THE ORIGINS OF LABOR DAY (PBS online)

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The observance of Labor Day began over 100 years ago. Conceived by America's labor unions as a testament to their cause, the legislation sanctioning the holiday was shepherded through Congress amid labor unrest and signed by President Grover Cleveland as a reluctant election-year compromise. Read about the turbulent circumstances of Labor Day's birth, browse NewsHour segments on labor and the economy, and explore labor-related resources on the Internet.

Pullman, Illinois was a company town, founded in 1880 by George Pullman, president of the railroad sleeping car company. Pullman designed and built the town to stand as a utopian workers' community insulated from the moral (and political) seductions of nearby Chicago.

The town was strictly, almost feudally, organized: row houses for the assembly and craft workers; modest Victorians for the managers; and a luxurious hotel where Pullman himself lived and where visiting customers, suppliers, and salesman would lodge while in town.

Its residents all worked for the Pullman company, their paychecks drawn from Pullman bank, and their rent, set by Pullman, deducted automatically from their weekly paychecks. The town, and the company, operated smoothly and successfully for more than a decade.

But in 1893, the Pullman company was caught in the nationwide economic depression. Orders for railroad sleeping cars declined, and George Pullman was forced to lay off hundreds of employees. Those who remained endured wage cuts, even while rents in Pullman remained consistent. Take-home paychecks plummeted.

And so the employees walked out, demanding lower rents and higher pay. The American Railway Union, led by a young Eugene V. Debs, came to the cause of the striking workers, and railroad workers across the nation boycotted trains carrying Pullman cars. Rioting, pillaging, and burning of railroad cars soon ensued; mobs of non-union workers joined in.

The strike instantly became a national issue. President Grover Cleveland, faced with nervous railroad executives and interrupted mail trains, declared the strike a federal crime and deployed 12,000 troops to break the strike. Violence erupted, and two men were killed when U.S. deputy marshals fired on protesters in Kensington, near Chicago, but the strike was doomed.

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http://www.pbs.org/newshour/bb/business/september96/labor_day_9-2.html