The ratified contract, which covers SMART-MD-represented freight rail employees through Dec. 31, 2029, is the fifth national agreement ratified after the National Conference of Fireman & Oilers (NCFO), Transportation Communications Union (TCU), Brotherhood of Railway Carmen (BRC) and American Train Dispatchers Association (ATDA) members approved their contracts in recent weeks.
The SMART-MD contract follows the pattern established by the more than 50 agreements reached at both the local and national levels. The terms 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. In 2025, health care premiums will decrease 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.”
“With these ratified agreements, railroads and unions are delivering real value for employees through increased pay, enhanced health care benefits and earlier access to paid time off,” said NCCC and National Railway Labor Conference (NRLC) Chairman Jeff Rodgers. “We’re grateful for SMART-MD’s collaboration in achieving this important milestone, which positions the industry to meet future challenges with a strong, supported workforce.”
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, establishing a clear pattern that prioritizes employee needs while strengthening the freight rail industry’s ability to provide safe, reliable service,” according to NRLC. “Building on the historic 24% wage increase from the 2022 bargaining round, the SMART-MD contract represents part of a broader effort to provide competitive compensation and benefits to employees. Together, these contracts 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. According to NRLC, carriers that reached an early local agreement covering a particular craft do not participate in national bargaining with respect to that craft.
* 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).
Further Reading:
- NCCC, ATDA Ratify National Agreement
- NCCC, NCFO Ratify National Agreement
- NCCC Reaches National Agreements With TCU, BRC
- NCCC, ATDA Reach Tentative National Agreement
- NCCC, NCFO Reach Tentative Agreement; ARSF Members Ratify CBAs
- NCCC Announces Three Tentative Union Deals
- Unconventional Labor Talks Begin
- ‘This Scenario Is a Bit Unusual’
