The agreement, which is subject to ratification, is consistent with the terms set by dozens of local and national contracts between railroads and unions that have been ratified as part of the 2025 bargaining round, according to the NCCC.
The terms of these pattern agreements provide:
- “Wage increases of 18.8% over five years. Based on current inflation projections, this will translate to real wage growth for covered railroaders along with pay certainty for the life of the contract.
- “Enhancements to world-class health and welfare benefits with no increase to the employee contribution rate. Employees’ 2025 health care premiums have decreased to about $277/month, well below the national average of more than $500/month for employer-provided family coverage.
- “Access to more paid vacation time for employees earlier in their careers.”
The IAM tentative agreement follows the International Brotherhood of Boilermakers’ tentative agreement that was reported earlier this month. Seven national contracts have been ratified—with the International Brotherhood of Electrical Workers; Brotherhood of Maintenance of Way Employes Division; International Association of Sheet, Air, Rail and Transportation Workers’ Mechanical and Engineering Department; National Conference of Firemen & Oilers; American Train Dispatchers Association; Transportation Communications Union; and Brotherhood of Railway Carmen
According to IAM, an electronic ratification vote will take place April 25-30.
“Our membership asked us to stand strong for a contract that includes no takeaways and makes improvements to pay, vacation and healthcare—and that’s exactly what we’ve delivered,” IAM District 19 President and Directing General Chair Reece Murtagh said. “We strongly recommend acceptance of this agreement.”
“District 19 continues to stand strong for industry-leading contracts,” noted Josh Hartford, IAM Special Assistant to the International President for the IAM Rail Division. “Together, we are remaking this industry and giving every rail worker the respect they’ve earned.”
“This round continues to move forward at a historic pace, and this agreement with IAM is part of that momentum—providing employees with wage increases, enhanced health benefits and more access to paid time off,” NCCC and National Railway Labor Conference (NRLC) Chairman Jeff Rodgers said. “Working together with IAM’s leadership, we are delivering real improvements for their members.”
The NRLC is an association representing all U.S. Class I railroads and many smaller freight and passenger lines. Through its NCCC, NRLC leads national negotiations with the 12 major rail labor organizations*.
Background
The 2025 national bargaining round began with the exchange of Section 6 notices on Nov. 1, 2024. Early local agreements between several rail carriers and unions set the stage for progress, according to the NRLC. “The 2025 bargaining round has seen robust collaboration between freight rail carriers and unions—setting a clear pattern for agreements that prioritize employee priorities and long-term industry stability,” it reported. “The 18.8% wage increase in these pattern agreements build on the historic 24% wage increase from the 2022 bargaining round, which, taken together, are projected to increase wages for covered employees by nearly 50% (compounded) between 2020 and 2029.”
Download below a list of carriers and unions participating in national handling. Carriers that reached an early local agreement covering a particular craft do not participate in national bargaining with respect to that craft. Additional information about the bargaining round is available at RailNegotiations.com.
* The unions are: International Association of Sheet Metal, Air, Rail and Transportation Workers – Transportation Div. (SMART-TD & SMART-TD-YDM); Brotherhood of Maintenance of Way Employees (BMWE); Brotherhood of Locomotive Engineers & Trainmen (BLET); Brotherhood Railway Carmen (BRC); Brotherhood of Railroad Signalmen (BRS); International Association of Machinists and Aerospace Workers (IAM); International Brotherhood of Electrical Workers (IBEW); Transportation Communications International Union (TCU); National Conference of Firemen and Oilers (NCFO); American Train Dispatchers Association (ATDA); International Association of Sheet Metal, Air, Rail and Transportation Workers (SMART); and International Brotherhood of Boilermakers, Blacksmiths, Iron Ship Builders, Forgers and Helpers (IBB).
