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The expansion of industry was accompanied by increased tensions between employers and workers and by the appearance, for the first time in the United States, of national labour unions.


Formation of unions

The first effective labour organization that was more than regional in membership and influence was the Knights of Labor, organized in 1869. The Knights believed in the unity of the interests of all producing groups and sought to enlist in their ranks not only all labourers but everyone who could be truly classified as a producer. They championed a variety of causes, many of them more political than industrial, and they hoped to gain their ends through politics and education rather than through economic coercion.

Knights of Labor"Puck" cartoon attacking James Cardinal Gibbons's support of the Knights of Labor.Library of Congress, Washington, D.C.

The hardships suffered by many workers during the depression of 1873–78 and the failure of a nationwide railroad strike, which was broken when President Hayes sent federal troops to suppress disorders in Pittsburgh and St. Louis (see Great Railroad Strike of 1877), caused much discontent in the ranks of the Knights. In 1879 Terence V. Powderly, a railroad worker and mayor of Scranton, Pennsylvania, was elected grand master workman of the national organization. He favoured cooperation over a program of aggressive action, but the effective control of the Knights shifted to regional leaders who were willing to initiate strikes or other forms of economic pressure to gain their objectives. The Knights reached the peak of their influence in 1884–85, when much-publicized strikes against the Union Pacific, Southwest System, and Wabash railroads attracted substantial public sympathy and succeeded in preventing a reduction in wages. At that time they claimed a national membership of nearly 700,000. In 1885 Congress, taking note of the apparently increasing power of labour, acceded to union demands to prohibit the entry into the United States of immigrants who had signed contracts to work for specific employers.

The year 1886 was a troubled one in labour relations. There were nearly 1,600 strikes, involving about 600,000 workers, with the eight-hour day the most prominent item in the demands of labour. About half of these strikes were called for May Day; some of them were successful, but the failure of others and internal conflicts between skilled and unskilled members led to a decline in the Knights’ popularity and influence.


The Haymarket Riot

The most serious blow to the unions came from a tragic occurrence with which they were only indirectly associated. One of the strikes called for May Day in 1886 was against the McCormick Harvesting Machine Company in Chicago. Fighting broke out along the picket lines on May 3, and, when police intervened to restore order, several strikers were injured or killed. Union leaders called a protest meeting at Haymarket Square for the evening of May 4; but, as the meeting was breaking up, a group of anarchists took over and began to make inflammatory speeches. The police quickly intervened, and a bomb exploded, killing seven policemen and injuring many others. Eight of the anarchists were arrested, tried, and convicted of murder. Four of them were hanged, and one committed suicide. The remaining three were pardoned in 1893 by Gov. John P. Altgeld, who was persuaded that they had been convicted in such an atmosphere of prejudice that it was impossible to be certain that they were guilty.

Haymarket RiotWood engraving of the Haymarket Riot by Thure de Thulstrup, published in Harper's Weekly on May 15, 1886.Library of Congress, Washington, D.C.

The public tended to blame organized labour for the Haymarket tragedy, and many persons had become convinced that the activities of unions were likely to be attended by violence. The Knights never regained the ground they lost in 1886, and, until after the turn of the century, organized labour seldom gained any measure of public sympathy. Aggregate union membership did not again reach its 1885–86 figure until 1900. Unions, however, continued to be active; and in each year from 1889 through the end of the century there were more than 1,000 strikes.

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