Moving 40% of all freight around the US, railroads remain just as important today as they did back during their real hey day of the early 1900’s.
Which is why the potential for a railroad labor strike continues to bubble up in the news.
1/6
A shutdown in rail freight would leave cars and engines stranded on track, costing the US an estimated $2 billion per day of shutdown.
2/6
8 of the 12 railroad unions have voted yes on the most recent compensation package, 4 no. The package included:
• 25% raise
• $11,000 immediate backpay
• $1000 per year bonus
3/6
Now I don’t think the strike will stand for a long period of time if it does happen, if any one union strikes all the unions will honor the picket line.
However, with a majority of unions approving, Congress can force the deal to go through and outlaw a strike.
4/6
Congress doesn’t want to do this because Democrats hold the house and are very Union friendly but ultimately the Democrats negotiated this deal—which is not a bad deal—for the union—President Biden stepped in directly to help negotiate it in the months before the vote.
5/6
So it stands to reason that they’ll force them to accept it should a strike happen.
On the market side, if you’re curious, railroads are some of the best performing stocks over the past decade with the majors up on average about 425%.
/fin
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Phil Andrews
@phlndrws
@maxinomics with @morningbrew - All around GT - ❤️ Data - 🏄🏻‍♂️🥾
