Pullman

Introduction

The aim of this report is to detail my findings on the reasons for the strike called by the employees of Pullman Palace Car Company (PPCC) and recommendations for ways to improve PPCC's relationship with the striking workers and their families.

Background

I have attempted to find, through my discussions with numerous employees, their family members and members of the UAR strike committee, the sources of their grievances.

The complaints of the workers are numerous, ranging from accusations of unfair methods used to calculate the piece-rate system for the shop employees in Pullman proper, troubles between workers and Foremen who regularly showed favoritism to certain employees, a general disappointment with the refusal to reinstate H. H. Sessions as the General Superintendent, the stoppage of subsidized rail-fare for employees between Pullman and Chicago, the suspicion by workers that the company regularly hired "spies" to investigate them thus encroaching upon their privacy, and largely, the refusal of PPCC to reduce rent rates for residents of the town, where PPCC is landlord.

The employees are also upset because their wages have been cut and replaced by the piece-rate pay system, to which many of the workers claim that the rates were unfairly calculated based on the production abilities of veteran and more experienced workers. A major complaint is that while the pay rates were cut, the rent prices were not cut to accommodate for the reduction in earnings. Furthermore, the workers feel that their pay cuts were unfair since the salaries of the company officers remained unchanged.

Other reasons attributed to the calling of the strike are external influences such as the media and rumors on Wall Street. While the stock market reacted negatively to media reports that the company has been taking new contracts at below cost and the subsequent announcement by PPCC that the company was operating at a profit (to restore investor's confidence), the workers felt that their wages remained unfairly low and that they were being lied to by their employer. There is also a general sense that the shop employees felt strongly disconnected with upper management and that their demands were not being acknowledged with seriousness.

While the concept of Pullman town is to be employer and landlord, the inflexibility of the management to reduce the price of rents for the company's employees was probably due to the fact that the huge costs to build the somewhat lavish facilities did not allow for the reduction and thus proved disadvantageous for the company. It is my recommendation that once the company finds the time appropriate (after economic