The NIRA Code Negotiation Process
The NIRA Code Negotiation Process
When the NIRA was passed on June 16, 1933, President Roosevelt expressed hope that all major industries would be covered by codes within the next six weeks. These hopes were wildly overoptimistic because the code negotiation process was far more time-consuming than expected. While a flurry of industry-proposed codes arrived quickly, the administration noted that these were generally not drawn up in the spirit of recovery but of monopoly. Industries were asked to focus on wage and hour regulations and a few issues related to fair competition that were most important to the industry. Still, industry, labor, and the government often disagreed severely on major issues. Labor unions often pushed for wages that were as much as twice as high as those proposed by industry. As a result, code hearings sometimes stretched across several days—in many cases the NRA ended the hearings and asked industries to go back to the drawing board and send in an all new proposed code in the future. Six weeks after the law’s passage, the government had approved codes for only three industries, a tiny fraction of the 550 industries the law would eventually cover.
Keywords: Franklin Roosevelt, Codes of Fair Competition, labor union
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