BUS 372 week 1 discussion 1&2

BUS 372 week 1 discussion 1&2
Learning Objectives After completing this chapter, you should be able to:• Evaluate the roles of the three major players in labor relat ions. • Describe union formation and the reasons why unions are formed . • Compare and contrast the different types of unions and union str uctures and organizations. 1 Introduction to the Study of Labor Relations Mark Humphrey/Associated Press Introduction Managers of businesses deal with many varied employment issues. They encounter challenges and issues such as wage and hour disputes, discrimination claims, he alth care coverage, and employee rights. Whether the workplace is represented by a union adds further lay ers of responsibility. The presence of labor unions in the workforce relates to the field of study known as labor relations , and this textbook is meant to introduce you to some of these important concepts. A labor union consists of workers who have come together under state or fede ral law, are legally recognized, and can bargain with their employer regarding the terms and conditio ns of their employment. Labor relations is the study of unions, management, and their interrelationship. You will learn about the early history of labor in th e United States and why workers formed unions. Conditions in factories during the 1800s can seem shocki ng, but an understanding of this era will lay a foundation for your study of why later laws were enac ted. You will learn about the difference between organized labor in the private versus public sectors an d why this distinction is important. Although this may seem a subtle dividing line at first, it is in fac t a significant one that has wide­ranging repercussions, and your understanding of it will be essential to your role as a manager. The presence of a labor union will obligate you to comply with extensive laws and administrat ive procedures. Likewise, laws relating to employees, or wage and salary workers, even if they are not un ionized, are also significant. Unionized or not, your relationship with employees will require an in­depth knowledge of labor law and labor relations. An understanding of the culture of labor will add immeasurably to your ability to manage both ethically and legally. 1.1 Union Membership What is the likelihood that you will work in employment with a union presence? Although labor union membership has been diminishing at a consistent rate, un ions are still viable entities that wield political and economic power. Approximately 14.5 million work ers belonged to unions in 2013, or 11.3% of all workers (Bureau of Labor Statistics, 2013). Compare t hat statistic to the year 1983, in which 20% of all workers, or 17.7 million, were union members (Bureau of Labor Statistics, 2014b). Figure 1.1 shows the decline in both the number and percentage of union members bet ween 1983 and 2012. Figure 1.1: Union affiliation of employed wage and salary workers, annual wages, 1983–2012 The total number of workers affiliated with unions decreased from 17.7 million in 1983 to 14.4 million in 2012. U.S. Bureau of Labor Statistics. In 2012, unions represented 15.9 million wage and sala ry workers. This includes both union members (14.4 million) and workers who are not affiliated wi th any union, but whose jobs are covered by a union contract (1.6 million). In 2012, a total of 7.3 mil lion employees in the public sector belonged to a uni on, compared to 7 million union workers in the private se ctor. Public sector workers (35.9%) had a much higher union membership rate (35.9%) than private sect or ones (6.6%) (Bureau of Labor Statistics, 2013). Figure 1.2 shows the relative proportion of workers in private unions (at the top of the chart) and the much larger percentage of workers in governmenta l public unions (at the bottom of the chart) during the years 2011 and 2012. Within the public sector, local government workers—including heavily unionized fields such as teachers, police officers, and firefighters—had the highest union membership rate, at 41.7%. Examples of private sector industries with high unionization rates include transportation and utilities (20.6%) and construction (13.2%). Agriculture and related industri es have low unionization rates (1.4%), as do financial activities sectors (1.9%) (Bureau of Labor Statistics, 2013). Figure 1.2: Union membership rate of employed wage and salary workers, by industry, annual averages, 2011–2012 Union membership rates from 2011 to 2012 declined in public sector industries and in private sector industries. U.S. Bureau of Labor Statistics. Despite a decline in membership, the likelihood of en countering unionized employees is significant, and in some industries, probable. In 2012 more than 15.9 m illion workers were represented by a collective bargaining agreement (Mayer, 2014). What is a labor relations issue? On any given day, the news reflects a multitude of labor issues, all of which impact business. In one part of the country, a strike or work stoppage might be ending, with employees returning to their jobs. In another, 30,000 gr ocery store workers might authorize a walkout if an agreement is not met. In 2013 four Tennessee worker s filed a grievance with the National Labor Relations Board (NLRB) , the federal agency that oversees labor issues in priv ate industries, claiming that they were being coerced to join a union. Meanw hile, in 2013 a union in San Diego that offers sheet­ metal workers an apprenticeship with the prospect of e arning $70,000 upon graduation was overrun with applicants. As you can see, the issues are varied, far reachin g, and impactful. 1.2 The Three Main Players in Labor Relations Let us begin our discussion with an overview of the three major players in labor relations: (a) state and federal governments; (b) labor unions, which consist of employees; and (c) management or the employer. Each one will be discussed separately. The Government When we use the term government, we are referring to a wide range of entities. Reca ll that there are both state and federal governments. State governments are administered by the state executive branch , the part of the government that consists of the gove rnor and various state administrative agencies . The governor may issue executive orders, which are enforceable against state employees and state administrative agencies. If, for example, th e governor signed an executive order requiring all workers to be drug tested, this mandate would not apply to privat e workers but only to state workers. A state administrative agency is a governmental entity that oversees a particular area that requires expertise, such as labor, and makes laws by holding he arings. Each state has its own labor agency that governs labor issues and may issue opinions about labor di sputes. New York, for example, has the New York State Department of Labor, an agency that enfor ces state labor laws regarding the minimum wage, hours of work, conditions of work, unemployment insurance, and other issues. What laws are made by a state executive branch? The g overnor may propose a law, but it must be passed by the legislature—so it is untrue that the gove rnor makes laws, other than executive orders. Administrative agencies often hold hearings that are similar to courts. They are presided over by an administrative law judge who “makes laws” by ruling on controversies. It is acc urate to say that administrative agencies make laws in the form of opinions emanat ing from these hearings. The second branch of government that makes laws regard ing labor is the legislative branch . A legislature consists of representatives elected by the p eople for the purpose of passing state statutes (legislation) to govern the state. Each state may have a different name for its legislative branch, but they all perform the same function: They pass statutes or state laws. A labor law that a legislature might p ass would be one stating that children under age 14 may not be empl oyed in a full­time job. The third branch is the judicial branch, which consists of the courts in that state. Every state has its own court system, and in these courts the laws formulate d by the executive branch and the legislature may be challenged and reviewed. Although courts do n ot necessarily make laws, they write decisions that interpret the law. A court’s interpretation of the law stands as important language for what the law actually means. You will read court cases throughout th is textbook that interpret important statutes concerning workers and their rights. A court’s interpr etation of what a statute means may be much different from your own. The court’s interpretation of statutes is not a precise science—which can result in a hodgepodge of laws, depending on which state you study. All three of these entities taken together—the executi ve branch through the governor, the legislature, and the courts—make laws that form the building blocks of employees’ rights and duties. When speaking of state labor law, therefore, we mean not o ne law but composites of laws as represented by the aggregate of the three branches. A schematic of these branc hes is represented in Figure 1.3. Figure 1.3: Overview of how state law is made State labor law is a composite of laws, as represented by the aggregate of the legislative, executive, and judicial branches. The state governments and the federal government coex ist and function on two parallel planes. The states deal with some issues, and the federal branch deals with others. Discerning which issue is covered by which entity is often a complex task and beyond the scope of thi s textbook. The federal level has the same system that also consists of three branches: the executive, legislative, and judicial. The federal executive branch is headed by the president, who is empowered under th e U.S. Constitution with veto power over congressional legisl ation, as well as the power to recommend legislation. The president has powers regarding strikes, especially when they threaten national welfare. In this sense presidents “make laws” regarding labor. Som e presidents have used their political powers to greatly impact the power and reach of unions, whe reas others have used the same powers to diminish their strength. Under the executive branch are also federal administrative agencies. At the federal level, the NLRB is the most important administrative agency that oversees federal labor law and union activity for private industry. The NLRB holds hearings to resolve important labor disputes; these operate much like a court proceeding. The federal legislative branch is named Congress, and it passes statutes, some of which have to do with labor. Throughout this textbook, we will speak of fe deral laws with names like the National Labor Relations Act or the Labor Management Relations Act. These are just two examples of laws passed by Congress that impact unions. The third branch is the federal judicial system , or court system, which also plays a significant role i n labor relations. Courts hear controversies and issue writ ten opinions. These judicial opinions form a body of law called case law; for example, there are thousands of federal court d ecisions pertaining to labor issues. These decisions are instructive about what t he law is, so reading cases is an important part of understanding labor relations. Throughout this text you will read actual court decisions pertaining to topics in the chapters and see the courts’ reasoning on complex issue s. Another way in which courts play an essential role in labor rela tions is by issuing injunctions, which are orders by a court to do a specific act, or refrain fr om doing an act. For example, a court might issue an injunction against a striking union (a union that is refusing to work), ordering its workers to return to work; or an injunction might order management to re frain from conducting surveillance of striking workers. Taken together, federal legislation (statutes), federal court decisions (judicial), and presidential power and administrative agencies (execut ive) form a body of federal labor relations law. Figure 1.4 illustrates the federal sources of labor law. Figure 1.4: Federal sources of labor law Taken together, the legislative, executive, and jud icial branches form a body of federal labor relations law. In summary, the role of the government in labor rela tions takes place via the courts, where judges make decisions about labor controversies. Administrative age ncies such as the NLRB oversee the labor process, and the legislative branch passes statutes that ov ersee labor, such as the National Labor Relations Act. Labor Unions The next player in the field of labor relations is th e union itself. A labor union is a collective body of workers who usually join together to achieve higher w ages and certain benefits. Once a labor union is formed at a business or within an industry, management is obligated to sit down and negotiate an agreement with that union’s representatives; this agree ment is called a collective bargaining agreement (CBA) . The process of labor meeting with management to neg otiate is termed collective bargaining. The collective bargaining agreement is a contract that sets out in detail the understanding between labor and management of the terms and conditions of employm ent, such as wages, vacations, and hours worked per week. By forcing management to come to th e bargaining table and hear labor’s concerns and address each one, the power differential between labo r and management is diminished. Without a labor union, this right to collectively bargain would not exist. In addition to compelling a collective bargaining agreement, another advantage of a labor union is its ability to strike, thus shutting down an employer’s abi lity to produce its product. This economic threat may force an employer to bargain and reach an agree ment with the union so that the workers will return to their jobs and production can resume. The t hreat of a strike may compel management to concede to better conditions for workers. Thus, the co llective nature of a union—the idea that there is strength in numbers—works to improve working conditions. Without a union, workers would have a difficult time organizing or presenting a united front. Unions also hold important economic and political sway outsi de the confines of a business. Consider that more than 14.5 million workers belong to a union, an d each worker pays union dues. Unions therefore have millions of dollars to spend. One way they spend t hat money is by supporting the election of political candidates who are pro­labor. Unions’ influ ence on elections may have a significant ripple effect. If a pro­labor president is elected, he or she will have the authority to appoint judges who overse e labor disputes and select members of the NLRB, which sets the countr y’s labor policy. With 14.5 million members, unions are also a powerful political force. Assuming that union members vote the same way, the size of their organizations alo ne could affect the outcome of an election. The heads of labor organizations are often powerful and i nfluential people who are skilled at representing the needs of the workers and shaping the American people’s view o f labor. Historically, labor unions first formed when employees became tired of suffering brutal working conditions that featured few rules governing the numb er of hours worked, safety of conditions, or fair pay. Although initial organizing improved some aspect s of work, unions continued to grow because employees were still paid poorly and remained unprot ected in other areas, such as safety, medical coverage for injuries, health benefits, or retiremen t funds. By collectively organizing, employees realiz ed they had the power to improve their working lives. Union power and activities can also negatively affec t workers, however. The coal mining industry provides a dramatic example of this. In what is refer red to as the Hocking Valley Coal Miners’ Strike of 1874, workers went on strike when the company slashed t heir wages. Many of the miners and their families lived in company­owned housing. When they we nt on strike, the company evicted the miners’ wives and children from their homes and hired armed g uards to harass them. The workers had no place to live and created tent cities for their families. Th e armed guards went on a moving train through one of the encampments, firing rifles at the workers and thei r families. The strikers retaliated, killing 16 guards in the process. The violence was not quelled until the army was called in to end the dispute (Cotkin, 1978). Such tragedies are part of America’s labor history. Th is example demonstrates that although labor unions’ goal is to improve the lives of workers, its pur suit has also been marked by incidents of violence that have left a lasting impression on the collective conscience of the American people. For more information on the Hocking Valley Coal Miners’ Strik e, click here (http://www.ohiohistorycentral.org/w/Great_Hocking_Valley_Coal_Strike_of_1884­1885?rec=501) . Employees The field of labor relations is concerned with unions, which are formed by employees. Understanding who is and is not an employee will be essential to your understandin g of who can form a union. Monkey Business Images/Thinkstock A roofer is an example of an independent contractor, someone who is hired for a specific job, paid for completing that job, and subject to his or her own control rather than an employer’s. An employee is a worker hired by the employer to pe rform certain tasks under the employer’s direct supervision. Generally, employees are characterized by the following: Their employer dictates what time they will come to work, exactly what job they will do when they get there, where the work will take place, and how much the employee will be paid. In s hort, the employer controls how, when, and where the employee works. Independent Contractors Independent contractors , on the other hand, are not employees because they are not under the control of a n employer. Instead, they work at their own discretion. For instance, if you needed a new roof for your home, yo u could hire a building contractor. That contractor w ould arrive at your home at a time he chose, use materials he selected, install the materials in a manner he thought best, and complete the job at his own pace in his own way. Unlike an employee, independent contractors are usually hired for one job, paid once instead of on a continuing basis, and subject to their own control, no t the employer’s. As a result, the homeowner in this example would not be deemed an employer, and the roofer would not be an employee but instead an independent contractor. There are many grey areas to independent contractors, however, and thus ongoing debate about whether certain types of workers are in fact employees or independent contractors. The distinction is not always clear, but t he ramifications of the classification are significant. One reason that employers classify workers as independent contractors is so the employer does not have to pay for that worker’s Social Security or hea lth benefits. Classifying a worker as an independent contractor also means the worker cannot be part of the union. In any event both the courts and the NLRB vacillate about whether a group of workers are in fact employees. Would you think, for example, that gradua te teaching assistants are employees and thus may form a union? In the 2004 decision Brown University, the NLRB ruled that “graduate student assistants who perform services at a university in connection with their stu dies are not statutory employees within the meaning of Section 2(3) of the National Labor R elations Act, because they have a primarily educational, not economic relationship with their u niversity” (Brown University v. NLRB , 2004). As a result, the teaching assistants were not allowed to unio nize. Thus, the classification of a worker as an employee and the ability to discern which workers wil l be classified as employees and who will not is essential in understanding who may and may not unioniz e. To read the full Brown University v. NLRB 2004 decision, click here (http://mynlrb.nlrb.gov/link/document.aspx/09031d4 5800076ac) . Management and Employers The third major player in labor relations is managem ent. Management may consist of salaried workers, as opposed to those paid on an hourly basis. Salaried wo rkers are often referred to as exempt, which means they are exempt from the Fair Labor Standards Act, whereas hourly employees are called nonexempt because they are under the purview of the act. Management can range from the legions of supervisors a t a large corporation to a two­person business that consists of the owner (management) and the worker . In the context of labor relations, it is important to identify who is a supervisor because a sign ificant legal line is drawn between management and labor (workers). If a particular business is governed by the National La bor Relations Act, one part of the act dictates what management is obligated to do and another relates to unionize d workers. Managers sit on one side of the table when the parties negotiate a contract, and the workers or their union representatives sit across from them. Thus, in businesses in which workers are represented by a labor organization, the dichotomy between management and workers has legal, social, political, e conomic, and cultural ramifications. Management has a different perspective and group of n eeds that are often diametrically opposite to that of labor. The pressures on managers include producing a quality product or service, competing in a global marketplace, keeping costs to a minimum, and r etaining satisfied customers. Management is concerned with the bottom line: If the company is no t making money then it will go out of business. Therefore, cost is the utmost concern. Labor, on the o ther hand, wants to earn a fair wage and work in a safe environment. But what is a fair wage? What is a safe environm ent? How much will it cost? There are pressures on every sector that complicate seem ingly simple issues. For example, management might want to cut costs, which might mean decreasing h ealth benefits for employees. Or the company may wish to move to a different section of the country where costs are lower, but that means all workers in the current facility will lose their jobs. There i s a natural tension between the group that wants to compete at the cheapest price and the group that wan ts to work in an environment that provides basic necessities. The resulting tension may lead to dissatisfaction on the part of both management and employees. Employees can feel especially helpless to change their working conditions or discounted if they bring problems to management’s attention. Employees who feel unheard and powerless to change their work environment often find unionizing empowering, becau se it forces management to listen to concerns and make necessary changes. There is a direct correlation b etween discontent and unionization. On the other hand, having management listen to and work wit h employees so they are part of the decision­ making process helps diminish such discontent. If a union is formed in a particular business, the manag er must learn the rules and regulations governing labor relations very quickly. Unionization presents va rious legal requirements and lists of do’s and don’ts that management must be aware of, comply with, and educate its staff about or face serious consequences that include fines and expensive legal costs. Because the stakes are so high, there is a high demand f or people trained in the study of labor relations. Employment opportunities in this area include union o rganizers, managers with labor experience, negotiators, mediators, neutrals, arbitrators, and labo r attorneys, as well as judges, administrative hearing officers, and support staff. Watch This To view a video concerning the National Football League’s collective bargaining agreement, visit 1.3 Introduction to Unionization At the heart of labor relations is the concept that employees have much more power when they join together and collectively present concerns to managem ent through a union. A union is typically an organization whose function is to protect the rights o f employees, whether in terms of wages, hours, conditions of employment, grievances, disputes, or any other fu nction of the work environment. We will learn from the history of unions discussed late r in this text that when employees band together and make demands of their employers, their work condi tions often change for the better. Wages increase, workplaces become safer, and employee grieva nces are heard and resolved. According to a 2003 Economic Policy Institute study, some of the adva ntages enjoyed by unionized workers include a 28.2% greater chance of getting health insurance and a 53.9% better chance of having a pension. The decline of unions since the 1950s, on the other hand, has resulted in significant wage decreases as well as wage inequality (Mishel, 2012). There is a downside to organized labor, however. Economists are divided about whether unions drive up the price of goods by demanding pay that is not representati ve of supply and demand. As a result, unions are often viewed as inflating the cost of living. In addition, because union members can go on strike and shut down a business, they can have serious and deleterio us effects on the national economy. Furthermore, in some of the largest unions, officers ha ve been convicted of fraud and corruption, giving unions a reputation for illegal activities. Political leadership in the United States has also run the gamut from being proactive about labor—such as President Franklin D. Roosevelt—to being antiunion, as some considered President George W. Bush. In short, the American people and their leaders are g enerally conflicted about whether unions are a positive force; this conflict impacts every aspect of the fiel d of labor relations. Collective Bargaining Collective bargaining is the process whereby the union represents employees i n formulating a contract with management. Before that can happen, however, t here are a number of steps and conditions to be fulfilled. First, the employees must belong to an identifiable group of workers called a bargaining unit. A bargaining unit is a discrete group of workers withi n a plant, firm, occupation, or industry that, on the basis of commonality of interest or production process, is determined by the NLRB to be the appropriate unit for collective bargaining purposes. For example, workers who have a commonality of interest, such as working in the same plant, or workers engaged in th e same industry like building cars could be a bargaining unit. If the bargaining unit is recognize d by the NLRB, then the unit is the only one that ca n negotiate with management. The end product of colle ctive bargaining is a collective bargaining agreement. You may wonder what this looks like. The fo llowing video shows you an example of the agreement that was hammered out by the National Football leag ue to cover the years 2006 to 2012. This is important because one of the main reasons to for m a union is to force management to bargain with the uni on over the terms and conditions of employment. The union is the e xclusive representative for all the employees within the barga ining unit. Exclusive representation means that management cannot enter into separate agreements with different workers. Once workers are officially recognized as a union, management is m andated to https://www.youtube.com/watch? v=_pKPLIt3ZO0 (https://www.youtube.com/watch? v=_pKPLIt3ZO0) deal with that union and bargain in good faith, which means management and workers must come to the bargaining ta ble with the intent to enter into a final agreement tha t will spell out the terms and conditions of employment. Under the National Labor Relations Act, the federal law that governs unions, there are certain employees who may no t form a bargaining unit. These include supervisors, independent contractors, managers, and agr icultural workers, who are all deemed exempt from the act. When the union negotiates a collective bargaining ag reement with management, it is essentially a contract that governs the working conditions. To negotia te the CBA, the union may send representatives, or the workers themselves may elect other workers to r epresent them at the bargaining table. Once an agreement is written, it is presented to the employees for a vote; a majority vote means the agreement is ratified , or approved. If ratified, both management and the union must operate under the CBA for the length of that agreement or they will be in violation of it. Note that when a majority of workers vote for the ag reement, the minority—even if it is 49% of the workers—is still governed by the terms of the contract, even if they do not agree with the wages, hours, or conditions of employment that the union and manag ement agreed on. Though all of the terms negotiated by the union representative might not be satisfactory to each individual, by being employed at that particular place they concede their power to the unio n and its representatives. Reasons Why Workers Unionize There are many theories for why employees tend to unionize. The preceding material emphasized the concept that there is strength in numbers. But if the work environment was satisfying to all workers, would there be any unionization? Dissatisfaction with working conditions combined with management’s refusal to deal with complaints is one of the most powe rful and motivating reasons workers feel the need to unionize (Manktelow, n.d.). The next chapter will go into detail about the earl y history of labor unions in America. But in general, in the 1800s there were no rules or regulations governing the workplace. There were no limitations on how many hours someone could work, nor were there rul es or regulations about safety conditions. In one example, workers in factories that caught fire d ied because management had nailed the doors and windows shut, which made it impossible for them to escap e. You will see a correlation between unionization and the mistreatment of workers by employers. Even with the advent of labor laws to protect worker s, there remained many reasons for them to unionize. Many employers ignore the complaints or gri evances of their employees, treat workers disrespectfully, allow unsafe working conditions, and p ay unfair wages. Employee perception that management favors one employee over another in the a pplication of rules is cited as one of the top reasons for work dissatisfaction leading to unionization (Mitc hell & Simpson, 2009). Employees feel motivated to unionize when they perce ive a lack of job security and feel that a union would ensure both their livelihood and foster a more respectful and responsive workplace. In addition, the perception that a union will effectively correc t unfairness in the workplace is also a key motivator (Deckop, 2006). As mentioned previously, another bene fit of unionization is an increased national political presence. Unions give workers a strong voice on issues of national concern such as health care and education. They also contribute large sums of money to political candidates who take into consideration labor’s view when proposing or opposing legislati on. Employees who are union members are often proud to be long to an organization that has a great deal of power. Employees report feeling positive on a personal level about belonging to a group as well as about the benefits a union can bestow by virtue of its size and organiz ation. In the News: Casino Workers Vote to Join Union Based on a newspaper article by Brown, M. Graton Casino Worker s Vote to Join Union (July 22, 2014), http://www.pressdemocrat.com/news/2420738­181/graton­casino­w orkers­vote­to (http://www.pressdemocrat.com/news/2420738­181/graton­casino­workers­vote­to) Although union membership is declining overall, some sectors are experiencing a growth spurt. For example, casino workers constitute a growing unionized for ce. Unite Here represents 100,000 workers at gambling sites in both the United States and Ca nada, including prestigious resorts such as those owned by MGM Resorts, Caesars Entertainment, Wyn n Resorts, and Boyd Gaming. The union is partnered with the Teamsters and Internati onal Union of Operating Engineers in an effort to coordinate organizing and bargaini ng in the gaming industry. In California alone, about half of all casino workers are union ized. Employees recently organized at the Graton Resort & Casino in Rohnert Park, California. The o wners of the casino, the Federated Indians of Graton Rancheria, supported unionizati on. The tribal chair himself pressed for casino workers’ ability to unionize, stating that he support ed the right of workers to have good jobs with good benefits. The workers cited two reasons for wanting union representation. First, they wanted job security, which they felt a collective bargaining agreement would off er; and second, they had concerns about seeing coworkers fired without just cause (some reported ca ses in which workers were allegedly fired for taking too many sick days). Discussion Questions 1. Why do you think unions are losing members? Do you think one fac tor might be the type of industry that the union is concerned with organizing? Do you think that organizing in some types of industries is easier than others? Why or why not? 2. What impact do you think management support of unionizatio n has on the union’s success in organizing? Do you think the tribal chair’s support of t he union helped with the ultimate decision to unionize? Explain your reasoning. 3. These workers listed two reasons to form a union. Can you think of other reasons that would be considered essential to workers that are not part of this l ist? Management Beliefs About Unionization Watch This To view a video giving an example of union busting at Walmart, click here (https://www.youtube.com/watch? v=2OjHWBTyfY0&index=3&list=PLsANBz8CIhEC­ 4mo4aO0aRZYaxu43VDc2) When Volkswagen considered putting in a plant in Chattanooga, Tennessee, local politicians were so adamantly opposed to unions coming into the plant that they publicly went on the record and opposed the American Federation of Labor and Congress of Industrial Organizations. This brief video (https://www.youtube.com/watch? v=8uE5SonXJGA) illustrates this hostile attitude. Management often views unionization negatively, if f or no other reason than the loss of flexibility that results from a collective bargaining agreement (Verma , 2005). There is no doubt that once a business undergoes unionization, the entire tenor of the busin ess changes. As noted previously, management must enter into a collective bargaining agreement wi th the bargaining unit, which spells out the terms and conditions of employment. The employer must abide by detailed and complex laws and regulations such as the National Labor Relations Act. When compliance with the law or bargaining is requir ed, businesses must immediately consider the costs. A business th at bargains with a union must hire a specialized labor ne gotiator familiar with bargaining agreements, usually a highly skilled attorney. The cost for such services will run thousands o f dollars per day . In addition to the expense involved, once a union is in place all actions are thereafter governed by the CBA. This mean s a loss of flexibility, since employers must stay within the agree ment’s confines. Employers must put a grievance procedure int o place and provide staff to hear grievances, which is another expense. If the workers go on strike, the business will lose producti on and incur the security costs also associated with a strike. Many employers threatened with unionization react wi th a campaign to thwart formation: For example, Walmart chose to shut one of its stores in Canada after it unionized (Un ited Food and Commercial Workers, 2005). An entire industry exi sts of consultants whose job it is to persuade employees not to vote for unionization. The video feature offers some interestin g information about opposing labor unions, and an examp le of a website that promotes one company’s message to keep out unions appears in Figure 1.5. Figure 1.5: Labor Relations Institute tips to prevent u nions The Labor Relations Institute, Inc. is a consulting firm that helps organizations maintain a union­free workplace. Reprinted with permission from Labor Relations Institute. Mary Evans/Everett Collection Craft unions used apprenticeships to train workers in a specific skill. Watch This To view a video on the differences between craft and industrial unions, visit https://www.youtube.com/watch? v=ZbUblVPW5Ig (https://www.youtube.com/watch? v=ZbUblVPW5Ig) Figure 1.6: Basic structure of local and national unions Local unions are formed on a geographic basis, and national 1.4 Types of Unions and Union Structures Unions may be classified in numerous ways. This section ex plains some of the more common types of unions and their definitions. Craft Versus Industrial Unions A craft union , sometimes referred to as a horizontal or trade union, organizes workers along occupational lin es. These unions originated from the guilds in medieval Europe when workers started as an apprentice and learned a trade. As discussed in more depth in the next chapter, the earliest unions in the United States were craft unions. Historically, they trained workers in a specific skill through apprenticeships. These workers took great pride in their particular craft and, bel ieving they should be compensated fairly for their talents, joined together with other similarly trained craftspe ople to represent their interest in obtaining higher wage s and safer working conditions. One of the earliest examples of an American craft union was a union of shoemakers that formed in Philadelphia in 1792. Industrial unions , or vertical unions, on the other hand, are formed along industry lines, meaning a particular type of business. For example, employees in the automobile industry may be members of the United Automobile Workers (UAW) , a union open to workers in several industries, includ ing the auto industry. UAW members in the auto industry might be cl eaners, bolt makers, or assemblers, but what they all share in common is that they work in the same type of indust ry: auto making. Historians generally consider craft unions as most viable u ntil the 1930s. Because they limited their membership to skilled workers only, they experienced a steady decrease in membership until they changed their membership standards to include non skilled workers in the 1940s. Industrial unions, on the other h and, increased membership as they admitted members who were both skilled and unskilled. Of the original 133 craft unions in the United States, only 28 were left by 1915, and even t hose that remained reached out to all types of workers and were not pu rely craft unions anymore (Tomlins, 1985). Public Versus Private Unions Unions may also be categorized as either public or pri vate. A public union is one whose members work for a state or federal governmenta l entity. For example, nurses employed at a state hospita l are state employees and therefore public employees; if they uni onize, the union is public. unions are overarching organizations that bring together and represent the different local unions. The American Federation of State, County and Municipal Employees is the largest public union in the United States toda y. Public unions are growing in strength and size and pla y a formidable role in national politics, as you will see in later chapters. Private unions are those that form in a business that is not governmental. If the employees of a major steel produ cer decide to unionize, for example, the union is private because st eel production is undertaken by private industry and not a governmental entity . The distinction between public and private unions has many important ramifications that are essential to understan d. Private unions are governed by the National Labor Relations Act and the NLRB. Public unions are governed by individual state laws or by federal law, but public unions are not governed by t he National Labor Relations Act, nor do they have disputes heard before the NLRB. Local Versus National Unions One way to understand how unions are organized is to b egin at the local level. The locals are usually formed on a geographic basis. For example, electrical workers in a city or town may fo rm a local chapter of the International Brotherhood of Electrical Work ers for their area. The local must receive recognition from the national organization, which is usually granted in a charter. A charter is an official document issued by the national union that confers powers on the local to organize and represent itself as affiliated with the n ational organization. A national union, on the other hand, is the overarching organization that brings together all of the locals. This entity represents the local chapters, gives them an identity w ith which people can readily associate, and lobbies governments f or better working conditions. Rank­and­file members, or the members of a union (not including its leadership), have the most contact with their local. There they can obtain advice about benefits, look fo r a job, file a grievance (or at least receive support if they have a grievance), and receive information about the happenings of the state and national organi zation. The locals elect representatives to attend the national organization meetings, which hold a nat ional convention at least every five years. The representatives who attend the national convention el ect the union’s national officers. The national organization often deals with political influencing, such as lobbying Congress on issues relevant to labor, negotiating national contracts for its members, and setting up e ducational programs. Figure 1.6 shows the basic structure of local and national unions. Fifty­eight national unions have joined together and affiliated themselves with the American Federation of Labor and Congress of Industrial Organiz ations (AFL­CIO). The AFL­CIO is not a union; instead, it is a federation that represents the national unions on legislation, education, civil rights, and health issues, to name a few (see Figure 1.7). Watch This To watch an overview of Change to Win, visit https://www.youtube.com /watch? v=vKREFu46Gwo (https://www.youtube.com/watch? v=vKREFu46Gwo) Figure 1.7: Examples of unions in the AFL­CIO Fifty­eight national unions are affiliated with the AFL­CIO. The other major umbrella organization is the Change to Win Federation, sometimes referred to as a coalition. This organization began in 2005 when the Service Employees International Union (with 1.7 million members) and the International Brotherhood o f Teamsters (with 1.3 million) both withdrew from the AFL­CIO over internal political matters, tak ing with them more than $20 million in annual dues. Today this organization consists of both of those unions plus the Uni ted Farmworkers Union. Change to Win is overseen by a leadership council consi sting of the officers of the three affiliated labor organizat ions and three at­large members. The council meets four times per yea r to discuss issues and carry out the purpose of the alliance, which is to better the lives of its workers and to engage in or ganizing workers. The organization also has a convention to whi ch each of the three affiliates send representatives (Change to Win, 2 014). The AFL­CIO is considered the stronger and more politi cally savvy organization, whereas Change to Win is considered more focused on grassroots efforts that include directly orga nizing workers. Speculation that the two coalitions are discussing a merger occurs sporadically, b ut as of 2014, this had not occurred (Watts, 2012). Nonunion Organizations Workers sometimes form alliances with one another that are not formal or approved by the NLRB or a governmental organization. Although the alliance ma y strive for better working conditions, increased salaries, or safety improvements—and therefore appear to be a union in terms of its organization and tactics—it is not considered a labor organization and t herefore does not have the right to collectively bargain, because it did not form in accordance with a state or federal law. These organizations or alliances are called nonunion organizations . Watch This To view a video about Hispanics United, visit https://www.youtube.com/watch? v=XKa0aPUm_lo (https://www.youtube.com/watch? v=XKa0aPUm_lo) Nonunion organizations have many positive attributes and can accomplish much good for their employees, just as unions can. However, they are limite d in how they represent workers because they may not enter into collective bargaining agreements. A collective bargaining agreement is at the heart of a labor organization’s power because it forces management to n egotiate with its workers to establish the terms and conditions of their employment. Conversely, if a group does not have collective bargaining powers, then it cannot force such negotiations; it onl y has the power of persuasion, picketing, bad publicity, and the like to persuade an employer to agree to its d emands. Despite this, workers form alliances for many reasons, be they one­time disputes with management or more systemic problems with pay or conditions of employ ment. One example of a nonunion organization is OUR Walmart (Organization United for Respect at Walmart; see http://forrespect.org (http://forrespect.org) ), a group of employees that protest their pay and hours at Walmart stores. Their protests have garnered national attention and raised p ublicity about poor pay and Walmart’s failure to hire workers full time. Despite the fact that nonunion organizations lack col lective bargaining rights, they are not completely vulnerable. The National Labor Relations Act protect s concerted activity , which is the right of workers to act together to try to improve their pay and wor king conditions, with or without a union (National Labor Relations Act, 2006). For example, Hispanics United of Buffalo is an organiz ation that consists of employees who provide social services to low ­income clients. These workers were fired after they complaine d about their working conditions, workloads, and staffing thro ugh posts on Facebook. Although they were not represented by a union, the NLRB stepped in because talking to one another at wor k, complaining to each other about their working condi tions, and posting comments constitutes “protected, concerted activity” ( Hispanics United of Buffalo , 2012). Or consider the situation at an Omaha, Nebraska, meat proc essing and packaging plant, where a group of employees walked off the production line in protest o ver their working conditions. The workers were not members of a union. They met with the plant mana ger to express their concerns. One month later the manager learned that another walkout was planne d. He called each of the workers into his office and fired them. The NLRB held that the walkout was “conc erted protected activity” (Greater Omaha Packing Co., Inc. and Heartland Workers Center , 2014) and ordered that the employees be reinstated to their jobs with full back pay and benefits. What implications does this have for you as a manager? If a union exists in your workplace, you know that this imposes particular responsibilities on you; but you need to be aware that workers acting together who are not unionized also impose legal obligations. Summary & Resources Summary of Chapter Concepts • The study of labor relations encompasses numerous concepts, including the distinction between private and public unions, learning about the complication s that arise from unionization, and the need to be familiar with this area of study. • Labor law is based on laws from a number of sources: the state and fed eral executive branches, the state and federal legislative branches, and the state and fed eral judiciary. • There are three main players in labor relations: the governme nt, which consists of the legislature, executive branch, and judiciary; the labor uni on, which consists of employees; and management, which consists of employers or owners. • Unionization is based on the concept that employees have more p ower when they join collectively to present concerns. Unionization also has many d etractors who believe that unions cause inflated wages, violence, and corruption. • Collective bargaining is the process whereby management meet s with union representatives to make an agreement that will thereafter control their relati onship. • Workers unionize for many reasons, including better wages, hou rs, conditions of employment, safety improvements, and the need to be respected and heard by ma nagement. • Employers tend to dislike unions because of increased paperwork , inflated prices and wages, increased operating expenses, and imposed restraints that decre ase the ability to be flexible. • Unions are generally divided into public or private, and cra ft (horizontal) or industrial (vertical). • Union structure typically features locals, or regional union s, and national unions. Fifty­eight national unions are affiliated as the AFL­CIO, the largest lab or organization in the United States. • Nonunion organizations are those affiliations that have not f ormed under a federal or state law but still include employees who work toward bettering their co nditions of employment; if the workers act together to improve their working conditions, ev en if they are not unionized, such concerted activity is covered by the National Labor Relation s Act. Chapter 1 Review Quiz Chapter 1 Flashcards Choose a Study Mode  Key Terms administrative agency A unit in the government that oversees a particular area of expertise and makes laws by holding hearings. administrative law judge The person who presides over hearings in administrative agencie s. American Federation of Labor and Congress of Industrial Organiz ations (AFL­CIO) The largest coalition of labor unions in the United States, consisting of 58 national unions and about 12.5 million members. American Federation of State, County and Municipal Employees The largest public union in the United States. bargaining unit A discrete group of workers within a plant, firm, occupation, o r industry that, on the basis of commonality of interest or production process, is determined by the National Labor Relations Board to be the appropriate unit for collective bargaining purpose s. case law When a judge renders a decision and writes an opinion, that opini on is called case law. Change to Win Federation Sometimes called the Change to Win Coalition, this is the second largest coalition of labor unions in the United States, after the AFL­CIO. charter An official document issued by the national union; it confers po wers on the local chapter to organize and represent itself as affiliated with the national organizat ion. collective bargaining The process whereby a union represents employees in formulating a contract with management. collective bargaining agreement (CBA) A contract between labor and management that spells out the terms and conditions of employment. concerted activity The right of workers to act together to try to improve their pay and working conditions, with or without a union. Congress The federal legislative branch of government that passes laws cal led federal statutes. craft unions A type of union that organizes workers along occupational lines; also called a horizontal or trade union. employee A worker hired by the employer to perform certain tasks under th e direct supervision of the employer. executive branch One of the three branches of a state or federal government, head ed by a governor at the state level and the president at the federal. executive orders An order issued by a governor or president that applies to state or f ederal workers and is considered to have the force of law. exempt employees Employees who are not paid on an hourly basis but instead are paid a salary and therefore are exempt from the National Labor Relations Act. federal administrative agencies Federal governmental entities that oversee specific speciali zed areas. In labor the National Labor Relations Board is an example. federal executive branch The president and the federal administrative agencies. federal judicial system The court system in the federal government; federal courts. Hocking Valley Coal Miners’ Strike A famous 1874 U.S. strike that is an example of striker violence. independent contractor A worker who is not an employee but who is hired for one job, is not supervised by the person hiring, and who manages how he or she does the job. industrial unions A type of union in which the workers are engaged in the perform ance of a particular service or the production of a particular commodity; also called a vertical union. injunction An order from either a state or federal court that commands the d efendant to do something or refrain from doing something. For example, an injunction could order a union to go back to work (do something) or to stop striking (refrain from doing something). judicial branch That branch of either state or federal government that compr ises the courts. labor relations The study of workers, unions, and their interplay with manageme nt and the government. labor union A collective body of workers who join together, usually for higher wages and certain benefits on which they agree. legislative branch That branch of either state or federal government consisting o f legislative bodies that make laws called statutes. At the federal level, this is Congress. locals Local unions; usually formed along geographic lines, with othe r local unions these form the larger national union. National Labor Relations Act Also called the Wagner Act, this 1935 federal law guaranteed em ployees the right to self­organize; to form, join, or assist labor organizations; to bargain collectiv ely through representatives of their own choosing; and to engage in concerted activities for the purpose of collective bargaining (a strike) or other mutual aid and protection. National Labor Relations Board (NLRB) The federal administrative agency that oversees labor issues in t he United States for private industry. national union A union that consists of smaller regional local unions and represents workers across the United States. nonexempt employees Employees who are paid on an hourly basis, including payment for overtime, and are under the purview of the National Labor Relations Act. nonunion organizations Affiliations of workers who are united in an effort to improve their working conditions but are not formed in accordance with federal or state law. private unions A labor organization formed by employees who work for a nongov ernmental entity. public unions A labor organization formed by employees who work for a governmental entity. ratified Affirmed or approved by a majority vote. Service Employees International Union A public union in the United States. state administrative agencies State governmental entities that oversee specific specialized areas. In labor, for example, each state has an administrative agency that deals with labor issues. state executive branch The governor’s office. state statutes Laws passed by a state legislature. statutes Laws passed by either a state or federal legislature. strike A work stoppage. union representative The person elected by a union to represent the workers in collect ive bargaining with management. United Automobile Workers (UAW) A large union representing workers in North America. Critical Thinking Questions 1. Are unions still relevant? Write an essay taking either the pro or con side to this issue and argue your side persuasively. 2. What are some reasons management opposes unionization? Do yo u agree or disagree with these reasons? Why or why not? 3. What are some of the social, political, and economic reasons th at unions are losing membership—and therefore power—in the United States? Research Projects 1. Find a recent newspaper article about a labor relations issue. Describe the issue, discuss whether it has been resolved, and explain what its current status i s. 2. Find the websites for a public union and a private union. Compare and contrast the material you find concerning the objectives of each of the unions and how the y pre­sent themselves.
BUS 372 week 1 discussion 1&2
Learning Objectives After completing this chapter, you should be able to:• Describe the atmosphere surrounding union opposition and resu lting court cases. • Discuss each of the early labor unions, major strikes, and key pla yers in labor relations. • Relate the growth of industry to major strikes in the steel and te xtile industries at the turn of the 20th century. 2 An Overview of Labor History Mary Evans/Everett Collection Introduction The U.S. economy was formed around farms and small towns. If you were to view the United States in the early 1800s, you would see country roads, large fa rms, and towns erected at crossroads, serving the needs of farmers. Although there were factories, these were rare and usually located only in the larger cities. Early manufacturing took place in small shops r un by craftsmen who were experts in one trade, such as barrel making or stitchery. Thus, America’s earl y industry was centered on individual trades and skilled workers. These workers were called master craftsmen. Not only were they proficient at making specific products, they were also multitalented businessmen. Consi der, for example, Bostonian Paul Revere, who trained in the art of silversmithing and then became a shop owner, a teacher to his apprentices, a capitalist, an employer, and a highly skilled artisan. Master craftsmen sat side­by­side at the bench with thei r workers, together making the products of the shop, be it boots, silverware, horse bridles, or copper bowls. At first, slaves or indentured servants made up the group of workers, but as slavery decreased in th e Northeast and indentured servants completed their terms, craftsmen searched for other types of help . Soon a strata of workers developed that became known as apprentices or journeymen . These were the men who worked in the trades but wou ld never be shop owners unless they started their own business. The work environment in these shops was intimate. The b oss knew each worker—his strengths and weaknesses, and certainly his personal life. Problems co uld be addressed directly and quickly if the master craftsman chose, which led the workplace to hav e a give­and­take quality. Workers felt somewhat empowered by the fact that management was pr esent, understood the conditions of work, and could be responsive to issues that arose. This work environment also featured two distinct tiers: owners and laborers. Lines were clearly drawn regarding the rights of the owner to make fundamenta l decisions about the work environment while labor remained powerless, except about whether to lea ve the job and seek other employment. Work for laborers was a “take it or leave it” environment, and for those unwilling or unable to secure work elsewhere, the shop, its rules, and culture were nonnegotiable. As the 19th century progressed, a notable change occur red that essentially put an end to this way of life. The United States underwent a great industrial boom, commonly referred to as the Industrial Revolution (1820–1840). The Industrial Revolution made small workshops obso lete and unprofitable. A confluence of factors contributed to this new reali ty. Workers were plentiful and relatively cheap to employ; America had bountiful natural resources; trad esmen from Europe came to the United States with skills, inventions, and creativity; and as the pop ulation grew, the demand for goods increased tremendously. Small shops could no longer keep up with demand, and when they did, were too slow and costly. The 1800s also saw the rise of expanding transpor tation systems that made the export of goods to Europe possible and highly profitable. Additionally , transportation within the United States improved, which fostered domestic trade. Factories, too, began t o expand; as a result, they employed a completely different type of worker than an apprentice or journeyman. With the advent of factories, a new class of worker em erged: the unskilled worker, who could operate machinery or do repetitive tasks that required littl e skill. One of the earliest such industries was spinning yarn, which by 1860 involved more than 1,70 0 mills with 6,400 spindles and 16,000 looms; the industry had an annual output of $90 million and employed more than 60,000 laborers (Foner, 1998). Immigrants streamed into the United States during this time, providing inexpensive and often unskilled labor. As the factories grew, more workers were needed , and women and children soon became part of the workforce. As large factories replaced farms and small shops run by artisans with thousands of workers, work became more impersonal; the lines between owners and workers grew even more distinct than before. Gone were the days of sitting at a bench as an appren tice and learning a trade from a master craftsman. With each of these changes, workers found that the giv e­and­take quality of the small shops was gone, and they had no relationship with the owner of the business. 2.1 Initial View of Unions as Illegal When businesses expanded from small shops to larger factories, owners turned their attention to competing with other businesses without necessarily consid ering their employees’ welfare. As the employer became distanced from the worker, the expan sion of the workplace and lowered wages (brought about by increased pressure on employers to co mpete nationally) led employees to feel disenfranchised and unappreciated. The conditions beca me ripe for workers to consider ways in which they could effectively demand better wages and condi tions of employment. From this initial consideration came the idea of banding together and forming a union, much as their ancestors had done back in their countries of origin, before coming to the United States. Commonwealth v. Pullis (1806) In 1806 U.S. courts had to consider for the first time whether or not a union in America was in fact legal and whether workers could go out on strike. The organ ization that struck was the Federal Society of Journeymen, commonly called Cordwainers. One of the first unions in the United States, it had formed in 1794 and consisted of workers who made shoes, boots, and other leather footwear (Foner, 1998). In 1805 there was a general pay cut throughout the indu stry, and in response the organization went on strike. The master craftsmen who employed the workers t ook them to court and charged them with the crime of conspiracy based on an old English law that prohibited workers from ac ting collectively, or in a conspiracy, to seek better wages (Dau­Schmidt, 1993). Because today’s Americans are accustomed to modern laws that protect union activity, charging strikers with such a crime may seem incomprehensible; yet it wa s done, and done successfully. The state of Pennsylvania (the “commonwealth” in the case) brought criminal charges against the strikers, including one named Pullis as the defendant, in the case Commonwealth v. Pullis. The state charged that the “defendants conspired and agreed that none of them wo uld work at the shoe making craft except at certain specified prices higher than the price which had theretofore customarily been paid” ( Commonwealth v. Pullis , 1806). In other words, the accusation of criminal conspiracy was based on the idea that the workers demanded a wage higher than the market was willing to pay the m. The workers were also accused of conspiring to keep other craftsmen from working except at the same higher rate they demanded. Both actions were considered illegal and conspiratorial. The defendants were found guilty and ordered to pay fines and the cost of prosecution. These fines subsequently bankrupted their un ion. The threat of being charged with a crime and successfu lly convicted put a chilling effect on many workers’ desire to form a union. Commonwealth v. Pullis reflects the early climate in the United States regarding opposition to unions. Scholars who look bac k on the decision note how forcefully the workers were shut down in trying to unionize. It is one thing for courts to find civil or financial liability, but convicting workers of a criminal act was an onerous and forebodi ng result (Swartz, 2004). In a social context the decision also highlights how li ttle equality was offered to workers. Instead, the American system was much like that of Britain, with d istinct class systems. Prohibiting union activity prevents individuals from earning more money and thu s rising above their station in life. Further, keeping workers from unionizing by threatening them with criminal charges would make any worker hesitant to question an employer, thus eliminating any hint of democratic decision making in the workplace. In short, Pullis had a chilling effect on labor activity for the next four deca des (Conrad, 1997). The outcome of cases such as Commonwealth v. Pullis considerably dampened enthusiasm for organizing. Knowing they would go to jail or pay he fty fines for union activity likely curbed or entirely halted such behavior from workers. Some writers who co mment on this era note that most of the strikers who were convicted were never sent to jail, b ut instead ordered to pay fines (Lambert, 2005). The criminal charges brought against them were to fri ghten other workers and set an example. Whatever the philosophy of the time, by declaring it illegal to act or conspire together to protest one’s wages, the decision of the court made workers wary about partici pating in union activities. This decision remained “good law” for some 40 years. Th is means that other courts would also follow or abide by the decision that union activity was illega l. It was not until 1846 that a Massachusetts court ruled that the decision in Pullis was wrong, replacing it in the case of Commonwealth v. Hunt with exactly the opposite view: that union formation was legal and not conspi ratorial. Commonwealth v. Hunt (1846) In the 40 years since the Pullis decision, industrialization of the United States had continued at a steady clip. As more workers were thwarted in their attempts to organize and conditions in factories worsened, public opinion increasingly changed about the need f or unionization, which was reflected over several court decisions. Finally, in the case of Commonwealth v. Hunt, the Supreme Judicial Court of Massachusetts stated unequivocally, and for the first tim e, “that trade unions are per se lawful organizations” (Perlman, 1922, ch. 7). This means that once formed, a labor organization will be presumed to be legal, thus opening the door for labo r to organize without the threat of criminal charges. The court stated, “This doctrine that working men may lawfully organize trade unions has been adopted in nearly every case since Commonwealth v. Hunt” (Perlman, 1922, p. 151). More changes were on the horizon for America’s worker s. In 1861 the Civil War began. In addition to heralding dramatic social and legal changes, the war served as a major catalyst to further industrialize the country. Initially, the war accounted for an im mediate and drastic need for troop supplies such as food, clothing, weapons, cannons, and horse bridles. As the war progressed, steel production increased dramatically, as did the need to expand roads, canals, and thoroughfares to transport troops and equipment. Commerce rapidly expanded, with dramatic and significant effects. The Commonwealth case provided an important basis for union formation in th e times that were to come, when industry would become ever larger and impersonal and workers would strive for d ecent working conditions. 2.2 Early Labor Unions This section introduces some of the earliest and most significant labor organizations formed after the Civil War ended in 1865, and into the 20th century (see Table 2.1). As you read, note that although each of these organizations is a union, there are neverthel ess fundamental differences in their purpose, the economic sectors they serve, and their ultimate ability to sur vive. Table 2.1: Early labor unions and associated activities Era 1866 –1874 1869 –1940s 1881 –18861886 –present (as the AFL­ CIO) 1876–1942 1905 –present Name of unionNational Labor Union Knights of Labor Federation of Organized Trades and Labor UnionsAmerican Federation of Labor Amalgamated Association of Iron and Steel Workers (evolved into the United Steelworkers) Industrial Workers of the World Founders Formed by William Sylvis Formed by Uriah Smith Stephens; succeeded by Terence V. Powderly Samuel Gompers Goals of the union To implement an 8­hour workday To implement an 8­hour workday and a ban on hiring children under age 14 To implement an 8­hour workday To work toward large organization with power to implement legislation To obtain fair wages for its workers To unite workers in the textile mills from many backgrounds and nationalities Era 1866–1874 1869 –1940s 1881 –18861886 –present (as the AFL­ CIO) 1876–1942 1905 –present Major strikes Great Railway Strike in 1877 Reading Railroad Massacre Battle of the Viaduct Great Southwest Strike of 1886Haymarket Square Riot in 1886 Homestead Strike in 1892 Lawrence Textile Strike in 1912 The National Labor Union (1866–1874) The National Labor Union was not the first union in the United States, but it was the first to achieve a national identity, become somewhat recognizable to t he common man, and enjoy a continuity of more than a few years. It was formed at the end of the Civ il War by William Sylvis , a Pennsylvania native and iron molder. His goal was to form a union for everyon e, no matter their occupation or whether they were skilled or unskilled. As you will see later in this chapter, most unions would eventually be formed around a specific type of work or occupation. The National Labor Union, howev er, was aimed at “uniting workers across occupations and achieving economic and social reforms, including the eight­hour working day” (William H. Sylvis Historical Marker, 2011, para. 5). It fough t for better wages and shorter hours, but more significantly, it also entered the political arena. S ylvis was especially interested in issues of the day that included prison labor and land reform laws. The idea that a union would accept members of all oc cupations and engage in political activity was radical in the 1800s. Nevertheless, the union attracte d a large constituency. In 1869 the Chicago Tribune approximated it had about 800,000 members, whereas Sy lvis estimated it was 600,000. It is likely that both estimates are exaggerated, but nevertheless, the organization did represent a large portion of the nation’s labor force. At its height, it likely had be tween 200,000 and 400,000 members (Grob, 1954). Although the union was successful for 7 years, by 1874 i t was totally defunct; the reason most often given is that it tried to represent too many different and vary ing interests. The Great Railway Strike (1877) ©Corbis The Great Railway Strike of 1877, which began in response to a pay cut, demonstrated the need for a cohesive organization of workers. Watch This For more information about the Great Railway Strike of 1877, watch https://www .youtube.com/watch? v=dHE3u5KkEZw (https://www.youtube.com/watch? v=dHE3u5KkEZw) During the Civil War, industry could barely keep up with the demand for rifles, railroad tracks, cannon balls, and the like. But by the beginning of the 1870s, the war had been over for 5 years; demand was down and the country underwent a major economic contraction. In addition to the war’s end, many people had invested heavily in the further development of railroads. Tow ns and cities vied for the opportunity to have rails com e into their communities and issued bonds to finance them. Many railroads were overbuilt, meaning there were too many lines running through the same places. There was not enough business or demand to support the availability of lines throughout the country, which led to the longest depression in the nation’s history: It la sted for 65 months, from 1873 to 1879 (Barreyre, 2011). It was during this economic downturn that the Great Railway Strike of 1877 occurred. Workers formed a wildcat strike that had an enormous effect on how unions would be t hereafter viewed. A wildcat strike is organized by the workers without the blessing of union leadership. The strike began when the Baltimore and Ohio Railroad announced a pa y cut of 10% for all of its workers. As soon as the workers went on strike, the railroad responded by hiri ng new workers to take their place, which infuriated the strikers. In retaliation, they refused to let the new hires work; they stopped the trains by stepping onto the tracks or blocking their passage. Com merce ground to a halt as the strike spread and the rail cars sat idle on the tracks. The strike started in Martinsburg, West Virginia, and sp read to Wheeling, West Virginia, then to Baltimore and Chica go. According to Harper’s Weekly , a newspaper of the time, strikers blocked 1,500 freight cars and 13 locomotives on the side tracks in Martinsburg and in Pittsburgh. “At midnight fully 1400 men had gathered in the two yards, and 1500 cars were stan ding on the sidings, 200 of which contained perishable goods” ( The Great Strike, n.d., para 3). As the strike escalated and tra ins came to a halt across the nation, the strikers were viewed with d isdain by the public. Maryland governor John Carroll called f or military action to quell the strikers, as described in an excerpt from Harper’s Weekly: The next day was a bloody one in the history of the strike on the Baltimore and Ohio road. The blockade at Martinsburg had been raised, and trains w ere again running both ways under the protection of the national troops. But on the aftern oon of the 20th, word reached Baltimore that all the freight trains leaving Martinsburg that day were stopped at Cumberland, and the crews taken from them by the strikers. Governor Carrol l at once issued a proclamation and ordered out the State militia. The sound of the fire ­bells summoning the men to their armories created the wildest excitement. Baltimore and other streets of the city had been crowded during the day with throngs of citizens, anxiously wat ching the bulletin­boards at the different newspaper offices and discussing the situation. As the al arm pealed forth, the crowds made their way toward the armories of the different regim ents. That of the Sixth is at Front and Fayette streets, and in a neighborhood which is inhabi ted by the poorer classes, and much of the rough element frequents it. Within half an hour after the call had been sounded, a crowd Courtesy Everett Collection This portrait shows the founders of the Knights of Labor, one of the earliest, largest, and most sustained labor unions of the 1800s. numbering at least 2000 men, women, and children surr ounded the armory and loudly expressed their feelings against the military and in fa vor of the strikers. At half past seven the streets leading to the armory were crowded with a stru ggling, shouting, and cursing mob. The sight of a man in uniform endeavoring to get into th e building was the signal for an outbreak, and he was rushed upon, seized, and thrown over a bridge into Jones’s Falls’ stream which runs through that section of the city. Others were thrown over the heads of the surging mass, and were glad to escape with slight injuries. At this junct ure someone threw a block at the soldier on guard at the door of the armory. (The Great Strike, n.d., pa ra 4) The uprising became known as “The Great Strike” and d emonstrated the need for a cohesive organization if any goals were to be accomplished. As one histori an pointed out: Far from seeking to destroy modern civilization, labo r leaders were busy in the aftermath of 1877 building new, more inclusive institutions of civi l society. The aggressive crowd actions—and even more, the myriad instances of unity ac ross lines of skill, trade, ethnicity, religion and sex—made it clear to many labor leaders t hat new forms of organization and action for incorporating the unskilled laborers and factory hands were both necessary and possible. (Stowell, 2008, p. 95) Perhaps one of the greatest effects of the strike was th e expansion of the Knights of Labor, the labor organization that dominated the late 1800s. The Knights of Labor (1869–1940s) Part secret society, part fraternal organization repl ete with a secret handshake and initiation process, the Knights of Labor was one of the most successful attempts at union formation of this era. Formed by a group of six garment cutters in Philadelphia in 1869, the organization sought to protect all wage earners, no matter their craft. The driving force for the Knights was Uriah Smith Stephens , a tailor who molded much of the organization on the Masons (or Freemasons), which began as a fraternity of men who were stonemasons. As the fraternity grew, more types of workers were admitted. Members made pledges, prayed, sang songs, had secret handshakes, and swore an oath to the Knights. When later taken over by Terence V. Powderly , who focused the agenda much more on worker’s rights, many of the original rituals disappeared. Powderly instead concentrated on getting an 8­hour day for all workers and prohibiting children under age 14 being hired for f actory work. By 1882 it was no longer a secret organization; by 1886 it was the most powerful labor force in the country, with more than 700,000 members (Phelan, 2000). In the 1880s the Knights had a strong toehold on John Mun dell and Company, Philadelphia’s largest shoe manufacturer. When the company tried to re­hire wor kers at a reduced wage, the workers refused. The company relented but took the pay cut out on the wo men in the factory, who went on strike. The men Watch This For more information about the Knights of Labor, watch https://www.youtube.com /watch? v=htNWwcZSupE (https://www.youtube.com/watch? v=htNWwcZSupE) Watch This For more information about the Haymarket Square Riot, watch soon joined them, and none of Mundell’s 700 workers re ported to work. Not only did this result in women being admitted to the Knights as members, but th e strike was successful and the workers’ demands were met (Montgomery, n.d.). The Knights gained further momentum with the Great R ailway Strike of 1877. Sixteen citizens were shot by the state militia in Reading, Pennsylvania, in wha t came to be known as the Reading Railroad Massacre . The strike next spread to Illinois in July 1877, wi th the Battle of the Viaduct in Chicago. It then spilled into St. Louis, Missouri, where it was fina lly quashed by federal troops. The success of these strikes led to increased membership in the Knights of La bor and confidence in their cause (Ohio History, n.d.). In 1886 the Knights organized the Great Southwest Strike, which took place predominantly in southwestern states. The Knights began their strike again st the Wabash Railroad, owned by financier and railroad developer Jay Gould, a famous industrialist of the time. The strike again st Gould failed, however, which began a downturn in the Knights’ power. Like the National Labor Union before it, the Knight s had a progressive agenda in that they welcomed laborers and farmers, African Americans, and eventuall y women. The framework had no provision for grouping workers by occupation, however, and this turned out t o contribute to its subsequent downfall. Nevertheless, the significant role the Knights played in American labor history cannot be understated. This organization bridged the gap between the craft union era and the heavily industrialized state that grew into a world power. The Knights flourished as an organization, attracting huge numbers of members and gaining great power, prestige, and notori ety. The organization led the labor movement into the next century, and although it did not survi ve, it set the bar for the organizations that followed (Weir, 2006). The Knights’ numbers diminished to fewer than 100,000 members by the 1890s, down from a high of 800,000 in 1869. Federation of Organized Trades and Labor Unions (1881–1886) Unlike the Knights of Labor, which wanted to be all­ inclusive, master craftsmen sought a union that admitted only skil led labor. The resulting organization was the Federation of Organized Trades and Labor Unions (FOTLU) . This group was created in 1881 and was the precursor to the modern­day American Federation of Labor . As part of its initial agenda, the FOTLU announced th at on May 1, 1886, a nationwide strike would take place to declare that workers should have an 8­hour d ay. The movement gained momentum throughout the United States, and in Chicago alone a reported 8 0,000 workers marched up Michigan Avenue in support of the concept. After May 1 all workers who w ere not granted an 8­hour day were to cease working until their employers met this demand (Adelman, 2010) . On May 3 the strike turned violent at the McCormick Reaper Plant in Chicago when police killed picketing worke rs. In protest to this violence against the strikers, union activists ra llied the next night at a place called Haymarket Square. Repo rtedly, there were only about 200 workers at the rally when 176 po licemen https://www.youtube.com/watch? v=_ OQxncb2ihQ&feature=youtube_gdata_player (https://www.youtube.com/watch? v=_OQxncb2ihQ&feature=youtube_gdata_player) Courtesy Everett Collection carrying Winchester repeater rifles attacked them. Someone in the crowd retaliated by throwing a dynamite bomb, w hich killed seven policemen and four workers. Outraged, Chicago d eclared martial law, and authorities undertook a house­to­hou se search to find the person who threw the bomb. Eventually, e ight men who were later described as a cross­section of union act ivists were rounded up and put on trial for murder (Adelman, 2010). Despite the fact that there was much doubt about whet her they were even at the Haymarket Square Riot , the eight men were convicted of murder and sentenc ed to death by hanging. The incident gave antilabor governments around the world the opportun ity to crush local union movements (Adelman, 2010). As for the 8­hour workday, it was not until 19 38 and the passage of the Fair Labor Standards Act that this now commonly accepted standard became law. The American Federation of Labor and Samuel Gompers (1886–Present as the AFL­CIO) Despite limiting itself to skilled workers, the FOTLU, like its predecessors, began to unravel. Issues contributing to its downfall included what role pol itics should play in the organization, the country’s economic downturn, and the Haymarket Square Riot. A ware that their strength lay in organizing, workers were highly motivated to form an organization that co uld represent them collectively. As a result, a collection of trade unions met in 1886 and crea ted a new union, the American Federation of Labor, or the AFL, the precursor to today’s American Federation of Labor and Congress of Industrial Organizations (AFL­CIO). By 1904 the AFL had 1,750,0 00 members and consisted of 115 national and international unions composed of 28,000 local unions i n 38 states (Hearings, 1912). The following is a list of the initial national unions that formed the AFL: Typographical Workers Iron and Steel Workers Molders Glass Workers Cigar Makers Carpenters Central Labor Councils of 11 Cities 42 Local Unions 46 Local Assemblies of the Knights of Labor (LeBlanc, P., n.d.) The AFL is one of the best­known craft unions. It sough t to unite skilled craftsmen, rather than skilled and unskilled, i n order to Samuel P. Gompers served as the first president of the American Federation of Labor. Watch This For more information about Samuel Gompers, watch this video (https://www.youtube.com/watch? v=rnNIcHpNfgU&list=PLHZi3eLSKGhSPLHlHMIWeBxaHhl9TKvEF) demand a higher wage. Its first president, Samuel Gompers, who held that position until his death in 1924, brought t ogether craftsmen such as masons, cigar makers, and hat makers who each had their own local unions but joined together in a national union of skilled workers. Gompers reasoned that skilled worke rs made a better union because they were in high demand and were paid the highest wages (Digital History, 2013). The election of Gompers as president in 1886 at age 36 was the culmination of a remarkable personal journey. Born in England, Gompers and his family immi grated to New York City where a young Samuel became a cigar maker. In those days there was no facto ry. Instead, the process of making cigars took place in tenements, apartments, and rooms that anyone could find in which to sit and roll cigars. The 16­ hour workdays and poor working conditions made this pa rticular job one of the many that took place in so­called sweatshops (Yellowitz, 1989). How did Gompers advance from being a laborer to a la bor leader? The cigar shop in which he worked was large, and he was highly respected by his fellow wo rkers. They elected him to a local union, the Cigar Makers Union Local 144, and from there he was se nt as a delegate to the FOTLU, where he quickly emerged as a leader. After the Haymarket Square Riot and the dwindling of union membership in the FOTLU, Gompers worked with other labor leaders to reo rganize and begin a new union. He was known as a street­smart and savvy individual but also as a prag matist who wanted to unite trade unions under one umbrella in a new organization. The initial objective of the AFL was to help more tr ade unions form, combine the power of all the trade unions into one organization, and then have that large and powerful organization work to implement legislation. The New York Tribune, a leading newspaper of the time, summed up the AFL this way: “An amalgamation has been formed which will result, it is hoped, in the establishment of an organization fully as powerful , better disciplined and more conservative than the Knights of Labor” (The American Federation, 1886, para. 1). Sa muel Gompers succeeded where others before him had failed: He was able to unite a disparate group of workers into one organization that worked for the common man. His legacy lives on today, and he is still widely regarded as one of the most progressive and able labor leaders ever (Yellowitz, 1989). Courtesy Everett Collection Violence erupted during a labor strike at the Homestead Steel Works in 1892. 2.3 Growth of Industry and Worker Unrest As the United States moved forward into the 20th cent ury, the country experienced enormous industrial growth. The steel industry became a world leader in p roduction under the direction of Andrew Carnegie , and other industries such as cotton mills flourished, t oo. But with the expansion of industry and the prosperity that followed, the gap between we althy owners and poor laborers became even more pronounced, leading to tension, strikes, and occasional viole nce. The Rise of Steel and the Homestead Strike (1892) While the Knights of Labor and the AFL were thriving and the craft industry was expanding, great strides were also underway in another sector—the steel in dustry. In the 1860s a new process for making steel called the Bessemer process made it possible to manufacture steel at much lower costs. A leading industrialist of the day, Andrew Carnegie, fi gured out how to use the Bessemer process to manufacture steel rails for the railroads. Up to this p oint, there were no cheap or expedient ways to make rails, and his innovation led to the creation of huge steel mills under the name of Carnegie Steel, located in Pittsburgh. Carnegie played a formidable role in American histor y. As the leading businessman of his time and the wealthiest of his era, he is viewed by some as an Ameri can success story. In the context of labor relations, however, Carnegie’s reputation is mixed, wi th some regarding him as an enemy of labor, while others respected the business he built and the jobs he provided to so m any workers. Carnegie did not come from wealth. His parents were poor and he worked at a young age. Among his earliest jobs was being a runner, or messenger. In the late 1800 s one of the only means of communication was the use of messenger boys, who ran notes from one person to another. In his role as a runner, Carnegie made a poi nt of learning every man’s name to whom he delivered messages. In this way he quickly learned about the businessmen of Pittsburgh. Over time he befriended many of them, and they taught him about business—specifically, the railroad business. He used these connections to advance from telegraph boy at a telegraph company to general manager of th e railroad by his early 20s, all the while absorbing information about investing and finance. He saved mon ey and invested wisely, based on stock tips from the men he had befriended while a runner. After the Civil War ended, he acquired enough money to purchase a highly profitable petroleum enterprise and soon was part owner in a steel­rolling mill, which expanded into his vast steel holdings. One of Carnegie’s holdings was the Bessemer Iron Works in Pittsburgh, which he merged with Carnegie Steel. After making a substantial part of hi s fortune, Carnegie went to live in Scotland and turned over the daily minutiae of running the mills to Henry Clay Frick . Carnegie admired Frick’s harsh approach to labor issues and trusted him implicitly (Standiford , 2005). Like Carnegie, Frick was born into a relatively poor family. Although his grandfather was the founder of Old Overholt, a rye whiskey distillery in Pennsylvania , the money did not benefit Frick’s generation, and he worked for much of his childhood. As a teenager Fr ick learned how to convert the vast deposits of coal in the mountains of Pennsylvania into coke, a pr oduct needed to make steel. When Frick met Carnegie in 1881, it was an especially fortuitous time since Frick had at his disposal vast quantities of coke, which Carnegie, the owner of steel mills, was in need of. They sealed a deal whereby Frick became the provider of all the coke for Carnegie’s mills. C arnegie and Frick soon became partners and had an interesting, complicated, and powerful partnership for the n ext 20 years (Standiford, 2005). Over time, Carnegie made Frick the general manager of Carnegie Steel; when Carnegie began to spend more time in Scotland, Frick ran the mills. Carnegie considered Frick a genius at management and approved of Frick’s methods, even when they were cutthroat (P BS, 1999). Steel mill employees worked a 14­hour day and had just one day off a year, on the Fourth of July. For this they earned 14 cents an hour . Carnegie and Frick’s steel mills were the most competit ive and the most productive, making fortunes for both of them. As the steel business expanded and more workers were hir ed, a new union formed in 1876 in Pittsburgh. It consisted solely of men who worked in ste el and was called the Amalgamated Association of Iron and Steel Workers . It brought together workers in the iron and steel i ndustry who believed that banding together, no matter their job in the mill, would empower them against management (Wright, 1893). By the 1890s the Amalgamated Association of Iron and S teel workers had an estimated 13,000 to 24,000 members. The men who formed the association were alrea dy established at the Homestead Steel Works , located in Pennsylvania, when Carnegie purchased it in 1883 and added it to his vast empire of holdings. Given Carnegie’s strict antiunion policy in his mills, the union and Carnegie seemed destined for conflict. Prior to Carnegie’s acquisition of Homestead, Amalgama ted had successfully negotiated a contract in which workers were paid on a sliding scale directly co rrelated to the price of steel: The higher the price of steel, the more the workers earned. When times were good and prices and demand were up, the workers insisted on a larger share of money. They enter ed into such a contract, and it was effective for three years. The contract was set to expire in 1892, and Carnegie seemed determined to break the union once and for all. He put Frick in charge of the dispute and w ent to Scotland, keeping in touch only by telegraph . Frick made clear that the sliding scale arrangement w as to be abolished; he refused to recognize Amalgamated and would not bargain. The workers began to strike in one segment of the plant after another. They refused to allow replacements to go int o the plant to do their jobs. These replacements, known disdainfully as scabs, were effectively chased out of town. Frick was prepared for Homestead to shut down. He erec ted a large fortress around the plant, which later became known as Fort Frick. The “fort” had sear chlights, barbed wire, and high walls with cutouts where rifles could be placed to shoot from inside the walls. Frick presented his wage offer but refused to meet to discuss any of its terms, essentially locking ou t the union from negotiations. At stake was the issue of whether wages should control the price of steel or the pric e of steel should control wages. Next, Frick had the workers evicted from company hou sing. Women were carried out into the streets by the sheriff. Frick then fortified the steel mill by h iring 300 guards to protect the plant from the strik ers. Watch This To learn more about the Homestead Strike, watch http://www.aflcio.org/About/Our­ History /Key­Events­in­Labor­ History/1892­Home stead­Strike (http://www.aflcio.org/About/Our­ History/Key­Events­in­Labor­ History/1892­Homestead­Strike) The guards were not located at Homestead, however; they had to be brought to the plant. Frick made arrangements for the guards to come down the river via barge. It was well known that guards had been hired and wer e in the process of traveling to the plant by river. More than 10,000 strikers gathered on the river banks to await their arrival. As the barge pulled up to the dock, gunfire erupted. It was never determined w ho fired the first shot, but seven guards and nine strikers were killed and many others seriously injured. After an all­day melee, the guards tried to surrender and were escorted off the barges by the stri kers, only to be attacked by the mob onshore as they walked the gauntlet. The strike continued. Eventually, after numerous attempts by different fact ions, the state militia finally arrived at Homestead and quelle d the riot. With an armed force in charge, the company was then abl e to hire replacement workers to get the plant up and running, and the strike came to an end. From Carnegie and Frick’s perspe ctive, one could conclude that the strike was a success: The Carneg ie Steel Company remained without a union for the next 40 ye ars (Brody, 1969). Some of the strikers were arrested, and 16 were tried for conspiracy and murder. The union spent its time, energ y, and finances defending those members; the strain on its coff ers and the loss of jobs resulted in the union’s ruination. In t he end only one of the workers was convicted of a crime and sentenced to serve time. The lingering effects of the violence and the bad im pression it left on the American public, however, remained long after the strike was over. Shortly ther eafter, Carnegie instituted lower wages and longer hours. Frick, however, may be considered a casualty of the strike. He and Carnegie worked together at arm’s length for some years and eventually had a falli ng out in 1899, at which time Carnegie bought him out for some $32 million. Frick went on to found Uni ted States Steel, as discussed in the next chapter. The reputations of both Carnegie and Frick, however, were forever tarnished by the events of the Homestead Strike (Standiford, 2005). The Early 20th Century and the Lawrence Textile Strike of 1912 Steel was not the only major manufacturing enterprise in the United States. Another large and flourishing industry located predominantly in the nor theast consisted of textile mills. The mills were large, impersonal places to work with dangerous machin ery and poor working conditions. Workers got sick from inhaling dust and cloth fibers, caught limb s in the poorly maintained machinery, and generally suffered from debilitating conditions and long hours. Unskilled workers were allowed to run the machinery, and as a result, the mills employed thousands of women and children who toiled for $6 per week that often included 6 or 7 working days. When their long workday was over, workers returned home to a cro wded and dirty tenement building where there was little food to sustain them. One of the largest employers of the time was the Ameri can Woolen Mills in Lawrence, Massachusetts. The intolerable conditions at places like the America n Woolen Mills made joining a union appealing to the workers, and rising from the conditions of the tim e was the Industrial Workers of the World (IWW), whose members came to be known as Wobblies (Green, 1993). The IWW was considered by many to be a radical organization because it adhered to the belief that militant action was necessary to improve the lives of its members, and it was determined to represen t the mill workers. One daunting problem facing the IWW’s attempts at uni fication was the varied backgrounds of its members, who were immigrants from widely diverse place s such as Poland, Italy, and Ireland. It was a daunting task to organize workers who spoke a variety of languages, practiced different customs, and held strong but varying beliefs about unionization. Nevertheless, the IWW was successful in organizing a signi ficant number of the workers and planned a strike when the state of Massachusetts passed a law requiri ng that the workweek be reduced from 56 to 54 hours, which went into effect on January 1, 1912. In respon se to the decreased hours—which meant a corresponding cut in wages—the mills deducted money fro m their workers’ wages to represent the fewer hours worked. The first to notice the reduction in their wages were the Polish women working in the Everett, Massachusetts, cotton mills. They walked o ut of the plant, leaving the mills idle. Soon both men and women went on strike, and within a week ther e were 20,000 strikers; it was estimated that more than 25 nationalities were represented in the str ike, which included workers of German, Italian, Polish, Scottish, and Lithuanian descent (Lawrence Textile St rike, 2014). The women estimated that the pay cuts translated into two to three fewer loaves of bread a week, resulting in the now famous phrase shouted by the strike rs, “We want bread and roses too.” The immediate reaction was to send in the militia to quel l the strike; workers were attacked with water hoses from the rooftops of adjoining houses. Workers cont acted the IWW to assist them with the strike, and the IWW sent Joe Ettor and Arturo Giovannitti, w ho came to unite the workers and form a democratic means of representing them. A Closer Look : Bread and Roses Today The rallying cry of the women at the American Woolen Mills may se em a distant historical incident, but “bread and roses” is alive and still part of America n labor culture. A movie by that name, released in 2000, depicted the struggle of workers in Los Angeles who worked at night cleaning downtown office buildings. The dic hotomy between rich and poor was just as evident for the janitors as it was for the women in the mills. The workers eventually formed an alliance named Justice for Ja nitors, which is an example of a ground­up organization that succeeded in attaining its deman ds. The story is especially intriguing because the workers used unconventional methods such as “house­visi ts, face­to­face organizing, member­intensive organizing and strategic analyses of the poli tical and economic contexts, and organizational renewal of moribund locals” (Milkman & Voss, 20 04). One important tenet of the union was its belief in re specting the language and culture of each of the groups working in the mill, no matter what country t hey came from. Rather than division, the IWW sought to bring the workers together in a bid to gain better working conditions. Women played a significant role in the Lawrence Textile Strike, not just because they were the key workers at the mill, but because they insisted on a nonviolent approach, of ten marching at the front of strike parades in an attempt to keep violence down. National attention was drawn to the strike because the women sent their children out of town by train to protect them. The children were sent to New York City , where they took place in parades and otherwise drew attention to the strike. As a result, the next ti me the strikers tried to send more children on the trains, the militia showed up and tried to wrest the c hildren away from their mothers (Kornbluh & Thompson, 1998). This resulted in massive publicity and eventual hearings in Congress. After the hearings commenced, the mill owners backed down and grante d concessions to the strikers. The strikers received what they originally asked for: wage increa ses between 5% and 25%, compensation for working overtime, and no retribution against the strikers. At the congressional hearings on the strike, one woman’ s testimony stood out. Her name was Camella Teoli, and she was just a teenager when she appeared be fore Congress. Some of her testimony is as follows: CHAIRMAN. Camella, how old are you? Miss TEOLI. Fourteen years and eight months. CHAIRMAN. How many children are there in your family? Miss TEOLI. Five. CHAIRMAN. Where do you work? Miss TEOLI. In the woolen mill. CHAIRMAN. What sort of work do you do? Miss TEOLI. Twisting. CHAIRMAN. How much do you get a week? Miss TEOLI. $6.55. CHAIRMAN. What is the smallest pay? Miss TEOLI. $2.64. CHAIRMAN. Do you have to pay anything for water? Miss TEOLI. Yes. CHAIRMAN. How much? Miss TEOLI. 10 cents every two weeks. CHAIRMAN. Now, did you ever get hurt in the mill? Miss TEOLI. Yes. CHAIRMAN. Well, how were you hurt? Miss TEOLI. The machine pulled the scalp off. CHAIRMAN. The machine pulled your scalp off? Miss TEOLI. Yes, sir. CHAIRMAN. How long ago was that? Miss TEOLI. A year ago, or about a year ago. CHAIRMAN. Were you in the hospital after that? Miss TEOLI. I was in the hospital seven months. CHAIRMAN. Did the company pay your bills while you were in the hospital? Miss TEOLI. The company only paid my bills; they didn’t give me an ything else. CHAIRMAN. They only paid your hospital bills; they did not gi ve you any pay? Miss TEOLI. No, sir. CHAIRMAN. But paid the doctors bills and hospital fees? Miss TEOLI. Yes, sir. Mr. LENROOT. They did not pay your wages? Miss TEOLI. No, sir. (Camella Teoli testifies, n.d.) In the News: From Lawrence to Bangladesh—Is It Any Better for Factory Workers Today? Based on the article, Despite Low Pay, Poor Work Conditions, Gar ment Factories Empowering Millions of Bangladeshi Women, by Palash Ghosh. International Business Times (March 25, 2014). The intolerable conditions at the American Woolen Mills in Law rence, Massachusetts, that eventually led to the successful strike by the Wobblies took pla ce in 1912, more than 100 years ago. Textile mills in the United States have now been replaced b y mills overseas, with Bangladesh second only to China in terms of production. Bangladesh has close to 6,000 garment factories and exports the ma jority of goods, generating more than $20 billion in annual revenues. The entire country d epends on these exports to prop up its immensely poor population. It was under this sort of econom ic pressure that in April 2013, the dilapidated conditions at the Rana Plaza factory on the ou tskirts of Dhaka led to its collapse. It is considered the deadliest garment factory accident in histor y: 1,129 workers were buried alive and another 2,515 injured (Ghosh, 2014). Read the following a rticle about this calamity and then answer the questions below: http://www.ibtimes.com/despite ­low­pay­poor­work­ conditions­garment­factories­empowering­millions­bangladeshi ­women­1563419 (http://www.ibtimes.com/despite­low­pay­poor­work­conditions­garment­factories­empowering­ millions­bangladeshi­women­1563419) . Discussion Questions 1. To what lengths should employers go to ensure the health and safe ty of their workers? Are there any aspects of health and safety for which employers shou ld not be responsible? 2. How would you as a manager handle a situation in which employe es were placed in an unsafe environment and the owners of the business did not care? 3. Do you think that managers and/or owners should be personally li able for deaths and injuries that result from workplace catastrophes? 4. How do you think union representation benefits workers in such circumstances? 5. How could the formation of a union in an unsafe factory lead t o better working conditions for the employees? By the end of the 19th century, the labor movement had come a long way. From the shopkeepers in the beginning of the century to the AFL and IWW at its e nd, labor had experienced great strides in organizing successful unions and affecting changes in wo rking conditions; but it had also experienced violence and had yet to universally achieve better w orking conditions, wages, and hours for all workers. Americans were starting to become more outraged at t he treatment their fellow workers received both at the hands of the factory owners and by police sent in to stop the riots. Their disbelief led to anger and demands that working conditions change, setting the sta ge for the significant legislation about to be passed by Congress and state governments. Labor History Summary & Resources Summary of Chapter Concepts • The 1700s and 1800s featured rural farms and master craftsmen who ran their own shops. Master craftsmen ran businesses in which they knew their employee s, understood their needs, and treated them as individuals. • The Industrial Revolution took place during the mid­ to late 1800s, during which there was an influx of cheap labor, a massive expansion of railways, the start o f numerous factories, the requirement to arm soldiers for the Civil War, and later, the im portance of meeting the needs of a growing population. • As travel and commerce began to cross state lines, so did competit ion, making businesses more cost­conscious. This often resulted in lower wages, which caused wo rker disgruntlement. • Commonwealth v. Pullis held that workers who joined together to strike were engaging i n illegal conspiracy. This antiunion decision was not overturned for some 40 years until the decision in Commonwealth v. Hunt, which held that trade unions are per se lawful organizations. • The first major union in the United States was the National Labo r Union, which was founded for any workers, skilled or unskilled, and sought an 8­hour workday a nd better wages. • The Great Railway Strike in 1877 shut down the nation’s railro ads and resulted in extensive damage to railroad property; it ended only when the militia w as called in to quell the strike. This strike demonstrated the need for a cohesive, strong organizati on. • The Knights of Labor reached a force of 700,000 workers, who we re socialistic in outlook. They also focused on achieving an 8­hour workday and on prohibitin g children under age 14 from being hired for work. The group dwindled in membership in part because its acceptance of all types of workers blurred its focus. • The fall of the Knights of Labor occurred as the Federation of Organized Trades and Labor Unions was rising. This group limited its membership to only skilled workers but was decimated by the Haymarket Square Riot. • The American Federation of Labor emerged as a powerful succe ssor to FOTLU. Under the leadership of Samuel Gompers, it became an amalgamation of 38 t rade unions and quickly reached a membership of close to 2 million. • The late 1800s also featured the rise of the steel industry and the emergence of Henry Clay Frick and Andrew Carnegie. Despite their brilliance in building th e steel industry, Carnegie and Frick’s actions during the Homestead Strike raised serious issues about the ir treatment of workers. • In the textile industry a strike in which women demanded “brea d and roses” became a national event. Chapter 2 Review Quiz Chapter 2 Flashcards Choose a Study Mode  Key Terms Amalgamated Association of Iron and Steel Workers A union made up of workers in the steel industry in Pittsburgh in the late 1800s. American Federation of Labor An amalgamation of trade unions founded by Samuel Gompers in th e early 1900s. apprentices Young men who trained in a shop to learn a skill. Battle of the Viaduct An uprising that was an offshoot of the Great Railway Strike of 1877 and occurred in Chicago, Illinois. Bessemer Iron Works Part of the large steel holdings of Andrew Carnegie. Andrew Carnegie A steel magnate and head of Carnegie Steel during the Homestead Strike. Carnegie Steel The name of the steel plants owned by Andrew Carnegie. Commonwealth v. Hunt A law case that held that forming a labor union is per se legal; it overturned the decision in Commonwealth v. Pullis . Commonwealth v. Pullis A law case that held that forming a labor union is an illegal and criminal conspiracy; it was overturned by Commonwealth v. Hunt . conspiracy When two or more people join together and plan a crime. cordwainers The name given to early shoemakers. Federation of Organized Trades and Labor Unions (FOTLU) A union that formed in the 1880s and admitted only skilled labo r. It declared the strike at the McCormick Reaper Plant that led to the Haymarket Square Riot . Henry Clay Frick An entrepreneur who was a colleague of Andrew Carnegie and wh o ran the Homestead Steel Works during the Homestead Strike; the violence and death during th at strike are attributed to him. Samuel Gompers A union activist and one of the founders of the American Federat ion of Labor, the precursor to the AFL­CIO. Jay Gould A financier and railroad developer to whom a great economic c rash is attributed in the 1880s; it led to the Great Southwest Strike. Great Railway Strike of 1877 A particularly bloody and violent strike that took place agai nst the nation’s railroads in 1877 and led to the formation of the Knights of Labor; also known as the Great Strike. Great Southwest Strike A strike organized by the Knights of Labor in 1886. Haymarket Square Riot A riot that took place as a result of a strike by FOTLU on the McCorm ick Reaper Plant in 1886. Homestead Steel Works One of Carnegie’s steel plants; the site of the Homestead Strike. Industrial Revolution An era in U.S. history spanning the years 1820 to 1840, during which there was a tremendous growth in industry. Industrial Workers of the World (IWW) A union based on socialist principles that arose out of the Lawrenc e Textile Strike of 1912. journeymen Apprentices in a workshop; young men who learned a trade by assist ing in a shop. Knights of Labor One of the earliest, largest, and most sustained labor unions of the 1800s, which sought to be inclusive of both skilled and unskilled labor and worked to implement an 8­hour workday. master craftsmen Skilled tradesmen who often started as apprentices in a shop. National Labor Union One of the earliest unions formed (1866–1873) that represented w orkers and sought an 8­hour workday. Terence V. Powderly The successor to Uriah Smith Stephens as president of the Knights of L abor. Reading Railroad Massacre Part of the Great Railroad Strike of 1877; a shooting in Reading, Pennsylvania, that resulted in 16 casualties. scabs A derogatory term for workers who replace people on strike. Uriah Smith Stephens The founder of the labor union the Knights of Labor. William Sylvis The founder of the National Labor Union. wildcat strike A strike organized by the workers without the permission or blessin g of union management. Wobblies The name given to the members of the Industrial Workers of the Wor ld; the term has no clear origin or explanation. Critical Thinking Questions 1. What were the driving forces that led people to sacrifice so mu ch to form unions? Was it worth it? What benefits were derived? What sacrifices were made? 2. Compare and contrast the first unions. What did they have in co mmon? What are some of the distinctions between them? What unions had conservative philoso phies? Which ones were more liberal? 3. Violence played a large role in the formation of the early u nions. To what do you attribute this? What part did the unions play in creating situations that enge ndered violence? What part did the government play? 4. How did the economic boom and depression in the 19th century c ontribute to both the development and destruction of unions? Research Projects 1. Watch the film The Homestead Steel Strike of 1892 at http://www.youtube.com/watch? v=1NljbZAGk0w (http://www.youtube.com/watch?v=1NljbZAGk0w) . a. After watching the film, describe the strike from the viewpo int of the steel workers and then from the viewpoint of the Pinkerton guards. b. Some commentators have stated that the strike was both a victor y and a defeat for organized labor. In your opinion, what does this mean? c. Martha Frick Sanger, great­granddaughter of Henry Clay Frick, appears in the film. What position does she take about her great­grandfather’s actions in the strike? d. What is your opinion of the strike after watching the movie? H as your opinion changed since reading the chapter? 2. The labor movement has many heroes, from Samuel Gompers to th e Wobblies. Much information and research about early labor leaders is availabl e on the Internet and YouTube. Choose one person or organization that you find particularly i nteresting and write a brief biography and description of this party’s accomplishments on be half of labor. 3. Andrew Carnegie and Henry Clay Frick are often portrayed a s enemies of labor. Is this portrayal accurate? Choose one of these men and investigate if this assumpti on is really true. Some good places to start include “ Where a Tycoon Made It Just to Give It Away (http://www.nytimes.com/2007/10/21/travel/21footste ps.html?pagewanted=all&_r=0) ”; “ Carnegie vs. Frick Dueling Egos on Fifth Avenue (http://www.nytimes.com/2000/04/02/realestate/streetscapes­the­frick­mansion­carnegie­vs­frick­ dueling­egos­on­fifth­avenue.html?module=Search&mabReward=relbias%3Aw%2C%7B%222%22% 3A%22RI%3A15%22%7D) ”; and “ Henry Clay Frick: Blood Pact (http://www.pittsburghquarterly.com/index.php/Historic­Profiles/article­template.html) .”