Financial History Issue 129 (Spring 2019) | Page 10

THE TICKER  CONNEC TING TO COLLEC TIONS The Battle of Wall Street By Sarah Poole, Collections Manager On March 29, 1948, 1,100 union- ized employees of the New York Stock Exchange (NYSE) and the New York Curb Exchange (later the American Stock Exchange), joined in solidarity by 500 members of the Seafarers Union, walked out of their jobs. This marked the begin- ning of the first and only multi-day strike in the histories of both exchanges. The United Financial Employees Union (UFE) was founded by Merritt David Keefe in 1941. Keefe had started working on Wall Street in 1928 as a pageboy for $15 per week. After 13 years, his wages had only risen to $28 per week, and Keefe decided that his best chance for improve- ment would be through the negotiating power of a union. The UFE managed to win a contract with the New York Stock Exchange and organize the New York Curb Exchange before the outbreak of World War II interrupted their efforts. After the war, Keefe and the UFE went back to work with the ultimate goal of organizing the employees of all of the Wall Street exchanges, brokerage houses and banks. Wall Street’s first (and only) union drive began in August 1946. On August 14, 700 NYSE employees (98% of the workers) staged a two-hour walk out to show support for the drive in an unexpected display of strength from the union. The UFE grew to 5,000 and held majority membership at the NYSE, New York Curb Exchange, New York Cotton Exchange and Wall Street’s five largest brokerage houses. In March 1947, the UFE organized a day-long strike at the Cotton Exchange, raising tensions. However, the union’s biggest struggle was with the brokerage houses, who could simply reroute their trades through other firms and render an employee strike ineffective. This led to the idea of attempting to shut down trading at the source—the NYSE. Tensions rapidly Picketers block the 11 Wall Street entrance of the New York Stock Exchange during the “Battle of Wall Street,” March 30, 1948. rose between the union and the exchange, but with intervention from the Mayor’s office, arbitration began in April. Negotia- tions did not progress for nearly a year. The NYSE strike began on March 29, 1948, and the first day of protesting was peaceful. Shortly before 9:00 am on March 30, police approached picketers near the main entrance of the exchange and asked them to move due to a court order that limited picketing in that area. Claire John- son, a 19-year-old secretary, refused and was arrested. Her arrest sparked outrage, and picketers swarmed the police. The violent scuffle lasted only 35 minutes, but resulted in 12 picketer injuries (including two hospitalizations), two police injuries 8    FINANCIAL HISTORY  |  Spring 2019  | www.MoAF.org (one of which was hit by another officer who mistook him for a picketer) and 45 arrests. The fight became known as the “Battle of Wall Street.” The New York Stock Exchange refused to budge from its pre-strike offer of a $3–5 raise and would not return to arbitration. The union did not see success with any of the other exchanges, either. The exchanges had far greater financial resources than the UFE and chose to wait out the strike, which officially ended on April 30, 1948. The NYSE workers ultimately accepted the terms of the pre-strike offer, but 100 workers’ positions were eliminated during the strike. The strike had failed, and Wall Street would not see another.