A potential month-long railroad strike can cost the economy $160B and a 1% decline in GDP|RedMorris|CC BY-NC-ND 2.0
The US is on the brink of a nationwide railway strike. Four freight rail unions comprising up to 60,000 railway workers have said ‘no’ to a Biden-brokered labor deal.
Though the labor deal struck a 24% pay increase by 2024, railway workers seek work-life benefits like sick leave. Negotiations will continue, but if there is no deal before December 8, 115,000 freight rail workers around the country can be expected to go on strike.
How does this affect us?
In the country, 30% of freight moves by rail. This includes everything from chlorine to corn to cars. A potential month-long strike can cost the economy $160 billion and a 1% decline in GDP.
People could even lose access to drinking water. Just this September—before the labor deal talks began—rail companies stopped shipments of all hazardous chemicals for a week. Nearly 2,000 carloads sat still. These contained critical necessities like chlorine to clean water and ethanol and ammonia used for fertilizer.