By that point, however, the union was in a shambles, still struggling with the huge debts acquired during the failed strike, fighting expelled local leaders, some of whom had taken their unions out of the ILG, and facing an even more disorganized and piratical industry. Dubinsky set out to rebuild the ILGWU's base in New York City by striking a deal with the major manufacturers' group in 1929 that provided no pay raises but made it possible for the union to police the contract by cracking down on subcontractors who "chiseled", cheating workers out of pay or hours in order to gain a competitive advantage. The Communist Party USA opposed the new agreement but was by that time too weak to muster any effective resistance to Dubinsky.
The union often saw itself, both before and during Dubinsky's years at the head of the union, as the savior of the industry, eliminating the cutthroat competition over wages that had made it unstable while making workers' lives miserable. Dubinsky took pride in negotiating a contract in 1929 that contained no raises, but allowed the union to crack down on subcontractors who "chiseled". Dubinsky even claimed to have once turned down an employer's wage offer in negotiations as too costly to the employers, and therefore harmful to employees. Dubinsky summarized his attitude by saying that "workers need capitalism the way a fish needs water."