Special Message to the Congress Reporting Settlement of the 1961 Maritime Strike

To the Congress of the United States:

Pursuant to the Labor-Management Relations Act, 1947, as amended, I am reporting to the Congress about the recent labor dispute in the maritime industry.

A strike took place at 12:01 AM, June 16, 1961. Although only the ships in port and the employees on such ships were immediately affected, the dispute involved virtually all American shipping companies, some 70,000 employees and about 900 ships and affected the trade and commerce of every Atlantic, Pacific and Gulf port in the United States.

On June 26th, by Executive Order 10949, I established a Board of Inquiry, consisting of the Honorable David Cole, Chairman, Judge Samuel I. Rosenman and Professor James J. Healy, to inquire into the issues involved in the dispute and report to me on or before June 30th, in accordance with the provisions of Section 206 of the Labor-Management Relations Act, 1947, as amended. I subsequently extended the time for the submission of the initial report of the Board of Inquiry to July 3rd.

That report concisely presented the facts with respect to the dispute and the positions of the parties as required by law.

On July 3rd, acting on my instruction, the Attorney General filed a petition in the District Court for the Southern District of New York seeking an injunction against the continuance of the strike. A hearing was held on the Government's motion for a temporary restraining order on July 3rd, and the Court, after finding that the strike affected a substantial portion of the maritime industry, and that it would imperil the national health and safety if permitted to continue, temporarily restrained the strike activities until July 8th. A stay of that order sought immediately by the unions was denied by Circuit Judge Clark. (United States v. National Marine Engineers' Beneficial Association, et al., 292 F. 2d 190, CA 2, July 8, 1961.)

A hearing was held on the Government's motion for a preliminary injunction on July 7th, and the temporary restraining order was extended until July 12th. Two days before this order was to expire, the Court found that it had been "abundantly and overwhelmingly established" that the strike was affecting a substantial portion of the industry, and if permitted to continue would imperil the national health and safety. In addition, it rejected the contention of the National Maritime Engineers' Beneficial Association and the International Organization of Masters, Mates and Pilots that, because their membership consists of "supervisors," their participation in the strike could not be enjoined. (United States v. National Maritime Union of America, et al., 196 F. Supp. 374, S.D.N.Y., July 10, 1961.)

The unions appealed to the U.S. Court of Appeals, Second Circuit, which, in an opinion issued August 22nd, affirmed the lower court's decision. (United States v. National Marine Engineers' Beneficial Association, et al., 294 F. 2d 385 CA 2.)

Pursuant to Section 209(b) of the Labor-Management Relations Act of 1947, as amended, I reconvened the Board of Inquiry. The Board held meetings with the parties and obtained the information required for its further report of the current position of the parties and the efforts which had been made for settlement, including a statement by each party of its position and a statement of the employer's last offer of settlement. This Final Report of the Board of Inquiry was submitted to me September 1st.

On September 25th, the Attorney General moved the District Court to discharge the injunction, which motion the Court that day granted effective September 21st.

I am happy to report that settlements Were reached by all parties to the dispute.

JOHN F. KENNEDY