The Brotherhood labor union announced on Thursday that it will decrease the speed of all trains to 19 miles per hour for 24 hours as a strike measure on Sunday. This strike is a direct response to an inability to reach a salary agreement with the railroad companies.
The union has emphasized that the key reason for seeking a wage increase is to compensate for the significant loss of purchasing power among their members. With no agreement in sight, the union has warned of a potential national strike, which would entail a complete stoppage of activities for 24 hours on June 4. Detailed information about the announcement can be found on the union’s official website.
Another contributing factor to the union’s demands stems from recent inflation levels. Notably, inflation saw a rise of 3.6 percent in May on an annual basis, which is three-tenths higher than the rate observed in April, as reported by economics specialist Laura Delle. More on this rise in inflation can be read here.
This unfolding labor conflict occurs against a backdrop of stringent economic measures introduced by newly appointed President Javier Milei. In his inaugural speech, Milei announced severe public spending cuts amounting to $20 million, citing the necessity to prevent hyperinflation. Further details on these economic measures and their anticipated impact can be found in this report.
Complicating matters further is a recent accident involving a train full of passengers and an empty car, which resulted in multiple injuries. The incident, which took place earlier in May, has drawn attention to budget cuts impacting the maintenance of railroads and trains. Investigations into the cause are ongoing, as indicated by official sources on Twitter.
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