Norfolk Southern and BNSF Railway said late today (Friday, Aug. 23) they had, in partnership, reached tentative, five-year collective bargaining agreements with a number of their unions.
The pacts come four months before the opening of the next round of bargaining and cover approximately 30% of NS’s unionized workforce and 15% of BNSF workers. They also come after CSX Transportation announced agreements with five unions on Wednesday and Thursday [see “CSX CEO Joe Hinrichs: Tentative labor agreements are a sign of progress,” Trains News Wire, Aug. 22, 2024].
The early deals are yet another sign of labors’ growing bargaining strength as railroads and other employers struggle to fill out their workforces following the COVID-19 pandemic.
Unions reaching agreement with NS are the Brotherhood of Railway Carmen Division of the Transportation Communications Union; the International Association of Sheet Metal, Air, Rail and Transportation Workers-Mechanical Department (SMART-MD); Transportation Communications Union/IAM; as well as multiple General Committees for the International Association of Sheet Metal, Air, Rail and Transportation Workers-Transportation Division (SMART-TD).
BNSF Railway agreed on contracts with the BRC, SMART-MD and TCU, as well as the American Train Dispatchers Association.
The agreements must still be ratified by union members; no immediate time frame was provided.
Both NS and BNSF said the agreements give employees “unprecedented certainty about upcoming enhancements to their pay, health care, and vacation”.
The new contracts provide an annual wage increase of 3.5% average over the next five years. They also offer more vacation earlier in their career and what the railroad said were “meaningful enhancements” to healthcare benefits.
“Our craft railroaders are the heart and soul of Norfolk Southern, and we are committed to supporting our colleagues who power our network every day,” NS CEO Alan Shaw said in a statement. “I want to thank the labor leaders who share our commitment to our craft colleagues and helped us reach this deal early, ensuring peace of mind with clear knowledge about upcoming pay, healthcare and vacation improvements. We look forward to reaching similar agreements with the rest of the unions at Norfolk Southern.”
BNSF CEO Katie Farmer said in a statement that her railroad recognizes “that we are successful in meeting our customers’ expectations because of the men and women of BNSF. “I appreciate and want to thank the labor leaders who have collaborated with us to secure these tentative agreements in advance of the upcoming bargaining round. These agreements prioritize the well-being of our employees by not making them wait years for a pay raise, while, at the same time, ensuring our ability to continue providing industry-leading service for our customers.”
Union leaders hailed the agreements, saying they are a step in the right direction while emphasizing they include paid time off — a benefit that railroads have largely resisted providing in the past.
“I appreciate Norfolk Southern CEO Alan Shaw stepping up to the plate and doing the right thing,” said Artie Maratea, National President, TCU. “Ensuring our members and Norfolk Southern front-line employees have solid agreements in a timely manner is a huge step in the right direction and we look forward to continuing to work together in the future,” said Artie Maretea, TCU national president. He also commended Farmer and BNSF negotiators: “They stayed at the bargaining table and ensured their employees get the benefit of this historic agreement.”
Said SMART Directing General Chairperson, John McCloskey, “These tentative agreements, if ratified, take away the uncertainty of when the next round of national negotiations will be completed, and if and when annual pay increases will be implemented.”
