SETTLEMENT OF LABOR-MANAGEMENT DISPUTES IN

TRANSPORTATION

TUESDAY, JULY 27, 1971

HOUSE OF REPRESENTATIVES,

SUBCOMMITTEE ON TRANSPORTATION AND AERONAUTICS,

COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE,

Washington, D.C. The subcommittee met at 10 a.m., pursuant to notice, in room 2123, Rayburn House Office Building, Hon. John Jarman (chairman) presiding.

Mr. JARMAN. The subcommittee will please be in order.

The hearings today are on a number of legislative proposals pending before the committee relating to the subject of settlement of emergency labor disputes affecting the transportation industry.

Chairman Staggers, for himself and Mr. Springer, has introduced the administration's proposal, H.R. 3596. Mr. Staggers also introduced, for himself and others, H.R. 3595, which is supported by a number of labor unions. I have introduced H.R. 9989, which embodies recommendations made by the Association of American Railroads and the Air Transport Association.

Our colleague on the committee Mr. Pickle has introduced legislation on this subject for a number of years, and his bill during this Congress is H.R. 2357, providing several alternative means to the President for settling disputes; and our colleague Mr. Harvey, for himself and numerous other Members, has introduced H.R. 9571 and other identical bills also providing a number of options for the President. In addition, our colleague on this subcommittee Mr. Dingell has introduced H.R. 5347, which provides a revised procedure under the Railway Labor Act for resolving disputes.

These issues are complex and are likely to be controversial; however, in view of the fact that Congress has had to intervene, with increasing frequency, in labor-management disputes involving the railroad industry in recent years, I do not think that it can be denied that the Railway Labor Act of 1926 needs reexamination at this time.

At this point there will be included in the record a summary of legislative proposals for settling emergency labor disputes, the text of the bills and the agency reports thereon.

(The documents referred to follow :)

SUMMARIES OF LEGISLATIVE PROPOSALS, INTRODUCED IN THE 92D CONGRESS THROUGH SEPTEMBER 30, 1971, FOR SETTLING EMERGENCY LABOR DISPUTES

(INCLUDES ALL BILLS REFERRED TO THE HOUSE COMMITTEE ON
INTERSTATE AND FOREIGN COMMERCE)

H.R. 3596, sponsored by Messrs. Staggers and Springer, referred to Committee Feb. 4, 1971

To provide more effective means for protecting the public interest in national emergency disputes involving the transportation industry, and for other purposes

Identical bills

H.R. 901, Mr. Mayne, Jan. 22, 1971.

H.R. 3639, Messrs. Lloyd, Mayne, Dennis, McCloskey, and Steiger of Arizona, Feb. 4, 1971.

H.R. 4116, Messrs. Gerald R. Ford, Mayne, Lloyd, Nelsen, and Harvey, Feb. 10, 1971.

H.R. 5377, Mr. Broomfield, Mar. 2, 1971.

Coverage: Labor disputes in the following transportation industries: railroads, airlines, maritime, longshore, and trucking. At present, labor disputes on the railroads and airlines are covered by the Railway Labor Act, in the maritime, longshoring, and trucking industries by the Labor Management Relations (TaftHartley) Act.

Provisions: Title I. Repeals the emergency disputes procedures of the Railway Labor Act and brings disputes involving railroads and airlines under the emergency provisions of the Labor Management Relations (Taft-Hartley) Act. Amends the existing national emergency disputes provisions of the Taft-Hartley Act by bringing rail and air carriers under the 80-day cooling-off procedure and adding three new options applicable to them and the other transportation industries-maritime, longshore, and trucking. These optional procedures could be used if a national emergency dispute in transportation were still unresolved after the 80-day cooling-off period. Petition for an 80-day injunction must be before a three-judge district court in the case of national emergency disputes in the transportation industries.

Empowers the President to choose any one, but only one, of the new optional procedures. Within a 10-day period, either House of Congress may reject the President's choice. If either House should reject his choice, or if he makes no choice, the President shall submit to the Congress a supplemental report including such recommendations as he may see fit to make.

One of the new options available to the President is to extend the no-strike, no-lockout period for not more than 30 days beyond the 80-day cooling-off period. A second option is to appoint a special board of three impartial members to review the feasibility of requiring partial operation of the industry (the essential or critical part) after the 80-day cooling-off period, and permitting strike or lockout in the rest of the industry. The special board's decision must be made within 30 days; during that period no change, except by agreement, shall be made in the terms and conditions of employment. Partial operation pursuant to the board's decision would be limited to a maximum of 180 days.

Under the third option, the parties are required to submit their final proposals for full resolution of the controversy following the 80-day cooling-off period. Provides that the parties would be given three days in which to submit two final offers and that if any party fails to submit a final offer or offers, the last offer made during previous bargaining would be deemed its final offer. Directs that following this submission to the Secretary of Labor, the parties would be required to meet and bargain for 5 days, with or without mediation by the Secretary of Labor. Provides that as a second step, the parties would be given an opportunity to select a three-member panel to act as "Final Offer Selector" and that if the parties were unable to select the panel, it would be appointed by the President. Asserts that the panel would hold hearings and determine which of the final offers constituted the final and binding resolution of the issues. Provides that in reaching its determination the panel could not choose any settlement other than one of the final offers. Specifies the criteria to be used by the panel in reaching its decision. Provides that the panel's choice would become the contract between the parties. The determination of the panel shall

be conclusive unless found arbitrary and capricious by the district court which granted the 80-day injunction in the dispute.

Title II: Amends the Railway Labor Act by (1) transferring mediation duties of the National Mediation Board to the Federal Mediation and Conciliation Service (which now mediates disputes under the Taft-Hartley Act); (2) leaving as the sole functions of the National Mediation Board (re-named the Railroad and Airline Representation Board) determination of appropriate bargaining units and holding representation elections for those units; and (3) phasing out over a two-year period the present National Railroad Adjustment Board, leaving labor and management to provide grievance machinery in their collective bargaining agreements.

Title III: Establishes a seven-member National Special Industries Commission, for a term not to exceed two years, to study labor relations in those industries which are particularly vulnerable to national emergency disputes and to make recommendations concerning such industries as to the best ways, including new legislation, for remedying the weaknesses of collective bargaining.

Title IV: Amends the Railroad Unemployment Insurance Act so as to deny unemployment benefits to strikers.

Miscellaneous: H.R. 3596 is the administration's proposal, as detailed in President Nixon's message on dealing with national emergency labor disputes sent to the Congress Feb. 3, 1971 (H. Doc. 92-43). H.R. 3596 is the same as three identical House bills referred to the Committee in 1970: H.R. 16226, introduced by Messrs. Gerald R. Ford, Lloyd, Steiger of Arizona, Winn, Eshleman, and Mayne, Har. 2, 1970; H.R. 16272, introduced by Messrs. Staggers and Springer on Mar. 3, 1970; and H.R. 16273, introduced by Mr. Steiger of Wisconsin on Mar. 3, 1970. The three House proposals in 1970, cited, as is H.R. 3596, as the Emergency Public Interest Protection Act, contained the administration's recommendations as outlined in a Presidential message on national emergency disputes, transmitted to the Congress Mar. 2, 1970 (H. Doc. 91-266).

H.R. 3595, SPONSORED BY MESSRS. STAGGERS, ECKHARDT, AND MACDONALD OF MASSACHUSETTS, REFERRED TO COMMITTEE FEBRUARY 4, 1971

To amend the Railway Labor Act to avoid interruptions of railroad transportation that threaten national safety and health by reason of labor disputes, and for other purposes

Identical bills

H.R. 4996, Messrs. Moss and Adams, Feb. 25, 1971

H.R. 4620, Mr. Roncalio, Feb. 18, 1971

H.R. 4996, Messrs, Moss and Adams, Feb. 25, 1971

H.R. 5870, Mr. Tiernan, Mar. 10, 1971

Coverage: Labor disputes in the railroad industry; coverage of labor disputes in the airline industry is open to question. The bill amends section 10 of the Railway Labor Act, which applies to the airlines as well as to the railroads. But the preamble and other provisions of H.R. 3595 imply that the bill relates only to rail carriers.

Provisions: After employees have exhausted all dispute-settlement procedures under the Railway Labor Act without an agreement, they may, subject to the limitations and obligations of partial operation as indicated below, strike all the carriers involved in the bargaining or selectively strike only some of these carriers. A strike is a "selective" strike if not more than three carriers operating in any one of the eastern, western, or southeastern regions are struck at the same time and the total revenue ton-miles transported during the preceding year by the struck carriers in any region represented not more than 40 percent of total revenue rail ton-miles in that region.

Provides for partial operation of struck carriers, as may be directed by the Secretary of Transportation. That official, after consultation with the Secretaries of Defense and Labor, shall determine the extent to which operations of any struck carrier or carriers are essential to the national health or safety, including but not necessarily limited to transport of defense materials and of coal to generate electricity, and continued operation of passenger trains including commuter service. Determination of the Secretary of Transportation shall be conclusive unless shown to be arbitrary or capricious. Partial service and transportation shall be provided pursuant to the rates of pay, rules, and working conditions of existing agreements.

Prohibits carriers which are not struck from locking out its employees. Where a carrier proposed changes to agreements affecting pay, rules, or working condi

tions and all procedures of the Railway Labor Act have been exhausted with respect to such changes without agreement, the carrier may effect the changes except where (1) the proposal was made in response to or in anticipation of employee proposals, or (2) the employees had not struck.

Miscellaneous: The approach represented by H.R. 3595 has the support of the AFL-CIO and its member unions, including the railroad unions.

H.R. 3595 is basically the same bill as H.R. 1992, introduced in the 91st Congress by Representative Eckhardt, on Dec. 8, 1970.

H.R. 9989, sponsored by Mr. Jarman, referred to Committee on July 21, 1971.

To amend the Railway Labor Act and the Railroad Unemployment Insurance Act so as to provide more effective means for protecting the public interest in labor disputes involving transportation industry, and for other purposes

Coverage: Labor relations in the railroad and airline transportation industries. Provisions: H.R. 9989 revises not only dispute-settlement procedures but also other provisions of the Railway Labor Act. Dispute-settlement recommendations of the bill are the following:

(1) Upon the failure of the National Mediation Board to successfully resolve any dispute by mediation, it must notify the Secretaries of Labor, Commerce, and Transportation who are directed to appoint an ad hoc Transportation Labor Panel which shall recommend one of the procedures outlined immediately below in (2) to be used in the further handling of the dispute.

(2) The Secretaries may either accept or reject the recommendation but, if the latter, they must recommend one of the procedures themselves: (a) take no further action;

(b) appoint a neutral board to make non-binding settlement recommendations;

(c) refer to final and binding arbitration; or

(d) submit to a "final offer selection" procedure.

Procedure 2(d) is a modified version of the final offer provision found in the administration's proposal contained in H.R. 3596. The offers that a party submits may be staggered in time so that a party can be aware of what its adversary has offered. In addition, the final offers may be subsequently revised by eliminating those matters on which the parties may reach an unconditional agreement, to encourage continuing efforts on the part of the parties to negotiate an agreement themselves. Strikes or lockouts are prohibited throughout the handling of the dispute and for 30 days after the exhaustion of the last procedure possible under section 10. The provisions of section 10 automatically apply to any unresolved dispute.

Amends the Railroad Unemployment Insurance Act to eliminate the payment of unemployment benefits to striking employees as well as those employees who refuse to cross picket lines.

Other revisions of the Railway Labor Act proposed in S. 2060 are the following: (1) Amend Section 1 Fifth to eliminate supervisors from coverage of the Act. A new section, Section 1 Eighth, is added defining the term "supervisor." (2) Amend the definition of "representative" in Section 1 Sixth to prohibit any use of a ratification procedure as a condition precedent to a valid collective bargaining agreement. In addition, Section 2 Second is amended to require representatives to be vested with full authority to enter into agreements without membership ratification.

(3) Amend Section 2 Third to permit an involved carrier to be a party to any representational proceeding.

(4) Amend Section 2 Fourth to permit employees in a representation proceeding to elect not to be represented.

(5) Amend Section 2 Ninth to provide that (a) an involved carrier may raise the question of representation of its employees and (b) the National Mediation Board must resolve jurisdiction representation disputes even where an election is not required, insulating the NMB by giving it authority to appoint ad hoc neutrals to determine this type of dispute.

(6) Amend Section 3 to abolish the National Railroad Adjustment Board, while retaining the Public Boards and special boards of adjustment. Existing criteria for judicial review of board awards are retained, as well as the Chicago River doctrine prohibiting strikes over minor disputes. Compensation for neutrals is shifted from the government to the parties.