light, two-wheeled cart called a “road cart.”---made of wood, with a few parts, impossible to overturn, but did not sell--had been individually produced but Durant was convinced that with proper sales, financing and mass production, the road cart would be successful--bought the patent for $50 and convinced a Flint carriage maker to build the carts for $8 each, then sold them for $12.50 each, and within a few years, Durant and his partner, a hardware dealer named J. Dallas Dort, sold 100,000 carts

By 1895, they formed the Durant-Dort Carriage Co., sold 50,000 carriages a year, the leading manufacturer in the country and Durant, at age 40, was a millionaire!

By now autos were becoming better-known, and Durant heard that a small Detroit motorcar co. was for sale. Founded by a Detroit plumbing merchant who invented a process to bond porcelain to iron. That man was. . . David Buick.

Buick had been through a couple of companies and started building marine engines before starting in autos--produced a single-cylinder engine in

Durant bought the co., started production in 1904--sold $00,000 worth of stock to friends in Flint in one day. Opened plants in Flint and Jackson, producing 5-8 vehicles per week. Sold for $1,250., with an extra $125 for canvas top and lights. Set up national distribution/service network.

Also persuaded two other manufacturers to locate in Flint: Alfred Champion, a French racing car driver, made spark plugs and Charles S. Mott made axles, moving from Utica, NY

By 1908, Durant was selling 8,487 Buicks, more than Cadillac or Ford combined--the new Buick plant in Flint was the largest auto plant in the world

Durant tried to piece together a consortium, so that diversity could weather erratic markets--if one model failed, another one would succeed, and tried to pull together Reo, Buick, Ford and Maxwell-Briscoe--Ford wanted $3 million in cash, as did Ransom Olds, who owned Reo--Durant wanted to only deal in stock and the deal collapsed--Durant controlled 20 auto, parts, and accessory firms and almost took control of Ford

In 1909, Durant tried JP Morgan and was turned down for financial backing for a new company called International Motors--finally raised enough money on his own, but lawyers objected to name and Durant carelessly drew a line through International Motors and handwrote General Motors--incorporated with stocks and bonds of other companies, Durant incorporated GM in NJ, brought in Buick (1908), then Olds and Oakland and finally, in 1909, Cadillac, for $4.5 million in cash

Next few years were very rough--Durant had bought some plants that were worthless--the Heany Lamp Plant made tungsten lamps but the patent was thrown out and the company closed--Buick was best seller but ran short of cash as other divisions drained money--when Durant finally got financing, some came in suitcases of cash to make

payroll, rather than being seized to apply to debts--by fall, 1910, bankruptcy seemed inevitable, but Durant cut a expensive deal with an eastern syndicate: borrowed $15 million for five years, but lenders took $2.5 million off the top, got 6 million in stock as commission and Durant had to resign as president, although he stayed as a member of the Board of Dir--”period of banker control”

Still looked like the co. Might fold but Henry Leland, head of Cadillac pledged his own and Cadillac’s resources to the corporation--the bankers created more efficient organizations: cash reporting and standardized accounting, started GM of Canada, GM Truck Co. And GM Export Co.--the myths: in 1910, Durant was asked to recommend a new head for Buick, and suggested Charles W. Nash, who used to cut Durant’s lawn. Nash was an orphan who was bound to an Illinois farmer, ran away at age 12, and did such a good job mowing the lawn that Durant gave him a job polishing headlamps in the carriage company for 75 cents/day. Moved up and was made president of Buick, then president of GM in 1912. Replaced as president of Buick by Walter P Chrysler, who had moved from the railroad industry at a 50% cut in pay because he was excited by the auto industry

Buick (under Chrysler) and Cadillac (under Leland) led the way in innovation: Caddy introduced the closed car(1910), and Buick brought the electric horn--Cadillac the self-starter(1911) which made it convenient for women to operate; invented by Charles Kettering--the story was that George Carter was killed by a motor crank after helping a woman whose car had broken down in Belle Isle, so Kettering combined an old storage battery for a self-starter--Kettering had invented the electric cash register for NCR

at the Sept., 1915, Bd of Dir meeting, GM declared a stupendous dividend of $50 cash, the highest in the history of the NY Stock Exchange

Durant was busy trying to reacquire control-joined Louis Chevrolet to create Chevy, started with a powerful, high-speed car and sold 3,000 cars in 1912, but Durant believed that the future of the industry lay in cheap, low-price cars, so he created a cheap car, which so maddened Louis Chevrolet that he sold out to Durant for cents on the dollar--then Durant began to exchange Chevy stock for GM stock, kept in bushel baskets in his office and by Sept., 1915, at the Bd of Dir meeting, Durant had enough stock power to become president once again

Durant brought in Dupont family, which not only saw a great investment but a major customer for chemical products like Fabrikoid, paint and varnish--Dupont had founded a powder plant on the Brandywine Creek in PA in 1807 and demanded 20% return on investment, an attitude carried over to GM 110 years later--by December, 1918, Dupont purchased $25 million of GM stock, increased to $49 million (12/1919), or 28.7%

October 31, 1916, GM was incorporated as a corporation in DE and the separate companies became divisions--capitalized at $100 million--Durant brought in more companies, like Dayton Engineering Laboratories (DELCO), Remy Electric Co., Hyatt Roller Bearing Co.--and finally, took over United Motors, whose president was Alfred P. Sloan in 1918, giving GM its own parts and accessory division--Sloan was an MIT graduate, fascinated by machines, who worked for John Wesley Hyatt, who invented celluloid, to be used as a substitute for ivory in pool balls--later used to make flexible ball bearings, where steel wore easily and wore out--Sloan had become wealthy convincing wagon manufacturers to use Hyatt Roller Bearings on axles rather than grease--later got a

contract with Mott Axle Co. And with Ford--in 1916, Durant came to Sloan to buy up Hyatt--Sloan became a VP at purchase, member of the BdDir and became president in 1923--at the time of the sit-down strike, he was the highest paid executive in the US-

1918-20--Durant visited a dirty Detroit attic (1918) where a man named Alfred Mellowes had a few pieces of mechanical equipment-- and wrote a personal check for $56,366.50 for the Guardian Frigerator Co.--”like a car: a box with a machine”-- next year, sold the co. To G.M. for what he had paid and, 5 years later Frigidaire was selling 20,000 reefers/year--, created GMAC, and bough 3/5 of the Fisher Body Co. In 1919--run by the six Fisher Bros., old-time wagon makers--in 1910, had received an order from Cadillac for 150 closed bodies, the largest order--Fisher moved from Detroit to Flint and built a plant on Chevrolet Ave. That was Fisher Body No. 2--three years later, built Fisher Body No. 1, where Buick bodies were built, and No. 2 continued to make Chevy bodies--

INTRODUCE MICHIGAN MAPDurant’s style antagonized some of the executives--Henry Leland left Cadillac in

1917 to start his own company, named after the first American president for whom he had voted in 1864--absorbed by Ford in 1922 and Walter Chrysler had retained the AO Smith in WI to build auto frames but Durant announced that GM would build an expensive new plant in Flint, so Chrysler quit and also started his own co

Recession of 1920 caught Durant trying to manipulate stocks and cash--saved by the Dupont Co., which joined with Morgan syndicate to buy his 2.5 million shares of GM stock for $23 million--as part of the deal, Dupont resigned and was replaced as president of GM by Pierre Dupont--as Exec. VP, Sloan began to reorganize the corporation,”decentralized divisions with centralized control”--some disputes over power but the organization of GM became an issue when the UAW demanded a national agreement starting in 1933

Sloan became the real power for more than 30 years--owned a 236-foot yacht with a crew of 43 after associates urged him to “find a hobby”--created cost center, each responsible for creating a profit--grouped in divisions, each with a manager--centralized cost-accounting--created a corporate model followed today

Co expanded until 1924 when the industry hit a plateau of sales that did not expand until 1947--except for 1929, when the Model A came out, sales not over 4 million/year until ‘47--Sloan made Pontiac from the Oakland Co., and decided to capture all ranges of cars, expensive to cheap--created the annual model change--Harley Earl, who had been building custom cars for Hollywood stars ($25,000 Pierce-Arrow for Fatty Arbuckle) became design director--eliminated running board, wraparound window, no spare tire truck, two-tone paint job, hardtop, tail fin (after looking at P-38 fighter plane)--dealer system nationwide--massive advertising--Sloan also hired Wm S Knudsen, who made Chevy the best-selling car in the world--started working for Ford and was fired and came to GM in 1921--by 1927, Chevy had 42.5% of all new car registrations--was Ex VP during sit-down--a real mechanic who worked with his hat on because it made him think better and who refused to hire female secretaries--

Sloan also began to centralize labor relations in the 1920's--in 1919, John Raskob (former financial adviser to Pierre Dupont) started savings and investment plan for workers, which provided huge cushion when Depression started--had cafeterias, parking

lots, locker rooms--in early 1930's, GM guaranteed workers with more than 5 years seniority 60% for regular 40-hour pay --when worker did not make 40 hours, co advanced him the difference-- when they worked more than 40 hours, workers repaid the advance--co built homes for workers and paid Xmas bonuses

12/1/26--offered $1,000. Of life/AD&D insurance---expanded in 1928, plan was expanded to include health benefits--by 1936, 98% of all GM workers participated in plan

Industrial Mutual Association (IMA) of Flint--whose slogan was “Somewhere to go in Flint”--for dues of .10/week, workers got bowling alleys, gyms, facilities for dancing, a summer resort--sports programs, and GM also sponsored dozens of other cultural(glee clubs) and social clubs--

Surprised by the strength of the union movement--blind paternalism--at time of strike GM was not big, but COLOSSAL: 69 plants in 35 cities and 14 states, with assets of $1.5 billion--rate of return was measure introduced by Donaldson Brown, who came to GM from Dupont in 1920, at 20%

WORKERS:Auto plants were huge employment magnets; brought workers from lumber mills

of MI, coal fields of PA and WVA, foreigners, especially Poles and Italians, and many blacks drifting up from the south--especially recruited by Ford to divide workers--with the exception of some miners, no union experience--

Continual deskilling so that, by 1935, 26.9% of all workers required no training at all, and only 9.8 required more than 1 year training--55% of GM’s 28,455 workers in Flint(1935) were semiskilled, 24% skilled, 8.9% unskilled--only 20% actually worked on assembly line jobs--

Major issues were the speed of the assembly line and the unreasonable production standards for individual machines--constantly timed, “straw men” were urged by company to work faster “The essence of Flint was speed,” said the NY Times--great deal of evidence gathered by NRA on standards--enormous toll of fatigue and accidents--”I ain’t got no kick on wages, but I don’t like to be drove” said “Red” Mundale, head of sit-down strikers of Fisher No.2--family tensions and general resentment--also though that GM got rid of older workers--Genora Johnson describes her husband, coming home and collapsing on the living room floor, where she fed him

Irregular employment was also a grievance--especially after 1929, when displaced auto workers couldn’t find other jobs--in 1933-34 period, 40% of GM’s 132, 169 hourly workers worked less than 29 weeks and more than 56% worked less than 40 weeks--in 1935, co switched to fall model change to even out employment

Layoffs were big issue--there was an Automobile Labor Board (ALB) under the NIRA(1932) which counted seniority only with skill/ability/marital status/number of dependents--the first hint of taking power away from the auto companies, but enforcement was a real problem--foremen really controlled recalls/layoffs, leading to enormous sucking/payoffs--the layoffs really skewed the apparent high wages--surveys showed low standard of living, with shacks and outdoor plumbing in Flint--

Complicated pay systems--some incentives so confused that workers never knew their correct rate--in Fisher Body No 1 and 2, there were group rates, rates set in fractions of cents, and group piece works which forced workers to drive “lazier” workers--also big problems of rates during “grooving in period” of new models, when work was done more

slowly--also the 9-hour day was too long in the assembly plants like Fisher because workers were exhausted--

WORKERS ORGANIZATIONSThere had been a Carriage Workers Assembly under the Knights, and then small

craft unions by the Carriage and Wagon Workers International Union(CWW)but it was already a fact that AFL unions which had no interest in organizing production workers also would not allow other unions to enter their jurisdiction--in 1910, CWW petitioned the AFL for a charter over all workers and was rechartered in 1911 as the Carriage, Wagon and Automobile Workers International Union (CWAW)--in 1914, however, the AFL ordered the CWAW to cease organizing efforts falling within the jurisdiction other unions and to drop the word ”auto” from title--since most of the members were auto workers, the demand was ignored--was suspended by the AFL on 4/1/1918--reorganized as the United Automobile, Aircraft and Vehicle Workers of America, proclaimed principle of industrial unionism and, by 1920, claimed a membership of 45,000--had some members in GM and in Flint but mostly in the small custom shops in the East--almost wiped out by the recession of 1920-21, a disastrous strike against Fisher Body, and the union was moribund until revived by the CP, which created the Auto Workers Union (AWU) affiliated with the TUUL--provided one of the most famous figures in UAW history, Wyndham Mortimer, son of a miner (and understood industrial unionism) who worked at White Motor in Cleveland--not only was politically dedicated and very smart, but had a real local, with a real contract and bargaining strength, providing a model for other UAW locals that were created--also gave Mortimer credibility over other political figures who attached themselves to the auto worker organizing effort--also Mort had “National Vision” which helped him work with John L Lewis for a National Agreement when others would have settled for less

The AFL passed a resolution in 1926 to organize auto “the question of jurisdiction {being} suspended for the time being”--Green wanted an industrial organization but other officers of the AFL ExCouncil, especially Arthur O. Wharton of the IAM, were completely opposed, out of principle and out of fear of losing members----in June, 1933, Green sent William Collins to Detroit to organize workers into Federal Labor Unions (FLU’s), with low dues (35 cents/month) and initiation fees--while Collins claimed to have enrolled 100,000 workers in the summer of 1933, he was not even present when the NRA Auto Code was negotiated--the code had an amendment to section 7(a) which allowed manufacturers “to select, retain, and promote employees on the basis of individual merit, without regard to their membership or non membership in any organization”--also Wharton attacked the campaign at the ExBd meeting on September 7, 1933, as a subterfuge for industrial organizing, demanding that the organizers not put toolmakers, die-sinkers, maintenance men and machinists into the federal locals--by January, 1934, Collins reported that the drive was dead: companies fired supporters and kept AFL out of plant, then denounced them as “otusiders”

The skilled trades tried to secretly establish the Mechanics Educational society of America at meeting in February, 1933--Mathew Smith was a leader who circulated among various plants, enrolling 90% of GM tool and die men at Chevrolet/flint--made a demand for a wgae increase from $ .80 to $1.50/37 ½ hour week, no weekend work-- on September 21, 1933, William Knudsen was prepared to offer $1.00 but pressure from

other companies backed him off-- and the next night, the skilled trades struck GM plants in Flint--five days later, hundreds of shops were shut downby 1934, the CP officially dissolved the AWU and worked from within the UAW and Mechanics Educational Society of America (MESA)--brought in unionists of considerable skill, who brought leadership to short strikes, mainly in Fisher Body, against changes in piece rates–

Let’s digress for a moment and look at one of the major figures in the sit-down

strike, newly-elected (by a day) Governor Frank Murphy go to Fine, p. 152)

July, 1930--first successful strike against Fisher Body No. 1--200 metal finishers spontaneously stopped work over cut in piece rates--marched through the shop the next morning and got the other 7,600 workers to join the stoppage--red baited by co. and cops, so MI State Police came on third day of strike and broke up lined, arrested strike leaders, seized AWU membership lists and forced strikers to meet outside county line--on July 9, strikers returned -- co. discharged the leaders, despite a no discrimination promise--gave good sense of what happens in a strike in a hostile municipal area--”run down like rabbits by police on horses”--

We also have the good fortune to meet Henry and Dorothy Kraus, who returned to Cleveland in 1930, where Henry wanted to write his proletarian novel, and spent some time poking around the Hooverville--his two books give an extraordinary view inside the movement, yet aloof--enormously literate and partisan--not only kept a diary, saved copies of the Cleveland United Auto Worker, The United Automobile Worker and the Flint Auto Worker, all of which he edited, but did interviews in the years 1934-1938, and then spent summers reviewing oral histories and doing a new interview, 1986-89 after winning a McArthur in 1984 at age 79--threw nothing away and shapes a lot of what he think and know about the earliest days of the UAW

In Heroes of Untold Story, The UAW, 1934-39, Henry Krause relates more details than he provided in The Many and the Few. Kraus showed up at a negotiations of White Motor at St. Clair and 79th Street in March, 1934, offering to help put out leaflets in event of a probable strike--he walks in an open door of the huge shop, wanders around and meets a guard who gives him the key to negotiations: the Co. Has been claiming it is broke, and then the local newspapers reported that all of the bosses got huge bonuses-- and immediately meets three key figures: Mortimer (chair of griev. committee), Dick Riesinger (local VP) and George Lehman (local Pres) right after Lehman has agreed to a settlement without checking with anyone else, causing Riesinger to threaten to punch him out--with a sense of history (explain--relate to personal labor histories the students did in first semester)--Kraus says “I have a strong feeling that these big factory unions are going to become important in this country.”

The local had a contract for years at White Motor, which had cut wages in 1929, but in Nov., 1933, the new union felt strong enough to demand a restoration of the 1929 wage scale, plus wage adjustments for any piece worker making more than 50 cents/hour--asked for a minimum wage of 56 cents/hour, which was well above the 43 cents/hour set in the Auto Code of the NRA

EXPLAIN NRA--split the ruling class-way to rationalize industry, create corporate state--was opposed by some unions which feared govt. Interference in collbarg--did it really give workers something they didn’t have before, or was Mort correct that it simply codified rights that had been won through struggle?

Actually, Riesinger was agreeable to the settlement, but resented the way in which Lehman snuck it in--called him a “GD AFL stooge” --so we see in this episode, the microcosm of the problem for auto workers--needed to have any agreement approved in advance by stewards--the structure placed the local in the Metal Trades Council, run by Bill Green through his reps, like George McKinnon in Cleveland--on July 14, 1933, the MTC held an open meeting in Cleveland, where the speaker called on workers to “Join the union of your craft” but the TUUL, which was Mort’s group, had a large group in the shop which wanted industrial unionism--Lehman was a former supervisor who had been busted back, and really believed in craft/class distinctions, as well as personal loyalties and ambitions which tied him to AFL--on July 28, the White Motor workers held an open meeting attended by 400 men, half of whom had signed cards (note meeting frequency as sing of militancy)--established a local, and elected officers on August 11--Ed Stubbe was another officer who did not speak English until he started school--both he and Lehman were from families who voted for Debs,

In 1932, when White Motor was taken over by the Morgan interests and piecework was cut, Mort had led a large group down to the AFL office in Cleveland to ask for a charter and were denounced by secretary of Council Harry McLaughlin as “a bunch of ignorant hunkies” who could not appreciate the blessings of American unionism--earlier in 1933, they had read about a workers organization, an alternative to the AFL, which had conducted big strikes at Briggs Body and Hayes Body in Detroit--went to TUUL, which proclaimed “Joint Council of Industrial Relations”--Mort’s daughter mimeo slips about a meeting on Friday night at the TUUL hall, which was occupied by an Unemployed Workers meeting, so found a Painters hall several blocks away, sweet-talked the janitor into opening up by promising to collect the $6 from the meeting, and raced back to find crowds of White Motor workers stomping around on the sidewalk--ended up with 200 workers at the hall, Mort took the chair because no one else wanted to--two points of discussion:

1. Do we want a union?2. Do we want to affiliate with the AFL?

“I don’t give a damn vot kind of union so long as it isn’t dot god-damned AFL”--so Mort gave a pep talk about the Auto Workers Union(TUUL), collected $6.20, passed out cards and set up a meeting for the next week--within two weeks, 500 workers signed cards, some even paid dues/initiation but TUUL was not prepared to deal with the structure of a union--thought like the old IWW--charter,schmarter

Also the red issue: Ed Stubbe came to the second meeting after getting two notices on the assembly line, refused to sign a card and rushed out and found a man downstairs named Frank Walsh--told Riesinger that the AFL meeting for auto workers was at another building and that this was a commie outfit, which Walsh was keeping tabs onspy racket. Red-baiting

In this case, the AFL started leafleting the shop, led by the IAM with a leaflet proclaiming that workers could “Choose between FDR and Joe Stalin”--Lehman set up a

meeting with Mort and Harvey Brown, of the IAM, the godfather of the AFL effort at White Motor--all of the shop guys wanted a guarantee that the workers would not be parceled out by the crafts--a Federal Charter was the compromise, issued by the AFL but on a industrial basis--promised but at a meeting at the metal Trades Council, organizer Jim McWeeney(!!) Announced that all “nonproductive workers” such as sweepers, truckers and maintenance men would be pout into their own local but all machine hands would be given to the IAM and so on--all workers, Mort, Stubbe, Riesinger and Lehman bolted for the door--so McWeeney promised a federal charter, which finally arrived and Mort’s and Riesinger’s groups planned to join on October 6 but on October 2, 1933, workers got a letter from Frank Morrison, AFL Secretary, who ordered Local 18463 to transfer all its tool and die workers to the IAM--a number of craft workers got letters from other AFL unions, so the whole shop effort was in turmoil

The leader of the TUUL, Joe Zack, was difficult to deal with and opposed the merger--then agreed that Mort and his group should join the AFL “to smash it” but Mort refused either way--dropped contact with Zack--so all joined in the Federal Union 18643, and Mort was elected to head a negotiating committee--treasury went from $540 to more than $3,000 in 3 months

White Motor actually agreed to negotiate, claiming near-bankruptcy made a raise impossible--agreed to regular weekly meetings and actually settled some non-monetary issues, like starting time, and posting daily piecework averages to keep company from fooling around with the figures-- the grievance minutes also reflect a small dispute which grew enormously: two older men, in their 50s, were replaced by younger men in Dept. 1A2K and “was not justified.”--the NIRA Auto Code, written by the manufacturers and signed by William Green, had no real protection for “senority” as we know it--

By November , the federated local made its wage demand, and on Nov. 26, took a 1,870-78 strike vote to support return of 1929 wage scale--various letters back and forth from the co to the local really granted implied recognition, which was to also become a key issue in the few years to come--though the co. made it clear that it recognized the union only for its members, and not as an exclusive representation--following the strike vote, Wm Green sent telegraph to George McKinnon(AFL rep) instructing him to forbid a strike, which increased the leadership dislike of the AFL for interence in local affiars, another theme

By March, 1934, the local got half its raise in the episode when Kraus arrived--a few days later, Wm Green totally collapsed a strike in the “March events of 1934,” which engaged FDR, auto bosses, national AFL leaders, NRA bosses and company union spokesmen, who were transported to DC on company-owned Pullmans--in the end, Green and his reps in Flint, Lansing, Detroit and Pontiac (the heart of the industry) surrendered--made the outlying locals, like Toledo, Cleveland Milwaukee, South Bend important, because their disobedience to AFL and agressive tactics against employers were able to survive

{Note other events which were also taking place in 1934--whole country appeared to be in revolution}

Over next four months, the White motor local bargained back and forth, trying to escape the March, 1934, sellout--demands were six:

1. Hourly wages were to be calculated daily not monthly2. Pieceworkers earn at least 20% above the rate

3. Overtime at time and ½4. Seniority from date of original hire--all layoffs, promotions recalls, made on

this basis--the Auto Code involved merit, dependents,5. Salaried foremen should not do hourly work6. Members of the union would refuse to work with any worked who did not join

the union within 30 days (closed shop)Some workers even wanted the elimination of piecework--Lehman argued that it

would be toughfor White to compete if used daywork--also opposed the closed shop, warning of “flash strikes” “Why should 2,000 men suffer because one is stubbborn?” --also claimed that closed shop violated the Auto Code--when negotiations finally started on April 27, 1934, the boss used the same argument--presented demands to company and on May 12, co. refused closed shop, moved on other points and “voluntarily” gave 5% raise, ratified on May 18 by members--

Local was now split into factions: Lehman’s group and the Mort-Riesinger-Stubbe group--became a issue when delegates were elected for a National Council of all federal charter auto locals, in Detroit on June 23--although the council had an “advisiory” role to a national director whom William Green would appoint, the locals were clamoring for their own interanitonal union--some strikes (Fisher Body plants in April) had been lost due to AFL “leadership”

Secessionist movement: a third force, led by Arthur Greer, president of the Hudson local in Detroit--associated with Richard Byrd, a rep on the Auto labor Board, who hoped him recruit members--

AFL reps like McWeeney/McKinon tried to politic in local to keep Mort from being elected, to assume that Lehman’s slate went out of loyalty to craft unionism and against Greer--at local meeting on June 15, a motion to allow Lehman to appoint 3 delegates was voted down in favor of local elections so Lehman quit, walked out resigned and then came back, appointed a slate with Mort as an alternate, and in the face of an uproar, announced that one of the stooges wouldn’t be able to go so Mort was named as a delegate with Riesinger and Stubbe and Lehman

June 23, 1934--156 delegates came to Fort Wayne Hotel--1/3 of the resolutions submitted were for an international union, but were discarded in favor of AFL Plan for a National Council, which was without power of any kind--the motion for this Council was submitted by delegate Clyde Cooke of Lansing, later identified as a Pinkerton spy--Green tried to sway the delegates against an Intl, claiming that they lacked experience and that it would come in good time--no motions from the floor allowed, though Russell Merrill of the Studebaker local in south Bend was screaming about Robert’s Rules--Mort called the council “a form without a substance, a rubber stamp”--then moved that the national Council set another convention for November, 1934, to establish an Intl Union--was red-baited by Chairman Bill Collins--at this point, anyone who endorsed industrial unionism was called an agent from Msocow--the Hudson local also moved for an International Union, and when it was ruled out of order, Arthur Greer left the convention and took 50 delegates with him--was denounced by Collins:”No secession or radical movement is going to change the principles and policies of the AFL.”--Greer set up rival meeting at nmearby hotel, supported by 3 members of the ALB, including Leo Wolman, the alleged “impartial” chairman

Another speaker who denounced Greer was an unknown itinerant preacher from KC, Homer Martin--

Meanwhile at white Motor, there was a serious situation over seniority--on July 6, Mort reported the discharge/layoff of about 30 older workers (“grown up at White’s”) who had been placed in the “parts department,” a kind of supply store that furnished replacement parts for older White trucks--since there were a number of men in their 40s and 50s, a wave of fear went through the shop--company refused to back down and turned negotiations over to a sarcastcic guy named Dahl, who was quoted in union steno notes as saying “I couldn’t play football with you guys. You’d kick me in the balls every time.”

Quote Kraus, pp. 33-34 on meeting ove strike vote, SLU Local 18463On August 20, strike vote approved 1,879-139--co. backed off and allowed

individual griewvance hearings beforee the union grievance committee and foremen--several cases turned over to ALB for arbitration--when strong case was lost, Riesinger wrote to Leo Wollman:” In a moment of weakness, we were prevailed upon to submit these cases to you and may God forbid that this union ever have any more such moments of weakness.”

Finally George Lehman resigned as president, and tried to maueuver Frank Klavon, a mason, blessed by AFL and solid anti-communist, as his succesor--Mort was elected by a 2-1 margain, much to disgust of AFL, with other good men on slate

Pickup of grievance activity and on October 9, 1934, section 411 P started a sitdown strike at 8:10 a.m. before starting work on erection floor grievance over pay rates--wanted base of 70 cents/hour--asked to go back to work until Oct. 15 so company could respond, but local took strike vote--another departnemtn joined the sitdown and McKinnon and Thomas N. Taylor (TNT), a rep from William Green’s office, joined the Grievance committee--got a partial settlementLocal continued to split-- George Furman discharge--also whether to support Unemployed Council, which AFL call a communist plot--local has major issue on whether to send $50. to Father Charles E. Coughlin, described by one member as “I listen to Father Coughlin every Sunday and I want to say he carries me close to tears when I realize how he exhausts himself in the cause of labor. He is the greatest man since Jesus Christ.”

INSERT INFOR ON FATHER COUGHLIN{Krause observes how smart guys were about shop issues and how far they

wandered over political stuff-cf 1998)Mort gave long speech against Coughlin, motion was passed to send money, but

Lehman group(all Masons) voted with Mort!Issue of industrial unionism was still a major part of the local--at AFL convention

in SanFran in October, 1934, JohnL proposed expanded the ExCouncil from 8 to 28 members, allowing a new group to brak the craft union power--White Motor sent Ed Stubbe with instructions to propose “full industrial jurisdiction of the International in manufacturing and parts plants as well as democratic control”-Stubbe actually siezes the stage from Matt Woll, makes his motion and then proposed that, no later than December 1, to estbalish an International union--”Back in Cleveland we auto workers want some real democracy. We want the craft unions to leave us alone so we can run our own business.”

At the same time, a man named Peter Specht, of Fisher Body, who had been a delegate to the UAW conference on June 23 in Detroit, got his local to call a convention in Cleveland to set up an industrial union--had a meeting on September 16, 1934 with a large number of men who drove overnight to attend--five from the Flint-Buick local and Bud Simons, from Fisher Body One--as the meeting started, a huge bus drove up and it was Arthur Greer, who had established the Associated Automobile Workers of America(AAWA) on August 15, after leaving the Detroit convention--in a month, Greer gathered 12 locals, and set their convention of September 22, to start an international--the meeting tried to evaluate Greer: had been a forman at Hudson, the president of company union, then president of AFL union with “good relations” with management, which many delegates considered a good thing--also had extensive discussions on economc program: integration, unemployment comp. 30-hour week, which was eventually passsed

November 10, 1934-- next conference in Flint, with 43 delegates, but no one from Flint--opposed bythe AFL, which may have tried to conspire with white bosses to fire Mort

January 26, 1935 in Detroit--the call was for the formation of an indsutrial union in the auto and parts in the AFL industry --signed by 18 officers from 6 Cleveland locals--in December, Whiote allowed President Mort to appoint five delegates--George Lehman sent out special postcards to every member calling for another meeting, denouncing “dual unionism”--TNT Talor also gets up and calls the members outlaws led “by upstarts and know-nothings”--Mort denies dual unionism and accuses the AFL leadership of disunity in promoting craft unionism--eventually threatened to take away the charter of the local

Delegates went anyhow, and “the Cleveland group” was established as national leadership--modest attendance, and Detroit area locals were poor showing--Greer secession took some numbers, MESA (Mechanics Educational Society of America) had absorbed many tool-and-die workers, the Ford workers were scared, and Chrysler had well-organized company unions--[sets GM as a target, even now]--finally, Lehman,TNT and other AFL gave grudging support to meetings, in anticipation of a tour by Willliam Green and UAW appointed Director, Francis Dillon, in late February, 1935--also voted to establish a Cleveland Auto Council

2/15/35--White Motor voted resolution and headed this Council, which was in addition to the proposed International union--a loose confederation, which assumed several key functions--one was the establishment of a newspaper, with Krause as Editor, a committee of three from each local to work for the paper(articles, distribution, etc.)--locals had been distributing sheets, Francis Dillon talked about a newspaper, and all factions had them--at the Fisher Body plant, the union members put out Labor Digest, the company distributed Searchlight, the communists had Spark Plug, and Father Coughlin’s Union For Social Justice had its paper--Kraus started helping timid Presaident Louis Spisak in anticipation of ALB election in February, 1935--

Outside MI, there was considerable organizing activity after FDR inaugural in 1/33-Sloan claimed GM “unprepared for change in political climate and growth of unionism”--in 1934, Merle Hale became first GM Dir. of Dept. of Ind. Relations, followed by Harry Anderson, but personnel depts. at GM were not centralized until

1937--partly by design and partly because the company grew so fast and had no model to emulate--decentralization was used as argument by GM against National Agreement

June 16, 1933--NIRA passed, including Section 7(a)--stipulated “right to organize and bargain collectively though reps. of their own choosing”--Sloan said GM would not subscribe to the NIRA so long as AFL threatened to organize its plants--even though both GM and Ford later joined the NIRA, GM was convinced that it could not have CollBarg without surrendering its basic management prerogatives, especially opposed to the closed shop--{like the unions politically trying to win issues that they could not win by economic force, so the bosses used Taft-Hartley to win politically what they could not win by economic force}--another executive claimed that unions would affect “cost in status, in conceptions of the self, in freedom to make certain traditional decisions”--

In June, 1933, William Green was convinced that Section 7(a) of the NIRA might make it possible to organize in auto so AFL set up campaign, centered in Detroit, first headed by William Collins and then by Francis Dillon (10/34)---the auto industry became the cutting edge although not much success since workers did not understand federal chartered unions, and craft unions kept insisting on jurisdictions--federal union was a recruiting ground for workers who would later be parceled out to crafts--no strike befits, weird dues structure--district councils were established in Detroit, ragged local charters were issued so workers concentrated on local disputes, and did not co-ordinate with other locals, except through CP network--

There was enough of a history of industrial organizing/rand & file activity in the major auto plants--and remember, it was an enormous and diverse industry which went far beyond GM, and which was just beginning to spread nationwide, so that the workers and their leaders had very definite ideas about how they should be organized and resisted, almost in principle, the top-down approach of Frank Dillon--the extreme democracy created factionalism, chaos, stoppages, intrigues but basically this was a working-out, or growing-up, of a mighty force in unionism

Green alone tried to deal with reality of new industrial organization--thought new work had wiped out craft distinctions but other AFL leaders did not agree---Green, who came out of the UMW and was basically put in office by JohnL, continued to advocate industrial unionism even as it split apart the AFL, and reluctantly told organizers to try to respect old craft lines

By 1935, much unrest in auto industry, but AFL Pres. Green refused to consider organizing--authorized an AFL-sponsored union in 1935, headed by Francis Dillon, old-time organizer--unable to negotiate contract during walkouts in Toledo, Cleveland and Norwood--the organizers sent to Detroit did not understand the industry and were also controlled by the 1920's attitude of “respectability not militancy,” and were accused by local federation unions of being useless--”the labor movement must move cautiously”--enlist govt. support and convince employers that UAW is “a good union”--Collins and Dillon especially backed away from strike weapon--strikes were more common, often called by the federal labor union without advance approval from AFL--the AFL worried about the depressed state of the industry, weak locals, tough employers and so were afraid to challenge the major companies--

AFL had some success organizing weaker mfg’s in auto, like Nash, Studebaker and White, and in parts mfg’s outside MI, where the automakers were politically so strong--locals were also more daring, as in Toledo--

June, 1935: 421,000 workers in auto industry, 22,687 members in UAW fed. Labor union(5.4%)--only 4481 GM workers(3% of GM)--five locals in Flint had only 757 paid-up members--the radical leaders of the UAW came repeatedly into conflict with the conservative officers of the AFL--other small unions like Automobile Workers Industrial Assoc(AIWA), developed out of the ALB bargaining agent at Dodge, was building strength at the Chrysler plants in Detroit; MESA(formed in early, 1933) had some bargaining strength in the parts plants and job shops in Detroit-- the Associated Auto Workers of America (AAWA), formed by several UAW federal labor unions which seceded from the AFL in the summer, 1934, gained some power in Hudson--

early strike threats were stifled by Collins, leading to the ALB in March, 1934--stirrings in Fisher No 1 and 2 and at Buick--local officers were eager to strike, thinking they could pull militants who thought the AFL too timid--regarded the March, 1934, settlement as a sell-outIn October, 1935, the CIO was founded and in April, 1936, the UAW was founded at meeting in South Bend--Homer Martin(Pres), Wyndham Mortimer(1st V-P) and George Addes (Sec-Treas)-Walter lied his way on to the ExBd spot--Lewis gave $100,000 to start new union, if it agreed to support FDR in 1936 election--GM campaign was chosen because Ford was so violent and GM set the path for the whole industry--figured that by seizing Fisher No. 1, they could hold dies and cripple the whole corporation

In summer, 1936, organizers were sent to Flint: Mortimer, Roy Reuther, Henry Kraus, and they planned for after Christmas bonus, after installation of Frank Murphy as governor--