Metro-North Labor Coalition Action Update: A Report from the
BARGAINING FRONT

November 2006

NMB PROFFERS ARBITRATION

Metro-North Labor Coalition: American Railway & Airway Supervisors Association, TCU/IAM: Lodge 5041 ?? International
Association of Machinists & Aerospace Workers: District Lodge 19 ?? International Brotherhood of Electrical Workers:
System Council 7 & Local 1575 ?? International Brotherhood of Teamsters: Local 808 ?? National Conference of Firemen &
Oilers, SEIU: System Council 2 ?? Sheet Metal Workers International Association ?? Transportation Communications Union/
IAM: System Board 86 & Districts 227, 1043 and 1402 ?? Transport Workers Union of America: Locals 2001 & 2055

On November 1, the National Mediation Board
(NMB) proffered arbitration to every union in the
Metro-North Labor Coalition and Metro-North
Labor Relations.
The NMB wrote, “Despite the Board’s best
efforts to bring about an amicable settlement through
mediation, the parties have failed to reach agreement
disposing of the above-described dispute. In accordance
with Section 5, First, of the Railway Labor Act,
the National Mediation Board therefore now
requests and urges that you enter into an agreement
to submit the controversy to arbitration as provided
in Section 8 of the Act.”

Each of the Coalition unions immediately
responded to the NMB, rejecting arbitration.
(Metro-North immediately accepted the NMB’s
offer.) Under the Railway Labor Act, if either party
rejects the proffer of arbitration the NMB “shall at
once” notify the parties that its mediatory efforts have
failed. No change in the status quo can be made by
either party for 30 days after such notice.
At the end of the 30 day period, either party
may engage in self help, unless a Presidential Emergency
Board (PEB) is appointed. (Self help means
a strike by the employees or a lock-out or imposition
of their contract demands by the employer.)
The NMB may recommend the appointment
of a Presidential Emergency Board and it would then
be up to President Bush whether to appoint one.
Alternatively, as a commuter railroad, President Bush
must appoint a PEB if he is requested to do so by
either of the parties or by the Governor of the state(s)
in which the railroad operates. It is extremely likely
that Metro-North or the Governor(s) will demand
the appointment of a PEB.

If a PEB is appointed, the status quo (no self help)
must be maintained for 120 days from the date of
the creation of the Board. During that time, the PEB
will hold hearings and issue non-binding recommendations
to the parties for settlement. If no settlement
is reached within the 120 days, any party to the
dispute or the Governor(s) of the affected states may
request a second Emergency Board. The parties
would then have 30 days to submit their final offers
to the second PEB, and within 30 days thereafter
the second Board will issue a report selecting “the
most reasonable” offer.

The parties may not engage in self help for 60
days after the second Emergency Board issues its
report. In the event the second Emergency Board
selects the railroad’s offer, the employees may strike
60 days after the issuance of the second Board
report. If the Board selects the employees’ offer, but
the Carrier refuses to accept the offer, the employees
also would have the right to legally strike 60 days
after the issuance of the report.

We have negotiated as hard as we could to bring
you an agreement that you would be proud to ratify,
but ultimately Metro-North would not agree to
acceptable terms. Throughout these difficult four
years, we can be proud as unionists that the
Coalition has remained strong and united. That
solidarity is the key to achieving a fair and just
contract. As we move to the next stage, we will keep
you informed of developments.