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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.).
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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