Pay and Working Conditions

• In the 19th century, workers worked long hours in dangerous conditions, resulting in a large number of accident. Employers often wouldn’t introduce health and safety as the supervision would reduce their profits, and those that suffered injuries received little/no support from employers.
• The formation of the NWLB in 1918 meant length of working hours was limited to 8, but in return for a no-strike policy.
• The economic boom post-war in the 20s led to a rise in real wages and decline in unemployment.
• In the 20s, employees were often offered benefits - reduction in working hours, pensions, insurance and other services.
• Conditions for AA railroad porters in 20s:

  • poor working conditions
  • relied on tips for much of their income
  • denied promotion as conductor job limited to whites
  • company prevented effort to form a union, sacking and sometimes assaulting leaders
• Wages increased by some 70% during WW2.
• By the 60s, unions could:

  • bargain over conditions and wages
  • negotiate contracts, paid holidays and unemployment insurance
  • gain medical and dental endurance and pensions
• The Salad Bowl strike won higher wages for those working for lettuce and grape growers.
• Economic boom of 1920s = to meet growth in demand for consumer goods such as washing machines, fridges and cars, more workers taken on and rise in real wages.
• Increased demand for workers and low unemployment led employers to recognise unions or engage in welfare capitalism - Henry Ford cut the working day to 8 hours, doubled daily wage to $5 and introduced profit sharing.
• Average income by the end of the 50s was 35% higher than at the end of WW2.
• In the 50s, 75% owned cars and 87% owned a television.
• Unemployment rose from 3% in 1929 to 25% by 1933.
• The government’s laissez-faire policy in the gilded age allowed individuals to build up large industrial enterprises where employees could be exploited, such as John Rockefeller and Andrew Carnegie.
• 60s - wages of union workers some 20% higher than non-union workers.
• Across the gilded age, wages increased by 60%, despite rise in workforce from immigration.
• ‘Contract system’ during builder age meant workers could be laid off in quiet periods.
• 20s:

  • wealthiest 5%’s share of national income bigger than that of bottom 60%
  • 40% Americans lived in poverty
  • drop in farmers income and Dust Bowl = number of farmers dropped for first time
• Unemployment went from 14% in 1930 to 2% by 1942.
• During WW2, the NWLB‘s formula for wage disputes permitted a 15% cost of living increase. Wage rises and lots of overtime pay resulted in the 70% increase in average industrial earnings.
• During the 50s, 60% of Americans were considered middle class.
• 1960 = 20% of Americans lived below poverty line.
• 70s = end of 25 years of economic growth, inflation = 10% a year
• Kennedy’s Contract Work Hours and Safety Standards Act 1962 established standard hours, overtime and safety for fed employees.
• Great Society - 22.2% below poverty line in 1963, to 12.6% in 1970.