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While the U.S. railroad industry has been in the news because of a potential strike that could take place within weeks, many segments of the U.S. economy are facing the pressure of higher wages as employees attempt to recover their standards of living which have been damaged by high inflation. Unions have been effective in highlighting the impact of inflation on their workers. The transportation industry as a whole is heavily unionized and also critical to the U.S. economy. The U.S. airline industry has returned to profitability with strong post-pandemic travel demand and the reopening of more and more countries around the world to normal levels of human interaction and travel. Many airline industry labor contracts became amendable during the pandemic including at American (NASDAQ:AAL). In order to discuss the investor impact of the current labor environment, it is first necessary to understand the…
