The Impact of the Second World War on Labour Power and Rights

The Impact of the Post-War Period on Labour Power and Rights

Although significant improvement had been made in the New Deal, there were major areas needing improvement when the USA entered the Second World War, in 1941: the situation for African- and Hispanic Americans needed to be improved, especially as they still suffered discrimination at work; opportunities needed to be made for Native Americans; women’s rights needed to be improved, not least in the area of pay; extension of labour rights needed to be given a higher political priority in the individual states, which remained suspicious of federal intervention. For details, see Heinemann, p276.

Post-War Concerns It was widely feared that the return of peace would bring the return of high levels of unemployment as cuts in government spending and demobilization of troops would put intolerable strain on the economy. These fears were groundless but understandable (given the pre-war Depression) as consumer demand stimulated the economy and the federal government attempted to extend this through tax cuts, business loans, farm price support and other measures. However, the government’s inconsistent attempts to control prices and therefore to limit inflation were fought against the background of large-scale industrial action: 1945 saw strikes in the car, electrical and steel industries; in 1946 there were strikes in the mines and on the railroads. These strikes were an attempt to gain higher wages to keep up with the rising cost of living and to compensate for the loss of overtime. Truman found that FDR’s followers were ill at ease in his administration and therefore they began to resign from his Cabinet, even though he put forward an extension of the New Deal. Given the inflation, industrial unrest and shortages of the immediate post-war period, it is unsurprising that the Republicans did particularly well in the 1946 Congressional elections. Together with many southern Democrats, the Republican majority cut public expenditure, sharply reduced taxes and ignored the President’s demands for social welfare legislation. In its only major attack on the New Deal, Congress secured the passage of the National Management Relations (Taft-Hartley) Act in 1947. Its terms were:  Closed shop, secondary picketing outlawed;  Unions made responsible for breaches of contract and acts of violence by members during strikes;  No automatic deductions of union dues from wages;  No union contributions to political campaigns;  Non-Communist oaths to be taken by union officials;  Unions to register and report on their activities;  States empowered to enact ‘right-to-work’ laws forbidding the union shop;  The government could obtain a court injunction to obtain an 80-day cooling off period before strike action was taken. Despite Truman’s veto, Congress passed this legislation.

After his victory in the 1948 Presidential election, Truman introduced the Fair Deal, a continuation and extension of the New Deal intended to appeal to those sectors of the population who had voted for him in large numbers (workers, farmers and African Americans): i. The minimum wage was raised; ii. Social Security was extended to 10 million more people; iii. A vast programme of slum clearance and federally supported public housing was initiated.

BUT i. The civil rights bill failed; ii. A national health insurance scheme failed after it was heavily criticised by the American Medical Association; iii. A plan for federal aid to education failed; iv. The Brannan Plan (farm price support) failed; v. the repeal of the Taft-Hartley Act failed.

Truman then faced increasing industrial problems: the 1950 miners’ strike was only ended when the President (ironically) invoked the Taft-Hartley Act; the President’s decision to seize steel mills during a steel strike in 1952 was challenged in the Supreme Court and declared unconstitutional, the first time since 1866 that the Supreme Court had invalidated a Presidential action.

Clearly, Truman had hoped to construct more positive labour relations and therefore to reduce the possibility of strike action. However, his problems with a hostile Congress and the economic difficulties of the post-war period limited his chances of success.

The Work of JFK, LBJ and Jimmy Carter For details of their policies, see Heinemann, pp277-278. If Kennedy’s foreign policy record was at best mixed, at home he accomplished even less. (Jones) Although he had an ambitious programme of social reform, Kennedy achieved little, hampered as he was by a hostile Congress. In 1962, he set up a Committee on Equal Employment to discourage racial discrimination by all employers. In keeping with his concern about inflation, JFK persuaded industry and labour to keep wage settlements within recommended limits and, in 1962, he forced the steel companies to withdraw a price increase. Overall, Kennedy’s Presidency was made up more of promises than of achievements.

After Kennedy’s assassination, LBJ took over the reins of power. His ‘Great Society’ programme accessed a range of issues but was particularly aimed at reducing poverty. Jobs were created, social security benefit spending was increased, job discrimination was prohibited and health and safety regulations were improved. Despite the obvious successes, the Administration became increasingly distracted and blighted by Vietnam. Carter’s Presidency was a great disappointment. Although he was very well intentioned and dedicated, the task of the Presidency was far too great for him and he was beset by a host of inherited problems which included inflation, unemployment, declining industrial productivity, declining presidential authority, loss of control over energy supplies, growth of Soviet military power…and Vietnam. His only major achievement in labour matters was the establishment of the minimum wage at $2.65 (1977).

Conclusions Significant improvements were made in workers’ rights in the period between 1941 and 1980. Equal pay and legislation against discrimination had been introduced; working conditions had been improved; Presidents had shown some willingness to address the key issues confronting the workers. However, the actions of Congress had limited the effectiveness of legislation and had, at times, curtailed the legislative programmes of some Presidents. Also, the Supreme Court had intervened to restrict the extension of workers’ rights. The arrival of new technology (from the 1950s onwards) reduced the power of the unions by drawing more workers into white-collar jobs which often carried with them no-strike agreements. This in its turn persuaded the AFL and the CIO (the Congress of Industrial Organizations) to merge in 1955 in the interests of labour solidarity. The introduction of privatisation schemes in Reagan’s presidency (from 1980) was not prompted by concern for the interests of the workers and weakened the unions.