OCR Specification focus:
‘Workers and trade unions advanced yet faced limits and backlash.’
The New Deal era transformed labour relations in the United States, expanding workers’ rights and union power, yet significant structural limits and opposition curtailed lasting progress.
Workers and Unions under the New Deal: Gains and Limits
The New Deal period (1933–1939) under President Franklin D. Roosevelt was a transformative era for labour rights and trade unions in the United States. It marked a shift in the federal government’s attitude from hostility and neutrality to partial support for organised labour. However, the gains achieved were neither uniform nor uncontested. Workers experienced significant improvements in bargaining power, conditions, and legal status, but these advances faced enduring limits due to economic, political, and ideological resistance.
Federal Legislation and Expansion of Union Rights
A cornerstone of labour gains during the New Deal was landmark legislation that legitimised and empowered trade unions.
National Industrial Recovery Act (NIRA) 1933: Encouraged collective bargaining and set industry-wide codes for wages and hours. Although later struck down by the Supreme Court, it signalled a change in federal attitudes toward labour.
Wagner Act (National Labor Relations Act) 1935: A pivotal law that guaranteed workers the right to collective bargaining and to form and join unions without employer interference.
Collective bargaining: The negotiation of wages, working conditions, and other employment terms between employers and a group of employees, typically represented by a union.
The Act established the National Labor Relations Board (NLRB) to oversee labour relations and enforce workers’ rights. The NLRB became a crucial mechanism for reducing employer retaliation and union-busting tactics.
Fair Labor Standards Act (FLSA) 1938: Set minimum wages, maximum working hours, and outlawed most forms of child labour, providing a federal baseline for workers’ rights.
Official “Employee Rights under the Fair Labor Standards Act” poster showing federal minimum wage, overtime, and child-labour rights. Extra detail: includes current figures and compliance wording beyond the syllabus but illustrates the enduring framework of the 1938 Act. Source
Union Growth and Industrial Organisation
The New Deal era witnessed a surge in union membership and organisational strength.
Union membership grew from about 3 million in 1933 to over 8 million by 1939, reflecting increased confidence and legal protection for workers.
The creation of the Congress of Industrial Organizations (CIO) in 1935 marked a significant shift toward industrial unionism, organising workers by industry rather than craft.
The CIO successfully unionised mass-production sectors, including steel, automobiles, and rubber, areas previously resistant to unionisation due to employer hostility and worker fragmentation.
Industrial unionism contrasted with the older American Federation of Labor (AFL) approach, which focused on skilled trades. This new strategy broadened union influence to semi-skilled and unskilled workers, including many immigrants and African Americans.
Workers’ Gains: Improved Conditions and Rights
The New Deal helped deliver substantial material and legal gains for workers.
Improved Wages and Hours: Through NIRA codes and the FLSA, workers secured better pay and shorter hours, improving living standards during the Great Depression.
Greater Bargaining Power: Legal recognition of unions allowed workers to negotiate collectively, reducing employer dominance in setting terms of employment.
Enhanced Workplace Protections: Legislation curtailed exploitative practices and strengthened protections against unfair dismissal and discrimination.
Increased Political Influence: Labour became a crucial part of Roosevelt’s New Deal Coalition, aligning unions with the Democratic Party and shaping labour policy.
Limits to Union and Worker Progress
Despite these gains, significant limitations constrained the effectiveness and reach of New Deal reforms.
Employer Resistance and Anti-Union Tactics
Many employers continued to resist unionisation through company unions, intimidation, and legal challenges.
The Supreme Court initially opposed aspects of the New Deal, striking down NIRA in Schechter Poultry Corp. v. United States (1935), limiting early progress.
Even after the Wagner Act, enforcement was inconsistent, and employer opposition often undermined union activity, particularly in the South and rural areas.
Exclusions and Inequalities
The New Deal did not benefit all workers equally.
Agricultural and domestic workers—many of whom were African American or Hispanic—were excluded from the Wagner Act and FLSA protections, reflecting political compromises with Southern Democrats.
Women workers often remained confined to low-paid sectors and continued to face gender discrimination in hiring and wages.
Fragmentation within the Labour Movement
Tensions between the AFL and CIO over organising strategies weakened labour’s political leverage.
Splits within unions, ideological disputes, and Communist influences further fractured labour unity.
Opposition and Backlash
The expansion of union power during the New Deal provoked significant opposition from business interests, conservative politicians, and segments of the public.
Employers and business associations argued that New Deal policies interfered with free enterprise and property rights.
Violent confrontations, such as the 1937 “Little Steel” strike, revealed the enduring power of employers and state authorities to suppress union action.
Photograph from the National Archives showing the 30 May 1937 Memorial Day incident in Chicago, when police fired on striking steelworkers. This highlights the risks faced by labour activists and illustrates the limits of federal protection despite New Deal reforms. Source
Political opposition increased as conservatives gained ground in Congress by 1938, limiting Roosevelt’s ability to push further reforms.
The backlash culminated in efforts to curb union influence, laying the groundwork for post-war legislation like the Taft-Hartley Act (1947), which restricted union power and activities.
Long-Term Impact and Historical Significance
The New Deal fundamentally redefined the relationship between workers, unions, and the federal government. It legitimised collective action, embedded federal labour standards, and shifted public expectations about the state’s role in labour relations. Yet its limitations—rooted in racial and gender exclusions, uneven enforcement, and structural resistance—meant that many workers remained marginalised.
The labour movement’s growth during this era laid the foundations for mid-20th century union strength, influencing post-war prosperity and shaping industrial relations for decades.
However, unresolved inequalities and the enduring power of anti-union forces foreshadowed the decline of union influence in the late 20th century, particularly under administrations like Ronald Reagan’s in the 1980s.
The New Deal period thus represents both a turning point and a missed opportunity in the history of American labour. Workers and trade unions achieved unprecedented legal recognition and bargaining power, but those gains remained contested, uneven, and vulnerable to reversal—demonstrating the complex legacy of New Deal labour reform.
FAQ
The NLRB, created by the Wagner Act (1935), was a major shift in federal involvement in labour relations. It investigated unfair labour practices, such as employer retaliation against union organisers, and could order employers to reinstate workers or recognise unions.
By providing a legal mechanism for workers to challenge anti-union actions, the NLRB limited employer dominance and encouraged union membership. However, its effectiveness depended on political support and enforcement, which varied over time.
These exclusions were primarily political compromises. Southern Democrats, who held significant influence in Congress, sought to maintain the racial and social hierarchies of the South, where many African Americans worked in agriculture or domestic service.
As a result, these sectors were deliberately left out of the Wagner Act and Fair Labor Standards Act to secure political support, meaning millions of workers continued without basic labour protections.
Strikes were a powerful tool for unions, drawing national attention to poor working conditions and employer resistance. High-profile actions like the Flint Sit-Down Strike (1936–37) showcased worker solidarity and led to union recognition in major industries.
However, violent clashes, such as the Memorial Day Massacre (1937), sometimes alienated public opinion, especially when strikes were portrayed as disruptive or linked to radicalism. Public sympathy often depended on the perceived legitimacy and conduct of the strikers.
The Congress of Industrial Organizations (CIO) focused on industrial unionism, organising all workers within an industry, regardless of skill, race, or background. This inclusive approach helped unionise large mass-production sectors like steel and automotive manufacturing.
The American Federation of Labor (AFL), in contrast, maintained craft unionism, representing skilled workers in specific trades. This older model excluded many unskilled and minority workers. The CIO’s methods contributed to rapid union growth during the New Deal.
After the 1938 midterm elections, a more conservative Congress curtailed Roosevelt’s ability to expand labour reforms. Business interests regained influence, and New Deal momentum slowed.
This shift marked the beginning of a more hostile political climate for unions. It paved the way for post-war legislation like the Taft-Hartley Act (1947), which restricted union power, limited strikes, and allowed states to pass “right-to-work” laws, weakening organised labour’s influence in the long term.
Practice Questions
Question 1 (2 marks)
Identify two ways in which the Fair Labor Standards Act (1938) improved conditions for American workers.
Mark Scheme (2 marks total):
1 mark for each valid point identified (maximum 2).
Accept any two of the following:It established a federal minimum wage, ensuring a basic level of pay for workers.
It set maximum working hours, limiting the length of the working week.
It outlawed most forms of child labour, protecting younger workers from exploitation.
Question 2 (6 marks)
Explain two reasons why the growth of trade unions during the New Deal faced limits despite federal support.
Mark Scheme (6 marks total):
Award up to 3 marks for each well-explained reason. Marks should reflect depth and accuracy of knowledge, not just identification.
Indicative content:
Employer resistance (up to 3 marks):
Many employers opposed unionisation through intimidation, company unions, and legal challenges (1 mark).
The Supreme Court initially struck down key legislation like the NIRA, slowing progress (1 mark).
Even after the Wagner Act, enforcement was inconsistent, allowing employers to undermine union activity (1 mark).
Exclusions and inequalities (up to 3 marks):
Key groups such as agricultural and domestic workers were excluded from protections under the Wagner Act and FLSA (1 mark).
These exclusions disproportionately affected African American and Hispanic workers, limiting the reach of union power (1 mark).
Women often remained in low-paid sectors and faced discrimination, reducing the overall impact of union gains (1 mark).
