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Throughout the 1890s, a national movement to commemorate labor developed. The Pullman Strike in 1894 occurred due to reduction in pay for workers as well as high costs associated with the Pullman rail company housing provided to them at a cost. The Pullman Company controlled much of the freight rail at the time and had vast power but also became critical to the operations of the larger economy of the United States. A strike was seen as threatening the US wider economy, leading to the government sending federal troops to breakup the protests after the protesters refused a court order to disband (Figure 2). This attempt at breaking the strike led to riots and violence, which eventually did lead to the collapse of the strikes but also many deaths. In effect, the governments actions were effective but politically costly for then President Grover Cleveland.<ref>For more on the Pullman Strike and subsequent events, see: Stein, R.C. (2001) <i>The Pullman strike and the labor movement in American history</i>. In American history. Berkeley Heights, NJ, USA, Enslow Publishers.</ref>
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The cost to the government was widespread discontent with how the strike was put down. Cleveland, along with Congress, proposed having a federal holiday to celebrate labor to gain some political support he may have lost, particularly from some of the trade unions. However, one stipulation for Cleveland was the date of the celebration be in September, that is the first Monday in September, as he wanted to avoid celebrating in May due to the events of Haymarket. Cleveland did not want the Haymarket events remembered and serve as a rallying cry for further demonstrations, strikes, or even political turmoil. Additionally, already the US government began to be wary of political movements sponsored by labor movements and what were socialist organizations. In effect, it was a holiday that put the US in similar footing to what happened elsewhere but with a specific avoidance of a day that the US government feared could become a rallying cry for other riots or even political action.<ref>For more on the choice of September for Labor day, see: Marianne Debouzy (ed.) (1992) <i>In the shadow of the Statue of Liberty: immigrents, workers, and citizens in the American republic, 1880-1920</i>. 1st University of Illinois Press ed. Urbana, University of Illinois Press, pg. 173.</ref>