Dignity, Status, and Function: Pay Attention to the New Concerns of Knowledge Workers

The recently averted railroad worker strike reminded me of an important event in history that most people today are probably unaware of. In 1877, rail workers across the United States went on strike, creating what historians now refer to as the Great Railroad Strike. When historians think an event was significant, causing some kind of cultural, economic, social or other upheaval, they designate it with the term “Great” (the Great Depression, the Great Awakening, the Great Recession).

Peter Drucker looked at events of his time through the lens of a social ecologist: someone looking for meaningful change that has already impacted or would impact society in the long run. This change may be in the form of demographic trends, shifting attitudes, or significant events. In hindsight, we know that the 1877 strike was significant although, at the time, it appeared to be a short-lived, albeit violent, worker uprising.  The Great Railroad Strike showed the changing nature of class identity, and what can happen when people feel a loss of dignity, status and function in society. While certainly not a “great” event, the averted 2022 strike is perhaps another event that points to changing attitudes about work and the continued importance of dignity, status and function. I think it presents us with a moment to consider the nature of work in our post-pandemic environment, particularly as many organizations grapple with challenges related to finding and retaining qualified workers – especially knowledge workers.

Before we get to the details of the 2022 railroad strike that didn’t happen, I’ll give a brief summary of the Great Railroad Strike. Economic conditions in 1877 were grim. The United States suffered an economic “panic” in 1873, when the failure of a major investment firm triggered a loss of confidence in the financial markets. The country plunged into a depression, and firms began cutting jobs and wages, raising unemployment and further dampening the economy. The railroads, which were the primary means of transporting goods across the United States, had been a growth industry until the Panic of 1873, and employed large numbers of workers. In May of 1877, the Pennsylvania Railroad, the nation’s largest railroad, cut wages by ten percent, and then cut them by another ten percent the following month. Other railroad companies did the same thing, and also cut the work week down to a couple of days. In July, the Pennsylvania Railroad doubled the size of its eastbound trains with no increase in staff to manage the additional workload. In that month, workers began to rebel, taking control of train switches and preventing cars from moving. Violent strikes began to erupt in cities across the country; Maryland, West Virginia and Pennsylvania called up their state militias to respond to the violence. In some cities, militia members sympathized with the strikers, and joined in. President Rutherford B. Hayes called in federal troops, and in Pittsburgh, these troops fired into crowds of people, killing more than 20 civilians. By the end of July, the strike had subsided, leaving 100 people dead across the country and over a thousand arrested.

The workers received none of their demands (better pay, restored hours), and labor unrest continued in the industry well through the late 1800s. So why was this such a momentous event?

·     Public support: Mark Twain published The Gilded Age: A Tale of Today in 1873. In this novel, he satirizes the wealth inequality that was a feature of American society in the late nineteenth century. The greed and political corruption of this era is well documented; as working-class Americans became increasingly aware of the growing class divisions in society, they sympathized with the railroad strikers. This public opinion fueled an eventual call for labor reform.

·     Multi-industry support: This was the first general strike in American history, where workers from other industries supported the rail workers. The Great Railroad Strike touched a nerve in the growing working class, who felt devalued, increasingly marginalized, and exploited by a wealthy ruling class.

·     Catalyst for unionization: At the time, there were few organized labor unions; organized labor consisted of local brotherhoods of primarily skilled workers. The Great Railroad Strike galvanized workers to organize into more effective unions, such as the American Federation of Labor, to attempt to ameliorate their work conditions, hours, and wages.

·     Power: The Great Railroad Strike showed the power of human action. Without any organization and structure, rail workers were able to cripple the transportation network of the United States. Meat rotted on railroad cars, mail was not delivered – an entire national system of order was brought to a halt by a relatively small group of people wielding enormous power.

There are some parallels between the Great Railroad Strike and the averted 2022 railroad strike, and also some remarkable differences. First, the parallels.

·     Essential workers: People in the 1800s paid a LOT of attention to what happened with railroads, because they understood how goods moved through the country, and they felt the impact. The COVID 19 pandemic highlighted the importance of “essential workers,” including those employed in transportation. As supply chain constraints led to shortages of all kinds of goods, from microchips to toys to food items, most Americans, probably for the first time, were unable to purchase some product for lack of supply. During the pandemic, essential workers in health care and grocery stores were heralded as “heroes.” Workers in rail transport received little attention even though that industry experienced enormous upheaval. However, the threat of a strike in 2022 just before the holidays put the railroad industry in the spotlight, showing how, in spite of their small numbers, these workers could inflict considerable damage and pain to the U.S. economy. President Biden cited the devastating effects of a rail strike, pointing to the possible loss of 765,000 jobs. In 1877, railroad workers shut down the economy of the United States in a time where rail transportation was the primary way to ship material interstate. Rail workers were few, but powerful. Today, rail workers are an even smaller portion of the labor force, but they still wield power as essential workers.

·     Industry turmoil: In the late 1800s, the United States was in the throes of an economic decline precipitated by a financial panic. The railroads were the primary source of interstate transportation (and also a new, growth industry, and thus their securities were susceptible to price fluctuations). The railroad industry of the 21^st century also faced considerable turmoil, including international pressure. Following a steady decline since the 1940s, employment in the railroad sector remained relatively stable from the 1980s until 2018, when employment numbers began to drop. One reason for this decline in jobs was the decrease in shipments of coal resulting from a shift away from fossil fuels. Another reason was the uncertain trade relationships the United States had with key partners, particularly China. Tariff threats between the two countries involving both agricultural products and manufactured goods caused rail companies to reconsider hiring new employees. Company practices also played a role. In the early 2000s, the railroad companies began to pursue a business model that emphasized boosting profits by reducing labor costs. The implementation of precision scheduled railroading (PSR) allowed railroads to operate more efficiently, but it also eliminated the business’s ability to have staffing cushions or manage unforeseen circumstances, such as weather disruptions. Finally, like all industries, the nationwide shutdowns forced by the COVID-19 virus outbreak caused widespread unemployment in the railroads. When the economy began to recovery from the pandemic in 2020, the industry faced staffing shortages, and made increasing demands on workers’ already stressed schedules. Train operators don’t have regular days off; when they return from a trip, they are rotated to the bottom of the staffing list to give them time off. However, if the staffing list is short, workers have little to no time off, and are discouraged from taking any paid leave. With deteriorating work conditions, attrition increased, exacerbating the railroad companies’ already stretched staffing problems. As was the case in many other sectors, the “Great Resignation” impacted the rail business, as older workers opted to retire, and younger workers prioritized work-life balance over wages.  So, as in the late nineteenth century, the industry looked to labor reductions to cope with changes in externalities.

·     Lack of dignity, status, and function: In the 19^th century, workers felt devalued for a number of reasons. As America industrialized in the early 1800s, skilled workers saw themselves as partners with management; management and labor both had a seat at the table to negotiate work conditions, output, wages, and goals. In a way, these early years of labor reflected Drucker’s idea of Management by Objectives. Each party saw themselves as having responsibility for the organization’s success. However, as industrialization matured in the late 1800s, coupled with immigration of lower-skilled labor, relations between management and labor soured. Growing class division and economic uncertainty fueled the working class’s sense that they were inferior, unvalued, underpaid, and lacking in status and function. The Great Railroad Strike was but the first of many labor actions that reflected this sense of indignity in a country that preached that hard work would equal success. In 2022, dignity for workers of all kinds means not just money. Railroad workers are highly paid, but cannot take time off for personal needs, such as doctor visits. In the 21^st century, dignity involves being treated as a human being, not an economic being. Drucker wrote about this tirelessly. We should not be surprised that workers who cannot have time to have a meaningful life outside of work should be unhappy and unproductive. Railroad workers are not merely labor inputs.

Now, the historical divergences.

·     Union power: The Great Railroad Strike of 1877 did not involve union participation because there was no railroad union. Today, there are multiple unions representing the various trades associated with railroad work (37 railroads and 12 unions), including machinists, train operators, electricians, blacksmiths, and transportation communication professionals. The interests of all of these parties are not the same. Negotiating a labor agreement requires balancing the desires of all participants and involves compromise. The 2022 agreement was criticized by many – a sign that it was a compromise that involved parties giving in on positions. In 1877, workers had no bargaining power, and violence became the tool of last resort.

·     Unimportance of wages: The Great Strike of 1877 was primarily about wages (and job retention). The workers of 2022 were paid well; the average pay for a train conductor in 2022 was $53,571, and they certainly did not want more hours! The issue in 2022 was about time. As discussed previously, dignity, status and function – aspects that Drucker emphasized from the beginning of his writing – are key in both of these labor actions. In 1877, wages and more hours were valued. Today, workers value time with their families, time to take care of their personal needs, and having a life outside of work, especially if they are an essential worker, stretched to the limit during the pandemic and the years of recovery after. Money is important to cope with inflation and financial stressors, but this strike shows that highly-paid workers can still feel undervalued.

·     Technology: In 1877, the railroads were still relatively new technology. The financial meltdown in 1872 was a result of speculation in railroad securities. By 2022, rail transportation was a very old industry that has undergone major shifts to stay alive and relevant. The railroad industry, like many others, has seen an increased use of technology and a subsequent shift in job requirements for workers. Rather than rely on human eyes for inspecting tracks and equipment, companies use drones and sensors to collect large amounts of information and rely on data analytics to streamline operations and improve safety and efficiency. Positive Train Control (PTC) uses Artificial Intelligence and algorithms to determine the location, direction, and speed of a train on many routes, notifying the train operator of a problem and, if no action is taken, stopping the train. Those tasked with developing and using these new technologies are a new kind of knowledge worker in the rail industry.

Takeaways

·     Knowledge workers are essential workers too. The pandemic shed light on existing class divisions (as well as ethnic, racial, and gender divides). People celebrated “essential” workers who were visible, working on the front lines. But many other workers were just as “essential,” managing freight traffic to accommodate the shift towards purchasing consumer items during the lockdowns. When the economy reopened, these same workers were tasked with managing supply chain issues. In the 19^th century, railroad workers were, for the most part, skilled labor. They are even more so now. We need to think through who is an “essential” worker and what is “knowledge” work.

·     All workers need balance. Workers in the 1800s needed adequate wages and hours to survive – but not to the point of being worked to death. Once unionization provided some control over wages, workers in the late 1800s and early 1900s were pushing for balance. “Eight hours labor, eight hours recreation, eight hours rest” became the rallying cry for an eight-hour work day. Knowledge workers may scoff at such an idea, but for manual laborers in heavy industry, physical labor takes a toll. Today, it is easy for knowledge workers to toil for 12 plus hours a day. But the pandemic created a shift in attitudes about work/life balance. We all need time to manage personal needs (doctor appointments, child care, etc.). Even if work isn’t physically grueling, it shouldn’t prevent us from being human beings.

·     Wages are important in an inflationary environment, but time is more important. Early labor actions fought for better wages and work conditions. Today, wages are important, and lower-skilled workers are fighting for better pay to keep up with the cost of living. Knowledge workers also need to be paid a reasonable wage or salary, especially given our inflationary environment. However, increasingly, time is more valuable to people than money. At some point, the utility of time outweighs the utility of money. The Great Resignation and the threatened railroad strike show that we are seeing this economic tradeoff become more widespread.

·     All workers need a sense of dignity, status, and function. This sounds great. What does it actually look like? It is complicated. In the 1800s, American society began to sort people into an increasingly divided class system, with industrial workers (no matter how skilled) at the bottom. The managerial and professional class began to rise as the new middle class (replacing teachers, tradesmen, and others of the old pre-industrial era), while the wealthy plantation owners and merchants were joined (in many cases surpassed) by a growing upper class of industrial elite. When the working class of the United States sensed a lack of dignity, status and function, they rebelled – and organized. When the organized railroad workers of 2022 sensed a lack of dignity, status and function as a result of years of overwork, they spoke. It seems to me that if managers can grasp the importance of such key aspects of MLA (dignity, status, function), then we can prevent such actions in the future. And, if we can view things through the lens of a social ecologist, we can see the bigger picture, understanding how history can teach us how not to repeat the errors of the past.

https://www.digitalhistory.uh.edu/disp_textbook.cfm?smtid=2&psid=3189

https://www.nytimes.com/2022/09/15/business/economy/railroad-workers-strike.html

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https://www.bls.gov/opub/mlr/2021/article/employment-in-rail-transportation-heads-downhill-between-november-2018-and-december-2020.htm

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