Big Business, Foreign

Investment & Unions

Canadian History 1201

The Growth of Big Business

• Economic developments that emerged in the early 20th century still are shaping Canada’s economy• Big Corporations, Foreign Investment, Foreign Control of

Branch Plants and Unions

• Bankers and investors partnered with industrialists and formed large CORPORATIONS • A large company owned by a number of investors who

may or may not live in the area where the business is located

• Growth of large department stores allowed a shopper to get everything required in one trip

• Mail order catalogues were becoming popular because of their convenience• The “online shopping” of the time

Foreign Investment

• Canada’s economic expansion (growth) had been largely financed by foreign investments • Particularly from Britain

• Investment from the US was rapidly growing

• American foreign investment aided the development of new industrial technology and products • For example: US invested in pulp and paper in Quebec,

Ontario and British Columbia. BRANCH PLANTS were established• Branch Plants were just that – American owned companies

that opened branches of their firms in Canada• For example: Henry Ford opened a Car Plant in Ontario

• Canada’s wealth was now increasing

Foreign Investment

• With the increase in foreign investment from America, much controversy was created

• Many Canadians opposed American investment because:• A growing concern about the “Americanization” of

Canada’s economy• Important decisions about Canadian divisions were being

made in the US• Top management jobs were held by Americans• Profits earned by the branch plants went to the US• There was a fear of complete economic takeover by the

US

The Impact on Canadian Life

• Life in Canada was becoming less personalized• Employees rarely knew the owners and vice versa• Few employees knew each other

• The urban work force was affected• Work places were dark• Uncomfortable• Poorly ventilated• Long hours• Low wages• Machinery was designed for efficiency and not safety

The Growth of Unions

• Workers joined UNIONS to gain better pay and working conditions – they felt there was strength in numbers

• If negotiations with the employer failed, workers would sometimes strike until an agreement could be reached• A STRIKE is when the employees refuse to work until

conditions change• A LOCKOUT is when the employer locks the employees

out of their place of work until the employee changes their conditions

• The TLC (Trades and Labour Congress of Canada) was the 1st union organization in Canada• It was formed in 1886

The Growth of Unions

• By 1901 there were 1078 different unions

• The Farming and Fishing industries had many concerns• Farmers:

• High transportation costs• High prices for farm machinery• They joined the Ontario Farmers’ Association in 1902

• Fisherman:• No set prices• Merchant abuse of power• The formed the FPU (Fishermen’s Protective Union)

Child Labour

• Industries would pay a child less for the same labour that was completed by an adult

• Unions fought for protection of child labour and to ensure children did not take jobs away from an adult

• Unions had a tendency to discriminate against minorities, immigrants, and women

• The Child Labour Law was passed in 1908

• The number of children (age 10-14) working in Canadian factories increased in the years 1900-1910

• Thousands of children continued to labour on farms

Child Labour

• Handout• “Child Labour Information”

• PowerPoint• “Child Labour Photos and Activity”

• TASK:• Complete the 5 questions on the Growth of

Unions