Carnegie was the first to recognize the importance of controlling unit costs and he stressed that the employees should understand the full process and everything behind it. .
During the late 1880's and early 1890's the union movement was in full swing. The Amalgamated Association of Iron and Steel Workers, also knows as Amalgamated founded in 1876, quickly became the largest union with approximately 24,000 workers. But this excluded the unskilled and it had failed to organize the largest steel plants. The Homestead Works of Pittsburgh was an important exception. .
Events Directly Leading up to the Strike.
Since Carnegie was focused on costs more than anyone else in the business, he was soon able to dominate the industry. Maintaining cost controls, which was obviously a large part of his operation, also meant holding down wages. Unfortunately for Carnegie, Amalgamated had already organized the plant when Carnegie purchased it.
In 1889, workers won a strike and negotiated a three-year contract which would improve wages based on the success of the product. The contract was set to expire on June, 30, 1892. .
The steel industry underwent a generally business slowdown and to maintain profits, the number of workers would have to be reduced in order to decrease costs. Thus, putting many of Carnegie's workers jobs in jeopardy. .
As this expiration date neared, steel baron Andrew Carnegie, who had often publicly communicated union sympathies, departed for Scotland leaving Henry Frick with managing authority. Frick was known for his ruthless anti-union policy and as negotiations were still taking place he ordered the construction of a three mile solid board fence topped with barbed wire and complete with slots for rifles around the mill property.
Before Carnegie left, Carnegie and Frick had proposed a lower minimum wage for the new contract as well as a loss of bargaining power for the union. Obviously the union was not happy with the offer.