Labor Relations
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IPPT_Ch03_Budd6e.pptxChapter 3
Historical Development
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Learning Objectives
Understand why workers have tried to form unions throughout United States history and the influences on their successes and failures.
Identify the major events in United States labor history, including what happened and why each event is significant.
Compare the major organizations in labor history and their contrasting strategies.
Understand how studying the historical record deepens our comprehension of the current labor relations system and alternatives for reform.
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Introduction 1
Current United States labor relations system is a product of history
United States labor law.
Unions’ current policies are shaped by events that happened decades years ago (example: seniority).
Student of labor relations should be aware of major events in United States labor history
Reveal the leading issues and conflicts of an era.
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Introduction 2
The history of labor relations contains rich tapestry of organizations and strategies
Historical development of United States labor relations involves components of:
Social history.
Business history.
Economic history.
Legal history.
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From Local to National Organizations 1
Most workers today are employees selling their labor for a wage or a salary
10 percent are self-employed.
Half of employees today work for large organizations.
At the end of the 1700s:
Majority of free people were self-employed.
Businesses were small and local.
Early “large” businesses were in the iron industry and employed around 25 employees.
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From Local to National Organizations 2
Over 100 years later: Business became “big business”
Characterized by hierarchical, centralized control and concentrated wealth and power.
United States Steel employed 170,000 employees.
Ford’s Highland Park factory outside Detroit had 15,000 employees.
The era of self-employment was over.
Working for a paycheck became widespread.
Fixed working hours, punctuality, and constant work effort replaced autonomous work habits.
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From Local to National Organizations 3
As business organizations became larger and more national in scope, so too did labor unions
Budding national unions were craft unions.
National unions began to develop in the 1850s
Necessitated by the ability of manufactured goods to be shipped via railroads.
Facilitated by the ability of union leaders to travel via railroads.
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A Timeline of Labor History up to 1875
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From Local to National Organizations 4
United States labor organizations was the creation of a national labor federation
The first such federation was the National Labor Union, founded in 1866.
The National Labor Union lasted only six years.
Established a precedent for the labor movement by uniting diverse unions into a single federation.
National Labor Union emphasized:
Political activity to bring about legal reform.
Currency and banking reform, women’s suffrage and a national labor political party.
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The Great Uprising of 1877 1
The 1870s ushered in an era of intense violent labor conflict that would continue into the 20th century.
The rhetoric of protecting the individual liberty to hire or work on terms of one’s own choosing was used to justify the armed repression of unions, and the resulting story of labor history is “written in blood”.
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The Great Uprising of 1877 2
The Great Uprising of 1877
A social earthquake.
Uprising demonstrates the shared concerns of workers.
Frequently used to define the beginning of the modern era in United States labor relations.
The Great Uprising of 1877 laid the foundation for future labor-management conflict rather than cooperation.
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Uplift Unionism 1
Noble and Holy Order of the Knights of Labor
One union that survived the depression of 1873 to 1878.
Emphasized secrecy to prevent employers from breaking it.
Objectives: uplift unionism
Philosophy in which a union “aspires chiefly to elevate the moral, intellectual and social life of the worker”.
Shorter working hours were needed so that workers would have greater time for education and moral betterment.
Ultimate goal was replacing capitalism with a system of producer cooperatives.
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Uplift Unionism 2
Knights of Labor consisted of numerous local assemblies
Aimed to unite all “producers”.
Central conflict was not with employers; it was with those who controlled money and who were perceived as not working.
Knights of Labor was broadly inclusive
Emphasized the solidarity of all producer including African-Americans and women.
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Uplift Unionism 3
Emphasized cooperation and education
The top leadership of the Knights of Labor opposed the use of strikes and boycotts.
The Haymarket Tragedy contributed to its overall demise.
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Pure and Simple Craft Unionism 1
25 national unions created a new labor federation in 1886
The American Federation of Labor (A F L) .
The first president of the AFL was Samuel Gompers.
AFL was a union federation, not a labor union.
The AFL sometimes coordinated bargaining and strikes when multiple unions were involved.
It provided financial assistance to striking unions.
A F L unions wholeheartedly endorsed a system of craft unionism
Unions were divided along craft lines by occupation or trade.
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Pure and Simple Craft Unionism 2
A F L unions was further guided by the principle of exclusive jurisdiction
There would be only one union per craft.
Important function of the AFL was to resolve jurisdictional disputes but as with other issues.
Important activity of the A F L unions
Establishing and maintaining job standards through work rules.
Control over decision making was seen as necessary to promote human dignity.
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Pure and Simple Craft Unionism 3
The A F L and its affiliated unions are the classic example of business unionism philosophy
AFL and its unions emphasized immediate improvements in basic employment condition.
Wages.
Hours.
Working conditions.
Business unionism accepts capitalism and the need for employers to make a profit.
Seeks to win labor’s fair share of the profits through collective bargaining backed up by the threat of striking.
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A Time Line of Labor History for 1875 to 1925
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A F L Losses and the Radicals’ Reaction
The A F L and its unions: Unsuccessful conflicts with employers
One of the most violent examples of this struggle for workplace control was Homestead strike (1892).
The second great labor history event of the 1890s was the Pullman strike (“King Debs” in figure 2.1).
1905 to 1925, a visible radical and militant approach
The Industrial Workers of the World (I W W).
Nicknamed the “Wobblies”.
Formed out of frustration with the conservatism of business unionism.
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Workers of the World Unite! 1
The I W W: Objectives and strategies
Major United States example of revolutionary unionism.
Ultimately seeks to overthrow capitalism.
But short-term improvements were viewed as important victories for bettering workers.
Emphasizes the working class solidarity against the representatives of capital.
Seeks to unite all workers, skilled and unskilled.
Goal was to form “One Big Union”.
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Workers of the World Unite! 2
The I W W: Conflicts and demise
I W W’s biggest victory was the Lawrence, Massachusetts, textile workers’ strike in 1912.
But couldn’t survive resistance from the A F L, employers, and as the anticommunist red scare during and after World War I.
I W W’s emphasis on social justice provided sparks for the industrial unions that would mushroom in the 1930s
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Staying Union-Free in the Early 1900s 1
Craft unions wanted to control the standards of their crafts by:
Restricting entry to skilled workers to maintain high wage levels.
Having workers rather than employers determine all aspects of work to maintain worker dignity.
Workplaces as closed shops in which only union members could be hired.
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Staying Union-Free in the Early 1900s 2
1900 to 1920s: employers led aggressive efforts to achieve and maintain open shops (the open shop movement)
Open shop: nonunion employees selected by the employer.
The open shop movement portrayed an ideology of individual freedom
Unions were depicted as violating individual liberties by denying workers the ability to choose where to work.
Renamed the American Plan in the 1920s.
Open shop was equated to the “liberty and independence” of the employer that protects the employer’s “natural and constitutional rights”.
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Staying Union-Free in the Early 1900s 3
But in reality, this consisted of well-orchestrated collective activity by business
Tactics were very similar to the union activities they portrayed as un-American.
Divide-and-conquer tactics along racial and ethnic lines were also used.
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Welfare Capitalism 1
Late 1800s, some companies implemented a strategy of welfare work
Tried to create harmony between workers and their employers by creating a family-like company spirit.
Enhancing the welfare of workers.
Welfare work evolved into the creation of the personnel management function.
The 1920s were characterized by welfare capitalism
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Welfare Capitalism 2
Welfare capitalism: Sought to win worker loyalty
Increase efficiency by improving supervisory practices implementing orderly hiring and firing procedures.
Providing wage incentives.
Offering protective insurance benefits.
Creating a positive culture.
Improving the physical work environment and safety.
Providing employee voice.
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Welfare Capitalism 3
Employee representation plans (“company unions”)
The most controversial aspect of welfare capitalism was this attempt to provide nonunion industrial democracy.
Are company unions sham unions?
Some see this as a union prevention strategy.
Did not have the authority to force management to discuss specific issues (recall independent union criteria from chapter 2).
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Welfare Capitalism 4
But they did provide an open channel of communication with management and a forum to present grievances.
Companies sometimes made concessions to the employee representatives (to prevent unionization?).
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A New Deal for Workers 1
The Great Depression
Consumer purchasing drastically slowed.
Unemployment drastically increased.
Weak farm prices put farmers out of business.
Panics wiped out savings accounts.
Banks closed.
The New Deal program of the Roosevelt administration was a major break with the past
Create an active government role in guaranteeing social welfare.
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A New Deal for Workers 2
Provide for the security of the population, including social security and unemployment insurance.
Switch from mainstream economics to I R school of thought.
Striking for new labor legislation (more in chapter 4)
Starting with the national industrial recovery act (N I R A) in 1933.
Encouraged and emboldened workers to form unions.
But the N I R A was weak.
Tremendous strikes in 1934 as workers clashed with employers who refused to recognize their independent unions.
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A New Deal for Workers 3
In 1935 Congress passed the Wagner Act.
Remains a key centerpiece of United States labor law today.
Encouraged unionization, enacted legal protections for workers, and outlawed company unions.
Industrial unions emerged as a significant force in the mid-1930s
Industrial unionism seeks to organize all the workers in a workplace or industry (compare, craft unionism).
Aggressive organizing in heavy industry by the Committee on Industrial Organization (C I O).
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A New Deal for Workers 4
A new federation to rival the AFL
After the C I O organizing drives resulted in viable unions, it formally became the Congress of Industrial Organizations (C I O) in 1938.
At that time, there were roughly 35 industrial unions affiliated with the C I O, and their growth was spectacular.
Sitting down for union recognition
Even after the passage of the Wagner Act, companies took a hard line with union organizers and pro-union workers.
Just as in the 19th century, companies extensively used labor spies to infiltrate unions and break them.
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A New Deal for Workers 5
Watershed General Motors sit-down strike (1936 to 1937)
Workers in Flint, Michigan, took over two Chevrolet plants by sitting down and refusing to work or leave the plant.
After a series of hard-fought battles (literally), the United Auto Workers won a huge victory by getting General Motors to recognize the union.
Memorial Day Massacre (1937)
10 people killed by police in a protest to gain recognition of the United Steelworkers.
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A Time Line of Labor History for 1925 to 1960
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Postwar Labor Relations 1
Cementing the postwar model of labor relations
The end of World War II brought on the Great Strike Wave of 1945 to 1946
Led to major changes in the Wagner Act through the passage of the Taft–Hartley Act in 1947.
Companies retained the right to manage after unions lost strikes demanding involvement in decision-making.
Unions could negotiate for higher wages, better benefits, and favorable seniority provisions, but they would not be involved in production decisions.
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Postwar Labor Relations 2
From this point forward, union contracts increased in length and detail while shop floor activism was curtailed by the workplace rule of law.
A F L and C I O united in 1955 to become today’s A F L-C I O
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Wartime and Postwar Labor Relations 1
Public attention to the labor movement in the 1950s focused on allegations of union corruption (think, Jimmy Hoffa)
Fears of union corruption and the presence of mafia-infiltrated local unions led to the passage of the Landrum-Griffin Act.
1960s: public sector unionism (not covered by the Wagner Act)
In 1959 Wisconsin passed the first law protecting public sector collective bargaining.
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Wartime and Postwar Labor Relations 2
The federal government and a number of other states followed (though roll-backs since 2010).
Union density is now much higher in the public sector than in the private sector.
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A Turbulent End to the 20th Century 1
For private sector unions, the remaining decades of the 20th century would be years of turbulence and decline
Racial and ethnic tension within unions.
Some unions were discriminatory, others were progressive (a microcosm of broader societal divisions).
Some unions were at the forefront of the Civil Rights Movement; others remained on the sidelines.
The Civil Rights Act of 1964 outlawed discriminatory practices by both employers and unions.
Memphis sanitation strike: black sanitation workers demanded improved wages and working conditions, civil rights and respect.
Martin Luther King was assassinated while supporting the strike.
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A Turbulent End to the 20th Century 2
For private sector unions, the remaining decades of the 20th century would be years of turbulence and decline
Significant strikes, including many defeats in the 1980s and 1990s especially when strikers were permanently replaced.
In 1981 President Reagan fired the air traffic controllers during the illegal P A T C O strike.
Significant concession bargaining in the 1980s.
Shake-up of the A F L-C I O leadership in 1995.
But couldn’t reverse private sector density decline.
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A Time Line of Labor History for 1960 to 2000
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Labor Relations in the 21st Century 1
Challenging times of the late 20th century have continued for labor unions
Globalization and financialization continue to undermine labor’s bargaining power.
Private sector union density has dropped to less than 10 percent.
Companies and unions react differently to such tremendous pressures
Labor relations practices have become more divergent.
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A Time Line of 21st Century Labor History
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Labor Relations in the 21st Century 2
The economic and political environment continues to pressure the labor movement to change
Union mergers have washed away many historical distinctions between craft and industrial unions.
General unionism has largely replaced craft unionism and industrial unionism.
Even public sector unions are under pressure because they are seen by conservatives as a roadblock to reducing the size of government.
For example, Wisconsin’s Budget Repair Bill (2011).
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Labor Relations in the 21st Century 3
Under the Trump administration, Supreme Court vacancies have been filled with conservative judges, which resulted in a major ruling against public sector unions in the 2018 Janus case.
Republican control of the White House and Senate might also bring about legislative and other changes unfavorable to labor unions in the private and public sectors.
Despite these challenges for the labor movement millions of productive unionized workers go to work each day protected by unionized contracts negotiated without strikes.
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Labor Relations in the 21st Century 4
The largest unions and watershed strikes in various eras involve occupations that were prominent at that time
Recently: Doctors, university teaching assistants, and nude models have tried to form unions.
The details may differ, but the fundamental reasons that workers support unionization are universal
To seek greater equity and increased voice in the workplace through collective action with coworkers.
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No reproduction or further distribution permitted without the prior written consent of McGraw-Hill.
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A Timeline of Labor History up to 1875 1 - Text Alternative
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The time line ranges from 1750 to 1875 at intervals of 25 years. The data from the timeline are as follows:
| Years | Events |
| 1750 to 1775 | Spontaneous strikes; no permanent labor unions |
| 1810 | Philadelphia shoemakers form the first permanent local union |
| 1815 to 1822 | Economic recession |
| 1837 to 1842 | Economic recession |
| 1859 | First permanent national union was formed |
| 1866 | National Labor Union was formed |
| 1873 to 1875 | Economic recession |
All the years mentioned in the table except 1750 to 1775 are approximate.
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A Timeline of Labor History up to 1875 2 - Text Alternative
Return to parent-slide containing images.
The changes in work and business organization are as follows:
| Years | Changes in Work and Business Organization |
| Up to 1775 | Farmers, artisans, shopkeepers |
| 1775 to 1825 | Small-scale craft shops |
| 1825 to 1850 | Textile mills |
| 1850 to 1875 | Railroads |
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A Time Line of Labor History for 1875 to 1925 1 - Text Alternative
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The time line ranges from 1875 to 1880 at an interval of five years, from 1880 to 1920 at intervals of 10 years, and from 1920 to 1925 at an interval of five years. The data from the time line are as follows:
| Years | Events |
| 1875 to 1878 | Economic depression |
| 1876 | Molly Maguires |
| 1877 | Great uprising |
| 1883 to 1885 | Economic depression |
| 1886 | Knights of Labor was the most influential union in the United States with 400,000 members |
| 1886 | American Federation of Labor was established |
| 1887 | Haymarket tragedy; rise of big business industry |
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A Time Line of Labor History for 1875 to 1925 2 - Text Alternative
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| Years | Events |
| 1893 | Rise of big business |
| 1893 | Homestead strike |
| 1893 to 1896 | Economic depression |
| 1894 | Pullman strike |
| 1900 to 1915 | Open shop movement |
| 1905 to 1925 | Industrial workers of the world approach was implemented |
| 1912 | Rise of mass manufacturing industry |
| 1913 | Ludlow massacre |
| 1919 | 1919 strikes |
| 1919 to 1925 | Welfare capitalism |
| 1921 to 1923 | Economic depression |
The years for the events are approximate.
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A Time Line of Labor History for 1925 to 1960 1 - Text Alternative
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The time line ranges from 1925 to 1930 at an interval of five years and from 1930 to 1960 at intervals of 10 years. The data from the time line are as follows:
| Years, Approximate | Events |
| 1925 | Beginning of mass production |
| 1929 to 1940 | Economic depression |
| 1934 | Strikes |
| 1935 | Wagner Act was passed |
| 1936 | Sit-down strikes |
| 1937 | Memorial Day Massacre |
| 1938 | Congress of Industrial Organizations |
| 1945 to 1946 | Strike Wave of 1946 |
| 1947 | Taft–Hartley Act was passed |
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A Time Line of Labor History for 1925 to 1960 2 - Text Alternative
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| Years, Approximate | Events |
| 1955 | A F L–C I O merger |
| 1952 to 1954 | Recession |
| 1956 to 1958 | Recession |
| 1959 | Landrum–Griffin Act |
The years for the events are approximate.
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A Time Line of Labor History for 1960 to 2000 1 - Text Alternative
Return to parent-slide containing images.
The time line ranges from 1960 to 2000 at intervals of 10 years. The data from the time line are as follows:
| Years | Events |
| 1960 to 1962 | Economic recession |
| 1960 to 1964 | Civil rights movement |
| 1960s | Growth in public sector unions |
| 1968 | Memphis sanitation strike |
| 1969 to 1970 | Economic recession |
| 1972 | Lordstown strike |
| 1973 to 1975 | Oil crisis, economic recession |
| 1974 | Beginning of globalization or flexibility |
| 1980 to 1982 | Economic recession |
| 1981 | P A T C O firings |
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A Time Line of Labor History for 1960 to 2000 2 - Text Alternative
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| Years | Events |
| 1983 | Beginning of concession bargaining |
| 1985 | Phelps; Dodge, Hormel strikes |
| 1990 to 1992 | Economic recession |
| 1997 | U P S strike |
The years for the events are approximate.
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A Time Line of 21st Century Labor History 1 - Text Alternative
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The time line ranges from 2000 to 2020 at intervals of five years. The data from the time line are as follows:
| Years | Events |
| 2000 to 2020 | Globalization and financialization continues |
| 2001 | Economic recession |
| 2003 | Southern California grocery strike |
| 2005 | A F L–C I O breaks away |
| 2005 | Change to Win federation formed |
| 2005 | Indiana and Missouri rescind state employee bargaining rights |
| 2008 to 2009 | Global financial crisis |
| 2008 | Economic recession |
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A Time Line of 21st Century Labor History 2 - Text Alternative
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| Years | Events |
| 2009 | Concessions and auto industry crisis |
| Starting in 2011 | Weakening of public sector bargaining laws; increased right-to-work laws |
| 2012 | Beginning of fast food strikes |
| 2018 | Teacher strikes |
The years for the events are approximate.
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