The automobile industry had long discouraged unions. Workers knew they could lose their jobs for trying to organize, and faced corporate spies who reported any pro-union activity back to management. According to historian Timothy P. Lynch, General Motors invested $1 million in surveillance between 1933 and 1936. For many auto workers, unions simply weren’t worth risking their jobs—pay was relatively good, and when workers were laid off they were often rehired at higher rates once a company’s profits rose.
But then the Great Depression hit in 1929. Car sales collapsed, and the industry’s production levels sagged. Automakers slashed jobs, axing thousands of employees with no regard for seniority. Those who did keep their jobs tolerated abysmal working conditions, afraid to speak up lest they be laid off, too. The story was the same across the entire economy, and stoked discontent among jobseekers and workers alike.
Meanwhile, the nation’s largest automaker, General Motors, was actually experiencing an uptick in sales thanks to its aggressive response to the Great Depression. When the economy had begun to spin out of control, GM had slashed prices, cut production of some more expensive models, and laid off huge swaths of its workforce. The moves helped keep GM on top.
By 1936, writes historian Stephen W. Sears, it dominated more than 43 percent of the domestic market, and was the nation’s most profitable automaker. But GM had maintained its grip on the automobile market at the expense of its own workers. After laying off thousands, it hired many back, but didn’t take seniority into account and paid lower wages than before. “Assembly lines were speeded up mercilessly to raise productivity and restore profit levels,” writes Sears.
Workers chafed at the grueling pace, the dangerous work and the company’s habit of laying off workers at will. “I have absolutely seen them hire a hundred men and fire a hundred all the same day,” recalled Ray Holland, a Chevrolet worker, in an oral history. You never knew whether you had a job or not.”