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The Great Depression and the New Deal (1929-30s) - Coggle Diagram
The Great Depression and the New Deal (1929-30s)
Employer Actions
Employers took tough action against strikers, often calling in the police or their own strike breakers (workers who were willing to work during a strike, thus making it ineffectual)
Not all employers signed the code set out by NIRA (e.g. Henry Ford) so its effects were limited.
Economy
Wall Street Crash, October 1929 - the prices of shares fell dramatically on Wall Street. This led to a loss of confidence and the price of shares continued to fall, which sent the economy into recession. Workers were laid off and unemployment soared.
Those who were at the lower end of the payscale did not benefit from the New Deal.
Many from ethnic minorities, particularly African Americans and Mexicans, remained in a vulnerable position.
Government
1933: President Roosevelt introduced the New Deal to stimulate the economy after the Wall Street Crash.
The first act of the New Deal was the National Industry Act (NIRA) which encouraged firms to agree with codes of practice e.g. improving hours, wage rates and union rights. It enshrined in law worker's rights to organise unions and take part in collective bargaining.
The Supreme Court declared the Act unconstitutional.
NIRA did not give agricultural workers the right to join unions.
1935: The National Labor Relations Act (Wagner Act) established the National Labor Relations Board (NLRB) which could negotiate on behalf of workers and prevented companies from using their own unions.
The passing of the Fair Labor Standards Act of 1939 gave workers a minimum wage.
Union Trends
As a result of the Wagner Act, union membership rose from 3.7 million in 1933 to 9 million in 1938.
As the number of unionised workers increased, so did their power. For example, after initial resistance, General Motors officially recognised the United Automobiles Worker's Union after a sit-in strike in 1936.
The benefits of New Deal legislation were reflected in the growth of union membership (over 8 million by 1940).
As a result of the Wall Street Crash, labour and union rights suffered as employers exploited the weak position of workers who feared losing their jobs.