A nationwide railroad strike could devastate the US economy.
Here is what you need to know about the situation π§΅
Here is what you need to know about the situation π§΅
The heart of the issue is that railroads do not have enough people to handle current demand.
There is so much activity that the railroads are constantly playing catch up.
Workers face demanding schedules, like being on call 24/7 or having no say in their schedules.
There is so much activity that the railroads are constantly playing catch up.
Workers face demanding schedules, like being on call 24/7 or having no say in their schedules.
You might think that rail is becoming outdated, but itβs actually just as critical to our supply chain as itβs always been.
Rail is the second-most used mode of transporting freight in the US, behind trucks.
Rail is the second-most used mode of transporting freight in the US, behind trucks.
Here is just one example of how devastating issues with rail can be:
The Solid Waste Division in Washington State transports 600,000 tons of waste annually.
Garbage piled 45 feet high at a trash facility due to lack of shipping containers and labor.
The Solid Waste Division in Washington State transports 600,000 tons of waste annually.
Garbage piled 45 feet high at a trash facility due to lack of shipping containers and labor.
Unions have tried to intervene, especially on the point of paid sick leave.
Historically, railroad workers have lacked paid sick leave.
Instead, unions negotiated for higher wages and better disability benefits instead of pushing for paid sick leave.
Historically, railroad workers have lacked paid sick leave.
Instead, unions negotiated for higher wages and better disability benefits instead of pushing for paid sick leave.
But now, the issue has reached a tipping point. Many workers are unable to call off for even one day without facing disciplinary action.
A few months ago, negotiations between the railroads and the 12 unions representing workers stalled.
A few months ago, negotiations between the railroads and the 12 unions representing workers stalled.
The unions rejected a deal that would give workers 24% raises and $5k bonuses instead of improved paid sick leave.
Unions point out that railroads have eliminated about β of all jobs but still expect the remaining workers to cover the same amount of work (if not more).
Unions point out that railroads have eliminated about β of all jobs but still expect the remaining workers to cover the same amount of work (if not more).
The railroad companies and unions had until December 9th to reach an agreement.
Unions vowed to strike on December 9th if an agreement wasnβt reached.
Railroads warned that a strike would cost the US economy over $2 billion PER DAY.
Unions vowed to strike on December 9th if an agreement wasnβt reached.
Railroads warned that a strike would cost the US economy over $2 billion PER DAY.
Last week, Joe Biden signed a bill that basically forced that previous offer to be agreed on.
The bill also makes the coming strike illegal: Workers cannot walk off the job site.
The bill also makes the coming strike illegal: Workers cannot walk off the job site.
8 of the 12 unions had previously agreed to the proposal that lacked sick days, but 4 of the unions were holding out.
Biden and Congress essentially forced those 4 unions to accept the agreement, without the ability to strike.
Biden and Congress essentially forced those 4 unions to accept the agreement, without the ability to strike.
Whatβs next?
The US rail system should continue to run smoothly (for now), but this is just a temporary fix to make sure the supply chain remains intact through the holiday season.
Iβll keep you updated on what happens next.
The US rail system should continue to run smoothly (for now), but this is just a temporary fix to make sure the supply chain remains intact through the holiday season.
Iβll keep you updated on what happens next.
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