For more than nine decades, the freight railroads have conducted collective bargaining negotiations on a national, multi-employer basis. National bargaining has been remarkably successful in reaching contract settlements without crippling labor strikes. In fact, over the past 30 years, there have been only two days of service disruptions arising from national rail bargaining; the last one was in 1992. National bargaining has also resulted in an overall pay and benefits package for rail employees that is among the very best of all industrial jobs in the United States.
As of 2018, when examining all U.S. rail transportation employees, including freight railroad employees, they ranked above 94 percent of employees in other industries in average annual compensation at $133,000 per year. The subset of freight rail unionized employees covered in the new round of bargaining has average annual compensation of $122,000 per year, including wages, health care and employer retirement contributions.
The National Railroad Health Plan continues to be considered a platinum-level plan under the Affordable Care Act regulations. Rail labor contracts also continue to maintain many outdated work rules and practices that have been unchanged for decades. These anachronistic provisions fail to account for modern technology and impede rather than support the timely delivery of freight.
Because freight railroads are vital to the national economy and security – accounting for more intercity freight volume than any other mode of transportation – Congress has not been hesitant to intervene in bargaining disputes in order to ensure continuous service. However, most bargaining rounds are settled with voluntary agreements.
The most recently concluded bargaining round began in 2014 and concluded in 2018. More than 30 railroads and 12 major rail unions reached settlements through negotiations under the Railway Labor Act.