The looming railroad strike

According to recent news reports and if the existing situation does not change, a railroad strike will begin on Dec. 9. This is important because approximately 30% of the freight in this country moves by rail.

The contract offered by management, which was voted down by four of the 12 unions, provided for raises slightly ahead of inflation. But health care premiums would almost double, and it did not deliver any paid sick days, a major disappointment to workers.

During the 2000s a number of railroads consolidated. And then the companies realized they had the power to control prices. The dominant business model in the railroad industry shifted from one in which the carriers sought larger volumes of traffic to one in which they sought to increase profits by raising prices and lowering expenses such as labor costs. Railroad managers cut staff and ask more from the employees who remained. The railroads have been highly profitable, setting new records in 2021. In part, because they have reduced the workforce by around 30%.

It is interesting to note that in the report produced by President Biden's emergency board, the railroads maintain that capital investment and risk are the reasons for their profits, not any contributions by labor. Labor negotiations require a thick skin. But it would seem that the managers who made a statement such as this one should not be surprised when their employees express resentment. Language such as this will not lessen the chances of a strike.

JOHN PIEPHO, Cape Girardeau