Labor Unions In colonial America, most of the manufacturing was done by hand in a home. Labor took place in workshops attached to the side of a home. As towns grew into cities, the demand for manufactured goods increased. Some workshop owners began hiring helpers to increase production. Relations between the employer and helper were generally harmonious. They worked side by side, had the same interests and held similar political views. The factory system that began around the mid 1800's brought great changes. The employers no longer worked beside their employees. They became executives and merchants who rarely saw their workers. They were less c