Norfolk Southern reaches early pay deal with four unions

US railroad Norfolk Southern (NS) has reached a tentative agreement with four major rail unions on pay and benefit packages for its workers in a rare early deal on the issue. 

The railroad said the proposed five-year deal, which was made in partnership with BNSF Railway for three of the unions, would see a 3.5% average wage increase per year for workers if ratified. 

NS CEO Alan Shaw said: “Our craft railroaders are the heart and soul of Norfolk Southern, and we are committed to supporting our colleagues who power our network every day.

“I want to thank the labor leaders who share our commitment to our craft colleagues and helped us reach this deal early, ensuring peace of mind with clear knowledge about upcoming pay, healthcare and vacation improvements.” 

The NS and BNSF deal, made four months before the next scheduled collective bargaining round, has been reached with the Brotherhood of Railway Carmen Division/TCU, the International Association of Sheet Metal, Air, Rail and Transportation Workers – Mechanical Department (SMART-MD), and the Transportation Communications Union/IAM. 

NS has also reached a similar deal on its own with multiple General Committees of the SMART union’s Transportation Division, with the collective agreements covering 30% of its union workforce, while BNSF’s deal will cover 15% of its union workforce. 

SMART-TD National President Jeremy Ferguson said: “Our members told us they wanted to be recognized for the value of their contributions without going through another long and protracted bargaining round. 

“With these tentative agreements, together we have honored that request, removing the delay and rewarding Norfolk Southern employees with the pay and benefits they deserve.”

The agreements come amid a period of widespread uncertainty in the North American rail sector with Candian rail workers recently forced to end their industrial action after government intervention, despite not yet signing a deal with the country’s rail operators. 

Port workers on the US east coast are also threatening to strike in September if a deal is not met with their unions, possibly affecting the rail freight industry which transports much of the countries imported cargo.