Labor Reform in the New Deal

The New Deal was introduced in 1933 by President Franklin D. Roosevelt to address the issues created by the Great Depression. It also tackled pre-existing matters in America. The industrial revolution changed how America produced goods, but it was often left unchecked. Workers were underpaid, children worked long and dangerous shifts in factories, and there was no safety net for people who lost their jobs. Let's look at how the New Deal addressed this!

Labor Reform in the New Deal Origins

Many of the New Deal's labor reforms can be traced back to President Franklin Delano Roosevelt's Secretary of Labor, Frances Perkins. Before becoming Secretary of Labor, Perkins was on the New York State Industrial Commissioner and advocated for safer work environments, minimal wages, and age restrictions on the workforce. She was the first woman to be appointed to the president's cabinet. While she faced discrimination for working "a man's job", Perkins significant influenced the New Deal.

Fig 1: Frances Perkins had a fundamental role in introducing the Labor Reforms of the New Deal

Perkins had several plans for the Department of Labor and even held annual conferences with state labor legislation to widen her horizon. She is partially responsible for a senior pension through Social Security, the establishment of minimum wage, child labor laws, and the creation of the workweek.

Labor Reform in the New Deal: Children, Unions and Wages

Through the Fair Labor Standard Act of 1938 and the 1935 Wagner Act, the Roosevelt Administration established safety laws for working children, minimum wage, the workweek, and the right to unionize. Why were these acts necessary? What did they do? Let's take a closer look!

Labor Reform in the New Deal and Child Labor

The Industrial Revolution of the 19^th century brought many families from rural America to the big cities looking for work. Every member of low-income households had to work, including the children. Kids had challenging and dangerous jobs working in factories where they might lose a finger, leg, or their lives.

Child labor in itself wasn't the issue; if a kid helped their parents on the farm or a teenager picked up a job selling newspapers, it was ok. It became a point of contention when the work was dangerous, impacted the child's mental health, and kept them out of school. Many children worked twelve-hour shifts, six days a week. By 1911, over two million children under sixteen were in the workforce.

Fig 2: Children often worked in dangerous jobs such as glass blowing or coal mining during the Industrial Revolution

The Public Contract Act of 1936 prohibited boys under sixteen and girls under eighteen from working in factories with a government contract over $10,000. The Fair Labor Standard Act of 1938 went even further. Children had to be fourteen to work, and only during the summer or holidays. Children who worked during the school year had to be sixteen, and if the job was hazardous, as deemed by the Secretary of Labor, then they had to be eighteen.

Labor Reform in the New Deal and Unions

Unions exist to protect the rights of workers. A union is formed when enough employees band together and demand change. Their collective voices are much stronger, and they can demand better pay, insurance, and even vacation time. The Roosevelt Administration was considered "pro-union" and passed the Wagner Act in 1935. Though Perkins pushed this, it wasn't under the Department of Labor. Perkins could choose who would head the National Labor Relations Board this act created.

Labor Reform in the New Deal and Unemployment Insurance

Perkins was an avid advocate for insurance for seniors and unemployment insurance. The Social Security Act of 1935 established both of those. This was the first social safety net America had ever had. Employees who lost their jobs would now receive a temporary unemployment check if they met specific standards. The Social Security Act, like the Wagner Act, excluded sharecroppers and domestic workers, so African Americans couldn't benefit from it.

Labor Reform in the New Deal and Higher Wages

Not only did the Fair Labor Standards Act of 1938 remove children from the workforce, but it also set the workday for manufacturers and the minimum wage. Factory workers couldn't work more than forty hours a week. The minimum wage was established at twenty-five cents an hour.

Roosevelt originally wanted a forty-cent an hour minimum wage. However, Southern business owners claimed that they would not be able to afford their employees. Roosevelt was forced to cut the minimum wage down to twenty-five cents an hour. The minimum wage was not equal across the board; women made less than men. A woman in a skilled job would make less money than an unskilled male laborer.

Labor Reform and Work Programs

Along with labor reform laws, the New Deal introduced work programs to reduce unemployment. In 1933, unemployment was at 25%, the highest that it has ever been in American history. When we think about work programs of the New Deal, there are two that come to mind, the Civilian Conservation Corps and Work Progress Administration. Let's take a closer look at the two!

Labor Reform in the New Deal Civilian Conservation Corps

Robert Fechner directed the Civilian Conservation Corps (CCC) for most of its run. They hired single men between the ages of 18 to 25 and would send them to locations where they worked on conservation projects. The CCC workers lived in camps where their food was provided, and they were paid a dollar a day.

Fig 3: The Civilian Conservation Corps Work Project gave jobs to many young single men throughout the US and provided accommodation and training, Source Wikimedia.

They were trained, and if they were illiterate, they were taught to read. The CCC employed around three million men from 1933 until its dissolution in 1942. Over 4,000 historical landmarks were restored, and 800 parks were built. The CCC ended when World War II began, and funds were needed elsewhere.

Labor Reform in the New Deal Works Progress Administration

The Work Progress Administration (WPA) lasted from 1935 to 1943. Its workers created infrastructure, public buildings, hospitals, schools, and housing for low-income families. Most people employed were white, unskilled laborers, but 15% of the workforce were African Americans, and 7% were women who sewed.

Fig 4: Woman sorting clothing

The WPA employed around 8.5 million workers and built 4,000 schools, 130 hospitals, and 29,000 bridges. This is only a fraction of what the WPA accomplished. The Federal One Program, advocated by First Lady Eleanor Roosevelt, hired artists, writers, musicians, and college-educated people to perform different tasks. Murals were painted on government buildings, sculptures built, plays performed, and formerly enslaved people interviewed and their stories written down.

The WPA had a lot of criticism. It cost the government $5 billion, with $27 million funneled towards the Federal One Program. Had the WPA been private, the labor projects would have cost less, and workers would have been paid more, but the government wanted to hire the maximum number of people they could. The Federal One Program was particularly criticized as a "waste of money" because it funded the Arts, which some critics deemed unnecessary government funding.

Labor Reform and the New Deal

The New Deal brought labor reform with it. Francis Perkins was a major contributor to many New Deal labor reform policies. Through Congress, they established a minimum wage, work week, child labor laws, and the right to unionize. Programs like the CCC and WPA put people back to work. These programs were flawed as some excluded African Americans or paid women less than men. However, they were better than nothing, and women and African Americans still benefitted from the New Deal.