Saturday, May 09, 2015

How Unions Kept Black People From Working: The Origins of the Davis- Bacon Act

The Freeman reports on what your government school isn't teaching about the less than heroic union movement:
Prior to the enactment of the Davis-Bacon Act, the construction industry afforded tremendous opportunities to blacks, especially in the South. In at least six southern cities, more than 80 percent of unskilled construction workers were black. Blacks also represented a disproportionate number of unskilled construction workers in the North, and constituted a sizable portion of the skilled labor force in both parts of the country.

This was so despite the fact that most of the major construction unions excluded blacks, and that blacks faced widespread discrimination in occupational licensing and vocational training. These unions felt seriously threatened by competition from blacks, and favored any attempt to restrict it.[1]

The co-author of the Act, Representative Robert Bacon, represented Long Island. Bacon was a racist who was concerned lest immigration upset the nation’s “racial status quo.” In 1927, he introduced H.R. 17069, “A Bill to Require Contractors and Subcontractors Engaged on Public Works of the United States to Comply With State Laws Relating to Hours of Labor and Wages of Employees on State Public Works.” This action was a response to the building of a Veterans’ Bureau Hospital in Bacon’s district by an Alabama contractor which employed only black laborers.

Representative William Upshaw, understanding the racial implications of Bacon’s proposal, stated: “You will not think that a southern man is more than human if he smiles over the fact of your reaction to that real problem you are confronted with in any community with a superabundance or large aggregation of negro labor.”[2] Over the next four years, Bacon submitted 13 more bills to regulate labor on federal public works contracts. Finally, the bill submitted by Bacon and Senator James Davis was passed in 1931, at the height of the depression, with the support of the American Federation of Labor. The Act required that contractors working on federally funded projects over $5,000 pay their employees the “prevailing wage.” The law was amended in 1935, reducing the minimum to $2,000 and delegating the power of determining the “prevailing wage” to the Department of Labor. The Department’s regulations governing the determination of wages, remained basically unchanged for five decades and equated the prevailing wage with the union wage in any area that was at least 30 percent unionized. In practice, the “prevailing wage” was almost universally determined to be the same as the union wage.

The debate over Bacon’s bills betrayed the racial animus that motivated passage of the law. Representative John Cochran stated, “I have received numerous complaints in recent months about southern contractors employing low-paid colored mechanics getting work and bringing the employees from the South.”[3] Representative Clayton Algood similarly complained, “That contractor has cheap colored labor that he transports, and he puts them in cabins, and it is labor of that sort that is in competition with white labor throughout the country.”[4] Other derogatory comments were made about the use of “cheap labor,” “cheap, imported labor,” “transient labor,” and “unattached migratory workmen.”[5] While supporters of the Act intended to disadvantage immigrant workers of all races, they were particularly concerned with inhibiting black employment.
Just a reminder. Guess who signed the law? None other than Herbert Hoover, no promoter of the free market in labor or much of anything else. The New Deal really was racist to its' core, with FDR building on the foundation set down by Herbert Hoover the master of unbalanced budgets and increasing government spending. A rather shameful and un-American episode in American history.