Presidential Emergency Board

At a time when freight rail industry stakeholders continue to keep a watchful eye on the current status of the national collective bargaining negotiations between Class I United States freight railroad carriers and railroad labor unions, another railroad labor union, the Brotherhood of Railroad Signalmen (BRS) has not ratified the recent tentative agreement with the railroads.

Leading up to this development, there had been a high level of uncertainty and anxiety among supply chain stakeholders through multiple modes of freight transportation, with a 12:01 A.M. September 16 deadline marking the end of a 30-day “cooling off” period between the 12 United States-based railroad labor unions and six largest freight railroad carriers (even though the majority of the 12 unions had reached tentative labor agreements prior to the tentative deal being struck).

With uncertainty swirling in regards to the possibility of a national railroad strike, as the 12:01 A.M. September 16 deadline marking the end of a 30-day cooling off period between the 12 United States-based railroad labor unions and six largest freight railroad carriers (even though 10 of the 12 unions have reached tentative labor agreements) continues to get closer, the ramifications of a potential strike are weighing heavily on supply chain stakeholders.

As the clock continues to tick down towards the 12:01 A.M. September 16 deadline, which will officially mark the end of a 30-day cooling off period between the 12 United States-based railroad labor unions and six largest freight railroad carriers, tensions continue to run high, given the ongoing uncertainty afloat, even though 10 of the 12 unions have reached tentative labor agreements.

As the clock ticks down towards the September 16, 12:01 A.M. deadline for United States-based freight railroads and railroad labor unions to reach labor accord, a new report issued this week by the Association of American Railroads (AAR) makes the case for what is at stake should deals not be struck with the remaining unions that have yet to reach new labor deals.

Not long after the Presidential Emergency Board (PEB) appointed by President Biden, which is focused on resolving a labor dispute between Class I rail carriers and 12 U.S.-based rail labor unions on reaching labor accord, three railroad employee unions have reached tentative agreements with various United States freight railroads, according to the National Carriers’ Conference Committee (NCCC), an organization representing the nation’s freight railroads in national collective bargaining.

In an effort to quell further supply chain disruptions, President Joe Biden signed an Executive Order (EO) late last week to establish a Presidential Emergency Board (PEB) focused on resolving a labor dispute between Class I rail carriers and 12 U.S.-based rail labor unions on reaching labor accord. The establishment of the PEB went into effect on July 18.

A pair of prominent Washington-based business groups -- the National Retail Federation (NRF) and the U.S. Chamber of Commerce -- respectively sent letters this week to President Biden, calling on the White House to work with Class I rail carriers and 12 U.S.-based rail labor unions on reaching labor accord.