Modern labor movements arose in the United States in the mid-1800s. During that time, an increasing number of Americans worked in mines, mills, and factories in the then growing industrial economy. This period represented a shift in the economy of the country from small-scale farming to industry, hence leading to more people working for wages than for self-employed craftsmanship. However, since these early years of industrial capitalism did not have any government regulation, many monopolies emerged while other businesses conspired to keep the wages of their workers low (Schultz, 2018). Furthermore, some business owners developed the routine of bribing members of Congress and judges for favors in industrial disputes.
The development of labor unions between 1865 and 1940 had a negative impact on the growth of the economy. The labor unions led to the introduction of unnecessary laws that disrupted the economy by stifling business operations. However, the initial purpose of labor unions was to reconcile the disputes that occurred between employers and workers, as well as reconcile the disparity in resources between those two parties for the improvement of the workers’ conditions. Strikes organized by labor unions during that period led to a series of violent confrontations, destruction of property, as well as disruption of economic activities. The requirements by labor unions to reduce working hours and days affected the productivity of mills and industries at a time when there was no automation in industrial processes (Jacoby, 1983). The paralyzed business operations as a consequence of labor union activities led to job losses and the collapse of many businesses.
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The power of a labor union mostly lies in its ability to strike. The late nineteenth century was characterized by many of these strikes leaving mills and factories idle at the expense the production time and revenue of the industries. The desire of most unions to control the elements of workflow in the sectors and mills frustrated the business owners who sought other ways to circumvent those restrictions. For example, workers of Homestead Steelworks in Pennsylvania who were members of the Amalgamated Association of Iron and Steel Workers (AA) were locked out of the steel mills for slowing workflow and output (Jacoby, 1983). In response to that decision by the management of the mill, the AA members organized a strike at the plant. What followed was a battle between the striking workers and strikebreakers hired by the mill as replacement workers. Several days of striking and confrontations at the premises of the mills led to the breaking out of gunfire and the death of several people. This union strike was also characterized by destruction of property in train yards, gun battles, and violence in the streets of Homestead. Furthermore, these events disrupted the operation of other economic activities in the area.
Another example of how industrial strikes organized by labor unions disrupted workflow in crucial industries is the Pullman Strike. This strike involved George Pullman, an engineer, and designer of sleeping cars, and some 12,000 workers who he had hired to build those cars. Although Pullman’s business was successful, it was affected by a general downturn in the economy in 1894 (Schultz, 2018). The prices of sleeping cars experienced a nationwide drop in the spring of that year, forcing Pullman to cut the wages of the workers without reducing the cost of items sold in the company-owned stores, or the rent that they were paying to live in the premises of his company.
This disproportion led to a strike that attracted the attention and solidarity of other workers in the nationwide railroad, hence becoming a nationwide strike. This strike disrupted not only the operation at the Pullman Company, but also other unrelated operations such as the delivery of mail and other commodities that could only be delivered by railroad. This strike would eventually spin out of control by becoming violent and crippling transportation throughout the Northeast (Schultz, 2018). Violence against private property became a common characteristic of union strikes leading to personal and business losses in entities that were not involved in the labor issues.
In 1877, workers in the Baltimore and Ohio Railroad (B&O) walked off work after the company announced a pay cut (Gompers, 1914). Although railroad companies were practicing ruthless competition methods, word about the walk-off spread out to workers in other competing companies who joined them in the strike. The strike continued to attract a growing mass of workers from railroad companies and other industries and eventually turned out to become a series of violent protests. These striking workers burned trains, attacked railroad yards, and tore up rail tracks. Pittsburgh was the most affected city by this violence after a battle between 650 federal troops and 5,000 striking workers led to the burning of buildings, locomotives, and cars, as well as the death of more than twenty-five people by gunfire (Gompers, 1914).
During the period between 1865 and 1940, labor unions focused on enacting restrictions on working hours as well as shorter working days for members. For example, the Knights of Labor was founded in 1869 with the objective of lobbying the government for restrictions on child labor as well as eight-hour working days. These restrictions had a negative effect on operations in the mills and factories and consequently affected the growth of the economy (Gompers, 1914). Since these unions were growing in membership, any attempt by the government or individual companies to break the unions or to impose non-union approved working conditions would be met by massive walk-outs, strikes and violence and the consequent stalling of business operations in many parts of the country.
References
Gompers, S. (1914). The American Labor Movement: Its Makeup, Achievements, and Aspirations . Retrieved on 11 May 2019, from http://wwphs.sharpschool.com/UserFiles/Servers/Server_10640642/File/bugge/Chapter%2021/Gompers.pdf
Jacoby, S. M. (1983). Union Management Cooperation in the United States: Lessons from the 1920s . Retrieved on 11 May 2019, from http://libdatab.strayer.edu/login?url=https://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=4462675&site=eds-live&scope=site
Schultz, K. M. (2018). HIST: Volume 2: U.S. History since 1865 . 5 th ed. Boston, MA: Cengage.
