The judicial and political failure of Prime Minister R.B. Bennet's New Deal
legislation shifted the struggle to reconstitute capitalism to the provinc
ial and municipal levels of the state. Attempts to deal with the dislocatio
ns of the Depression in Ontario focused upon the "sweatshop crisis" which c
ame to dominate political and social discourse after 1934. Ontario's Indust
rial Standards Act (1935) was designed to bring workers and employers toget
her under the auspices of the state to establish minimum wages and work sta
ndards. The establishment of New Deal style industrial codes was premised o
n the mobilisation of organized capital and organized labour to combat unfa
ir competition, stop the spread of relief-subsidized labour, and halt the p
redations of sweatshop capitalism. Although the ISA did not bring about ext
ensive economic regulation, it excited considerable interest in the possibi
lity of government intervention. Workers in a diverse range of occupations,
from asbestos workers to waitresses, attempted to organize around the poss
ibility of the ISA. The importance of the ISA lies in what it reveals about
the nature of welfare, waged labour, the union movement, competitive capit
alism, business attitudes to industrial regulation, and the role of the sta
te in managing the collective affairs of capitalism. The history of the ISA
also suggests that "regulatory unionism," as described by Colin Gordon in
his work on the American New Deal, may have animated key developments in Ca
nadian social, economic and labour history.