Economic effects on Trade Unions and Labour Rights

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1865 and Gilded Age

  • In 1865 wage rise of 74% for skilled workers but 32% for unskilled
  • Unskilled immigrants willing to work for less - expolited by employers, caused divisions in the workforce
  • Lassiez faire attitudes of government, favouring employers who could do whatever they wanted due to lack of legislation
  • AAs exploited by employers as 'scabs' to break strikes e.g. at Pullman Strike 1894
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1920s and WW1

  • In WW1 wages increased 20% and production 35%
  • Union rights and collective bargaining structure in return
  • Welfare Capitalism improved wages and benefits but 'company unions' could not negotiate wages
  • Ford in 1914 doubled wages
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Great Depression, New Deal and WW2

  • Unemployment at 25% in 1933
  • National Industry Recovery Act 1933 established National Recovery Adminstration wich agree codes for wages, production levels
  • Wagner Act 1935 regulated labour disputes
  • Fair Labour Standards Act 1938 created minimum wage of $25, but still a wage gap of 25% for women
  • National War Labour Board helped settle wage disputes
  • WW2 increased wages to meet 15% rise in cost of living
  • Industrial earnings boosted 70%
  • 50% women in the workforce, but still not paid equal
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1950s-60s

  • New Frontier increased wage from $1.15/ hour 1961 to $1.25/ hour to 1963 in Steelworker's Union
  • Equal Pay Act 1963 made wage discrimination on basis of gender illegal
  • Great Society created Economic Opportunity Act 1964 which trained young people
  • 1960s wages increased by 2% a year, 20% more for workers in unions, also got 60% more benefits
  • Chavez's National Farm Workers Association to campaign for greater economic rights for Chicano workers, 1970 Delano grape company increased waged to above the minimum 
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1980s-90s

  • Reagan cut personal income taxes by 25%
  • Federal budget in $200 billion deficit in 1983, had to cut back on welfare projects
  • Wages decreased and there was an 80% rise in unemployment
  • Salaries of chief executives rose 340%
  • Shift of power back to employers as non-unionised firms could negoatiate wages more and complaints to the National Labour Relations Board slowly processed
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