The Iron Heel subsidizes the most essential labor unions, allowing them to increase the workers' pay and decrease their hours. This means that the people who lead the unions are unwilling to send the workers out to another general strike. Since not all unions are subsidized, the most powerful ones -- which receive the subsidy -- withdraw from groups where they allied with other unions. The tactic turns the various labor factions against each other and prevents another general strike by weakening the labor movement.
To understand how the Iron Heel impeded the general strike, it's necessary to first understand why the first general strike came about. The Iron Heel determined that it wanted to go to war with Germany for a variety of reasons, including
- new treaties and alliances
- the consumption of the national surpluses
- a reduction in the number of unemployed people
- helping the Iron Heel control the world market
- the creation of a large standing army
- changing the issue of "Socialism versus Oligarchy" to "America versus Germany"
The socialist party leaders were opposed to the war and met to decide how to combat it. They decided to threaten a general strike; it would take place if the two countries went to war. Both American and German socialists agreed to strike if war broke out—and then did so when the war began.
In America, large numbers of workers went on strike. Even schoolchildren and teachers joined the strike. The numbers increased until the "general strike took the form of a great national picnic." Since so many people were involved, it lessened the concern that the people striking would be punished in some way. However, the strike also isolated communities because there "were no newspapers, no letters, no despatches. Every community was as completely isolated as though ten thousand miles of primeval wilderness stretched between it and the rest of the world."
But the Iron Heel knew it did not want the results of the general strike repeated. As London writes: "And during that week of silence the Oligarchy was taught its lesson. And well it learned the lesson. The general strike was a warning. It should never occur again. The Oligarchy would see to that."
The war was declared over and people went back to work. An alliance formed between America and Germany that was actually meant to keep the German Emperor and the Iron Heel in power and protected from the "revolutionary proletariat of both countries." The Oligarchy—the Iron Heel—breaks the alliance and allows the socialists to take over Germany, claiming to have done it so that America, not Germany, can control the world market to sell its surplus.
When Ernest and the socialists approach the union leaders to discuss how they'll prepare their men for the next strike, the leaders aren't quick to agree to do so. Instead, they hesitate and avoid the topic. Ultimately, Ernest and his wife discuss what's happened and conclude that the Iron Heel is subsidizing the unions:
"But how?" I asked.
"Simply by subsidizing the great unions. They won't join in the next general strike. Therefore it won't be a general strike."
"But the Iron Heel can't maintain so costly a programme forever," I objected.
"Oh, it hasn't subsidized all of the unions. That's not necessary. Here is what is going to happen. Wages are going to be advanced and hours shortened in the railroad unions, the iron and steel workers unions, and the engineer and machinist unions. In these unions more favorable conditions will continue to prevail. Membership in these unions will become like seats in Paradise."
Ernest explains that other unions are not as essential as the ones he's already mentioned. Therefore, the Iron Heel doesn't have to subsidize them. Instead, they'll be "ground out of existence—all of them." When his wife insists that coal miners number almost a million workers, he tells her that it's basically unskilled labor and that they'll be essentially enslaved just like everyone else.
He insists that laborers will eventually be compelled by the law to work; strikes will become more like slave revolts and they'll be ended for legal purposes.
When the unions are made smaller, seats on the union committees will be more competitive. Men who could have assisted the strikes will instead be vying for those exclusive seats. Instead of helping the people, they'll "be won away and their strength used to bolster the Oligarchy."
By subsidizing the unions, creating divisions between various laborers, and creating an environment where strong, motivated people work to obtain valued positions within those unions, the Iron Heel weakens the labor movement. Since the unions are being subsidized, the heads of those unions are unwilling to send the workers back out for another general strike. In addition, the various labor groups are turned against each other violently. It's another way that the Iron Heel gains and maintains power in London's novel.
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