Find answers to your questions about the freight rail industry and our collective bargaining process.
What’s the status of the 2025 bargaining round?
Nearly half all union-represented employees at carriers participating in national handling are now covered by ratified agreements that follow the established industry-wide pattern. This includes ratified national agreements with IBEW, BMWED, SMART-MD, IAM, ATDA, NCFO, TCU, BRC, and IBB — all covering the period through December 31, 2029.
You can track updates on the Bargaining Status page.
What is pattern bargaining? Why is it important?
Pattern bargaining is a foundational principle of Railway Labor Act negotiations. Once a pattern is set, adherence to the pattern promotes consistency for employees, operational certainty for carriers, and long-term stability for the industry.
In this round, dozens of national and local agreements with consistent terms established a pattern. The terms of the pattern provide a clear path for resolution of the national bargaining round by all remaining participants.
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.
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:
Click here for more information about the current round of negotiations, including the status of agreements between carriers and unions.
How does this round of bargaining compare to previous rounds?
The 2025 bargaining round has seen early, significant progress, with nearly half of all union-represented employees at railroads participating in national handling already covered by ratified agreements that follow a consistent, industry-wide pattern.
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.
This round, some carriers (including those represented by the NCCC) and unions proactively reached and ratified agreements early in the bargaining process, including both local and national agreements. These early local agreements don’t change the steps of the national bargaining process, but they do establish a pattern that provides a clear framework for resolving the national round, addressing key employee priorities and providing wage increases, and providing enhanced health benefits and earlier access to paid time off.
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 next in the national bargaining process if the NCCC cannot reach a voluntary agreement with the remaining unions?
National bargaining continues between NCCC and the remaining unions that have not yet reached agreements. Once tentative agreements are reached, each union will hold a member ratification vote.
If direct bargaining is not successful, negotiations enter mediation. The National Mediation Board (NMB) assumes control of the schedule, location and format of negotiations. The NMB’s goal is to facilitate an agreement that is mutually acceptable for all parties.
Under the RLA, the NMB is obligated to use its “best efforts” to bring the parties to agreement. There is no timeline for the mediation process. While parties can request that the NMB release them from mediation, the board has no obligation to do so.
What are the key terms included in the pattern bargaining agreements reached so far?
Key highlights of these pattern agreements include:
What progress has been made on sick leave 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 paid sick days for employees who did not previously have them. Today, more than 97% 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.
Are wage increases included in the pattern agreements?
Yes. Class I railroad employees have long been among the highest-paid workers across U.S. industries.
The 2022 national agreements resulted in a historic 24% wage increase over five years (2020–2024). Today, most Class I rail employees earn between $90,000 to $140,000 in annual wages (depending on their craft), with an average annual wage of $111,000. Including the value of retirement, sickness and health care benefits, the average annual compensation is approximately $160,000.
Building on this foundation, the 2025 pattern agreements provide an additional 18.8% wage increase through 2029. Taken together with the 2022 agreements, these increases represent a nearly 50% compounded wage gain for covered employees between 2020 and 2029. Under the terms of the 2025 pattern agreements, average annual wages are projected to rise to about $135,000 by the end of 2029 – and the average value of total compensation packages would increase to about $190,000.
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.
