Riding the Rails

Midweek, things looked bleak for the nation’s railroad network. But after a marathon negotiating session, the Biden administration announced a tentative deal had been reached to avoid a rail strike. Analysts warned a work stoppage of that kind would snarl transportation of goods and workers, upending the economy and sending inflation higher.

As part of the deal, union members will get a 14% raise immediately, as well as back pay dating back to 2020. In addition, there are built-in raises totaling 24% through 2024, when the current five-year contract expires. On average, union members are looking at $11,000 in payment.

Still, money aside, work rules and scheduling issues were reportedly the biggest roadblock in negotiations. Details aren’t yet clear, but it would appear the rail unions achieved major concessions in that area.

Money Isn’t Everything

Prior to Thursday’s breakthrough, several rail unions had already agreed to deals, centered on the 24% pay increase. Of those that had not agreed was a union representing two-person crews on freight trains, made up of a conductor and engineer. The representatives from those unions argued the staffing and scheduling rules requiring members to always be on call were unacceptable. Notably, a freight train disruption would have further challenged the already beleaguered supply chain.

Simply put, employees seem to be demanding better working conditions. This same is true of a nurses strike in Minnesota, which reportedly centers on scheduling and staffing issues. In California and Hawaii, Kaiser Permanente health professionals are on strike due to alleged insufficient staffing.

Wages vs. Inflation

While there are undoubtedly concerns beyond money when it comes to negotiations between employers and employees, wages are certainly a point of contention. In that respect, many American workers say things are getting out of whack.

A new survey from Bankrate suggests wages, which admittedly grew throughout the pandemic, aren’t keeping pace with the rate of inflation. With pricing rising at the fastest rate in 40 years, 55% of respondents say their income has fallen behind everyday expenses. Meanwhile, the nation is experiencing a labor shortage. The next few years could be instrumental in shaping the worker experience.

Things are changing daily within the financial world. Sign up for the SoFi Daily Newsletter to get the latest news updates in your inbox every weekday.

Sign up

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS22091601

The post Crisis Averted? What To Know About the Rail Strike That Wasn’t appeared first on SoFi.