The Railway Labor Act (RLA) is a federal statute that has governed collective bargaining between freight railroads and rail labor organizations for nearly 100 years. Unlike agreements in most other industries, rail labor agreements under the RLA remain effective indefinitely until changed by mutual agreement. The RLA includes a structured process for good faith bargaining and safeguards designed to prevent service disruptions that could impact the U.S. economy.

The duration of the process can vary. Some agreements are reached quickly, while others may go through each stage of the RLA process. Our goal in this round is to reach timely, voluntary agreements that benefit all stakeholders.

“National” agreements between multiple freight railroads and a labor union typically address significant issues such as wages, health benefits and industry-wide work rules. These agreements are negotiated on a multi-employer basis and apply to all employees represented by the signatory carriers and union. “Local” agreements only apply to employees in one craft at a specific railroad (or even parts of a railroad) and usually address carrier-specific working conditions.

Under the RLA, collective bargaining agreements do not expire and instead have “reopener” dates. On and after those dates, parties can start new negotiations by exchanging “Section 6 notices,” so-named because the notices are issued pursuant to Section 6 of the RLA. These notices outline proposed contractual changes and mark the beginning of the collective bargaining process. While the negotiations move forward, the current contract remains in force.

If both parties cannot reach an agreement through direct bargaining and mediation, and one or both parties reject binding arbitration, the RLA gives the President of the United States the authority to appoint a Presidential Emergency Board (PEB). The PEB investigates and makes non-binding recommendations for settling labor disputes that threaten to substantially interrupt interstate commerce. A PEB has 30 days to conduct hearings and issue its report and settlement recommendations. Work stoppages are prohibited during this time and for another 30 days following the issuance of the report.