Biden Establishes Presidential Emergency Board in Rail Dispute

On July 15^th, President Biden signed an Executive Order to establish a Presidential Emergency Board (PEB) to engage with labor and industry in the ongoing rail contract dispute.  In the order, Biden cites the National Mediation Board and its judgment that the rail dispute threatens substantially to interrupt interstate commerce to a degree that would deprive a section of the country of essential transportation service.  The order went into effect on July 18^th, effectively stopping a potential strike recently authorized by a recent union vote.  The PEB will have 30 days to develop a report with recommendations for settlement between the parties.  The parties are then subject to a 30-day cooling off period to consider the recommendations of the PEB.  While the establishment of a PEB does not guarantee that a strike will be averted, historically, the process has often resulted in the parties reaching an agreement.