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Evolution of Labor in the American Economy

Explore the historical evolution of wage labor in the American economy from early farmers to industrialization, the rise of labor unions, working conditions, and the impact on workers and employers. Discover key movements like the Knights of Labor, American Federation of Labor, and the tools used by both labor and business. Learn about landmark legislations like the Department of Labor and Taft-Hartley Act, and the collaborative efforts of AFL-CIO in shaping the modern labor force.

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Evolution of Labor in the American Economy

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  1. Chapter 14 Section3 Labor in the American Economy

  2. 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.)

  3. 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

  4. 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

  5. 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

  6. 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

  7. 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

  8. 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)

  9. 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

  10. 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)

  11. 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

  12. 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

  13. Taft-Hartley Act of 1947Landrum –Griffin Act of 1959*****************************Put limits on the powers of unions and union leaders

  14. 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

  15. 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

  16. 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.

  17. 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

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