Journal or Book Title
Historically, labor costs have represented the largest cost component of the transportation industry. The industry is heavily unionized, and transport workers generally receive higher wages than the average industrial worker. Under federal economic regulation, carriers had little incentive to bargain hard to keep labor costs low. Restrictive entry policies and collective ratemaking resulted in near-uniform pricing among competitors. Increased labor costs were merely passed on to the consumers of transport services.
Eno Foundation for Transportation, Inc.
Curtis, Ellen F. and Crum, Michael R., "Transportation Labor Relations: Contemporary Developments, Challenges, and Strategies" (1988). Supply Chain and Information Systems Publications. 13.