Within the first year of national bargaining, 75% of rail union employees have ratified agreements.
Arlington, Va. (October 30, 2025) – The National Carriers Conference Committee (NCCC) today announced that members of the Sheet Metal, Air, Rail, and Transportation Workers-Transportation Division (SMART-TD), the nation’s largest rail union, have ratified two national collective bargaining agreements covering more than 18,000 freight rail employees. With the ratification of the SMART-TD and SMART-TD (Y) agreements, approximately 75% of the union-represented freight rail employees at railroads participating in national handling are now covered by a ratified collective bargaining agreement that follows the industry-wide pattern.
“SMART-TD members have ratified the agreements by a substantial margin,” stated Jeff Rodgers, Chairman of the NRLC and the NCCC. “With ten unions–including the largest nationwide–endorsing these pattern agreements, it is evident that employees recognize the value of key provisions such as the 18.8% wage increase and enhanced benefits. We anticipate that the remaining two unions will also align with SMART-TD and other rail workers in accepting these pattern terms.”
The ratified agreements, which follow the industry-wide pattern, provide:
- Wage increases of 18.8% over five years. Based on current inflation projections, this increase will translate to real wage growth for covered railroaders, along with pay certainty for the life of the contract. Under these agreements, average annual wages will rise to about $135,000 and average total compensation will increase to about $190,000 by the end of the contract in 2029.
- 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.
Continued Momentum in Bargaining
SMART-TD members join employees represented ATDA, BMWED, BRC, IAM, IBB, IBEW, NCFO, SMART-MD, and TCU in approving a total of ten national collective bargaining agreements covering the period through December 31, 2029. These national agreements are in addition to dozens of local agreements reached and ratified this round.
Since the exchange of Section 6 notices on Nov. 1, 2024, the 2025 bargaining round has seen historic collaboration between freight rail carriers and unions. Early local agreements set the stage for this momentum, establishing a clear pattern that addresses employee needs while strengthening the freight rail industry’s ability to provide safe, reliable service.
The 18.8% wage increase in these pattern agreements builds on the historic 24% wage increase from the 2022 bargaining round. Taken together, these wage increases represent a nearly 50% (compounded) wage increase for covered employees between 2020 and 2029.
About the National Railway Labor Conference
The National Railway Labor Conference (NRLC) is an association representing all U.S. Class I freight railroads — and many smaller freight and passenger lines. Through its NCCC, the NRLC leads national negotiations with the 12 major rail labor organizations.
