1940: Labor Arbitration

The problem of settling labor disputes through arbitration was raised in its most compelling form in 1940 in connection with the defense industries. The increasingly important part which these industries began to play in the American economy, as well as the vital function they were called upon to perform, raised anew the question of the existence of requisite machinery and legislation for preventing and settling strikes. The comparative quiet of 1940 failed to allay fears of trouble in the future. Consequently, much new machinery was set up to deal with labor disputes and many additional plans were proposed and debated.

The most extensive machinery of arbitration and conciliation was established by the labor member, Sidney Hillman, of the Defense Advisory Commission. This was of two types. The first took the form of a labor advisory committee, composed of presidents of leading C.I.O. and A. F. of L. unions, whose principal function was to use its influence with organized labor to prevent issues and grievances from breaking out into strikes. A second type consisted of a species of supermediation service, aimed at bringing to bear on both parties to labor disputes the full weight of the authority and prestige of the Defense Commission. A third departure, for the present limited to the shipbuilding industry, and modeled on a similar machinery existing in this industry during the World War, took the form of a three-party board, representing labor, industry, and government.

An elaborate proposal by Philip Murray, president of the C.I.O. and the Steel Workers Organizing Committee, was directed toward creating similar boards in the basic defense industries. In Mr. Murray's opinion, such agencies, by enlisting the cooperation of organized labor, would not only reduce the chances of strikes but would go a long way to solve existing problems of production. This proposal was submitted to the President in December. By the end of the year, it had not been acted upon.

The extensive interests of various government departments in the defense program led, in addition, to the creation of a more or less informal machinery which, among other duties, performed the function of supervising labor relations. Thus the War and Navy Departments stationed many of their representatives in plants working on government contracts. In the War Department, Edward F. McGrady, formerly Assistant Secretary of Labor and one of the most experienced arbitrators of the country, was assigned to the assistant secretary's office, presumably to act as 'trouble shooter' in labor disputes.

As in previous years, however, the greatest burden of settling strikes fell upon the Conciliation Service of the United States Department of Labor. This service, greatly expanded and competently managed by its present Director, Dr. John R. Steelman, has intervened in most disputes and has settled the great majority of them. Of the remaining Federal labor agencies, the National Labor Relations Board is widely credited with averting strikes by promoting the practice of collective bargaining and the making of collective contracts between industry and labor. In an increasing number of industries, also, the joint agreements provide for arbitration machinery within the industry, similar to the plans in force for many years in the clothing and anthracite coal industries. An important example of this is the arbitration machinery organized recently throughout the unionized plants of the General Motors Corporation.

In spite of much discussion of new legislation on strikes, there was no consensus as to the wisest and most effective course of action. Of the many proposals advanced during the year, the most popular appeared to be some measure, similar to the provisions of the Railway Labor Act, which would require a waiting period of fair duration, during which the issues of the dispute would be submitted to a public agency for adjudication or report and the parties would refrain from precipitating a strike or lockout. See also articles on CONGRESS OF INDUSTRIAL ORGANIZATIONS; STRIKES; TRADE UNIONS; WAGES, HOURS AND WORKING CONDITIONS.