Such agreements
were concluded by the War and Navy departments and by the United States
Emergency Fleet Corporation. The Shipping Board sponsored a similar
agreement between the shipping companies and the seafaring unions; and
the War Department between the leather goods manufacturers and leather
workers' union. When the government took over the railways on January 1,
1918, it created three boards of adjustment on the identical principle
of a full recognition of labor organizations. The spirit with which the
government faced the labor problem was shown also in connection with the
enforcement of the eight-hour law. The law of 1912 provided for an
eight-hour day on contract government work but allowed exceptions in
emergencies. In 1917 Congress gave the President the right to waive the
application of the law, but provided that in such event compensation be
computed on a "basic" eight-hour day. The War and Navy departments
enforced these provisions not only to the letter but generally gave to
them a most liberal interpretation.
The taking over of the railways by the government revolutionized the
railway labor situation.
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