the late 30s impact on labor unions
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The Late 30s Impact on Labor Unions. By Mary Jansen. What Are Labor Unions?. - PowerPoint PPT PresentationTRANSCRIPT
By Mary Jansen
THE LATE 30S IMPACT ON LABOR
UNIONS
What Are Labor Unions?Labor Unions: an organization of workers formed to protect the rights and
interests of its members---an organization of workers formed for the purpose of advancing its members' interests in respect to wages, benefits,
and working conditions.
• In the early 1930s, the future of labor unions seemed dim.
• Pro-union stance of the Roosevelt administration & congress enacted legislature form the early New Deal.
• Wagner Act of 1935.
A History of Labor Unions
1866:National Labor Union founded
Colored national Labor Union
formed
Federation of Organized Trades and Labor Unions
formed
1866 1881 1886 1929 1938
1869 1885 1926 1935 1940
First labor Union strike
American Federation of
Labor founded
Discrimination against union
members forbidden
Great Depression
begins
National Labor Relations Act and
Social Security Act passed
Fair Labor Standards Act establishes first
minimum wage
John L. Lewis resigns
-President of the UMWA from 1920-1960. -Giant among American leaders in the first half of the 20th C.-Advised presidents and challenged corporate leaders.
-Nearly four million workers joined labor organizations and wages were raised by over a billion dollars during his first year. -Helped create some of the nation's leading labor unions including the CIO
"I have pleaded your case from the pulpit and from the public platform--not in the quavering tones of a feeble
mendicant asking alms, but in the thundering voice of the captain of a mighty host, demanding the rights to which free
men are entitled.” -John L. Lewis
1880-1969: -Born in Lucas, Iowa, on Feb.12 -1907 married Myrta Edith Bell
-Died at his home in Alexandria, Va.
John L. Lewis
Eugene Debs
-Born November 5, 1855, Terre Haute, Indiana-Died October 20, 1926, Elmhurst, Illinois
-1875: helped organize a local lodge of the Brotherhood of Locomotive Firemen-1893: President of the new American Railway Union-His union won national prominence after a successful strike for higher wages against the Great Northern Railway-May –November 1895: In
jail for his role in the Chicago Pullman Palace Car Company Strike.-1897: Converted to socialism and led the establishment of the Socialist Party of America (1900, 1904, 1908, 1912, 1920)
-Won support through his personal warmth, integrity, and sincerity. -Extremely effective as a public speaker. One of his best speeches, “You Railroad Men,” was given in 1906.
Primary SourceYou Railroad Men! -1906
In this address, Debs is trying to get the men of the railroad union to support him in his political campaigns.
“The president was really addressing his own brethren.”
“President Roosevelt among other things, said: “I would be false to your interests if I failed. to do justice to the capitalist as much as to the wage-
worker.””
“I believe it can be said with truth, that I personally know, more railroad employees, and
maybe claimed as my personal friends.”
Primary SourceYou Railroad Men!
Origin:“You Railroad Men”
speech given by Eugen V. Debs in
1906.
Debs, a former Railroad union leader, is trying to
gain the support of railroad workers in his political campaigns.
Purpose:
Value:This speech shows Debs views on politics and unions. Even
though he is no longer a part of the railroad unions, he still feels that union workers deserve the
best. Also, he puts down President Roosevelt showing his
socialist political viewpoint.
Limitation:This speech was given solely for railroad workers. The examples Debs uses to gain their support would only be relative for men
working in railroad unions. Also, because Debs is trying to gain
support, he may not be sharing his complete opinions. He is most likely only sharing the opinions that will gain him the support he wants.
Committee for Industrial Organization:Origins
Samuel
Gompers established the
American Federation of Labor (AFL) in
1886.
Gompers’ death in 1924 brought about difficulties in
the AFL.
In 1935, John L. Lewis (an AFL
member) formed the Committee for Industrial Organization
(CIO).
The CIO was
originally part of the
AFL.
In 1937, the AFL expelled all members of the CIO.
The CIO became an umbrella
organization for other
unions.
The Committee
for Industrial Organization
later became the Congress of Industrial
Organizations.
Committee For Industrial Organization:ContinuedThe CIO quickly
attracted thousands of
workers due to strikes in other
Unions.
In 1937, steel company workers
went on strike because of low
wages and to try to convince their employers to join
the CIO
This strike was not as
successful because the
Steel Companies did not recognize Unions until
1941.In 1955,the AFL and CIO
reunited together as
the AFL-CIO. The AFL-CIO was the largest
union in the United States.
The percentage of union workers
declined beginning in the 1950s.
In 1983, only twenty
percent of American workers
belonged to a union
“Keynesian Economics”
Temporary way to boost economy
through the government
Lowered taxes so people
spend more
Government spends more (new deal-
bridges and roads-labor
unions)
What it did: The Theory:Aggregat
ed Demand
total spending in the economy
answered the question of how
to generate growth despite rising wages
A Zero-Sum
GameIf one side gains,
the other side loses
if profits rose, wages must be kept down or
lowered.
“Keynesian Economics:” How did it Impact Recovery?
Keynesian Economics improved the economy through the First and Second New Deal.
Government thought they needed to slow things down and tried to reverse Keynesian Economics.
Interest rates were raised in 1936 but it was done too quickly. This lead to the recession of 1937-38.
The Slow Economic Recovery of 193719
33The USA economy began to recover in the second quarter 19
34-3
5The recovery was stalled
1935
-37By late
1935, a vigorous recovery was underway but ended when a new recession occurred in 1937
Recovery
In the early 1930s
American industries
were controlled by the NRA and AAA.
The government was not pleased
with workers not
joining labor
unions.
The supreme court ruled
the NRA unconstitutional in 1935
and the AAA in 1936.
However, by 1937,
labor unions were
recognized at many
large firms.
No longer under the control of
these organizations
, industry production expanded
and recovery began in
1935.
Labor cost increase
was contradicte
d by a monetary
policy.
Many workers
declined to join labor
unions because of
the recovery.
The Slow Economic Recovery of 1937
By June of 1937, this
slow recovery was over
and a new recession occurred.
Reasons
The Slow Economic Recovery of 1937Why Slow?
Disputed
Roosevelt's new deal caused
business leaders to question
whether their private
property rights and its income stream would be protected
they grew less willing to invest in
assets
Roosevelt had to use antitrust
laws to get businesses
to cooperate
This increased regulation
which reduced
businesses’ ability to act independentl
y
the majority of the
public was unsure of
this regime.
“Regime uncertaint
y”
The New Recession of 1937-38
• 33% declineIndustrial Production
• 35% declineWages
• 13% declineNational Income
Unemployment
• Rose 5% (40 million lost jobs)
What Happened Fall 1937 to Summer 1938?
The New Recession of 1937-38How did we get out of it?
“Roosevelt
Recession”
FDR asked Congress in April of 1938 to
support a substantial increase in federal
spending and lending (Keynesian Economics)
Congress supported
FDR’s request and the
recovery was soon underway
again
Why did this Recession Occur?During the slow economic recovery of 1937, The
government tried to reverse Keynesian Economics and two contradicting issues forced the country
back into a recession.Increase of Real labor Costs• labor unions became recognized at
large firms• New social Security taxes in 1936
and 1937• tax on undistributed corporate
profits *these three policies came together and costs jumped without increase in demand and firms had to reduce production and lay off workers.
Monetary Policy• Banks, in fear of bank runs, began
to hold large excess reserves.• if lending of these reserves
continued, massive inflation would occur
• to stop this from happening, officials and the Federal Reserve System doubled reserve requirements and whipped out excess reserves.
• Banks began to restore the lost reserves by reducing loans causing the stock of money to lower.
Wagner-Steagall Housing Act1937: The Wagner-Steagall Housing Act established the
United States Housing Administration responsible for making publicly subsidized housing.
For each new public housing unit created, a unit of substandard quality
must be removed.
Decisions were left to local authorities
Set very low maximum income requirements for public housing
residents.
Federal government provided funds
Ownership and operation of housing was the responsibility of local
authority.
• -ensured that the quality of housing would increase, but not the quantity.
• -Let communities decide weather they wanted public housing or not
• -Kept communities segregated• -Intended to alleviate fears that
public housing would compete with the private market
• -Led to high concentrations of poverty within public housing projects
Fair Labor Standards ActEstablish
ed:
Minimum wage
Overtime pay
Record keepingyouth
employment standards
affecting full-time and part-time workers in
the private sector and in
Federal, State, and local
governments
Did not Require:
vacation, holiday,
severance, or sick pay
meal or rest periods,
holidays off, or vacations
premium pay for weekend or holiday work
pay raises or fringe
benefitsa discharge notice, reason for
discharge, or immediate payment of final wages to terminated
employees
1938:
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