In addition to the GIF above haunting your dreams, a national rail strike could haunt the U.S. economy starting next week. 😱
Labor negotiations between the National Mediation Board, unions, and freight railroads, are coming to a head after years of back and forth. If they can’t agree, more than 100,000 Class I railroad employees will strike. As a result, both freight and commuter rails would be affected as the 140,000-mile network of rails across 49 states grinds to a halt.
Unions can walk off the job again at midnight on September 16th, when the 30-day cooling-off period ends. 📆
A report from the Association of American Railroads projects that the economic impact of a nationwide strike could be more than $2 billion per day. In addition, its report notes that there are not enough trucks or truck drivers to compensate for the lost freight capacity. The economy would need an additional 467,000 long-haul trucks daily to handle the freight currently moved by rail.
The shutdown would further exacerbate the supply-side economic issues facing the U.S. and the world. With inflation already running hot, nobody wants to see this result in further price increases. 🔺
However, many view a shutdown as inevitable at this point. Not even the emergency board appointed by President Biden could put forward an agreeable solution. The railroads say they are offering the most substantial wage increases in at least 40 years. In contrast, unions say the rail carriers are stalling to get the Federal Government to take additional action. 📝
And they might just get the further intervention they’re seeking.
Industries from retail to agriculture have called on Congress to intervene and prevent the shutdown. And given the potential economic impact and the coming midterm elections, the administration will want to avoid this crisis if it can.
How this plays out is anyone’s guess. All we know for sure is that a bad situation can get a lot worse if they don’t reach a deal by the end of next week. 😨