As the Industrial Revolution took hold of the nation, the average American in the late 1800s worked 12-hour days, seven days a week in order to make a basic living. Children were also working, as they provided cheap labor to employers and laws against child labor were not strongly enforced.
With the long hours and terrible working conditions, American unions became more prominent and voiced their demands for a better way of life. On Tuesday September 5, 1882, 10,000 workers marched from city hall to Union Square in New York City, holding the first-ever Labor Day parade. Participants took an unpaid day-off to honor the workers of America, as well as vocalize issues they had with employers. As years passed, more states began to hold these parades, but Congress would not legalize the holiday until 12 years later.
On May 11, 1894, workers of the Pullman Palace Car Company in Chicago struck to protest wage cuts and the firing of union representatives. They sought support from their union led by Eugene V. Debs and on June 26 the American Railroad Union called a boycott of all Pullman railway cars. Within days, 50,000 rail workers complied and railroad traffic out of Chicago came to a halt. On July 4, President Grover Cleveland dispatched troops to Chicago. Much rioting and bloodshed ensued, but the government's actions broke the strike and the boycott soon collapsed. During the course of the strike, 13 strikers were killed and 57 were wounded. An estimated 6,000 rail workers did $340,000 worth of property damage (about $6,800,000 adjusted for inflation to 2007). Debs and three other union officials were jailed for disobeying the injunction. The strike brought worker's rights to the public eye and Congress declared, in 1894, that the first Monday in September would be the holiday for workers, known as Labor Day.
President Cleveland's bid for re-nomination at the 1896 Democratic National Convention failed because of his response to the strike.