THE THREATENED RAILROAD STRIKE
A railroad strike could do major damage to the US economy. Rail freight dominates in shipments of 1,000 to 2,000 miles; trucks dominate in distances of up to 1,000 miles. Railroad workers are one of the last bastions of unionized workers in the US.
The railroad workers have been without a contract for the last two years. The Biden administration averted a strike in September by brokering a deal for a new contract, including a large wage increase. This deal was rejected by 4 of the 12 unions covered by the agreement because it contained no provision for sick leave. Pres. Biden has forced the unions to accept the contract anyway.
The railroads have cut their workforce by 45,000 jobs in recent years (29%). This has allowed them to hand out $200 billion in stock buybacks and dividends since 2010, and the pandemic has driven profits to new heights. Cutting back on workers increases the pressure on remaining workers. This pressure has included long shifts on short notice and penalties for calling in sick and going to the doctor.
By forcing a contract on rail workers, Pres. Biden and Congress chose a quick rather than a just solution.Â
(Sources: The New York Times, 11/21/22 and 12/2/22 and US Dept. of Transportation, 2019)