Today, the National Carriers Conference Committee (NCCC) and the Brotherhood of Maintenance of Way Employes Division (BMWED) of the Teamsters Rail Conference—the industry’s second-largest union—announced that they have reached a national tentative agreement. This is one of several pattern agreements reached in the first three months of the national bargaining round.

“We would like to thank the leaders of BMWED for their partnership in reaching this tentative agreement,” said Jeff Rodgers, chairman of the NRLC and the NCCC. “It’s a major step forward and a testament to the ongoing collaboration between the industry and its unions to address employee priorities and promptly resolve this bargaining round. This agreement rewards freight rail employees with increased wages, enhanced benefits and improved access to paid time off, and it gives freight railroads the certainty needed to continue driving America’s economy and supply chain.”

The BMWED tentative national agreement reflects terms consistent with the pattern established by more than 50 other national and local agreements, including ratified local agreements covering approximately 6,500 BMWED employees at both NS and CSX. The tentative national agreement is subject to member ratification by the nearly 8,000 BMWED-represented employees on the carriers where it applies.

The national bargaining round began with the exchange of Section 6 notices on Nov. 1, 2024. Early local agreements between several rail carriers and unions set the stage for this progress, establishing a clear pattern that addresses employee priorities while strengthening the freight rail industry’s ability to provide safe, reliable service.

The terms of these agreements provide:

Wage increases of 18.8% over five years. Based on current inflation projections, this will translate to real wage growth for covered railroaders with 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.

Building on the historic 24% wage increase from the previous 2022 bargaining round, the terms of the BMWED agreement represent the industry’s ongoing efforts to provide competitive compensation and benefits to employees. These agreements are projected to increase wages for covered employees by nearly 50% (compounded) between 2020 and 2029.

A list of carriers and unions participating in national handling can be found here. Carriers that reached an early local agreement covering a particular craft do not participate in national bargaining with respect to that craft. Additional information about the bargaining round is available at RailNegotiations.com.