Key Issues

As bargaining continues, freight railroads remain focused on ensuring the health of the industry for years to come. Although rail traffic has fallen across numerous sectors since the bargaining began, the railroads must still invest billions of dollars each year to maintain and modernize the 140,000-mile network and comply with costly federal mandates. Factors such as employee compensation also affect the industry’s financial footing. Bargaining demands for excessive wage increases and preservation of a costly health care plan, far outside the mainstream, are counter to prudent management of labor costs.