Frequently Asked Questions

Find answers to your questions about the freight rail industry and our collective bargaining process.

Why have some carriers and unions already announced local agreements?

National Carriers Conference Committee (NCCC) members maintain open lines of communication with their freight rail union counterparts. As recent events have demonstrated, these discussions can provide opportunities to resolve priority issues on mutually agreeable terms. We’re encouraged by the early progress to reach agreements, some of which have been ratified, and support our members’ efforts to invest in good freight rail jobs while maintaining the industry’s ability to compete in the future.

Carriers and unions that have reached ratified agreements will not need to participate in the upcoming bargaining round. The early agreements also do not change the timeline for national bargaining.

Who are the parties involved in national railroad bargaining?

The most recent round of bargaining included more than 30 railroads represented by the National Carriers’ Conference Committee and 12 rail unions:

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)
International Brotherhood of Boilermakers, Blacksmiths, Iron Ship Builders, Forgers and Helpers (IBB)

What is the Railway Labor Act?

The Railway Labor Act (RLA) is a federal statute that has governed collective bargaining between freight railroads and rail labor organizations for nearly 100 years. Unlike agreements in most other industries, rail labor agreements under the RLA remain effective indefinitely until changed by mutual agreement. The RLA includes a structured process for good faith bargaining and safeguards designed to prevent service disruptions that could impact the U.S. economy.

How long does the average employee work in the railroad industry?

Railroading has presented an opportunity for generations of Americans to turn a job into a lifelong career. The median tenure in the freight rail industry is three times longer than the private sector, with unionized rail employees having a median tenure of more than 13 years. By comparison, the median tenure for private sector workers is 4.1 years according to the U.S. Department of Labor.

Have railroad wages increased?

Yes. Class I railroad employees have long been among the highest paid workers across U.S. industries. The 2022 agreements resulted in a historic 24% wage increase over five years (2020-2024). At present, most Class I rail employees earn between $90,000 to $140,000 in annual wages (depending on their craft), with an average of $111,000. Including the value of retirement, sickness, and health care benefits, the average annual compensation is approximately $160,000.

What is the difference between national and local bargaining?

“National” agreements between multiple freight railroads and a labor union typically address significant issues such as wages, health benefits and industry-wide work rules. These agreements are negotiated on a multi-employer basis and apply to all employees represented by the signatory carriers and union. “Local” agreements only apply to employees in one craft at a specific railroad (or even parts of a railroad) and usually address carrier-specific working conditions.

What progress has been made since the last round of bargaining?

Since national bargaining concluded in December 2022, America’s Class I freight railroads have continued collaborating with unions at the local level and reached more than 50 local agreements to provide individual for employees who did not previously have them. Today, more than 93% of craft employees at NCCC carriers have access to individual paid sick days. Several carriers have also reached agreements with the operating crafts that give employees more predictable schedules than ever before.

What is a “Section 6 notice?” What does it mean for employees?

Under the RLA, collective bargaining agreements do not expire and instead have “reopener” dates. On and after those dates, parties can start new negotiations by exchanging “Section 6 notices,” so-named because the notices are issued pursuant to Section 6 of the RLA. These notices outline proposed contractual changes and mark the beginning of the collective bargaining process. While the negotiations move forward, the current contract remains in force.

When will national negotiations start?

The current national collective bargaining agreements between freight rail carriers and rail unions can reopen for negotiation starting in November 2024. At that time, “Section 6 notices” will be exchanged and bargaining will begin.

How long does the bargaining process take?

The duration of the process can vary. Some agreements are reached quickly, while others may go through each stage of the RLA process. Our goal in this round is to reach timely, voluntary agreements that benefit all stakeholders.

What is a Presidential Emergency Board?

If both parties cannot reach an agreement through direct bargaining and mediation, and one or both parties reject binding arbitration, the RLA gives the President of the United States the authority to appoint a Presidential Emergency Board (PEB). The PEB investigates and makes non-binding recommendations for settling labor disputes that threaten to substantially interrupt interstate commerce. A PEB has 30 days to conduct hearings and issue its report and settlement recommendations. Work stoppages are prohibited during this time and for another 30 days following the issuance of the report.