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6.7 Labor in the Gilded Age

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As industrialization boomed during the Gilded Age, the gap between the rich and the poor expanded significantly. Industrialization led to the growth of large factories and the rise of big business, which concentrated wealth and power in the hands of a small group of industrialists and business leaders. This led to a significant increase in economic inequality.

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Workers during this time often worked long hours in unsafe and unhealthy conditions for very low pay. Many of these workers were immigrants or members of minority groups who faced discrimination and were often paid even less than other workers. Children were also commonly employed in these harsh conditions, often working long hours and performing dangerous tasks with no legal protections or compensation for injuries.

This led to the rise of labor unions and the labor movement, as workers sought to improve their working conditions, wages, and rights. However, as discussed earlier, management often used various tactics to suppress these movements and maintain the status quo.

Anti-Union Techniques

During the Gilded Age, management often held a significant advantage over organized labor in terms of resources and power. With a surplus of cheap labor, management had the ability to replace striking workers with strikebreakers or scabs, who were unemployed persons desperate for jobs. This made it difficult for strikes to be successful and weakened the power of labor unions.

In addition to using strikebreakers, management also used a variety of tactics to defeat unions and suppress labor movements.

These tactics include:

Lockout: closing a factory or workplace to prevent workers from going to work and breaking a labor movement before it could get organized. Blacklists: names of pro-union workers circulated among employers, making it difficult for those workers to find employment. Yellow-dog contracts: workers being told, as a condition for employment, that they must sign an agreement not to join a union. Calling in private guards or state militia to put down strikes. Obtaining court injunctions: court orders to stop a strike, making it illegal for workers to continue their strike action. These tactics were commonly used by management during the Gilded Age to suppress labor movements and weaken unions, and were a significant factor in the struggle between management and labor during that time period.

Labor Organizations

The National Labor Union (1866-1876) was one of the first major labor organizations in the United States. It sought to improve working conditions for all workers regardless of skill level or trade. The NLU advocated for an eight-hour workday and better workplace conditions, but declined after the Panic of 1873 as economic depression made organizing difficult.

The Knights of Labor, formed in 1869, expanded on this inclusive vision by accepting all workers regardless of skill, race, or gender. Their membership peaked at approximately 700,000 in the mid-1880s. The Knights advocated for:

  • Eight-hour workday
  • Abolishment of child labor
  • Equal pay for equal work
  • End to monopolistic trusts
  • Creation of worker cooperatives

The Knights of Labor suffered a significant decline after the Haymarket Riot of 1886, when public opinion turned against labor organizations despite their lack of direct involvement.

The American Federation of Labor (AFL), founded in 1886 under Samuel Gompers, took a different approach. Rather than seeking broad social change, the AFL focused on practical goals like better wages, hours, and working conditions. The AFL organized workers by craft rather than industry, focusing primarily on skilled workers. This practical approach proved effective, and by 1901, the AFL had become the largest labor organization in the United States, though it largely excluded unskilled workers, women, and minorities.

Major Labor Conflicts

Several major conflicts highlighted the intense struggle between workers and management during this period:

Great Railroad Strike (1877)

The first nationwide strike in American history began when the Baltimore & Ohio Railroad cut wages during an economic depression. The strike quickly spread across multiple railroads and cities, prompting President Hayes to send federal troops to suppress it. Dozens of workers died in violent confrontations, and while the strike ultimately failed, it demonstrated labor's potential power and the government's willingness to intervene on behalf of business.

Haymarket Riot (1886)

During a Chicago labor demonstration supporting the eight-hour workday, someone threw a bomb at police, killing several officers. Though the bomber's identity remains unknown, eight anarchist leaders were arrested and convicted, with four executed. The incident created significant backlash against the labor movement and severely damaged the Knights of Labor, pushing American labor toward more moderate approaches.

Homestead Strike (1892)

At Carnegie Steel in Homestead, Pennsylvania, workers struck against wage cuts and anti-union policies implemented by manager Henry Clay Frick. When Frick hired Pinkerton guards to secure the plant, armed workers fought back in a battle that left several dead. Pennsylvania's governor dispatched the state militia, which allowed the plant to reopen with non-union workers. The defeat crushed the steel workers' union and kept the industry largely non-unionized for decades.

Pullman Strike (1894)

Workers at the Pullman Palace Car Company protested wage cuts while the company maintained high rents in its company town. The American Railway Union under Eugene V. Debs organized a sympathy boycott that paralyzed rail transportation across much of the country. President Cleveland sent federal troops to break the strike, claiming it interfered with mail delivery. The government obtained an injunction against strike leaders, and when Debs defied it, he was imprisoned. The Supreme Court later upheld this use of injunctions, establishing a powerful legal weapon against labor activism.

Economic Realities and Workforce Changes

Despite these conflicts, the Gilded Age brought mixed economic results for workers:

  • Improved Living Standards

    • Decreasing prices for consumer goods increased real wages for many
    • Greater access to manufactured products for average Americans
    • Some working-class families saw improved living conditions
  • Persistent Inequality

    • Wealth gap between rich and poor grew dramatically
    • Benefits of industrialization remained unevenly distributed
    • Industrial profits concentrated among business owners and investors
  • Evolving Workforce

    • Child labor increased in factories and mines
    • Women entered industrial jobs in growing numbers, particularly in textiles
    • Immigrants from Southern and Eastern Europe filled factory positions
    • African Americans faced segregated and limited industrial opportunities

The labor struggles of the Gilded Age laid the groundwork for workplace reforms that would emerge during the Progressive Era. While workers faced powerful opposition during this period, their organizing efforts eventually led to child labor laws and workplace safety regulations. These conflicts reflected the economic paradox of the era: even as real wages increased for many workers due to falling consumer goods prices, the wealth gap between rich and poor expanded dramatically. The period saw significant changes in workforce composition, with greater numbers of women, children, and immigrants filling industrial positions. Despite fierce resistance from business leaders, labor organizations persisted in their fight for better wages, hours, and dignity, helping to define American industrial relations for generations to come.

🎥 Watch: AP US History - Industrialization and Gilded Age

Key Terms to Review (30)

American Federation of Labor (AFL): The American Federation of Labor (AFL) was a national federation of labor unions in the United States founded in 1886. It focused on organizing skilled workers and advocating for their rights, emphasizing practical goals such as higher wages, shorter working hours, and better working conditions. The AFL played a significant role in the labor movement during the Gilded Age and helped lay the groundwork for future labor organizations and policies.
Anti-Union Techniques: Anti-Union Techniques refer to a variety of strategies employed by employers and corporations to prevent or weaken labor unions and their efforts to organize workers. These techniques emerged prominently during the Gilded Age, a period marked by rapid industrialization and the rise of labor movements, where businesses sought to maintain control over their workforce. The goal of these tactics was to discourage union membership and limit the power of organized labor, often through intimidation, legal maneuvering, and manipulation of public opinion.
Big Business: Big Business refers to the large-scale corporate enterprises that emerged during the Gilded Age, characterized by significant capital investment, monopolistic practices, and substantial influence over the economy and politics. This era saw the rise of powerful business magnates who controlled key industries, often leading to tensions with labor groups and prompting political responses aimed at regulating their practices.
Blacklists: Blacklists are lists of individuals or organizations that are denied certain privileges, often in the context of employment or trade. During the Gilded Age, these lists were primarily used by employers to prevent workers who were union members or activists from being hired, effectively stifling labor movements and suppressing workers' rights.
Child Labor: Child labor refers to the practice of employing children in work that deprives them of their childhood, education, and potential, often in hazardous conditions. This phenomenon was widespread during the Gilded Age, as industrialization led to increased demand for cheap labor, exploiting children in factories, mines, and other industries, which raised concerns about workers' rights and social reform.
Coal Strike in Pennsylvania, 1901: The Coal Strike in Pennsylvania, 1901 was a significant labor strike led by the United Mine Workers of America (UMW) against anthracite coal mine operators. This strike highlighted the intense labor conflicts of the Gilded Age, showcasing the struggle of workers for better wages, working conditions, and the right to unionize. The conflict marked a pivotal moment in labor relations, as it drew national attention and prompted government intervention in labor disputes.
Court Injunctions: Court injunctions are legal orders issued by a judge that require a party to do or refrain from doing specific actions. In the context of labor during the Gilded Age, these injunctions were often employed to curb labor strikes and protests, reflecting the tensions between workers' rights and corporate interests. They played a significant role in labor relations, as courts frequently sided with business owners, using injunctions to maintain order and prevent disruptions to economic activities.
Economic Inequality: Economic inequality refers to the unequal distribution of income and opportunity between different groups in society. This term highlights how wealth and resources are concentrated among a small percentage of the population while the majority experience limited access to financial stability and upward mobility. Economic inequality is often linked to issues such as labor conditions, civil rights, and social justice movements, making it a crucial aspect of understanding historical and contemporary societal dynamics.
Factories: Factories are large-scale industrial buildings where goods are manufactured through the use of machinery and labor. These establishments became central to the economy during periods of rapid industrial growth, fundamentally altering production methods, labor dynamics, and economic structures. The rise of factories signaled a shift from artisanal, home-based production to concentrated, mechanized manufacturing processes, impacting workforce organization and the nature of work itself.
Gilded Age: The Gilded Age refers to the period in American history from the 1870s to about 1900, characterized by rapid economic growth, industrialization, and significant social changes, all cloaked in a superficial layer of prosperity that masked underlying issues such as political corruption, economic inequality, and social strife. This era saw the emergence of a wealthy elite and a growing middle class, while also witnessing major conflicts over labor rights, immigration policies, and government roles.
Government Intervention in Strikes: Government intervention in strikes refers to the actions taken by government authorities to influence, control, or resolve labor strikes and disputes. During the Gilded Age, this often meant siding with business interests, using law enforcement or military forces to break up strikes, and enacting legislation that limited workers' rights to organize. This intervention reflected the broader tension between labor and management as industrial growth surged and workers sought better conditions.
Great Railroad Strike of 1877: The Great Railroad Strike of 1877 was a nationwide strike by railroad workers in the United States protesting wage cuts and poor working conditions during the Gilded Age. It marked one of the first major strikes in U.S. history, reflecting the growing tensions between labor and industrial capitalists as the nation experienced rapid economic expansion and social upheaval.
Haymarket Riot: The Haymarket Riot was a violent confrontation that took place on May 4, 1886, in Chicago, where a peaceful rally in support of labor rights turned deadly following a bomb explosion and subsequent police gunfire. This event became a pivotal moment in the labor movement, highlighting the growing tensions between workers seeking better conditions and law enforcement, as well as the struggle for an eight-hour workday. The incident significantly affected public perception of labor unions and sparked widespread fear of anarchism and radicalism in the United States.
Homestead Strike of 1892: The Homestead Strike of 1892 was a violent labor dispute between the Amalgamated Association of Iron and Steel Workers and the Carnegie Steel Company at the Homestead Steel Works in Pennsylvania. This pivotal event highlighted the intense struggle between labor and management during the Gilded Age, as workers sought better wages and working conditions while facing aggressive tactics from their employers to suppress union activities.
Immigrants: Immigrants are individuals who move from one country to another, often in search of better economic opportunities, safety, or a new life. In the context of the Gilded Age, immigrants played a crucial role in shaping the labor force, contributing to industrial growth, and influencing cultural dynamics within American society.
Industrialization: Industrialization refers to the process of transforming an economy from primarily agricultural to one based on the manufacturing of goods, involving the use of machinery and factory systems. This shift had profound impacts on social structures, labor dynamics, and economic practices, especially during periods of significant growth and change.
Industrial Workers of the World (IWW): The Industrial Workers of the World (IWW) was a radical labor organization founded in 1905, advocating for the rights of workers and promoting direct action, such as strikes and boycotts. The IWW sought to unite all workers across various industries and skill levels into one large union, emphasizing solidarity and collective bargaining to challenge the exploitation faced by laborers during the Gilded Age. Its members believed in the importance of worker control over production and the eventual establishment of a socialist society.
Knights of Labor: The Knights of Labor was a prominent labor organization in the United States during the late 19th century that aimed to unite all workers, regardless of skill level, gender, or race, to promote social and economic reforms. Founded in 1869, the organization sought to improve labor conditions through collective bargaining, advocating for an eight-hour workday, equal pay for equal work, and the end of child labor. This organization reflects the broader themes of labor movements during the Gilded Age and the significant changes in the workforce during this period.
Labor Movement: The Labor Movement refers to the collective organization and advocacy of workers aimed at improving their rights, wages, working conditions, and overall social justice. This movement emerged prominently during the late 19th and early 20th centuries, reflecting the significant social and economic changes brought on by industrialization and urbanization. As workers faced harsh conditions in factories and industries, they began to unite, form unions, and engage in strikes and protests to push for better treatment and fair labor practices.
Labor Unions: Labor unions are organized associations of workers formed to protect and further their rights and interests in the workplace. These groups emerged prominently during periods of industrialization, where the rapid growth of factories and urbanization created challenging working conditions, leading workers to band together for better wages, hours, and safety standards.
Lockout: A lockout is a labor dispute strategy used by employers to prevent employees from entering the workplace, typically during negotiations over labor contracts. This tactic is often employed to exert pressure on workers and unions by cutting off their access to jobs, pay, and benefits, effectively forcing them to accept the terms set forth by management. Lockouts were particularly common during the Gilded Age, reflecting the tense relationships between labor and management during a time of rapid industrialization and economic change.
Ludlow Massacre, 1894: The Ludlow Massacre was a violent confrontation that occurred on April 20, 1914, in Ludlow, Colorado, involving striking coal miners and the Colorado National Guard. This tragic event highlighted the intense labor struggles during the Gilded Age, particularly in the coal mining industry, where workers faced harsh conditions and sought better wages and union representation. The massacre not only underscored the violent opposition labor movements often faced but also led to greater public awareness and sympathy for workers' rights.
Minority Groups: Minority groups refer to communities that are smaller in number compared to the dominant group in society, often facing social, economic, and political disadvantages. These groups can be defined by various characteristics such as ethnicity, race, religion, or nationality, and they have historically played a vital role in shaping labor dynamics and social movements during periods of change.
National Labor Union (NLU): The National Labor Union (NLU) was the first significant national labor federation in the United States, established in 1866 to advocate for workers' rights and improve labor conditions. It sought to unite various labor organizations and push for reforms such as an eight-hour workday, better wages, and the end of convict labor. The NLU played a crucial role in laying the groundwork for future labor movements during the Gilded Age.
Private Guards: Private guards were armed security personnel hired by businesses and industries during the Gilded Age to protect property and maintain order, often in the context of labor disputes. These guards were frequently employed by companies to counteract strikes and unrest, leading to violent confrontations between laborers and security forces. Their use reflects the growing tensions between labor and management as workers sought better conditions and wages while employers aimed to protect their interests.
Pullman Strike of 1894: The Pullman Strike of 1894 was a nationwide railroad strike in the United States that began when workers at the Pullman Company protested against wage cuts and high rents in company-owned housing. This strike quickly escalated into a major labor conflict, involving thousands of railroad workers and leading to disruptions in rail traffic across the country. The federal government's intervention marked a significant moment in labor relations during the Gilded Age, highlighting tensions between workers and employers, as well as the role of the government in supporting business interests over labor rights.
Samuel Gompers: Samuel Gompers was a prominent labor leader and the founder of the American Federation of Labor (AFL), which became one of the most significant labor organizations in the United States during the Gilded Age. He advocated for organized labor and sought to improve working conditions, wages, and hours for workers through collective bargaining and negotiation rather than strikes. Gompers' approach emphasized pragmatism and focused on practical gains for skilled workers, making him a key figure in shaping the labor movement during a time of rapid industrialization and economic change.
State Militia: A state militia is a military force composed of local citizens who are organized by individual states to provide defense and support during times of emergency or conflict. These militias have historical significance, particularly during the Gilded Age, as they were often called upon to suppress labor unrest and protect property interests amidst the rapid industrialization and labor movements of the era.
Strikebreakers (Scabs): Strikebreakers, commonly known as scabs, are individuals who continue to work or replace striking workers during labor disputes. This practice became prevalent during the Gilded Age, a time marked by rapid industrialization and significant labor unrest, where unions fought for better wages, hours, and working conditions. The use of strikebreakers often intensified conflicts between labor and management, leading to violence and deepening divisions within communities.
Yellow-dog Contracts: Yellow-dog contracts were agreements that required workers to promise not to join or remain a member of a labor union as a condition of employment. These contracts became a controversial practice during the Gilded Age, as they were used by employers to suppress labor organization and maintain control over their workforce, thereby limiting workers' rights and bargaining power.