When the National Carriers Conference Committee (NCCC) served Section 6 notices on Nov. 1 to officially open national collective bargaining for the freight rail industry, the round was already shaping up differently; early local agreements and proactive collaboration between rail carriers and unions have allowed for a positive starting point. Below, you’ll find more information on these proactive efforts, what they mean for freight rail employees and how they will shape the outlook for the national bargaining round.
Collaboration Has Produced Early Local Agreements
Since the last bargaining round concluded in 2022, NCCC member carriers have maintained open communication with union partners. This engagement led to more than 50 local agreements addressing paid sick leave and other work-life priorities. Today, more than 93% of craft employees at NCCC carriers have access to paid sick days, compared to 80% across the broader U.S. workforce. Some NCCC carriers have also entered local agreements with the operating craft unions to provide greater scheduling predictability for engineers and conductors.
Additionally, in the months leading up to the Nov. 1 amendable date, several Class I rail carriers and their union partners reached—and in many cases, ratified—local collective bargaining agreements to proactively resolve the 2025 bargaining round. Dozens of these local five-year agreements are now in place, with consistent terms covering thousands of freight rail employees across specific crafts at individual railroads and establishing a pattern for national bargaining.
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.
Pattern Agreements Provide a Framework for Resolution of the National Round
Pattern agreements pave the way for smoother and more efficient national negotiations. Carriers and unions that have ratified local agreements will not need to participate in the national bargaining round; importantly, for those carriers and unions without local agreements in place, the terms of the early agreements provide a framework for prompt resolution of the national bargaining round.
The terms of these pattern agreements offer significant benefits for freight rail employees, building on the strength of freight rail jobs as some of the best in industrial America. When considering the historic 24% wage increase from the 2022 bargaining round, wages for employees covered by these agreements will increase by nearly 50% (compounded) from 2020–2029.
Prompt resolution of the national round based on these pattern agreements is good for all parties— providing railroaders with clarity about their future compensation while ensuring rail carriers have the stability they need to continue delivering for their customers and the economy.
The NCCC Has Built on this Progress with Prompt National Bargaining Agreements
Building on the momentum established by the local pattern agreements, the NCCC already has announced tentative national agreements with several unions, and some of those agreements have already been ratified by union members. These agreements, consistent with local terms, reinforce the pattern and set a strong precedent for future national agreements with remaining unions.
Putting This Round into Context
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.
The Railway Labor Act (RLA) governs negotiations between railroads and unions. Given the essential role of freight rail in U.S. commerce, the RLA established a bargaining process designed to minimize disruptions and help prevent work stoppages by ensuring agreements don’t expire but remain in effect throughout negotiations.
Many will recall the last national bargaining round, which concluded in 2022, because it nearly exhausted the RLA’s procedures and took the industry to the brink of a strike. This scenario was an exception to traditional freight rail bargaining, not the rule. In fact, there has not been a single strike or lockout resulting from an impasse in national bargaining since 1992.
Looking Ahead
The NCCC’s goal in this round is clear: finalize timely, voluntary agreements that build on the freight rail 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.
Class I railroads and their union counterparts continue to make significant progress on behalf of freight rail employees. While each agreement follows its own ratification timeline, both railroads and many employees and unions share a desire to reach prompt agreements. With a strong foundation already set through early collaboration and a clear pattern for compensation and benefits, this year’s bargaining round promises a new chapter in freight rail labor relations.
Stay tuned for updates as negotiations progress and the freight rail industry continues to build on this momentum.
