The regulations set in this case do not allow for concessions, therefore it sets clear guidelines to ensure that the bargain is done in good faith and to the benefit of both parties. Arbitration process involves the appointment of a third neutral party (an Arbiter) who will be charged with the duty of holding formal and informal hearings concerning the differences. The Arbiter will then from the facts drawn from the hearings make a conclusion that binds the two warring factions. His decision must be respected as it is enforceable by the law (Coleman, 1997, pp.36-38). This research paper will look into the historical context of the development and acceptance of the arbitration process in the labor field, particularly during the period and prior to WW II and through the war. The paper will also look at one significant case (Morse's Leadership) which resulted into a great impact on the management of labor relations in the past.
Arbitration is as old as humanity and has been used in the world over to settle disputes between people and even among nations at war. This paper will zero in on industrial labor arbitration between employers and employees prior and during World War Two. The concept of arbitration was used to prevent the differences between the parties from escalating into chaos and turning tragic due to workers' strikes. The concept became a vital requirement in the 20th Century with the rapid industrialization and formation of labor unions (Hinchcliff, 1991, p.231). In the United States, it started in1935 with the passage of NLR (National Labor Relations) Act and proceeded into and during the WWII. President Roosevelt Franklin saw the need to help iron out the differences in industries that produced steel and other war materials so that the ensuing labor differences may not escalate and lead to shortage war paraphernalia (Hinchcliff, 1991, p.251). Far much more than the World War One, the World War Two involved aggressive commitment of all nations in the globe. The whole human resources as well as the economic resources were directed to combat the vice. Both combatants and the non-combatants were affected and the expansion of the battle field to cover the enemies' boarders dealt a big blow to the world economy. The ability of a country to survive the war was therefore determined by its capacity to handle industrial and personnel requirement during the Great War. These two sectors which were already strained the war only aggravated the situation. There was a need to keep the human capital under control and at the same time produce enough to run the demands of the war.
At its infancy, the law was never at all friendly with arbitration of any form. It was viewed by many as a means of overshadowing and usurpation of the judiciary. The courts were very hostile with it establishment. Their view was that the system was geared to drive them from the office and be rendered jobless through complete ousting of the jurisdiction process (McKelvey, 1957, p.14). To counter the new development, the courts declined to order specific performances of an executor for arbitration and also refused to allow for anything over the nominal damages for a breach of an