Straight Track #151

Senate to Consider Pro-Management Changes To Railway Labor Act of 1926

U.S. Rail News
Vol. 26 No. 2
Published January 15, 2003

U.S. Rail News, in Vol. 26 No. 2, published Jan. 15, 2003, reported on new Congressional bills that could end the right of railroad workers to strike.

A Senate committee is considering revisions to the Railway Labor Act of 1926 that could end the right of railroad workers to strike by imposing binding arbitration on them, USRN has learned.

Although the revisions would be intended primarily to bring costs under control for struggling airlines, any changes to the law also would affect railroads and ports.

The Railway Labor Act allows the president to halt a strike when the public interest is threatened by declaring a 30-day cooling off period and calling in federal mediators to resolve the dispute. If the mediators fail to work out an agreement between unions and management, the workers are free to strike when the cooling off period ends. 

The act originally was intended to stop railroad strikes, but has been extended to any labor dispute that could hurt commerce and the nation's economy. President Bush used his authority under the act the end the lockout and work slowdown on West Coast ports last fall. 

Railroads, airlines, and other transportation companies have complained the act does not provide enough disincentives to avoid a strike. Only sometimes does federal mediation lead to an agreement. Other times, the cooling off period merely delays a strike. 

McCain Bill Seeks Quick End To Labor Strife

A bill introduced last year by Sen. John McCain (R-Ariz.), called the Airline Dispute Resolution Act (S.1327), would extend the federal government's authority much further. It would allow binding arbitration to end labor disputes quickly. Afterward, any strikes would be illegal. 

McCain's bill did not pass last year. However, after Republican victories in the November election, McCain has returned to his powerful position as chairman of the Senate Commerce, Science and Transportation Committee. 

Committee staff members say McCain might reintroduce his bill soon, which would have greater chances of passing because of the new Republican majority in Congress. "It's something they're looking at," said Pia Pialorsi, McCain's spokeswoman. 

Reintroduction of the McCain bill is on the agenda for consideration by the Commerce, Science and Transportation Committee, she said. 

Although the McCain bill could be good news for railroad management companies trying to reduce labor costs, their unions could lose leverage in labor disputes. The Brotherhood of Locomotive Engineers, for example, would have less bargaining power in its protests of remote control technology for moving locomotives in rail yards. The United Transportation Union, which is using representation elections to increase its membership among railroad workers, would become less intimidating toward management in contract negotiations. 

Among the critics of the McCain bill was the Aircraft Mechanics Fraternal Association, Local 33. 

"The possibility of a strike is our only leverage for persuading management to bargain in good faith," said Jim Atkinson, legislative liaison for the union. "If you take this away, you reduce employees to a condition of servitude not seen in America since the 19th century." 

Railroads have complained that the series of cooling off periods in the Railway Labor Act lead to lengthy labor negotiations. When threatened with strikes, management says they feel compelled to accept contracts that hurt them financially. 

Companies Would Get "Reasonable Profit" 

McCain's bill would require labor disputes to be referred to a panel of arbitrators, who would have 30 days to select a proposal from labor, management or a combination of the two. The parties would have only limited authority to appeal the panel's decision. The arbitrators would be required to consider the financial condition of the carriers and their right to "reasonable profit." 

The Railway Labor Act arose as an issue last week during a Senate hearing on what the government should do to rescue the airline industry from financial collapse. 

American Airlines chairman and chief executive officer Donald Carty said, "We need to reexamine that labor code. It does need to be changed for the long-term health of our industry." 

However, Duane Woerth, president of the Air Line Pilots Association, argued that existing laws should remain the same. "It's too big, it’s too risky and unnecessary a step to provide binding arbitration," he said. "I think this is a solution in search of a problem." 

Contact: Legislative Assistance, Senate Commerce, Science and Transportation Committee, at 202-224-5115. 

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