Economists: North Texas could feel major impacts of railroad workers strike
NORTH TEXAS (CBSDFW.COM) — A possible freight rail workers' strike could cause massive supply chain disruptions to our economy, economists say.
Two unions are at odds with the railroads over pay, attendance policies, and sick leave.
This comes as stock prices take a tumble due to continued reports of inflation.
Economists predict that it could cost the American economy $2 billion a day if workers go on strike.
"It could be catastrophic," said Guy Brown, Executive Director of the Hutchins Economic Development.
Brown said that in his city, which sits where part of the southern Dallas County Inland Port lies, 93% of the city's tax base relies on that port.
"Almost every consumer good in the world comes through our intermodal and we're not a society that's used to shortages. Those shortages would be painful and disruptive for the whole North Texas area," added Brown. He also said people could see major ripple effects if a strike happens – including price increase at the stores and local job losses.
"We're very dependent on rail to bring in consumer goods and materials into the area and so any disruption in that system because the rail system is just that, it's a system and any disruption will cascade through the system causing consequences for a long time," said Brown.
In anticipation of this strike, even Amtrak has canceled long distance trips starting on Thursday – including the Texas Eagle, which runs through Fort Worth.
Beyond our economy, this strike Brown said could impact the country's national security.
"We move hazardous materials over rail, we move troops and equipment and also a rail strike could affect our ability to defend ourselves in a catastrophic situation," added Brown.
CBS 11 reached out to one of the unions, Railroad Workers United, for comment, but did not hear back.
The unions and the railroad companies have until this Friday to work out a deal.