The Railway Labor Act

The Railway Labor Act (RLA) is the Federal statute that determines the rules for collective bargaining, representation, and grievance processing in the airline and railroad industries. The RLA was enacted in 1926, amended in 1934 to create the National Mediation Board (NMB) and further amended in 1936 to cover the emerging airline industry. The RLA serves four primary purposes: avoiding interruptions to commerce and airline/railroad operation, protecting employees’ rights to join a union, maintaining the independence of carriers and employees in matters of self organization and outlining procedures for the settlement of grievances and disputes.

The National Labor Relations Act (NLRA), also known as the Taft-Hartley Act, governs most other domestic labor unions.

Listed below are the significant steps involved in labor contract negotiations as mandated by the Railway Labor Act.

Notification – Section 6 of the Railway Labor Act requires that the company and/or the union provide advance notification of their intent to engage in contract negotiations; the terms of the existing contract determine when such notification must be given. This notification is commonly referred to as a Section 6 notice.

It is important to note that airline labor contracts or collective bargaining agreements (CBA) do not expire but become amendable at the end of their term. The provisions of the existing contract remain in full effect during Section 6 negotiations. This is commonly referred to as the “status quo”. The RLA requires that both the company and the union maintain the “status quo” until a new collective bargaining agreement is reached or all necessary procedures mandated by the RLA have been exhausted.

Direct Negotiations – Union and management negotiating teams engage in direct negotiations.

Mediation – Should direct negotiations stall, either party may request the assistance of the National Mediation Board (NMB). The NMB is an independent agency that facilitates labor management relations within the railroad and airline industries. The governing body of the NMB consists of three board members who are appointed by the President of the United States. The NMB is responsible for providing mediation services should the parties fail to reach an agreement during direct negotiations.

Proffer of Arbitration – If the NMB feels that further mediation will not result in an agreement, it may issue a proffer of arbitration. A proffer of arbitration is an offer to settle any outstanding issues between the union and the company through binding arbitration.

Should either party reject the proffer of arbitration, the NMB releases the parties from mediation and into a 30-day cooling-off period.

30-Day Cooling-Off Period – The union and the company are both released into a 30-day cooling-off period. During this time, the NMB continues to offer its services and encourages both parties to meet. This is often referred to as “super mediation” or “public interest mediation”.

If no agreement has been reached by the end of the 30-day period, both parties may engage in self-help unless a Presidential Emergency Board (PEB) is created.

Presidential Emergency Board – The President of the United States, may at his discretion, appoint a Presidential Emergency Board (PEB) upon receiving notification from the National Mediation Board that a strike “threaten[s] substantially to interrupt interstate commerce to a degree such as to deprive any section of the country of essential transportation service”.

Once created, the PEB has 30 days to investigate and make its report to the President. Should a PEB be created, the “status quo” obligation of both the union and the company are extended for a further cooling-off period. Both parties are required to maintain the “status quo” and are not permitted to engage in self-help until 30 days after the PEB has delivered its report to the President.

Neither the company nor the union is required to accept the recommendations of the PEB. Both parties are free to engage in self-help after the expiration of the final 30-day cooling-off period, barring an unlikely intervention by the United States Congress to legislate a settlement.

Self Help - At the end of the cooling-off period(s), both sides are free to engage in self-help. The union has the option to strike and management can impose new working conditions or conduct a lock out.

For a graphic description of the RLA negotiating process, please click here.