On May 1st of 1938, a month before the new 1939 models were to be announced, thousands of Philco workers at the unionized Philadelphia plant went out on strike in a dispute over wages. Facing growing unrest, in August James M. Skinner* sent a letter to Philadelphia's Mayor Wilson requesting city protection for the loyal minority of Philco workers, mainly foremen and supervisors, who continued to venture into the plants. He wrote that:- The strike ran through Sept 12th and, having lasted over four months, was crippling to Philco and cost the company dearly. It forced them to outsource early 1939 production and delayed availability of their 1939 models, leading to a financial loss for 1938. In its aftermath, Philco made fundamental changes to the way they procured components, making much greater use of external suppliers over in-house manufacture. As a result they trimmed the Philadelphia workforce by many thousands. A similar though much less protracted strike had also taken place at the plant during the spring of 1937, again over wages. Philco management had allowed their workers to become unionized as part of an agreement made in 1933. That agreement included a wage contract that resulted in the workers being amongst the highest paid in the industry. This in turn sowed the seeds for yet more industrial strife, which remained a feature of the Philco Philadelphia landscape, on and off, for as long as the company existed as a corporate entity. One can only but wonder whether the record of industrial relations problems in Philadelphia was behind Philco's investment in and eventual take-over of the Simplex radio plant in Sandusky, Ohio. This began in 1937 and eventually much of Philco's manufacturing was relocated to Ohio, where they remained for over twenty years. Bibliography New York Times, Aug 15th 1938 (1938 strike letter to Philadelphia's mayor) New York Times, May 2nd 1937 (1937 strike) philcoradio.com/history (1938 strike aftermath) firelandsradio.com ( Philco Sandusky history) "The Electrical Workers", R.W. Schatz, University of Illinois Press, 1987 (early unionization @ Philco) * president, Philadelphia Storage Battery Company |
| Philco's Philadelphia Industrial Strife |