In Minnesota public labor, if the parties are unable to arrive at a mutually agreeable settlement through negotiations or mediation, there are two alternatives for the parties.  If the employee group is an essential group under PELRA, they go to interest arbitration.  If the employee group is considered non-essential, they have the right to strike after filing the appropriate paperwork and waiting the correct period of time.

For private employers, the traditional route is for employee groups who cannot reach settlement is to go on strike.  That is, unless that employee group is responsible for the cross-country distribution of goods, it’s the holiday season, and the group is covered by the Railway Labor Act.  In those situations, the U.S. Congress (and the President) tell the employees to get back to work.

Last week, the U.S. House of Representatives passed a resolution forcing unions to accept a tentative agreement reached earlier in the year between railroad managers and their workers, despite four of the groups voting down the agreements.  The apparent sticking point between the groups was the available number of sick leave days workers would have for the duration of the agreement.  Railway management wanted some form of quid pro quo for additional sick leave days, while the bargaining units believed they should receive them without giving up any language concessions or benefits (it’s going around).

However, under the Railway Labor Act, if the sides are unable to reach agreement, Congress has the authority to step in and impose a contract under which the parties are obligated to work.  While the Act is in place to help avoid work stoppages, it appears to be providing a safeguard for employers to avoid giving up too much at the bargaining table, and falling back on Congress’s ability to impose unfavorable terms on bargaining groups.

At the same time the House passed the measure to avoid the strike, it passed a separate vote that would have allowed for seven days of sick leave for members of the railroad labor groups.  However, in both situations, the measures had to pass both the House and the Senate.  While the vote to impose the terms of the contract survived in the Senate, the vote to add the sick leave to the contract failed.

We may never know what the ultimate agreement may have looked like if the employee groups had the ability to strike without Congressional intervention.

In Minnesota, the legislature has no authority to enforce the terms of an agreement if the parties don’t agree.  While essential groups are unable to go on strike, they are allowed to have their cases heard by interest arbitrators.  In this case, an interest arbitrator would have been very interested to hear of the $21.2 billion in profits for the railroads over the last year, and the relatively low cost of the sought-after sick leave benefit to the companies.  Without legislation to protect employers from fully engaging in good faith bargaining, it is crucial for employers and unions to understand their positions and strike a fair deal for both sides.  If you, or your organization, need assistance with contract negotiations, mediation, interest arbitration, or strike preparation, contact Wiley Reber Law, for experience that works.