In 1918, an organization calling for the democratization of the railroads was born. This plan was brought forth by American lawyer, Glenn E. Plumb after Woodrow Wilson announced the nationalization of the railroads in December of 1917. The aim of the plan as stated in “The ABC of the Plumb Plan” was “public ownership and democracy in the operation of the railroads”. This plan was promoted by the American Federation of Labor (AFL) and several unions that made up the different trades of the railroad, including the International Association of Machinists (IAM), International Brotherhood of Electrical Workers (IBEW), Brotherhood of Railway Trainmen, Brotherhood of Railway Carmen of America, Switchmen’s Union of North America, and many others.
The Plumb Plan was quite simple, it proposed a tripartite working cooperation between the government, the operating officers, and the numerous trades (“classified employees” per the Plumb Plan) where a Board of Directors would be made up of 15 individuals with each sector being allowed five representatives. This would allow “true democracy since it gives the men engaged in the industry a voice in its management”.
“Under the Plumb plan, the railroads would be owned cooperatively, and the federal government would sell bonds, using them to purchase the railroads. All railroads would be merged into a public corporation.”
- Public Rail Now on the Plumb Plan
As for the surplus, once all expenses have been paid it would be distributed between the government and the workers (managerial and trades included in this distribution). This dividend system was devised as a way to prevent collusion between directors and gives an incentive for all those working the railroad. As for what the government does with its share of surplus, per the Plumb Plan, “It invests it in improvements and extensions, thus adding to the value of the railroads without adding to the fixed charges. It retires the outstanding bonds, thus reducing the fixed charges. Ultimately the public has its railroad service at cost.”
Fast forward to 2024 and the railroads are severely mismanaged with worker fatalities skyrocketing in recent years due to understaffing, unpredictable hours, and deplorable working conditions caused by so-called Precision Scheduled Railroading. With the work of Los Trabajadores Del Ferrocarril De Los Estados and Público Ferroviario Ahora, the discussion of nationalizing the railroad industry has entered public discourse once again.
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