1942: Wages, Hours And Working Conditions

During 1942 wages came under regulation as part of a comprehensive Government program for controlling prices and the cost of living. The aims and general character of this program were set forth in a message by the President to Congress on Apr. 27. The program was further elaborated in an Act of Congress, followed by an executive order of the President, in early October. The War Labor Board translated the general features of this program into a specific formula of wage regulation by a decision made on July 16 in the case of the little steel (steel companies other than the United States Steel Corporation) companies. This decision provided that wage increases in 1942, except where wages were unusually low or out of line with comparable wages in other industries, should not exceed 15 per cent, the amount required to keep wages at their purchasing power in January 1941.

Actual weekly earnings, which reflected overtime and increased hours of work as well as advances in wage rates, exceeded, with few exceptions, the increases in living costs. The rise in hourly earnings was more moderate and in many industries, employing considerable numbers, fell short of the increase in the cost of living since January 1941. But in some instances the lag was due to substantial increases in wages won in 1940 and 1941.

The hours question was concerned mainly with the effect of the 40-hour week on war production. Many observers held that adherence to so short a week barred potential expansion in war output and placed an unnecessary strain on the country's manpower, particularly as the size of the armed forces was calculated to exceed 10,000,000. The most direct criticism of this complexion came from the farmers who, in the face of unparalleled demands for farm products, suffered from labor shortages and themselves worked exceedingly long hours. Organized labor held that the 40-hour week was no bar to longer hours and that the demand for a longer week was tantamount to a demand to reduce wages. Many industries did, of course, work more than 40-hours, but the 40-hour week kept hours much below the levels they reached in other warring countries, where average hours worked are reported to exceed 50 per week by substantial amounts.

The most important development in working conditions was the settlement of the closed-shop issue. This was done through a series of decisions of the War Labor Board, directing employers to include in their union contracts a maintenance of membership clause. Maintenance of membership provided that employees who voluntarily indicated their intention to join a union at the time a contract was signed were required to remain members for the duration of the contract. The clause was generally opposed by employers but all but a few accepted it when directed to do so by the board.