Differential Wages in the National Recovery Administration (NRA) (Edexcel A-Level History): Revision Notes
Differential Wages in the National Recovery Administration (NRA)
Introduction to the NRA
The National Recovery Administration (NRA) was created in June 1933 through the National Industrial Recovery Act (NIRA) and was considered the centrepiece of Roosevelt's New Deal programme. The NIRA established two separate administrations to tackle the economic crisis:
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Public Works Administration (PWA): Received $3.3 billion to fund construction projects including highways, public buildings, bridges, tunnels and military equipment. This aimed to provide immediate employment for the large numbers of unemployed Americans.
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National Recovery Administration (NRA): Led by General Hugh Johnson, this administration focused on creating jobs and raising wages across industries.
NRA codes and standards
The NRA aimed to establish codes of fair practice across different industries. These codes included important provisions designed to protect workers:
- A 40-hour working week to prevent overworking
- A minimum wage of $13 per week (reduced to $12 in the South)
- Prohibition of child labour, defined as employing anyone under 16 years old
- Basic safety standards in the workplace
Businesses that agreed to participate in the NRA scheme were awarded a Blue Eagle logo to display, showing their commitment to fair practices. This logo became a visible symbol of compliance with the NRA codes and was meant to encourage consumer support for participating businesses.
Racial discrimination in NRA wage codes
Despite the progressive intentions of the NRA codes, black Americans faced considerable racial discrimination in how these standards were applied. This discrimination took several forms across different industries.
The cotton textile industry
The first approved NRA code was for the cotton textile industry, which employed large numbers of black Americans. However, these workers typically occupied unskilled positions such as cleaners and manual workers.
When Congress drew up the industry codes, they deliberately excluded these types of jobs from NRA protections. This meant that while white workers in skilled positions benefited from the codes, many black workers in the same industry received no protection or wage improvements.
The hotel industry wage differential
The hotel industry code provides a clear example of how differential wages affected black and white workers differently, even when both groups received the same percentage increase.
Worked Example: Understanding the Hotel Industry Wage Gap
The hotel industry code agreed a 20 percent wage increase for all workers. Let's examine how this affected different groups:
Bellboys (predominantly black Americans):
- Base wage: $51 per month
- 20% increase: $51 × 0.20 = $10.20
- New wage: $51 + $10.20 = $61.20 per month
Hotel clerks (predominantly white workers):
- Base wage: $100 per month
- 20% increase: $100 × 0.20 = $20.00
- New wage: $100 + $20.00 = $120.00 per month
Result: Although both groups received the same percentage increase, white workers gained $20.00 compared to black workers' $10.20 gain. The wage gap between black and white workers actually widened in absolute terms from $49 to $58.80 per month.
Exclusion of domestic workers
Domestic service and household work was an area where black American women predominated. In 1934, the National Association for Domestic Workers was established with headquarters in Jackson, Mississippi.
The organisation highlighted concerning wage conditions:
- The average wage for domestic workers was only $3.50 per week
- This wage was considered far too low by the workers themselves
- The group requested much higher wages for their members
Significantly, domestic work was largely excluded from NRA codes, leaving these workers without the protections that other industries received.
Racial discrimination in other New Deal legislation
The differential treatment of black Americans extended beyond the NRA codes into other landmark New Deal reforms.
Trade union rights and exclusion
One of the most important achievements of the New Deal was the recognition of trade union rights to collectively bargain for better wages and conditions. This right was established through:
- Section 7(a) of the National Industrial Recovery Act of 1933
- The Wagner Act of 1935
Systemic Exclusion from Union Membership
These reforms primarily benefited white workers because black Americans were severely under-represented in trade unions:
- In 1930, 19 major trade unions excluded black Americans from membership purely on racial grounds
- The NAACP estimated that in 1930, total black American union membership was only 50,000 out of a national total of 3.4 million workers
- Half of these 50,000 black union members belonged to a single union: the all-black American Brotherhood of Sleeping Car Porters on the railways
By increasing job security for union members through Section 7(a) and the Wagner Act, these laws actually disadvantaged black American workers who were excluded from union membership.
The "closed shop" versus "white shop" debate
When proposals suggested that Section 7(a) should allow a closed shop (one union representing all workers in a particular factory, including women workers), the NAACP raised serious concerns.
The NAACP argued that given the racial exclusion practised by most unions, this would not create a closed shop but rather a "white shop" that would further marginalise black workers. This concern highlighted how well-intentioned labour reforms could reinforce racial discrimination when implemented within a discriminatory system.
Social Security Act 1935 exclusions
The Social Security Act of 1935 represented another landmark New Deal reform, providing federal funding for old-age pensions for the first time. However, the law contained significant exclusions that disproportionately affected black Americans.
Exclusion of Black Workers from Social Security
- The Act excluded domestic servants and agricultural workers from coverage
- These two sectors provided approximately 65 percent of employment opportunities for black Americans
- This meant the majority of black workers were denied access to old-age pension benefits
This systematic exclusion effectively denied most black Americans the security that Social Security was designed to provide.
Contemporary assessment of New Deal discrimination
Thomas Arnold Hill, a black American civil rights activist and leader of the Urban League, provided a damning assessment in 1936.
Contemporary Civil Rights Perspective
Hill stated that New Deal legislation:
- Benefited white workers significantly
- Left black workers in an inferior position
- Largely ignored or excluded black Americans from its protections
This contemporary observation from a civil rights leader highlights how the structural discrimination in New Deal programmes was recognised and criticised at the time.
Limited opportunities in federal government
Despite the widespread discrimination in New Deal programmes, there were some limited opportunities for black Americans in federal government positions:
- In 1934, Robert Weaver, a black American, was appointed as President Roosevelt's special adviser on the Economic Status of the Negro
- His appointment was largely due to Harold Ickes, the Secretary of the Interior (1933-1946), who had previously served as president of the Chicago branch of the NAACP
However, these individual appointments represented token progress rather than systemic change to the discriminatory structure of New Deal programmes.
Exam tips
For 20-mark questions analysing the impact of New Deal policies on black Americans:
- Use specific examples (cotton textile industry, hotel industry percentages)
- Compare and contrast the stated aims of NRA codes with their actual implementation
- Consider both direct exclusions (domestic workers, agricultural workers) and indirect discrimination (union membership requirements)
- Include contemporary evidence (Thomas Arnold Hill's 1936 statement)
For 30-mark essay questions evaluating New Deal race relations:
- Balance discussion of discriminatory practices with limited positive developments
- Explain the mechanisms of discrimination (deliberate exclusions, percentage increases on unequal base wages)
- Link to broader patterns of racial discrimination in 1930s America
- Consider significance: 65% of black employment excluded from Social Security
Common pitfall to avoid:
- Don't assume the New Deal was uniformly discriminatory or uniformly beneficial. Show nuanced understanding by explaining specific examples of both discrimination and limited opportunities.
Remember!
Key Points to Remember:
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The NRA codes set minimum wages of $13 per week ($12 in the South) and a 40-hour working week, but deliberately excluded unskilled jobs where many black Americans worked
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Differential wages meant that even when black and white workers received the same percentage increase, white workers gained more in actual earnings (e.g., hotel industry: bellboys $51/month base vs clerks $100/month base)
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65% of black American employment (domestic servants and agricultural workers) was excluded from the Social Security Act 1935, denying most black workers access to old-age pensions
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Only 50,000 out of 3.4 million trade union members were black Americans in 1930, with 19 major unions excluding black membership entirely, meaning Section 7(a) and Wagner Act rights primarily benefited white workers
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Contemporary civil rights leader Thomas Arnold Hill stated in 1936 that New Deal legislation benefited white workers while leaving black workers in an inferior, largely ignored position