CSX Announces Tentative Labor Agreement with Locomotive Engineers

Rhea-AI Summary

CSX Corporation (NASDAQ: CSX) has reached a tentative five-year agreement with the Brotherhood of Locomotive Engineers and Trainmen (BLET), covering approximately 3,400 locomotive engineers. This marks the first agreement between a Class I freight railroad and BLET, representing about 20% of CSX's frontline workforce.

The agreement includes competitive pay, improved healthcare benefits, and work rule changes for more predictable assignments. It aligns with the wage increases and health benefits from CSX's agreements with 13 other unions. If ratified, nearly 75% of CSX's unionized workers will be covered by new agreements made in the last nine months. Currently, CSX has ratified agreements covering 54% of its unionized workforce, with only trainmen/conductors represented by SMART-TD remaining as the major workgroup without a new agreement.

Positive

• First Class I freight railroad to reach agreement with BLET, showing leadership in labor relations
• Agreement covers 3,400 locomotive engineers (20% of frontline workforce)
• Includes competitive pay increases and improved healthcare benefits
• Work rule changes promote predictable assignments and quality-of-life improvements
• If ratified, 75% of unionized workforce will be covered by new agreements

Negative

• Still pending ratification by union members
• Remaining negotiations needed with SMART-TD for trainmen/conductors
• Potential increased operational costs due to new compensation and benefits package

JACKSONVILLE, Fla., May 09, 2025 (GLOBE NEWSWIRE) -- CSX Corporation (NASDAQ: CSX) today announced it has reached a tentative agreement with the Brotherhood of Locomotive Engineers and Trainmen (BLET) on a new five-year single-system agreement covering approximately 3,400 locomotive engineers.

This is the first agreement reached by a Class I freight railroad with BLET, and it continues CSX’s industry-leading transformational approach to collective bargaining in the rail industry.

“I want to thank the leaders at BLET, especially our CSX General Chairmen, for their hard work and professionalism in representing CSX employees and their union members,” said Joe Hinrichs, President and CEO of CSX. “The tentative agreement, reached after months of negotiations, offers competitive pay, improved health care for locomotive engineers, and work rule changes that promote predictable assignments and additional quality-of-life enhancements.”

The agreement mirrors the general wage increases, and health and welfare improvements from CSX's agreements with 13 other unions.

Locomotive engineers make up approximately 20 percent of CSX’s frontline workforce. If ratified, nearly 75 percent of CSX unionized workers will be covered by new agreements reached within the last nine months. To date, CSX has ratified agreements covering 54 percent of its unionized workforce.

The only remaining major workgroup at CSX not covered by new agreements or a tentative agreement are trainmen/conductors represented by SMART-TD. CSX is currently engaged in bargaining with SMART-TD to consolidate separate territories, workforces, and execute a single-system collective agreement.

About CSX
CSX, based in Jacksonville, Florida, is a premier transportation company. It provides rail, intermodal and rail-to-truck transload services and solutions to customers across a broad array of markets, including energy, industrial, construction, agricultural and consumer products. For nearly 200 years, CSX has played a critical role in the nation’s economic expansion and industrial development. Its network connects every major metropolitan area in the eastern United States, where nearly two-thirds of the nation’s population resides. It also links more than 240 short-line railroads and more than 70 ocean, river and lake ports with major population centers and farming towns alike. More information about CSX Corporation and its subsidiaries is available at www.csx.com. Like us on Facebook (http://facebook.com/OfficialCSX) and follow us on X, formerly known as Twitter (http://twitter.com/CSX).

Contact:
Matthew Korn, CFA, Investor Relations
904-366-4515

Bryan Tucker, Corporate Communications
855-955-6397

FAQ

What are the key terms of CSX's 2025 agreement with locomotive engineers?

The agreement includes competitive pay increases, improved healthcare benefits, and work rule changes for more predictable assignments. It covers approximately 3,400 locomotive engineers and mirrors wage increases and health benefits from agreements with 13 other unions.

How many CSX employees are covered by the BLET agreement?

The agreement covers approximately 3,400 locomotive engineers, representing about 20% of CSX's frontline workforce.

What percentage of CSX's workforce will be under new agreements after this deal?

If ratified, nearly 75% of CSX's unionized workers will be covered by new agreements reached within the last nine months. Currently, 54% of the unionized workforce is covered by ratified agreements.

Which major workgroup at CSX still needs a new agreement?

The only remaining major workgroup without a new agreement are trainmen/conductors represented by SMART-TD. CSX is currently in negotiations with them.

How long is the new CSX-BLET labor agreement for?

The tentative agreement with BLET is a five-year single-system agreement.