Four months before the next collective bargaining round, BNSF and Norfolk Southern (NS) on Aug. 23 separately reported reaching tentative five-year agreements with the Brotherhood of Railway Carmen Division/TCU (BRC); International Association of Sheet Metal, Air, Rail and Transportation Workers–Mechanical Department (SMART-MD); and Transportation Communications Union/IAM (TCU). Additionally, BNSF reached a tentative five-year deal with the American Train Dispatchers Association (ATDA), and NS reached tentative agreements with multiple General Committees for the SMART-Transportation Division (SMART-TD).
The moves give covered employees early assurances on future improvements to pay, health care, and vacation, both railroads said. They follow CSX’s recent announcements that it had reached tentative five-year agreements with 12 unions.
All agreements are subject to ratification.
Both BNSF and NS said their agreements offer railroaders a 3.5% average wage increase per year over the next five years; more vacation earlier in their career; and “meaningful enhancements to an already robust suite of health care benefits.” Terms for CSX’s agreements similarly included average wage increases of 3.5% per year over five years and improvements in paid vacation and health care. BNSF’s and NS’s deals cover approximately 15% and 30%, respectively, of their union workforces. CSX’s deals represent more than 50% of its union workforce.
The last bargaining rounds, in 2020, led to the formation of a Presidential Emergency Board in July 2022. Nearly five months later, President Joe Biden signed into law a congressional resolution (H.J. Res. 100) imposing on four holdout rail unions a collectively bargained Tentative Agreement ratified by eight others.
“We recognize that we are successful in meeting our customers’ expectations because of the men and women of BNSF,” BNSF President and CEO Katie Farmer said. “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.”
“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 President and CEO Alan H. Shaw said. “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.”
“The tentative agreements provide real wage increases, substantial improvements to paid time off that the railroads have historically fought us on, improvements to health and welfare benefits with an added benefit option for those that who want it,” SMART Directing General Chairperson John McCloskey said, referring to both the BNSF and NS deals. “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.”
“This is a great agreement for TCU members working at BNSF,” TCU National President Artie Maratea said. “This round of negotiations is proof that, by working together, we can do great things for employees and the railroad industry. I commend BNSF CEO Katie Farmer and her team of negotiators. They stayed at the bargaining table and ensured their employees get the benefit of this historic agreement.”
Maraea also reported appreciating “Norfolk Southern CEO Alan Shaw stepping up to the plate and doing the right thing. 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.”
“BRC is proud to be amongst the first unions to reach a tentative agreement with BNSF,” General President of BRC Don Grissom said. “This round of negotiations was not without challenges, but it demonstrates we can do great things for the employees by working together. I appreciate the cooperation and support of CEO Katie Farmer in bringing this agreement together. We look forward to continuing to work together.”
BRC is also “proud to reach this agreement with Norfolk Southern,” Grissom reported. “Alan [Shaw] and his team worked hard, and we appreciate their commitment to make this a reality. This agreement proves that we can make great progress working together for our members.”
“I am so proud of the progress we continue to make with Alan Shaw and the Norfolk Southern team as we partner to improve the lives of our members,” said Jeremy Ferguson, National President SMART-TD, who was recently re-elected for a second five-year term as union leader. ”Our members told us they wanted to be recognized for the value of their contributions without going through another long and protracted bargaining round. With these tentative agreements, together we have honored that request, removing the delay and rewarding Norfolk Southern employees with the pay and benefits they deserve.”
“This agreement proves that it doesn’t need to take years to reach a fair wage and healthcare agreement,” ATDA President Ed Dowell said. “Over the next few months, ATDA and BNSF will continue to bargain for additional quality of life and work rule changes. I’d like to thank Vice President Kevin Porter and General Chairman Kevin Ketcham for all they did to make this happen. Given that this is the second significant agreement we’ve reached with BNSF this year, I’d also like to thank Vice President of Labor Relations Sam Macedonio and his team for their continued cooperation.”
