AN ESTIMATE OF LABOR PROTECTION COST IN SELECTED RAILWAY CONSOLIDATIONS

This paper examines legal developments in labor protection agreements and estimates the costs of these agreements in selected railroad mergers. Costs are considerably higher when substantial duplicate facilities are to be consolidated. Costs are significantly affected by changes in output following a merger; when economic activity is increasing protection costs are mitigated. If post-merger traffic declines, there were no significant increases in efficiency after the protective period expired. From a public policy stand-point the carriers in regions where excess capacity is most prevalent cannot bear the costs of labor protection. Government should consider eliminating the protection provisions or underwriting a portion of the costs of diminish the possibility of bankruptcies.

  • Corporate Authors:

    Association Interstate Commerce Comm Practitioner

    1112 ICC Building
    Washington, DC  United States  20423
  • Authors:
    • Davis, G M
    • SHERWOOD, C S
    • Jones, R W
  • Publication Date: 1975-11

Media Info

Subject/Index Terms

Filing Info

  • Accession Number: 00128995
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Feb 19 1976 12:00AM