Collaboration between freight railroads and labor organizations at the bargaining table continues to drive significant results for employees and enables the industry to keep powering our economy. Here’s a look at recent milestones reached during this bargaining round.
So far, Class I railroads and unions have reached more than 50 national and local agreements to resolve the 2025 bargaining round.
Since the national bargaining round opened with the exchange of Section 6 notices in November 2024, seven national agreements—with ATDA, NCFO, TCU, BRC, SMART-MD, BMWED and IBEW—have already been reached and ratified by union members. Two additional unions, IAM and IBB, have also reached tentative national agreements with the NCCC that remain subject to member ratification.
All of these national agreements build on the substantial progress made between carriers and unions to proactively address employee priorities at the local level.
The Pattern Prevails
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 in the industry’s labor relations.
In this round, dozens of national and local agreements with consistent terms establish a clear pattern. The terms of the pattern provide a clear path for resolution of the national bargaining round by all remaining participants.
The pattern agreement terms, which extend through 2029, include:
- An 18.8% general wage increase over five years, which is expected to significantly outpace inflation projections.
- Enhanced health and welfare benefits with no increase in the employee contribution rate. In fact, employee premiums decreased to $277/month in 2025, significantly below the national average of over $500/month for employer-provided family coverage.
- Improved access to paid vacation earlier in employees’ careers.
A Win for Workers and Railroads Alike
These agreements are good for the railroads and the people who keep them moving.
Some unions leaders have praised this early progress—with one lauding that “our members’ voices have been heard,” and another noting, “it is one of the best negotiated agreements in my career and will provide meaningful improvements to the members, in record time.”
The terms of the pattern agreements build upon the historic 24% wage increases from the 2022 bargaining round. Taken together, employees covered by these agreements will see their wages grow by nearly 50% (compounded) from 2020-2029.
Prompt resolution of the remaining open agreements will ensure that all railroaders receive wage increases quickly and provide carriers with the certainty needed to plan for the future—benefitting employees and the industry alike.
Outpacing other industries
The rail industry’s story is one of consistent, long-term wage growth and great health and welfare and retirement benefits.
While many industries are just now addressing the impact of COVID-era inflation in their wage agreements, railroads tackled this challenge in the previous bargaining round, preventing the decline in real wages that workers in many other industries experienced during this period. The current pattern ensures this momentum continues, with wage increases that consistently outpace inflation and private-sector growth while maintaining premier health and welfare benefits.
Consider estimated wage increases from 2005-2029; during this period, rail general wage increases under these agreements are projected to increase by approximately 130%, significantly outpacing projected inflation (86%) and private sector wage growth (98%).
* All crafts except SMART-TD 129.5%; SMART-TD 126%
Looking Ahead
The early momentum of this bargaining round reflects the carriers’ broader commitment to building on the industry’s strengths: providing safe, high-paying jobs with professional growth opportunities, maintaining affordable and reliable customer service, and continuing to invest in infrastructure and innovation.
With this momentum, the NCCC remains committed to resolving the remaining agreements for participating carriers and providing freight rail employees covered by national bargaining with the substantial benefits based on the established pattern’s terms.
