By: Russ Kamp, Managing Director, Ryan ALM, Inc.

As we get set to gather with family and friends for the upcoming Labor Day Weekend, let us reflect on the history of this Federal holiday. The Industrial Revolution during the late 19th Century led to the rise of labor unions advocating for workers’ rights, better working conditions, and fair wages. The first “Labor Day” parade, which featured a large gathering of workers, was organized by the Central Labor Union in New York City on September 5, 1882. While this gathering signaled the labor movement’s growing unity and determination to fight together for better working conditions, it would still be more than 15 years before the Labor Day Act was officially signed into law by President Grover Cleveland on June 28, 1894.

During the interim, and throughout the 1880s, numerous strikes and protests occurred, further highlighting the discontent of the working class. Notable events included the Haymarket Affair (aka Haymarket Riot) in May 1886, which was a rally organized in Haymarket Square, Chicago, IL to protest the killing of striking workers gathered to demand an eight-hour workday. Also, the Pullman Strike in 1894, which led to a nationwide railroad boycott and significant unrest, which finally brought labor issues to the forefront. It was after the Pullman Strike (May 11, to July 20, 1894) that the U.S. government sought to appease labor by establishing Labor Day as a federal holiday.

Despite the recognition (celebration) of Labor Day as a Federal holiday, the Labor movement in the United States has experienced many peaks and valleys since 1894. During the early 20th Century, the labor movement gained significant strength, leading to major labor laws, improved working conditions, and culminating with the establishment of the eight-hour workday. But there were tragic events, too. The Triangle Shirtwaist Factory fire is one of the deadliest industrial disasters in U.S. history. This fire caused death of 146 mostly young immigrant woman and ultimately led to significant reforms in safety standards.

Times weren’t as rosy during President Wilson’s eight-year tenure in office, as union membership and activities were disrupted by vigilante groups supported by American corporations. However, shortly thereafter, Ford Motor Company adopted the two-day weekend in 1926 to improve worker productivity and morale (I thought it was created to allow us to watch football). The conclusion of World War II witnessed a rebirth for Unions that once again thrived as the post-war economic expansion led to greater wages and benefits for workers, including more secure retirement benefits due to greater use of defined benefit pension plans.

Regrettably, during the later stages of the 20th century, union membership once again began to decline, this time due to a series of factors that combined to reduce labor’s overall influence including globalization, changes from a manufacturing-led to a service-focused economy, technological advancements, and anti-union legislation. However, in recent years, there has been a renewed interest in labor issues, with movements advocating for higher minimum wages, better working conditions, and support for gig economy workers. In addition, the PBGC is currently implementing the Butch Lewis Act, which was attached to ARPA in March 2021, with the goal to protect and preserve the promised retirement benefits for millions of American workers.

Again, as we sit back and enjoy good company, food, beverages, and a little R&R, remember the sacrifices made by countless American workers and their unions who sought better working conditions, wages, benefits, etc. that we all enjoy today. It’s through the strength of unions that further gains will be made.

“True heroism is remarkably sober, very undramatic. It is not the urge to surpass all others at whatever cost, but the urge to serve others at whatever cost.” — Arthur Ashe