Corporate America has a major over-efficiency problem

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Some businesses like railroads, airlines, and retail stores are running so lean that an employee sick day can throw the whole system into chaos.

When President Biden signed a new law last week requiring railroad employees to accept contracts that railroads and unions had negotiated in September, it ended—at least for now—the threat of a strike that could have done massive damage to supply chains across the country and cost the U.S. economy $2 billion a day. But what the new law won’t change is the underlying problem that had rail workers ready to go to the picket lines: Corporate America’s quest to run their operations so lean that employees don’t even have time to get sick.

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