BNSF recently announced that members of the American Train Dispatchers Association (ATDA) and the International Sheet Metal, Air and Transportation Railroad, Mechanical and Engineering Department (SMART-MD) voted to ratify a new agreement with the Class I railroad to “increase wages, accelerate paid vacation accrual and add other contractual improvements.”
The news comes a month ahead of the opening of the next collective bargaining round and provides a 3.5% average wage increase per year over the next five years. It also offers railroaders more vacation earlier in their career and makes “meaningful enhancements to an already robust suite of health care benefits,” BNSF noted.
“We thank our labor leaders who collaborated on this agreement and worked to make sure our employees are taken care of on and off the railroad,” said BNSF President & CEO Katie Farmer. “We are looking forward to continuing to work together in providing our customers with the high-quality service we deliver here at BNSF.”
“This agreement checked the boxes that matter most for our dedicated members,” added ATDA Vice President Kevin Porter, the organization’s lead representative to BNSF. “The last two agreements equate to a 42% wage increase over 10 years, add the ability to get paid time off faster for even our newest members, and impact on members and their families becomes unprecedented…What makes this agreement historic is the speed in which it was reached.”
The announcement follows the ratification in late September of labor agreements with two other labor unions, including the Transportation and Communications Union (TCU) and Brotherhood Railway Carmen (BRC).
SMART-MD members on CSX and Norfolk Southern (NS) have also voted to ratify their respective collective bargaining agreements (CBAs), according to the union. Members voted in favor of the CBAs by 69% (BNSF), 68% (CSX) and 62% (NS).
With these agreements ratified, SMART-MD members employed by BNSF, CSX and NS have secured healthcare stability and annual wage increases through Dec. 31, 2029.
The CBAs on each respective rail carrier are essentially identical, consisting of a five-year term that provides for annual general wage increases that average out to 3.5% per year, improvements for paid vacation, as well as improvements to health and welfare benefits without changing the employee monthly cost-share contribution of 15% of the carriers’ monthly payment rate. The CBAs also resulted in the creation of new benefit design for employees that desire to have employee-only coverage under a high deductible health plan at a reduced employee monthly cost-share contribution.
“GWIs of 18.8% compounded are almost unheard of in the freight industry, especially on a voluntary basis without concessions,” said General Committee 2 Directing General Chairperson John McCloskey. “I appreciate BNSF, CSX and NS negotiating with SMART-MD in good faith and allowing us the opportunity to engage with the members throughout the ratification process.”
“Thank you to the members that took the time to educate themselves about their agreement, and that participated in the ratification process. We are glad to have resolved negotiations with these major freight railroads. The remaining rail carriers need to follow the pattern that has been established by BNSF, CSX-T and NS,” added SMART-MD Director Peter Kennedy.
“The members have passed their verdict on the agreements with BNSF, CSX-T and NS, with more than 60% voting in favor for each carrier,” said SMART General President Michael Coleman. “I am grateful for the determination and advocacy of the SMART-MD negotiating team, and I appreciate the leadership at BNSF, CSX-T and NS for resolving the next round of national negotiations without dragging out the bargaining process for years. I am glad these railroads recognized that our members deserve to be compensated fairly with wage increases coming to them in real time, rather than years after the fact.”
NS on Oct. 8 reported that in addition to ratifying an agreement with SMART-MD, it has ratified an agreement with ATDA. This follows successful ratification votes by members of the Transportation Communications Union (TCU) and its Brotherhood of Railway Carmen (BRC) Division last month. Covered employees, NS said, will see a 3.5% average wage increase per year over the next five years; more vacation earlier in their career; and “significant improvements to an already robust suite of health care benefits.”
“The collaborative relationship Norfolk Southern has with our labor partners that enables these early agreements is vital to avoiding a multi-year bargaining process and ensuring peace of mind for covered employees,” NS President and CEO Mark R. George said. “We’re thankful for the support of our labor leaders and look forward to continuing to work together to deliver for our customers, our communities, and our people.”
Further Reading: NS Reaches Tentative Agreements With All SMART-TD General Committees
