By Lauren Fix, The Car Coach
You may have heard about the rail strike, and that the offer was so huge that the unions initially agreed to accept it. Now we have a new wrinkle, the rail strike that could cripple the US economy is back on the table because the USs third largest railroad union rejected a deal with employers.
This rejection renews the possibility of a strike that could cripple the economy. Both sides will return to the bargaining table before that happens. The contract offer was huge, it was a five-year contract with a 24 percent raise in wages and $5,000 in bonuses. Yet over half of track maintenance workers represented by the Brotherhood of Maintenance of Way Employees Division voted to oppose it. The Union President, Tony Cardwell, said the railroads didn’t do enough to address the lack of paid time off (particularly sick time) and the working conditions of the major railroads. The major railroads have also eliminated nearly one-third of their jobs over the past six years.
So why does this matter to you?
The US rail strike could cost $2 billion a day and spark commuter chaos for hundreds of thousands of commuter and cargo trains. Regional agencies are planning for stoppages and Amtrak could again cancel long distance-service.
If you thought the pandemic of the last two years led to a lot of disruptions and shortages, think about what a nationwide railroad strike would do. If there is a strike, Congress (which in the past has ordered railroaders back to work) will remain paralyzed amid the usual partisan bickering, with Republicans bashing the unions and Democrats faulting management.
As labor and management try to hash out an end to the strike, Americans will feel the effects of product shortages for months.
To give you an idea of the impact, the cost: a slice of pizza jumped from $3 to $5 amid looming flour shortages. Some heating oil companies, delivered by rail, will have low supply, and prices will increase leaving customers forced to being turn down their thermostats. If there is no product to build things, factories will lay off workers. A strike will impact the shipment of goods for the Christmas and Holiday shopping season, hitting both retail outlets and online sales.
This is a worst-case scenario for sure! No one is definitively predicting this outcome. But it illustrates how much a halt to rail traffic would impact the national economy.
Here’s the kicker, the union moved the vote to after the 2022 election. The biggest concern is if you offer unions a 24 percent raise, and they turn it down, that will be a statement to other unions to ask for even more as well. This will increase labor costs and squash the economy, increase inflation, and result in more economic decline. Consumers cannot afford it. These massive increases in prices will be transferred down to the cost of literally everything you buy.
If even one of the dozen rail unions voted down a contract and went on strike, the other units would likely honor that and stay off the job as well, causing a shutdown. Other unions are watching and will demand an equal increase in wages and benefits. This could be a nightmare.
There is so much more to discuss on this, put your comments below and let’s start the conversation.
The opinions expressed in posts to the NMA Blog belong to the author and do not necessarily represent the National Motorists Association. The content of the NMA Blog is for informational purposes only and is not intended as legal advice. No representations are made regarding the accuracy of NMA Blog posts or links found within those posts.
Lauren Fix, The Car Coach®, is a nationally recognized automotive expert, analyst, author, and television host. A trusted car expert, Lauren provides an insider’s perspective on a wide range of automotive topics and aspects, energy, industry, consumer news, and safety issues.
Lauren is the CEO of Automotive Aspects and the Editor-in-Chief of Car Coach Reports, a global automotive news outlet. She is an automotive contributor to national and local television news shows, including Fox News, Fox Business, CNN International, The Weather Channel, Inside Edition, Local Now News, Community Digital News, and more. Lauren also co-hosts a regular show on ABC.com with Paul Brian called “His Turn – Her Turn” and hosts regular radio segments on USA Radio – DayBreak.
Lauren is honored to be inducted into the Women’s Transportation Hall of Fame and a Board Member of the Buffalo Motorcar Museum and Juror / President for the North American Car, Utility & Truck of the Year Awards.
Check her out on Twitter and Instagram @LaurenFix.
