McGraw-Hill/Irwin Copyright ©2009 The McGraw-Hill Companies, All Rights Reserved.

The Evolution of American Labor

Chapter Two

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Major Milestones

Craft unions National unions American Federation of Labor (AFL) Congress of Industrial Organizations (CIO) Labor legislation Merger of AFL and CIO

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Other Influences

Immigration

Economic panics

The American labor movement has been predominantly results-oriented rather than ideologically-oriented

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Union Philosophies

Labor creates wealth and its due returns Inequality in wealth Goals of workers and employers differ Trade unions are necessary to protect

workers

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Union Corporatist Agenda

Joint governance between union, employers, government.

Laws and regulations requiring minimum standards

Consultation/bargaining with management Corporatist agenda strong in Europe,

declining in U.S.

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Types of Union Goals

1. Uplift: concerned with social issues

2. Revolutionary: overthrowing capitalism

3. Business: immediate employees’ interests

4. Predatory: enhance union at workers’ expense

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Early Unions

Legal decision, rural makeup, competing immigrant workforce hindered early labor movement

Philadelphia Cordwainers - Philadelphia 1794

Conspiracy doctrine – union punishment if means or ends determined unlawful by courts Softened in 1842 by Commonwealth v. Hunt

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Pre–Civil War Unions

Employers did not recognize legitimacy of unions

Courts punished unions Immigrant competition Collective efforts continued among

skilled/unskilled artisans

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Pre–Civil War Unions

Organized workers contributed to campaigns

Unions started using strikes to gain wage increases

Membership swells followed by poor economic conditions

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National Unions

National trade unions in 1850s Pre-Civil War: trade-related Post-Civil War: spanned industries

Major public policy focus - immigration

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National Unions

National Labor Union – 1866 Political and reformist goals rather than

economic or immediate Eight-hour workday, cooperatives, banking

reforms, immigration limitations, Department of Labor

The Knights of Labor – 1869 City-by-city basis across crafts Arbitration instead of strikes

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National Unions

American Federation of Labor (AFL) – 1886 150,000 frustrated craft unionists from 25 labor groups Samuel Gompers’ leadership shapes business

orientation of unions Accepted economic system and worked within it

AFL structure preserved member unions, created subsidiaries Leaders focused on unique issues facing trade

industry Oversight of local activities

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Labor Unrest

Big struggles in late 1800s, early 1900s Financial panic led to depressions Owners refused to recognize or negotiate with

unions Government sided with businesses

Strikes at coal mines, railroads, plants led to jailings/deaths

Homestead and Pullman strikes thwarted, challenging effectiveness of unions

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Polarization

Owners hired detectives, workers threatened managers, police sided with owners, companies controlled housing

New revolutionary unions gather steam Western Federation of Miners Industrial Workers of the World

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Industrial Workers of the World

Preamble to the IWW Constitution lays out divisive vision Classes have nothing in common Conservative “A fair day’s wages for a fair day’s

work” scrapped New “Abolition of the wage system”

Radical rhetoric, not radical demands Wanted to abolish wage systems, not achieve

better wages Violence usually stemmed from management

actions Organization collapse because of WWI stance

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Political Intervention

Couer d’Alene mine wars in 1890s State and federal troops quelled insurgencies Strikers terminated, replaced by strikebreakers Former Idaho governor assassinated, Haywood

accused and acquitted

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Boycotts

Local employee strikes National campaigns urging members and

public to boycott Danbury Hatters Bucks Stove boycotts

Federal courts interpreted union activities as restraints on commerce, and punishable using Sherman Antitrust Act

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Early Legislation

Congress passed Erdman Act in 1898 Prohibited discrimination of railroads workers

for union membership Determined unconstitutional in 1908

Clayton Act of 1914 “Industrial Magna Carta” according to Samuel

Gompers Supreme Court removed act’s power in support

of employers

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Trade Union Success & Apathy

WWI End of IWW, rise of AFL National War Labor Board established in 1918 to

reduce strikes Labor rights to organize & bargain recognized Earnings, AFL membership up significantly

Post WWI Prosperity, immigration decline “American Plan” – open shop and yellow-dog

contracts

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Transition – 1920s

Agricultural to industrial society – reduced skill requirements

Immigration quotas reduced influx of impoverished potential employees

Depression approaching

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Industrial Unions

Pre-1930s, industrial union organizing unsuccessful

Depression and new union-friendly legislation changed that

Contentious AFL internal struggle regarding industrial unions

Committee for Industrial Organization, Steel Workers Organizing Committee, United Automobile Workers

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1930s Public Policy Shifts

Norris-LaGuardia Act of 1932 restricted court action against unions, but employer conduct guidance still did not exist

National Industrial Recovery Act of 1933 allowed employees to bargain through own representatives Ruled unconstitutional

Wagner Act of 1935 resecured organizing rights and specified employer illegal activities National Labor Relations Board and exclusive

representation between union and workers

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Corporate Defiance

Employed strategies to oppose organizing Developed company unions Mohawk Valley formula used to link unions to

communists Enormous budgets for spying, strikebreaking,

arsenals

Supreme Court reaffirmed Wagner Act in 1937 Industrial organizing flourished over corporate

objections

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1930s Labor Revival

Great Depression heightened sense of need for employee support

Federations competed for members, raided each other

Supported campaigns and secured union-friendly reps

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1940s Political Influences

Questions of capitalism’s ability to avoid depressions

Radical political agendas – government regulation proposed

Crisis between labor and management based on war stands

Public intolerant of labor demands

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WWII

President Roosevelt establishes National War Labor Board NWLB attempted to maintain cost-of-living

wage increases Labor objected, wanting collective bargaining

ability

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WWII

No-strike pledge violated, led to War Labor Disputes Act by Congress over Roosevelt’s veto Allowed for seizing of plants involved in labor

disputes Made strikes & lockouts unlawful Thirty days’ notice of dispute to NWLB Required NLRB to monitor strike votes

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WWII

Innovative bargaining Fringe benefits in place of wage increases

Holidays, vacations, sick leaves, shift differentials approved by NWLB

Advocacy of equal employment opportunities for minorities & women

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Post-War Conditions

Labor sought pay hikes Highest number of strikes in U.S. history in 1945-46

Coal, rail, auto, steel Conservative Congress balanced employer & union

power Taft-Hartley Act expanded employee rights,

introduced “right-to-work” laws, required union to bargain in good faith

Federal Mediation and Conciliation Service to aid contractual disputes

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Productivity Structure Shift

Employer “drive system” gave power to supervisors

Fear implemented by foremen to meet production quotas

Higher wages funded by productivity increases resulting from more skilled workers

New capital-labor agreements for next 40 years

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Union Reflection/Unification

Labor realized it needed stronger public efforts requiring united front

Joint Unity Committee studied merger possibility

Merger formed the AFL-CIO in 1955 Late 1950s – mid-’60s saw union decline

and corruption

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Corruption

In 1957, labor officials invoked Fifth Amendment to avoid self-incrimination

Teamsters president converted union funds for own use

“Sweetheart” contracts with substandard benefits and guaranteed labor peace uncovered

Management contributed to corruption by providing payoffs for sweetheart contracts preventing other unions from organizing while the employers paid substandard rates.

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Corruption

AFL-CIO investigated internally and considered charges

Teamsters refused mandated changes, expelled from the AFL-CIO in 1957

Congressional investigations led to legislation to reduce likelihood of corrupt practices and to amend the Taft-Hartley Act

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Landrum-Griffin Act

Established rights of individual union members to freedom of speech, equal voting rights, control of dues increases, copies of labor agreements under which they worked

Unions required to file periodic reports of official and financial activities and holdings of union officers and employees

Employers required to report financial transactions with unions

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Landrum-Griffin Act

Internal union political activities involving election of officers and placing of subordinate bodies under trusteeship regulated

Recently convicted felons barred from holding office

Extortionate picketing prohibited

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Public Sector Union Growth

President Kennedy issues several Federal Executive Orders that helped unions bargain collectively with government and established labor practices

Civil Service Reform Act of 1976 established Federal Labor Relations Authority, equivalent of NLRB

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Labor Crisis

Membership continues to shrink 1970s brought oil shortages, price

increases, war, inflation, unemployment Reagan presidency brings higher business

expenses and need to keep costs down Higher interest rates brought recession

2-38

Labor Crisis

Companies make severe cuts to save money Major shareholders demand better returns,

replace executives Many companies fold under competitive

pressure Striking air traffic controllers ordered back to

work, then replaced Labor on defensive, facing shift from industrial

to service industry

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New Union Leadership

Lane Kirkland retired as AFL-CIO president in 1994

Replaced by John Sweeney First insurgent candidate in 70 years Promised to reenergize organizing activities

Union membership continues to decline Globalization, nonunion competition leads to

additional pressure A new coalition, Change to Win, formed