The term refers to a post-World War I strategy employed by business leaders to weaken labor unions. Characterized by open shop policies, this approach aimed to eliminate closed shops, which required union membership as a condition of employment. Proponents promoted individual contracts between employers and employees, thereby diminishing the collective bargaining power of organized labor. This was often accompanied by welfare capitalism, a system offering benefits such as pensions and profit-sharing to discourage unionization.
The significance of this strategy lies in its impact on the labor movement during the 1920s. By associating unions with radicalism and undermining their ability to negotiate effectively, it contributed to a decline in union membership and a weakening of labor’s influence in American society. This period saw a shift in power dynamics, favoring employers and impacting wage levels, working conditions, and the overall economic landscape for working-class Americans. The initiative created lasting legal and social ramifications that shaped union negotiations later in history.
