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Yesterday, President Obama established a Presidential Emergency Board (PEB) to investigate a wage and health care benefit dispute that’s stalling national contract negotiations between the National Carriers’ Conference Committee (NCCC) and 11 rail labor unions, which represent 75 percent of the workers at major U.S. railroads. The five-member PEB also will make bargaining recommendations.

The PEB now has 30 days to investigate the dispute and submit recommendations to President Obama. Another mandatory 30-day cooling-off period will follow. PEB hearings are expected to begin in Washington, D.C., within the next 10 days.

If the PEB recommendations fail to prompt a voluntary settlement, the parties would be free to engage in “self-help” when the second 30-day cooling-off period expires on Dec. 7.

An ongoing dispute over wages and health care benefits for a new collective bargaining agreement between the unions and NCCC — which bargains for more than 30 U.S. railroads, including the Class Is — began in 2009. The unions include members of two coalitions. The Rail Labor Bargaining Coalition includes the Brotherhood of Locomotive Engineers & Trainmen; Brotherhood of Maintenance of Way Employes Division (BMWED); Brotherhood of Railroad Signalmen; International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers and Helpers; National Conference of Firemen and Oilers of the Service Employees International Union; and Sheet Metal Workers International Association. The other coalition includes the American Train Dispatchers Association, International Association of Machinists and Aerospace Workers, International Brotherhood of Electrical Workers, Transportation Communications Union and Transport Workers Union.

“The BMWED, along with our brothers in the other 10 rail labor unions, have made it clear that we will not stand by and allow the rail carriers to gut our health care and deny our members a decent standard of living while they continue to reap record profits,” said BMWED President Freddie Simpson in a prepared statement. “A voluntary agreement would have been preferable, but we look forward to making our case to the [PEB].”

Last month, the National Mediation Board released the unions from mediation with the railroads. The unions considered launching a strike if a PEB wasn’t formed by Oct. 7.

The formation of the PEB has prevented a potential national rail strike “at a time when America’s already fragile economic recovery can least afford it,” said Association of American Railroads President and Chief Executive Officer Ed Hamberger in a prepared statement.

“We are hopeful the parties will swiftly reach an agreement, particularly given that 30 percent of the nation’s rail labor workforce has already reached a highly generous pattern agreement with the railroads,” he said, referring to a pact reached between the NCCC and United Transportation Union (UTU). “Now is not the time, given so many Americans already are out of work, to undermine freight rail’s vital role in the nation’s economic recovery, or the industry’s efforts to hire as many as 15,000 people this year.”

The UTU agreement — which calls for a 17 percent wage increase over six years and covers 40,000 employees — is “demonstrably fair and balanced by any objective measure,” said NCCC Chairman A. Kenneth Gradia in a prepared statement.

“We look forward to presenting a compelling case to the PEB detailing why this agreement should serve as a pattern for settlement with the remaining 11 unions,” he said. “We strongly believe that it is in the best interests of both sides — and the country — to reach agreements and eliminate the risk of any disruption to rail service, which would undoubtedly damage the nation’s fragile economy.”