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When the World Wars ended, a string of labor strikes provoked a change in political climate and a Republican takeover of Congress. Over President Harry S Truman’s veto, Congress passed the Taft-Hartley Act of 1947, resetting the limits of labor disputes and redefining the government’s capability to respond. In 1952, the threat of a strike by steelworkers provoked a clash about the limits of executive power. In November 1951, as the Korean War was in gear, steelworkers sought a new contract with the domestic industry. The industry, in turn, sought government approval for steep price increases to pay for new labor costs. When the Office of Price Stabilization pared back its demands as opportunistic, labor talks stalled. On April 8, 1952, hours before a strike was to begin, Truman issued Executive Order 10340, directing Secretary of Commerce Charles Sawyer to seize control of the nation’s steel production, including the Youngstown Sheet & Tube Co. and other steel mills. The companies sought a restraining order, arguing a government-imposed wage scale would cause irreparable economic harm. The issue went to the Supreme Court which ruled 6-3 against the Truman administration.
(ABA Journal)
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