The five-year BMWED agreement, covering the period from Jan. 1, 2025, to July 1, 2029, NCCC says, follows the framework established by the dozens of agreements to resolve the 2025 bargaining round that have been reached at both the national and local levels.
The terms of these pattern agreements provide:
- Wage increases of 18.8% over five years. Based on current inflation projections, this, NCCC says, “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. Starting this year, health care premiums are decreasing 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.
“This ratification marks a significant moment in this bargaining round, demonstrating once again that collaboration by railroads and unions delivers real results for employees. Thousands of railroaders will soon benefit from the higher pay, enhanced benefits and stability that this agreement provides,” said Jeff Rodgers, chairman of the National Railway Labor Conference (NRLC) and NCCC. “We appreciate the engagement from BMWED and its members that led to this agreement.”
The biggest rail carrier bargaining with the NCCC was BNSF. BMWED members on that property ratified the agreement, the vote tally as follows:
- Accept: 2,112 (75.38%)
- Reject: 689 (24.62%)
- Blank: 32
BMWED members on the smaller properties, including the Belt Railway of Chicago; Bessemer and Lake Erie; Grand Trunk Western Railway; Illinois Central; Wisconsin Central; Central California Traction Company; Conrail; Indiana Harbor Belt; Los Angeles Junction; Portland Terminal; Wichita Terminal Association; Port Terminal Railroad Association; and New Orleans Public Belt, ratified their agreement by a roughly 74% to 26% margin, according to the union.
Some BMWED members were voting on Health and Welfare benefits only, the largest of those being Canadian Pacific Kansas City (CPKC). Those margins were roughly in the 75% to 80% in favor of ratification.
This agreement, the union says, “marks a significant departure from the historical pattern of BMWED members working for extended periods without contractual wage increases and being locked into previous agreements, for years at a time. By securing contractual wage adjustments through 2029, BMWED members can now count on predictable and sustained financial growth without delay or potential work stoppages.”
According to BMWED, it is important to note that two Class I carriers have some caveats. Union Pacific (UP), the union says, “is not party to the NCCC, so the BMWED remains fully engaged in bargaining with UP and no agreement has yet been reached. CPKC is party to the NCCC for healthcare, but not wages and work rules, so bargaining over the wages and rules remains active.”
BMWED is the largest rail union to date to ratify a national agreement to resolve the 2025 bargaining round. It is the sixth national agreement ratified, following contracts approved in recent months by employees by SMART-MD, IBEW, NCFO, ATDA, TCU, and BRC. An additional national agreement with IBEW remains subject to ratification.
Background
The national bargaining round began with the exchange of Section 6 notices on Nov. 1, 2024. “Early local agreements set the stage for this momentum, establishing a clear pattern that prioritizes employee needs while strengthening the freight rail industry’s ability to provide safe, reliable service,” according to NRLC.
“These agreements build on the historic 24% wage increase from the 2022 bargaining round, which taken together are projected to increase wages for covered employees by nearly 50% (compounded) between 2020 and 2029.”
The post NCCC, BMWED Vote to Ratify National Agreement appeared first on Railway Age.