The sub., 1945-09-06

WAlCA nave UCGn CSIL114SO CO At dS affecting the war effort. A new industry-labor agreement to mini mize interruption of production by labor disputes during the recon version period ahead of us Is im- peratively needed.
 Pending the completion of the conference and until some new plan is worked out and made effective, disputes which cannot be settled by collective bargaining and concilia- tion, including disputes which threaten a substantial interference with the transition to a peacetime economy, should be handled by the War Labor Board under existing procedures.
 For that interim period call upon the representatives of organ ized labor and industry to renew their no-strike and no-lockout pledges, and I shall expect both industry and labor in that period to continue to comply voluntarily, as they have in the past, with the di- rective orders of the War Labor Board
 The Stabilization Act is effective until June 30, 1946. During its continuance wage adjustments which might affect prices must continue to be subject to stabiliza- tion controls With the ending of war production, however, there is no longer any threat of an infla- tionary bidding up of wage rates by competition in short labor market.
 I am therefore authorizing the War Labor Board to release pro- posed voluntary wage increases from the necessity of approval up- on condition that they will not be used in whole or in part as the ba- sis for seeking an increase in price ceilings. Proposed wage increases requiring price relief must con- tinue to be passed upon by the board.
 The reconversion from wartime to peacetime economy will un- doubtedly give rise to maladjust- ments and inequities in wage rates which will tend to interfere with the effective transition to a peace time economy. For the remaining period of it's existence, the board should be given authority to deal with these maladjustments and in- equities, whose scope and nature cannot be clearly foreseen. am therefore issuing new Executive Order which will carry forward the criteria for passing upon wage in creases as originally laid down in Executive Order 9250, and which will also vest in the board author ity to approve or direct increases which are necessary to aid in the effective transition to a peacetime economy The new Executive Or der will continue the previous re- quirement that any proposed wage increase affecting prices, if ap- proved or directed by the board, will become effective only if also approved by the Director of Econ omic Stabilization.
 The War Labor Board should be terminated as soon after the con- clusion of the forthcoming indus try-labor conference as the order ly disposition of the work of the board and the provisions of the War Labor Disputes Act permit, and after facilities have been pro- vided to take care of the wage sterilization functions under the act of October 2, 1922.
 Meanwhile, the strengthening of the Department of Labor, and the unification under it of functions properly belonging to 1t, are going forward under plans being formu- lated by the Secretary of Labor. Tn these plans particular stress is being laid on the upbuilding of the United States Consolidation Service. With the return to peacetime economy and the elimination of the present temporary wartime agen- cies and procedures, we must look to collective bargaining, aided and supplemented by truly effective system of conciliation and volun- tary arbitration, as the best and most democratic method of main- taining sound industrial relations.
 With the return to a peacetime economy and the elimination of the present temporary wartime agen-