ATA and IANA call on the White House to step in to settle rail labor issues

Rail labor remains a key theme over the last few weeks.

The main reason for that has to do with a June 17 announcement made by the National Mediation Board (NMB), an independent U.S. federal government agency that facilitates labor-management relations within the nation’s railroad and airline industries, confirming that “pursuant to the Railway Labor Act, the National Carriers’ Conference Committee (NCCC) and the twelve unions…were released by the NMB from statutory Mediation on June 17, 2022, and a 30-day cooling-off period [began] on June 18, 2022.”

NMB added that as part of an initiative to help the parties in reaching agreements, it is scheduling public interest meetings, which are set to begin on July 12.

As previously reported, both the National Retail Federation (NRF) and the United States Chamber of Commerce penned respective letters to President Biden, expressing their concerns over the current rail labor issues and the need to get a deal done.

In his letter to President Biden, NRF President and CEO Matthew Shay wrote that the current rail labor situation, in the wake of the NMB’s recent decision, has the potential for additional supply chain disruptions, adding that NRF and its members are concerned about the current status of negotiations and the potential for system-wide disruption in September, when Peak Season is in full swing and tied to back-to-school and holiday shopping.

Shay explained that if the railroads and unions do not return to the negotiating table the White House needs to appoint respected, experienced, and impartial arbitrators to a Presidential Emergency Board (PEB), which he described as critical to avoid a strike and ensure systemwide fluidity.

And U.S. Chamber President and CEO Suzanne Clark explained in her letter that that the PEB needs to be comprised of individuals who are impartial, belong to the National Academy of Arbitrators, and have direct experience in resolving rail disputes.

“It is imperative that the Administration act to prevent any disruption to America’s rail service,” wrote Clark. “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. And we are now facing uncertainty over the possibility of further disruptions during preparations for the holiday shopping season. Any breakdown would be disastrous for U.S. consumers and the economy, and potentially return us to the historic supply chain challenges during the depths of the pandemic. We remain optimistic that both sides will be able to resolve their differences and voluntarily reach a new agreement. However, the Administration’s next steps will be critical in this regard.”

Two other industry associations—the American Trucking Associations (ATA) and the Intermodal Association of North America (IANA)—also penned letters to the White House to make their positions clear on the importance of getting this current situation resolved.

IANA President and CEO Joni Casey wrote that the worst possible scenario would be a national rail network shutdown as early as mid-September.

“Failure to reach a reasonable agreement could result in disruptions not just in the rail industry but the broader supply chain, from manufacturers to retailers to consumers,” she wrote. “The downstream effect of such an event would be further supply shortages and higher costs to Americans at a time of record inflation. Nobody wants this to occur, and political leaders can play an important role.”

Like her NRF and U.S. Chamber counterparts, Casey called on the White House to appoint credible and experienced arbitrators certified by the American Arbitration Association to the Presidential Emergency Board (PEB), adding that instilling the right people on the PEB will help produce a reasonable agreement for railroads and their employees to consider.

What’s more, Casey stressed that the topline goal for policymakers, railroads, rail employees and the overall supply chain sectors, including intermodal providers and its customers, should be to avoid disruption while balancing the needs of rail companies and their employees.

“To the extent that Congress has to become involved, we hope that similar principles are employed to avoid network disruptions,” she noted. “There is too much at stake, particularly while large portions of the supply chain continue to move historic amounts of cargo.”

ATA President and CEO Chris Spear wrote that it needs the White House’s leadership to produce an optimal outcome for the sake of the nation’s supply chain, the economy, and American consumers and workers.

Spear added that even though railroads and trucks are viewed as competitors, correctly, the modes work together every day to move freight throughout the country, with intermodal shipments with containers transported via ships, railroads, and trucks, with the modes relying on each other to meet international and domestic demand. And he also made it clear that the need for a well-qualified PEB is imperative.

“Trucking companies do not pretend to be experts in rail contract negotiations,” wrote Spear. “We sympathize with both sides of the negotiations, understanding especially the unprecedented challenges in the labor market. While rail labor agreements have typically been reached without network slowdowns or stoppages, we also know that congressional intervention has been required at times in the past to avoid an interruption to service. The current economic challenges and ongoing recovery from COVID-related disruptions really depend on the entire supply chain working effectively without disruption.”

While each of these organizations approaches freight transportation and the supply chain from their own unique respective perches, it is clear they are all on the same page, when it comes to the need for this situation to be efficiently and effectively dealt with sooner than later. Like so many things in our sector, time is perpetually tight and the freight rolls (or flies or sails) on. Here is to hoping the PEB is named soon and progress is made.