CHAPTER 14 SECTION3

Labor in the American Economy

The Growth of Wage Labor

Early Americans-farmers

Produced for themselves Owned their main

resource-land Other Americans –

skilled craftspeople Worked for

themselves or others Owned their own

capital-tools (blacksmiths,

shoemakers, etc.)

Industrialization creates change….

1800’s many changes in industry/farming

Machinery more efficient-few workers needed

Machines produce better goods – cheaply and faster

Farmhands, craftsmen, immigrants began to earn wages for their work Worked in mines, factories, workshops Did not own capital-tools for their trade Exchanged labor for wages

Working Conditions

People had to work or starve

Terrible working conditions in factories, mines, etc. Unsafe No work, no pay Easily fired Long hours (12-16

hour days) Child labor common

The Rise of Labor Unions

Only way for workers to get better working conditions was to fight for them

Labor unions form Workers

organize to get: Better pay Safer work place protection

continued………………..

First unions formed- 1790’s Industrial Revolution

Many new workers to factories Conditions made it necessary to form

unions

1880’s most unions organized as trade unions Members with same skill (carpentry, etc.) Considered skilled workers-had some

knowledge of trade

The Noble Order of the Knights of Labor

First important national union

Worked to bring working class (skilled and unskilled together)

Workers could not agree on issues

Union disbanded

American Federation of Labor (AFL)

AFL – formed after NOKL United smaller trade unions (only skilled

workers) Become very powerful nationally Forced employers into collective

bargaining

Conflict great among workers and employers unions demand eight-hour day and

higher wages Owners disagreed (wanted to protect

their rights as entrepreneurs in the free market economy)

Weapons of labor and business

Labor• Slowdowns• Sit-down strikes• Boycotts• Strikes

• Hundreds of strikes between 1886-1920-most in textile, steel and railroad industries

Business• Strikebreakers

called “scabs”• Private police to

keep the peace• Violence

commonplace at meetings

• Lockouts• Blacklists

established with unions members’ names

Who gains…..who looses

Results of both management and labor “weapons” Economic Interruption of

production and profits

Workers go back to work -have to feed families (discouraged from striking)

Department of Labor

President William Howard Taft signed the March 4, 1913, bill establishing the Department of Labor as a Cabinet-level Department.

Established to protect workers rights

Labor and unions still had problems

Labor Unions since 1930

1930’s government recognized the rights of unions to exist and strike

National Labor Relations Act (Wagner Act) passed by congress in 1935 Employers required to bargain with

workers Outlawed employers “weakening” unions

No company formed unions Could not fire employees over union

activities

Taft-Hartley Act of 1947Landrum –Griffin Act of

1959*****************************Put limits on the powers of unions and union leaders

AFL-CIO Combine Forces

Industrial unions joined CIO (Committee of Industrial Organization)-1935; kicked out of AFL in

1938 Both were rivals, but

joined together in 1955 to form the AFL-CIO

Today, in U.S. has 13 million members

Accomplishments and Common Interests

Unions won better wages for workers Negotiate with government on certain

policies Helped to get laws passed to protect

worker’s safety, ban child labor, retraining of unemployed workers

Unions still strike and boycott today However, unions and employers work

together for sensible solutions Owners- happy workers produce more

goods and services

The Labor Force Today

“Make-up” of today’s workforce is vastly different today – compared to 1700’s America

Moved from a farming country to one of service and industry

Women play a greater role in the workforce

Many manufacturing/industrial jobs had decreased, but service industry jobs have increased Caused some problems for workers Economic, person, retraining, etc.

Early Labor Movements

http://www.youtube.com/watch?v=sZ5ZwOaBI24&feature=related

http://www.youtube.com/watch?v=zvluM-qcJY8&feature=related

http://www.youtube.com/watch?v=g-95bn8IFyc