JACKSONVILLE, Fla. — CSX Transportation has reached contract agreements with three of its unions, four months before their existing contracts faced a key date under the Federal Railway Act.
A company spokesman called the move “unprecedented,” and said the workers covered by the new contracts represent about 25% of CSX’ unionized workforce.
The deals were announced a day before Canadian Class I railroads CPKC and Canadian National face a strike and a lockout, respectively [see “Teamsters Canada Rail Conference delivers strike notice …,” Trains News Wire, Aug. 18, 2024]. They come about two years after U.S. railroads avoided a strike at the last minute in September 2022 through federal intervention [see “Freight railroad strike averted …,” News Wire, Sept. 15, 2022].
The contracts are for five-year terms. They cover workers with the Transportation Communications Union, the Brotherhood of Railway Carmen and the General Committee of Adjustment GO-049 of the International Association of Sheet Metal, Rail and Transportation Workers-Transportation Division, known as SMART-TD.
In a statement, CSX CEO Joe Hinrichs called the deals “historic.”
“I want to recognize the labor leaders who have stepped up to serve the best interests of their members and our employees in getting these historic deals done well in advance of their contracts even coming open for negotiation,” Henrichs said.
Existing contracts were to “become amendable” in four months, according to CSX.
As a Bloomberg Law article on the Federal Railway Labor Act described it, contracts under the Act do not expire but “become amendable if a party serves a timely notice to change the terms of the agreement” under processes spelled out in the Act. “Following the amendable date, the parties must maintain the terms of the agreement until a new agreement is reached.”
CSX said the terms of the contracts call for average wage increases of 3.5% per year and “improvements” in paid vacation and health care.
The agreements need to be ratified by the unions. CSX said it would share additional details on contract terms as the ratification process moves forward.
Hinrichs’ statement said the company had “reached out to our other labor partners and look forward to promptly reaching agreements for all CSX union employees patterned on these same terms.”
— This article originally appeared at FreightWaves.com, part of Firecrown Media, which also includes Trains.com and Trains Magazine.
