Biden Steps in to End Freight Rail and Union Contract Disputes

US President Joe Biden on Friday signed an executive order creating an emergency board to help resolve disputes between major freight rail carriers and their unions, in a move that could help loosen some supply chain restrictions.

The order comes ahead of next week to intervene in nationwide US rail labor talks involving 115,000 workers, averting a potential strike or lockout that could threaten an already fragile economy and disrupt food and fuel supplies. If the President had not created the Presidential Emergency Board (PEB) before 12:01 a.m. PDT on Monday, railroads and unions could have decided to shut down operations or strike, respectively. The order takes effect on Monday. The board "will provide a structure for workers and management to resolve their disputes. The White House said in a statement that the Board will investigate the dispute and submit a report within 30 days of its creation recommending how the dispute should be resolved. Talks between major freight railroads, including Union Pacific (NYSE:UNP) and Berkshire Hathaway-owned BNSF, and unions representing employees have been ongoing for more than two years. The decision triggers a "cooling off" period so the two sides can work toward a settlement. "We look forward to the recommendations of the arbitrators appointed by the president," said Greg Regan, president of the AFL-CIO Transportation Trades Department, which represents many rail unions. In letters to Biden, US business groups representing retailers as well as food and fuel producers warned that failure to appoint the PEB would be "disastrous" for the softening economy. Railroads move everything from Amazon (NASDAQ:AMZN) packages to fuel oil and soybeans, and a shutdown of any kind could drive up prices of necessities and upend battered supply chains.