Popular Information - Railroading workers
Too often, the media treats the news as a game. It's about who is up and who is down — who is winning and who is losing. Popular Information takes a different approach. We believe our work should focus on people. We believe that, at its best, journalism can have a positive impact on people's lives by holding the powerful accountable. Our reporting has helped secure guaranteed sick leave for 170,000 restaurant workers, pressured large corporations to cut off donations to members of Congress who voted to overturn the election, and pushed Koch Industries to wind down its business in Russia. You can support this work — and help us do more of it — by upgrading to a paid subscription. Railroad workers across the country are threatening to go on strike on December 9, delivering a potentially crippling blow to the American economy. According to the Association of American Railroads, a nationwide rail shutdown could cost more than $2 billion per day. There are 140,000 miles of rail in the United States, which are operated by about 115,000 rail workers. This network serves "nearly every agricultural, industrial, wholesale, retail and resource-based sector of our economy." Passenger rail would also stop, disrupting hundreds of thousands of commuters. The dispute boils down to one issue: paid sick leave. Rail workers and railroad companies are at an impasse after more than two years of negotiations. In July, Biden named a Presidential Emergency Board (PEB) in an effort to help resolve the dispute and avoid a strike. The PEB issued recommendations that formed the basis of a tentative agreement in September between the railroad companies and 12 unions. The deal did not include any paid sick leave. The tentative agreement was subject to ratification by the members of the rail unions. And a majority of workers at four of the 12 unions rejected the deal. The unions that voted against the deal represent 60,000 rail workers, including the largest rail union, SMART Transportation Division. And the 12 unions have agreed to honor each other's picket lines. That sets up the possibility of a strike beginning on December 9, when a "cooling off" period expires. The tentative agreement did secure significant pay increases for rail workers, raising wages by about 24% over 5 years. The unions, however, note that the increase does not even keep up with the pace of inflation. But wages don't appear to be the primary sticking point. Railroad companies have adamantly refused to include any short-term paid leave. That means rail workers must report to work, even when they are sick, or forfeit their pay. "It’s an insane and cruel system, and these guys are fed up with it," Peter Kennedy, chief negotiator for the maintenance workers union, which rejected the deal, said. Rail workers say that some colleagues come to work with COVID because they can't afford to take time off. The maintenance workers are seeking a deal with at least four paid sick days. The railroad companies, according to the union, are unwilling to negotiate. Rail workers have demanding jobs, often requiring them to be on the road for weeks at a time. Further, over the last six years, "major railroads have reduced their work forces by nearly one-third," increasing the workloads for workers that remain. On Monday, a coalition of hundreds of business groups, organized by the U.S. Chamber of Commerce, wrote to Congressional leaders and demanded they pass legislation prohibiting rail workers from striking.
But the corporate trade organizations that signed the letter helped create the current crisis. Among 22 highly-developed nations, the United States is the only one that does not require employers to provide paid sick leave. Spain requires 16 days of paid sick leave, Belgium provides at least one month, and the UK guarantees at least 28 weeks. For more than a decade, members of Congress have introduced legislation, the Healthy Families Act, that would require all businesses with at least 15 employees to provide seven paid sick days each year. If the Healthy Families Act were law, there would probably not be a looming strike because the railroad companies would be legally required to provide paid sick leave. The Healthy Families Act has not passed Congress "largely because corporate lobbyists mounted a fierce effort to block it." In 2014, a column by staffers for the Employment Policies Institute, a corporate front group, asserted that "paid sick leave is a cure worse than the disease." A permanent paid sick leave requirement was initially included in one of the coronavirus relief bills, but it was removed at the insistence of business groups and Republican lawmakers. Congress could avert a rail strike by passing the Healthy Families Act. Instead, corporate lobbyists are demanding that Congress prevent rail workers from securing paid sick leave through collective bargaining. In a statement released Monday evening, Biden urged Congress to give the railroad companies and corporate lobbyists what they want.
Congress has a variety of options. One possibility would be to impose a modified agreement that includes paid sick days. The railroad companies could certainly afford it. The railroad industry's record profitsProviding 15 days of paid sick leave would cost the industry roughly $688 million per year, according to the rail companies. But with railroad profit margins at record highs, this cost would hardly harm profitability. BNSF, one of the largest railroad freight carriers, saw its net income climb four percent to $4.5 billion in the first nine months of this year. Last year, the railway raked in $6 billion in profits, a 16% jump from the year prior. Its parent company, Warren Buffett’s Berkshire Hathaway, also spent at least $32 billion since last year buying back stock. This tactic, which was considered a form of market manipulation until 1982, drives up stock prices by reducing the number of shares in the market. Company executives who derive most of their compensation from stocks have every incentive to invest corporate profits towards buybacks instead of workers. Last week, Buffett added $1.38 billion to his net worth in a single day after Berkshire Hathaway closed at a high price – that’s twice as much money as it would cost to fund 15 days of paid sick leave for every rail worker in the country. Buffett's BNSF is notorious for penalizing workers for taking time off for “fatigue, family emergencies or illness.” Workers at the railway also say they’re expected to be on call 90% of the time, including throughout the night. Similarly, Union Pacific, the largest railroad in the U.S., said it had its “most profitable year ever in 2021,” reporting $6.5 billion in profits. More recently, the railway posted a net income of $5.4 billion for the first nine months of the year, an 11% increase from a year ago. Compared to 2000, the railway today employs 18,000 fewer workers but makes 85% more in revenue. Since 2021, the company has also spent nearly $13 billion repurchasing its own stock – enriching Union Pacific executives at the expense of their workers. CSX also reported a 15% increase in net earnings last quarter. The railway’s net income for the first nine months of the year reached $3.1 billion. It also reported spending $3.7 billion so far this year repurchasing shares. Norfolk Southern made a record $3 billion in income in 2021, a 27% increase from 2020. In the first nine months of 2022, the railway has surpassed where it was during the same time in 2021, increasing its net income to $2.5 billion. Meanwhile, as profits soar, some of the largest U.S. railroads have also significantly slashed their spending on labor over the years. “In 2001, the four railroads spent about $8.7 billion on compensation and benefits to generate $25.6 billion. In 2021 the companies spent 10% more on labor but brought in nearly double the amount of revenue,” More Perfect Union reports. |
Key phrases
Older messages
Normalizing white supremacy
Monday, November 28, 2022
Last week, Donald Trump — the former president and leading candidate for the Republican nomination in 2024 — had dinner at his Mar-a-Lago club with one of the nation's most prominent white
All corporations want for Christmas is a $131 billion tax cut
Monday, November 21, 2022
In 2017, with Trump in the White House, Republicans in Congress passed a massive tax cut for corporations, reducing the basic corporate tax rate from 35% to 21%. From there, corporations have an
Trump's paymaster
Thursday, November 17, 2022
On Tuesday night, Trump announced he was running for president for the third time. The coverage of his announcement was broadly critical, focusing on the poor results of the candidates he endorsed in
Seven politicians are returning FTX's tainted money — others are keeping quiet
Wednesday, November 16, 2022
Last Friday, the crypto exchange FTX, founded by Sam Bankman-Fried, abruptly declared bankruptcy after it was unable to fulfill customer requests for withdrawals. According to documents filed this week
Fossil fuel industry dupes media, quietly funds non-profits to block renewable energy
Tuesday, November 15, 2022
Shortly after he took office, President Biden announced a goal of building 30 gigawatts (GW) of offshore wind by 2030, enough clean energy to power 10 million homes. For the administration, the
You Might Also Like
What A Day: A-drone again (naturally)
Saturday, April 20, 2024
Israel hit back at Iran but in a more tartgeted scope than expected ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
The Idea of Presidential Immunity Is Not As Ridiculous As You’ve Heard
Friday, April 19, 2024
Columns and commentary on news, politics, business, and technology from the Intelligencer team. Intelligencer the law The Idea of Presidential Immunity Is Not As Ridiculous As You've Heard Still,
I Found a Sample Sale at Staud
Friday, April 19, 2024
22 Things on Sale You'll Actually Want to Buy: From Bioderma to PicassoTiles The Strategist Every product is independently selected by editors. If you buy something through our links, New York may
An Exclusive Interview With Wemby
Friday, April 19, 2024
View in your browser Twitter Facebook Instagram Share | Subscribe The Ringer April 19, 2024 Welcome to the tortured playoffs department? NBA Getty Images/Ringer illustration Twenty-year-old San Antonio
On the Shoulders of Giants
Friday, April 19, 2024
Feel Good Friday, Weekend Whats ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
Seattle startup vet leads the new ‘Homebrew Computer Club’ for AI
Friday, April 19, 2024
In-home health screening startup raises $14M | AI's impact on biopharma ADVERTISEMENT GeekWire SPONSOR MESSAGE: Science Firsthand: Learn how Bristol Myers Squibb unlocked the potential of CAR T
Dove's New Campaign, Stunning Interactives and the Two Kinds of Attention
Friday, April 19, 2024
Ten stories that have given us creative inspiration this week ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
Why so many publishers have failed at copying Wirecutter
Friday, April 19, 2024
PLUS: How Joe Pulizzi built and sold The Tilt, a newsletter and conference business geared toward creators ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
A nearly perfect pan
Friday, April 19, 2024
It only gets better with time ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
☕ Four plenty
Friday, April 19, 2024
Cannabis retailers' big day. April 19, 2024 Retail Brew PRESENTED BY Feedonomics It's Friday, and tomorrow, as we note below, is 4/20, the biggest day in cannabis retail. But food brands are