Bargaining Background

Successful Bargaining for Seven Decades

For more than seven decades, the freight railroads have conducted collective bargaining negotiations on a national, multi-employer basis with the labor organizations representing rail employees. National handling has been remarkably successful in reaching contract settlements without crippling labor strikes. In the past 35 years, there have been only six days of service disruptions due to disputes arising from national bargaining; the last one was in 1992.

Because railroads are vital to the national economy and security – accounting for 43% of intercity freight volume, more than any other mode of transportation – Congress has not been hesitant to intervene in the event of a dispute in order to ensure continuous service. However, most bargaining rounds are settled with voluntary agreements; in fact, a Presidential Emergency Board (PEB) has not been convened since 1996 (two rounds ago).

The current round of bargaining, involving almost all of the nation’s Class I railroads and 13 major unions representing more than 130,000 rail employees, began on January 1, 2010.

Key Issues

Health Care Costs

Health care costs are rising dramatically; without changes, by 2015 the railroads would have paid $3 billion for medical, dental, and vision benefits for employees and their families, tripling the railroad’s costs per employee since 1999. The new agreements will bring the health care plan closer to the mainstream, while continuing to provide excellent health care benefits at below-average cost to employees. Read more.

Key Issues

Economic Challenges

Railroads must continuously invest in rail infrastructure and service to meet customer demands. Unlike trucks, barges and airlines, freight railroads run almost exclusively over a network that they build and maintain. Rail labor and management must work together to manage labor costs to ensure that the railroads can continue to make critical investments vital to the industry’s future success. Read more.