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Led by U. Steel, the biggest and most powerful manufacturing company in the country, the employers launched a strong counterattack, branding the strike leaders as foreign radical agitators, this time linking them to Bolshevism, not anarchism. They also employed 30, African Americans as replacement workers, attacked picket lines, and broke up union meetings.

With President Wilson appearing to favor steel executives, the defeat of the steel strike in December sealed the fate of collective bargaining in the ensuing decade Zieger and Gall , pp. During the s, unions lost strike after strike as employer opposition to unions reversed many of the wartime advances by organized labor. Over the course of these lean years for organized labor, union membership declined from five million in to just under three million in Bernstein , p.

Still, total union membership never fell below levels, no major union organizations disappeared, and there were some gains for the building trades, railroad brotherhoods, and the Teamsters Nelson ,pp. But the United Mine Workers, which later took the lead in organizing during the s, fell from , in to under 80, in the early s. The garment unions were also devastated -- the Amalgamated Clothing Workers, another spearhead union in the s, fell from , in to 60, in with only 7, of those members paying dues and the International Ladies' Garment Workers Union fell from , in to around 40, in The biggest unions were now in construction, transportation, entertainment, and printing, all of which had high replacement costs in the face of union demands Zieger and Gall , pp.

There were virtually no union members in mass production industries. Nevertheless, there were a few corporate moderates who wanted to control labor by giving workers some representation and thereby avoid the kind of violent confrontations that the leaders of the NAM and other ultraconservatives were willing to undertake if necessary. These efforts were led by the richest man of that era, John D.

Rockefeller, Jr. Sober social scientists usually shy away from any suggestion that the Rockefellers were a powerhouse in their day because of the exaggerated claims that were made about the alleged hidden power of the five grandsons of John D. Rockefeller, Sr. Such claims about the Rockefeller family in general continued into the early twenty-first century, at a time when there were no Rockefellers in positions of any importance in the corporate community.

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The most visible member of the family, John D. Rockefeller, IV, was the long-time Democratic senator from West Virginia, with a liberal voting record overall. He announced his retirement from the Senate as of As for the idea that a Rockefeller might have had an influence on labor legislation in the s, that is an occasion for merriment or scoffing among respectable social scientists and historians. The story of Rockefeller involvement in labor legislation is completely unknown despite some good work on the topic in the late twentieth century, and is therefore met with skepticism or denial.

The story therefore has to be unfolded carefully if the wistful conventional wisdom of the historical institutionalists and pluralists, who reign supreme in the American social sciences, is ever to be questioned by future generations of social scientists. In the early s, the descendants of John D. As a first approximation of Rockefeller power in that era, that figure happens to be 2.

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Not only was the Rockefeller family far and away the richest family of that era, but John D. Although Rockefeller, Sr. Rockefeller" or "Rockefeller," and his father will be referred to as "John D.

The Rockefeller fortune was based primarily in five of the oil companies created in out of the original Standard Oil, after it was broken up by antitrust action. In the s and s, the Rockefellers held the largest blocks of stock in these companies and had great influence on their management. Four of the five companies were in the top 11 corporations in terms of their assets in Standard Oil of New Jersey renamed Exxon in the early s was the second-largest corporation, and Standard Oil of New York renamed Mobil at one point and then merged with Exxon in to create Exxon Mobil , was the fourth-largest.

Then there was Standard Oil of Indiana at No.


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Standard Oil of New Jersey was by far the most important and politically involved of these companies. Rockefeller had his offices in its headquarters building and was close to the senior management throughout the s and s, especially the president during these years, Walter C. A grandson of one of John D.

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If the close and mutually respectful relationship between Teagle and Rockefeller can be kept in mind, and if Teagle's independent judgment is appreciated, then the idea of "Rockefeller" power in labor relations can be considered within a more open mind, especially after other dramatis personae are added to the picture. Despite the huge amount of wealth the Rockefellers retained in the Standard Oil companies, they had diversified their holdings. Most important, by the early s they controlled the largest bank in the country, Chase National Bank, chaired by Rockefeller's brother-in-law, Winthrop Aldrich, who took the lead on Wall Street in calling for the separation of commercial and investment banking in early In addition, they owned a major coal company, Consolidation Coal, and several minor railroads.

The family also diversified into real estate in the early s by building Rockefeller Center in New York City with the help of a large loan from Metropolitan Life Insurance, a company with which Rockefeller enjoyed a close relationship, including the placement of one of his several personal employees on its board of directors.

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The largest development of its kind up until that time, Rockefeller Center opened in the early s and lost money for many years thereafter Fitch ; Okrent By the s, however, it was at the center of the Rockefeller fortune, with any involvement in the oil companies long in the past. Similarly, involvement in Chase National Bank which became Chase Manhattan Bank in and merged into JPMorgan Chase in ceased in the mids with the retirement of David Rockefeller Rockefeller's fifth and youngest son after many years as either its president or chairman.

The company and Rockefeller became infamous because they played the central role in a prolonged and deadly labor dispute in , which came to be known as the Ludlow Massacre, after 20 people died in a daylong battle between the Colorado National Guard and striking miners. The total included ten women and two children. They burned to death after machine gun fire ignited the makeshift tent city in which they were living after being evicted from company housing by the company management. More generally, at least 66 people died in the open warfare between labor and mine operators in Colorado between May and September of ; the violence only ended when President Wilson sent Federal troops to the area Zieger and Gall , p.

Rockefeller's reaction to this disaster reshaped corporate-moderate policy thinking about labor relations over the next 15 years, and unlikely as it may sound at this juncture in the story, had a direct impact on labor policy in the early New Deal. In addition to his corporate involvement and great personal wealth, Rockefeller also controlled three foundations: the General Education Fund, the Rockefeller Foundation, and the Laura Spelman Rockefeller Memorial Fund. Although he did not take a direct role in all of the foundations, he had an executive committee, made up of his main employees from each of them, which met with him to determine whether he should give his own money directly to a project or if the project should be assigned to a foundation.

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In addition, he chaired the board of the Rockefeller Foundation, which had its offices in the Standard Oil of New Jersey Building from its founding in until Rockefeller and his foundations supported a wide array of think tanks and policy-discussion organizations within the larger context of massive financial donations for medical research, education, national parks, ecumenical Protestant organizations, and museums Schenkel It needs to be stressed that he spent far more money on one of his favorite personal projects, the restoration of Colonial Williamsburg, than he did on think tanks and policy-discussion groups.

But still, the relatively small amounts of money he contributed to organizations in the policy-planning network nonetheless had a major impact on the Agricultural Adjustment Act, the National Labor Relations Act, and the Social Security Act Domhoff and Webber I can see the raised eyebrows at this point, but read on. The general importance of the three Rockefeller foundations can be seen through figures on assets and donations in As another indication of how concentrated foundation giving was at the outset of the New Deal, three Rockefeller-related and four Carnegie-related foundations accounted for well over half of the donations in Besides, most of the other foundations in the top 20 were not concerned with public policy; they gave donations to local charities, educational institutions, libraries, and museums.

For all that Rockefeller and his many personal employees and foundations did to aid in the general development of the policy-planning network, their most direct contribution to the New Deal was the creation of experts and policies that were financed in reaction to the violent labor conflicts in not one, but two, Rockefeller companies between and As explained a few paragraphs ago, Rockefeller's personal concern with new policies for dealing with labor strife began unexpectedly when Colorado Fuel and Iron became involved in its murderous labor struggle with striking miners in As the tensions and violence escalated, Rockefeller resisted appeals to intervene because he firmly believed the company's managers were protecting an inviolate principle he shared with his father: employees should have the right to resist joining a union when they are being pressured by outside agitators that want to exploit both the men and the companies.

All of this and more has been documented through work in the Rockefeller Archives by a properly cautious historian, Howard M. Gitelman ; , Chapter 1 , but it hasn't gotten much traction.


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In essence, he tells us, Rockefeller claimed that union leaders run a protection racket. After first denying any direct involvement in the events leading to the Ludlow Massacre, Rockefeller then endured grueling appearances before the presidential Commission on Industrial Relations, which was discussed briefly in the previous section. Its feisty chairman then released many damaging and incriminating documents about Rockefeller's involvement in key decisions leading to the confrontation e. The most detailed historical account of Ludlow and its aftermath, based on documents at the Rockefeller Archives, proved that Rockefeller had no information on the actual working conditions at the company and had no interest in examining independent reports that were offered to him Gitelman In fact, his first step in the midst of the crisis was to hire a famous public relations expert, Ivy Lee, who worked for Rockefeller from then until his death many years later.

His next step, well after the massacre occurred, was to hire a Canadian labor relations expert, MacKenzie King, who had worked for 12 years in his country's Ministry of Labor. After several long discussions between King and Rockefeller, which led to a deep personal relationship that lasted until the end of their lives, King then served as one of Rockefeller's closest advisers until he became Prime Minister of Canada, after leading the Liberal Party to victory in Rockefeller's original idea was to hire King to direct a new Department of Industrial Relations within the Rockefeller Foundation, an idea that was immediately criticized by reformers and journalists as a blatant misuse of nontaxable family money to further the interests of the corporate community.

The proposal was quickly abandoned and Rockefeller hired King out of his own pocket, a practice he continued with his future efforts in managing class conflict. Once King's employment status was settled, he proceeded to acquaint Rockefeller with the basic tenets of welfare capitalism and convince him to foster "employee representation plans," whereby workers within a plant could elect their own representatives to talk with management periodically on company time about their grievances. This plan was based on the theory that there is a potential "harmony of interests" between the social classes if employers and workers begin to think of each other as human beings working together on a common endeavor that had mutual, although admittedly differential, rewards.

The stress was on "human relations" in industry.

Introduction

According to most analysts, employee representation plans, called "company unions" by their critics, were designed as a way to avoid industry-wide labor unions, although Rockefeller and virtually everyone who ever worked for him always insisted otherwise. King and Rockefeller were not the first to propose employee representation plans as a way to deal with labor conflict in the United States. However, King and Rockefeller were the first to develop a systematic plan, publicize it widely, and install it in major corporations. When workers at Colorado Fuel and Iron voted for the plan and it seemed to work, Rockefeller received considerable praise in the media as a statesman and reformer.

He then urged its adoption at the other companies in which he had major stock interests. Shortly thereafter, Colorado Fuel and Iron endured the first of four strikes by the United Mine Workers over a period of 15 years before it was unionized in However, the plan did not come soon enough at Standard Oil of New Jersey's main plant in Bayonne, New Jersey, where major violence ripped through the company in July , in a strike over wage levels, after the company refused any arbitration and blamed the strike on outside agitators.

Several days of fighting led to the death of six workers and a score of injuries, many at the hands of a detective agency the company hired to protect the refineries Gibb and Knowlton , Chapter 6; Gitelman , p. Once the men agreed to return to work, they received a pay increase and shorter hours, as they had demanded. Just over a year later another strike in Bayonne resulted in the deaths of three people and 30 serious injuries during a week of fires and rioting Gibb and Knowlton , p. The book by Gibb and Knowlton may be too corporate-friendly for academic social scientists and historians, but theory aside, it might be credible on what it says about the details of these two strikes.

Rockefeller then asked the company's board of directors to consider the adoption of his new approach to labor relations, which was a more difficult request to make than it might seem for the son of the founder and a major stockholder.

A 'Media Tsunami'

Revealing once again the divisions among owners about how to deal with workers, the board had rejected his efforts to change labor policy a few years earlier, leading him to resign from the board Gitelman , p. But this time the board agreed. To implement the program, Rockefeller brought in Clarence J. Hicks became the vice president of industrial relations at Standard Oil of New Jersey in , where he served until his retirement in He reported directly to Teagle, the president of Standard Oil of New Jersey, which put him at the center of the Rockefeller industrial relations network.

More generally, the core of the network was Teagle, Rockefeller, and Hicks, but others will be added as the story unfolds. After pushing for the installation of employee representation plans at several other companies in which he had an ownership interest, Rockefeller used Standard Oil of New Jersey as a launching pad for creating what came to be called the Special Conference Committee, an informal and secret group made up of the presidents and industrial relations vice-presidents for ten of the largest industrial companies in the country and one bank: U.

The main purpose of the committee was to exchange information and ideas on labor relations. Eight of the ten original companies in the Special Conference Committee had adopted employee representation plans by Sass , p. However, they did so with varying degrees of enthusiasm and diligence. Hicks served as chairman of the Special Conference Committee from its inception until The industrial relations executives from the individual companies within the Special Conference Committee met with each other several times a year and once a year with the presidents also present.

Between meetings they were kept informed of ongoing developments in the field of labor relations by an executive secretary, Edward S.