National Mediation Board NMB

After decades of disruptive railroad strikes, the Railway Labor Act of May 20, 1926, created a framework for settling rail labor disputes through negotiation and mediation, the oldest federal labor relations law still in force. Amendments signed on June 21, 1934, created the National Mediation Board to administer it, and in 1936 Congress extended the law to the airlines. The Board has three members appointed by the President and confirmed by the Senate, no more than two from one party.

Rail and airline workers fall under the Railway Labor Act rather than the National Labor Relations Act, so the NMB, not the NLRB, conducts their union representation elections. When contract talks stall, the parties must seek NMB mediation, and they cannot strike or impose new terms until the Board formally releases them, followed by a 30-day cooling-off period. The Board rarely grants release, which can keep talks going for years. If a dispute still threatens essential transportation, the President can appoint a Presidential Emergency Board to recommend a settlement, and Congress can impose terms by law. The NMB also funds arbitration of grievances under existing contracts.

The system aims to prevent strikes that could shut down national transportation, and it largely has, though at the cost of very long negotiations. In 2022, when freight rail unions and carriers failed to agree, Congress passed and President Biden signed a law on December 2, 2022, imposing a tentative agreement to avert a nationwide rail strike. Supporters say the Railway Labor Act protects the public from paralyzing shutdowns, while unions say it gives workers too little leverage and some employers say the process is too slow.