Railroad Labor Unions – Congress Pushes to Avoid Rail Strikes 🚆

Railroad Labor Unions – Congress Pushes to Avoid Rail Strikes

Adding on to the economic worries the United States has faced this year, the chances of a nationwide railroad strike are growing by the day as Congress now sets to enact a plan of action to avoid the dilemma at all costs. In a tumultuous labor market, railroad workers have threatened to strike against railroad companies after months of anger regarding refusals to offer paid sick leave and other concerns. The strike, which can include up to 115,000 union members, would disrupt an already shaken industry that can cause a loss of up to $2 billion daily. As transportation has already been damaged by the pandemic and rising energy prices, a massive strike would further lead to greater supply shortages and inflated prices on goods.

Seeing the huge downside such an act could have on a weakened economy, Biden and Congress have set a plan of action to guarantee this event does not occur. They propose a ban on the union’s ability to strike against the railroad companies, at the cost of these members’ sick leave. Additionally, a rail strike was avoided previously after these workers were granted a 24% pay hike until 2024, but 4 out of the 12 unions in dispute did not take the deal. Nevertheless, the bill proposed by Biden to halt these strikes will need 60 votes to advance past Senate, and if it fails, Congressional leaders will need to return to the negotiating table. As the dilemma unfolds, investors should understand that railroads, which can potentially have these strikes as early as December 9th, transport 95% of ethanol in gasoline, 25% of all domestic grains, and a substantial portion of retail merchandise.

Want to learn how to invest? Download the Invstr app, where you can play Fantasy Finance and manage a virtual investment portfolio or open a brokerage account and invest for real. Take our interactive investing course on Invstr Academy and become a better investor today!

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

Share:

More Posts

Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community.The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results.Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such.Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.