Freight railroads reaffirm support for negotiated contracts, thank leaders for continued work

Rail labor unions continue to ratify historic contracts negotiated by rail labor leaders and management. The process included the direct involvement of the Biden administration, which has remained steadfast in supporting the deals and ensuring that the nation avoids any work stoppages that would snarl supply chains and exacerbate inflation.

As leaders in the rail industry continue to speak with employees and demonstrate the value of these deals – which address quality-of-life issues, include historic pay raises and maintain premium health care plans – the rail industry is reiterating its support for their employees and the agreements based on the Presidential Emergency Board’s (PEB) recommendations.

“Rarely in modern history has the U.S. freight rail industry been such a focus of national attention,” said AAR President and CEO Ian Jefferies. “Thankfully, there are some foundational truths that observers should note, namely that railroad jobs are among the most critical in the country – and are justly compensated accordingly. Ratification of new contracts molded by the Biden administration and endorsed by labor leaders at the bargaining table will only improve the quality and benefits of railroading.”

With half of the labor unions ratifying deals, the industry is reiterating key elements of the agreements, including but not limited to:

• The new contracts provide rail employees a 24 percent wage increase during the five-year period from 2020 through 2024, including an immediate payout on average of $11,000 upon ratification. They also include $5,000 in performance bonuses. Total average annual pay will reach $110,000.
• Employees would maintain some of the best healthcare plans in the nation.
• Employees would receive an additional paid personal leave day per year.
• Employees will continue to have multiple options for time off and, for those employees who operate trains, the agreements include enhanced abilities to schedule time off and local agreements to be finalized after ratification of the national agreement will further enhance quality of life and the predictability of schedules.

With the increased attention on collective bargaining in this highly complex industry, Jefferies emphasizes there is room for misconceptions to flourish and create confusion. Critically, railroads are encouraged that the White House-appointed arbitrators addressed issues surrounding time off, and that the industry maintains generous leave programs that allow employees to receive sickness benefits that begin after as few as four days of absence and can last up to 52 weeks.

“We understand the concerns expressed by employees regarding leave policies and schedules,” added Jefferies. “That is why, in addition to agreeing to the historic salary and benefit package recommended by the PEB, we worked hard at the negotiating table with conductors and engineers to address those issues. Importantly, additional provisions in the agreements enable us to work with employees to create greater scheduling predictability and improve quality of life for rail workers.”

“These agreements are ultimately a compromise, resulting largely from a framework recommended by independent experts, and firmly supported by the Biden administration,” Jefferies concluded. “The negotiating parties deserve credit for their ability to deliver results for their members and constituents. No contract is going to give a single side all it seeks, but with agreements based on the PEB recommendations, implementation of the new contracts has begun in earnest with those unions who have ratified. We look forward to following suit with those still out for ratification right now.”