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CHAPTER 2
The History of Labor–Management Relations
Outline
I. Historical perspective
a. Two interrelated dimensions:
i. Relationships between labor and management organizations
ii. Organizational characteristics of labor organizations.
b. Criteria for comparing the effectiveness of a labor organization:
i. A labor organization’s structural and financial stability
ii. Its ability to work within the established political and economic system,
particularly the wage system
iii. The degree to which the broader social environment, such as laws, media, and
public opinion, is supportive or opposed to a labor organization’s goals and
tactics
iv. The ability of union leaders to identify and satisfy members’ goals and interests
II. 1869 to World War I
a. Brief overview of unions in the U.S. before 1869
i. Guilds, joint associations of employers and craftspeople, local markets, small
firms
ii. Factory system in 1850s, improved transportation, larger markets, larger Firms
iii. Article I, Section 8 of U.S. Constitution grants Congress the right to pass laws
regulating interstate commerce which includes labor laws
iv. Common law doctrine still in use today is the employment-at-will doctrine
v. The common law criminal conspiracy doctrine used by employers against unions
was ended by the Commonwealth v. Hunt decision
vi. The courts continued to apply the civil conspiracy doctrine.
vii. A labor Injunction is a court order restricting certain activities in a labor dispute
viii. Many employers required their employees to sign yellow-dog contracts, which
stipulated that employees may not join or organize a union
b. Application of antitrust legislation to labor unions
i. Sherman Antitrust Act (1890) – restricts power of corporations to engage in anti-
competitive practices
ii. Loewe v. Lawlor case (Danbury Hatters) – union-organized boycott of Loewe
and company was declared illegal
iii. Clayton Antitrust Act (1914) specifically allowed the existence of labor unions
iv. Interpretations of Clayton by Supreme Court watered-down its effectiveness as it
became easier for employers to get labor injunctions
c. The Knights of Labor (KOL)
i. Goals included long-range economic and social reforms, which were greatly
influenced by personal philosophy of Powderly
ii. Pyramid-style organizational structure with centralized authority resting at the
top
iii. Strategies included political actions, education, encouragement of cooperatives,
and active avoidance of strikes
iv. The KOL failed because of faulty assumptions about:
1. The halting and reversibility of technological advancements
2. The extent shared interests of employers and employees and among
different types of employees
3. The lack of protective legislation for unions
4. The lack of leadership identification with members' interests
d. The eight-hour workday movement and the Haymarket Riot (1886)
i. Samuel Gompers strongly advocated the eight-hour work day
ii. Violent aftermath (police and citizens killed) resulted in a backlash against
organized labor which included the KOL
e. The emergence of the American Federation of Labor (AFL)
i. Formed under Gompers’ leadership from national unions expelled from the KOL
ii. Is not one big union; instead member unions join Federation for its services and
retain their separate identities
iii. Goals included an emphasis on short-range material benefits (economic
betterment), enhancement of the existing capitalist industrial system, and
avoidance of long-term philosophical (social reform) commitments
iv. Strategies and tactics of the AFL:
1. The use of striking as a viable collective bargaining tactic
2. Increased involvement in the political arena
3. To enhance the public status and reputation of organized labor and the
collective bargaining process
v. Organization of the AFL
1. Exclusive union jurisdiction for each craft or trade
2. Decentralized authority through voluntary association
f. The Homestead Incident (1892)
i. Violent confrontation over wages at the Carnegie Steel Works
ii. Although it represented a victory for management, the strike strengthened the
AFL by demonstrating to employees the organization's concern for helping its
members
g. The Pullman Strike (1894)
i. Protest over unilateral wage cuts while prices for rent and food in the company-
owned town remained the same
ii. The American Railway Union (independent from the AFL) faded out of
existence owing to negative public opinion; the use of federal troops and
injunctions; Pullman management resistance, and lack of support by the AFL
h. The Industrial Workers of the World (IWW)
i. Organized in 1905 with the objective of overthrowing the existing capitalistic
system by any means possible
ii. Failed because of a lack of permanent membership and financial base, inability to
appeal to members' interests, being identified with sabotage and violence, and
alienation of the news media and government officials
iii. Red Scare gives reason to pass criminal syndicalism laws and Sedition laws, such
as the Espionage Act of 1917 and the Sedition Act of 1918
III. World War I to World War II
a. Union organizing after World War I: Problems and prospects
i. Post-war economic conditions led to unsuccessful strikes that weakened unions
ii. Union membership declined in the 1920s due to aggressive counteractions by
employers and organized labor’s inability to overcome anti-union sentiment
among potential union members
iii. Recognition strikes lead to passage of the Railway Labor Act
b. Counteractions by employers
i. Open shop movement (American Plan)
ii. Blacklisting
iii. Industrial spies
iv. Mohawk Valley Formula
v. Employer paternalism
vi. Employee representation plan (ERP) or company union
vii. Use of scrip payments
c. Labor’s inability to overcome anti-union sentiment due to:
i. Good economic conditions in “Roaring” 1920s
ii. Corruption and racketeering in unions (sweetheart contracts)
iii. Infiltration by political radicals and communists
d. Rise of the Congress of Industrial Organization (CIO) and industrial unionism
i. AFL did not want to enroll semi-skilled employees. CIO broke away from the
AFL to organize employees in mass production industries (steel, auto, electrical,
etc.).
ii. CIO membership grew quickly owing to strong leadership, realistic goals (similar
to AFL), effective use of the sit-down strike, passage of favorable legislation (the
Wagner Act), and positive changes in employee attitudes towards union
IV. World War II to the Present
a. Developments in organized labor since World War II
i. New collective bargaining issues Unions directed efforts toward job security in
the face of technological advances, new types of benefits, and wages tied to
fluctuations of economic cycles, such as cost-of –living adjustments
ii. Organization of women, minorities, and professionals in the public and private
sector service industries
iii. Merger of the AFL-CIO in 1955
b. Formation of the Change to Win Federation
i. Voluntary departure of seven large national unions from the AFL-CIO
ii. Dispute over the allocation of resources for organizing activities and grass-roots
direct political action
iii. Recent movements to reunite the labor movement
c. Aspects of organized labor unchanged since World War II
i. Exclusive representation
ii. Collective bargaining agreements
iii. Government policies of non-intervention in labor relations
iv. Unions involvement in politics
v. Difficulty in achieving consensus among unions and among union members
vi. Continued pursuit of short-range economic and job security goals instead of
long-range reform
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Discussion Questions
1. Discuss the similarities and differences between the Knights of Labor (KOL) and the
Industrial Workers of the World (IWW).
Both KOL and IWW adopted the “one big union” approach. They both focused too much on
2. Select an existing national union and use the four criteria mentioned in the introduction of
this chapter for evaluating the strengths of that labor organization. Using the same criteria,
discuss why the AFL survived and the IWW faded into obscurity.
Answers will vary. In many respects the IWW violated all the criteria of labor organization
success as it:
3. Explain how the Haymarket Riot, Homestead Strike, and Pullman Strike helped as well as
hurt the AFL.
All three incidents harmed the AFL to the extent of unfavorable publicity, although the AFL
accounts (and the courts) found the company more to blame than the employees. Indeed,
4. Discuss some employer tactics used to prevent or minimize union membership growth prior
to the passage of the National Labor Relations (Wagner) Act in 1935. Which, if any, of these
tactics would be lawful today? What anti-union tactics are used today?
5. Discuss some key similarities and differences between the AFL and the CIO.
6. In your opinion, does having two different existing labor federations (AFL-CIO and Change
to Win) strengthen or weaken the ability of organized labor to represent the interests of
employees today? Support your position.
The Change to Win federation, although less formally structured than the AFL-CIO, still
shares many of the same basic principles and philosophies as unions affiliated with the AFL-
7. Some experts predict that in the future there are likely to be fewer but larger labor
organizations. Discuss some advantages and disadvantages of the so-called One Big Union
approach to representing employees’ interests.
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
• Strength in numbers—unions that are capable of causing significant disruptions in the
global economy or that can exert strong effects on the political system will be paid
attention to.
• An obvious disadvantage of One Big Union is one similar to the KOL’s assumption that
all types of employers and employees share identical employment interests. Another
disadvantage will be maintaining focus and discipline in an organization of the
magnitude that would truly be One Big Union.
Exploring the Web
History of the Labor Movement
1. Key People: Bureau of Labor Statistics, Department of Labor, AFL-CIO
2. Labor Unions: Knights of Labor (KOL), Industrial Workers of the World (IWW)
3. The Pinkertons: Public Broadcasting Service (PBS)
4. Pullman Strike: Chicago-Kent College of Law Web site, PBS Online NewsHour
5. Haymarket Riot: Digital Collection at the Chicago Historical Society
Suggested Readings and Term Paper Topics
1. Analyze the tactics and "union organization" portrayed in Steinbeck's (1936) classic,
In Dubious Battle. Were the tactics used by labor effective? Why or why not? Does the
novel support or refute information in your textbook?
2. Analyze the role of "poetry" in the history of the labor movement. What are the major
themes? What influence did these poems have?
Possible references:
Chaplin, R. (1922). Bars and shadows: The prison poems of Ralph Chaplin. New York: Leonard Press.
3. Analyze one of the following "labor novels." How does it portray the labor movement?
Labor unions? Is the portrayal accurate or biased? If biased, then how? If accurate,
then what insights do you learn from this type of approach to studying unions that you
do not learn from a text? How do the unions’ activities correspond to or differ from the
theories and concepts covered in the text and the class?
Possible references:
Ashley, C. (1930). The Rambling Kid. London: Faber.
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Garland, H. (1903). Hesper. New York: Harper. Reprinted 1974, St. Clair Shores, MI: Scholarly Press.
Gilden, K. B. (1989) Between the hills and the sea. Ithaca, NY: ILR Press.
McCaig, D. (1980). ButtePolka. New York: Rawson, Wade.
Nicholson, P.Y. (2004). Labor’s story in the United States. Philadelphia : Temple University Press.
4. Eugene V. Debs, leader of the American Railway Union became a socialist and even
ran for the presidency of the U.S. in 1908 as the socialist candidate. Why did Debs
embrace socialism? Was socialism an appropriate solution for the problems Debs saw?
What role would labor play in Deb's vision of a socialist society?
Possible references:
Coleman, M (1930). Eugene V. Debs: A man unafraid. New York: Greenberg.
5. Analyze the labor movement in EITHER (a) Wisconsin, or (b) Minnesota. You can use
any time frame you prefer. What characteristics best describe this labor movement?
What makes it different from most of the rest of the nation during this time period?
What were its chief successes? Failures? How does it compare to the ideas covered in
this course?
Possible references:
Faue, E. (1991). Community of suffering & struggle: Women, men, and the labor movement in Minneapolis,
6. Agree or disagree: Henry Ford I's philosophy of labor relations continues to be a model
for industry.
Possible references:
Crowther, S. and Ford, H. (1922). My life and work. NY: Doubleday.
7. Analyze the Lawrence strikes. What started the strikes? Who is to blame for the
violence that followed? Which side do you support? Why?
Possible references:
Arnold, Dexter (1996). Ethnic diversity and labor unity: Reflections on the Lowell textile strike of 1912.
Labor's Heritage, 8,(2), 56-77.
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Bedford, H. F. (1966). Socialism and the workers in Massachusetts, 1889-1912. Amherst: University of
Massachusetts Press.
Cahn, W. (1980). Lawrence Nineteen Twelve: The Bread and Roses Strike. Phillipsburg, NJ: Pilgrim.
Yellen, S. (1936). American labor struggles. New York: Harcourt, Brace.
8. Analyze the role of "song" in the history of the labor movement. What are the major
themes? What influence did these songs have?
Possible references:
9. Agree or disagree: "Throughout the history of the labor movement, the biggest threat
to labor has not come from employers but from radicals within the labor movement
itself." Support your position.
Possible references:
Grob, G. N. (1976). Workers and utopia: A study of ideological conflict in the American labor movement.
10. Analyze the role of theatre in the labor movement in American history.
Possible references:
220.
11. Women's groups have, on the whole, faced substantial difficulties in establishing and
maintaining women's labor unions. One exception is the Association of Flight
Attendants (AFA)/Airline Stewardess Association (ALSA). Why were they successful?
What are their prospects for the future?
Possible references:
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Milkman, R. (Ed.) (1985). Women, Work and Protest: A Century of U.S. Women's Labor History. NY:
Routledge and Kegan--Methuen.
Nielsun, G.P. (1982). From sky girl to flight attendant: Women and the making of a Union. Ithaca, NY:
ILR Press
Soldon, N C. (ed.) (1985). The world of women's trade unionism: Comparative historical essays. Westport,
CT: Greenwood Press.
12. Analyze the career of John L. Lewis, former leader of the United Mine Workers. What
accounted for his successes and failures?
Possible references:
13. Selig Perlman and John R. Commons have written extensively on labor history and
have formulated two similar theories to explain the rise of modern unions. Pick ONE of
these authors. Critique a portion of his theory, explaining his ideas. With which parts
of the theory do you agree? With which do you disagree? Support your opinions.
14. Please discuss ONE of the following topics:
a). How do Marxist and Neo-Marxist scholars interpret the history of the U. S. labor
movement and the present industrial relations system? Do you agree or disagree
with their major conclusions? Why?
b). Now that communism has collapsed in most of the industrialized world, what
function will the ideology serve in the future (if any)? Is it still a viable ideology?
Be sure to relate your answer to the labor movement.
Possible references:
15. Analyze the "Utopian" societies founded in the late 1800s and early 1900s. How did
they deal with worker-manager relations? Were they successful?
Why or why not?
Possible references:
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Shor, F. (Winter, 1989). Contradictory tendencies in the emergence of American socialism and utopian
Ruskin Colony of Tennessee. Journal of Popular Culture, 12, 21-27.
Stehle, J. F. (Nov. 29, 1989). How some communists became capitalists overnight. The Wall Street Journal,
Vol. LXXI, No. 32, page A18, Cols. 3-6.
16. Write a paper on migrant labor and unions. You might address some or all of the
following questions: Historically, what were the major issues facing migrant labor?
Have they been resolved? What role have unions played in addressing migrant
workers' concerns? What issues remain to be addressed concerning migrant workers
today? What recommendations do you make?
Possible references:
17. What factors led Samuel Gompers to create the American Federation of Labor? Why
was he successful when the Knights of Labor had failed?
Possible references:
18. Analyze the life of activist and socialist "Mother Jones." What were her successes and
failures? What factors do you think accounted for her successes and failures? What
impact did she have upon organized labor? Why? Do you agree or disagree with her
philosophy and the solutions she offered? Support your views.
Possible references:
19. Analyze the life of activist Elizabeth Gurley Flynn. What were her successes and
failures? What factors do you think accounted for her successes and failures? What
impact did she have upon organized labor? Why? Do you agree or disagree with her
philosophy and the solutions she offered? Support your views.
Possible references:
20. Agree or disagree: "The Anarchists were right all along." Be sure to relate your
opinion to the labor movement.
Possible references:
Dubofsky, M. and Dulles, F.R. (2004). Labor in America: A history. 7th edition. Wheeling, Ill. : Harlan
21. Analyze the life of activist Joe Hill. What were his successes and failures? What factors
do you think accounted for his successes and failures? What impact did he have upon
organized labor? Why? Do you agree or disagree with his philosophy and the solutions
he offered? Support your views.
Possible References:
22. We all have heard the story of how Helen Keller learned to communicate. But few
people know that she later communicated her opinions on the labor movement. What
were her opinions? Do you agree or disagree with her views? Support your position.
Possible references:
Foner, P. S. (1966). Helen Keller: Her socialist years; writings and speeches. New York: International
23. What role did violence serve in the history of U.S. labor? How was violence used by the
labor movement? How was it used against the unions? How did the conditions and
objectives of violence in the U.S. differ from or were similar to the violence of the
European labor movement? How does the legacy of violence (or the lack thereof) shape
U.S. labor-management relations today? Be sure to support your position.
Possible references:
Adamic, L. (1931). Dynamite: The story of class violence in America. New York: Viking. Reprinted:
24. Analyze the career of "Big Bill" Haywood. What accounted for his successes? What
accounted for his failures? Was he a dangerous radical or a visionary?
Possible references:
25. Agree or disagree: "If it wasn't for the communists, factory workers still wouldn't be
unionized today."
Possible references:
26. Analyze the rise and fall of the Industrial Workers of the World (IWW--"the
Wobblies"). What factors gave birth to this organization? What factors accounted for
its successes? What factors led to its demise? Do you believe that the IWW leaders
should have been arrested during the "Red Scare"? Or do you believe that the IWW
should have been destroyed earlier? (Another, related term paper topic: How does the
"new" [modern] IWW compare to its predecessor?) Support your position.
Possible references:
27. Who were the Molly Maguires? Were they common criminals? Or were they heroes of
American labor?
Possible references:
28. Analyze the role of labor during World War I. What position did the two major unions
(e.g. AFL, IWW) take with regard to the conflict. Which was correct? Why? How did
each seek to accomplish its goals?
Possible References:
29. Analyze the "Red Scare" of the early 1920s, relating it to the labor movement. What
accounted for the Red Scare? Was it appropriate for the times? What are the
implications for American policy toward "radical" elements within unions today?
Possible references:
Coben, S. (1991). A Study in nativism: The American red scare of 1919-1920. Irvington Publishers.
30. What factors led to the formation and rise of the Knights of Labor? How did it differ
from previous union confederations? How well did it achieve its objectives?
Possible references:
Nicholson, P.Y. (2004). Labor’s story in the United States. Philadelphia : Temple University Press.
31. Analyze the role Upton Sinclair played in the labor movement, either directly in his life
or in his writings. Do you agree or disagree with his views? Support your positions.
Possible references:
Blotner, J. (1966). The modern American political novel, 1900-1960. Austin, TX: University of Texas
32. Child labor is something that we think of as disappearing during the 1930s. But some
say that child labor still exists in this country. Write a paper about the history of child
labor in the U.S. and its present manifestations. What, if anything, can/should be done
about this problem?
Possible references:
33. Write a paper on the history of Chinese Labor prior to World War I (1914-1918) in the
U.S. What were the unique issues involving this group? What were the responses from
labor unions? What laws were passed? What caused these responses? Were these
responses appropriate and effective?
Possible references:
Asher, R., & Stephenson, C. (1990). Labor divided: Race and ethnicity in United States labor struggles,
34. Generally, were Christian fundamentalists and evangelicals supportive of labor
unions or opposed to labor unions prior to World War II? Did the views of the laity
generally agree with or differ from those of the pastors and church leaders?
Possible references:
35. Who was Covington Hall? What was his viewpoint? What role did he play in the
history of the labor movement?
Possible references:
36. What role have women of color played in the history of the labor movement?
Possible references:
Asher, R., & Stephenson, C. (1990). Labor divided: Race and ethnicity in United States labor struggles,
37. Who were the Progressive Mine Workers of America? What were there positions on
important labor issues? How did they differ from other coal mining unions?
Possible references:
38. What were the Virden riots? What caused them? Who was right?
Possible references:
Cary, L. L. (1975). Adolph Germer and the 1890s depression. Journal of the Illinois State Historical
