Development of Labor Unions

Theodore W. Reedy. A Brief History of the American Labor Movement. 

This was published by the U.S. Department of Labor based on information in the Department of Labor and the Division of Industrial Relations, supervised by Nelson M. Bortz. 

Labor unions began in the United States long before the founding of the country. They fought for “financial assistance in the event of serious illness, debt, or death of a wage earner.”

Local craft unions “formed separate organizations in Philadelphia, New York, and Boston . . . largely to resist wage reductions. . . . shorter hours . . . establishment of the . . . closed shop.”

Collective bargaining established by the early 1800s. In addition, workers used the strike to aid them in negotiations with employers. (3)

To counter this employers “formed organizations to resist wage demands.” They would also hire “nonunion workers.” (3)

“Unions were prosecuted as conspiracies in restraint of trade.” 

Throughout the 1800s the definition of what is a conspiracy turned toward strikes being considered “lawful.” (3)

In the early 1800s the unions became involved politics, for instance, the working mean now had a right to vote.

In addition, the Industrial Revolution caused an increase in population in the major cities such as, Philadelphia, New York, and Boston. In Philadelphia “the Mechanics’ Union of Trade Associations . . .  began to nominate and elect candidates to represent the interests of the working classes in the Philadelphia city council and the Pennsylvania State Legislature. Local labor parties organized by workers also sprang up in many states.” 

A question in my research is how radical, leftist, militant was the American labor union movement before the 1930s and before the Taft-Hartley Act of 1947. Defining militancy is incredibly difficult and has not been done. Hence, arguing that the Taft-Hartley Act defeated and removed militant trade unionists (under the guise of removing communists) its difficult to argue. Most labor historians don’t believe it did. However, I wrote a Master’s Thesis arguing that it did. At the same time the Great Ellen Schrecker published Many Are the Crimes which unequivocally proved the point. Nevertheless, the argument continues.

Soon, the workingmen’s economic activity dropped in favor of political action. The workingmen had emphasized craft unions.

Their political action gave attention to “social and economic inequality experienced by workers. . . . Eventually, state legislatures prohibited imprisonment for debt, enacted the 10 - hour day for women and children.”

“In the early 1830s the interest of workers in reform movements and political action declined.” However, “rapidly rising prices between 1835 and 1837” workers returned to organizing. Consequently, they discussed “problems common interest and to promotion of lion-made goods.”

An attempt to expand the local unions in 1835 and 1836 failed due to the financial panic of 1837 and the period of depression and unemployment which followed during most of the forties.” 

This relies on Poulantzas argument of relying on outside forces is not good.

American industry improved in the late 1840s and workingmen resumed organizing. In the “1850s several national unions were founded. . . . The decade was marked, also by many strikes . . . involved in almost every known craft and the majority of American cities. Collective bargaining . . . slowly becoming more prevalent. (6)

In 1840 President Martin Van Buren implemented the ten-hour work day for government workers. Massachusetts implemented the ten-hour day state-wide. (7)

Factory workers had been working “11 to 12 hours a day.”  Wages rose to about $1.25 per day. By 1860 better skilled workers could earn $2.00 per day. (8)

Unions created in the Civil War in power and grew nationally. In the 1870s there were “three unsuccessful attempts . . . to unite the various craft organizations into national labor federations.” There were also calls for the 8-hour day movement and the first signs of the long, bitter, and sometimes violent industrial warfare which characterized the struggle of American labor unionism for recognition and survival.” (8)

In 1866 the National Labor Union was formed because workers demanded “unification of labor groups throughout the country.” (8)

Workers organized “cooperatives” as a way of freeing themselves “from the control of capitalism.” (8)

The National Labor Union politically supported the “Greenback movement which fared large issues of paper money and easy credit at low interest rates.” (8)

The National Labor Union fell apart in 1872 as did the National Reform and Labor Party. (8) Nevertheless, the Union successfully promoted the 8 hour day in some workplaces and a Bureau of Labor which later became the Department of Labor. (9)

Trade - union membership dropped in the 1870s due to a “new economic depression.” (9) Workers were unable to sustain strikes in their fight “against wage reductions.” (9)

1877 railroad strikes “brought in their wake riots, martial law, intervention of State and Federal troops, and some fatalities.” (9)

The 1870s brought an understanding of the need and benefit of a national labor movement. Also, unskilled workers contributed to organized labor. (9)

The Knights of Labor was founded in 1869 amid hostility toward “trade-union organization.” (10) By 1886 they had 700,000 members. Their primary mission was “the replacement of a competitive society by a cooperative one which would give workers the opportunity to echo the wealth thy created. Sounds very marxist to me. This was to be achieved “primarily through reducing the money power of banks, not through battles with individual employers. . . . called for the 8-hour day, equal pay for work by women, abolition of convict and child labor, public ownership of utilities, and the establishment of cooperatives. Reliance was placed on educational and political methods rather than on collective bargaining. Strikes were to be employed only as a last resort.” (11)

However, some in the Knights of Labor”favored processes of collective bargaining clashed with those committed to political means and basic social change. (12) There was also conflict over whether skilled and unskilled workers should unite. (12-13)

The creation of the American Federation of Labor led to the demise of the Knights of Labor. The American Federation of Labor was founded in 1881. They focussed on “pure and simple unionism” striving for higher wages and improved working conditions.” (13) not trying to change society or have a revolution. Put to 1920 the AFL grew into “the principal federation of American unions. (13)

Nonetheless, “large corporations” began to fight the unions. (15) “At times these clashes resulted in violence, injuries, and even death. For example, the unsuccessful struggle of the Amalgamated Association of Iron and Steel Workers against the Carnegie Steel Co. at Homestead, Pa., in 1892” led to a battle between the workers and Pinkerton detectives. 10 people died. The “National Guard restored order.” (15)

“Twenty-five persons were killed and 60 were injured” during the American Railway Union Strike in Pullman, Ill. Federal and state troops were used and court injunctions were obtained against the union.” (15)

In the early 1900s “employer opposition stiffened and became more highly organized.” (16) “Scientific management and efficiency systems were introduced.” The workers were not pleased. Employers organized “citizens’ committees . . . to resist unionization.” The courts supported the employers. Nevertheless, union membership grew. “The stabilization of industrial relations and the attainment of job security are considered by many authorities as important factors in the success of AFL trade-unionism at this period.” (17)

The AFL avoided politics, operating on “the principle of non-partisan politics, summed up in the dictum to defeat labor’s enemies and to reward its friends.” (17)

Ironically, friendly labor laws passed throughout the country, such as, “laws regulating the employment of women and children in industry and providing for protection against industrial hazards. Workmen’s compensation laws were adopted in most States, and in 1913 the United States Congress created a separate Department of Labor.” (17)

Clauses were inserted in the Clayton Anti-Trust Act of 1914, at the insistence of the AFL, exempted unions.” (17) However, the courts continually ruled against the unions.” (18)

Almost revolutionary unions were formed which challenged the AFL and Samuel Gompers. They were “committed” to “class struggle.” They believed they must be involved in politics. This conflict began in the 1890s, and lasted until the First World War. The AFL won “the great majority of the country’s organized workers.” (18)

The Socialist Labor Party, and the Industrial Workers of the World opposed the AFL. (18) Dissident workers created the Industrial workers of the World in 1905. Their goal: abolish “wage system” and create a “great mass of unskilled workers and of migratory or casual laborers.” (19)

The IWW fell out of public favor side to its “militant tactics . . . particularly during the First World War.” Some states outlawed the IWW. Leaders were imprisoned. (19)

World War I saw “increased industrial activity and labor shortages brought a rapid expansion of unions. A National War Labor Board was created to promote union-management cooperation.” Thus, the federal government accepted the “right of workers to organize in trade unions.” (19-20) In addition, the Board would hear worker “complaints about industrial conditions.” (20)

Union membership grew including “semi-skilled and unskilled workers joined unions.” (20) This was the “result of organizing activity in the favorable climate of Federal Protection.” (20)

In addition, wages grew “particularly during the years of and immediately following the First World War. . . . At the same time, average hours worked per week . . . declined from more than 60 in 1890 to 49 in 1914. In 1923, the average workweek approximated 46 hours.” (20)

Post World War I inflation hurt wages and the Federal Government withdrew protection of labor’s right to organize. Gramsci don’t rely on the government. Protection for workers ended. Therefore, "numerous employers refused to recognize labor unions which had been organized in their plants. . . . Many labor leaders called for more aggressive action.” (21)

Iron and Steel Workers launched a failed strike. Courts imposed an injunction and ruled against a mine workers strike in 1919. A railroad strike in the early 1920s failed and also failed to prevent loss of wages, hence union membership dropped. (21) Thus, this became the “open shop era. To weaken or disrupt labor organizations employers in these years introduced a variety of welfare measures, ranging from athletic fields to pension plans, as well as repressive measures as the use of spies and strikebreakers. Company unions dominated by employers were likewise established. Yellow dog contracts, requiring a worker to promise, as a condition of employment, that hew would not join a labor union, were also used effectively.” (22) Nevertheless, some workers’ wages increased although others suffered. (22)

“From 1920 to 1923 total union membership fell from 5 million to slightly over 3 1/2 million. . . . Of the 105 AFL international unions active in 1929, only 44 had held their own or expanded their membership after 1925.” This is during America’s “prosperity.” (22)

Trade union membership increased precipitously after passage of the National Industrial Recovery Act in 1933 which guaranteed the right of employees, that trade-unionism in the United States began to revive. . . . Another contributing factor was the enactment, in 1932, of the Norris-LaGuardia Act, which limited the use of court injunction in labor disputes.” (23)

“The National Labor Relations Act (Wagner Act), passed July 5, 1935, guaranteed the right of workers to organize and bargain collectively with their employers. It also prohibited employer-dominated or financed company unions.” (23)

Consequently, union membership continued to grow through 1937. (23)

Now we have been talking about the government protecting workers, hence, the unions are dependent on the government. “The Fair Labor Standards Act (of 1938), set minimum wage, overtime and child labor standards which apply to employees engaged in interstate commerce.” (23-24)

Conflict within the AFL over organizing previously ‘unorganizable’ workers. (24) Debate over industrial versus craft workers. A “schism” in the AFL developed. (25)

Soon the Committee for Industrial Organization was formed. (26) It first met in 1938. (26) Nevertheless, union membership goes. Unions were now recognized. (27) However, “strikes remained relatively high. Interestingly, the war in Europe caused prices to increase in 1941 and so work “stoppages again became more frequent. Most of the prewar labor-management conflicts, however, revolves around demands for better wages and greater union security.” (27)

Labor and management united after the Japanese attack on Pearl Harbor. (27) President Roosevelt had labor agree not “to sanction strikes” and management not to lockout workers. A National War Labor Board would mediate disputes. (28) Union membership increased during the war. (29) “Workers obtained various so-called fringe benefits, such as improved vacation and holiday provisions, shift differentials, and welfare and pension plans.” (28) World War II was a boon to union membership. (29)

Although the end of the war saw factories converting to peace time manufacturing, the immediate drop in production saw a drop in working hours and hence, a drop in “take-home pay.” (31) Employers resisted.

“Both labor and management wanted to the free to bargain across the conference table and, if necessary, to test their economic strength.” (31)

There were “42 large strikes . . . from VJ-day to the end of June 1946.” (36) They were successful in increasing wages. As a result the government ended price controls. (36)

By the Fall of 1946 industrial production increased and by the end of 1947 prices outpaced wages. (36)

1948 was a year of conflict between management and labor. Industry resisted wage increases which caused unions to fight back. (36-37)

In 1949 unions negotiated for pensions, and health and welfare benefits. (37)

Up to 1926 the occurs limited the rights of labor. (38)

“The Railway Labor Act of 1926 was a significant reversal of the trend of legal opposition to union activity.” It was supported by both management and labor and, “was based on the premise that peaceful labor relations can reattained through free collective bargaining between employers and unions.” (38)

“The Norris-LaGuardia Act of 1932 brought to an end what has often been called the era of government by injunction.” (38)

The Wagner Act of 1935 extended labor rights to all union “activities outside of the railroad industry. This law guaranteed to employees the right to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in concerted activities for the purpose of collective bargaining or other mutual aid or protection.” (Section 7, NLR) (39)

The Taft-Hartley Act of 1947 revised the Wagner Act in favor of industry. Taft-Hartley banned the closed shop and grievance procedures were restricted. (39)

President Truman vetoes the Taft-Hartley Act but Congress overrode the veto. (39)

A list of what were alleged to be unfair labor practices by unions were prohibited. These had been allowed under the Wagner Act. (39) Limitations “on strikes and lockouts. Secondary boycotts” became illegal. (39)

Injunctions against strikers for up to 80 days could be obtained. (39)

Labor viewed the “right to strike” a protection of the “United States Constitution which forbids involuntary servitude.” (39)

Nevertheless, the Fair Labor Standards Act set “minimum wage and hour standards for workers manufacturing goods for, or engaged in, interstate commerce and the Social Security Act . . . unemployment insurance.” (40)

By 1950 union membership skyrocketed to almost 15 million. Unions are  increasingly politically active by 1950. (48) Much of this political activity spurred by the implementation of the Taft-Hartley Act. (48)

A demonstration of labor’s conservative shift is its support and participation U.S. anti-communist activities.

American communist involvement in the labor movement began in 1920 under the Trade Union Education League with a policy of “boring from within established unions.” (50)

They did not succeed so, they “sought to establish industrial unions independent of the AFL.” (50)

This also failed so they worked within the new CIO. (50) Their allegiance to Soviet Russia, however, alienated both CIO “leadership and rank-and-file membership.” (50)

Following the passage of the Taft-Hartley Act in 1947 the CIO expelled Communists. Furthermore, they prohibited any member of aunty totalitarian organization to join the CIO. Full lions were expelled due to communist activities. (50) Those unions were the United Farm Equipment and Metal Workers, the United Electrical, Radio and machine Workers, the International Union of Mine, Mill and Smelter Workers, the Food, Tobacco, Agricultural and Allied Workers Union of America, the United Office and Professional Workers of America, and the United Public Workers of America, the American Communications Association, the International Fur and Leather Workers’ Union of the United States and Canada.” All were expelled in 1950. There was also the International Longshoremen’s and Warehouseman’s Union, the National Union of Marine Cooks and Stewards, and the International Fishermen and Allied workers Union of America.

The CIO “noted six periods during which the expelled unions followed Communist Policy after the mid-1930s.” The most significant support for the Soviet-Nazi Pact of 1939 and the switching their views after the German invasion of Russia on June 22, 1941. The Communists then “called for complete cooperation with the capitalist class only to reverse this position after the war with “increasing sharp criticism of American foreign policies and labor’s espousal of the Marshall Plan.” (51)

The AFL and CIO basically united in the 1950s in their opposition to communism. In addition, they became ardent supporters of defense industries. (52)