Rail Strike Could Impact Food, Fuel, Recession

Deadline is December 8th
I-95
I-95 Photo credit Matt Demlein, WRVA

Richmond, Va. (Newsradiowrva.com) - A rail strike, which you may have thought was avoided in September, could occur in December, and lead to a recession, says VCU Department Chair Jeff Smith. Smith is a supply chain expert, and believes because of the recession risk, it will be avoided or be very short.

All 12 unions have to reach an agreement with the freight rail companies by December 8th to avoid a strike. While some have, the group tend to strike in solidarity if not all do. The issue is less over salary and more dealing with paid sick leave and other benefits. Smith says a strike would not impact the holidays, as most of those goods are already in place. But he says food, with its short shelf life, and fuel would be impacted. He says without rail, you would need another quarter million trucks on the road.

Smith spoke on The Jeff Katz Show.

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Featured Image Photo Credit: Matt Demlein, WRVA