United States Department of Transportation
i
A Comparison of Short Line and Class I Labor Costs in North Dakota
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1989-08-01
[PDF-603.53 KB]
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Abstract:The objective of this report is to provide information highlighting the differences between Class I and short line rail labor. Primary data was collected from 48 short line railroads. In addition to various railroad characteristics, information was obtained about employment levels, job classifications, wage rates, and benefit packages. Similar information for Class I railroads operating over light-density lines was obtained from R-1 annual reports. High rail labor costs are a major reason underlying the recent growth of short line and regional railroads in the United States. Short lines have lower labor costs as a result of lower wage rates, fewer fringe benefits, and less restrictive work rules. A short line's operating labor cost is between one-fourth and one-third of a Class I railroad. The results suggest that labor cost savings may allow short lines to continue operating light-density rail lines that are unprofitable for a Class I railroad. From a policy perspective, short lines may provide an alternative to rail line abandonment for light-density branch lines.
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