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Advanced-Guard-4468 t1_iym6kk5 wrote

You understand "record profits" during high inflation doesn't mean what you think it does. In two years we have 15% increase.

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im_at_work_now t1_iym8tqt wrote

So they're seeing increased profits during high inflation periods, not tightening their belts.... And giving workers sick days is somehow problematic..?

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Advanced-Guard-4468 t1_iym9cr6 wrote

Math made simple. If inflation is 15% and the companies increased profits by 8 to 10% (record profits) they still lost 5 to 7%.

The Railroads didn't have to negotiate in good faith if they knew congress was going to step in and cut a deal. You can bet the railroads knew the fix was in. They just had to drag it past the mid-term elections.

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im_at_work_now t1_iymao94 wrote

Profits went up 8-10% over last year? Inflation is only 7% over last year. You should talk about their profit margins, not revenue vs inflation.

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Advanced-Guard-4468 t1_iymb9cs wrote

Inflation over the last two years is up 15%

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im_at_work_now t1_iymbz5m wrote

And how much are profits up over the last 2 years? 8-10% is the YOY figure.

Put another way.... In the first 3 months of this year alone, the rail industry made just shy of $22 BILLION in profits. The additional 7 sick days cost them $321 million for the whole year, or 80 million. With an m. Not a b.

80,000,000 / 22,000,000,000 = 0.0036

That's less than half of one percent of the profits

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a-german-muffin t1_iymeej0 wrote

By what measure? Even going with max volatility using the all items CPI, it's 12 and change since September 2020 (and that's off a flat-to-down stretch through the first six months of COVID, so not exactly normal conditions).

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Advanced-Guard-4468 t1_iynaxlm wrote

It was 6% from 2020 to 2021 and 8.5 from 2021 to 2022 = 14.5 or 15%

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tempmike t1_iyna9dr wrote

https://en.wikipedia.org/wiki/Precision_railroading

This all happened before inflation took off. They've been pulling in record profits by slashing their workforce so they don't have any redundancy to cover short notice sickdays. Its also a reason that a lot of the supply chain issues cropped up during 2020.

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