The disastrous train derailment in East Palestine, Ohio, has put a spotlight on the railroad industry. Their average profit margin since 2001 has steadily increased from 15% to 50% in 2019. The national average profit margin for U.S. industries is 9%, but for railroads it is five times the average. This outrageous profit is adding to the high cost of goods that is hurting the already battered middle class.
The CEOs of five major rail companies averaged more than $16 million in compensation, more than 162 times the median salary of railroad workers. In addition to unfair wages is unfair “precision scheduling,” being on call 90-95% of the time, which makes any quality of life impossible. Add to that longer trains and fewer workers and the result is three train derailments every day. This brings into question the competency of the CEOs.
So we have outrageous profits and executive compensation, on top of the staggering amount the industry spends on stock buybacks, dividends and lobbyists, and you begin to understand why the price of goods and services is crushing the middle class.
Tell our government we demand a reversal of our massive economic inequality. They need to pass the Price Gouging Prevention Act and the 2% wealth tax bill and approve President Biden’s 25% tax on billionaires. We need a revision of the tax code and salary guidelines so that everyone pays and receives a fair share.
Gloria Gralewski
Manor