INTERNATIONAL LABOUR OFFICE LflBOUR-mflnflGEmEnT CO-OPERATIOn IN UniTED STATES WAR PRODUCTS A STUDY OF METHODS AND PROCEDURE MONTREAL 1948 STUDIES AND REPORTS New Series, No. 6 PUBLISHED BY THE INTERNATIONAL LABOUR OFFICE Geneva, Switzerland Published in the United Kingdom for the INTERNATIONAL LABOUR OFFICE by Staples Press Limited, London Distributed in the United States by the INTERNATIONAL LABOUR OFFICE, Washington Branch, 1825 Jefferson Place, Washington, 6, D.C. PREFACE The present study is the result of a suggestion made in 1944, by the Chairman of the United States War Manpower Commission in agreement with his Management-Labor Policy Committee, that the International Labour Office should prepare a comparable report to the study on British Joint Production Machinery which would deal with the United States' experience in obtaining active cooperation from management and labour in manpower mobilisation. 1 The British report had been one of a series of studies made by the Office concerning various aspects of wartime labour supply and production problems for the information of the tripartite meetings of Government officials, employers and workers of Canada and the United States, held under the auspices of the Internationa] Labour Office during 1942 and 1943. The present report was intended to form part of this series. The altered programme of work, and in particular the heavy printing schedule of the Office in the period following the end of the war has delayed publication of the study. The material contained in it would seem to be of particular interest at this moment, in view of the fact that the International Labour Conference has under consideration the problems of freedom of association and the protection of the right to organise. The study does not deal with those subjects, but it deals with a related question, namely the participation of representatives of employers and workers in the mobilisation of manpower for maximum production. It should be noted, however, that no information is included on the work of the wartime agencies after the end of the war in Europe. The Office wishes to acknowledge with appreciation the help given by many organisations and individuals in the United States to the author of this study, Carol RIEGELMAN of the International Labour Office, through the opening up of official and private files, through personal interviews by Government officials, labour unions and management representatives, and through permission to attend committee meetings of all types, which made possible the collection of information and the comparative analysis requested. 1 Cf. British Joint Production Machinery, Studies and Reports, Series A (Industrial Relations), No. 43, Montreal, 1944. CONTENTS Page iii 1 PREFACE INTRODUCTION Part I. Historical Background CHAPTER I. Evolution of Labour-Management Participation in War Agencies for Manpower and Production Part II. Labour-Management Consultation in Manpower Mobilisation CHAPTER II. CHAPTER III. CHAPTER IV. CHAPTER V. CHAPTER VI. CHAPTER VII. CHAPTER VIII. 9 Voluntary National Consultative Machinery for Voluntary Manpower Mobilisation Regional Manpower Advisory Committees... Advisory Organisation at the State Level.... Advisory Committees of the Area Manpower Organisation Relations between War Manpower Management-Labor Committees Relations of Management-Labor War Manpower Committees with Interdepartmental Committees Employer-Worker Appeals from Manpower Controls: War Manpower Commission 30 55 67 73 98 106 129 Part III. Labour-Management Participation in War Production Planning CHAPTER IX. CHAPTER X. CHAPTER XI. CHAPTER XII. CHAPTER XIII. CHAPTER XIV. Labour-Management Participation in the War Production Board Operation of Industry and Labor Advisory Committees Establishment of Labor-Management Production Committees in War Plants Methods of Operation of Plant Labor-Management Committees Examples of Joint Plant Committee Activities. Relations Between Plant Labor-Management Committees and Evaluations of Wartime Experience 156 174 184 204 222 250 VI LABOUR-MANAGEMENT CO-OPERATION IN THE U.S.A. Part IV. Role of Management and Labour in other Government Agencies CHAPTER XV. CHAPTER XVI. Part V. Tripartite Organisation for Determination of Conditions of Work: The National War Labor Board Consultative Machinery of Other Government Agencies Affecting Manpower and Production. Page 264 280 Comparisons and Conclusions CHAPTER XVII. Wartime Methods of Labour-Management Consultation in the United States and Great Britain 313 CHAPTER XVIII. Summary and Conclusions 336 APPENDICES I.¡[Report of the Federal Advisory Council for Employment Security to the Social Security Board, July 1940 350 II. Executive Orders Establishing the War Manpower Commission 352 III. Administrative Orders Establishing the Management-Labor Policy Committee 357 IV. Memoranda Providing for Appointment and Functions of Regional and Area Management-Labor Committees.. 361 V. War!Manpower Commission,.Regulation No. 5—Appeals... 366 VI. Reports and Recommendations of the Management-Labor Policy Committee VII. Resolutions Concerning Manpower Mobilisation Adopted by the Management-Labor Policy Committee 391 VIII. General Administrative Order Relating to Labor Advisory Committees 400 IX. Typical By-Laws of an Area Council of Labor-Management Committees 403 BIBLIOGRAPHICAL NOTE 372 406 Labor Victory Committee PRESIDENT Office of Economie Stabilization Office o f War M o b i l i z a t i o n and (Leconversion ¿ - É---^* Office of Price Administration Labor Policy WAR IA SOft BOARD (Tripartite) Chairman of t h e War Production Board Labor Management 1 MANAGEMENT-LABOR POLlCV COMMITTEE Women's Advisory Committee WAR MANPOWER Department of War Department of the Wovy War Food Administration Department of labor Federal Security Agency Wor Production Board COMMISSION US Civl Serve« Commit s ion Nat>o»ol Houli no, Agency War Shipping Administration Office ol Defense Ironsporto!ion Director of Selective Service A representative of eoch Aqencu. liiled except thot Woe Shipping Administration and Marit ime Commi is ion ho*e joint representation WAR PRODUCTION BOARD Secretary of War S e c t o r . , ot theNovu Secretary of Commerce S^cetorij of Agricolture li Gen. in chorqe of War Deportment Production Office of Price Administrât ion foreign Economic Adviser Notional Priorities District Labor Committees O.P.A. District Office Local Boards Wage and Hour Division (Department of Labor) Selective SeHvice Regional fifjld Office REGIONAL MANAGEMENT-LABOR. COMMITTEES Regional Director! State Directo^ of Selective Service STATE MANAGEMENT- LABOR COMMITTEES Stote Directors AREA MANAGEMENT-LABOR COMMITTEES Area Directors LOCAL MANAGEMENT-LABOR COMMITTEES Oil APPEAL BOARDS Local USES Offices 1 Plani Stabilization Cotnmitteei Manpower Committee Area Priorities Committees Vice-Chairman (International Supply) Operations Vice-Chairman Metals Minerols Vice-Cha ir m a n Vice- Chairman for Field Operations Více-Chairman Smaller War Plants Vice-Chairman W a r Prod. Drive Division Smaller W a r Plants Corporation Office of Civilian Requirements Civilian Requirements Labor Production Vice-Chairman Manpower Requirements Vice-Chairman Office ol Defensr Tromportati on Petroleum Administrator tor War War Food Administration Aircraft Production Board Office o f )nd- Adv. Committees Ind- Divisions Labor Assistants Requirements Committee Office of Labor Adv. Committees Production Xeodjustment Committee Coordinating Area Production Urgency Committee Manpower Program Vice-Choirmon Special Aitittont to the prendent Chairman War Monpower PRODUCTION EXECUTIVE COMMITTEE REGIONAL WAR LABOR. BOARD (Tripartite) Board A Chairman of t h e W a r M a n p o w e r Commission Director of Selective Service Industry Advisory Committees Committee Tripartite Advisory Production Area Urgency Committees Regional Directors Regional Representatives O.L.P.; War Production DriN/e; S.W.P.; O.C-R. District Managers O.L.P.; S.W.P.; O.CRW.P.D. AREA COUNCILS PLANT LABOR MANAGEMENT COMMITTEES MAY 1945 INTRODUCTION The contribution which representatives of labour and management could make to mobilising the nation's labour supply and production resources were drawn upon by the United States Government, under President Roosevelt's leadership, throughout the emergency and war period. This period may be divided into five major stages, each marked by different demands upon the nation's manpower and material resources. Consequently new policies and programmes were formulated at each stage in co-operation with representatives of organised labour and of management. The first, or "defence period", was characterised by improvisation ..a the development of semi-independent emergency agencies uiiuer the authority first of the Council of National Defense and then of the Office of Production Management. The defence period lasted, roughly, from May 1940 until the entrance of the United States into the war and was marked by the enactment of the Selective Training and Service Act for the mobilisation of the armed services and the establishment of the National Defense Mediation Board for the prevention of industrial disputes. The second stage of manpower and production organisation lasted from the Pearl Harbor attack in December 1941 to October 1942 and was characterised by initial mobilisation of a labour force which still seemed sufficiently plentiful to permit some wastage, or at least some leeway in the use of manpower resources. The need for war organisation led to the establishment of three new emergency agencies responsible for preserving industrial peace and mobilising material and human resources: the War Labor Board, the War Production Board and the War Manpower Commission. In addition, in order to ensure labour participation at the top policy-making level, the President named, in February 1942, a Labor Victory Committee consisting of the leaders of the national trade union federations. The third period began in the course of the autumn and winter of 1942 at the time that labour shortages became serious. The establishment, first of an Office of Economic Stabilization, and subsequently of an Office of War Mobilization, indicated realisation that total war would demand of the United States an organisation of manpower more closely approximating to the full mobilisation 2 LABOUR-MANAGEMENT CO-OPERATION IN THE U.S.A. of the civilian economy which had taken place earlier in many other parts of the world. From October 1942 to August 1943 the United States labour supply and economic policies generally were altered by the initiation of wage and price controls and manpower restrictions, by decentralisation of administrative authority to local agencies, by increased safeguards to protect the workers whose right to change jobs was limited, and by "voluntary" enforcement of both manpower and economic policies carried out by management and labour co-operating with the Government. The fourth stage, beginning at the end of 1943 with the development of the "West Coast Plan" for manpower control, and continuing through the period of the extension of controls by the directives issued in the autumn of 1944 by the Office of War Mobilization, was a period requiring budgeting of manpower for essential employment, the meeting of critical local shortages as well as general ones, the modification of local programmes to fit the requirements of an evolving national pattern, and greater interdepartmental co-ordination. I t was also during this period that discussion of reconversion planning was begun by the various departments and given formal status in the adoption of the War Mobilization and Reconversion Act. Finally, the fifth period may be said to begin with the change in production planning and manpower demands brought about by the altered war schedule following the German counter-offensive in Europe in December 1944. This period lasted through the close of the war in Europe. Many of the problems posed and organisational solutions worked out during the fifth period were determined by the procedures and methods evolved during the earlier stages of war organisation. The experience obtained at each stage by the various Governmental agencies in associating labour and management representatives in the formulation and application of labour supply and production policies were drawn upon in the final stages of the planning for war production. Certain factors underlying the Governmental and industrial structure of the United States which directly affected the development of these consultative procedures throughout the war must be kept in mind when evaluating methods used to obtain labour and management participation in the mobilisation of the United States economy for war production. In the field of Government, the existence of 48 separate States, whose normal peacetime authority covers many of the functions assumed by the federal Government under emergency powers played a large part in determining the forms and procedures used INTRODUCTION 3 in developing a decentralised and regional structure and in the type of relationships worked out between Government departments and labour and management organisations in the field. This was sometimes particularly significant in States where the local Government was in the hands of an opposing political party to that of the federal Government, and in States where traditional hostility to federal encroachment required care to avoid arousing objections from local Governmental or labour or management officials. The variety in industrial development and in political concept of the different States meant that administrative agencies which were taken over by the federal Government for the war duration were uneven in experience and capacity and reflected different local concepts. These differences had to be taken into account in the use that could be made of such agencies in the application of policies. The constitutional separation of the executive and legislative authorities of the federal Government on occasion resulted in opposing policies being put forward in Congress and by the administrative agencies on subjects such as the amount of compulsion needed to gear the United States material and manpower resources to war requirements. In some cases when the administrative agencies were unable to obtain desired legislation from Congress they endeavoured to carry out policies by recourse to the emergency powers of the President and through the issue of directives and regulations. The separation of authority also meant that central administrative agencies on the one hand, such as the Bureau of the Budget or the Office of War Mobilization in the Executive Office of the President, and congressional investigating committees, on the other hand, undertook separate inquiries and drafted separate recommendations concerning the production programme and the establishment and use during the war of emergency agencies of Government. Partly because of the difficulty of adapting the functions of the regular Government agencies to undertake new responsibilities, there was a tendency to create new agencies under the more flexible emergency war powers whenever an urgent organisational problem arose, and thus overlapping of jurisdiction occurred. A multiplicity of advisory committees which included many of the same representatives of employers and workers serving in somewhat different capacities also developed. This inevitably brought about a number of complications, not only at the national level, but also in relation to the structure of Government in regions, States and local communities. However, the multiplication of agencies included an enlarged use of employers and workers by providing for their participation in some aspects of the administration of almost every phase of the war programme. 4 LABOUR-MANAGEMENT CO-OPERATION IN THE U.S.A. Industrial factors must also be kept in mind in evaluating methods adopted for emergency mobilisation and production. There was widespread scepticism by labour as well as by employers of intervention by Government in the field of industrial relations and the organisation of industry generally. Industrial relations in the United States are unevenly developed. While in some parts of American industry unionism is old and strong, with well recognised collective bargaining, in other parts collective bargaining is still subject to question as a method of operation. This unevenness affected wartime developments in labour-management relationships. Many managements dislike collective negotiation and desire to limit the field of collective bargaining to as narrow a scope as possible. Most employers have, generally, never favoured industry-wide collective agreements and have been unwilling either to bargain on an industry-wide basis or to delegate adequate authority to any kind of employers' association to negotiate on their behalf in the field of labour relations or to deal with problems arising out of manpower mobilisation. The lack of management cohesion often made difficult the selection of management leaders who could speak either for management as a whole or for all employers in individual industries, in dealing not only with labour organisations but with Government departments. Partly looking towards post-war developments, management frequently resisted the development for wartime purposes of machinery that might affect longterm labour relations. On the labour side as well a number of factors added to the difficulties. Conscious of the fact that collective bargaining might still be an issue, the representatives of some unions frequently were as sceptical as management both of industry-wide collective bargaining and of Government intervention. Suspicion among labour organisations arising out of jurisdictional jealousies sometimes provided excuses to those in industry and in Government who wished to avoid as far as possible use of representative labour leaders. Moreover, the need to take into consideration the views of numerous labour organisations, sometimes in conflict, made the machinery of labour consultation cumbrous. Where representation was sought in good faith, however, it proved sufficiently workable to justify the efforts made to ensure the support of organised labour in the development of wartime policies. The whole procedure of manpower mobilisation in the United States was based, in the first instance, upon the belief that there was an almost unlimited manpower capacity and therefore that labour wastage would not be dangerous or serious. Mobility of labour, large-scale labour turnover and habits of workers "shop- INTRODUCTION 5 ping" for jobs and of employers pirating labour from one another were accepted practice in American industry. Finally, probably as a result of the philosophy developed during the period of the extending frontier, both the American worker and the American employer have remained intensely individualistic and consequently reluctant to accept controls on the right to hire, the right to fire or the right to change jobs. This individualism constituted one of the basic factors in determining methods of manpower mobilisation in a country which believed both its manpower and material resources to be inexhaustible, and which desired to base its war methods as much as possible on the belief that the American individual would contribute more fully and more willingly as a result of an appeal to his patriotism and to his economic safety than because of any compulsion obtained by law, such as national service legislation. It led to the conflict in approach that was evident throughout the war between the military and civilian authorities, since the former never fully accepted the philosophy of voluntary mobilisation and the latter never fully accepted the military insistence that legislative control of manpower was required for the prosecution of the war. The purpose of the present report is to describe the participation of employers' and workers' representatives in the agencies directly concerned with manpower mobilisation and war production planning. The manpower problem itself is only dealt with in so far as this is necessary in order to understand the work or evaluate the contribution of the various consultative management-labour committees of the War Manpower Commission. The report includes some description of other agencies of Government whose experiments with different forms of collaboration between employers' or workers' representatives and the Government affected the participation of employers and workers in the agencies directly concerned with labour supply policy or production organisation. The work of certain permanent departments, such as the Department of Labor, whose operation during the war only indirectly affected labour and management participation in these questions, is described only in so far as the consultative process was influenced. The chart facing p. 1 is intended to illustrate the complexity of the wartime agencies and their inter-relations with the permanent Government departments and with each other through interdepartmental committees at various levels, and their relation to the various advisory committees set up to provide for labourmanagement participation. Part I of the report contains a short historical summary of the evolution of labour-management participation, first in the national 6 LABOUR-MANAGEMENT CO-OPERATION IN THE U.S.A. defence agencies, and then in the emergency structure established on the entry of the United States into the war, and concludes with an indication of the basic programmes used by these agencies for wartime manpower and production organisation. Part II describes the methods used, primarily by the War Manpower Commission, to carry out voluntary manpower mobilisation on the basis of the full co-operation of labour and management. Part III deals with the various methods used to draw representatives of labour and management into the war production programme, and in particular the operation of the voluntary labour-management production committees in individual war plants. Part IV, primarily for purposes of comparison, reviews the methods used by other Government agencies to secure labour and management participation, such as the tripartite organisation set up by the War Labor Board for the determination of working conditions, or the informal machinery for consultation of other agencies affecting manpower or production. Part V presents comparisons of methods used and conclusions as to the degree of their effectiveness. While the report is limited to war organisation and ends with the close of the war against Germany, it is believed that some of the experience gained during this period may be of use in determining future methods of labourmanagement consultation. To this end particular stress is laid on wartime experience in dealing with the following questions: how consultative machinery should be set up, what its composition and structure should be, and how committee members should be selected; what functions can be performed successfully by tripartite or bipartite committees and in what cases more informal methods, such as separate consultation of group interests or of individuals are required; what methods of operation are most likely to result in constructive committee work, what is the role of a committee's officers, and what staff assistance needs to be given to committee members; and, finally, what formal or informal relationships among committees, nationally, regionally and locally, are most likely to contribute to effective integration of the varied interests directly concerned in production. PART I HISTORICAL BACKGROUND CHAPTER I EVOLUTION OF LABOUR-MANAGEMENT PARTICIPATION IN WAR AGENCIES FOR MANPOWER AND PRODUCTION T H E D E F E N C E AGENCIES Labour and management participated in manpower mobilisation and production planning from an early stage in the development of the defence programme. The first period (May 1940 — December 1941) was largely one of improvisation and development of semi-independent emergency agencies; it witnessed the establishment of the Council of National Defense1 and its Advisory Commission (the National Defense Advisory Commission), the setting up of the Office of Production Management for the formulation of manpower and production policies, the operation of the National Defense Mediation Board for the maintenance of industrial peace, and the beginning of compulsory military training under the Selective Training and Service Act.2 National Defense Advisory Commission A National Defense Advisory Commission of 7 members, nominated by the Council and appointed by the President, was established to advise the Council of National Defense. The members were chosen on the basis of their ability, as coming from an industry, labour, agriculture, or public administration background, to deal with problems of industrial and farm production, industrial materials, employment and labour supply, transportation, price stabilisation and consumer protection. Both labour and management appointments to the various advisory committees set up under the auspices of the National Defense Advisory Commission, and to the staff servicing the Commission, were made on an indi1 39 Stat. 649 of 29 August 1916. The Council, as set up on 28 May 1940, was composed of the Secretaries of War, the Navy, the Interior, Agriculture, Commerce and Labor. 2 Cf. Conference of the International Labour Organisation, New York, October 1941 : Wartime Developments in Government-Employer-Worker Collaboration (Montreal, 1941), pp. 87-120, for a full description of employer-labour participation in the United States defence agencies. 10 LABOUR-MANAGEMENT CO-OPERATION IN THE U.S.A. vidual basis, and were intended to provide representation of the points of view of each group and to procure the services of specially qualified persons. To carry out responsibility in the field of employment and labour supply, a Labor Division was set up under the Commissioner in charge of these questions and a Labor Policy Advisory Committee of 16 leading trade unionists named to give the point of view of organised labour in general. The staff appointed to the Labor Division included not only trade unionists from the three labour organisations (American Federation of Labor, Congress of Industrial Organizations and Railroad Brotherhoods) but also persons with a Government or academic background. It soon became evident that the whole structure of the National Defense Advisory Commission was too unwieldy and lacking in delegated responsibility to be effective for the mobilisation of industry for defence.1 The next step therefore was to co-ordinate the policy of the agencies of the Government which were engaged in the various phases of the defence programme, to clarify their responsibilities, and to integrate their work. Office of Production Management In January 1941 the production, materials, purchases and labour activities of the National Defense Advisory Commission were transferred to a new agency, the Office of Production Management. 2 The former Commissioner for Industrial Production, selected for his practical experience in industry, and the former Commissioner for Labor and Employment, selected as an outstanding trade union leader, were named by the President as Director-General and Associate Director-General in charge of the O.P.M. and instructed to work as partners in a law firm.3 In addition, other representatives of management and labour were taken over from the organisation established under the National Defense Advisory Commission to serve on the staff and advisory structure of the new agency. The Labor Policy Advisory Committee, in par1 Cf. BUREAU OF THE BUDGET: The United States at War—Development and Administration of the War Program by the Federal Government. Historical Reports on War Administration, No. 1, U.S. Government Printing Office, Washington, D.C., 1947. This volume published after the completion of the present study, presents a full descriptive analysis of the evolution of the defence and war agencies and contains relevant texts and explanations. The reader is referred to it for background and clarification of agencies, policies, programmes, and terms used summarily in the following pages. 2 The O.P.M. was established by Executive Order No. 8629 of 7 January 1941 to regulate the production and supply of materials, plant facilities and services required for national defence, and to ensure co-ordination of the related activities of the various Government departments concerned. 8 Cf. BUREAU OF THE BUDGET, op. cit., for description of President Roosevelt's explanation, at a press conference on 7 January 1941, of his concept of partnership for the dual direction of the O.P.M. HISTORICAL BACKGROUND 11 ticular, was maintained as the policy-making instrument for labour questions. The period following the establishment of the Office of Production Management was marked by greater integration of various Government agencies concerned with defence production, the development of increased labour supply activities, co-ordination of defence training programmes, emphasis on the need to improve labour relations, and the beginning of decentralisation of administration to a regional organisation. In the spring of 1941 the administrative handling of labour supply and training activities was reorganised as a branch within the Labor Division of the O.P.M. and plans were developed for a series of 12 Regional Labor Supply Committees, which would include interdepartmental representation and representatives of industry and labour. The plans for decentralisation to the regions provided for labour and management representation on an individual basis, and thus extended to the regional and local structure the concept that then prevailed in the national structure — that co-operation of management and labour should be obtained by the participation of individual employers and trade unionists on advisory committees and as administrative staff. From the beginning of the defence period continuity of personnel, and hence to some extent of policy, tended to offset the disruptions caused by the various reorganisations of the emergency agencies throughout the war. One of the last actions of the Office of Production Management with respect to labour questions was an attempt to integrate the labour supply and training programme of its Labor Division with the work in this field of the Bureau of Employment Security of the Social Security Board, responsible for the United States Employment Service. In December 1941, as part of the proposed merger, a Deputy Director for Labor Supply and Training was appointed and advisory committees set up to assist him in both aspects of his work. A National Labour Supply Policy Committee, consisting of 6 representatives each from management and labour (3 from the A.F. of L. and 3 from the C.I.O.) met under an independent Government chairman. The activities of this Committee were developed in conjunction with those of an interdepartmental Labor Supply Committee, which had the same chairman and was composed of representatives of 12 federal agencies. National Defense Mediation Board While the National Defense Advisory Commission and the Office of Production Management, in addition to their other in- 12 LABOUR-MANAGEMENT CO-OPERATION IN THE U.S.A. terests, were concerned with the promotion öf industrial harmony as a means of increasing production, this was not their primary responsibility. On 19 March 1941, therefore, the President established the National Defense Mediation Board "to assure that all work necessary for national defense shall proceed without interruption and with all possible speed". 1 The Board was tripartite in structure, composed of 11 persons appointed by the President, 3 representing the public, 4 the workers and 4 the employers, with provision for alternate members. The selection of both the regular and alternate labour members was made on nomination by the American Federation of Labor, the Congress of Industrial Organizations and the Railroad Brotherhoods. Although the functions of the Board were primarily to deal with disputes wnich had actually reached the stage of a strike or threatened strike, it could on occasion intervene or be consulted on the adjustment of incipient disputes before actual danger of a strike or lockout. If agreement was not reached by mediation, the Board proposed voluntary arbitration. If this procedure was not accepted by both parties the Board could make recommendations on the basis of a fact-finding investigation. Fundamentally, the aim of the National Mediation Board was to supplement the mediation work of the Conciliation Service of the Department of Labor and the emergency dispute adjustment arrangements undertaken by the Labor Relations Division of the Office of Production Management. One of the most significant procedures developed by the Board was its successful insistence that the parties must return to work before settlement of a dispute was undertaken. This policy was also associated with the Board's endeavour to obtain union security clauses in agreements. 2 In November 1941, however, the National Defense Mediation Board procedures broke down over the union shop issue in the bituminous coal industry. But the Board's period of short-lived operation laid the groundwork for the War Labor Board, appointed immediately after, when the entrance of the United States into the war pointed to the necessity of an administrative tribunal which had power to decide disputes and not merely to mediate or conciliate. The experience, even in this short period, with the tripartite composition of the National Defense Mediation 1 Executive Order No. 8716 of 19 March 1941. A further Executive Order, No. 8731 of 4 April 1941, provided for the appointment of alternate as well as regular members. 2 In a series of decisions the Board evolved a policy that a union's fear of insecurity and management's fear of encroachment would be met by a "maintenance of membership" clause providing that those who were members or who should become members should as a condition of employment remain members in good standing for the life of the contract. HISTORICAL BACKGROUND 13 Board was considered so satisfactory that the tripartite principle was continued in the new agency. Selective Service System Even before procedures had been developed for the mobilisation for defence industry by the Office of Production Management, and for the avoidance of industrial disputes through the National Defense Mediation Board, recruitment for the armed services had begun under the Selective Service System. On 16 September 1940 the National Selective Training and Service Act of 19401 was adopted to provide for registration of all men of military age and to set up machinery to determine which of them should go into the armed services and which should be deferred, either by reason of occupational need, personal hardship or military unfitness. The Selective Service System was initially set up as an independent agency. For local administration it used boards composed of civilians. In practice both employers and labour leaders served on many boards, but they did so as individuals and not as representatives of any particular group, as in the other agencies set up under emergency provisions. ESTABLISHMENT OF W A R AGENCIES FOR MANPOWER AND PRODUCTION The entrance of the United States into the war brought almost immediate changes in the structure of the various agencies created during the defence period to deal with material production, manpower mobilisation, and industrial relations. Thus the Office of Production Management was taken over by the War Production Board; the War Manpower Commission was set up to co-ordinate the work of all the agencies dealing with labour supply; and the National War Labor Board replaced the National Defense Mediation Board. The experience acquired earlier was widely drawn upon both in the organisation of the new agencies and in the methods of obtaining labour and management participation in the formulation and application of wartime mobilisation policies. National Industry-Labor Conference The way for the new war agencies was paved by the convening of a National Industry-Labor Conference by the President on 17 December 1941, with the principal object of seeking "a quick agreement for avoiding interruption in production". The Conference > 54 Stat. 885. 14 LABOUR-MANAGEMENT CO-OPERATION IN THE U.S.A. was headed by a moderator, who was the public member and Chairman of the National Defense Mediation Board, and an associate moderator, the Chairman of the Senate Labor Committee. 1 Agreement was reached on three general principles : there should be no strikes or lockouts during the war; all disputes should be settled by peaceful means ; and the President should set up a War Labor Board to handle wartime disputes. The Conference did not solve the difficulties concerning the inclusion of a union shop requirement on which the National Defense Mediation Board had foundered, nor did it concern itself with wage stabilisation. It has been claimed that the Conference failed to go farther in outlining wartime policies for the settlement of labour controversies primarily because no serious preparations had been made to ensure the Conference's success, and because it was hurriedly called to head off hasty legislation to prevent strikes which was being proposed in Congress. Nevertheless, the agreement reached made it possible to establish machinery for the elimination of industrial disputes on the basis of the no-strike, nolockout pledge. Labour Consultation by the President As a result of labour's attitude in accepting the no-strike agreement and in order to ensure that the labour movement would accept required wartime measures, the President appointed early in 1942 an advisory council composed of 3 representatives of the C.I.O. and 3 of the A.F. of L., including their respective presidents. This advisory committee, sometimes known as the War Labor Council and sometimes as the President's Labor Victory Committee, met with him from time to time, sometimes formally and more often informally, whenever important questions of policy arose directly affecting labour's contribution to the war effort. It occupied no formal place in the structure of Government, but it enabled the President to receive the advice of labour leaders in formulating many wartime policies. Its secretary was a Government official, who frequently served as liaison between the two 1 The Conference was composed of 12 labour representatives, 6 chosen by the American Federation of Labor and 6 by the Congress of Industrial Organizations (and including their respective presidents); and 12 industrial representatives named by the Chairman of the Business Advisory Council of the Department of Commerce. The Business Advisory Council consists of a representative group of businessmen, who serve for a one-year term, without compensation. I t was organised in 1933 by the Secretary of Commerce; it devotes itself to questions referred to it by the President and by the Secretary of Commerce and acts as a clearing house for industrial views on Governmental matters which affect business. HISTORICAL BACKGROUND 15 labour groups and the President, and between the labour movement and various other Government agencies. War Production Board On 16 January 1942 the President, by Executive Order1, set up the War Production Board as the central civilian agency responsible for the organisation of wartime production and supply. Instead of the dual headship of the Office of Production Management (Director-General and Associate Director-General, selected respectively from a management and labour background) the War Production Board was administered by a single Chairman, and advised by an interdepartmental group comprising the heads of the departments or agencies concerned with supply and production problems. 2 The duties of the War Production Board included the general direction of the war procurement and production programme and the issue of necessary directives to determine the policies and methods of the federal agencies responsible for carrying out war procurement and production in all aspects. As a result of the establishment of the War Production Board, the Office of Production Management was abolished and the new agency assumed all its functions, among them the work of its National Labor Supply Policy Committee (described above) and of the Labor Division, namely, co-ordination of labour supply, labour relations and labour participation in war production generally. One of the first steps taken after the incorporation of the Labor Division and the National Labor Supply Policy Committee in the War Production Board was the preparation of a proposal to reorganise the structure for control of the labour supply and training programme nationally, regionally and in the local and industrial areas. The plan would have set up interdepartmental councils a t all levels, with, in addition, at the local and industrial area level, advisory groups of labour and management representatives, called Industrial Labor Supply Committees. The proposed reorganisation plan was circulated in March 1942 for the consideration of the national and regional advisory committees which had been set up by the Office of Production Manage1 Executive Order No. 9024 of 16 January established the W.P.B.; Executive Order 9125 of 7 April 1942 extended the functions under the Second War Powers Act; Executive Orders No. 9280 of S December 1942 and No. 9335 of 19 April 1943 altered Board membership, as did letters of the President of 30 June 1943 and 9 December 1944; Executive Order No. 9638 of 4 October 1945 abolished the War Production Board and transferred its remaining functions to the Civilian Production Administration. 2 See Chapter I X for discussion of the effect upon management and labour participation of the difference in the structure of the Office of Production Manage ment and the War Production Board. The role of management and labour in the W a r Production Board generally is described in Chapters I X to XIV. 16 LABOUR-MANAGEMENT CO-OPERATION IN THE U.S.A. ment. The separation of interdepartmental and labour-management committees, called for under the proposal, was severely criticised in many regions where the existing system of tripartite Regional Labor Supply Committees was preferred. In any case the plan was never wholly effected because, a few weeks later, the labour supply and training functions of the War Production Board were transferred to the newly established War Manpower Commission. The War Manpower Commission In April 1942 the War Manpower Commission was established as an interdepartmental board under a Chairman appointed by the President. 1 It consisted of the Chairman and one representative each of the Departments of War, the Navy, Agriculture and Labor, the Federal Security Agency, the War Production Board, the United States Civil Service Commission, the National Housing Agency, the Selective Service System and such other executive departments as the President might determine, and a joint representative of the War Shipping Administration and the Office of Defense Transportation. The War Manpower Commission was not intended to be an operating agency, but to co-ordinate the activities of the other agencies already operating in the field of labour supply. The functions of the Chairman as defined under the initial Executive Order were to: (a) formulate plans and programmes and establish basic national policies to assure the most effective mobilisation and maximum utilisation of the nation's manpower in the prosecution of the war; and issue such policy and operating directives as may be necessary thereto; (2>) estimate the requirements of manpower for industry; review all other estimates of needs for military, agricultural, and civilian manpower; and direct the several departments and agencies of the Government as to the proper allocation of available manpower; 1 The War Manpower Commission was initially established under Executive Order 9139 of 18 April 1942; additional functions were transferred to the Commission by Executive Order 9247 of 17 September 1942; Executive Order 9279 of 5 December 1942 transferred the Selective Service System to the War Manpower Commission and provided for the establishment of the Management-Labor Policy Committee; Executive Order 9410 of 23 December 1943 again separated out the Selective Service System as a separate agency. Two other Executive Orders affect the responsibilities of the Commission: Executive Order 9301 of 9 February 1943 makes the War Manpower Commission responsible for administering the application of the 48-hour work week; Executive Order No. 9328 of 8 April 1943 (the "Hold the Line" Order) placed certain responsibilities on the War Manpower Commission in connection with the economic stabilisation programme and provided that the penalty provision of the Stabilization Act of 2 October 1942 may be invoked to secure compliance in case of violation of regulations concerning transfer of workers at higher rates of pay. Executive Order No. 9617 of 19 September 1945 terminated the War Manpower Commission and transferred its functions to the Department of Labor. HISTORICAL BACKGROUND 17 (c) determine basic policies for, and take such other steps as are necessary to co-ordinate the collection and compilation of labour market data by federal departments and agencies; () take steps to prevent and relieve gross inequities or undue hardships arising from the exercise of the provisions of Section S of this Order insofar as he finds so doing will not interfere with the effective prosecution of the war, and (c) establish such procedures (including appeals) as are necessary to assure a hearing to any person claiming t h a t any action, taken by any local or regional agent or agency of the W a r Manpower Commission pursuant to Section 5 of this Order and said Executive Order No. 9139, is unfair or unreasonable as applied to him. 8. (a) The Chairman may perform the functions and duties and exercise the powers, authority, and discretion conferred upon him by this Order or any other Order of the President through such officers, agents, and persons and in such manner as he shall determine. (6) The Chairman may avail himself of the services and facilities of such Executive departments and agencies as he determines may be of assistance in carrying out the provisions of this Order. He may accept the services and facilities of State and local agencies. 9. Subject to appeal to the President or to such agent or agency as the President may designate, each Executive department and agency shall so utilize its facilities, services, and personnel and take such action, under authority vested in it by law, as the Chairman, after consultation with such department or agency, determines necessary to promote compliance with the provisions of this Order or of policies, directives, or regulations prescribed under said Executive Order No. 9139. 10. The Chairman shall appoint a Management-Labor Policy Committee to be selected from the fields of labor, agriculture, and industrial management, and shall consult with the members thereof in carrying out his responsibilities. The Chairman may appoint such other advisory committees composed of representatives of governmental or private groups or both as he deems appropriate. 11. The Chairman shall be ex officio an additional member of the Economic Stabilization Board established by Executive Order No. 9250, dated October 3, 1942. 12. All prior Executive Orders, insofar as they are in conflict herewith, are amended accordingly. AH prior regulations, rulings, and other directives relating to the Selective Service System shall remain in effect, except insofar as they are in conflict with this Order or are hereafter amended by regulations, rulings, or other directives issued by or under the direction of the Chairman. 13. This Order shall take effect immediately and shall continue in force and effect until the termination of Title I of the First War Powers Act, 1941. (Signed) The White House, December 5, 1942. F R A N K L I N D. ROOSEVELT. APPENDIX III ADMINISTRATIVE ORDERS ESTABLISHING THE MANAGEMENT-LABOR POLICY COMMITTEE The text of the initial Administrative Order of 25 May 1942 and its two revisions on 8 January 1943 and 3 April 1943 are given in full since they define the relationship of the Management-Labor Policy Committee to the War Manpower Commission, and outline the functions and methods of operation of the National Committee. ADMINISTRATIVE ORDER N O . 4 1 By virtue of the authority vested in me as Chairman of the War Manpower Commission, the following order is promulgated for the guidance of all concerned: 1. There is hereby established in the Office of the Chairman of the Commission a Management-Labor Policy Committee consisting of an equal number of representatives of Management and Organized Labor. 2. The Deputy Chairman of the War Manpower Commission shall be chairman of this Committee, and he may designate a presiding chairman to serve in his stead. 3. The Management-Labor Policy Committee is authorized to consider and recommend to the Chairman, matters of major policy concerning the activities and responsibilities of the Commission. T h e Committee shall initiate studies and the formulation of policies, as well as consider those referred to it by the Chairman. P A U L V. MCNUTT. ADMINISTRATIVE O R D E R N O . 4 ( R E V I S E D ) 2 Establishment of Management-Labor Policy Committee In conformity with the provisions of section 10 of Executive Order 9279, the following Order is promulgated for the guidance of all concerned: 1. There is hereby established in the office of the Chairman of the War Manpower Commission a Management-Labor Policy Committee consisting of eight representatives of organized labor, eight representatives of management, and two representatives of agriculture. 2. The members of the Committee shall be appointed by the Chairman of the War Manpower Commission. Each member of the Committee shall be entitled to nominate an alternate. Such nominations must, however, be passed upon and 1 2 Dated 25 May 1942. Dated 8 January 1943. 358 LABOUR-MANAGEMENT CO-OPERATION IN THE U.S.A. approved by the Chairman before the persons nominated shall be eligible to serve on the Committee. 3. The Chairman of the War Manpower Commission shall designate a Chairman of the Committee and also an Executive Secretary of the Committee. Nominations for these positions may be submitted to the Chairman by the members of the Committee. 4. The Committee may, if it so desires, select, in accordance with such procedures as it may prescribe, from among its own members an Executive Committee not to exceed six members. This Executive Committee shall perform such duties as may be assigned to it by the members of the full Committee. 5. T h e Management-Labor Policy Committee shall consider such questions of major policy as are referred to it, and shall make, in writing or in consultation with the Chairman of the War Manpower Commission, specific recommendations as to the action which, in its judgment, he should take. The Committee may also, on its own motion, make, in writing or in consultation with the Chairman of the War Manpower Commission, recommendations relative to policies which, in its judgment, should be put into operation by him. 6. T h e Deputy Chairman of the War Manpower Commission shall act as t h e Chairman's representative in insuring that the Committee is provided with adequate staff assistance and other necessary facilities for the carrying on of its activities, shall participate with the Chairman of the War Manpower Commission in the presentation of matters to the Committee, and in receiving and considering the recommendations of the Committee, and shall, in the absence of the Chairman of the War Manpower Commission, act in his stead in placing matters before: the Committee and in receiving the Committee's recommendations. 7. The Committee may make such rules relative to time and place of meeting, attendance a t meetings, and order of business as are, in its judgment, necessary for the successful carrying out of the duties and responsibilities assigned to it. ADMINISTRATIVE O R D E R N O . 4 ( R E V I S E D ) 1 Establishment of Management-Labor 1. Policy Committee Purpose. .01 I t is the purpose of this order to reconstitute the Management-Labor Policy Committee of the War Manpower Commission in accordance with the recommendations of the Committee so t h a t the members thereof will be truly representatives of labor, agriculture and industrial management. .02 The purpose of a committee composed of representatives selected b y labor, agriculture and industrial management is to make available to the Chairman of the War Manpower Commission the advice and counsel of the leaders of these groups in the determination of War Manpower Commission policies and programs and to promote the active cooperation of labor, agriculture and industrial management in securing national compliance with and support of such policies and programs. 2. Authority. .01 Section 10 of Executive Order No. 9279 provides as follows: " T h e Chairman shall appoint a Management-Labor Policy Committee to be selected from the fields of labor, agriculture, and industrial management, and 1 Dated 3 April, 1943. APPENDICES 359 shall consult with the members thereof in carrying out his responsibilities. T h e Chairman may appoint such other advisory committees composed of representatives of governmental or private groups or both as he deems appropriate." 3. Selection and Appointment. .01 T h e Management-Labor Policy Committee of the W a r Manpower Commission shall be composed of three representatives of labor, three representatives of agriculture, and three representatives of industrial management. .02 Labor shall be represented by one member chosen by each of the following representative labor organizations: The American Federation of Labor; The Congress of Industrial Organizations; The Railroad Brotherhoods. .03 Agriculture shall be represented by one member chosen by each of the following representative agricultural organizations: T h e American Farm Bureau Federation ; The National Grange; The National Farmers Union. .04 Industrial management shall be represented b y one member chosen by the United States Chamber of Commerce, one member chosen by the National Association of Manufacturers, and a third member chosen by the first two or by the organizations represented by the first two. .05 The representatives of labor, agriculture, and industrial management, selected in accordance with the procedure prescribed above, shall be nominated to the Chairman of the War Manpower Commission, who shall, if he agrees therewith, appoint them as members of the Management-Labor Policy Committee. 4. Officers. .01 The Committee shall elect a chairman and a vice-chairman subject to the approval of the Chairman of the War Manpower Commission and shall nominate to the Chairman of the War Manpower Commission a person to be appointed Executive Secretary to the Committee. .02 The Committee may select, in accordance with such procedures as it may prescribe, from among its own members an Executive Committee not to exceed six members. The Executive Committee shall perform such duties as may be assigned to it by the members of the full Committee. .03 The Committee shall notify the Chairman of the War Manpower Commission of any proposed changes in these offices or the Executive Committee. 5. Alternates. .01 There shall be one, and only one, alternate member for each member of the Management-Labor Policy Committee. .02 Each alternate member shall be nominated by the member he is to represent and shall be appointed by the Chairman of the War Manpower Commission. .03 A member a n d / o r his alternate may attend any meeting of the Committee. When both are present, only the member shall be entitled to vote. I t is anticipated that alternate members will attend most of the meetings and do most of the work. 360 LABOUR-MANAGEMENT CO-OPERATION IN THE U.S.A. 6. Rules. .01 T h e Committee may adopt such rules relative to time and place of meetings, attendance a t meetings, and order of business not in conflict with this order, as are, in its judgment, necessary for the successful carrying out of the duties and responsibilities assigned to it. 7. Procedure. .01 The Management-Labor Policy Committee shall consider such questions of major policy as are referred to it, and shall make, in writing or in consultation with the Chairman of the W a r Manpower Commission, specific recommendations as to the action, which, in its judgment, he should take. .02 T h e Commission may also, on its own motion, make, in writing or in consultation with the Chairman of the War Manpower Commission, recommendations relative to policies which, in its judgment, should be p u t into operation by him. 8. Decisions. .01 All dedsions of the Committee, participated in by alternate members shall be reached by unanimous agreement. .02 When the Committee, in which alternate members are participating, fails to reach unanimous agreement, the question shall be referred to a meeting of the member« of the Committee. .03 Unanimous decisions of the Management-Labor Policy Committee shall be transmitted to the Chairman of the W a r Manpower Commission as "Policy Decisions" of the Committee. .04 Where the members of the Management-Labor Policy Committee fail to reach unanimous agreement, the chairman of the Committee shall report t h a t fact to the Chairman of the War Manpower Commission and shall transmit to him such reports as individual members or groups of members wish to make. Such reports shall be signed by the members agreeing to them. APPENDIX IV MEMORANDA PROVIDING FOR APPOINTMENT AND FUNCTIONS OF REGIONAL AND AREA MANAGEMENT-LABOR COMMITTEES The texts of the two Field Service Memoranda of 10 March 1943 outlining the relations of the National Management-Labor Policy Committee to the Regional and Area Committees, and the structure and methods of operation of these committees, are given in full since they constitute basic texts. FIELD SERVICE MEMORANDUM NO. 2, OFFICE OF THE EXECUTIVE DIRECTOR, 10 MARCH 1943 Appointment and Functions of Regional and Area Management-Labor War Manpower Committees 1. This memorandum, originally approved by the Management-Labor Policy Committee on June 30, 1942, has been edited as to organizational titles and phraseology without material change in content. 2. General. The effective utilization of the nation's manpower necessitates the participa tion of Management, Labor and the public in the development of policies dealing with manpower. To facilitate this participation there has been established at the national level a Management-Labor Policy Committee which initiates or reviews proposed policies and makes recommendations to the Chairman of the War Manpower Commission with respect thereto. The proper execution of the program and policies of the War Manpower Commission through the Regional and Area Manpower Directors requires the assistance of Management and Labor in effectuating such policies, therefore there shall be established in each region a Regional Management-Labor War Manpower Committee and such Area ManagementLabor War Manpower Committees as may be necessary. The selection of Management and Labor representatives on such committees shall be so made that those chosen truly represent the point of view of their groups and will, as a result, be helpful in securing the cooperation of Management and Labor in the execution of the program and policies developed. 3. Management-Labor Policy Committee. In addition to the functions heretofore vested in the Management-Labor Policy Committee, that committee shall be authorized to review any recommendation of a Regional Management-Labor War Manpower Committee and shall submit its advice with respect thereto to the Chairman of the War Manpower Commission. 4. Organization of Regional Management-Labor War Manpower Committees. .01 Composition. 362 LABOUR-MANAGEMENT CO-OPERATION IN THE U.S.A. .011 The ¡Regional Management-Labor War Manpower Committees shall be composed of: Two representatives of the American Federation of Labor; Two representatives of the Congress of Industrial Organizations; One representative of the Railway Labor Organizations; Five representatives of Management. .012 The Regional Manpower Director shall be the non-voting Chairman of the Regional Management-Labor War Manpower Committee. .02 Selection. .021 The Labor representatives of the Management-Labor Policy Committee shall nominate a panel of individuals, recommended by such representatives as labor members of the Regional Management-Labor War Manpower Committees. .022 The Management representatives of the Management-Labor Policy Committee shall nominate a panel of individuals recommended by such representatives as Management members of the Regional Management-Labor War Manpower Committees. .023 The Management-Labor Policy Committee shall recommend a panel of individuals, consisting of an equal number of individuals from the panels nominated by the Labor representatives and by the Management representatives of the Committee, respectively, from which an equal number of Management and Labor members will be appointed to each Regional Management-Labor War Manpower Committee by the Chairman of the War Manpower Commission. .03 Functions. .031 The Regional Management-Labor War Manpower Committees shall serve as consultants to the Regional Manpower Director within the scope of policies and instructions issued by the Chairman of the War Manpower Commission. In addition, and subject to such policies and instructions, each such Committee shall: (a) Advise the Regional Manpower Director as to methods for securing full participation by Area Management-Labor War Manpower Committees; (6) Through its individual members, or as a Committee, render assistance with respect to area situations which are beyond the scope of an Area committee or situations which require the participation of an impartial non-local representative; (c) Review recommendations of Area Management-Labor War Manpower Committees for the purpose of making recommendations to the Regional Manpower Director regarding actions to be taken. 5. Organization of Area Management-Labor War Manpower Committees. .01 Composition. .011 The Area Management-Labor War Manpower Committees shall be composed of: One or two representatives of the American Federation of Labor; One or two representatives of the Congress of Industrial Organizations; Two or four representatives of Management. .012 The Area Manpower Director shall be the non-voting Chairman of the Area Management-Labor War Manpower Committee. .013 Where a transportation problem exists (other than local transportation), 363 APPENDICES the Committee may be enlarged to include a representative of Railway Labor Organizations and a representative of Railroad Management. .02 Selection. .021 The following procedure will be followed in selecting members: (a) The Regional Manpower Director shall, in writing, request the various area employer associations or other appropriate groups to nominate the required number of representatives of employers engaged in essential activities to serve as representatives of Management. If it is determined t h a t there is need for a Railroad Management representative the Regional Manpower Director shall request Railroad Management to nominate an employer representative to serve on the Committee; (6) The Regional Manpower Director shall, in writing, request the local American Federation of Labor and Congress of Industrial Organizations labor organizations to nominate the required number of individuals representing workers engaged in essential activities, to serve as representatives of Labor. If it is determined that there is need for a Railway Labor Representative, the Regional Manpower Director shall request appropriate Railway Labor organizations to nominate a Labor representative to serve on the Committee; (c) From the nominations so submitted, the Regional Manpower Director shall appoint the Labor and Management representative of the Area Management-Labor War Manpower Committee. .03 Alternative Composition and Selection. .031 When in the judgment of the Regional Manpower Director the War Manpower program can be better served by a different composition or method of selection of either Management or Labor representatives, such other composition or method of selection may be adopted after consultation with the Regional Management-Labor War Manpower Committee. .04 Functions. .041 The Area Management-Labor War Manpower Committee shall function on the basis of and within the scope of policies approved by the Chairman of the War Manpower Commission. .042 The Area Management-Labor War Manpower Committees shall be responsible for: (a) Obtaining local cooperation in effectuating the policies and program approved by the Chairman of the War Manpower Commission; (6) Obtaining the cooperation of local Management and Labor in the solution, on a local basis, of all manpower problems relating primarily to Management, Labor, or Management and Labor, such solutions to be within the framework of the policies and program approved by the Chairman of the War Manpower Commission; (c) Facilitating the work of the War Manpower Commission in effecting the orderly transfer of needed workers to essential activities; (d) Hearing complaints of individual workers or employers, or groups of workers or employers, concerning any action or failure to act by local representatives of governmental agencies which are carrying out any part of the program of the War Manpower Commission. The Committee shall make recommendations to the Area Manpower Director concerning such cases. L A W R E N C E A. APPLEY, Executive Director. 364 LABOUR-MANAGEMENT CO-OPERATION IN THE U.S.A. FIELD SERVICE MEMORANDUM NO. 3, OFFICE OF THE EXECUTIVE DIRECTOR, 10 MARCH 1943 Procedure for Review of Recommendations of Regional and Area Management-Labor War Manpower Committees 1. This memorandum, originally approved by the Management-Labor Policy Committee on June 30, 1942, has been edited as to organizational titles and phraseology without material change in content. 2. Area Management-Labor War Manpower Committee Recommendations. .01 The recommendations of Area Management-Labor War Manpower Committees shall be made to the Area Manpower Director. If the Area Manpower Director concurs in such recommendations, his decision shall be final, unless the Regional Manpower Director requests that the matter be submitted to him for review. .02 If the Area Manpower Director does not concur in any such recommendation, the Area M'anagement-Labor War Manpower Committee may request the Regional Manpower Director to review the matter. .03 If the Regional Manpower Director concurs in the Committee recommendations, he shall instruct the Area Manpower Director accordingly. .04 If the Regional Manpower Director does not concur in the Committee's recommendations, he shall refer the matter to the Regional Management-Labor War Manpower Committee and may direct the Area Manpower Director to suspend action on the matter involved, pending the review by that Committee. 3. Regional Management-Labor War Manpower Committee Recommendations. .01 The recommendations of the Regional Management-Labor War Manpower Committee shall be made to the Regional Manpower Director. Such recommendations may be with respect to matters originating at the regional level or with respect to matters originating in an Area Management-Labor War Manpower Committee and reviewed by the Regional Management-Labor War Manpower Committee. .02 If the Regional Manpower Director accepts the recommendation of the Regional Management-Labor War Manpower Committee, his decision shall be final. If the matter involved has been considered by an Area Management-Labor War Manpower Committee, the Regional Manpower Director shall inform the Area Manpower Director of his decision and the Area Manpower Director shall inform the Area Management-Labor War Manpower Committee. .03 If the Regional Manpower Director does not concur in the recommendation of the Regional Management-Labor War Manpower Committee, the Management-Labor Policy Committee may, upon application of the Regional Management-Labor War Manpower Committee, request that no action be taken on the matter pending its review of the Committee's recommendations. .04 The Regional Manpower Director may suspend action on the matter involved pending the review by the Management-Labor Policy Committee. That Committee shall submit its recommendations to the Chairman of the War Manpower Commission. .05 The Chairman's decision shall be final and shall be communicated to the Regional Manpower Director who shall advise the Regional ManagementLabor War ManpDwer Committee and, if necessary, the Area Manpower Director. APPENDICES 365 4. Procedures and Quorum. .01 Each Regional and Area Management-Labor War Manpower Committee shall determine its own rules and methods of procedure. .02 No meeting of a Regional or Area Management-Labor War Manpower Committee shall proceed unless at least one representative of Management and one representative of Labor are present. LAWRENCE A. APPLET, Executive Director. APPENDIX V WAR MANPOWER COMMISSION, REGULATION No. 5—APPEALS The text of Regulation No. 5, as amended on 13 March 1943, which outlines the methods of taking appeals and authority for appeals procedures, is given in full, since references to it are made in Chapter VIII. REGULATION NO. 5 906.1 Right of appeal. Any person who claims that any action taken, action denied or decision rendered with respect to him, with respect to his employer or with respect to any of his workers, under any War Manpower Commission regulation, program, or policy, is unfair or unreasonable as applied to him, or is inconsistent with any such regulation, program or policy, may appeal from such action or decision in accordance with the provisions of this regulation. 906.2 First appeals stage: area level, (a) To whom appeals taken. In areas for which an Area Manpower Director and an Area Management-Labor War Manpower Committee have been appointed appeals shall be taken to such Committee and hearings shall be afforded before such Committee, or, at the discretion of that Committee, before one or more Area Appeals Committees composed of an equal number of representatives of management and labor (including agricultural representation, as provided in Section 906.6 (h)), selected by the Area Manpower Director from a panel chosen by the Area Management-Labor War Manpower Committee. The Area Director, or his designated representative, shall serve as the non-voting chairman of the Area Management-Labor War Manpower Committee in appeals hearings and of the Area Appeals Committees. (6) Decision at first appeals stage. (1) At the first appeal stage, a decision shall be rendered on the merits of the case on the basis of the record of the action from which appeal is taken and the evidence presented at the hearing. The decision by a majority of the Committee shall be final unless further appeal is taken in accordance with Section 906.3 (a) of this regulation. Members of the Committee may file majority and minority reports. In the event of a tie vote, the case including the complete record thereon, shall be transmitted promptly to the Regional Management-Labor War Manpower Committee for review and decision in accordance with Section 906.3 (6) and (c) of this regulation. (2) An Area Management-Labor War Manpower Committee may take jurisdiction of, hear and render a decision, which shall supersede any decision rendered, by an Area Appeals Committee, on any case assigned by that Committee to an Area Appeals Committee, at any time after the assignment of the case to an Area Appeals Committee and prior to the expiration of the period for further appeal or the filing of a further appeal to the Regional Management-Labor War Manpower Committee. APPENDICES 367 (c) Intermediate appeals stage between area and regional levels. A Regional Manpower Director, with the specific approval of the Chairman, may, with respect to an area presenting special problems and for which a duly constituted Management-Labor War Manpower Committee is functioning, provide for an intermediate review stage between the area appeals stage and the regional level. The review of appeals at such an intermediate review stage shall be subject, in all respects, to the procedures and requirements set forth in this regulation with respect to review of appeals at the regional level. 906.3 Second appeals stage: regional level, (a) Who may appeal to regional level. Any person who (i) has a right to appeal as provided in Section 906.1 of this regulation and (ii) has attended the hearing at the area appeal level in person or by a representative, or shows good cause for his failure to attend such hearing, may appeal to the regional level within the time prescribed for taking such appeal. Within the same time, the Area Manpower Director, upon his own initiative, may transmit any case for review at the regional level, after decision at the area level. (6) To whom appeals taken. Further appeal from decisions at the area appeals level shall be taken to the appropriate Regional Management-Labor War Manpower Committee which may at the discretion of that Committee, act through a Regional Appeals Committee composed of an equal number of representatives of management and labor (including agricultural representation, as provided in Section 906.6 (h), selected by the Regional Manpower Director from a panel chosen by the Regional Management-Labor War Manpower Committee. The Regional Manpower Director, or his designated representative, shall serve as the non-voting chairman of the Regional Management-Labor War Manpower Committee in appeals cases and of Regional Appeals Committees. (c) Decision at second appeals stage. (1) The Regional Committee shall render a decision on the basis of the record in the case unless, in its judgment, a further hearing is necessary to enable the Committee to reach a fair and just decision. If the Committee determines that further hearing is necessary, the Committee may either conduct such hearing itself, or remand the case to the area level for such further hearing. The decision by a majority of the Committee shall be final unless further appeal is taken in accordance with Section 906.4 (a). Members of the Committee may file majority and minority reports. In the event of a tie vote on a case in which a decision has been rendered at the area appeals level, the decision at that level shall be final unless further appeal is taken. In the event of a tie vote at both the area and regional appeals levels, the case, including the complete record thereon, shall be transmitted promptly to the Chairman of the War Manpower Commission for decision in accordance with Section 906.4 of this regulation. (2) A Regional Management-Labor War Manpower Committee may take jurisdiction of, hear and render a decision, which shall supersede any decision rendered by a Regional Appeals Committee, on any case assigned by that Committee to a Regional Appeals Committee, at any time after assignment of the case to a Regional Appeals Committee and prior to the expiration of the period for further appeal or the filing of a further appeal to the Chairman of the War Manpower Commission. 906.4 Appeal to the Chairman of the War Manpower Commission, (a) Who may appeal. Any person entitled to appeal from a decision at the area appeals level may appeal from a decision at the regional level to the Chairman of the War 368 LABOUR-MANAGEMENT CO-OPERATION IN THE U.S.A. Manpower Commission, within the time prescribed for taking such appeal. Within the same time, the Regional Manpower Director, upon his own initiative, may transmit any case to the Chairman of the W a r Manpower Commission for review, after decision a t the regional level. (b) Taking of jurisdiction by Chairman. The Chairman of the War Manpower Commission may, in his discretion, take jurisdiction of any appeals case a t a n y stage of the appeals process and render a final decision on that appeal. (c) Final decision by the Chairman. The decision of the Chairman of the W a r Manpower Commission made after consideration of the record in the case and recommendations submitted by the National Management-Labor Policy Committee, shall be final in all cases. 906.5 Effect of appeal on action appealed from or on further action in accordance with decision appealed from, (a) Effect of appeal. Whenever, in the first instance or pursuant to a decision on appeal, the War Manpower Commission or any agent or agency acting on its behalf or with its consent, issues a statement of availability to or makes a referral of any worker, neither the appeal of the employer nor any decision on such appeal (other than a final decision finding fraud or misrepresentation on the part of the worker) shall in any way prejudice the right of the worker to whom the statement or referral had been issued to accept new work on the basis thereof, or the right of an employer to retain a worker whom he has hired in reliance upon such statement or referral. In all other cases the taking of an appeal shall suspend the action appealed from pending final decision, unless the Chairman of the Committee to whom an appeal is taken specifically directs otherwise. (b) Immediate issuance of statements of availability or making of referrals. Except as otherwise provided pursuant to subsection (c) of this section, an individual found to be entitled to a statement of availability or a referral pursuant to a determination of the War Manpower Commission or any agent or agency acting on its behalf or with its consent, or pursuant to any appeal decision, shall be entitled to immediate issuance of such statement or referral notwithstanding any appeal or further appeal from such determination or decision. (c) Optional procedure with respect to issuance of statements of availability and making of referrals. (1) Method of exercising option. Any Area Manpower Director, after consultation with his Area Management-Labor War Manpower Committee, may elect to make applicable in his area the procedure described in this subsection with respect to issuance of statements of availability to and making referrals of workers. Such election shall be evidenced by an order issued by the Area Manpower Director, and approved by the Regional M a n power Director, a copy of which order shall be filed with the Chairman prior to the effective date thereof. Such election shall be effective until revoked by further order of the Area Manpower Director, approved and filed in the same manner. Any such election shall have general application in the area, and may not be made with respect to particular cases only. (2) Procedure governing suspension of issuance of statements of availability and making of referrals. (i) In and only in any case in which it is determined by the War Manpower Commission, or any agent or agency acting on its behalf or with its consent, t h a t a statement of availability should be issued to a worker on the ground t h a t continuance of his employment would involve undue personal hardship or that referral of the worker should APPENDICES 369 be made to other available employment in which the individual will be more fully utilized in the war effort, the issuance of such statement of availability or the making of such referral shall be suspended for a period, designated by the Area Director, which shall not be more than three days from the date of notification to the employer of the determination to issue the statement of availability or make the referral. (ii) The employer shall be immediately notified of the determination to issue the statement of availability or make the referral. If the employer does not file his appeal, in writing, within the period designated by the Area Director pursuant to paragraph (i) hereof, the statement of availability or referral shall be issued in accordance with such determination without prejudice however, to the employer's right to appeal therefrom on the merits as provided in this regulation. If the employer files his appeal in writing within such period, the issuance of the statement of availability or referral shall be suspended for a further period, designated by the Area Director, which shall not be more than ten days from the date of notification to the employer of the determination to issue the statement of availability or make the referral. If within such designated further period, the case has not been decided a t the area level, the statement of availability or referral shall be issued immediately upon the expiration of such period. Except as permitted in this paragraph, no suspension of the issuance of a statement of availability or referral shall be directed or authorized. (iii) If the employer, upon notification of a determination to issue the statement of availability or make the referral, indicates that he does not intend to appeal, the statement of availability shall be issued or the referral shall be made immediately; if the employer indicates his intention to appeal but does not perfect his appeal, in writing, within the period designated by the Area Director pursuant to paragraph (i) hereof, the statement of availability shall be issued or the referral made immediately upon the expiration of such period. (iv) An Area Director may withhold the application of the procedure set forth in this subsection for suspending the issuance of statements of availability and referrals as regards an employer whom the War Manpower Commission finds, after notice, hearing and final decision, to be arbitrarily and capriciously abusing his right of appeal under this subsection and for so long as such employer fails to satisfy the Area Director that such abuse will be corrected. 906.6 General provisions, (a) Notification of action or decision and right to appeal. Any worker or employer who has a right to appeal from any action or decision shall be notified of such action or decision, and shall be advised a t the time of notification of his appeal rights and of the method of taking an appeal, except that this subsection shall be construed to permit reasonable posting or publication of notices in cases in which personal notice is deemed impracticable. (6) Time for taking appeals. Appeals to the area and regional levels shall be taken within the time prescribed by the Regional Manpower Director, which shall be not less than three and not more than seven days following receipt of notice or posting or publication of notice, as the case may be, of the action or decision. Appeals to the Chairman of the War Manpower Commission shall be taken within seven days following receipt of notice or posting or publication of the notice, as 370 LABOUR-MANAGEMENT CO-OPERATION IN THE U.S.A. the case may be, of the decision. When notice of the action or decision is given by mail, such notice shall be deemed to have been received on the second day following the date of mailing, and an appeal shall be deemed to have been taken on the date of mailing of a notice that appeal is taken. (c) Method of taking appeal. Any person entitled to appeal as provided in Section 906.1 of this regulation may give notice of his appeal in person, in writing, or in any other manner which duly apprises the War Manpower Commission of the taking of the appeal. (d) Notice of hearings and further appeal. The appellant and any other person who, following the decision to be made on appeal would be entitled to appeal, shall be given reasonable notice of the time and place of any hearing upon the appeal, and shall be promptly advised of any further appeal. (e) Appearance by interested persons. Any worker or employer, group or organization of workers or employers, and other persons or organizations who claim to be prejudiced by any action which is the subject of an appeal under this regulation may be permitted by the Chairman of the Committee hearing an appeal from such action to attend and be heard at the hearing. (/) Right to representation. Any action which any person or organization may take under this regulation may be taken on his behalf by his duly authorized representative. (g) Consolidation of appeals. Whenever appropriate for the full and expeditious determination of common questions raised by two or more appeals, the Chairman of the Committee to whom such appeals are taken may consolidate them. (A) Agricultural management and labor representation. Whenever agricultural employment is involved in an appeal, the Committee before whom such appeal is pending shall include representatives of agricultural management and labor. (t) Conduct of hearings on appeal. All hearings on appeals shall be conducted informally and lin a manner that will best develop the facts, and assure a fair and just decision in the matter, without regard to whether a worker or employer has erred as to the issues involved or as to his grounds for relief. (j) Decisions based on evidence presented al a hearing. A decision of an appeal made on the record as provided in Sections 906.3 (c) and 906.4 (c) of this regulation shall be made exclusively upon evidence presented at a hearing before a lower appeals committee, but written or oral evidence which is submitted subsequent to a hearing in an appeals case may be considered by the appeals committee which afforded the hearing or on any subsequent appeal, if all the parties agree in writing to the consideration of such evidence, or if such evidence is presented in the course of a subsequent hearing which all parties have been afforded an opportunity to attend, or if such evidence has been requested by the Committee before which the appeal is pending. (k) Impartial appeals committees. Any person directly interested in the outcome of an appeal shall be disqualified from acting as a member of any appeals committee considering the appeal. (I) Committee attendance required for consideration of appeals cases. On the hearing of appeals by Regional or Area Management-Labor Committees or by Regional or Area Appeals Committees, an equal number of representatives of management and labor, respectively, shall be present and participate as voting members of the committee. (m) Interim appeals committees. At any appeals level for which a Management-Labor War Manpower Committee has not been appointed, appeals shall be taken to, and hearings shall be afforded before, an Appeals Committee in the locality composed of an equal number of representatives of management and labor (including agricultural representation, as provided in Section 906.6 (A)), selected APPENDICES 371 by the Regional or Area Manpower Director. A representative designated by the Regional or Area Manpower Director shall serve as the non-voting chairman of the Appeals Committee. (n) Inapplicability to special appeals. Nothing in this regulation shall be construed as applicable to actions taken or decisions rendered under War Manpower Commission Regulations Nos. 1 and 6, or Executive Order No. 9309, or to transfers between Executive departments or agencies of the Federal Government under Executive Order No. 9243. (o) Modification of other policies. The provisions of any prior War Manpower Commission policy, program, regulation or other direction, to the extent that they are inconsistent with this regulation, are hereby modified to conform with the provisions of this regulation. (Signed) PAUL V. MCNUTT, Chairman, War Manpower Commission. February 11, 1944. APPENDIX VI REPORTS AND RECOMMENDATIONS, OF THE MANAGEMENTLABOR POLICY COMMITTEE The reports which follow, issued on 31 October 1942, 30 December 1942,20 March 1943, 2 April 1943 and 9 April 1943, constitute the basic organisational memoranda prepared by the Management-Labor Policy Committee and submitted to the Chairman of the War Manpower Commission concerning the operation, responsibilities and membership of the National Committee itself. Discussion of their significance is found in Chapter II. INTERIM REPORT OF THE CHAIRMAN OF THE WAR MANPOWER COMMISSION SUBMITTED BY THE MANAGEMENT-LABOR POLICY COMMITTEE1 Pursuant to the request of the Chairman of the War Manpower Commission, the Management-Labor Policy Committee has been giving careful study to fundamental questions of policy that are involved in the consideration of National War Service Legislation. During this study, the Committee has conducted a comprehensive review of the national manpower and womanpower problems that have come before the Committee since it was established by order of the Chairman on May 25, 1942. Salient points of this review, together with certain conclusions and recommendations, are set forth herein. Part I — Review of Progress to Date. The Committee, composed of equal numbers representing management and organized labor, has worked diligently since its first meeting on June 9, 1942. Regular meetings have been held each week. At these meetings all major matters of War Manpower Commission policy have been carefully considered by the representatives of labor and management. The Committee members are gratified at the opportunity they have had and now have to participate in the development of policies and procedures involved in the manpower problem, matters that are vital to the war effort and to the lives of all people in the nation. Numerous major items of manpower policy have been acted upon by the Committee. It is a tribute to the democratic processes that the nation is defending to note that:, after full discussion and participation by the representatives of management and labor under the guidance of Government, all policies acted upon to date have been approved by unanimous agreement of the participants. The Chairman has seen fit to implement the policies approved by the Committee and has not approved any policy until it has been submitted to and approved by the Committee. Of the policies thus far developed, the War Manpower Employment Stabilization and Migration Control Policy is the most significant. This policy, together with other related policies and procedures, is established to 1 Dated 31 October 1942. APPENDICES 373 permit maximum utilization of the forces of cooperative action by Government, Management and Labor a t the national, regional and local industrial area levels. The Policy provides for the establishment of regional and local industrial area War Manpower Directors under direct line administration of the War Manpower Commission's Chairman, and for the aid and assistance b y regional and local industrial area War Manpower Committees composed of the representatives of labor and management. It seeks to bring about, a t the source and by voluntary action of those involved, the solutions to all manpower problems t h a t can be handled in this manner. The policy includes appropriate safeguards for action by Government where voluntary solutions are not forthcoming or where the problems do not lend themselves to local treatment. It can be applied to a local area, to a region comprising a number of states, or even to the nation on the basis of occupations or industries. T h a t much has been accomplished by these policies is apparent to the Committee. Numerous complicated and difficult problems in manpower have been dealt with. Others are under active consideration by representatives of Government, Labor and Management in such critical manpower areas as Los Angeles, San Francisco, Baltimore, Chicago, Cleveland, New York, Detroit, etc. Millions of workers have transferred voluntarily to more essential industries during the past two years. While most of this movement has been independent of direct Government guidance, the United States Employment Service, now a part of the War Manpower Commission, is currently guiding workers into jobs a t the rate of about 7.5 million per year. However, it is the considered opinion of the Committee that major weaknesses exist in the present approach to the overall manpower situation, weaknesses t h a t require immediate attention and correction, and which, if not corrected, will seriously impede the war effort. Part II — Outline of Immediate Requirements. I t is the Committee's understanding t h a t the present manpower program will require the services of a t least 62.5 million people, including the armed forces, by the end of 1943. The unemployed reserve, which has been decreasing since June, 1940, cannot be reduced much further. Increasing reliance must be placed on transference to more essential activities of workers now employed in the less essential activities. Even if the utmost in this regard is done, it is believed the nation will still be faced with the necessity of recruiting and training 5 million new workers in addition to the normal entrance of young people in the labor force. The great majority of these new workers of necessity will be women. All women without small children or other urgent household responsibilities will be needed and should prepare to enter employment. The situation is worse than these figures suggest because of the fact t h a t labor requirements are highly concentrated in a comparatively few war production centers. At the present time, several industrial centers are faced with a general shortage of labor and many additional areas expect a general shortage to develop before next summer. In a few areas, labor shortages are so acute that work essential to the support of the armed forces remains undone. Labor shortages are also highly concentrated by occupation. Critical shortages now exist in numerous occupations, including most of the skilled and semi-skilled jobs in shipbuilding, aircraft, and ordnance plants. The problem can be met only by prompt and vigorous action along several related lines. Losses of manpower from essential industries through needless migration and turnover must be stopped. Transference of labor from less essential to more essential activities must be accelerated. Additional labor supplies 374 LABOUR-MANAGEMENT CO-OPERATION IN THE U.S.A. must be mobilized, trained, and placed in employment. All workers must be fully employed at work requiring their highest skills. The complications incidental to a problem of such magnitude are stupendous. They can be overcome only by a higher degree of initiative, cooperation and unselfish service than the nation has ever known. After careful study of the situation, the Committee respectfully submits the following specific conclusions and recommendations for immediate consideration: 1. The manpower problem is an integral part of the process of mobilizing the entire nation for war, and must be considered in close conjunction with military and production planning. Decisions concerning the ultimate size and rate of growth of the armed forces must precede the formulation of detailed manpower policies. Conservation of the manpower resources requires that the available supply be apportioned between the military and essential civilian activities. The number, as well as the rate at which men are to be withdrawn from civilian activities for the armed forces, must be determined in the light of the overall demands upon the nation's supply of manpower. Therefore, in the belief that first things must come first, the Committee recommends that the authority and responsibility for the apportionment of manpower, as between the armed services and essential civilian activities, in short the formulation of the overall program, be centralized in the Chiefs of Staff of the Army and the Navy, the Lend-Lease Administrator, the Chairman of the War Production Board, and the Chairman of the War Manpower Commission. In addition, it is suggested that consideration be given to closer integration of the manpower and production programs. 2. Responsibility for administration of the manpower program has been placed in the War Manpower Commission. In order to carry out the program and satisfactorily discharge this responsibility, the War Manpower Commission must possess centralized authority sufficient to insure compliance with its established policies and operating programs. In this connection, the Committee believes critical weaknesses exist at present. (a) As the rate of induction is stepped up and employment increases, the supply of skilled and semi-skilled men must be most carefully distributed between the armed forces and industry in such manner that each individual may be placed where he can be of maximum use to the war effort. The Committee believes this will require a greater degree of integration with respect to deferment and replacement policies than is possible if the Selective Service System operates independently of the War Manpower Commission. It is desirable that the Selective Service System be made an integral part of the War Manpower Commission, and the Committee so recommends. In making this recommendation, the Committee is fully aware of the excellent job that is being done by the Selective Service System at all levels from the Director to the 6,500 local boards. However, it is increasingly evident to the Committee that centralized authority is essential to successful conduct of the manpower program. (6) Centralisation of authority over manpower must encompass the cessation of voluntary enlistment, which results in an uncontrolled flow of manpower from civilian employment into the armed forces. This flow has serious repercussions on vital production. Employers cannot anticipate enlistments and hence cannot plan for replacement. Skilled men leave essential industry without an evaluation of their relative contribution to the war as civilians or members of the armed forces. The Committee therefore recommends the cessation of voluntary enlistments. APPENDICES 375 (c) The armed forces are dependent upon an adequate supply of skilled men. The cessation of voluntary enlistments would require definite arrangements for supplying these men. The Committee therefore recommends t h a t this function be assigned to the Selective Service System, and that practices of the Selective Service System be revised in such manner as to permit the proper discharge of this duty through special draft calls. (d) The Committee believes that the training program for various branches of the armed forces, which are conducted in civilian establishments, can be coordinated with essential civilian training programs in such a manner as to increase the effectiveness of colleges and universities as the producers of vitally needed technical men. The Committee, therefore, recommends t h a t arrangements be made whereby these programs will be coordinated with civilian programs under general policies prescribed by the Chairman of the War Manpower Commission. (e) The administrative and operating organization and resources of the War Manpower Commission must be increased sufficiently to cope with the tremendous load of work required to handle the manpower program. Recent transfer of the United States Employment Service to the W a r Manpower Commission was a step in the right direction. The network of local employment offices, operating under direction of national, regional and area War Manpower Directors, can and should be made the primary clearance agency for the recruitment and employment of workers. However, this can not be accomplished unless Congress makes additional funds available to the Employment Service, and removes impediments t h a t have been placed in the way of effective Employment Service operations. The creation of a full and effective administrative and operating organization is one of the most important problems now confronting the War Manpower Commission. It is therefore recommended by the Committee t h a t strong and vigorous action be directed to this end immediately. 3. Successful prosecution of the war requires t h a t employers, employees, and potential employees alike, assume their full share of obligation in the manpower program. In its efforts to discharge its responsibilities, the War Manpower Commission is confronted with four major problems, the correction of which must fall largely upon industrial and agricultural management and labor, and upon those not now in employment or the armed forces, b u t who can render service. These problems concern the need t o : (a) Reduce the excessively high rate of labor turnover to vital war activities. (&) Eliminate the waste t h a t results from the needless shifting of large numbers of workers from one essential activity to another. (c) Remove the hesitancy of workers in non-essential activities to transfer into essential activities. (d) Accelerate the rate a t which those not presently employed b u t capable of performing essential service, are mobilized, trained and placed in employment. The Committee recommends t h a t the public a t large be fully informed as to these problems with the attendant obligations, and t h a t authority of the W a r Manpower Commission be extended sufficiently to assure the successful operation of plans t h a t can be p u t into effect under the Employment Stabilization and Migration Control Policy referred to in P a r t I of this report. 376 LABOUR-MANAGEMENT CO-OPERATION IN THE U.S.A. In summary of the immediate requirements, the Committee respectfully but urgently calls upon Government, Industry, Agriculture, and Labor for strong leadership, aggressive action and maximum cooperation to bring about the following: By Government. 1. Centralized authority and responsibility for determination of the overall manpower program. 2. Centralized authority and responsibility for the administration of the manpower program, which requires: (a) Transfer of the Selective Service System to the War Manpower Com« mission. (i) Cessation of voluntary enlistments. (c) Provision for special calls by the Army and Navy through the Selective Service System for men with specialized skills. (d) Coordination by the War Manpower Commission of military and civilian training programs conducted in non-military educational institutions. (e) Establishment of a strong administrative and operating organization for the War Manpower Commission. 3. Implementation of the War Manpower Employment Stabilization and Migration Control Policy by wide public distribution, and by extension of the War Manpower Commission's authority to regulate hiring, rehiring, solicitation, and recruitment in labor shortage areas. By Management and Labor. 1. Uniform acceptance of and compliance with the War Manpower Commission's policies and directives. 2. Elimination of wasteful labor turnover in civilian war activities. 3. Acceleration in the rate of transfer from non-essential to essential activities. 4. Acceleration in the rate of mobilizing, training and employing those who are presently unemployed but who are able to render service. 5. Maximum utilization of labor in a manner insuring maximum use of the skills and capacities of workers. 6. Accelerated rate at which men of the military age group, who are engaged in essential activities, can be released for service in the armed forces. 7. Elimination of all barriers, restrictions or obstructions incidental to successful accomplishment of points 1, 2, 3, 4, 5, and 6 above. Part III — Viewpoint of the Committee with respect to National War Service Legislation. The Chairman will recall that he appeared before the Management-Labor Policy Committee on August 14, 1942, and requested that the Committee proceed immediately to a full consideration of the fundamental questions of policy that must be solved as a prerequisite to the preparation of an appropriate National War Service Law. Accordingly, the Committee made arrangements whereby a sub-committee (composed of two representatives of labor, two representatives of management, and a sub-committee chairman representing Government) immediately undertook the discharge of this obligation. The Committee instructed this sub-committee to proceed jointly with a sub-committee of the War Manpower Commission which was already at work on the same project. APPENDICES 377 The study has proceeded as requested. To date, two progress reports have been returned to the full Management-Labor Policy Committee. These reports reveal the fact that unanimous agreement has been reached on some of the matters of fundamental policy, discussions of other points are not completed, and still other major problems have not yet been considered. Discussions of the Committee up to the present writing have served to acquaint the Committee with the magnitude of the manpower problem, to crystallize the recommendations outlined in Part II of this report, and to develop certain convictions that appear to be pertinent at this point. They are as follows: 1. The Committee recognized that in this time of national peril and world crisis, each individual person of or in this nation has a supreme moral obligation to render personal service in the war effort in such manner as his or her capabilities will permit. The Committee believes a great majority of the people of the nation fully recognize this obligation and stand ready to serve. 2. The Committee is convinced that sacrifice and unselfish service by all will be required to achieve success in the war effort. 3. The Committee doubts that conversion of the moral obligation to serve in the war effort, into a legal obligation to serve will of itself solve the manpower situation. The problems of administering the manpower program, as outlined in Part II of this report, must be solved and enactment of a law will not solve them. 4. The Committee has confidence that the voluntary and cooperative efforts of the people, under strong leadership on the part of Government, Management and Labor, will provide the answer to this all important war manpower problem. Experiences in the months which lie ahead may reveal that the Executive Branch of the Government requires supplementary authority from the Congress in order to carry forward the manpower program in an effective manner. The Committee therefore will continue the study requested by the Chairman and, in the light of accumulating experiences, will be prepared to make appropriate recommendations from time to time. R. Conrad Cooper, Management. Kenneth Gardner, Management. E. B. Dighridge, Management. R. E. Gillmer, Management. Frank P. Fenton, Labor. Clinton S. Golden, Labor. Joseph McDonagh, Labor. John Green, Labor. R. Randall Irwin, Management. Martin H. Miller, Labor. Julius G. Luhrsen, Labor. Walter P. Reuther, Labor. George Masterton, Labor. C. J. Whipple, Management. Arthur S. Flemming, Presiding Officer. RECOMMENDATIONS REGARDING THE MANAGEMENT-LABOR POLICY COMMITTEE OF THE WAR MANPOWER COMMISSION1 Executive Order No. 9279 which was, signed by the President of the United States on December 5, 1942 states in part: The Chairman shall appoint a Management-Labor Policy Committee to be selected from the fields of labor, agriculture, and industrial management, 1 Dated 30 December 1942. 378 LABOUR-MANAGEMENT CO-OPERATION IN THE U.S.A. and shall consult with the members thereof in carrying out his responsibilities. Members of the Committee are duly conscious of the trust thus placed in themThey recognize their responsibility as related to the national welfare and the war effort. It is their intention to assume this responsibility in a manner that will afford maximum assistance to the Chairman of the War Manpower Commission. To that end the Committee adopts specific rules of procedure which are set forth herein, and offers certain recommendations to the Chairman. The Committee believes that the importance of the manpower problem can not be over emphasized. The complications involved therein are tremendous. Close and continuous coordination of matters under consideration from time to time by the Chairman, the War Manpower Commission and the ManagementLabor Policy Committee is essential to enlightened decisions in minimum time. In order to afford maximum cooperation the Management-Labor Policy Committee adopts the following: Rules of Procedure I. Schedule of Meetings. Regular meetings of the Management-Labor Policy Committee will be held on Friday of each week from the hours of 10:00 a.m. and 2:00 p.m. Saturday forenoon will be held open for additional meetings as needed, for special meetings, and for meetings with the Chairman of the War Manpower Commission as arranged from time to time. II. Committee Member Attendance ai Meetings. Members of the Management-Labor Policy Committee shall consider themselves obligated to attend all regular Committee meetings and shall so arrange their personal affairs. The practice of alternates shall be discouraged except in cases where a principal member designates an alternate to attend regularly in his place. III. Continuous Day to Day Contact. The Management-Labor Policy Committee shall appoint a standing subcommittee thereof as follows: (a) The sub-committee shall be known as the Executive Committee. (6) The Executive Committee shall be composed of six members, two to be chosen from those representing labor, two to be chosen from those representing industrial management and two to be chosen from those representing agriculture. (c) Executive Committee appointees shall be designated by members of their respective groups and shall be subject to recall at any time by their designators. (d) Members of the Executive Committee shall arrange their affairs in a manner that will permit at least three members of the Executive Committee to be available, on hand or on call, at all times to serve the Chairman and the Executive Director of the War Manpower Commission. (e) The Executive Committee may be empowered to act in the name of the full Management-Labor Policy Committee on matters where, in the judgment of the full Management-Labor Policy Committee, the time factor so justifies: Provided that all six members proceed together as a unit and that they act only by unanimous agreement. APPENDICES IV. Agenda for Committee 379 Meetings. It is understood that meetings of the Management-Labor Policy Committee will be confined to an orderly program of subjects of which all Committee members have advance notice. Preparation of the agenda shall be governed by the following rules: (a) No subjects other than those that originate under Executive Order No. 9139 or Executive Order No. 9279 and which bear directly on the most effective mobilization and utilization of the national manpower shall be acted upon by the Committee. (6) Subjects first presented in one regular meeting will not be acted upon until the next regular meeting unless, in a particular situation the Committee members unanimously agree to waive the rule, or unless arrangement for action has been made by advance clearance through the Executive Committee. (c) The normal order of business shall be: 1. Unfinished business in executive session; Approve or amend and approve minutes of preceding meeting; Report of Committee Chairman; Report of Executive Committee; Report of other sub-committees; Committee action on unfinished matters. 2. New business in open session. V. Admissions to Meetings. (a) Executive Sessions shall be open only to the Chairman of the War Manpower Commission, the Deputy Chairman of the War Manpower Commission, members of the Management-Labor Policy Committee, the Committee Chairman, the Committee Executive Secretary and assistant, the Executive Director of the War Manpower Commission and the Chairman of the Women's Advisory Committee. (&) Open sessions shall be open to those eligible to attend executive sessions, such regular attending official observers as the Chairman of the War Manpower Commission may see fit to designate, and such special individuals as are invited from time to time through the Executive Secretary. Such invitations shall have advance approval by the Executive Committee, or by the full Management-Labor Policy Committee. VI. Transmittal of Resolutions and Recommendations. All resolutions and recommendations shall be transmitted to the Chairman in person, either by the full Management-Labor Policy Committee, by the Executive Committee, or by the Committee Chairman. In the event the Committee members do not concur in a unanimous recommendation on any given matter t h a t comes before them officially, the dissenting members shall prepare and submit to the Chairman of the War Manpower Commission, a dissenting opinion and minority recommendation if they so desire. The Committee believes that certain services and facilities are necessary to enable the satisfactory discharge of its obligations, and therefore recommends to the Chairman, provision of the following: 380 LABOUR-MANAGEMENT CO-OPERATION IN THE U.S.A. Services and Facilities 1. Chairman of the Management-Labor Policy Committee. The position in full charge of the relationships with the representatives of labor, industrial management and agriculture will require an individual with broad knowledge of the workings of government, and intimate acquaintance with the intricacies of the manpower problem. It will require an individual capable of commanding the complete respect and confidence of the Committee members. Under these circumstances it seems appropriate to request the Chairman of the War Manpower Commission to designate an individual subject to approval by the Committee. 2. Executive Secretary of the Management-Labor Policy Committee. The position in full charge of arrangements for committee meetings and all of the details incidental thereto will require an individual of unusual tact and secretarial ability. It will require an individual capable of commanding the complete respect and confidence of the committee members. Again under these circumstances it seems appropriate to request the Chairman of the War Manpower Commission to designate an individual subject to approval by the Committee. 3. Executive Committee Accommodations. In order to function effectively it is believed the Executive Committee will need: (a) An office for the representatives of labor, consisting of accommodations for the two Executive Committee members with one secretary, and conference space for the eight labor members. (6) An office for the representatives of Management, consisting of accommodations for the two Executive Committee members with one secretary, and conference space for the eight management members. (c) An office for the representatives of agriculture, consisting of accommodations for the two Executive Committee members and for one secretary. 4. General. It is recommended that the Executive Secretary and the Executive Committee members be located in offices as nearly adjoined as possible; that the Executive Secretary be supplied with adequate and competent stenographic, clerical and filing assistance; and that all four offices regularly receive copies of general orders, staff instructions, directives, press releases, etc., as they are issued from time to time. It is further suggested that, if the Chairman deems it appropriate, designation of the Executive Committee members as official observers at Commission and executive staff meetings would enable a better understanding and appreciation of the day to day problems as they arise. MEMORANDUM REGARDING THE MANAGEMENT-LABOR POLICY COMMITTEE OF THE WAR MANPOWER COMMISSION1 On May 25, 1942 Mr. Paul V. McNutt, Chairman of the War Manpower Commission, voluntarily issued an order to establish the Management-Labor Policy Committee. This order stated in part— 1 Dated 20 March 1943. APPENDICES 381 "There is hereby established in the Office of the Chairman of the Commission a Management-Labor Policy Committee consisting of seven representatives of Management and seven representatives from Organized Labor." " T h e Management-Labor Policy Committee is authorized to consider and recommend to the Chairman, matters of major policy concerning the activities and responsibilities of the Commission. The Committee shall initiate studies and the formulation of policies, as well as consider those referred to it by the Chairman." Appointments were made by Chairman McNutt, and the Committee convened shortly thereafter. During the ensuing months the Committee met a t regular intervals and considered all major policy matters of the Commission's manpower program. It is a fair statement to say that no major policies were put into effect without prior approval of the Committee, and that the Chairman has consistently followed the Committee's recommendations. Prior to December 1942 the Committee was enlarged to include two representatives of railway labor and two representatives of agriculture. On December 5, 1942 the President of the United States issued Executive Order No. 9279 "providing for the most effective mobilization and utilization of the National manpower " This Executive Order accomplished a number of points t h a t had been recommended by the Committee in its October 31, 1942 "Interim Report to the Chairman of the War Manpower Commission", including: 1. Centralized authority and responsibility for determination of the over-all manpower program. 2. Transfer of the Selective Service System to the War Manpower Commission. 3. Cessation of voluntary enlistments. 4. Coordination by the War Manpower Commission of military and civilian training programs conducted in non-military educational institutions. Among others, Executive Order No. 9279 included a provision to the effect that— "The Chairman shall appoint a Management-Labor Policy Committee to be selected from the fields of labor, agriculture, and industrial management, and shall consult with the members thereof in carrying out his responsibilities." Promptly thereafter Chairman M c N u t t reappointed the Committee members, and made certain additional and replacement appointments. On January 8, 1943, the Chairman issued Administrative Order No. 4 which, among others, included a provision to the effect that: " T h e Management-Labor Policy Committee shall consider such questions of major policy as are referred to it, and shall make, in writing or in consultation with the Chairman of the War Manpower Commission, specific recommendations as to the actions which, in its judgment, he should take. The Committee may also, on its own motion, make, in writing or in consultation with the Chairman of the W a r Manpower Commission, recommendations relative to policies which, in its judgment, should be put into operation by him." During the ensuing interval of time to date, the Committee met a t regular intervals and considered all new major policy matters of the Commission's manpower program. Again, it is a fair statement to say t h a t no major policies were p u t into effect without prior approval of the Committee, and that the Chairman has consistently followed the Committee's recommendations. * 382 LABOUR-MANAGEMENT CO-OPERATION IN THE U.S.A. There can be no doubt but that deliberations of the Management-Labor Policy Committee have had much constructive effect upon the manpower program. However, helpful as these efforts may have been, after some ten months of experience it is now definitely clear that the maximum force of full and complete cooperative effort of government, labor, agriculture, and industrial management has not yet been brought to bear on the manpower problem. By virtue of Executive Order No. 9279 above quoted, and the long demonstrated good faith intent of Chairman M c N u t t to utilize the council and cooperative efforts of labor, agriculture, and industrial management, the representatives thereof have an unprecedented opportunity to make an outstanding contribution to the public welfare during a time of national crisis. In order to bring about maximum contribution to the manpower program, certain actions should come to pass immediately. I t is believed by the Committee t h a t : 1. The Management Labor Policy Committee must be reconstituted in such manner as to afford appropriate proportional representation for labor, agriculture, and industrial management respectively. 2. Committee membership should consist of the recognized national spokesmen for labor, agriculture and industrial management, and must be confined to these spokesmen or to duly qualified and authorized representatives thereof, chosen by and closely identified with these recognized national spokesmen, such representatives to be enabled, empowered and obligated to devote whatever time may be required for Committee service. 3. Public relations policies of the War Manpower Commission and of the organizations of labor, agriculture, and industrial management must be established in such manner as to secure widespread public knowledge of the fact t h a t duly qualified representatives of labor, agriculture and industrial management actively participate in the formulation of War Manpower Commission policies. 4. Having participated in formulating War Manpower Commission policies, the national organizations of labor, agriculture, and industrial management must take vigorous action, through their respective organizations, to exercise their full influence in securing national compliance with and support of such War Manpower Commission policies. RECONSTITUTION OF M A N A G E M E N T - L A B O R POLICY COMMITTEE AS A D O P T E D BY S E V E N L E A D E R S OF AGRICULTURE, L A B O R AND INDUSTRIAL M A N A G E M E N T AND A C C E P T E D BY THE CHAIRMAN OF THE W A R M A N P O W E R COMMISSION 1 1. The Management-Labor Policy Committee of the War Manpower Commission shall be composed of three representatives of labor, three representatives of agriculture, and three representatives of industrial management. 2. From the field of labor, members of the Management-Labor Policy Committee shall be duly qualified and authorized representatives of labor, namely: Mr. William Green, President, A.F. of L. Mr. Philip Murray, President, C.I.O. A representative of the Railroad Brotherhoods is yet to be selected. 3. From the field of agriculture, members of the Management-Labor Policy Committee shall be duly qualified and authorized representatives of agriculture, namely : 1 Dated 20 March 1943. APPENDICES 383 Mr. Edward A. O'Neal, President American Farm Bureau Federation. Mr. Albert S. Goss, Master, National Grange. Mr. James G. Patton, President, National Farmers Union. 4. From the field of industrial management, members of the ManagementLabor Policy Committee shall be duly qualified and authorized representatives of industrial management, namely: Mr. Eric A. Johnston, President, U.S. Chamber of Commerce. Mr. Frederick C. Crawford, President, National Association of Manufacturers. Mr. R. Conrad Cooper, Assistant Vice President in Charge of Operations, Wheeling Steel Corporation. 5. Public relations policies of the represented organizations of Government, labor, agriculture, and industrial management shall be established in such manner as to secure widespread public knowledge of the fact that duly qualified representatives of labor, agriculture and industrial management actively participate in the formulation of policies of the War Manpower Commission. 6. The represented organizations of labor, agriculture, and industrial management shall take vigorous action through their respective organizations to exercise their full influence in securing national compliance with and support of the policies and programs approved by the Management-Labor Policy Committee of the War Manpower Commission. It was agreed that each of the nine members will have an alternate who will do the work. The alternates will be on hand most of the time. It was further agreed that: 1. The alternates shall reach a unanimous decision before presenting their decision to the War Manpower Commission, and that 2. If the alternates cannot reach a unanimous decision the principals shall be called in to see if they can reach a unanimous decision, and 3. In the event that the principals cannot agree, both a minority and a majority report shall be filed. R E V I E W R E P O R T OF THE MANAGEMENT-LABOR POLICY COMMITTEE 1 A. Reconstitution of the Management-Labor Policy Committee During Committee deliberations from February 26 to March 19, 1943 arrangements were made whereby, in order to enhance effectiveness of the Committee and to bring about full force of the voluntary cooperative efforts of Government, 1 abor, agriculture, and industrial management in the war manpower program, seven recognized national spokesmen of labor, agriculture and industrial management were brought together on March 20, 1943 to consider certain major problems in connection therewith. The seven recognized national spokesmen deliberated a t length and by unanimous agreement, submitted to Chairman Paul V. M c N u t t the following recommendations: 1. The Management-Labor Policy Committee of the War Manpower Commission shall be composed of three representatives of labor, three representatives of agriculture, and three representatives of industrial management; 'Dated 2 April 1943. 384 LABOUR-MANAGEMENT CO-OPERATION IN THE U.S.A. 2. From the field of labor, members of the Management-Labor Policy Committee shall be duly qualified and authorized representatives of labor, namely: Mr. William Green, President, A.F. of L. Mr. Philip Murray, President, C.I.O. A representative of the Railroad Brotherhoods is yet to be selected. 3. From the field of agriculture, members of the Management-Labor Policy Committee shall be duly qualified and authorized representatives of agriculture, namely: Mr. Edward A. O'Neal, President, American Farm Bureau Federation. Mr. Albert S. Goss, Master, National Grange. Mr. James G. Patton, President, National Farmers Union. 4. From the field of industrial management, members of the Management Labor Policy Committee shall be duly qualified and authorized representatives of industrial management, namely: Mr. Eric A. Johnston, President, U.S. Chamber of Commerce. Mr. Frederick C. Crawford, President, National Association of Manufacturers. Mr. R. Conrad Cooper, Assistant Vice President in Charge of Operations, Wheeling Steel Corporation. 5. Public relations policies of the represented organizations of Government, labor, agriculture, and industrial management shall be established in such manner as to secure widespread public knowledge of the fact t h a t duly qualified representatives of labor, agriculture and industrial management actively participate in the formulation of policies of the War Manpower Commission. 6. The represented organizations of labor, agriculture, and industrial management shall take vigorous action through their respective organizations to exercise their full influence in securing national compliance with and support of the policies and programs approved by the Management-Labor Policy Committee of the War Manpower Commission. It was agreed that each of the nine members will have an alternate who will do the work. The alternates will be on hand most of the time. It was further agreed t h a t : 1. The alternates shall reach a unanimous decision before presenting their decision to the War Manpower Commission, and t h a t 2. If the alternates cannot reach a unanimous decision the principals shall be called in to see if they can reach a unanimous decision, and 3. In the event t h a t the principals cannot agree, both a minority and a majority report shall be filed. Mr. M c N u t t promptly accepted these recommendations and put them into effect by issuance of Administrative Order No. 4 (revised), copy of which is attached. Confirming appointments of the above named members have gone forth, together with request t h a t nominations for the respective alternates be submitted for confirming appointment as soon as possible. To date the following alternates have been named: Mr. Paul Sifton, alternate agriculture member for Mr. James G. Patton. APPENDICES 385 B. Rules of Procedure On December 30, 1942 the Management-Labor Policy Committee adopted certain rules of procedure as follows: / . Schedule of Meetings. Regular meetings of the Management-Labor Policy Committee will be held on Friday of each week from the hours of 10:00 a.m. and 2:00 p.m. Saturday forenoon will be held open for additional meetings as needed, for special meetings, and for meetings with the Chairman of the War Manpower Commission as arranged from time to time. II. Committee Member Attendance at Meetings. Members of the Management-Labor Policy Committee or their alternates shall consider themselves obligated to attend all regular Committee meetings and shall so arrange their personal affairs. III. Continuous Day to Day Contact. The Management-Labor Policy Committee shall appoint a standing subcommittee thereof as follows: (a) The sub-committee shall be known as the Executive Committee. (b) The Executive Committee shall be composed of six members, two to be chosen from those representing labor, two to be chosen from those representing industrial management and two to be chosen from those representing agriculture. 1 (c) Executive Committee appointees shall be designated by members of their respective groups and shall be subject to recall a t any time by their designators. (¿) Members of the Executive Committee shall arrange their affairs in a manner t h a t will permit a t least three members of the Executive Committee to be available, on hand or on call, a t all times to serve the Chairman and the Executive Director of the War Manpower Commission. (e) The Executive Committee may be empowered to act in the name of the full Management-Labor Policy Committee on matters where, in the judgment of the full Management-Labor Policy Committee, the time factor so justifies: Provided that all six members proceed together as a unit and t h a t they act only by unanimous agreement. IV. Agenda for Committee Meetings. I t is understood t h a t meetings of the Management-Labor Policy Committee will be confined to an orderly program of subjects of which all Committee members have advance notice where possible. Preparation of the agenda shall be governed by the following rules: (a) No subjects other than those t h a t originate under Executive Order No. 9139 or Executive Order No. 9279 and which bear directly on the most effective mobilization and utilization of the national manpower shall be acted upon by the Committee. (i>) The order of business shall be: 1. Unfinished business in Executive Session; Approve or amend and approve minutes of preceding meeting; 1 Action deferred until appointment of railway member. 386 LABOUR-MANAGEMENT CO-OPERATION IN THE U.S.A. Report of Committee Chairman; Report of Executive Committee; Report of other sub-committees; Committee action on unfinished matters. 2. New business in Open Session. V. Admissions io Meetings. (a) Executive Sessions shall be open only to the Chairman of the War Manpower Commission, the Deputy Chairman of the War Manpower Commission, members of the Management-Labor Policy Committee, the Committee Chairman, vice Chairman, the Committee Executive Secretary and assistant, the Executive Director of the War Manpower Commission and the Chairman of the Women's Advisory Committee. (b) Open sessions shall be open to those eligible to attend executive sessions, such reg;ular attending official observers as the Chairman of the War Manpower Commission may see fit to designate, and such special individuals as are invited from time to time through the Executive Secretary. Such invitations shall have advance approval by the Executive Committee, or by the full Management-Labor Policy Committee. VI. Transmittal of Resolutions and Recommendations. All resolutions and recommendations shall be transmitted to the Chairman of the War Manpower Commission in accordance with Section 8 of Administrative Order No. 4 which reads as follows: .01 All decisions of the Committee, participated in b y alternate members, shall be reached by unanimous agreement. .02 When the Committee, in which alternate members are participating, fails to reach unanimous agreement the question shall be referred to a meeting of the members of the Committee. .03 Unanimous decisions of the Management-Labor Policy Committee shall be transmitted to the Chairman of the War Manpower Commission as "Policy Decisions" of the Committee. .04 Where the members of the Management-Labor Policy Committee fail to reach unanimous agreement, the chairman of the Committee shall report t h a t fact to the Chairman of the War Manpower Commission and shall transmit to him such reports as individual members or groups of members wish to make. Such reports shall be signed by the members agreeing to them. C. Sub-Committees On July 21, 1942 the Management-Labor Policy Committee established a standing Sub-Committee to counsel and advise the Training-within-Industry division. This Sub-Committee was composed of Messrs. Golden, Fenton, Gillmore and Irwin. On December 19, 1942 Mr. Gillmore withdrew from Committee service and no replacement has been designated as yet. Reconstitution of the Management-Labor Policy Committee automatically dissolves this Sub-Committee. Consequently consideration should be given as to whether or not the T.W.I. Sub-Committee is to be re-established. On December 30, 1942 the Management-Labor Policy Committee established a standing sub-committee known as the Executive Committee. The Executive Committee was composed of Messrs. Golden, Fenton, Sifton, Ogg, Irwin and Cooper. APPENDICES 387 Reconstitution of the Management-Labor Policy Committee automatically dissolves the Executive Committee. This matter is involved in " B " above. D. Unfinished Business of the Executive Committee 1. Review of the Anti-pirating Policy of the War Manpower Commission. (The Executive Committee conducted preliminary review; concluded the Antipirating Policy was superseded by the War Manpower Commission, February 1, 1943 "Policies for Employment Stabilization Programs which include the Exercise of Hiring Controls in Areas of Manpower Shortage"; and requested of the Executive Director t h a t the matter be reviewed by the Executive Staff.) 2. Review of the constituency of Management-Labor War Manpower Committees on regional and area levels, with special reference to proposal of the Women's Advisory Committee for representation thereon. Copy of the existing arrangement in this connection is attached. 3. Develop national policies, standards and safeguards in connection with the decentralized authority of Section 5 (a) and Section 7 of Executive Order No. 9279 (War Manpower Commission's February 1, 1943 "Policies for Employment Stabilization Programs which include the Exercise of Hiring Controls in Areas of Manpower Shortage"). 4. Develop proposal on labor standards (Workmen's Compensation, etc.). In view of the Committee's reconstitution, it is appropriate for the new Committee to determine what action it desires to take in connection with these items. REGIONAL AND INDUSTRIAL A R E A M A N A G E M E N T - L A B O R W A R MANPOWER COMMITTEES I. General The effective utilization of the nation's manpower necessitates the participation of management, labor and the public in the development of policies dealing with manpower. To facilitate this participation there has been established a t the national level a Management-Labor Policy Committee which initiates or reviews proposed policies and makes recommendations to the Chairman of the War Manpower Commission with respect thereto. The proper execution of the program and policies of the War Manpower Commission through the Regional and Industrial Area representatives of the War Manpower Commission requires the assistance of management and labor in effectuating such policies. There will be established in each region a Regional Management-Labor War Manpower Committee and such Industrial Area Management-Labor Committees as may be necessary. The selection of management and labor representatives on such committees will be so made that those chosen truly represent the point of view of their groups and will, as a result, be helpful in securing the cooperation of management and labor in the execution of the program and policies developed. / / . National Management-Labor Policy Committee In addition to the functions heretofore vested in the National ManagementLabor Policy Committee, that committee shall be authorized to review any recommendation of a Regional Management-Labor Committee and shall submit its advice with respect thereto to the Chairman of the W a r Manpower Commission. 388 LABOUR-MANAGEMENT CO-OPERATION IN THE U.S.A. III. Organization of Regional and Area Committees A. Regional Management-Labor War Manpower Committees. 1. Composition. The Regional Committees will be composed of: Two representatives of the American Federation of Labor. Two representatives of the Congress of Industrial Organizations. One representative of the Railway Labor Organizations. Five representatives of Management. The Regional Director of the War Manpower Commission shall be the nonvoting Chairman of the Regional Committee. 2. Selection. The Labor representatives of the National Management-Labor Policy Committee shall nominate a panel of individuals, recommended by such representatives as labor members of the Regional Committees. The Management representatives of the National Management-Labor Policy Committee shall nominate a panel of individuals recommended by such representatives as Management members of the Regional Committees. T h e National Management-Labor Policy Committee shall recommend a panel of individuals, consisting of an equal number of individuals from the panels nominated by the labor representatives and by the management representatives of the Committee, respectively, from which an equal number of management and labor members will be appointed to each Regional Management Committee by the Chairman of the War Manpower Commission. 3. Functions. The Regional Committees shall serve as consultants to the Regional Director within the scope of policies and instructions issued by the Chairman of the W a r Manpower Commission. In addition, and subject to such policies and instructions, each such Committee shall: (a) Advise the Regional Director as to methods for securing full participation by Industrial Area Committees; (6) Through its individual members, or as a Regional Committee, render assistance with respect to industrial area situations which are beyond the scope of a local committee or situations which require the participation of an impartial non-local representative; (c) Review recommendations of Industrial Area Committees for the purpose of making recommendations to the Regional Director regarding actions to be taken. B. Industrial Area Management-Labor War Manpower Committees. 1. Composition. The Industrial Area Committees shall be composed of: One or two representatives of the American Federation of Labor. One or two representatives of the Congress of Industrial Organizations. Two or four representatives of Management. The Area Director shall be the non-voting Chairman of the Industrial Area Committee. Where a transportation problem exists (other than local transportation), the Area Committee may be enlarged to include a representative of Railway Labor Organizations and a representative of Railroad Management. 2. Selection. The following procedure will be followed in selecting members: (a) The Regional Director shall, in writing, request the various industrial area employer associations or other appropriate groups to nominate the required number of representatives of employers engaged in essential APPENDICES 389 activities to serve as representatives of Management. If it is determined that there is need for a Railroad Management representative the Regional Director shall request Railroad Management to nominate an employer representative to serve on the Committee; (b) The Regional Director shall, in writing, request the local American Federation of Labor and the Congress of Industrial Organization's labor organizations to nominate the required number of individuals representing workers engaged in essential activities, to serve as representatives of Labor. If it is determined t h a t there is need for a Railway Labor Representative, the Regional Director shall request appropriate Railway Labor organizations to nominate a Labor representative to serve on the Committee; (e) From the nominations so submitted, the Regional Director shall appoint the Labor and Management representative of the Area Committee. 3. Alternative Composition and Selection, When in the judgment of the Regional Director the interest of the War Manpower program can be better served by a different composition or method of selection of either Management or Labor representatives, such other composition or method of selection may be adopted after consultation with the Regional Committee. 4. Functions. The Industrial Area Committee shall function on the basis of and within the scope of policies approved by the Chairman of the War Manpower Commission. The Industrial Area Committees shall be responsible for: (a) Obtaining local cooperation in effectuating the policies and program approved by the Chairman of the War Manpower Commission; (b) Obtaining the cooperation of local management and labor in the solution, on a local basis, of all manpower problems relating primarily to management, labor, or management and labor, such solutions to be within the framework of the policies and program approved by the Chairman of the War Manpower Commission; (c) Facilitating the work of the War Manpower Commission in effecting the orderly transfer of needed workers to essential activities; (d) Hearing complaints of individual workers or employers, or groups of workers or employers, concerning any section or failure to act by local representatives of governmental agencies which are carrying out any part of the program of the War Manpower Commission. The Committee shall make recommendations to the Industrial Area War Manpower Director concerning auch cases. R U L E S OF PROCEDURE A D O P T E D BY THE M A N A G E M E N T - L A B O R POLICY COMMITTEE 1 / . Schedule of Meetings. II. Committee Member Attendance at Meetings. Members of the Management-Labor Policy Committee or their alternates shall consider themselves obligated to attend all regular Committee meetings and shall so arrange their personal affairs. i Dated 9 April 1943. 390 LABOUR-MANAGEMENT CO-OPERATION IN THE U.S.A. / / / . Agenda for Committee Meetings. It is understood t h a t meetings of the Management-Labor Policy Committee will be confined to an orderly program of subjects of which all Committee members have advance notice where possible. Preparation of the agenda shall be governed by the following rules: (a) No subjects other than those t h a t originate under Executive Order No. 9139 or Executive Order No. 9279 and which bear directly on the most effective mobilization and utilization of the national manpower shall be acted upon by the Committee. (6) The order of business shall be: 1. Unfinished business; Approve or amend and approve minutes of preceding meeting; Report of Executive Director; Report of other sub-committees; Committee action on unfinished matters. 2. New business. IV. Admission to Meetings. (a) Executive sessions shall be open only to the Chairman of the War Manpower Commission, the Deputy Chairman of the War Manpower Commission, members of the Management-Labor Policy Committee, the Committee Chairman and Vice Chairman, the Committee Executive Secretary and assistant, the Executive Director of the War Manpower Commission, the Chairman of the Women's Advisory Committee, and the Executive Assistants to the representatives of labor, agriculture, and management unless otherwise ordered. (b) Open sessions shall be open to those eligible to attend executive sessions, such regular attending official observers as the Chairman of the War Manpower Commission may see fit to designate, and such special individuals as are invited from time to time through the Executive Secretary. V. Transmittal of Resolutions and Recommendations. All resolutions and recommendations shall be transmitted to the Chairman of the War Manpower Commission in accordance with Section 8 of Administrative Order No. 4 which reads as follows: ".01 All decisions of the Committee, participated in by alternate members, shall be reached by unanimous agreement. .02 When the Committee, in which alternate members are participating, fails to reach unanimous agreement the question shall be referred to a meeting of the members of the Committee. .03 Unanimous decisions of the Management-Labor Policy Committee shall be transmitted to the Chairman of the War Manpower Commission as 'Policy Decisions' of the Committee. .04 Where the members of the Management-Labor Policy Committee fail to reach unanimous agreement, the Chairman of the Committee shall report that fact to the Chairman of the War Manpower Commission and shall transmit to him such reports as individual members or groups of members wish to make. Such reports shall be signed by the members agreeing to them." APPENDIX VII RESOLUTIONS CONCERNING MANPOWER MOBILISATION ADOPTED BY T H E MANAGEMENT-LABOR POLICY COMMITTEE The basic statements adopted by the Committee on 6 November 1943, Z May 1944, and 6 September 1944, which summarised the positive proposals of the Committee in achieving voluntary manpower mobilisation, have been summarised in Chapter II, but warrant full publication as they reflect the constant view of the Committee on this basic question. RECOMMENDATIONS OF THE MANAGEMENT-LABOR POLICY COMMITTEE IN T H E W A R M A N P O W E R COMMISSION AND DECLARATION BY THE R E P R E S E N T A T I V E S OF LABOR, AGRICULTURE AND M A N A G E M E N T On July 20, 1943, the Chairman of the War Manpower Commission requested that the Management-Labor Policy Committee study the principles of National W a r Service Legislation by way of preparation should such legislation become necessary to the successful prosecution of the war. The Committee, composed of equal numbers representing labor, agriculture and industrial management, expressed unanimous opposition to such legislation but consented to proceed with the study and a t the same time explore all other possible ways and means by which the war manpower needs may be met. The Committee has proceeded with these studies as agreed. The members of the Committee desire now to submit to the Chairman their recommendations as to a program by which they believe the war manpower problem can be solved without National War Service Legislation. Statement The War Manpower Commission has done much to coordinate manpower matters. It has sought to enlist the full, voluntary, cooperative forces of labor, agriculture and management through the national Management-Labor Policy Committee and the regional and area Management-Labor War Manpower Committees. It has decentralized its administration in an effort to provide maximum latitude for the local solutions of manpower problems. Much progress has been made but it is evident that more is needed. The Committee recognizes t h a t : 1. Manpower still is being wasted through ineffective usages in some quarters through excessively high turnover in others, and through restrictive practices in others. 2. Large numbers of workers who should do so have not yet transferred into work necessary in time of war. 3. Vast unused manpower resources of longer hours of work, improved performance of workers, and employable women are still available. Some groups construe these conditions to mean t h a t the voluntary system is failing and that National War Service Legislation is necessary. Members of this Committee disagree with such conclusions. 392 LABOUR-MANAGEMENT CO-OPERATION IN THE U.S.A. The members of this Committee believe t h a t the people of this nation are unsurpassed in initiative, resourcefulness, and the will to do when their course is clear. They recognize t h a t under the American form of government with full play of initiative in the free enterprise system, the people of this country have established the greatest productive machine in history. They are opposed to National War Service Legislation in the unanimous belief t h a t compulsion in any form, whether by law or by administrative order, does not go to the heart of the problem. They believe the need goes beyond t h a t which can be secured by compulsion. They are coavinced t h a t : 1. The American people will provide greater output under a voluntary system than under one of compulsion and regimentation. 2. The present critical manpower situations are results of dislocation, maldistribution of contracts, and ineffective manpower utilization rather than of inadequate over-all supply of labor. 3. The solution depends upon leadership, coordinated and understood plans, and efficient administration, not upon broadened control and regulation. 4. Fully effective mobilization and utilization of the national manpower will be achieved: (a) When all agencies of government concerned with procurement, production and manpower are administered under a coordinated and well understood arrangement in which government defines the war needs, enunciates the fundamental policies or "rules of the game", confines itself to a minimum of control and administrative detail, and provides the maximum of real assistance to those who must do the work, namely, the people of this nation in each community: (6) When all of the people understand their personal obligations as related to the war needs; and know where and when to apply their services in such manner as best to aid in the war effort. These viewpoints are not new. They have long been urged by the Committee T h e Chairman of the War Manpower Commission has demonstrated that he holds similar views. The need then is to secure full support by all administrative agencies of government and the enlightened, complete, voluntary cooperation of the nation's people. Program The War Manpower Commission has had widespread and varied experiences with locally developed manpower programs under decentralized administration, and with controls of one form or another in various critical situations. In the opinion of the Committee, out of these experiences has emerged a practical approach t h a t is basic to the solution of any critical war manpower problem whether it be local or national in character. •> The elements of this approach constitute a basic outline of the program this Committee believes should be used to solve the war manpower needs. These elements are: 1. T h e facts as to manpower needs and available supply must be determined as accurately as is humanly possible. The War Manpower Commission must make these determinations in close cooperation with management and labor of any given area. 2. T h e relative urgency for products and services must be determined in each local area by the agencies of government responsible for procurement and pro- APPENDICES 393 duction. Such determinations must be made as close to the source as possible b y local representatives of those agencies acting together in close cooperation with the local representative of the War Manpower Commission within the framework of national policy. 3. T h e relative needs of employers for workers must be determined in each area. Such determinations must be made by local representatives of the War Manpower Commission in close cooperation with local representatives of procurement and production agencies of government with the counsel and advice of the Management-Labor War Manpower Committees. 4. The causes for failure to meet and maintain required employment levels in individual employing establishments must be identified, and wherever possible removed. To accomplish this the War Manpower Commission must secure and coordinate the full and cooperative efforts of employers, workers, the community and other government agencies. 5. The flow of available manpower must be guided to the points where it will contribute most to the war effort. In accordance with plans formulated with local Management-Labor War Manpower Committees, the War Manpower Commission must guide this flow of workers in any given area. 6. The volume of production allocated to or retained in any given area must be balanced with the ability to supply the necessary manpower. The coordinated agencies of government responsible for procurement, production and manpower should make such allocations. 7. All of these actions must be based on the initial conceptions that the agencies of government are to serve the people by informing them what has to be done, when and where it must be done, and t h a t the people of the nation are the ones to determine how it shall be done. Recommendations to Government In the opinion of the Committee, this program and other considerations require the agencies of government to take several related actions as promptly as possible. The Management-Labor Policy Committee therefore recommends to the Chairman of the War Manpower Commission: I. T h a t the Office of War Mobilization be called upon: (a) To conduct continuing reappraisal of the national production requirements as related to the total manpower resources of the nation in such manner as to make clear to the people the program required. (6) To intensify and accelerate its reappraisal of the organization and functions of governmental agencies responsible for the administration of procurement, production, and manpower matters to the end t h a t : (1) overlapping of agencies and jurisdictional interferences are finally removed as promptly as possible; (2) over-all plans and basic related policies are formulated at but one point of appropriate jurisdiction in such manner as to permit decentralized administration of manpower programs developed locally by the people of each community; and (3) needless administrative burdens and controls are removed as promptly as possible. II. T h a t the Chairman of the War Manpower Commission require review of the Selective Service System's regulations and procedures with such revisions as are necessary fully to establish the principles that— 394 LABOUR-MANAGEMENT CO-OPERATION IN THE U.S.A. (a) The first duty of a physically fit man in the military age group is to serve in the armed forces when needed, unless his service in a vital civilian activity is more necessary to war production or preservation of the basic civilian economy. (b) Selective: Service withdrawals from a state, county, or community shall be gauged and timed with the ability to effect replacements in activities necessary to war production or preservation of the basic civilian economy. I I I . T h a t the chairman of the War Manpower Commission recommend to the appropriate executive authority that a more comprehensive and effective review of the administrative agencies in the Federal Government be required to the end t h a t : (a) Those remaining persons in government service who can be released are made available to essential industries including agriculture. (b) The volume of government forms, reports and investigations are curtailed so t h a t the tremendous numbers of personnel now emgaged in preparing and reviewing such material can be transferred to useful work. IV. T h a t the War and Navy Departments be urged to continue their searching examinations of their manpower usages of enlisted and civilian personnel; and t h a t in the process they expedite the return to war production of those in the armed services who are over age or qualified only for limited service, and have special skills in essential activities. V. T h a t the governors of the states be called upon to initiate through existing agencies, publicity programs calculated to stimulate maximum community action in connection with production and manpower problems to the end t h a t : (a) The requirements and obligations incidental thereto be thoroughly understood by the people in each community; (b) The facilities and sources of potential manpower supply be recorded and reported accurately ; and (c) T h e major responsibility for solutions of production and manpower problems be placed in the hands of those best qualified to handle such responsibility, namely the appropriate local representatives of government, labor, agriculture and management who are in the community and are closest to its problems. Declaration The representatives of labor, agriculture, and management recognize the grave responsibility that rests upon them and those they represent to supply the effort required to produce and deliver the materials of war. They understand t h a t the people must rise to the occasion by developing and imposing such of their own solutions for performance and self-discipline within each community as the necessities of war require. Therefore, as the representatives of labor, agriculture, and industrial management, the members of the War Manpower Commission's Management-Labor Policy Committee mutually declare and pledge t h a t : 1. They will devote themselves whole-heartedly to promoting the production of the goods, the: food, and the services required by the war. 2. They will strive vigorously and exhaust every possibility to solve the nation's manpower problems through voluntary, cooperative action in every industry and every area. 3. They will call upon local management, labor and agriculture to attack man- 395 APPENDICES power and production problems, community by community and plant by plant, in cooperation with the appropriate agencies. 4. They will attack vigorously the basic causes of excessive turnover in essential activities through: (a) Cooperation with the communities and the state and federal governments in providing suitable housing, transportation, shopping, child care, and other necessary facilities and services. (6) Provision and expansion of sound, adequate and satisfactory wage, hour and other conditions of employment. (c) Active participation in the local development and enforcement of employment stabilization and control programs. 5. They will take all possible steps to assure the maximum utilization of manpower engaged in war activities through: (a) Reduction of absenteeism to the lowest possible level. (6) Maintenance of regularized production schedules as far as possible consistent with strategic requirements. (c) Continued efforts to eliminate manpower hoarding and restrictive practices which preclude the highest possible per man-hour output. (d) Improvement of performance by adoption of appropriate measures designed to increase the effective per manhour output of workers. (e) Upgrading workers in such manner as to make full use of their highest skills t h a t are needed in the war effort. (f) Continued development within each plant or establishment of systems of training and improvement of the skills of workers. (g) Adoption of such maximum daily and weekly hours of work as may be required to meet production schedules and as are consistent with good health and sustained performance. 6. They will take all possible steps to assure the maximum utilization of potential manpower reserves not now engaged in necessary war activities in each community, through: (a) Continued and accelerated recruitment of women to augment the labor force and to replace, wherever practicable, men who are needed elsewhere. (6) Encouraging and facilitating the transfer of workers into essential war and locally needed activities. (c) Enlisting every possible source of new labor in manpower shortage areas. November ó, 1943. For Labor: For Agriculture: For Management: H. W. Fraser Albert S. Goss R. Conrad Cooper William Green Edward A. O'Neal Frederick C. Crawford Philip Murray James G. Patton Eric A. Johnston R E S O L U T I O N : M A N A G E M E N T - L A B O R POLICY COMMITTEE 1 The members of the Management-Labor Policy Committee reaffirm their conviction t h a t the nation's manpower needs can best be met under manpower programs voluntarily developed and adopted by the representatives of agriculture, labor, and management. 1 Dated 2 May 1944. 396 LABOUR-MANAGEMENT CO-OPERATION IN THE U.S.A. The Committee recognizes the ever-increasing demands of the armed services for more manpower and for greater production. To meet these demands will require the most efficient mobilization and utilization of the nation's manpower resources. The Committee is convinced that if the manpower program resources presently available are fully utilized the critical labor needs of the nation can be met under the present voluntary local approach. The Management-Labor Policy Committee therefore makes the following recommendations to the Chairman of the War Manpower Commission: 1. T h a t he call upon all Regional and Area Directors to take a fresh look a t the manpower programs in effect in their respective areas tc determine whether any additional measures might be taken to make the voluntary plan more effective. 2. T h a t Regional and Area Directors be requested to review with their Management-Labor Committees their present manpower programs, in the light of new conditions, and to give special attention to means by which their present programs may be strengthened through voluntary adoption or extension of controlled referral plans and other proven methods to furnish essential activities with an adequate supply of male workers. 3. T h a t employment Stabilization Regulation No. 7 be amended so t h a t controlled referral plans providing for the guided placement of all male workers may be put into effect in any area as needed a t the option of the Regional Manpower Director, after consultation with the Management-Labor War Manpower Committees. T h e Management-Labor Policy Committee calls upon all representatives of management, labor, and agriculture on Regional and Area Manpower Committees to work in closest cooperation with the Regional and Area Manpower Directors to make certain that nothing is left undone to meet the exacting requirements of the critical months ahead. The test of the voluntary system will be the capacity of management, labor, and agriculture to strengthen and extend existing community programs so as to meet these urgent needs. STATEMENT AND RECOMMENDATIONS OF THE M A N A G E M E N T - L A B O R POLICY COMMITTEE I N THE W A R M A N P O W E R COMMISSION Throughout the period of its existence the Management-Labor Policy Committee has sponsored efforts by the War Manpower Commission to solve the manpower problem through voluntary cooperative efforts of the people in each local area or community. As stated in its report of November 6, 1943, the Committee believes t h a t : "All of these actions must be based on the initial conceptions t h a t the agencies of government are to serve the people by informing them what has to be done, when and where it must be done, and that the people of the nation are the ones to determine how it shall be done." The Committee observes with satisfaction the general acceptance of its recommendations in favor of such an approach by the War Manpower Commission. The progress of our armed forces, dependent as they are on material supply, attests the overall effectiveness of this approach. On August 4, 1944, the Director of War Mobilization, James F . Byrnes, issued a manpower directive, and a statement which said in part: APPENDICES 397 "Several days ago I was advised by the procurement agencies that a shortage was developing in the production of certain vital war materials." "For the few programs in which production is now critically short and urgently needed, the facts warrant courageous action quickly to get for the Army and Navy these heavy guns and ammunitions, bombs, radar equipment, trucks, tanks, construction equipment, tires, and tentage fabric for L o u s i n g t i l e t r o o p s m a t i n g ike r a p i d a d v a n c e s wriicil o u r services a r e malang all oyer the world." "These are some of the items which are required by an expanding army on a vigorous offensive. These shortages do not tell the whole story but they are the critical ones which demand the immediate attention of government and the people." "There is a public psychology in this country that the end of the war is near at hand. No man knows when the war will end. We must produce until the last shot is fired." "People want to leave their jobs in war plants in order to get back to civilian business. If the present exodus from war plants continues, it is going to interfere seriously with the possibility of an early end of the war." Thus, in that directive and the related statement, Mr. Byrnes, representing government, took action to tell the people of the nation "what has to be done and when and where it must be done." The members of the War Manpower Commission's Management-Labor Policy Committee urge the full forces of labor, agriculture, and management to meet the needs of the situation at the earliest possible date. To that end, the Committee makes the following recommendations as to "how it shall be done." I. War Mobilization Members of the Committee are aware that certain apprehensions have arisen in labor, agriculture, and management over references to sanctions and enforcement in the August 4,1944 directive of the Office of War Mobilization. The Committee notes that the directive is accompanied by such statements as the following: "The responsibility for manning our war plants is clear and unmistakable and it rests with the communities. The communities must meet the responsibility if we are to be able to finish the war without enacting a Universal Service Law. Those at home must work as hard as those abroad are fighting. I will arrange for instructions to the local committees to enlist the aid of all citizens and workers in not only those war industries, but in civilian industries as well, to meet their own local needs quickly." Although the use of sanctions to enforce compliance is included in the directive, the Committee is informed that: (a) Teamwork and voluntary cooperative efforts are the objectives sought in the directive of August 4, 1944. (6) The Director of War Mobilization has no intention to discard the voluntary system and substitute one of compulsion. (c) The inclusion of sanctions is intended only to insure that the voluntary and cooperative efforts of the vast majority will not he dissipated by the few who refuse to cooperate. 398 LABOUR-MANAGEMENT CO-OPERATION IN THE U.S.A. (¿) Even if ¡sanctions are applicable under the directive, they are not to be applied except as a last resort if, when, and where all efforts at persuasion have failed, and even then only after careful review by the Chairman. Nevertheless, it is an established fact that misgivings over the possible use of sanctions exist in the minds of responsible leaders in labor, agriculture, and management. Unless such misunderstanding is corrected it will react to the detriment of the manpower program. Therefore, the Committee recommends to the Chairman that he request the Office of War Mobilization to clarify the situation and, thereby remove this impediment. II. War Manpower Commission Members of the Committee are convinced that a substantial contribution can be made to the solution of the remaining critical manpower problems if it is made clear to all those responsible for their solution that it is the continued purpose of the War Manpower Commission to place its chief reliance on their voluntary cooperative efforts to see that the job is done. The Committee realizes that a critical manpower shortage in a given area or a given vital war industry is a national problem, and therefore that certain basic national policies are necessary in the common interests. In any "critically short" and "urgently needed" production program the national interest requires the removal of any obstacles to the meeting of the urgent needs of our fighters. At the same time in order to allay whatever fears may exist in the minds of people in labor, agriculture, and management that war manpower controls might be continued after the period of their wartime necessity has passed, the Committee recommends to the Chairman of the War Manpower Commission that prompt action be: taken: (a) by the Executive Director and his administrative staff to remove all policies, programs, regulations, orders, and procedures not now necessary to meet the war manpower requirements; (b) by all Regional and Area Directors and Management-Labor War Manpower Committees to remove all regional and area programs and procedures not now necessary to meet the war manpower requirements of the respective regions and areas; and (c) by the Chairman to inform the public that such simplification plans are underway. In the opinion of the Committee those actions are needed at this time in order to remove interferences, to correct the growing misapprehension as to duration of controls, and thereby to intensify local initiative and voluntary efforts to meet the: critical war manpower needs. III. Regional and Area Management-Labor War Manpower Committees Members of all Management-Labor War Manpower Committees now face the most critical manpower problems in the period of their association with the War Manpower Commission. As the designated representatives of labor, agriculture, and management, their immediate responsibility is to bring about in each region and area such local initiative and voluntary cooperative effort as may be required to: (a) Recruit t'iie necessary manpower for vital war production plants now behind schedule in the area or region. 399 APPENDICES (6) Retain on the job the manpower necessary to maintain production schedules of vital war production plants now up to schedule in the area or region. (c) Recruit for transfer the quota of manpower required for vital war production in other areas or regions. (d) Prepare for the resumption of civilian production in areas or regions where available manpower is not needed for vital war production. Specifically, the Committee recommends to all Regional and Area Labor War Manpower Committees that they: Management- (a) Cooperate fully with the Regional and Area Directors in their endeavors to meet the needs of the situation. (6) Exert their maximum of initiative and cooperative efforts to develop ways and means particularly adaptable to the specific problems of the individual area or region. (c) Acquaint themselves, through close contact and joint meetings with the respective Production Urgency and Manpower Priorities Committees, with the precise needs of the area or region. (d) Call upon employers, employees, and their representatives in less essential activities in the area or region, to carry out vigorously programs of their own making designed to bring about the voluntary transfer of the necessary workers, and to meet the continuing needs of the local situation. IV. To the Represented Organizations of Labor, Agriculture, and Management T h e members of the Committee from the American Federation of Labor, the Congress of Industrial Organizations, the Railway Labor Unions, the American Farm Bureau Federation, the National Grange, the National Farmers Union, the United States Chamber of Commerce, and the National Association of Manufacturers, recommend to those organisations that they take action through their respective agencies to: (a) Acquaint those they represent with the critical needs of the situation. (6) Urge those they represent to exert every possible effort to meet the needs of the situation through voluntary cooperative efforts. (c) Make clear to those they represent t h a t a solution of the problem is necessary to an early military victory, the return to civilian life of those in the armed services, and the resumption of normal civilian life for all people of the nation. The members of the Committee are well aware t h a t sacrifice and unselfish service will be required before that objective will be reached, b u t as the Director of War Mobilization has said: "We have the enemy on the ropes; he is dazed and his knees are buckling. This is no time to take a holiday and give him time to recover. It is time to finish the job. We cannot let down our men in the armed services." September 6, 1044. For Labor: For Agriculture: For Management: H. W. Fraser Albert S. Goss R. Conrad Cooper William Green Edward A. O'Neal Frederick C. Crawford Philip Murray James G. Patton Eric A. Johnston APPENDIX Vili GENERAL ADMINISTRATIVE ORDER RELATING TO LABOR ADVISORY COMMITTEES The Chairman of the War Production Board, on 10 June 1944, issued General Administrative Order No. 2-160 outlining the rules for the establishment and functions of Labor Advisory Committees. This text, referred to in Chapter X, is given in full since it constitutes the formal establishment within the War Production Board of the Committees concerned with labour problems in individual industries. LABOR ADVISORY COMMITTEES1 Section 1. Purpose. .01 It is the purpose of this order to prescribe the rules governing the establishment and use of Labor Advisory Committees. Section 2. Policy. .01 It is the policy of the War Production Board, through the medium of Labor Advisory Committees, to secure the assistance of labor in the solution of production problems and to promote maximum cooperation between the Government and labor in the formulation and execution of official programs. Section 3. Responsibility of War Production Board Officers. .01 The Vice Chairman for Labor Production and the Vice Chairman for Manpower Requirements shall, in consultation with the appropriate other Vice Chairmen, jointly establish the plans, policies, and general methods to guide the industry divisions in discharging their functions with regard to the use of Labor Advisory Committees. .02 There is hereby established in the Office of Labor Production an Office of Labor Advisory Committees, the functions of which shall be exercised by a representative of the Office of Labor Production and a representative of the Office of Manpower Requirements. The Office of Labor Advisory Committees shall assist in establishing policies to govern activities of Labor Advisory Committees and in servicing Committee operations. Section 4. Functions of Labor Advisory Committees. .01 Labor Advisory Committees shall perform the following functions: 1. Discuss problems affecting the industry represented by the Committee which are pertinent to the War Production Board program at meetings duly called in accordance with this order; 2. Furnish information, render assistance, and make reports and recommendations to the appropriate officers of the War Production Board; and 1 Dated 10 June 1944. APPENDICES 401 3. Review and make recommendations on proposed War Production Board orders and programs as provided in Section 5 of this order. Section 5. Clearance of Orders and Programs. .01 Whenever any proposed War Production Board order or program would, in the judgment of the Vice Chairman for Labor Production or the Vice Chairman for Manpower Requirements, result in a substantial curtailment, expansion, or other change in the rate of operations of an industry affecting labor, such Vice Chairman may recommend to the director of the industry division sponsoring the proposal consultation with the appropriate Labor Advisory Committee. After concurrence by the division director, the appropriate division labor assistant shall make arrangements for consultation with such Labor Advisory Committee as soon as practicable in the development of the order or program. Section 6. Formation of New Labor Advisory Committees. .01 Any division labor assistant of an industry division may propose the establishment of a Labor Advisory Committee by submitting to the Office of Labor Advisory Committees, after approval by the division director, a memorandum setting forth recommendations with regard to : 1. The purposes for which the Labor Advisory Committee is to be established; 2. The proposed composition of the Committee; and 3. The date and time of the first meeting of the Committee and the Government representatives to be notified of the meeting. .02 The Office of Labor Advisory Committees shall review the recommendation of the division labor assistant for the establishment of a Labor Advisory Committee and, if it agrees, shall establish the composition of the Committee and state its approval in writing setting forth the name and address, union affiliation, and position held, if any, of each Committee member. .03 The Office of Labor Advisory Committee shall advise the appropriate Vice Chairman, the Office of Industry Advisory Committees, the Vice Chairman for Labor Production, the Vice Chairman for Manpower Requirements, and the appropriate division directors as to the establishment of each Committee. .04 The Office of Labor Advisory Committees is authorized to fill vacancies occurring on existing Committees. .05 The appropriate division director shall appoint all Government presiding officers of Labor Advisory Committees. Section 7. Meetings of Labor Advisory Committees. .01 Meetings of Labor Advisory Committees may be called at the request of the Government presiding officer or the Office of Labor Advisory Committees, with the approval of the division director. Members of a Labor Advisory Committee who wish to suggest a meeting shall address their request to the appropriate division labor assistant or Government presiding officer. Such request shall be accompanied by a proposed agenda showing the purpose of the meeting. .02 The division labor assistant of the appropriate industry division (or the Government presiding officer acting for him) shall inform the Office of Labor Advisory Committees of proposed meetings and shall furnish a carefully considered agenda and the list of persons to whom invitations shall be extended. .03 The Office of Labor Advisory Committees shall make all necessary arrangements for holding meetings, including sending invitations and notices, 402 LABOUR-MANAGEMENT CO-OPERATION IN THE U.S.A. etc. A copy of the agenda shall be sent to each Committee member together with the notice of the meetings. .04 All regular meetings of a Committee shall be held in Washington under the supervision of the Government presiding officer, except that a Committee may be authorized by the Government presiding officer to meet outside of Washington, without the Government presiding officer present, if the purpose of the meeting is solely to formulate a report requested by the Government presiding officer. The Office of Labor Advisory Committees shall be responsible for keeping minutes of each meeting, and shall determine the form and distribution of such minutes. Section 8. General. .01 The Government presiding officer may appoint special sub-committees of a Labor Advisory Committee in order to deal with technical or special problems of concern to labor, or with problems affecting only a segment of the industry represented by the Committee. .02 A Labor Advisory Committee shall not take any action as a Committee except in accordance with the provision of this order. Any action beyond the scope of this order shall be deemed to be action taken by the individuals making up the Committee in their private capacity. .03 All publicity in connection with meetings shall be released through the Division of Information. .04 The War Production Board will not pay compensation to or any expenses of Committee members. .05 The term "division labor assistant" as used in this order means the Assistant Director for Labor or other official designated to perform labor production and/or manpower requirement functions in th particular industry division in accordance with the provisions of General Administrative Orders 2-112 and 2-113. Section 9. Effective Date. .01 This order is effective June 10, 1944. DONALD M. NELSON, Chairman. APPENDIX IX TYPICAL BY-LAWS OF AN AREA COUNCIL OF LABOR-MANAGEMENT COMMITTEES The following text of a set of by-laws to govern an area council of labor-management committees, referred to in Chapter XIV, is given as a typical example of the functions and purposes of such councils. B Y - L A W S SUBMITTED BY THE TEMPORARY E X E C U T I V E B O A R D FOR A P P R O V A L BY THE M E M B E R S OF THE A R E A COUNCIL OF L A B O R - M A N A G E M E N T COMMITTEES FOR METROPOLITAN N E W YORK Section I. Name: The name of this organization shall be the "Area Council of Labor-Management Committees for Metropolitan New York". Section II. Purpose: The purpose of this organization shall be to aid in the effective prosecution of the war and to study and make proposals relating to reconversion and post-war problems. To these ends, it will — 1. seek to increase the effectiveness of existing plant Labor-Management Committees ; 2. in cooperation with other agencies, assist Management and Labor in establishing Committees in plants where they do not yet exist; 3. find solutions by joint effort and action for those community-wide problems affecting production and labor utilization which cannot be solved by individual plant Committee action ; 4. engage in such other activities involving joint action by Labor and Management as shall be deemed appropriate. Section I I I . Membership: All joint Labor-Management War Production Drive Committees in the Metropolitan New York area, will be eligible for membership in the Council. Each member Committee shall have two delegates to the Council. These delegates must be members of, and will be selected by, the top Labor-Management Committee of their respective plants. One of them must be from the Labor half and the other from the Management half of their Committee. Section IV. Meetings: General membership meetings of the Council shall be held quarterly and special meetings called when deemed necessary by a majority vote of the Executive Board. A quorum shall be necessary only when financial matters are to be considered. Representation from twenty-five per cent, of the member plants of the Council shall constitute a quorum and a majority vote shall be necessary to carry or defeat a motion. Section V. Officers: The officers' of the Council will be a Chairman, a Co-Chairman, a Secretary and a Treasurer. The Chairman shall be the nominee receiving the highest number of votes of the Executive Board. Should the Chairman be a Management representative, then the Co-Chairman shall be the Labor representative receiving the highest number of votes and vice versa. The tenure of 404 LABOUR-MANAGEMENT CO-OPERATION IN THE U.S.A. office shall be for one year. No one officer may hold a particular office for more than two successive terms. All officers must be delegates to the Council. Two of the officers must be Labor delegates and the other two must be Management delegates. All of the officers must be delegates of Labor-Management Committees from different plants. The duties of the officers will be the usual ones of their respective offices. The Co-Chairman will act in all capacities in the absence of the Chairman. The: Chairman will preside a t meetings of both the Council and the Executive Board and the Secretary will keep the minutes of both the Council and the Executive Board. Section VI. Executive Board: The Executive Board of the Council will consist of fourteen members elected from the delegates a t large, seven of whom must be Labor delegates and seven Management delegates. The four officers shall be elected by the Executive Board in the manner prescribed in Section V of these By-Laws. AH members of the Executive Board must be delegates of LaborManagement Committees. The tenure of office for Executive Board members will be one year. The Executive Board will meet the first and third Tuesdays of each month and on the call of the Chairman a n d / o r the Co-Chairman. A quorum for meetings of the Executive Board will carry on the functions of the Council between meetings of the Council. A minimum of eight members shall constitute a quorum of the Executive Board. Section V I I . Elections: Elections of Board members will be held a t the last quarterly meeting in November. One month prior to the election meeting the Executive Board will appoint a Nominating Committee to prepare a slate of nominations. This Nominating Committee shall prepare a list of eighteen names, nine representing Labor and nine Management, to which nominations may be added from the floor a t the election meeting. Candidates for the Executive Board must be delegates to the Council a t the time of their election. A t the election meeting, delegates will vote for nine Management and nine Labor delegates to the Executive Board. Provision shall be made on the ballots for writing in names of additional candidates nominated from the floor. The Executive Board will consist of the seven Labor and seven Management representatives receiving the largest number of votes respectively, and four alternates, two from Management and two from Labor receiving the next largest number of votes respectively. The alternates are to serve on the Executive Board only in the event of a permanent vacancy, so t h a t the membership of the Executive Board shall be n o t less nor more than seven members each from Management and Labor. Section V I I I . Vacancies: All vacancies occurring on. the Executive Board will be filled a t the next regular meeting of the Council following the occasion of the vacancy in the manner prescribed in Sections VI and VII of these By-Laws. All vacancies occurring among the officers will be filled a t the next meeting of the Executive Board in the manner prescribed in Section V of these By-Laws. All members of the Executive Board must be notified in advance of the meeting date in the event of any vacancy to be filled. Delegates and officers elected to fill such vacancies will hold office for the balance of the unexpired term. In the event of more than two vacancies among the Labor or Management members of the Executive Board, temporary appropriate appointments will be made by a majority vote of the full remaining membership of the Executive Board. Permanent appointments to such vacancies will be made a t the next regular meeting of the Council following the occasion of the vacancy, by ratification of the appointment or the holding of an election as prescribed in Section VII of the By-Laws. APPENDICES 405 Section IX. Finances: (Please see attached report of Budget Sub-Committee. It is suggested that the Executive Board be authorized to administer the funds of the Council in accordance with the report of the Budget Sub-Committee and the By-Laws of the Council as approved by the membership; and to submit financial reports at the regular quarterly meetings). Section X. Amendments: A proposed amendment to these By-Laws may be submitted by any delegate at a regular Council meeting. The proposed amendment will be adopted or rejected by majority vote at the next regular Council meeting. Notice of the proposed amendment must be included in the notice of the meeting at which action will be taken on said amendment. BIBLIOGRAPHICAL NOTE At the time of the preparation of this study, little information was available for public reference concerning wartime experience in the United States of methods for ensuring the participation of labour and management representatives in manpower and production organisation. It is not possible, therefore, to give a bibliography of source material or secondary histories, but references to such published or quotable material as has been used are given in footnotes. Since completion of the study, however, a number of publications bearing directly on the subject have been released. While these could not be taken into account in the text, it may be useful to call attention to the most recently published official history: Industrial Mobilization for War: History of the War Production Board and Predecessor Agencies, 1940-1945. Volume I: Program and Administration. This volume, published by the Bureau of Demobilization of the Civilian Production Administration of the United States in the series "Historical Reports on War Administration", contains, in addition to a complete account of the War Production Board, an invaluable list of official records and historical reports, and provides an authoritative guide to the history and sources of many of the developments dealt with somewhat summarily in the International Labour Office study. The student who wishes for greater detail on many of the questions raised is therefore referred to the above-mentioned volume. Similar published histories are unfortunately not yet available for the other war agencies, although manuscript material may now be consulted in Washington. PUBLICATIONS OF THE INTERNATIONAL LABOUR OFFICE RECENT STUDIES The War and Women's Employment, Studies and Reports, New Series, No. 1 An account of the impact of the War of 1939-45 on the employment of women in the United Kingdom and the United States, describing in detail the expansion which took place in the use of women's services in both countries, particularly in industry. 287 pages Price: $1.50; 6s. Wartime Labour Conditions and Reconstruction Planning in India, Studies and Reports, New Series, No. 2 A brief presentation of information on wartime conditions and on plans for social and economic improvement after the war, published in connection with the Preparatory Asian Regional Conference which met in New Delhi, OctoberNovember 1947. 113 pages Price: 50 cents; 2s. 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Employment, Unemployment and Labour Force Statistics, Studies and Reports, New Series, No. 7, Part 1. 130 pages Price: 75 cents; 3s.9d. Cost-of-Living Statistics, Studies and Reports, New Series, No. 7, Part 2 58 pages Price: 55 cents; ls.6d. Methods of Statistics of Industrial Injuries, Studies and Reports, New Series, No. 7, Part 3 34 pages Price: 25 cents; Is. The Sixth International Conference of Labour Statisticians, Studies and Reports, New Series, No. 7, Part 4 About 89 pages Price: 50 cents; 2s.6d. Reports prepared for the Sixth International Conference of Labour Statisticians (Montreal, 1947); part 4 contains the proceedings of the Conference and the resolutions adopted. PUBLICATIONS OF THE INTERNATIONAL LABOUR OFFICE INDUSTRIAL RELATIONS (Report VII (1) prepared for the 31st Session of the International Labour Conference) Presents an analysis of the law and practice in the different countries ami a questionnaire addressed to Governments with a view to drawing up the list of points for discussion by the Conference. CONTENTS PREFACE. Part I. Application of the Principles of the Right to Organise and to Bargain Collectively 1. Mutual Recognition of Organisation — 2. Statutory Protection of the Right to Organise and to Bargain Collectively — 3. Protection of Freedom of Association of Employers and Third Parties — 4. The Problem of "Union Security" — 5. Supervision and Sanctions — Conclusions — Questionnaire. Part II. Collective Agreements 1. Collective Bargaining Machinery — 2. Regulation of Collective Agreements — 3. Extension of Collective Agreements — 4. Methods of Enforcing Collective Agreements — 5. Supervision of Application of Collective Agreements — Conclusions — Questionnaire. Part III. Conciliation and Arbitration 1. Voluntary Conciliation and Arbitration — 2. Temporary Legal Restrictions of Strikes and Lockouts — 3. Compulsory Conciliation and Arbitration — Conclusions — Questionnaire. Part IV. Co-operation between Public Authorities and Employers' and Workers' Organisations INTRODUCTION. Chapter I. Co-operation at the Level of the Undertaking — Chapter II. Co-operation at the Level of the Industry — Chapter III. Co-operation at the National Level — Conclusions — Questionnaires. 205 pages Price: $1.25; 5s. PUBLICATIONS OF THE INTERNATIONAL LABOUR OFFICE INTERNATIONAL LABOUR REVEIW (English, French and Spanish editions) The International Labour Review is now in its twenty-eighth year. In its present form it comprises the following sections: (a) general articles on topics connected with social policy, prepared either in the Office or by outside authorities; (6) documentary articles (analyses of Government reports, etc.); (c) information relating to the Industrial Committees of the I.L.O.; (d) "Industrial and Labour Information" (issued separately as a weekly publication from 1922 to 1940), containing news of legislation and other developments in the field of social policy throughout the world ; (e) statistical tables covering the cost of living, wages, unemployment, employment and hours of work in all those countries for which figures are obtainable; (/) bibliographical notes. Recent issues include the following articles: Recent Social Developments in Finland, by Niilo A. MANNIO January-February 1948 Planning and Nationalisation in Great Britain, by Dr. Herman FINER, published in two instalments March and April 1948 Vocational Guidance in the United States, by Dr. Harry A. JAGER. . .April 1948 Family Allowance Schemes in 1947, published in two instalments April and May 1948 A specimen copy of the Review and a Catalogue of other publications will be sent on application to the INTERNATIONAL LABOUR OFFICE. The International Labour Review may also be obtained from the publishers in the United Kingdom, Messrs. George Allen & Unwin Ltd., Ruskin House, 40 Museum Street, London, W.C.I. Price: 50 cents; 2s.6d. Annual subscription: $5; 24s. PRINTED BY INLAND PRESS LIMITED MONTREAL, CANADA