A potential freight rail strike due to failed labor negotiations could cost the US economy $1 billion in the first week unless averted, CNN reported on Wednesday
WASHINGTON (Pakistan Point News / Sputnik - 23rd November, 2022) A potential freight rail strike due to failed labor negotiations could cost the US economy $1 billion in the first week unless averted, CNN reported on Wednesday.
The first three days of a strike could cost the economy a quarter billion Dollars due to the disruptive nature of such an event, the report said, citing a new analysis from the Anderson Economic Group (AEG).
"Economic impacts caused by a national railroad strike include lost wages for the industry's workers and production slowdowns due to non-delivery of critical components in some vulnerable industries," the AEG analysis said as quoted in the report.
Impacted industries could include ethanol, retail and agriculture, the report said.
Rail unions are threatening to begin a strike on December 9 unless a deal is reached with carriers on issues such as rates of pay and benefits.
The Biden administration is directly engaged with parties in the negotiations, the White House said.
