Our contract negotiating process is governed by the Railway Labor Act (RLA). The RLA is a United States federal law that governs labor relations in the railroad and airline industries. The Act, passed in 1926 and amended in 1934 and 1936, seeks to substitute bargaining, arbitration and mediation for strikes as a means of resolving labor disputes. Its provisions are enforced under the National Mediation Board (NMB).
Under the RLA, there’s a specific process that must be followed when negotiating a collective bargaining agreement (CBA). That process starts with direct negotiations between the Union and the company. If direct negotiations are unsuccessful, a mediation process begins to resolve the remaining disputed items.
Should mediation reach the point where no further progress can be made, the NMB may offer to submit the remaining disputed issues to voluntary but legally binding arbitration. If the offer of arbitration is rejected by either the Union or the company, either side can petition the NMB to be released from further negotiations. Once released, a 30-day cooling off period begins. Additional mediation talks may continue and a Presidential Emergency Board (PEB) may be established.
If no agreement is reached after these options have been exhausted, the Union and the company have the option of exercising self help. For the company, this includes options such as imposing work rules at their discretion. For the Union, options may include work stoppages or other job actions.
Read more about the various parts of the negotiating process below to learn about each step.
Direct Negotiations
The process begins with direct negotiations between the Union’s Negotiating Committee and management’s negotiating team.
Exchange of Openers
The Union and company begin negotiations by exchanging opening proposals. The proposals outline each group’s priorities and desired changes to the current collective bargaining agreement (CBA).
Direct Negotiations
Negotiations take place across the bargaining table between the Union and the company. The opening proposals are used as a starting point for discussion. Both sides caucus (meet separately), develop and present counter proposals, try out different concepts, and look for ways to reach agreement.
What happens next?
Tentative Agreement Reached - If a tentative agreement is reached, the membership ratification process begins.
Direct Negotiations Unsuccessful - If direct negotiations are unsuccessful and talks deadlock, either party can apply for mediation.
Mediation
If direct negotiations are unsuccessful, either the Union or the company can request that the National Mediation Board (NMB) begin mediation. If mediation is unsuccessful, the NMB can offer to submit the remaining issues to binding arbitration.
Mediation
If direct negotiations reach the point where talks between the Union and the company have deadlock, either party can apply to the National Mediation Board (NMB) to begin mediation of the remaining issues. The NMB will assign a mediator and conduct mediation sessions until either an agreement is reached or the NMB determines that it won’t be possible for the Union and the company to reach an agreement despite its best efforts.
More information about the mediation process can be found on the Mediation Overview & FAQ page of the NMB website.
Proffer of Arbitration
If the NMB determines that mediation is unsuccessful and no agreement can be reached, it will urge both the Union and the company to resolve the dispute through binding arbitration. This is known as a “proffer of arbitration”.
Arbitration in the negotiations process is voluntary and both the Union and the company must agree in order to proceed forward. If either party rejects the offer, binding arbitration does not occur.
Binding Arbitration
If the Union and the company both accept, the remaining items in dispute are submitted for binding arbitration. Hearings begin and both the Union and the company make arguments before a neutral, third-party arbitrator. The arbitrator issues an award and a new contract is imposed that is legally binding and both the Union and the company.
What happens next?
Tentative Agreement Reached - If a tentative agreement is reached, the membership ratification process begins.
Mediation Unsuccessful, Proffer of Arbitration Rejected - If mediation is unsuccessful and the Union and/or company reject the offer of binding arbitration, negotiations are at an impasse.
Impasse & Self Help
When mediation is unsuccessful, the proffer of arbitration is rejected, and the Union and the company can make no further progress in negotiations, we reach an impasse, or deadlock. At this point, either party can request that the NMB release the parties from further negotiations.
Cooling Off Period
Once the NMB releases the parties, a 30-day cooling-off period begins. During this time, mediation (often termed “super mediation”) may continue in an effort to reach an agreement prior to the end of the cooling-off period.
If super mediation is successful and an agreement is reached, the tentative agreement is sent out to the membership for a ratification vote.
Work Stoppage/Imposed Work Rules
If the Union and the company don’t reach an agreement by the end of the cooling off period, then the parties may engage in self help. For the company, this may include lockouts or imposed work rules. For the Union, this could include going on strike, work stoppages, or other job actions.
In certain circumstances, the President may establish a Presidential Emergency Board that could delay self help activity (see below).
Presidential Emergency Board
The Railway Labor Act allows the President to establish a Presidential Emergency Board (PEB) to investigate a dispute related to the terms of a collective bargaining agreement if the dispute substantially threatens essential transportation.
When a PEB is created, any self help activity (strike, lockout, etc.) is generally delayed for 60 days. The PEB has 30 days to report back to the President on its findings, which usually includes recommendations to settle the dispute. After the PEB reports back to the President, another 30-day cooling-off period begins to allow the Union and the company to consider the recommendations and/or negotiate their own agreement.
If the parties don’t reach an agreement at the end of the cooling off period, they can engage in self help (see above).