Arlington, Va. (March 31, 2025) – The National Carriers Conference Committee (NCCC) today announced it has reached a national tentative agreement with the International Association of Machinists and Aerospace Workers (IAM). The agreement, subject to member ratification, continues the steady pace of progress that has defined this bargaining round.
“This round continues to move forward at a historic pace, and this agreement with IAM is part of that momentum—providing employees with wage increases, enhanced health benefits and more access to paid time off,” said Jeff Rodgers, chairman of the NRLC and the NCCC. “Working together with IAM’s leadership, we are delivering real improvements for their members.”
The tentative agreement with IAM is consistent with the terms of the dozens of local and national contracts ratified as part of the 2025 bargaining round.
The terms of these pattern agreements 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.
- 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.
Unprecedented Progress in the National Bargaining Round
The national tentative agreement with IAM follows a wave of recent agreements and ratifications. Seven national contracts have been ratified—with ATDA, NCFO, TCU, BRC, SMART-MD, BMWED and IBEW—and a tentative agreement with IBB is pending ratification.
The 2025 bargaining round has seen robust collaboration between freight rail carriers and unions—setting a clear pattern for agreements that deliver on employee priorities and support long-term industry stability. The 18.8% wage increases in these pattern agreements build on the historic 24% wage increase from the 2022 bargaining round, which, taken together, are projected to increase wages for covered employees by nearly 50% (compounded) between 2020 and 2029.
Additional information about the bargaining round is available at RailNegotiations.com.
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.
