Table Of ContentECONOMIC IMPLICATIONS QF THE IMPACT OF TRADE UNIONISM
ON THE SOUTHERN MANUFACTURING INDUSTRY
A Dissertation
Submitted to the Graduate Faculty of the
Louisiana State University and
Agricultural and Mechanical College
in partial fulfillment of the
requirements for the degree of
Doctor of Philosophy
in
The Department of Economics
toy
John Pipkin Owen
B*A*, Louisiana State University, 19 hi
Louisiana State University, 19UU
August, 19h9
UMI Number: DP69338
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MANUSCRIPT THESES
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LOUISIANA. STATE UNIVERSITY LIBRARY
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kommmmmms
fha author wishes to esprsas his appreciation to all the members
of the Adviscry Committee* Dr* HariM J* King* Br# H. I* McCracken,
Br# S* 4* Qaldw&U* Br# Stanley W* Preston, and Dr* ff* H* Baughn.
Br* Harold J* King played a ksy part in the conception of the
ana^rtioal problem and in the shaping of the rough draft of the diseer*
tatiea into a more finished product* Dr* H* I* McCracken provided the
candidate with hie training in economic theory and with tisely insistence
minded him of the academic discipline required for the successful
completion of the degree* Br* S» A* Caldwell constantly held a hi#i
standard of achievement before the candidate and left him with a
clearer of the integrity of the degree* hr* Stanley W*
Preston was an inspiring source of encouragement and an advisor In the
true meaning of the word* Br* W* H. Baughn was a sure touchstone for
ideasf and his comprehensive knowledge of the sources of basic economic
data was of groat help*
the author also wishes to acknowledge the indispensable aid of
Hr#* Darotiqr Wilson, Hiss Frances Holliday, hr* Ismael Oonaales^Celimsn,
HT« Terrenes Hebert, Mr* 0uy Sherrill, and Mr* James Allan Horton*
Their coatoinsd efforts transformed basic data and rough draft into
finished text and tables*
3 U 7 £
3
IS 4 Hi .'2 3
ii
I W
6.^
TABLE OF CONTENTS
Chapter
I. THE DEVELOPMENT OF TRADE UNIONISM IN THE SOUTH *........ 1
INTRODUCTION . *...* 1
EAHLT PERIOD (TO 1890) ............... .............. 2
THE MIDDLE PERIOD (1890-1932) ......... ............... 6
1897-1911* ........... ........................... 7
1915-1919 U
1920-1933 ...... *.......... *....*****........ 13
THE MODERN PERIOD (1933-1918) ......................* 21
OTHER AREAS OF INDUSTRIAL UNIONISM ......... 38
Conclusion 39
THE SOUTHERN ORGANIZING CAMPAIGNS OF 191*6 ....«... 1*0
II. THE UNIONS' CASE FOR ORGANIZING SOUTHERN LABOR .... 59
III* SOME OBJECTIONS TO TRADE UNIONISM IN THE SOUTH .... 66
IV* THE IMPACT OF TRADE UNIONISM ON THE WAGE STRUCTURE OF
SELECTED SOUTHERN MANUFACTURING INDUSTRIES............ 73
INTRODUCTION 73
MATURE AND SOURCE OF WAGE DATA 75
DIFFERENTIALS IN UNION AND NONUNION WAGES IN THE
SOUTHEAST, THE SOUTHWEST, AND THE UNITED STATES .. 82
Selected industries, number of -workers employed,
and number of workers sampled 82
iil
Differentials in union and nonunion average straight-
tine hourly earnings in the United States, the South
east, and the Southwest 87
Differentials in average straight-time hourly earnings
between union and nonunion workers in selected
industries in the Southeast compared with the per cent
of unionization among all workers in the selected
industries ................................ 96
Differentials in average straight-time hourly earnings
between union and nonunion workers, in selected occupa
tions, in selected industries, in the United States
compared with the percentage of unionisation among all
workers in the selected Industries » * * * • • « 9 8
Differences in the union to nonunion wage differentials
between the United States and the Southeast compared
with differentials in per cent of unionization between
the United States and the Southeast, in selected occupa
tions, in selected industries *100
Differentials in average straight-time hourly earnings
between union and nonunion workers compared with
differentials in average straight-time hourly earnings
between workers in cities of different size, in selected
occupations, in selected industries, in the Southeast** 106
Differentials in average straight-time hourly earnings
iv
earnings between union and nonunion workers compared
with differentials in average straight-time hourly
earnings between workers in plants of different else*
in selected occupations, in selected industries, in
the Southeast 110
Average straight-time hourly earnings of union and
nonunion workers, workers in cities of different else
and workers in plants of different alee cor pared with
average straight-time hourly earnings for all workers
in selected occupations, in selected Industries, in
the Southeast *•••#••*•«###•#«•«•**••••*«••*••»«•*••«* Hi*
Conclusions ............................. 120
RROIOHAL WAGE DIFFERENTIALS ...... 123
Differentials in average straight-time hourly earnings
in selected industries in the United States, the
Southeast, and the Southwest *•***•»••«»*»««•••••*•", 123
Southeast-United Hates straight-time-average-hourly-
eamings ratios compared with the per cent of unionisa
tion in selected manufacturing industries in the South
east and with the percentage-pcdnt differences in per
c^nt of unionisation between the United Hates and the
Southeast in the same selected manufacturing industries 135
Soutlieastem-United States straight-time-aver age-hourly -
earnings ratios compared with the Southeastern mion
to nonunion wag® dif!erentials and with differences in
the union to nonunion wage differentials between the
United States and the Southeast «*•«..*.# ........ 11(0
Conclusions ....................................... 11(3
TRENDS IN SOUTHf*RN USAGE DIFFERENTIALS ................. 11(5
Introduction .... .............. «.*.*, 1U5
United States Bureau of Labor Statistics1 Survey ,,,M ^6
Bichard A. Lester’s Survey ••*•••«• ••••*•*•«*•........ 3.92
Study of South-non-South wage ratios based on annual
earnings In the South and the rest of the United
States, as reported in. the Census of Manufactures.
1919, 192?f 1939# and 1 ...... , 169
V. ECONOMIC CAUSES OF SOUTHERN MAGE .DIFFERENTIALS W THE
ECONOMIC CONSEQUENCES OF THEIR E L I M I N A T I O N 179
INTKGBUGTICN «................. Xy9
THE THEORY OF REGIONAL MADE DIFJ»EMTIAIS AND THE.
EXTENT OF THEIR ECONOMIC JUSTIFICATION ................ 1Q2
Introduction x82
Marginal Productivity Theory of ^agea ....... x82
Interregional differences in the skill of labor ****** 18L
Interregional differences in the cost of living •••••* i81(
Interregional differences in labor supply relative
to job opportunities ....... x85
Interregional differences in the composition of the
vi
labor force ........ 186
Interregional differences in the nature of the
finished product, the amount of capital equipment
used per worker, and the managerial skill with
which production is organised a*******'**** •«•»•»•«*•* 187
Interregional differences in the degree of competi
tion existing on the buyers’ side of the labor
market 190
Interregional differences in the degree of competi
tion existing on the sellers1 side of the labor
market 191
HISTORICAL CAUSES OF THE SOUTHERN WAGE DIFFERENTIALS IN
THE MANUFACTURING INDUSTRY ........... 193
Introduction 193
Labor supply relative to job opportunities......... 19I4
Composition of labor force ...... 201
The cost of living «*»»*«*««*•*.«»*•»•.216
Monopoly on the buyers’ side of the labor nmrket 222
Degree of competition on the sellers’ side of the
labor market .... . 231
Differences in labor skill, managerial ability, and
amount of capital equipment used per worker .... 238
ECONOMIC CONSEQUENCES OF THE ELIMINATION OF THE SOUTHERN
WAGE DIFFERENTIALS IN THE MANUFACTURING INDUSTRY..... 2^8
vii
Introduction .......... 2*>8
Extent of Southern wage differentials in the
manufacturing industry ***'.«»..*.*»**.*««**•«»*«*«.•• 261
Historical causes of Southern wage differentials 262
Probable economic oonse'immm of the elimination
of the Southern wage differentials in the manu
facturing industry 26?
THE BIPACT Of THE B88SDIATK ELX14imTI0N OP THE D0UTHEH8
WAGE DIFFERENTIA!*} ON THE TOTAL COSTS OF SELECTED MANU
FACTURING INDUSTRIES .................. 27U
OTHER FACTORS WHICH INFLUENCE THE DEVELOPMENT OF THE
SO’THKRH JIAHUFACmiSa BUXOTHS *.... . 277
VI. BXBLXOGRAFHT ........ 279
VII* VITA .... 289
viil
