Homestead Strike - Plans of Carnegie and Frick

Plans of Carnegie and Frick

Andrew Carnegie placed industrialist Henry Clay Frick in charge of his company's operations in 1881. Frick resolved to break the union at Homestead. "The mills have never been able to turn out the product they should, owing to being held back by the Amalgamated men." he complained in a letter to Carnegie.

Carnegie was publicly in favor of labor unions. He condemned the use of strikebreakers and told associates that no steel mill was worth a single drop of blood. But Carnegie agreed with Frick's desire to break the union and "reorganize the whole affair, and . . . exact good reasons for employing every man. Far too many men required by Amalgamated rules." Carnegie ordered the Homestead plant to manufacture large amounts of inventory so the plant could weather a strike. He also drafted a notice (which Frick never released) withdrawing recognition of the union.

With the collective bargaining agreement due to expire on June 30, 1892, Frick and the leaders of the local AA union entered into negotiations in February. With the steel industry doing well and prices higher, the AA asked for a wage increase; the AA represented about 800 of the 3,800 workers at the plant. Frick immediately countered with a 22% wage decrease that would affect nearly half the union's membership and remove a number of positions from the bargaining unit. Carnegie encouraged Frick to use the negotiations to break the union: "...the Firm has decided that the minority must give way to the majority. These works, therefore, will be necessarily non-union after the expiration of the present agreement." Carnegie believed that the Amalgamated was a hindrance to efficiency; furthermore it was not representative of the workers. It admitted only a small group of skilled workers. It was in its own way an elitist, discriminatory organization that was not worthy of the Republic, Carnegie felt.

Frick announced on April 30, 1892 that he would bargain for 29 more days. If no contract was reached, Carnegie Steel would cease to recognize the union. Carnegie formally approved Frick's tactics on May 4. Then Frick offered a slightly better wage scale and advised the Superintendent to tell the workers, "We do not care whether a man belongs to a union or not, nor do we wish to interfere. He may belong to as many unions or organizations as he chooses, but we think our employees at Homestead Steel Works would fare much better working under the system in vogue at Edgar Thomson and Duquesne."