Boom–Bust Historical Examples

During the 19th century, these cycles occurred in roughly 20-year intervals. If we plot the major confrontations between unions and employers on the timeline in Figure 1.2, we see that during upturns in the economy, employees and unions often went on the offensive and tried to negotiate better wages and working conditions; during downturns, employers tended to go on the offensive and successfully confronted labor.

Boom: 1857–1867

As Figure 1.2 indicates, the first national unions in this country were formed in the 1860s when the economy was booming. The first national labor union in the United States was, unimaginatively, called the National Labor Union.

 

Bust: 1867–1877

When the economy declined between 1867 and 1877, employers went on the offensive against these new unions. The destruction of the coal miners' union in northeastern Pennsylvania (which culminated in the hanging of the "Molly Maguires") and the defeat of the early railroad unions during the Rail Strike of 1877 during this period are two examples of employers taking advantage of favorable economic conditions to take on unions.

 

Boom: 1877–1887

From roughly 1877 to 1887, the economy grew strong and unions regrouped. It was during this period that many modern unions were founded. The American Federation of Labor (AFL) was formed, and the Knights of Labor's membership grew to over 700,000.

 

Bust: 1887–1897

However, when the economy, again, fell into decline between 1887 and 1897, employers regained the upper hand and became much more aggressive in fighting unions. The defeat of the steelworkers in Homestead, Pennsylvania, at the hands of Andrew Carnegie and Henry Clay Frick in 1892 (the Homestead Lockout) and of the workers who manufactured Pullman cars in 1894 (the Pullman Strike) was the result.