Boston Union Cigarmaker's Co-operative
| Company type | Cooperative |
|---|---|
| Industry | Cigar manufacturing |
| Founded | 1919 |
| Founder | Morris Becker |
| Headquarters | Boston , United States |
Key people | Morris Becker (leader) |
Number of employees | 100 (1920) |
On July 7, 1919, nearly 2,100 out of Boston’s 2,400 cigar workers ceased work to demand a wage increase of 13 7/11%. In response, three leading cigar producers opted to relocate rather than accept these terms, which led some union members to establish a cigar-making cooperative. By August 30, agreements had been finalized with all other manufacturers remaining in the city.
Early labor conflicts
Throughout World War I, Boston’s cigar factories employed numerous Belgian refugees who were both skilled in cigar production and identified as socialists. This situation caused friction with local unions, which threatened strikes concerning hiring policies, machinery usage, tobacco measurement, and terminations without union committee consent. On January 24, 1919, the Boston Cigar Makers’ Union passed a resolution promoting worker control over production resources. George W. Perkins, president of the Cigar Makers’ International Union, condemned this as a move toward socialist control. By June 19, 1919, Perkins warned that the ongoing strike demands risked removing the Boston seed cigar from the marketplace and endangering the survival of manufacturers.
Strike action
On July 7, 1919, more than 2,000 members of Cigarmakers’ Union Local 97 commenced a strike against manufacturers who declined to grant the wage increase. This stoppage affected production at major companies such as Waitt & Bond, H. Traiser, C.C.A., Breslin & Campbell, Elcho, M.C.A., and Alles & Fisher; meanwhile, smaller shops that agreed to pay raises continued operations. At the same time, a strike was taking place at R.G. Sullivan in Manchester, New Hampshire.
Gustave A. Rothfuss, secretary of the Boston Cigar Manufacturers’ Association, accused Local 97 of repeatedly demanding wage hikes and initiating unauthorized strikes. He dismissed the union’s insistence that firms consult grievance committees prior to employee dismissals. Rothfuss argued that the proposed wage increase would push ten-cent cigars up to fifteen cents; conversely, William Collins maintained it would add under a quarter cent per cigar. Collins pointed out that manufacturers cited a $30 per 1,000 cigars price increase since 1906 compared to only $3.80 per 1,000 cigars in wage growth for laborers. Waitt & Bond highlighted rising costs including higher wages for related trades, federal taxes, tobacco prices, freight charges, and insurance while noting that Boston’s cigar manufacturers were experiencing their lowest profit margins since their founding.
Manufacturers’ relocation
On August 13, 1919, Waitt & Bond declared their move from Boston to Newark, New Jersey following the labor dispute. Prior to the strike, they employed 1,200 cigar makers with weekly payroll expenses totaling $30,000. In Newark, Waitt & Bond transitioned to non-unionized machine production. Other companies followed suit: C.C.A. also relocated to Newark and Breslin & Campbell moved operations to New York City, both adopting machine-based manufacturing.
Formation of cooperative
Following the departure of Waitt & Bond and C.C.A., the Boston Union Cigarmaker’s Cooperative was founded with an initial workforce of 50 employees and capital amounting to $90,000. Led by Morris Becker—a cigar maker and Suffolk Law School alumnus—the Cooperative operated under a "one-man, one-vote" principle irrespective of shareholding size. Although all workers were union members, the union itself held no formal authority within the organization.
By February 1920, the Cooperative’s workforce expanded to 100 cigar makers; by December it ranked as Boston’s third-largest cigar factory. Nevertheless, on October 8, 1921, creditors initiated bankruptcy proceedings against the Cooperative. Its collapse was attributed to inadequate business expertise and lack of professional management; most departments were staffed by cigar makers lacking experience in sales and procurement. Becker also faulted the accounting department’s leadership. Additionally, the Cooperative failed to leverage seasonal market cycles effectively and made a strategic error by extending operations into New York City rather than concentrating on New England markets. Ultimately, its assets were sold for $5,500 to a superintendent from a Boston cigar factory.
Resolution of the strike
The labor dispute came to an end on August 30, 1919, following an agreement between the Sullivan factory in Manchester and the cigar workers on a negotiated wage of $20 per 1,000 cigars, which was marginally less than the union's original request of $21. By this time, major producers such as H. Traiser, Elcho, M. C. A., and Alles & Fisher had already restarted their manufacturing operations.