The National War Labor Board was established by President Franklin D. Roosevelt as a response to labor disputes that threatened the production essential for the war effort during World War II. With a need for greater manufacturing capacity, the U.S. government recognized that maintaining workforce stability was vital to meet military demands and support allies. The Board was created in January 1942 to address issues relating to wages, hours, and working conditions, providing a platform for labor and management to negotiate and resolve conflicts efficiently.

This body comprised representatives from labor unions, management, and the public, and it operated under the principle that labor disputes should not interfere with the production of war materials. The Board facilitated negotiations, issued decisions on labor grievances, and set guidelines for handling cases of demand for higher wages amid rising inflation which was impacting workers' livelihoods. The establishment of the Board was a critical step in ensuring that workers' rights were balanced with the national need for productivity during a time of crisis.

Throughout the war, the National War Labor Board played a significant role in mediating numerous disputes and ensuring progress in industries deemed essential for the war effort. Its actions contributed to a temporary truce in labor-management relations during a period marked by heightened tensions, labor strikes, and demands for better working conditions. The Board's influence helped promote policies that would have lasting impacts on labor relations in the post-war period as well, paving the way for future negotiations and labor reforms.