Earlier quoted context omitted.
Rail is a near monopoly * (or at least a cartel), so it doesn’t have the same market forces to make that thesis work. There are enormous barriers to entry that prevent much competition, so employees have little market from which to choose. Meaning it shifts the power away from the employee in favor of the employer. * this is one of the reasons Warren Buffet invested in rail a decade or so ago.
If the workers are so specialized in rail that substitutions from rail to not rail are so poor as to not have an external market as you say, then in turn the workers also have a monopoly as external workers are unable to replace them. If what you say is true I am totally unsympathetic of argumetns against damages being sought from monopolizers who are involved in the shutting down of the rail network for which societ…
This is exactly why a strike is devastating and the point of the talk about Congress intervening. However, if it goes down like the air traffic controllers in the 1980s, their labor monopoly may be broken while the rail monopoly remains intact. So again it creates an asymmetry in power which is why taxing the employees is wrong-headed.
Tax the companies and they will adjust their rates, pay, and dividends. Tax the employees under a monopolistic employment, all you'll do is make the pay absorb the externalities. It becomes just one more way of socializing the risk of shareholders at the expense of labor.