the evolution of american labor
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The Evolution of American Labor. Chapter Two. Major Milestones. Craft unions National unions American Federation of Labor (AFL) Congress of Industrial Organizations (CIO) Labor legislation Merger of AFL and CIO. Other Influences. Immigration Economic panics - PowerPoint PPT PresentationTRANSCRIPT
McGraw-Hill/Irwin Copyright ©2009 The McGraw-Hill Companies, All Rights Reserved.
The Evolution of American Labor
Chapter Two
2-2
Major Milestones
Craft unions National unions American Federation of Labor (AFL) Congress of Industrial Organizations (CIO) Labor legislation Merger of AFL and CIO
2-3
Other Influences
Immigration
Economic panics
The American labor movement has been predominantly results-oriented rather than ideologically-oriented
2-4
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
2-5
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.
2-6
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
2-7
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
2-8
Pre–Civil War Unions
Employers did not recognize legitimacy of unions
Courts punished unions Immigrant competition Collective efforts continued among
skilled/unskilled artisans
2-9
Pre–Civil War Unions
Organized workers contributed to campaigns
Unions started using strikes to gain wage increases
Membership swells followed by poor economic conditions
2-10
National Unions
National trade unions in 1850s Pre-Civil War: trade-related Post-Civil War: spanned industries
Major public policy focus - immigration
2-11
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
2-12
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
2-13
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
2-14
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
2-15
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
2-16
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
2-17
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
2-18
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
2-19
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
2-20
Transition – 1920s
Agricultural to industrial society – reduced skill requirements
Immigration quotas reduced influx of impoverished potential employees
Depression approaching
2-21
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
2-22
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
2-23
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
2-24
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
2-25
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
2-26
WWII
President Roosevelt establishes National War Labor Board NWLB attempted to maintain cost-of-living
wage increases Labor objected, wanting collective bargaining
ability
2-27
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
2-28
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
2-29
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
2-30
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
2-31
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
2-32
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.
2-33
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
2-34
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
2-35
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
2-36
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
2-37
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
2-39
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