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Trade Unions and the New deal (Disadvantages of the New Deal (Many trade…
Trade Unions and the New deal
National Industry Recovery Act' (1933)
Developed production levels,increased wages and decreased working hours. A law giving workers rights to organise trade unions and take part in collective bargaining
1934- 557 codes had been agreed by employers covering 23 million workers
However its positive effects were limited as Major companies such as Ford and DC declared it unconstitutional until 1935 and refused to sign it. Came under scrutiny from Supreme Court as they raised the issue of states rights over federal government rights.
It did not fully cover all workers especially un-skilled workers who had no representation by trade unions which meant they weren't empowered
Wagner Act - National Labour Relations Act (1935)
Aimed at regulating and decreasing labour despite by providing a structure of collective bargaining. Involved a reduction in the control of Industrialists over their workforce
Would limit strikes by trade unions and picket-line violence. He believed that only legislation would reduce the ability of powerful industrialists subverting their workers
The first piece of legislation that recognised the rights of workers to elect their own representatives with employers
National Labour Relations board (1935)
Prevented companies from blacklisting trade unions and unfair dismissal of workers. Protected the rights of labour
Trade union membership rose from 3.7 million in 1933 to 9 million in 1938
However major companies initially resisted the pressure from workers for unionisation, they eventually gave in. 1937 Union of Auto workers boosted by 400,000 members
Fair Labour Standards act (1938)
Created a $25 minimum weekly wage for industrial workers and a payment of time. Prohibited the employment of under 16 year olds
This was a new positive change as child labour was being dimissed, as well as standards of living would rise due to higher wages
Disadvantages of the New Deal
Many trade unions rejected unskilled laborers, the CIO was formed by John Lewis in 1937. CIO used sit-ins in strikes which made car manufacturers recognise the right to join a trade union
Immigrants sought racial equality in trade unions, membership was at 3.7M by 1941
Hispanics and women faced discrimination in wages and in racial terms which impeded their labour rights,despite Roosevelt Fair employment Practices Commission - 1941
WW2 = control of industry was shifted away from employers into the hands of the government - the new National War Labour Board was set up because of labour disputes and increase wages in 1941
Advantages of the New Deal