Frequently Asked Questions

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

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 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 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 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.

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.

When did national negotiations start?

The current national collective bargaining agreements between freight rail carriers and rail unions reopened for negotiation on November 1, 2024. At that time, “Section 6 notices” were exchanged and bargaining began.

Who are the parties involved in national railroad bargaining?

The most current round of bargaining includes 28 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)

How does this round of bargaining compare to previous rounds?

While the timing of agreements this early in the national bargaining round is noteworthy, this progress reflects the long history of productive collaboration between rail carriers and unions, resulting in mutually beneficial agreements that address employee priorities and keep the industry running.

Why have some carriers and unions already announced new agreements?

Some carriers (including those represented by the NCCC) and unions have proactively reached and ratified agreements early in the bargaining process, including both local and national agreements. The early local agreements established a pattern that provides a clear framework for resolving the national round, addressing key employee priorities and providing wage increases, enhanced health benefits and earlier access to paid time off.

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

What happens if a tentative agreement isn’t ratified?

If a tentative agreement isn’t ratified, the union remains in direct bargaining and negotiations will continue. If an agreement isn’t immediately ratified, it does not impact broader industry operations or create the potential for a work stoppage under the Railway Labor Act. The pattern established by earlier agreements provides a strong framework to resolve any issues and reach agreements that benefit employees and provide industry stability.

What are the key terms included in the pattern bargaining agreements reached so far?

Key highlights of these pattern agreements include: 

Wage increases of 18.8% over five years. Based on current inflation projections, this increase will translate to real wage growth for covered railroaders and 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.

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

Since the last round of 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.

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.

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.