CSX Reaches Tentative Agreements with IBEW, NCFO; Ratifies Deal with SMART-TD

Rhea-AI Summary

CSX (NASDAQ: CSX) has announced new five-year tentative collective bargaining agreements with the International Brotherhood of Electrical Workers (IBEW) and National Conference of Firemen & Oilers (NCFO). Additionally, CSX has ratified a labor agreement with the SMART-TD yardmasters.

These agreements, pending ratification by union members, were reached before the current agreements became amendable under the federal Railway Labor Act. CSX has now secured proactive agreements with 13 labor unions, covering 17 work groups, representing nearly 60 percent of its unionized workforce.

The agreements offer improved wages, health care, and paid time off benefits. CSX aims to continue partnering with other unions to reach similar agreements, focusing on enhancing workplace conditions and employee satisfaction.

Positive

• Secured new five-year tentative agreements with IBEW and NCFO
• Ratified labor agreement with SMART-TD yardmasters
• Proactive agreements reached with 13 labor unions, covering 60% of unionized workforce
• Agreements include improved wages, health care, and paid time off benefits

Negative

• None.

Insights

Labor Relations Expert

This news represents a positive development for CSX, showcasing the company's proactive approach to labor relations. Reaching tentative agreements with IBEW and NCFO, along with ratifying a deal with SMART-TD yardmasters, covers a significant portion of CSX's unionized workforce. These five-year agreements provide stability and predictability in labor costs and operations.

The proactive nature of these agreements, reached before the current contracts became amendable, demonstrates CSX's commitment to maintaining positive relationships with its workforce. This approach can help mitigate the risk of labor disruptions and associated operational impacts.

While the financial details aren't disclosed, the mention of "improved wages, health care and paid time off benefits" suggests increased labor costs. However, these investments in the workforce can lead to improved productivity, safety and service quality, potentially offsetting the higher expenses.

Investors should view this as a positive indicator of CSX's management effectiveness and labor stability, which are important factors in the railroad industry's operational efficiency and long-term profitability.

JACKSONVILLE, Fla., Oct. 22, 2024 (GLOBE NEWSWIRE) -- CSX (NASDAQ: CSX) today announced it has secured new five-year tentative collective bargaining agreements with the International Brotherhood of Electrical Workers (IBEW) and National Conference of Firemen & Oilers (NCFO), as well as the ratification of a labor agreement with the SMART-TD yardmasters.

“The new tentative agreements are a significant step forward in our continued partnership with union leaders,” said Joe Hinrichs, President and CEO of CSX. “These agreements strengthen our commitment to creating a workplace where every employee feels valued and empowered, while improving safety, efficiency, and service. Together, we are building a stronger foundation for our future success.”

The tentative agreements, which are pending ratification by the unions’ membership at CSX, were reached before the current collective agreements become amendable under the federal Railway Labor Act.

To date, CSX has reached proactive agreements with 13 labor unions, covering 17 different work groups, accounting for almost 60 percent of its unionized workforce. The terms of the agreements are aligned, providing equivalent packages of improved wages, health care, and paid time off benefits.

CSX remains committed to working with other unions and crafts to reach similar agreements over the coming days and continuing to partner with employees to make meaningful improvements in their work environment.

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 new labor agreements has CSX (NASDAQ: CSX) announced on October 22, 2024?

CSX announced new five-year tentative collective bargaining agreements with the International Brotherhood of Electrical Workers (IBEW) and National Conference of Firemen & Oilers (NCFO), as well as the ratification of a labor agreement with the SMART-TD yardmasters.

How many labor unions has CSX (NASDAQ: CSX) reached agreements with as of October 22, 2024?

CSX has reached proactive agreements with 13 labor unions, covering 17 different work groups, accounting for almost 60 percent of its unionized workforce.

What benefits are included in the new labor agreements announced by CSX (NASDAQ: CSX)?

The new agreements include improved wages, health care, and paid time off benefits for CSX employees.

When were the new labor agreements reached by CSX (NASDAQ: CSX) in relation to existing agreements?

The new tentative agreements were reached before the current collective agreements became amendable under the federal Railway Labor Act.