For these and many other reasons, a nationwide rail strike would have a most crippling effect upon the economy of the United States. Sincerely, GARDNER ACKLEY. After hearing from these witnesses and determining that the dispute could not be otherwise resolved, the committee agreed unanimously to a favorable report on the resolution. PROVISIONS OF THE LEGISLATION Section 10 of the Railway Labor Act provides that where the National Mediation Board determines that a dispute threatens substantially to interrupt essential transportation services to any section of the country, the National Mediation Board shall so certify to the President who may then establish an Emergency Board to report to him within 30 days concerning the dispute. During the period the Board is considering the dispute and for 30 days after it submits its report to the President, the parties to the dispute are prohibited from making any changes except by agreement in the conditions out of which the dispute arose. As applied to the present dispute, this period expires at midnight on April 12 and the carriers are then free to make the changes in the work rules which they have proposed, and the unions are free to engage in a strike over the matters concerning which they have filed notices with the carriers. This joint resolution extends the final 30-day period involved in section 10 for an additional 20 days (until May 3, 1967). This additional period of time established with respect to the current dispute is analogous to the 80-day period prescribed in the Labor Management Relations Act of 1947 as amended. Section 10 of the Railway Labor Act currently provides for suspending the right to strike for a total of 60 days 30 days for the Board to consider and report to the President on the dispute and 30 days thereafter. This further 20-day extension makes an analogous 80-day period applicable to the current dispute. PROVISIONS OF THE LAW REFERRED To For the information of the Members of the Senate, the provisions of law referred to in the joint resolution are set forth below: SECTION 10 OF THE RAILWAY LABOR ACT (45 U.S.C. 160) EMERGENCY BOARD SEC. 10. If a dispute between a carrier and its employees be not adjusted under the foregoing provisions of this Act and should, in the judgment of the Mediation Board, threaten substantially to interrupt interstate commerce to a degree such as to deprive any section of the country of essential transportation service, the Mediation Board shall notify the President, who may thereupon, in his discretion, create a board to investigate and report respecting such dispute. Such board shall be composed of such number of persons as to the President may seem desirable: Provided, however, That no member appointed shall be pecuniarily or otherwise interested in any organization of employees or any There is hereby authorized to be appropriated such sums After the creation of such board and for thirty days after such board has made its report to the President, no change, except by agreement, shall be made by the parties to the controversy in the conditions out of which the dispute arose. REPORT OF EMERGENCY BOARD 169 For the information of the members of the Senate, the report to the President of Emergency Board No. 169 is attached. (For text of report see Related Documents, B-1, p. 445.) Mr. Staggers, from the Committee on Interstate and Foreign Commerce, submitted the following REPORT [To accompany H.J. Res. 493] The Committee on Interstate and Foreign Commerce, to whom was referred the joint resolution (H.J. Res. 493) to extend the period for making no change in conditions under section 10 of the Railway Labor Act applicable in the current dispute between the railroad carriers represented by the National Railway Labor Conference and certain of their employees, having considered the same, report favorably thereon without amendment and recommend that the joint resolution do pass. PRINCIPAL PURPOSE OF LEGISLATION Six shop craft unions and all the major rail carriers in the United States are engaged in a labor-management dispute, and unless this dispute is settled under existing provisions of law a strike shutting down all major railroads in the United States will take place at 12:01 a.m. on April 13, 1967. This resolution, which was recommended by the President in his message of April 10, extends the provisions of existing law prohibiting, for a limited time, strikes and changes in the work rules involved in this dispute for an additional 20 days (until May 3, 1967) to provide additional time for the parties to resolve the issues through collective bargaining. The sixshop craft unions have proposed pay increases changes in existing collective bargaining agreements, and representatives of all the carriers involved have proposed changes in work rules. All procedures under the Railway Labor Act have been exhausted, and on Thursday, April 13, 1967, the union members will be free to withdraw from service, and management will be free to make the changes in work rules which have been proposed. Unless this legislation is enacted or the dispute is adjusted before 12:01 a.m. on April 13, this Nation faces a shutdown of service on all major railroads in the United States. The legislation, therefore, proposes the application to the current dispute of an additional 20 days "cooling-off period," to permit the parties to resolve the issues themselves through collective bargaining. It was pointed out in the report of Emergency Board 169 established to deal with this dispute that "no real bargaining had actually taken place between the parties before their appearance before the Board." During this 20-day extension, the unions may not engage in a strike over these issues, and the carriers may not make any changes, except by agreement, in the proposed work rules or other conditions of employment involved in the dispute. BACKGROUND OF THE DISPUTE The carriers involved in this proceeding include almost all of the class I railroad industry in the United States, and account for over 95 percent of the total railroad mileage in the United States. The employees involved in the dispute are members of the following unions: International Association of Machinists & Aerospace Workers; International Brotherhood of Boiler Makers, Iron Ship Builders, Blacksmiths, Forgers, & Helpers; Sheet Metal Workers' International Association; International Brotherhood of Electrical Workers; Brotherhood of Railway Carmen of America; International Brotherhood of Firemen & Oilers. These organizations represent approximately 137,000 shopworkers, consisting primarily of journeymen mechanics, their helpers and apprentices, powerhouse employees, and railway shop laborers. On May 17, 1966, the organizations served notices under section 6 of the Railway Labor Act, requesting pay increases and other changes in work rules. In June 1966, various proposals were served on the unions by individual carriers proposing revision of work rules. Negotiations then began on a national level. On September 28, 1966, the services of the National Mediation Board were requested, and mediation was conducted intermittently from October 19, 1966, through January 6, 1967. On the latter date, the National Mediation Board advised the parties that its mediation efforts had been unsuccessful and proferred arbitration. The carriers accepted, and the organizations declined arbitration. On January 13, 1967, the National Mediation Board notified the parties that it was formally terminating its services. The Railway Labor Act provides that when arbitration has been refused, the National Mediation Board shall at once notify both parties in writing that its mediatory efforts have failed and for 30 days thereafter no change shall be made in the rates of pay, rules, or working conditions or established practices in effect prior to the time the dispute arose. At this point the organizations, having already received strike authorization from their membership in the event a satisfactory settlement was not negotiated, called for a withdrawal from service February 13, 1967, 30 days after the notice of January 13 from the Board. The National Mediation Board then notified the President in accordance with section 10 of the Railway Labor Act that the dispute threatened to substantially interrupt interstate commerce so as to deprive the country of essential transportation service, and the President thereupon created Emergency Board 169. The Board held 7 days of hearings between February 1 and February 9. The record of the proceedings before the Board consist of 1,073 pages of testimony and 36 numbered exhibits. Following the creation of the Board, the parties agreed to extend the time within which the the Board was required to report its findings to the President until March 13, 1967, and agreed to extend the period within which changes may not be made, except by agreement, by the parties to the controversy in the conditions out of which the dispute arose. Under section 10 of the Railway Labor Act when such an emergency board is created, it is required to report to the President on the dispute within 30 days, and during that 30 days and for 30 days following the submission of the report to the President, no change may be made by the parties to the dispute, except by agreement, in any of the conditions out of which the dispute arose. The highlights of the report are: (1) That the labor organizations accept, effective January 1, 1967, a 5 percent general wage increase and an improvement in vacations by accepting 3 weeks after 10 years; (2) the Board recognizes that there has been a compression of wage differentials between skilled and unskilled shop craft employees and recommends that the parties agree upon the establishment of an escrow fund as a downpayment to correct existing wage inequities, and thereafter enter into an agreement establishing a job evaluation study which, hopefully, would establish acceptable wage differentials. The report also recommended that if the parties are unable to consummate an agreement in either instance, they should agree to submit the matter to arbitration. Several meetings have been held by the parties since the issuance of the report, but the dispute has not yet been resolved. IMPACT OF A NATIONWIDE RAILROAD STRIKE In his message to the Congress calling for the enactment of the pending legislation, the President stated that the cost of a nationwide railroad strike would be incalculable. He pointed out the following immediate and short-term consequences: On the first morning of the strike three-quarters of a million rail commuters in New York, Chicago, and Philadelphia alone would be unable to take their trains to work. Shipments of perishable foodstuffs to many major cities would be halted at once. Actual food shortages could soon occur in several cities. Some health hazards would develop. For example, supplies of chlorine used to purify community water supplies would grow short. The coal mining industry, with 140,000 workers, would cease operations almost at once. Many other industries which rely heavily on the railroadssuch as metal mining, steel, chemicals--would be badly crippled and soon begin to close down. For a week or more most factories could operate from their inventories. Soon, shortages and bottlenecks would begin to curtail production drastically. A spreading epidemic of lost production and lost jobs would sweep through the Nation. A 1-month strike would reduce the gross national product by 13 percent. That would be nearly four times as great as the |