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The effects a potential rail strike could have on Southeast Texas

Lamar University Economics Professor John McCollough says a rail strike would have devastating effects because trains carry about 40% of goods over the year.

BEAUMONT, Texas — Legislation to avert what could have been an economically ruinous freight rail strike won final approval in Congress on Thursday.

The Senate passed a bill to bind rail companies and workers to a proposed settlement that was reached between the rail companies and union leaders in September. That settlement had been rejected by four of the 12 unions involved, creating the possibility of a strike beginning December 9, 2022. 

The Senate vote was 80-15. It came one day after the House voted to impose the agreement. 

“Congress’ decisive action ensures that we will avoid the impending, devastating economic consequences for workers, families, and communities across the country," Biden said in a statement after the vote.

If the strike were to happen, many Texas economists say this would cause a trickle-down affect of what would first impact major companies, to then supply and demand and eventually the people's pocket books. 

Lamar University Economics Professor John McCollough says a rail strike would have devastating effects because trains carry about 40% of goods over the course of a year.

"That is tremendous. Now, if they shut down, that means just as we are starting to get out of the supply chain bottle neck, we could go back into the supply chain bottle neck," McCollough said. 

Some of the things the rail workers are pushing for is more sick days and higher pay. 

"The issue that's the sticking point, is sick leave and quality of life," said University of Houston Associate Professor Margaret Kidd. 

The measure now goes to President Biden's desk for his signature.

"Could impact gas prices, because remember these refineries in both Houston and Beaumont, I mean some of their main products being gasoline. So, we are all impacted," Kidd said. 

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