Threat of Railroad Strike Still Exists: How it Might Affect You
Back in September, hope appeared when four unions, part of the coalition for National Freight Rail Bargaining, approved the agreements. In order to avoid a possible strike, all twelve unions must ratify the contract. Recently, The Brotherhood of Maintenance of Way Employees Division voted against the 5-year proposed contract. Stating that the contract did not do enough to address their concerns over paid sick time or improved working conditions.
All is not lost though; The Brotherhood of Maintenance Way has agreed to not strike until after Congress comes back into session in November. White House assistant press secretary Robyn Patterson stated that, “The President remains focused on avoiding a rail shutdown, and both sides have said they share that desire.”
What Could A Railroad Strike Mean For You
The Railroad Industry accounts for almost 30% of all freight delivered in the United States. With current supply chain issues and rising inflation, this new stressor only adds to fears of economic recession. According to economist Patrick Anderson, “a strike will mean reduced gas production, spoiled crops, a choked off supply of new cars, and empty shelves at stores over the holidays.”
If a railroad strike occurs it would create a domino effect, leading to more goods sitting in ports and on ships. Our current infrastructure does not have a readily available alternative. Chris Spear, CEO of the American Trucking Association, estimates that it would require 460,000 additional long-haul trucks every day to meet the demands. And with a shortage of 80,000 truck drivers for current demands, there doesn’t seem to be much hope in that solution.
Please reach out to the Professionals at The Center for Financial, Legal, & Tax Planning Inc., at (618) 997-3436.