On July 1, thousands of freight rail employees across the country will see their paychecks continue to grow as the first of the new wage increases negotiated in the 2025 national bargaining round take effect.
These July 1 pay raises apply to employees covered by the dozens of national and local agreements that follow the 2025 round pattern. That includes nearly half of all union-represented employees at freight railroads participating in national handling, as well as additional employees covered by local agreements that follow the same pattern. These increases underscore the fact that freight railroads continue to provide some of the best industrial careers in America.
Under the pattern agreement established early in the 2025 round, employees will receive an 18.8% general wage increase over five years on top of the historic 24% increase delivered in the 2022 bargaining round. Together, these increases provide covered employees with nearly 50% compounded wage growth from 2020 to 2029.
Leading on Compensation
Freight rail employees currently earn an average of $111,000 in annual wages, with total compensation averaging approximately $160,000.
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.
Because of the structured bargaining process under the Railway Labor Act, rail employees have experienced some of the most consistent wage gains in industrial America. Between 2005 and 2029, rail wages are on track to grow by approximately 130%, outpacing both private sector wage growth (104%) and inflation (87%) over the same period.
Pattern Agreements Continue to Strengthen Rail Jobs
With dozens of local and national agreements reached and ratified this round, the industry is delivering results for employees now, not years from now. In addition to the July 1 wage increases (and additional wage increases on July 1 of each of the next several years), members covered by ratified agreements will also enjoy enhanced health and welfare benefits.
Several unions have praised the collaborative nature of this round, noting how the early pattern agreements provide significant benefit to the union members they represent. Union leaders emphasized the importance of resolving negotiations in a timely manner without requiring their members to wait years to see progress.
Building Momentum, Together
The July wage increases are part of a broader wave of progress.
With the framework in place and agreements already providing benefits for thousands of employees, the opportunity remains open to secure prompt agreements – and prompt benefits – for members of the unions that haven’t yet reached a collective bargaining agreement in the 2025 round.
