Labor Policy After the War

Report Outline
Truman Administration and Labor Relations
Reconversion Problems and Organized Labor
Development of a Peacetime Labor Policy

Truman Administration and Labor Relations

Status of Labor Controls After V-E Day

Victory in Europe was followed in Washington by prompt reaffirmation of the Little Steel wage formula and by renewal of labor's no-strike pledge for the duration of the war with Japan. At the same time, it was stated that conclusion of the European phase of the war would permit the easing of certain labor controls. The War Manpower Commission announced that the “job freeze” and other manpower restrictions would be lifted in 116 communities by July 1. The War Labor Board announced modification of wage controls in industries converting to civilian production.

War Mobilization Director Vinson sought to allay labor fears of drastic reductions in earnings, through cuts in wage rates and elimination of overtime, by pointing out that “the War Labor Board has the power to set floors under wages as well as ceilings over them.” Chairman Taylor announced that the W. L. B. would soon make public a new policy concerning the pay of persons whose earnings will be substantially reduced by elimination of overtime. All administration spokesmen stressed the necessity of continuing controls needed to stabilize wages and prices and prevent an economic collapse after total victory.

Prospect of Growing Labor-Management Tension

Labor and management have been growing restive under wartime controls. Cutbacks in war orders, causing unemployment among some workers and transfers of others to jobs where hours will be shorter and take-home pay less, will now intensify labor dissatisfaction. Industries resuming civilian production in an easier labor market, but still subject to price control, may be expected to offer stiffer resistance to union demands. The country, therefore, faces months of increasing labor-management tension. This threatens to become acute during the reconversion period after final victory, as controls are progressively removed and transitional unemployment spreads.