Though workers in many states started throwing Labor Day parades throughout the 1880s, it might never have become a national holiday if not for a historic strike and boycott that started in May 1894, when employees of a railcar manufacturer called Pullman Palace Car Company suffered deep wage cuts. They were joined in a sympathy boycott by the American Railway Union, which had around 150,000 members.
This huge coalition disrupted the nation; the USPS couldn't deliver mail in certain parts of the country. Railway transportation was an essential service, and essential workers were demanding better treatment.
In the midst of this unrest, President Grover Cleveland signed a law making Labor Day an official holiday, which some historians say was a move to make workers less hostile and to calm the waters during a period of continued labor discontent.
On July 4th, Cleveland sent 10,000 federal troops to Chicago to brutally end the strike. Thirteen workers were killed and 53 seriously injured there, with more than 30 killed throughout the nation that summer. The strike ended in failure for the Pullman workers, who won none of their demands.
Railway companies started to hire nonunion workers to restart business. By the time the strike ended, it had cost the railroads millions of dollars in lost revenue and in looted and damaged property. Striking workers had lost more than $1 million in wages.
On July 20, 1894, the strike ended. Less than two weeks later, the Pullman Company reopened their doors, agreeing to rehire the striking workers on one condition — they would sign a pledge to never join a union.
