Somehow, Burlington Northern Santa Fe (BNSF) still manages to make huge profits. Even with a decline in freight volume, they still had net earnings of close to $6 Billion in 2022. I think that the lesson here–as in so many other cases–is to not bet against Warren Buffett.
1 Like
Most of my life was in the Air Force (over 30-years) so I am not very well informed about union and management maneuvering… the civilian government employees who I worked with in the Air Force, were all represented by a union, whether they were members or not… And they were prohibited by Federal Law from going on strike.
But it would seem that there are two schools of thought on going on strike by unions and union busting by management… It seems that the unions feel that the loss of pay due to going on strike is worth it in the short term as they will make it up in the long haul… Then there is management’s position that they can weather the loss during the strike if they do not concede to the union demands and the strike will either just end or they will just hire scabs at a lower pay.
So, with that being said, I find it conceivable that Yellow Freight Trucking could just lock the doors… Does anyone else think that this just might be a union busting tactic by Yellow Freight to get a whole bunch of union concessions… It’s possible that the Feds will jump in and force union concessions and a whole new row of Federal loans and grants?
I dunno. The current administration has vowed to eliminate trucking and oil as we know it. Seems unlikely they’ll bring flowers to the funeral. I belonged to the sheet metal workers union for a couple years and there was never any problem. I also saw about a three month strike by the auto workers union that think benefitted the union more than the members. I really don’t trust much coming out of the teamsters union though. Unions and locals are not the same, nor are companies. One company fought tooth and nail to keep a union out and another insisted on a union when they came to town. I know for a fact that four local business owners complained to the new kid on the block about the high wages being paid. The plant manager threw them out telling them to pay their people what they thought they are worth and he would do the same. I’m sure they had lunch and drinks at the country club to sooth their wounds.
1 Like
Yellow has been in trouble for years. They recently failed to pay to renew their employees’ medical insurance. There have been messy negotiations with the Teamsters. FedEx and Old Dominion have been scooping up their customers. The have a $700 million debt due next year to the Federal government for a COVID loan. That loan was made in 2020 so it was the Republican administration that made it. Bankruptcy liquidates everything, clears the debt, wipes out the value of the stock (the Federal gov’t owns 30% of that) and I suppose makes an interesting opportunity for a new, non-union company to try to get some of the market back. Meanwhile independent truckers are using a service of Uber to get loads.
3 Likes
Urban business owners seem to be saying the “work at home” Covid trend is part of the reason.
“Before the pandemic hit, Russell’s Convenience would serve between 500-600 customers in each location each day. On his last days in business, that number was down to 150 customers.”
I’ll just add that businesses closing in San Francisco and Seattle has little to do with the shut downs but everything to do with lawlessness, theft, homeless on the streets, and fearing for your life and where to walk with good shoes on. The fact that the leadership thinks it’s about working at home just shows how out of touch they are to reality.
And yet, Elon Musk has informed SF officials that he no intention of moving his “X” headquarters out of the city.
1 Like
There was a humorous report about “X” on the tv news. The Twitter folks apparently removed the original Twitter sign (of a bird) from the top of their office building, and installed a big X, very brightly lit, and strobing. Apartment dwellers nearby are complaining the big flashing X is preventing them from sleeping … lol …
The X is gone now.
1 Like
It’s an ex-X.
7 Likes
He made the mistake of not getting a permit. But then he needed a permit to take it down, so the city had to do it because they didn’t need a permit. Can’t make this stuff up. I don’t suppose he has a lot of stuff in the building that the kids want to steal though. I hadn’t heard his vow though to stand in place.
I spent almost 20 years working in the trucking with a competitor of yellow. Ive never been a fan of the teamsters but i have to say it was not the unions fault on the demise of yellow. They made some ill timed purchases of other companies just prior to the recession of 08 abd 09. They have been on financial trouble pretty much from that point on.
As for driver shortages, people dont want to live on the road and deal with the long list of hassles of being a driver for the same pay they could get working at a non driving job.
3 Likes
Then why are the restaurants around here packed? Tourists in numbers that seem above pre-pandemic volumes? Planes are packed and TSA reports number of travelers higher than before the pandemic.
Conditions certainly can vary across this big country but most places I have been to since the shutdowns are booming with activity. Home prices around here are up 40% and people still snatching them up and paying cash…
+1, on all counts
While malls are fading, online purchases are flourishing, restaurants–including very upscale restos–are very busy. People are traveling again–in droves.
Vehicle sales are robust, including large pickups and EVs (you know, the ones that “nobody can afford” 
)
And, of course, unemployment is at a record low rate.
Anyone who claims that he/she can’t find a job is almost surely being too picky, and young people easily jump from job to job in order to increase their earnings.
1 Like
I’m sorry but I’m just not going to read all these links. What I will say is be a little careful with statistics. Labor statistics have been often corrected several months after the fact. Current unemployment figures seem to have missed five million unemployed somehow. Don’t know how that happened. Maybe homes are selling briskly for cash instead of 8% mortgages but mortgages are down to a trickle in at least one major bank and the loan originators have been told to generate more loans of any kind or face employment consequences. An increase of 15% in car sales doesn’t mean much if the base used was a bad year. Might want to look at sales over a longer period, especially if both ford and Gm are admitting losses. Then there is that cardboard box sales figure that is interesting. Fewer boxes sold, less business activity.
So I guess the bottom line right now is 60% of the population is in financial stress. Others are doing fine. I’m doing fine this quarter although have not gotten all my losses back. Most of the people I’m involved with are doing fine too, but some of their kids are not. I’ve been through all this before.
2 Likes
That’s a factor as well. Another recent news report was about a retail business owner calling it quits b/c his business had been repeatedly robbed, and there appeared to be no end in sight. There are probably many factors. Calif policies that prevent folks from driving their cars for example can’t be good for retail businesses.
1 Like
I read yesterday that credit card balances hit a new record. Analysis is that folks are back to cards to supplement disposable income. Of course with inflated prices, that will raise the total sales.
I got a notice today on my bp credit card. They said they don’t want to cancel me but I haven’t used it in 15 months. Actually I think it was 5 years on the Illinois tollway. At any rate they said to use it or lose it so I went down and filled the tank at Mobil fir $12. So now I’m part of the credit card total. I won’t buy bp gas though so I was surprised it worked at Mobil. Maybe I’ll get a similar notice on my other ones. I hate getting bills in the mail.
1 Like