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Bush Budget Could Bankrupt AmtrakFebruary 11, 2005 The Bush administration’s newly proposed budget, that cuts all federal subsidies to Amtrak, could propel the nation’s largest passenger railroad over a cliff into bankruptcy. For the nation’s railroad workers – including IBEW members – and for commuters, bankruptcy would be a disaster, threatening wages, pensions plans and higher costs for service. Rail safety and security efforts would be starved of essential funding.The Transportation Trades Department (TTD-AFL-CIO) claims that totally privatizing the nation’s rail system has always been Bush’s goal, despite piles of evidence from nations such as England that it doesn’t work. Members of Congress are joining unions to oppose the budget cuts, contending that, while Amtrak is a for-profit corporation, the public’s interest in mass transportation, especially in a time of excessive energy prices, makes subsidies necessary. Edward Wytkind, President of the TTD, says, "For four years we’ve seen this administration abdicate its responsibility to ensure America has a first-class national passenger rail system. And for four years we’ve seen this administration push its wildly unpopular proposal to dump huge passenger rail costs on the states at a time when cities and states are starving for more, not fewer, transportation options." The TTD contends that an Amtrak bankruptcy would have a devastating impact on the railroad retirement system, forcing increases in payroll taxes and jeopardizing disability, widow and widower benefits. Unemployment payments would be similarly threatened. While administration spokespersons claim that labor costs are too high on Amtrak, TTD points out that the carrier’s workers earn significantly less than freight and commuter workers and have kept the deteriorating system running, despite "living under a cloud of fear and uncertainty." The administration’s plan would lead to the elimination of unprofitable routes, passing more costs on to the states and establishing competitive bidding on passenger routes. Representative James Oberstar (D-Minn.), the ranking member of the House Transportation Committee, says, "It is far from clear that the outcome of bankruptcy would be a more efficient Amtrak." In England, privatization was a disaster, causing rampant delays, steep fare increases and higher accident rates. The British are trying to undo the failed experiment, estimating that it will cost about $40 billion to return to public ownership. Amtrak’s infrastructure is already suffering. Deferred maintenance is placing the entire system at risk. Trains are out of service, track conditions have been allowed to deteriorate and tunnels and bridges are in desperate need of critical safety and security upgrades. The Department of Transportation’s inspector general has called this game of deferred maintenance "Russian Roulette." Meanwhile, employees are not receiving security training, policing of the rail network is grossly inadequate and costs for security personnel are putting further strain on Amtrak. The TTD campaign against Amtrak budget cuts is heating up. Visit www.ttd.org to receive an online newsletter and to participate in the effort to save America’s passenger railroads and the jobs of railroad workers, including members of the IBEW.  |
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