Lewis B. Schwellenbach - Secretary of Labor

Secretary of Labor

In 1945, Schwellenbach was named Secretary of Labor, replacing Frances Perkins, by then-President Harry S. Truman, who wanted a more politically-aware secretary. He was a more active secretary than his predecessors. He changed the labor department from a department primarily interested in statistical information gathering to a policy-making department, actively trying to conciliate labor with management and promote a high-wage economy based on unionized labor. The Employment Act of 1946 codified his policy of promoting maximum employment. He also presided over the end of the wage and price controls which had been in effect during World War II. The Republicans (who had regained control of congress in 1946) were able to pass the Taft-Hartley Act, overriding President Truman's veto, in order to roll back what they saw as the growing power of labor unions. The Federal Mediation and Conciliation Service became an independent part of the federal government, removing that function from the labor department.

Schwellenbach tried to use his judicial temperament to negotiate agreements. At one point during his term, the nation faced a major crisis — large unions in the oil, coal, automobile manufacturing and railroad industries demanded high (30%) wage increases and threatened strikes which could, through secondary effects, cripple the economy. When the oil companies would not agree to Schwellenbach's proposal to negotiate a smaller increase (between 15% and 30%), the federal government seized the oil refineries. He and Truman continued to try to get their political allies who headed unions to compromise. The government was finally able to avert a strike when Truman signed orders seizing the railroads in the presence of the union leaders.