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Big Business and Labor

Big Business and Labor. Andrew Carnegie . Entered the steel business in 1873 Modeled his industry off of Great Britain’s By 1899 he manufactured more steel than all companies in Great Britain combined Business Strategies

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Big Business and Labor

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  1. Big Business and Labor

  2. Andrew Carnegie • Entered the steel business in 1873 • Modeled his industry off of Great Britain’s • By 1899 he manufactured more steel than all companies in Great Britain combined • Business Strategies • Vertical integration-a process in which he bought out all his suppliers (ex: coal fields and iron mines, ore freighters, and railroad lines • Horizontal integration-having companies producing similar products merge to have a monopoly • Book Page 448

  3. Social Darwinism • Grew out of the English Charles Darwin’s theory of evolution • Helped regulate economics with laissez faire • Natural law governed business not the government

  4. “If ya can’t beat em, Join em!” • Many industrialists pursued horizontal integration in the form of mergers • Holding companies • Set up monopolies by setting up a company that did nothing but hold stocks

  5. Rockefeller • John D. Rockefeller • Rockefeller’s Standard Oil Company of Ohio • Formed trust agreements • People in the trust turned their stock over to a group of trustees • These companies were in turn entitled to dividends on profits earned by the trusts • Not Legal Mergers!

  6. Robber Barons • Rockefeller earned high profits by under paying his employees • Then was able to sell oil at a lower price • Once he controlled the market he would hike the price back up • Rockefeller, ruthless businessman, heavy philanthropist

  7. “What a funny little government”

  8. Sherman Antitrust act • Made it illegal to form a trust that interfered with free trade between states or other countries The act never defined the term “trust” and the government eventually quit trying to enforce the act

  9. Labor Unions Emerge • Long hours and Danger • 12 hour work days • Six days a week • No vacation, sick leave, unemployment compensation or workman’s compensation • 1882 an average of 675 laborers were killed in work related accidents EACH WEEK!

  10. Family • Between 1890-1910 • Women working for wages doubled from 4 million to more than 8 million • 20% of boys under the age 15 • 10% of girls under the age 15 • Some as young as 5 years old

  11. Labor Organizing • 1866 first labor union formed • National Labor Union (NLU) • Refused to admit African Americans lead to the creation of the CNLU • NLU wanted to link existing local unions • Knights of Labor • “An injury to one is the conern of all” • Both supported • 8 hour workday • “equal pay for equal work”

  12. Union Movements • Samuel Gompers led the Cigar Makers’ International Union to join with other craft unions to form the American Federation of Labor (AFL) • Focused on • Collective bargining on wages, hours and working conditions • Used strikes as a major tactic • Led to the average weekly wages to rise from $17.50 to $24 • Work week from 55 hours to 49 hours

  13. Strikes turn violent • The Great Strike of 1877 • B&O railroad workers protest wage cut • Federal troops had to be called in to end the strike after several state governors' had to ask President Hayes to stop the strike • The Haymarket Affair • 3,000 people gather at Chicago’s Haymarket Square • Protesting police brutality after one striker had been killed and several injured • Someone tossed a bomb into the police line and the police fired on the workers • Seven police officers and several workers died in the following chaos

  14. Strikes turn Violent • The Homestead Strike • Three detectives and nine workers died, steelworkers forced out the Pinkerton Detective Agency and kept the plant closed until the National Guard arrived • The Pullman Company Strike • More than 2,000 workers laid off and wages cut by 25 to 50% for the others • Many workers were taking home less than $6 a week • Pullman hired strikebreakers and federal troops were sent in • Pullman fired most of the strikers and blacklisted many of them so they would never be hired again

  15. Women Organize • Marry Harris Jones- supported the Great Strike of 1877 and later organized for the United Mine Workers of America • Triangle Shirtwaist Factory • Fire broke out on March 25 in New York City • Doors had been locked to prevent theft • Only one door could be opened, but it was blocked by fire • The women were on the 8,9, and 10th floors and the New York Fireman’s latter only reached 6 floors high 146 women died • Public was outraged when the jury acquitted the factory owners of manslaughter • Triangle Fire

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