NMB calls for arbitration in rail labor contract talks

The National Mediation Board (NMB) has ended mediation and is offering binding arbitration over a new contract between unions and the nation's largest railroads.

The unions and railroads have until 5 p.m. (EDT) tomorrow to respond to the arbitration offer. If either side rejects binding arbitration, the parties will enter a 30-day "cooling off" period. 

The railroads and unions have been trying to hash out a new contract since January 2020. The NMB entered the picture earlier this year to mediate.

Leaders of the National Carriers' Conference Committee (NCCC), which represents the nation's freight railroads in national collective bargaining, said they're disappointed that the parties couldn't reach an agreement during mediation.

"It remains in the best interests of all parties – and the public – to settle this dispute, provide for prompt pay increases for all rail employees and prevent rail-service disruptions," NCCC officials said in a written statement.

"The railroads have worked to address issues raised by both sides in the negotiations and have offered pay increases that are consistent with labor market benchmarks and reward rail employees for their essential work. The railroads’ proposals would continue to place rail employee pay and benefits among the best in the nation," NCCC officials added.

The rail unions that are bargaining as part of the Coordinated Bargaining Coalition and the Brotherhood of Maintenance of Way/SMART Mechanical Coalition described the railroads' contract proposals as "an insult" to the workers.

"While each rail union has its own process for considering whether or not to accept the NMB’s proffer, it is anticipated that we will unanimously reject it in the coming days," union officials said in a press release.

The railroads are anticipating that President Joe Biden will appoint a presidential emergency board (PEB) to make recommendations for a settlement before the end of the cooling-off period, NCCC officials said.

Once appointed, a PEB has 30 days to hold hearings and issue a report. Work stoppages are prohibited during this time and during the 30 days after the report is issued.