The agreement, which is subject to member 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 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 IBB tentative agreement follows separate ratification votes this month by the International Brotherhood of Electrical Workers and the Brotherhood of Maintenance of Way Employes Division, which brought the total number of ratified national contracts to seven, according to NCCC. The 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 have also ratified contracts.
“We’re proud to reach an agreement with the IBB that is the product of good-faith bargaining and constructive dialogue,” NCCC and National Railway Labor Conference (NRLC) Chairman Jeff Rodgers said. “We appreciate IBB’s partnership and shared commitment to providing employees with increased pay and enhanced benefits.”
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 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 this 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).
