Business—Labor Relations: Conflict Amidst Stability

Abstract

With the ending of Second World War, great uncertainty surrounded labor—management relations. Both parties wanted to move from the regulated environment of the war period to a more unregulated “free collective bargaining.” Unions felt wage increases were long overdue, especially given their perception of high levels of corporate profits earned during the war. Management, on the other hand, felt profit margins were too low due to unfair price controls. While both labor and management desired free collective bargaining, the terrain over which bargaining was to occur and the tactics to be used were in dispute. A government convened Labor—Management Conference ended in failure. Agreement could not be reached on the dividing line between labor prerogatives and management rights.