Each day, Benzinga takes a look back at a notable market-related moment that occurred on this date.
What Happened? On Feb. 11, 1937, General Motors Company (NYSE:GM) quelled a six-week workers strike by signing the industry’s first union contract.
Where The Market Was: The S&P 500 traded in the low 18s, and the Dow Jones Industrial Average traded around 3,337.
What Else Was Going On In The World? Over the next week, the Rams developed a NFL franchise in Cleveland, and DuPont Corp patented nylon. The U.S. presidential Inauguration day had moved from March to January that year.
GM Validates The UAW: After a six-week sit-down strike at Flint’s Fisher Body Plant No. 2, the United Auto Workers finally pressured cooperation. GM president Alfred P. Sloan signed the auto industry’s first union contract, which granted assembly workers improved labor conditions and job security. It also awarded the UAW sole bargaining rights on behalf of the factory workforce.
Prior to the settlement, management had planned to wait out the strike. Local police had shut off the factory heat and prevented outsiders from delivering food to protesters. An ensuing riot injured both strikers and police officers, prompting the Michigan governor to surround the plant with National Guardsmen.
The protesters garnered nationwide sympathy and ultimately inspired intervention by President Franklin Roosevelt. Their ultimate victory led to UAW representation at both Chrysler and Ford Motor Company (NYSE:F).
Photo credit: Car TV 'GM Flint Manufacturing Plant', YouTube.
