Posted October 7, 2011 10:44:18 CDT

Presidential Emergency Board Established - Next steps

by LRC

On October 6, President Obama appointed a five member Presidential Emergency Board (PEB) to investigate the dispute between the 11 unions who are bargaining nationally, in two coalitions (RLBC and TCU), and the railroads. The next steps are for the PEB to hold hearings and submit a report with settlement recommendations to the President. Hearings are to be held within the next 10 days with testimony from both management and labor. Under the Railway Labor Act (RLA) the PEB has 30 days to issue a report with settlement recommendations. During this time neither side can engage in "self help" - a labor strike or a unilateral implementation of management terms.

The RLA was expressly designed to avoid disruptions to rail transportation due to labor disputes. Although a PEB's recommendations are not binding, they frequently lead to settlements. There is a cooling off period for 30 days after the PEB's report is issued to give the parties further time to reach agreement before self-help is permitted. National bargaining has generally led to agreements without any self-help. However, congress has stepped in to prevent or end strikes following exhaustion of RLA procedures, most recently in 1992.