Operation Dixie was the name of the post-World War II campaign by the Congress of Industrial Organizations to unionize industry in the Southern United States, particularly the textile industry. Launched in the spring of 1946, the campaign ran in 12 Southern states and was undertaken as part of a dual effort to consolidate wage gains won by the trade union movement in the Northern United States by raising wage levels in the South while simultaneously transforming the conservative politics of the region, thereby allowing the trade union agenda to win on a national scale.
Operation Dixie failed largely due to Jim Crow laws and the deep-seated racial strife in the South which made it difficult for black workers and poor whites to engage cooperatively for successful union organization. The passage of the Taft-Hartley Act additionally undercut the campaign, making it easier for employers to obstruct union organizing drives by inhibiting the right to strike and allowing prohibition of closed shops. The Cold War Red Scare also hurt the union movement throughout the United States by increasing hostility to the left in general and unions in particular.
The CIO's defeat in Operation Dixie was a contributing factor in the decision of the traditionally more radical trade union federation to merge with the conservative American Federation of Labor and form the AFL–CIO in 1955 — a move that signified a long-term trend away from radical social unionism towards the more conservative business unionism strategy long favored by the AFL. In the long-term, the failure of Operation Dixie to end the South's status as a low-wage, non-union haven impeded the ability of the union movement to maintain its strength in North and was a contributing factor in the decline of the American union movement in the second half of the 20th century as unions were unable to prevent businesses from holding back wage increases by either moving to the South or threatening to do so.