By Nathalie Voit
The Presidential Emergency Board (PEB) has a little over three weeks to avert a U.S. railway strike that could spell disaster for the whole nation.
According to news from the industry, the U.S. rail freight sector has been plagued by months-long labor disagreements between major rail carriers and their unions. So far, the talks have failed to deliver meaningful progress, and both parties remain bitterly at odds over ‘substantive issues’ like suggested compensation and workload.
The rail freight disputes are largely the product of a post-pandemic surge in demand. RailFreight.com reported that record congestion at key rail and port networks pushed many industry workers to the edge. Coupled with sky-high inflation and a labor shortfall, the challenging economic environment emboldened union leaders’ calls for better conditions on the ground and increased pay.
The situation got so dire as of late that railroad unions planned to hold a nationwide 115,000-worker strike to bring attention to the issue. Workers and their representatives gave the White House until July 17 to create a special emergency board to resolve the labor disputes. If the administration failed to appoint a board by then, rail labor had vowed to go on strike–a move that would have surely impacted the nation’s already fragile supply lines.
President Joe Biden, on July 15, issued an executive order establishing the PEB. The new board is tasked with investigating and recommending a negotiated settlement.
The PEB has until mid-August or 30 days since the order went into effect on July 18 to help workers and management work toward a deal. Strikes are forbidden during the 30-day “cooling off” period.
If both parties reject the PEB proposals developed during the waiting period, stoppages on U.S. railways could become common in the fall.
“The U.S. business community faces enormous challenges today from record inflation, labor shortages, and ongoing supply chain disruptions due to the COVID-19 pandemic,” CEO of the U.S. Chamber of Commerce Suzanne P. Clark said on July 6.
“Any breakdown would be disastrous for U.S. consumers and the economy, and potentially return us to the historical supply chain challenges during the depths of the pandemic.”
