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As a major rail strike looms that may require Congressional action, a new analysis from watchdog Accountable.US spotlights the big rail industry’s record of greedy behavior as they resist worker calls for safer working conditions and fair pay. Accountable.US found nearly all of the seven Class I railroads have enjoyed high profits amid the supply chain crisis while cutting costs, increasing shareholder handouts, and disclosing over $11.2 million on lobbying related to competition, mergers, and Biden’s July 2021 executive order confronting aggressive industry pricing.

 

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The same wealthy rail industry executives that say they can’t afford to pay their workers fair wages all had banner years in net revenue and shareholder giveaways. The big rail industry’s own earnings reports show they didn’t need to cut corners on safety and gouge businesses with excessive fees that get passed onto consumers. It only adds up to one thing: greed. For years the industry gutted investments in maintenance and equipment, and when those decisions inevitably led to supply chain bottlenecks, the industry now refuses to take any responsibility. Instead, Big Rail has opted to impose record fees and shortchange their workers while continuing to enrich a small group of investors. If Congress has to intervene, it would make no sense to reinforce greedy industry behavior that would lead to a supply chain crisis right before the holiday season.”

Accountable.US spokesperson Liz Zelnick

Among the three companies at the center of the labor dispute, Accountable.US found:  

  • BNSF—A Subsidiary Of Billionaire Warren Buffett’s Berkshire Hathaway Which Raised Its Freight Rates And Cut Its Operating Ratio in 2021:
    • Saw Its Net Income Jump By 16% To $5.9 Billion In FY 2021 And By 4% To $4.4 Billion In The First Nine Months Of FY 2022 While Its Parent Company Spent $27.1 Billion On Stock Buybacks In FY 2021 And An Additional $5.25 Billion In The First Nine Months Of FY 2022
    • Since 2021, Has Spent Over $4.5 Million While Lobbying The Federal Government, Including At Least $190,000 While Influencing Policymakers On “Rail Competition Issues” And “Anti-Trust.”
  • Union Pacific—Whose Increased Fees “More Than Offset” Lower Freight Volume And Which Touted “Records” For Cutting Operating Ratio In 2021:
    • Had Its “‘Most Profitable Year Ever‘” In FY 2021 Due In Part To Price Increases
    •  Touted “Quarterly Records” In Its Q2 2022 As Net Income Climbed 10%
    •  Saw Its Net Income Climb 11% To $5.36 Billion In The First Nine Months Of 2022
    • Has Spent Over $7.7 Billion On Shareholder Handouts In the First Nine Months Of 2022 After Spending $10.1 Billion on Handouts in 2021
    • Since 2021, Has Spent $6.3 Million While Lobbying The Federal Government, On Issues Pertaining To Antitrust, Competition, And Biden’s Executive Order.
  • CSX—Which Credited Higher Fees For Increased Profits And Cut Its Operating Ratio In 2021:
    • Saw A 37% Jump In FY 2021 Net Earnings to Nearly $3.8 billion
    • In The First Nine Months Of FY 2022, Saw Net Earnings Continue To Rise 11% To Over $3.1 Billion
    •  Increased Stock Buybacks By 60% In The First Nine Months Of FY 2022 To Over $3.7 Billion
    • Since 2021, Has Spent Over $3.3 Million Lobbying The Federal Government, Including At Least $1.2 Million While Lobbying On Issues Related To “Rail Labor” And “Collective Bargaining.”
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