MEMPHIS, Tenn. — If you haven’t heard of the looming railway strike, get ready. In a distribution hub like Memphis, it could have a huge impact.
It could happen as soon as this Friday.
It’s been a year when it comes to everyone's pockets - with inflation, supply and demand woes.
The railway industry is next on the line since it’s time for contracts to be renewed.
Dr. John Gnuschke, an economics professor at the University of Memphis said if employers and workers don’t come to an agreement – it’s bad for Memphians.
“It's time to renegotiate contracts and the union's wanting more," said Dr. Gnuschke. "Employers want to give less.”
It's a dispute that’s as old as time. Workers want more money and employers claim they don’t have it.
That’s stoking fears of freight rail strikes that could also affect passenger lines like Amtrak.
Amtrak has already canceled all long-distance routes hoping to avoid any passenger interruptions including in Memphis.
“We know our Amtrak line that runs from Chicago to New Orleans is shutting down. So if you had trips planned that were on Amtrak, you can forget those right now,” he said.
The negotiations don’t involve Amtrak since the company uses many of the same rail lines owned by freight railroad companies it has a big dog in the fight.
“It's bad news for consumers, who may see prices rise for particularly agricultural commodities, cars, things that we all purchase," said Gnuschke. "It's also not good news for the employees that risk meeting without a paycheck, and the hundreds of rail line employees that might be here that might be put out of work.”
The bottom line he said is if an agreement isn’t reached it’s bad for Memphis.
First, its consumers which he expects will see soaring interest rates – also hurting businesses and workers.
What helps keep Memphis moving is shipping and without rail freight moving, it could quickly mean a major loss for us.
"Anybody who gets their parts, any employer that gets their part star, like an automobile industry, or others that that depends on rail lines will, in fact, be harmed," he said.
The deadline for workers and employers to kiss and make up is Thursday night.
“Do I expect an agreement? Probably not," said Gnuschke. "OK, there's a lot of pressure on the unions to, in fact, reach a positive solution. There, that's from their members. They want to see better wages, better fringe benefits.”
The Biden Administration is working to help mediate the labor dispute.
Also, the federal government could step in by invoking the Railway Labor Act.
“I think both the president and Congress want to invoke avoid being too involved," Gnuschke said. "It can be too involved. This needs to be a resolution by the industry and by the unions and to the extent that the government can stay out of it. I think we'll all be better off.
Dr. Gnuschke said after the first few days usually people come to their senses, whether the government, industry, or union, adding someone's got to give.