Railroads welcome appointment of “Presidential Emergency Board”

President Biden signed an executive order creating a Presidential Emergency Board (PEB) to help railroads and their workers settle ongoing national labor negotiations and ultimately agree to a new contract.

“On average, railroaders earn $135,000 annually in total pay and benefits, which is higher than the average compensation of industries that employ 94% of the U.S. workforce,” said AAR President and CEO Ian Jefferies. “Railroads remain committed to reaching an agreement that provides their employees well-deserved compensation increases that keep them among the best paid in the nation.”

The Railway Labor Act governs collective bargaining for the rail industry, which aims to help parties reach an agreement without work stoppages or disruptions to U.S. freight rail movements. Among other things, the statute includes provisions to encourage successful negotiations and, when necessary, provide outside assistance, such as forming a PEB to facilitate a resolution.

“We are pleased that President Biden has taken an important step by creating a PEB to help all parties find a reasonable path forward,” continued Jefferies. “An agreement that allows both our hardworking employees and the industry to thrive into the future remains possible.”

Now, the PEB will review the parties’ proposals and hold hearings in the coming weeks before issuing settlement recommendations. Historically, these recommendations can serve as a roadmap for a voluntary agreement.