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The National War Labor Board—often referred to simply as the War Labor Board (WLB)—supervised and intervened in many aspects of collective bargaining from 1942 to 1945. During that period, the WLB settled contract disputes and played a major role in establishing wage rates, working hours, and union security provisions. It also intervened directly in a number of strikes. The WLB was at the center of labor relations and labor mobilization during World War II and was instrumental in furthering war production. It also played an instrumental role in lowering inflation and improving the positions of unskilled workers, African Americans, and women. In some important respects, the WLB also helped to shape the world of postwar labor relations.

Immediately following the Japanese attack on Pearl Harbor, Pres. Franklin D. Roosevelt called an emergency meeting of 12 labor and 12 management representatives to discuss the creation of an agency responsible for preventing work stoppages during the war. The meeting issued a no-strike no-lockout declaration and agreed that a new board should be established, but the group deadlocked on the issue of guaranteeing union security. Management wanted to deny any government agency authority over this issue, while the labor representatives pressed for union security to be part of contracts settled by the new board.

By executive order, President Roosevelt established the WLB on January 12, 1942. The new agency took over the caseload of the defunct National Defense Mediation Board (NDMB) and was tripartite in nature, with four representatives each from management, labor, and public sectors. The board was first chaired by William H. Davis, the former head of the NDMB, and George W. Taylor succeeded him in March 1945. The WLB immediately established the principle that it should turn first to independent, collective bargaining in disagreements between management and labor. Only if an impasse persisted would the WLB review a case and settle the contract, while trying to avoid work stoppages.

In its first major cases, the WLB dealt with union security issues. In these cases, the public members generally sided with the labor representatives: first, to agree to consider such cases; and second, to establish a principle known as “maintenance of membership.” This was a modified union shop provision, under which any worker who had joined the union would remain as a member for the duration of the contract. If a union shop (one in which all workers had to join the union after employment) or a closed shop (where only union members were hired) were already in effect, the WLB would approve it in lieu of maintenance of membership. A key corporate move towards grudging acceptance of this principle came in May 1942, when U.S. Steel announced that it would comply with the Federal Shipbuilding decision.

In the opening months of its existence, the WLB was fairly free to rule on wage increases as it saw fit. The International Harvester decision, arrived at during this period, established the general principle that wages should keep pace with inflation and be high enough to grant workers decent and healthy lifestyles. Given the low wage levels that prevailed at the end of the Depression, this formulation was broadly favorable to workers.

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