US Freight rail strike could cost US economy $1 billion in first week



CNN

According to new analysis by the Anderson Economic Group, a US rail freight strike could cost the US economy $1 billion in the first week of the strike.

In the first three days alone, American workers and consumers could see potential losses of a quarter of a billion dollars, as a transit strike involving rail is one of the costliest and most disruptive things that can happen to the economy.

“Economic impacts caused by a nationwide railroad strike include lost wages for industry workers and production slowdowns due to non-delivery of critical components in certain vulnerable industries,” the report said. ‘Anderson Economic Group.

These industries could include ethanol, retail and agriculture. The Retail Industry Leaders Association is calling on policy makers to intervene to “avoid self-inflicted economic catastrophe”.

“The calculations show a first-day impact of approximately $60 million, including $30.9 million for lost freight, $3.8 million for long-term disruption to passenger rail and $25 million for dollars in lost wages in the rail industry,” the analysis revealed. It does not include indirect effects or losses on other industries or loss of revenue for railway investors and managers.

Losses from the second and third day strikes would rise to $91 billion a day due to loss of agricultural produce and spoilage of food.

The four rail unions that rejected the tentative agreement with US freight railroads have set a joint strike date for Dec. 9 if they fail to reach an agreement on a new contract.

Congress could force a contract on the four unions or extend the cooling-off period to avoid a national strike, but the railroads and the unions are far apart on the main sticking point – the lack of paid sick leave.

The Anderson Economic Group is a consulting group specializing in public policy, business valuation, and market and industry analysis.

CNN’s Matt Egan contributed to this report.

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