There have been two dozen emergency-board
WASHINGTON—The White House, in an unusual but not unprecedented move, has stepped into an impasse between major freight railroads and labor unions, attempting to avert a potential strike as early as December.

The Obama administration appointed a "presidential ugg boots outlet emergency board" Thursday to resolve stalled contract talks that began in early 2010 and cover about 94,000 workers, roughly two-thirds of the industry's unionized worker, at more than 30 railroads.

There have been two dozen emergency-board appointments since 1990, including a 2007 intervention in labor talks between Amtrak and its workers, but this is the first board for major freight railroads since 1996. The impasse comes as railroads continue to rack up big profits, with Union Pacific, CSX and Norfolk Southern posting six consecutive quarters of double-digit profit gains as of July, 2011.

Labor unions argue they deserve a bigger cut of that revenue. But the industry contends it has offered generous wage increases and that labor's demands would eat into the estimated $12 billion the industry plans to spend this year on track improvements and other capital expenditures.

A strike is ugg boots for sale still viewed as unlikely, but the prospect of a disruption of freight shipments during the holiday season has raised the stakes. Industry officials say a strike would cost $2 billion a day.

"Freight rail is vital to our economy and our future," President Barack Obama said in a statement. "A disruption could affect businesses across the country and cause unnecessary damage to our already-fragile economy."

The five-member board will hear arguments from each side and then recommend contract terms within 30 days. The parties will then have 30 additional days to review the recommendations and work out a deal, or a strike could occur.

Railroads and the industry's largest union, United Transportation Union, reached a tentative deal this summer that the industry wants to serve as a model for contracts with the other unions. United Transportation represents about 40,000 employees. The remaining unions rejected an offer that would have increased wages by 17% over six years, said the National Carriers' Conference Committee, representing railroads in the talks.

"These robust increases are exceptional," A. Kenneth Gradia, uggs outlet the committee's chairman, said in a statement.

Union representatives couldn't immediately be reached for comment. The Transportation Communications International Union said in June that the railroads' proposal would include insufficient wage increases and unfairly shift health-care costs to employees.