Artist: WA Rogers. Political cartoon from the July 21, 1894 cover of Harper's Weekly. It is labeled "The Vanguard of Anarchy" and depicts Eugene Debs, leader of the American Railway Union, being carried on a throne among a procession which carries a standard that states anarchy.
Peter J. McGuire, a founding member of the Brotherhood of Carpenters, is credited with proposing an American labor holiday in September. He suggested to the New York Central Labor Union in 1882 that the first Monday in September be observed in recognition of workers. That year on September 5th the Knights of Labor sponsored a parade in New York City, regarded as America’s first Labor Day.
But the story is much more complex. European socialists and trade unionists collaborated in Paris in 1889 to create the first Worker’s Day as an international holiday and memorial of the Haymarket Riot in Chicago- the world’s first May Day (the worker’s day, not the ancient spring/summer festivals of various cultures).
They were influenced by a decision made five years earlier by the Federation of Organized Trades and Labor Unions of the United States and Canada, later known as the American Federation of Labor. They passed a resolution to fight for the 8-hour work day on October 7, 1884:
“Resolved by the Federation of Organized Trades and Labor Unions the United States and Canada, that eight hours shall constitute legal day's labor from May First, 1886, and that we recommend to labor organizations throughout their jurisdiction that they so direct their laws as to conform to this resolution by the time named.”
Pullman Strike in 1894. Chicago South Side. Original caption: "National guardsmen firing at the mob at Loomis and 49th Street, July 7th. Drawn by G. W. Peters from a sketch by G. A. Coffin." Harper's Weekly 1894-07-21, p. 689. Public Domain.
A number of American states observed Labor Day officially over the next few years. After the Pullman Strike in 1894, where the National Guard shot and killed several strikers, the Cleveland Administration passed a bill making Labor Day a federal holiday as one way to try and quell unrest. It was also hoped by many that this would distinguish the American labor movement from its rebellious European counterpart.
Sources: