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AMTRAK, LONG-DISTANCE TRAINS, AND CONGRESSIONAL FUNDING
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<p>[quote user="CSSHEGEWISCH"]</p> <p>Getting labor costs down would involve some major renegotiation of contract terms between management and the various labor unions. This wouldn't be easy and there's no guarantee of success since it risks setting a precedent for contract negotiations for the freight railroads with their unions. [/quote]</p> <p>Your correct! But I don't perceive that Amtrak's management has the intestinal fortitude to even have a go at it.</p> <p>As long as Amtrak remains a government agency, without any meaningful competition for its routes, it has little incentive to even attempt to rationalize its labor costs. But if it were a private business, and it either rationalized its labor costs or went out of business, the unions might be more receptive to making the needed adjustments.</p> <p>I am not suggesting slashing wages and benefits, although some adjustment may be appropriate. Based on my observations from riding Amtrak eight to ten times a year, there is a lot of opportunity to reduce the size of the workforce and improve productivity. But as long as the long distance trains are part of the picture, getting productivity increases will be very difficult.</p>
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