Labor Board to hear the workers' grievances, and the FLUs postponed the strike. Roosevelt himself stepped into the negotiations. On March 25, Roosevelt announced the creation of an Automobile Labor Board composed of one representative from management, one representative from labor, and a "neutral third party" to review allegations of anti-union activity. Roosevelt endorsed management's proposal to permit the recognition of company unions and the principle of proportional representation. Green avidly endorsed the settlement, in accordance with his belief in the social gospel and lifelong refusal to endorse militancy in labor relations. But in doing so, he lost the confidence of the auto workers. Membership in automobile FLUs dropped by more than 14,000 to just 18,244 by the spring of 1934. The Great Depression The city of Toledo was financially devastated by the Great Depression. The Willys-Overland automobile company, the city's largest employer, declared bankruptcy. The Ohio Bond and Security Bank, the city's largest bank, collapsed, along with most of the city's banks and savings and loan associations. Near bankruptcy, the city of Toledo laid off hundreds of workers, including 150 police. Unemployment in the city reached 70 percent. The Auto-Lite strike Against this background, workers in Federal Labor Union 18384 began agitating for management to recognize their union and increase wages. FLU 18384 had been organized differently than other FLUs. It was a multi-employer union, and its members were employed not only by the Electric Auto-Lite Company but also by the Bingham Stamping and Tool Company and the Logan Gear Company (both subsidiaries of Electric Auto-Lite) as well as the Spicer Manufacturing Company. Because of this diverse membership, workers at one employer could strike and the union would remain financially solvent. This encouraged militancy among the FLU's members, and on February 23, 1934, the Auto-Lite members engaged in a recognition strike and attempted to win a 10 percent wage increase. Nearly all FLU members at Auto-Lite walked out. The strike lasted only five days. The employees returned to work after management agreed to a 5 percent wage increase and to negotiate a contract by April 1, 1934. Both parties agreed to negotiate further over wages (the union demanded an additional 20 percent wage increase), seniority rights, the closed shop, improved working conditions, union recognition and an end to discrimination against union members and supporters. Management declared itself unwilling to sign a new contract in early April. FLU 18384 authorized