WASHINGTON, D.C. — The following statement was issued by Sonny Hall, President of the Transportation Trades Department, AFL-CIO, in reaction to a White House proposal to restructure Amtrak.
“Amtrak is on the doorstep to bankruptcy unless the President and Congress secure a federal loan guarantee for the passenger rail corporation. Without the guarantee Amtrak says it will prepare to bring all train service to a halt, stranding millions of passengers and idling some 23,000 workers in virtually every community in America.
“Unfortunately, as Amtrak warns the nation of its financial demise, the Administration today unveiled a terribly disappointing vision for intercity passenger rail that won’t work and assures Amtrak’s eventual cannibalization. The President should have resisted the most extreme elements in his Administration who want to recycle already discredited proposals to privatize passenger rail. This is the President’s opportunity to lead the nation out of this current Amtrak crisis. Amtrak passengers and workers hope his Administration rises to the occasion.
“Let us put to rest, once and for all, the tired old privatization model that opens the door to spinning off Amtrak’s most desirable parts and leaving the rest to wither. In England this model has been a tragic failure with too many accidents, chronic delays, lousy service and high fares.
“Amtrak is on its way to bankruptcy. Congress and the President must step in right now – before Congress goes home late next week for the July 4th recess – and include in the pending supplemental appropriations legislation a federal loan guarantee securing a $270 million private loan for Amtrak. If Congress and the President fail to act, Amtrak will shutdown and America’s transportation system and economy will suffer immensely.
“Instead of weakening Amtrak through break-up and privatization schemes, we should do what every other major nation does – invest in passenger rail. No other nation asks its intercity passenger rail to exist free of federal subsidy. Without a federal loan guarantee and at least $1.2 billion in fiscal year 2003, Amtrak will not survive. Let us hope the 107th Congress and the President do not permit the shutdown of America’s national passenger railroad to happen on their watch.”
TTD represents 34 member unions in the aviation, rail, transit, trucking, highway, longshore, maritime and related industries. For more information, visit www.ttd.org.