The National Carriers Conference Committee (NCCC) today announced that members of the International Association of Sheet Metal, Air, Rail and Transportation Workers’ Mechanical and Engineering Department (SMART-MD) have voted to ratify a national collective bargaining agreement. The ratified contract, which covers SMART-MD-represented freight rail employees through Dec. 31, 2029, is the fifth national agreement ratified after NCFO, TCU, BRC and ATDA members approved their contracts in recent weeks.

“With these ratified agreements, railroads and unions are delivering real value for employees through increased pay, enhanced health care benefits and earlier access to paid time off,” said Jeff Rodgers, chairman of the NRLC and the NCCC. “We’re grateful for SMART-MD’s collaboration in achieving this important milestone, which positions the industry to meet future challenges with a strong, supported workforce.”

The SMART-MD contract follows the pattern established by the more than 50 agreements reached at both the local and national levels. The terms provide:

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

Continued Progress in the National Bargaining Round

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 prioritizes employee needs while strengthening the freight rail industry’s ability to provide safe, reliable service.

Building on the historic 24% wage increase from the 2022 bargaining round, the SMART-MD contract represents part of a broader effort to provide competitive compensation and benefits to employees. Together, these contracts 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.