Title: Privatizing Amtrak | Downsizing the Federal Government
Headings: Privatizing Amtrak
Privatizing Amtrak
Amtrak's Failures
Advantages of Privatization
Notes:

Content: 7 More than a dozen collective bargaining agreements cover 86 percent of the workforce. 8 Unions undermine efficiency by protecting poorly performing workers and pushing for larger staffing levels. They resist innovation and create a bureaucratic workplace. Former Amtrak head David Gunn complained that at Amtrak's maintenance facilities, workers from different unions were not allowed to share work on projects outside their narrowly designated specialties. 9
With late trains and endless losses, Amtrak's management has been subject to much criticism. Over the years, federal auditors have charged Amtrak with a lack of strategic planning, inefficient procurement policies, weak financial management, and insufficient accountability. 10 Auditors found that the company manipulated its financial statements to obscure unfavorable data. 11 And the company has a history of hiding information from investigators and presenting unrealistic projections to Congress. 12
However, most of Amtrak's problems are created by Congress, which prevents the company from making rational business decisions. In particular, Congress insists on supporting an excessively large nationwide system of passenger rail that does not make economic sense.