Employers Group
Encyclopedia
Employers Group was founded as the Merchants and Manufacturers Association in 1896 in California. It has become a worldwide organization advocating for employers and giving guidance about employment laws and regulations, professional development, consulting projects, and compensation and workplace trends surveys.
When founded, the organization's goal was to secure the open shop
in all workplaces in the city. In the latter half of the 20th century, the organization became a human resources
consulting firm. In 1993, the Merchants and Manufacturers Association merged with the Federated Group of San Francisco to create the Employers Group. The organization's current president and chief executive officer is Mark Wilbur.
.
The association launched a number of civic projects early in its history. In 1897, it created the annual Fiesta de las Flores to promote locally produced goods and services. The festival eventually merged with the Tournament of Roses Parade in Pasadena, California
.
, publisher of the Los Angeles Times, joined the body in 1896, the association underwent a transformation. It adopted a new name (the Merchants and Manufacturers Association, or M&M), and began vehemently promoting the open shop
. The nascent labor movement in Los Angeles collapsed, and Los Angeles remained largely union-free until the 1930s.
On October 1, 1910, a bomb exploded at a printing plant owned by the Times. Twenty-one workers were killed in the fire which followed. Otis declared the bombing the "Crime of the Century" and used his newspaper's large circulation to whip up public sentiment against unions. A second bombing at an iron works in the city on Christmas Day worsened the hysteria in the city. The M&M contributed $50,000 ($1.1 million in 2007 dollars) to a city effort to hire private detectives to track down the perpetrators. In April 1911, Ortie McManigal, a staff representative with the International Association of Bridge and Structural Iron Workers
, was apprehended by private detectives in Illinois
. McManigal confessed to bombing the iron works and implicated the union's national secretary-treasurer, James B. McNamara, and his brother, John J. McNamara, in the Times bombing.
The American Federation of Labor
(AFL), Eugene Debs and others rallied to the defense of The McNamara Brothers. The brothers were defended in court by famed attorney Clarence Darrow
. Darrow was increasingly skeptical of the chance for an acquittal. Darrow attempted to arrange a plea bargain. The state of California was on the verge of accepting the plea bargain when Darrow was arrested for attempting to bribe a member of the jury. The state rejected the plea. James McNamara was sentenced to life, and died in San Quentin State Prison
of cancer in 1941. His brother John McNamara served seven years, and died a few months after his brother of a heart attack in Butte, Montana
. Darrow was tried for attempted bribery. The first trial ended in a mistrial, the second in a jury deadlock. The state dropped the charges against Darrow.
In 1921, the Industrial Relations Committee of San Francisco formed to promote the open shop in San Francisco
. In time, that organization changed its name to the "Federated Employers of the Bay Area" and merged with the M&M in 1993.
, a retired vice chairman of the Southern Pacific Railroad
. Southern Californians was founded ostensibly to promote the welfare of Los Angeles, but in testimony before the United States Congress
later that year its leaders admitted that its sole goal was the preservation of the open shop. In less than three years, it had collected more than $523,000 from 12 major Los Angeles companies to fight the city's unions. Southern Californians spent $48,000 create two other front-groups: "The Neutral Thousands" (which claimed 109,000 members but had had only 250; it had copied names out of the telephone book and put them on its "official" membership list) and "Women of the Pacific" (led by a strikebreaker
from Seattle
).
M&M and Southern Californians decided the best way to stamp out unions was to remove the unions' most powerful weapons: The strike and picket line. M&M quickly established its own front group, the Employers' Advisory Service, to help employers set company union
s. Both Southern Californians and M&M spent more than $123,000 in 1937 to promote a voter referendum which would outlaw the strike and picket line. Their opportunity came when a Republican Party
group began digging up dirt on Republican Mayor
Frank L. Shaw
. Voters were outraged when a private detective employed by the reform group was nearly killed by a car bomb planted by Shaw's organization. Another Republican, Superior Court Judge Fletcher Bowron
, began a recall effort against Shaw. M&M and Southern Californians used the recall election to push through their ordinance. The new law explicitly outlawed picketing entirely unless a majority of a firm's employees was on strike, made it illegal for anyone except a striking employee to picket a firm, limited pickets to one person per entrance or pickets at least 25 feet apart, prohibited coercion and intimidation by unions, forbade unions to talk to workers at home, and even outlawed unions' use of abusive or foul language. A compromise referendum pushed by the AFL prohibited public disorder and intimidation but not picketing. The voters approved the M&M referendum, turned out Mayor Shaw, and elected Judge Bowron (who had flatly condemned the M&M referendum as blatantly unconstitutional).
M&M's activities were later exposed before the La Follette Committee in 1937 and 1938.
When founded, the organization's goal was to secure the open shop
Open shop
An open shop is a place of employment at which one is not required to join or financially support a union as a condition of hiring or continued employment...
in all workplaces in the city. In the latter half of the 20th century, the organization became a human resources
Human resources
Human resources is a term used to describe the individuals who make up the workforce of an organization, although it is also applied in labor economics to, for example, business sectors or even whole nations...
consulting firm. In 1993, the Merchants and Manufacturers Association merged with the Federated Group of San Francisco to create the Employers Group. The organization's current president and chief executive officer is Mark Wilbur.
Formation and early history
Employers Group was founded in 1893 in Los Angeles as the Merchants Association. Its goal was to promote local products, and manufacturing companies, railroads, shipping companies, department stores, breweries and food markets were some of its charter members. One of its most prominent members was the Los Angeles TimesLos Angeles Times
The Los Angeles Times is a daily newspaper published in Los Angeles, California, since 1881. It was the second-largest metropolitan newspaper in circulation in the United States in 2008 and the fourth most widely distributed newspaper in the country....
.
The association launched a number of civic projects early in its history. In 1897, it created the annual Fiesta de las Flores to promote locally produced goods and services. The festival eventually merged with the Tournament of Roses Parade in Pasadena, California
Pasadena, California
Pasadena is a city in Los Angeles County, California, United States. Although famous for hosting the annual Rose Bowl football game and Tournament of Roses Parade, Pasadena is the home to many scientific and cultural institutions, including the California Institute of Technology , the Jet...
.
The open shop battle
M&M's focus over its first three decades was primarily on industrial relations. The Merchants Association had acted primarily as a promoter of local industry. But when Harrison Gray OtisHarrison Gray Otis
Harrison Gray Otis was the president and general manager of the Times-Mirror Company, publisher of the Los Angeles Times.-Early life:...
, publisher of the Los Angeles Times, joined the body in 1896, the association underwent a transformation. It adopted a new name (the Merchants and Manufacturers Association, or M&M), and began vehemently promoting the open shop
Open shop
An open shop is a place of employment at which one is not required to join or financially support a union as a condition of hiring or continued employment...
. The nascent labor movement in Los Angeles collapsed, and Los Angeles remained largely union-free until the 1930s.
On October 1, 1910, a bomb exploded at a printing plant owned by the Times. Twenty-one workers were killed in the fire which followed. Otis declared the bombing the "Crime of the Century" and used his newspaper's large circulation to whip up public sentiment against unions. A second bombing at an iron works in the city on Christmas Day worsened the hysteria in the city. The M&M contributed $50,000 ($1.1 million in 2007 dollars) to a city effort to hire private detectives to track down the perpetrators. In April 1911, Ortie McManigal, a staff representative with the International Association of Bridge and Structural Iron Workers
International Association of Bridge, Structural, Ornamental and Reinforcing Iron Workers
The International Association of Bridge, Structural, Ornamental and Reinforcing Iron Workers is a union in the United States and Canada, which represents primarily construction workers, as well as shipbuilding and metal fabrication employees.-Origins:...
, was apprehended by private detectives in Illinois
Illinois
Illinois is the fifth-most populous state of the United States of America, and is often noted for being a microcosm of the entire country. With Chicago in the northeast, small industrial cities and great agricultural productivity in central and northern Illinois, and natural resources like coal,...
. McManigal confessed to bombing the iron works and implicated the union's national secretary-treasurer, James B. McNamara, and his brother, John J. McNamara, in the Times bombing.
The American Federation of Labor
American Federation of Labor
The American Federation of Labor was one of the first federations of labor unions in the United States. It was founded in 1886 by an alliance of craft unions disaffected from the Knights of Labor, a national labor association. Samuel Gompers was elected president of the Federation at its...
(AFL), Eugene Debs and others rallied to the defense of The McNamara Brothers. The brothers were defended in court by famed attorney Clarence Darrow
Clarence Darrow
Clarence Seward Darrow was an American lawyer and leading member of the American Civil Liberties Union, best known for defending teenage thrill killers Leopold and Loeb in their trial for murdering 14-year-old Robert "Bobby" Franks and defending John T...
. Darrow was increasingly skeptical of the chance for an acquittal. Darrow attempted to arrange a plea bargain. The state of California was on the verge of accepting the plea bargain when Darrow was arrested for attempting to bribe a member of the jury. The state rejected the plea. James McNamara was sentenced to life, and died in San Quentin State Prison
San Quentin State Prison
San Quentin State Prison is a California Department of Corrections and Rehabilitation state prison for men in unincorporated San Quentin, Marin County, California, United States. Opened in July 1852, it is the oldest prison in the state. California's only death row for male inmates, the largest...
of cancer in 1941. His brother John McNamara served seven years, and died a few months after his brother of a heart attack in Butte, Montana
Butte, Montana
Butte is a city in Montana and the county seat of Silver Bow County, United States. In 1977, the city and county governments consolidated to form the sole entity of Butte-Silver Bow. As of the 2010 census, Butte's population was 34,200...
. Darrow was tried for attempted bribery. The first trial ended in a mistrial, the second in a jury deadlock. The state dropped the charges against Darrow.
In 1921, the Industrial Relations Committee of San Francisco formed to promote the open shop in San Francisco
San Francisco, California
San Francisco , officially the City and County of San Francisco, is the financial, cultural, and transportation center of the San Francisco Bay Area, a region of 7.15 million people which includes San Jose and Oakland...
. In time, that organization changed its name to the "Federated Employers of the Bay Area" and merged with the M&M in 1993.
1930s
In 1937, M&M was joined in the labor relations field by a new organization, Southern Californians, Inc. Sponsored by the Los Angeles Times, the group was led by Paul ShoupPaul Shoup
Paul Shoup was an American businessman, president and later vice-chairman of the Southern Pacific Railroad in the 1920s and 1930s, a founding board member of the Stanford University School of Business, and founder of the community of Los Altos, California.-Family:He was the third of five children...
, a retired vice chairman of the Southern Pacific Railroad
Southern Pacific Railroad
The Southern Pacific Transportation Company , earlier Southern Pacific Railroad and Southern Pacific Company, and usually simply called the Southern Pacific or Espee, was an American railroad....
. Southern Californians was founded ostensibly to promote the welfare of Los Angeles, but in testimony before the United States Congress
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
later that year its leaders admitted that its sole goal was the preservation of the open shop. In less than three years, it had collected more than $523,000 from 12 major Los Angeles companies to fight the city's unions. Southern Californians spent $48,000 create two other front-groups: "The Neutral Thousands" (which claimed 109,000 members but had had only 250; it had copied names out of the telephone book and put them on its "official" membership list) and "Women of the Pacific" (led by a strikebreaker
Strike action
Strike action, also called labour strike, on strike, greve , or simply strike, is a work stoppage caused by the mass refusal of employees to work. A strike usually takes place in response to employee grievances. Strikes became important during the industrial revolution, when mass labour became...
from Seattle
Seattle, Washington
Seattle is the county seat of King County, Washington. With 608,660 residents as of the 2010 Census, Seattle is the largest city in the Northwestern United States. The Seattle metropolitan area of about 3.4 million inhabitants is the 15th largest metropolitan area in the country...
).
M&M and Southern Californians decided the best way to stamp out unions was to remove the unions' most powerful weapons: The strike and picket line. M&M quickly established its own front group, the Employers' Advisory Service, to help employers set company union
Company union
A company union is a trade union which is located within and run by a company or by the national government, and is not affiliated with an independent trade union. Company unions were outlawed in the United States by the 1935 National Labor Relations Act, due to their use as agents for interference...
s. Both Southern Californians and M&M spent more than $123,000 in 1937 to promote a voter referendum which would outlaw the strike and picket line. Their opportunity came when a Republican Party
Republican Party (United States)
The Republican Party is one of the two major contemporary political parties in the United States, along with the Democratic Party. Founded by anti-slavery expansion activists in 1854, it is often called the GOP . The party's platform generally reflects American conservatism in the U.S...
group began digging up dirt on Republican Mayor
Mayor of Los Angeles, California
The mayor of Los Angeles is the chief executive officer of the city. He is elected for a four-year term and limited to serving no more than two terms. Under the California Constitution, all judicial, school, county, and city offices, including those of chartered cities, are nonpartisan...
Frank L. Shaw
Frank L. Shaw
Frank L. Shaw was the first mayor of a major American city to be recalled from office, in 1938. He was also a member of the Los Angeles City Council and then the Los Angeles County Board of Supervisors...
. Voters were outraged when a private detective employed by the reform group was nearly killed by a car bomb planted by Shaw's organization. Another Republican, Superior Court Judge Fletcher Bowron
Fletcher Bowron
Fletcher Bowron was the 35th Mayor of Los Angeles, California from September 26, 1938 until June 30, 1953. Until Thomas Bradley passed his length of service during the 1980s, Bowron held the distinction of having the longest tenure in that position in city history.Bowron was born in Poway,...
, began a recall effort against Shaw. M&M and Southern Californians used the recall election to push through their ordinance. The new law explicitly outlawed picketing entirely unless a majority of a firm's employees was on strike, made it illegal for anyone except a striking employee to picket a firm, limited pickets to one person per entrance or pickets at least 25 feet apart, prohibited coercion and intimidation by unions, forbade unions to talk to workers at home, and even outlawed unions' use of abusive or foul language. A compromise referendum pushed by the AFL prohibited public disorder and intimidation but not picketing. The voters approved the M&M referendum, turned out Mayor Shaw, and elected Judge Bowron (who had flatly condemned the M&M referendum as blatantly unconstitutional).
M&M's activities were later exposed before the La Follette Committee in 1937 and 1938.
See also
- Lloyd G. DaviesLloyd G. DaviesLloyd G. Davies was a Hollywood advertising and public relations man and sometime actor who was a Los Angeles City Council member from 1943 to 1951.-Biography:...
, Los Angeles City Council member, 1943–51, M&MA public relations representative