As the 2010 bargaining round commences, the railroads and their employees must work together to ensure the industry weathers the current economic storm and continues to prosper in the years to come. Just at it has with all American business, the economy has cut deeply into the revenue and profits of all the nation’s major freight railroads. And most experts predict a slow recovery for the U.S. economy. To ensure the railroads’ vitality, they must balance investing in employees and in the future of the freight rail networks.
In particular, the dramatic escalation in health care costs is putting additional financial pressure on the railroads. The railroads and labor will need to work together to better manage and balance the increasing cost of health care while continuing to provide comprehensive benefits for employees and their families. At the same time, railroads will continue to invest in safety; according to the Federal Railroad Administration (FRA), railroads will spend approximately $5 billion to install positive train control (PTC) systems.