Railroads, three unions reach tentative labor agreements

The National Carriers’ Conference Committee (NCCC) announced yesterday that the freight railroads have reached tentative agreements with the Transportation Communications Union/IAM, Brotherhood of Railway Carmen and International Association of Machinists and Aerospace Workers.

Together, the three unions represent more than 15,000 rail employees. The NCCC is representing the nation's major freight railroads in the negotiations.

The tentative agreements call for implementing the Presidential Emergency Board's settlement recommendations. The pacts are the first to be reached since the PEB issued those recommendations on Aug. 16, National Railway Labor Conference (NRLC) officials said in a press release.

The tentative pacts include a 24% wage increase during the five-year period from 2020 through 2024 — with a 14.1% wage increase effective immediately — and five annual $1,000 lump-sum payments. A portion of the wage increases and lump-sum payments are retroactive and will be paid out promptly upon ratification of the agreements by the unions’ membership.

"It is critical for all stakeholders — including customers, employees and the public — that all parties promptly resolve the negotiations and prevent service disruptions. Accordingly, we look forward to additional discussions with the unions that have not yet reached tentative agreements and will continue seeking voluntary agreements based on the PEB’s recommendations," NRLC officials said.

Nine other unions have yet to reach an agreement with the railroads. Under the Railway Labor Act, the railroads and the unions remain in a 30-day “cooling-off” period. Voluntary settlements with all unions would avert any potential disruptions to rail service after the cooling-off period ends Sept. 16, said NRLC officials.

The dozen unions represent a combined 115,000 rail workers in the United States.